Tourism as a System PDF

Tourism as a System Tourism as a System – every part of tourism is related to every other part. − No owner or manager has complete control of his own destiny. − But the more each one learns about the others, the more successful he can be in his own enterprise no matter whether it is run b...

Tourism as a System Tourism as a System – every part of tourism is related to every other part. − No owner or manager has complete control of his own destiny. − But the more each one learns about the others, the more successful he can be in his own enterprise no matter whether it is run by commercial business, non-profit organization, or government. − Tourism cannot be planned without understanding the interrelationships among the several parts of the supply side, especially as they relate to market demand. 2 Main Drivers of Tourism Supply Side – in order to satisfy the market demand, a nation, region, or community must be able to provide a variety of development and services. − How well this supply side matches the market is the key to reaching the ultimate in correct tourism development. − All government agencies related to tourism have the obligation of making sure their individual policies and practices provide the opportunity for linking travel market preferences with supply development. 1. Demand Side of Tourism – as any manufacturer knows, the best product to manufacture is one that is appealing or preferred by the market. This is equally true with tourism. Major Factors of the Demand Side of Tourism 1. A tourist (for business or pleasure) must be motivated to travel. 2. Financial ability to pay for services and facilities. 3. Time and physical ability to travel. 4. Forecasting of travel demand. Market Segmentation – the subdividing of a market into homogenous subsets of customers, where any subset may conceivably be selected as a target market. − 3 Basic Conditions Which Should be Met for Segmentation: 1. There must be great enough numbers in each segment to warrant special attention. 2. There must be sufficient similarity of characteristics within each group to give them distinction. 3. The subsets must be viable – worthy of attention. DGPB 4 Segments of Tourism Markets 1. Demographic Segmenting – refers to measurable personal characteristics, such as age, income, occupation, family size/life cycle and educational level. − Marketers seek to determine how these variables influence travel and the development of facilities and services. − Each situation requires a mix of these factors to determine their significance. 2. Geographic Segmenting – is used to determine differences and similarities in travel preference due to traveler location. − Location factors are important for decisions on air routes, attraction development within given travel distances, and decisions on destination development due to weather conditions. 3. Psychographic Segmenting – is a more recent method of grouping travel markets according to their values, attitudes, lifestyles, interest, activities, and personalities. − Such grouping can help both marketers and developers direct their programs and projects to meet the interests of these groups. 4. Behavioristic Segmenting – divides the travel market into groups that have similar buying habits, including travel habits and preferences, purpose of travel, and benefit sought. − By making this grouping, those who promote as well as those who plan and develop tourism can focus their efforts more precisely. − Planners and developers (public and private) must have current information on travel market characteristics in order to understand why, where, and what development is most appropriate. 2. Supply Side of Tourism – “Supply Side” – is all the objects and services that are provided to meet demand. − It includes all those programs and land uses that are designed and managed to provide for receiving visitors. 5 Major Components of the Supply Side of Tourism 1. Attractions – constitute the most powerful component of the supply side of tourism, they make up the energizing power unit of the tourism system. 2 Major Functions: ASTIP 1. They entice, lure, and stimulate interest in travel. 2. Provides visitor satisfactions, the rewards from travel – the true travel “product.” Scope: − Attractions are those developed locations that are planned and managed for visitor interest, activity, and enjoyment. Planning Considerations: − Attractions are created and managed. − Attractions gain by being clustered. − Linkage between attractions and services is important. − Attraction locations are both rural and urban. 2. Services – Scope: − This category is most frequently called the “Hospitality Service Industry.” − Accommodations, food service, travel agencies, and other travel businesses. Planning Considerations: − Location and service influenced two markets – Travelers and Local Residents. − A balanced economic base is more stable. − Tourist businesses depend on urban infrastructure. − Businesses gain from clustering. − Fragile environments should be avoided. − Services depend on attractions. − Entrepreneurship is critical to tourism planning. 3. Transportation – Scope: − Provides the critical linkage between market source and destination. − Transportation between cities and attractions within urban areas and within attraction complexes. − Travel modes for people-movement throughout the circuit utilizing air, water, land – automobile, taxi, horse carriage (in historic districts). − Roads, highways, bridges, airports, seaports, railways are vital to transportation system. Planning Considerations: − Transportation sector must include tourism in its plans. − Intermodal travel requires new planning cooperation. − Transportation is more than engineering. − Highways require greater sensitivity to the environment. − Pedestrianism. 4. Information – Scope: − Information is to describe (the destination), like maps, guidebooks, videos, magazine articles, tour guide narratives, brochures, internet, and traveler anecdotes, road signs, and geographic positioning systems (GPS) – these can assist the traveler in finding his way and understanding what he is seeing and doing. − The Visitor Center is one form of traveler information linkage. Planning Considerations: − Information segmentation is needed. − Information systems are not promotion. − Visitor centers are essential. − A national guidance system is ideal. − Local hospitality training is needed. 5. Promotion Scope: − Intended to attract people to visit the destination. − Promotion for tourism usually encompasses four activities: Advertising (paid) Publicity (unpaid) Public Relations and Incentives (gifts, discounts) APPIP Print and Online Promotion. Planning Considerations: − Tourism promotion is a major policy and program activity. − Proliferation of online promotions – social media. − Promotion is costly. − Some promotional signs (billboards and signs along the highway intersections) have questionable value.