Tou 069 - Destination Management and Marketing P1 PDF
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PHINMA University of Iloilo
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This document contains information on destination management and marketing from a tourism course. It discusses the role of pricing function, DMO responsibilities, and stakeholders' influences on tourism planning.
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TOU 069 - DESTINATION MANAGEMENT AND 1. Ensures the sustainable balance of tourism development while MARKETING P1 meeting visitors' needs....
TOU 069 - DESTINATION MANAGEMENT AND 1. Ensures the sustainable balance of tourism development while MARKETING P1 meeting visitors' needs. 2. Provides quality tourism and hospitality experiences, benefiting local residents. MODULE 1: 3. Enhances the competitiveness and appeal of destinations. DESTINATION MANAGEMENT The role of pricing function: Involves coordinated and integrated management of the destination DMOs manage the pricing of services and facilities offered in the product (attractions and services, facilities, transportation, and destination, balancing between fair revenue generation and visitor other critical components of the destination). satisfaction. Includes tourism planning and continual monitoring and evaluation DMOs responsibilities include: of the outcomes. 1. Serving the requirements of many organizations: Balancing Accomplished through specialized organizations known as DMOs tourism businesses, government agencies, and local community (Destination Management Organizations). interests while being fair to all stakeholders. Destination management organizations (DMOs) are teams of tourism 2. Building consensus among stakeholders: Encouraging professionals initiated and coordinated by all tourism stakeholders to collaboration for the DMO’s vision, strategies, and goals. achieve the destination’s vision and goals for tourism. 3. Being sensitive to local residents’ interests: Involving locals in Destination management roles: tourism and avoiding developments that harm community values. 1. Leadership and coordination: Setting the agenda for tourism and 4. Demonstrating economic benefits: Generating visitor spending coordinating all stakeholders' efforts toward achieving that agenda. and employment while being accountable for fund utilization. 2. Partnership and team building: Fostering cooperation among government agencies and within the private sector and building partnership teams to reach specific goals. MODULE 2: Tourists and tourism-sector organizations have a direct interest 3. Community and stakeholder relationships and involvement: in destination management; they are directly affected by the tourism Involving stakeholders and local community leaders in tourism and situation in the destination. monitoring resident attitudes toward tourism. The other three groups are more indirectly affected by tourism in 4. Visitor management: Managing visitor flows, impacts, and the destination, although some of these groups and individuals are behaviors to protect resources and enhance visitor satisfaction. more involved with tourism than others. 5. Planning and research: Conducting planning and research to Stakeholders: Those with a direct or indirect interest in the management of attain destination goals. a destination for tourism. 6. Product development: Developing physical products and services What is destination governance? to enhance the destination. Beritelli et al. (2007) defined destination governance as: 7. Marketing and promotion: Selecting appropriate markets and Setting and developing rules and mechanisms for a policy, as well promoting the destination. as business strategies, by involving all the institutions and What is destination marketing? individuals. A continuous process where a DMO plans, researches, It concerns the policies, systems, and processes used to ensure implements, controls, and evaluates programs aimed at satisfying that all stakeholders are involved. travelers’ needs and the destination’s goals. The strengths of government or the public sector in operating DMOs: DMO marketing depends on collaboration with organizations and Governments have a mandate to do long-term, strategic planning. individuals. Governments often provide grants and support for small- and Difference between destination management and marketing: medium-sized enterprises (SMEs). Destination management is a broader and more inclusive concept, Public agencies may have greater powers in operating quality encompassing marketing and other activities to manage tourism in assurance programs. a destination. The strengths of the private sector: Benefits of following a professional destination management Skilled and experienced in short-term tactics, marketing, and sales. approach: Aware of market opportunities. Good at customer relationship management (CRM). Regional Argument against the private sector: May not prioritize community needs State or provincial or the environment and is less likely to receive financial support from Local governments. Other agencies The 10 As of Successful Destinations Stakeholders: Those with a direct or indirect interest in the management of According to Morrison, 2019, the 10 As include: a destination for tourism. 1. Awareness: Tourists’ knowledge about the destination. MODULE 3: 2. Attractiveness: Appeal and geographic scope of attractions. Influences on Tourism Planning 3. Availability: Ease of making bookings and reservations. 1. These earliest tourism plans were done by government agencies 4. Access: Convenience of getting to and moving within the and repeated by professionals as background physical planning destination. for regions and urban areas rather than tourism planning in these 5. Appearance: Impression the destination leaves on tourists. areas, always commenced with an analysis of tourism supply and 6. Activities: Variety of experiences offered to tourists. not the demand from visitors. 7. Assurance: Safety and security. 2. The next influence on tourism planning was from tourism 8. Appreciation: Hospitality and levels of welcome. academics and professional experts. These people were only 9. Action: Development of tourism and marketing plans. engaged when tourism planning was still very much about 10. Accountability: Performance evaluation by the DMO. influencing greater emphasis on tourism policy and on visitor This figure shows the five main groups of stakeholders in destination activities and flows; however, the priority remained focused on the management. physical resources of destinations. Tourists 3. Management professionals Leisure / Pleasure Greatly influenced tourism planning, drawing from corporate Business strategic management and strategic planning. Visiting friends and relatives Prioritized researching, analyzing, and projecting external Other environments through environmental scanning, bringing a corporate Tourism-sector Organizations mindset to tourism planning. DMOs 4. Marketing, public relations, and sales professionals Hospitality Focused more on market and competitive analysis than just Attractions analyzing physical resources. Transport Emphasized destination marketing and branding. Travel trade 5. Community planners and non-profit organizations Media Focused on planning processes and involving all parts of the Employee organizations community in discussions and definitions. Community 6. Consumers Community organizations Influenced tourism planning through demands for transparency and Resident associations input. Business associations Social media brought attention to tourism planning processes. Special panels or task forces 7. Destination management concept Others Tourism planning was influenced by the adoption of the destination Environment management concept globally. NGOs Benefits of Strategic Planning for Tourism Conservation societies Clear future directions: Establishes long-term goals for tourism. Environmental agencies Greater attention and emphasis for tourism: Focuses on Others conducting long-term planning. Government Vision and goals for tourism: Sets targets within specific National timeframes. Identification of opportunities: Recognizes strategies to improve Specialized Forms of Destination Planning tourism. 1. Sustainable tourism development plans: Focused on ecological, Shared plan ownership: Encourages stakeholder involvement. cultural, and social sustainability. Implementation and evaluation guidelines: Provides steps to 2. Spatial master plans: Physically oriented plans, often referred to assess and implement plans. as “tourism zoning.” MODULE 4: Workforce Development Plans or Strategies Outcomes of Tourism Planning These plans focus on tourism personnel to ensure sufficient supply The DMO and its stakeholders must define the intended outcomes of and quality in the future to meet the destination's needs. tourism planning. Morrison et al. (2018) suggests that tourism planning The contents include: should have at least five outcomes: ○ Tourism workforce needs and availability 1. Identifying alternative approaches: Pinpointing different options ○ Attitudes towards careers in tourism for tourism. ○ Recruitment and motivation strategies 2. Creating the desirable: Steps that enhance tourism benefits. ○ Training and education requirements 3. Avoiding the undesirable: Anticipating and addressing negative ○ Other relevant topics tourism impacts. MODULE 6: 4. Maintaining uniqueness: Highlighting and preserving the DESTINATION MARKETING PRINCIPLES destination’s unique features. ▪ Marketing concept and customer orientation - based on the continuing 5. Adapting to the unexpected: Designing contingency plans for satisfaction of the customer’s needs and wants; include stakeholders, such unforeseen circumstances. as tourism industry members, government officials and community residents. Tourism Planning at Multiple Levels in a Country 1. National level: Coordinated by the country’s national DMO. ▪ Destination life cycle - every product in time goes through the four stages 2. Sub-national level: Includes plans for states, provinces, territories, of introduction, growth, maturity and decline converted into a destination life and regions. cycle concept (TALC) with seven stages, consisting of exploration, 3. Local level: Covers specific areas like rural communities, resorts, involvement, development, consolidation, stagnation, decline and or districts within cities. rejuvenation. Elements of the Tourism Planning Process 1. Policy: Sets guidelines and goals for destinations. ▪ Market segmentation - the DMO needs to decide how it will divide 2. Principals: Individuals or groups managing the long-term planning pleasure and business tourists into groups (market segmentation analysis) process. and select target markets among these available groups. 3. Participants: Stakeholders from tourism sectors, community, government, environment, and tourists. ▪ Marketing mix - tools to use in appealing to customer which are product, 4. Process: Central part of planning that considers all tasks to price, place and promotion. Morrison (2010) adds four additional Ps achieve tourism goals. (packaging, programming, partnership and people) to address the unique 5. The Plan: Outlines specific strategies to be implemented. aspects of marketing tourism and hospitality services. Types of Long-Term Planning Processes and Techniques 1. Step-by-step planning: Sequential processes for specific Hierarchy of Marketing Goals and Objectives objectives. 2. Meet-analyze-report-approve: Government-led planning with ▪ Destination Vision approval at various stages. - presents a concise, desired word picture of the destination at some point in 3. Strategic management and planning: Focus on vision, SWOT the future. It is a verbal image of the destination that local people aspire for it analysis, and core values. to become. 4. Balanced scorecard: Emphasizes long-term goals and - provides a clear focus on what the destination will strive to be, sets the measurable performance. overall direction for the tourism marketing and development of the 5. Scenario planning: Imagining future scenarios to guide tourism destination in the upcoming years development. ▪ DMO Vision - the DMO to define its vision for the future that will set it on 3. Place the right course to achieving the destination vision in cooperation with its 4. Promotion internal and external stakeholders. 5. Packaging 6. Programming ▪ Destination Marketing Goals - stepping stones on the DMO’s path to 7. Partnership realizing the destination and DMO visions. They are longer-term (three to 8. People five years) measurable results that the DMO wants to achieve for its MARKETING PLAN DEVELOPMENT destination marketing. A marketing plan is a written document that describes the activities and programs that the DMO will use to accomplish its marketing objectives. ▪ Destination Marketing Objectives - short-term, target market, and time specific; usually one to two years of measurable results that the DMO wants 1. Executive summary - highlights the major initiatives outlined in the to achieve, based on the marketing goals. marketing plan. 2. Marketing plan rationale - This is where the DMO explains the reasons ▪ DMO Mission - describes a DMO’s reason for being; a broad statement and assumptions behind its choices of activities and programs; summarizes about the organization’s business and scope, services and products, the results of the planning and research done to prepare the marketing plan. markets served, and overall philosophy - The mission statement is a clear 3. Implementation plan - It describes in detail how each of the 8 Ps of description of what the DMO does and whom it serves. destination marketing (marketing mix) will be used for each target market to achieve that market’s objectives for the upcoming period. ▪ Environmental Scan - pinpoints trends and the potential challenges, opportunities and threats in the marketing environment (PESTEL). MODULE 8: THE DESTINATION MARKETING SYSTEM (DMS) AND THE PRICE ▪ Situation Analysis - the DMO identifies the strengths and weaknesses of MODEL the destination and the DMO’s internal strengths and weaknesses - an The DMO’s planning and research tasks are accomplished by answering the effective DMO is constantly taking inventory of its destination’s and the first two Destination Marketing System (DMS) questions (Where are we DMO’s strengths and weaknesses. now? Where would we like to be?) by doing research-based planning and then analyzing the resulting information to develop a destination marketing Destination brand strategy and objectives. - A name, symbol, logo, word mark or other graphic that both identifies and differentiates the destination; furthermore, it conveys PRICE model (Morrison,2010) planning (P), research (R), the promise of a memorable travel experience that is uniquely implementation (I), control (C) and evaluation (E) associated with the destination. - It is used to support the selected positioning approach in Planning (P), Research (R), Implementation (I), Control (C) and communicating the desired destination image. Evaluation (E). It provides a logical sequence for the remaining elements of the destination marketing planning process. The PRICE model is derived DMO’s MARKETING STRATEGY from the destination marketing system (DMS) which involves answering five a. Visitor market segmentation analysis questions in a sequence of steps: b. Target market selection (1) Where are we now? c. Positioning–image–branding (PIB) approach development (2) Where would we like to be? (3) How do we get there? MODULE 7: (4) How do we make sure that we get there? MARKETING MIX SELECTION (5) How do we know if we got there? The DMO has eight principal weapons within its marketing mix for achieving the marketing objectives for each target market 1. Product DESTINATION MARKETING SYSTEM STEPS AND MARKETING 2. Price FUNCTIONS Each DMS step and marketing function in the destination marketing planning process involves using specific marketing techniques and concepts to achieve the marketing objectives. Three Criteria for Evaluating a DMO’s Performance: Evaluation is a systematic process for objectively assessing an organization’s (or program’s) performance’ (Faulkner,1997) 1. Appropriateness: The extent to which the DMO’s objectives and priorities match the needs of its stakeholders. 2. Effectiveness: The extent to which the DMO achieves its marketing goals and objectives. 3. Efficiency: The extent to which the DMO’s marketing program outcomes are achieved at a reasonable cost and within a reasonable timeframe