2 - Tourism Product Development.pdf

Components of a Tourism Product Development Prepared by: Dr. Marivic V. Ricafort LEARNING OBJECTIVES: a. Explain the principles and components of tourism product development it’s the significance TOPICS TO BE DISCUSSED: ✓ Tourism Product Development ✓ Prerequisites to Tourism Product Deve...

Components of a Tourism Product Development Prepared by: Dr. Marivic V. Ricafort LEARNING OBJECTIVES: a. Explain the principles and components of tourism product development it’s the significance TOPICS TO BE DISCUSSED: ✓ Tourism Product Development ✓ Prerequisites to Tourism Product Development ✓ Principles of Tourism Product Development ✓ Tourism Product Development Process Tourism Product Development (TPD) TOURISM PRODUCT NARROW WIDE What the tourist buys The combination of what the tourist does at the destination and the services used TOURISM PRODUCT A bundle of activities, services and benefits that constitute the entire tourism experience. This bundle consists of five components: destination attractions, destination facilities, accessibility, images and price. (Medlik & Middleton 1973) A collection of physical and service features together with symbolic associations which are expected to fulfill the wants and needs of the buyer; a satisfying activity at a desired destination (Jefferson and Lickorish 1988) Goods, environment and services (Lewis and Chambers 1989) TOURISM PRODUCT “A combination of tangible and intangible elements, such as natural, cultural and man- made resources, attractions, facilities, services and activities around a specific center of interest which represents the core of the destination marketing mix and creates an overall visitor experience including emotional aspects for the potential customers. A tourism product is priced and sold through distribution channels, and it has a life-cycle"  PHYSICAL PLANT INVOLVEMENT SERVICE HOSPITALI FREEDOM OF CHOICE TY SMITH (1995) MODEL OF TOURISM PRODUCT (ELEMENTS OF TOURISM PRODUCT) PHYSICAL PLANT Core of any tourism product; which can be a site, natural resource, waterfall, wildlife, or resort. It may be either fixed property such as a hotel, or mobile equipment such as cruise ship. It also refers to the conditions of the physical environment such as weather, water quality and tourism infrastructure. SERVICE The technical performance of specific tasks required to meet the needs of tourists, such as hotel engaged in management, front desk operation, housekeeping, maintenance, and food and beverage provisions.  HOSPITALITY “Enhanced service” or “something extra”; the attitude or style in which the task is performed (e.g., sensitivity to the pressures on a business traveler, encouragement to play for pleasure travelers. Hospitality is an expression of welcome by local residents to tourists arriving in their community. FREEDOM OF CHOICE Acceptable range of options in order for the experience to be satisfactory; varies with the traveler’s budget, previous experience, knowledge and reliance on a travel agent or pre-packed tours. INVOLVEMENT Participation of consumers in some degree, in the delivery of services (physical, intellectual, emotional involvement); a sense of engagement, of focusing on the activity - whether for pleasure or business. Key Principles of Tourism Product Development A tourism product can be of any type from cultural, educational, recreational, heritage site, or a business hub. Tourism Product Development should: Be authentic and should reflect the unique attributes of the destination. Have the support of the host community. Respect the natural and cultural environments. Be different from the competitors, avoiding copying developments blindly. Be of sufficient scale to make a significant economic contribution, but not very large to create high economic leakage. CHARACTERISTICS OF TOURISM PRODUCT Reading material found in your LMS. https://www.tourismbeast.com/tourism-product-concept/ EXPERIENCE The things we can do, see, eat, buy, have and learn at the destination. The totality of the travel experience from the time of preparation to the time the traveler has returned home. Tourism Product Development is converting resources into something of value that can satisfy customers and provide livelihood and income opportunities at the destination & individual levels.  TOURISM PRODUCT DEVELOPMENT A process whereby the assets of a particular destination are moulded to meet the needs of national and international customers (UNWTO & European Travel Commission 2011) It encompasses all elements with which the visitor to a destination comes into contact, including infrastructure, the service personnel, places of lodging, attractions, and activities, and facilities, that are specially provided for the visitor. MOST COMMON MISCONCEPTIONS ABOUT THE INDUSTRY Here are some common misconceptions about the industry that may be the reasons why so many destinations are suffering from tourism. Destinations need to plan for tourism to avoid negative impacts. Prior to the Covid-19 pandemic there has been a lot of focus on destinations that were experiencing over tourism Apparently, technology is speeding up the "invasion" of remote and outstanding places by tourists, faster than the ability of the communities to prepare.  Sustainable development is not only about economic benefits, but is also about the integrity of the natural environment, as well as the promotion of The more tourists there are, the better. social well-being of the communities in the host destinations. Tourism is the solution to poverty. Tourism will help increase protection of outstanding natural places. An attraction is a tourism product. Promoting a place is enough for tourism to grow and develop Tourism development is primarily the concern of the Department of Tourism. Tourism is not a simple industry. It's a bit complicated because it affects so many other industries. Tourism development is more than just promoting a destination and increasing demand. It's also about building a strong social infrastructure that can withstand the ravages of greed, exploitation, and human irresponsibility. Here are ten questions that destination managers, tourism officers, local leaders and policy makers should ask before they even start promoting their community for tourism. 1. Do we have the proper tourism infrastructure to handle the volume anticipated? 2. Are the people ready to provide services to visitors? 3. Is the police force ready to handle potential crimes of tourists against locals and vice versa? 4. 4. Is our supply of water, fuel and energy enough to support tourism development? 5. Is our food supply adequate for both locals and tourists? 6. Do we have appropriate rules, regulations, codes of conduct, and ordinances to control tourism and people’s behavior? 7. Can we handle the increase in the volume of garbage that may be expected when tourism booms? 8. Are there policies and mechanisms of control that will tame greed of businesses, and ensure that opportunities are well distributed across the value chain? 9. Are there standards that had been established for infrastructure, as well as for services? 10. Are there viable tourism products that reflect the brand essence of the destination? Private businesses, tour companies, and travel agencies are usually the ones who create products if the local community does not. They are frequently developed primarily to generate revenue for these businesses, with little regard for the lost opportunities for residents. Community products should be developed not only for economic reasons, but also to meet environmental and social objectives. They are intended to educate, raise awareness, foster a sense of pride, and encourage community participation and cooperation. Tourism brings about change, most are irreversible. Planning for tourism may slow down things a bit, but the rewards are worth the wait. Topics to read found on your LMS: Components of Tourism Product Development Prerequisites to Tourism Product Development What are the premises of successful tourism products? ACCESSIBILITY The presence of adequate transport infrastructure and independence from foreign operators. Factors include trip frequencies, seat capacities and transportation connectivity in the destination RESOURCES/ EXISTING PRODUCTS The range and quality of tourism resources, diversification, geographic concentration or distribution of tourism resources, supply and quality of human capital. The potential for success of a given tourism resource may be evaluated in terms of quality, authenticity, uniqueness and composition. DEMAND The scale and trends of current market demand, forecast of growth rate, ability of the destination to offer products matching the tastes and characteristics of the market, etc. The choice on what to develop hinges on the existence of sufficient demand for that product. POLICY & GOVERNMENT Stability, openness to tourism, priority given to tourism development, form of government which indicates level of participation allowed in decision making, policy on tourism investment, etc. TOURISM IN RELATION TO THE DESTINATION’S OVERALL ECONOMY Share of tourism to Gross Domestic Product (GDP), percentage of jobs created by tourism, destination stage in the tourism product life cycle, level and quality of entrepreneurship, innovation and education. ACCEPTABILITY TO TOURISM STAKEHOLDERS General view of stakeholders in tourism, tolerance and acceptance to tourism activities, participation and involvement in the planning, management and decision making, etc. KEY TAKE AWAYS Tourism destinations and establishment should adhere to nationally accepted standards. Accreditation is defined by DOT as “certification issued by DOT to a tourism enterprise that officially recognize its having complied with the minimum standards for the operation of tourism facilities and services Topics to read found on your LMS: Pre-requisites to tourism product and development Thank you! Do you have any questions or clarifications? Principles of Tourism Product Development  Tourism product development Relevance should be done in the context of overall tourism development strategic planning.  Tourism product development should follow the principles of Sustainability sustainable tourism development. Circuits and Routes Circuits and routes is an approach for organizing attractions, transportation, accommodation, food, activities, etc by geographic location or by themes.  To know what kind of tourism products one must develop, there should be a keen understanding of the profile, characteristics, tasks and trends of Market various market segments. An example: When it comes to the provision of Knowledge accommodation, if you are targeting business travelers, the rooms must have cable TV, Wi-Fi, Internet, telephones (even one in the bathroom), phone and laptop chargers, etc. If your primary target market is leisure tourists, the room does not have to be that big, for as long as there is a shower. Most of them get a room just to have a place to stay for the night, do biological routines and store everything they shopped. Market Segments ❖ Leisure tourists ❖ Student travelers ❖ Business travelers ❖ Backpackers ❖ Conference attendees ❖ Surfers ❖ Golfers ❖ Families ❖ Single women ❖ Honeymooners ❖ LGBTQA ❖ People with disabilities  You must know the full range of tourist resources that your Product place has to offer. Knowledge Take advantage of what you have. Develop activities around the natural assets of your destination.  You must be able to identify the tourism products that may satisfy the needs and wants of your target markets. Product-market Be mindful of what your markets are looking for in a tour package. Different markets will Match have different sets of expectations. To casino high rollers, price is no object, but Filipino domestic travelers put price-value as the main decision factor. Specific types of tourists will have a set of expectations that must be met. Satisfaction is achieved when such expectations are met by actual delivery of performance or experience. Example: Adventure Tourists from Canada ❏ Attractively sited cabins / accommodations in a lakeside or other attractive nature setting ❏ Full American plan or housekeeping facilities with restaurants available in the area ❏ On-site recreational activities, including swimming, boating, hiking ❏ Well-kept property, largely in a natural state, with some natural looking landscaping and flowers when needed ❏ Value-added - not just price, but overall value for money  Identify areas within the destination which are appropriate for specific types of product development. Develop flagship Hubs and Spokes attractions or hubs. Create the “spokes” around the hub by bundling a range of attractions and activities, creating tourism routes and organizing festivals and events.  Incorporate diverse activities to heighten visitor satisfaction and to make the destination seem Variety to ne new all the time. This can be done through collaboration of several destinations and by providing maps which show tourists the various attractions along the particular route.  Tourists are becoming more Tourist and more aware of their responsibilities as travelers and Involvement it gives them more satisfaction if they know how they can contribute to the preservation of a place’s environmental and cultural integrity.  Government acts as investor, promoter and facilitator. Government’s roles Central Role of include information dissemination about opportunities, planning using designated tourism development areas Government and facilitating and supporting their realization by the private sector or communities. The government may also provide direct financial/investment support in the form of grants or incentives in undeveloped regions. Importance of Local Government Units (LGUs) Local government units (LGUs) play a vital role in bringing TPD to fruition and require strong current knowledge of changing tourist demand. This is because the control and promotion of tourism enterprises have been delegated to the LGUs from the national government since the passage of the Local Government Code of 1991.  Besides working closely with tourism marketing bodies, destination tourism authorities must also build capacity to carry out tourism product development activities. The essence of a tourism product is Dedicated that it is already a bundle of tourism goods and services that can be offered TPD Function to the market for purchase. Thus, destination tourism authorities should be able to package their tourist attractions for sale through marketing channels, such as tour operators. Stakeholder Participation Consultation, coordination and collaboration are key to TPD - consultation with all relevant stakeholders; coordination with all levels of the government, the private sector, and the community representatives, and collaboration with neighboring tourism administration to achieve mutual benefit. Ensure the opinions and aspirations of all relevant stakeholders at all levels factored into the tourism product development plans. Long-term Planning Implementation of TPD plans requires long-term vision, mid-term strategy and planning, and short-term action plans, which lead and support responsibility for each task identified. Plans should be monitored and adjusted as necessary on an annual basis. Zoning Dividing a destination into separate TPD zones can be effective in (a) expressing the strengths of each region, thereby creating a set of identities within the country and (b) spreading the socio-economic benefits of tourism around the whole country. Investment Promotion Encourage investment by formulating a cohesive and integrated development plan for all tourism products and disseminating a product investment portfolio. Investment promotion is essential when the local government unit, for example, does not have adequate financial resources to support tourism product development. Capacity-building Facilitate implementation by creating vocational training and managerial educational programmes that produce the human capital needed by the planned tourism product development. ASEAN Mutual Recognition Agreement (MRA) requires that educational and training programs in the Philippines meet international standards. This enables Filipino workers in tourism and hospitality sectors to complete equal footing with their counterparts in ASEAN. Compatibility with Destination Branding Planners must ensure that the tourism product mix elements do not create conflict. It may not be a wise idea, for example, to allow casino to operate in a destination that is well-established as a pilgrimage site. Holistic Approach Tourism products can only succeed if the other elements of the destination are taken into account. Mcnulty (2011) added sustainable principles to this. TPD should: Be authentic and indigenous and reflect the unique attributes of the destination Have the support of the host community Respect the natural and socio-cultural environments by not damaging these in any way Be differentiated from competitors, avoid “me too/copycat” developments Be of sufficient scale to make a significant economic contribution, but not so large as to create a high economic leakage Thank you! Do you have any questions or clarifications? Product-Market Matching Process What is product-market matching? Tourism Market Tourism Product Producing an inventory of tourism - Characteristics - Entertainment resources and conducting market - Motivations - Relaxation research to identify market segments & - Expectations - Culture their characteristics & requirements - Nature then matching the market segments - Adventure with the resource Market ❖ A set of actual and potential buyers of a product. These buyers share a particular need or want that can be satisfied through exchange relationships. ❖ The tourism product is not for all. The tourism industry aims to target a specific set of individuals. It is for a particular set of buyers, a niche market. Ensuring viable tourism products by meeting market needs Sustainability Greatest interest in the destination Market Growth Connect with development objectives Market visitation volume Market size Spend Market trends and interests Level of money spent by visitor types Value to local development Motivations & Needs Travel Patterns Reason for travel Means of travel Kinds of experiences desired Length of stay Level of flexibility Market Analysis Potential Characteristics Motivations Expectations Product Forms and Reasons why Expectations of Means of Travel they travel facilities and amenities  Variables to Segment Markets Geographic Demographic Psychographic Behavioral Nations Age Social class Special States Life Cycle Lifestyle occasions Regions Gender Personality Purchasing habits Countries Income Motivations Benefits sought Cities Occupation Priorities Usage rate Neighborhoods Education Interests User status Barangays Religion Values Loyalty Status Towns Race Attitudes Buyer readiness Example of Market Segmentation in Vietnam Segment Type Characteristics Motivations Expectation Holidayers International Traveling in organized groups or with family and friends. Relaxation, entertainment, Superior food and short-haul Shorter trips, few destinations. visiting main attractions, shopping. accommodation Business + International Individual and independent business travelers adding some Entertainment, visiting Quality services and Pleasure short-haul tourism activities to their trip. main attractions, relaxation. products. Ease of travel. 1st Timers International Individual or group travel for 1 week or more, utilizing a variety Visiting main attractions, Good food, adequate long-haul of travel means and many destinations. cultural and natural features. accommodation, fair prices, variety. 2nd Timers + International Individual or small group travel – usually self-organized for 1 Authentic experiences and Adequate accommodation, good Avoiding long-haul week or more, usually spending more time in fewer specific activities (i.e. trekking, food & services, authenticity & Crowds destinations. caving). personal experiences. On a holiday Domestic Travel as a family, during national holidays and annual holiday Relaxation, entertainment, Good food, adequate periods visiting main attractions. accommodation, shopping opportunities, fair prices. Day Trippers Domestic Independent travel by families and friends in private vehicles Relaxation, entertainment, Good food, good services, for 1 day, usually on weekends or national holidays. visiting main attractions. ease of travel.  Matching the Market with the Products Segment Entertainment Relaxation Culture Nature Adventure Learning International Holidayers Business + Pleasure 1st Timers 2nd Timers + Avoiding Crowds Domestic On a holiday Day Trippers  MARKET Sun & Nature-based Cultural Shopping, Health and MICE Educational Leisure & Beach Entertainment Wellness Domestic Japan South Korea USA China Australia Singapore Malaysia Canada India HongKong Taiwan Russia UK Germany Thank you! Do you have any questions or clarifications? The Tourism Product Development Process 1. Identify all tourism assets OR RESOURCES IN YOUR DESTINATION. Through research, such as by site-visits and stakeholder consultation, categorize the assets into various portfolios (e.g., beach, nature, heritage, agri-tourism, ecotourism, sports, events, special interest, rural, urban, etc.) There are various ways in categorizing tourism assets. 2. Match the assets with potential markets One way to select what tourism resource to prioritize is by listing down all potential markets per tourism assets and to see what resource attracts the most number of potential market groups. Another is to evaluate them by using the VRIO framework where the asset is evaluated according to its value, rarity, imitability and organization (whether or not it is already being marketed) 3. MAKE THE PRODUCT MORE INVITING This can be done by providing infrastructure, accommodation facilities and other services. 4. DEVELOP ACTIVITIES AROUND ASSETS TO BE MARKETED In Ilocos, they introduced sand boarding and 4x4 rides to utilize the opportunities presented by the sand dunes as the attraction. In beach areas, water sports may be introduced. Zip lines are another popular activity. 5. Develop tour packages focusing on tourism assets These packages must focus on the tourism assets. They may focus on one major tourism asset and supplemented by minor assets. The package may be made of tourism assets revolving around one theme (e.g., tours to various places offering gastronomic delights or places with surfing opportunities) or a variety of assets that complement each other and provide varied experiences (e.g., In Ilocos, churches, sand dunes, beaches, scenic spots, windmills) 6. COMMUNICATE TO THE MARKET Communicate the functional and emotional benefits of the tourism product to the target market. “It’s time to start and reconnect”; “ Experience what we have missed “ “Keep Batangas in mind”; “We can’t wait, we have so much to explore.”  7. DEVELOP A DMO The Destination Marketing Organization or DMO has the responsibility to lead, coordinate, structure, develop and implement activities in the destination. It can be based on the existing tourism office, made up of both government and private sector representatives, or composed on the tourism stakeholders in the area. Thank you! Do you have any questions or clarifications?