TOUR3004 Destination Marketing Mid-Semester Revision 2025 PDF

TOUR3004 Destination Marketing Mid-Semester Revision 2025, Semester 1 Dr. Michelle McLeod The University of the West Indies, Mona Campus  Intended Learning Outcomes To familiarise students with subject knowledge. To understan...

TOUR3004 Destination Marketing Mid-Semester Revision 2025, Semester 1 Dr. Michelle McLeod The University of the West Indies, Mona Campus  Intended Learning Outcomes To familiarise students with subject knowledge. To understand the requirements of answering multiple choice questions (see last slide in presentation). Destination Marketing Topic 1 Dr Steven Pike  What is the tourism industry? Hospitality? – Is all hospitality tourism related? Travel? – Is all travel tourism related? Recreation? – Is all recreation tourism related? Leisure? – Is all leisure tourism related? An industry is a group of firms engaged in the same activities – What constitutes a tourism business? E.g. A taxi? Movie theatre? Shopping mall?  Tourism No universally accepted definition Conceptually impossible? Depends on the writer’s purpose e.g.: – promote the economic and social benefits of tourism to a community in a bid to enlist government funds for destination promotion – promote the scale and growth of tourism in a business investment prospectus – highlight potentially negative environmental impacts at a proposed development site – report negative socio-cultural impacts at a destination Usually based on economic, technical or holistic considerations The study of destination marketing Most aspects of tourism take place at destinations Destinations are 'the fundamental unit of analysis in tourism' (WTO, 2002) Travellers are now spoilt by choice of destinations The study of destination marketing organisations is a relatively new field The study of destination marketing Understanding the complexity of challenges, opportunities, pressures and constraints facing DMOs is as important to the management of individual tourism businesses as it is to those seeking a career in destination marketing. An understanding of such issues enables stakeholders to take advantage of opportunities in promotion, distribution and new product development, thereby enhancing their own prospects of success as well as contributing to the effectiveness of their destination’s competitiveness.  Definitions The DMO is a destination marketing organisation – Of the 4Ps, the only aspect that DMOs have direct influence over is Promotion – Core focus is leading the development and implementation of collaborative marketing communication strategies that match destination resources with macroenvironment opportunities  Nomenclature Few DMOs have the mandate or resources to be destination management organisations – Management implies control – DMOs do not have control over the destination’s resources – DMOs manage destination promotion and attempt to manage the network of stakeholders  Nomenclature Place marketing involves more than promotion of the tourism destination – Export trade – Public diplomacy – Education – Economic development – See Case 1.1  Nomenclature No widely accepted definition of the term destination – From the supply perspective, it is defined by a political boundary, due to funding predominantly from government – From the demand perspective, it is a geographic space in which a cluster of tourism resources exist Destination marketing organisation DMO ◼Any organisation, at any level, which is responsible for the marketing of an identifiable destination. This therefore excludes separate government departments that are responsible for planning and policy, and private sector umbrella organisations National tourism office (NTO) State tourism office (STO) Regional tourism organisation (RTO) Convention & visitor bureau (CVB) Local tourism association (LTA)  Nomenclature A marketing orientation should pervade the entire organisation – The principle of making all decisions with the consumer’s wants in mind – Tourism in general has been slow to evolve to this stage, and has been dominated by a promotion or selling orientation  Nomenclature Macroregion tourism organisation (MTO) – Collaboration between DMOs for purposes of marketing and/or information sharing E.g. Scandinavian Tourist Board National tourism office/organisation (NTO) – Responsible for marketing a country E.g. Tourism Australia  Nomenclature State tourism office/organisation – Responsible for marketing a state, province, or territory in a country with a federal system of government E.g. Hawai’i Visitors & Convention Bureau Regional tourism organisation – Responsible for marketing a concentrated tourism area such as a city or town E.g. Visit London  Destination marketing literature 1973 the first journal article (see Matejka, 1973) 1988 the first book (see Gartrell, 1988) 1990 the first academic conference (see Table 1.4) 1992 the first book on DMOs (see Pearce, 1992) 1997 the first destination branding conference session (see Gnoth, 1998) 1998 the first destination branding journal articles (see Dosen, Vransevic & Prebezac 1998, Pritchard & Morgan 1998) 1999 the first journal special issue, in the Journal of Vacation Marketing 2002 the first book on destination branding (see Morgan, Pritchard & Pride, 2002) 2005 the first destination branding academic conference (see Table 1.4) 2007 the first journal special issue on destination branding, in Tourism Analysis 2009 the first review of the destination branding literature (see Pike, 2009) 2014 the first review of the destination marketing literature (see Pike & Page, 2014)  Chapter 2 Introducing marketing: the systematic thought process  Marketing orientation Operation must revolve around the long – run interests and satisfactions of customers The achievement of profits and other organisational goals result from customer satisfaction A positive, outward looking, innovative and competitive attitude towards the conduct of exchange transaction An outward looking, responsive attitude to events and conditions in the external business environment within which an organisation operates especially the actions of competitors The strategic or long –run sustainable balance to be achieved between the need to earn profits or maximise the use of existing assets and the equally important need to adapt an organisation to achieve future profits, recognising social and environmental resources  Product and product orientation The attitudes and responses of businesses with products experiencing strong and rising demand The focus is on: – production capacity – quality and cost controls – finance for increasing production and maintaining the efficiency of profitability  Sales orientation The attitude and responses of businesses whose products are no longer enjoying steady growth in demand or are in decline Surplus is the main problem The focus is: – To secure sales – Increase expenditure on advertising and distribution channels – Sales promotion, or price discounting  Chapter 3 The special characteristics of travel and tourism marketing  Services and their characteristics Services unlike goods are performances Buying services does not offer ownership (intangibility) In most cases services cannot be held and can perform on a once only basis (perishability)  Table 3-1  Two other characteristics Heterogeneity or variability – Every service performance is unique to each customer Intangibility – Most services can not easily be measured, touched or evaluated at the point of sale Destination Marketing Topic 2 Dr Steven Pike  DMO history Lack of literature relating to the history of DMOs – 1864 – first RTO (Switzerland) – 1896 – first CVB (USA) – 1901 – first DMO (New Zealand) – 1903 – first STO (USA) – 1948 – first MMO (European Travel Commission) Most NTOs formed after World War II Most RTOs formed in the 1980s and 1990s  Consumers spoilt by choice Almost unlimited number of destinations to choose from In the USA alone there are over 20,000 cities The world’s top 10 most visited countries account for almost half of all international arrivals – The other 95% of WTO-member NTOs compete for the other half  Table 2.1 Top 10 most visited countries in 2012 Country International visitor arrivals (millions) France 83.0 USA 66.7 Spain 57.5 China 57.7 Italy 46.4 Turkey 35.7 Germany 30.4 UK 29.3 Russia 25.7 Thailand 22.4 Source: WTO (2014) Table 2.2 Forecasted most visited cities in 2015 Ranking City Visitor arrivals (millions) 1 London 18.82 2 Bangkok 18.24 3 Paris 16.06 4 Dubai 14.26 5 Istanbul 12.56 6 New York 12.27 7 Singapore 11.88 8 Kuala Lumpur 11.12 9 Seoul 10.35 10 Hong Kong 8.66 Source: Adapted from TravelandTourWorld.com (2015)  Destinations There is no system ‘co-ordinator’ Destinations the biggest tourism brands – E.g. more people think ‘I want to go to Paris’ than ‘I want to take a QANTAS flight’ Most tourism activities take place at destinations The success of a tourism business is reliant to some extent on the competitiveness of the destination – E.g. Bali, Fiji, Iraq, Christchurch Hence the importance of DMOs  One industry concept ‘The tourism industry (in New Zealand) is so fragmented, diverse, unfocused, self-seeking and disorganised that PhD theses have been written on its structural complexities. It’s got more separate working parts than a 747’s Rolls Royce engine and only some of them are headed in the same direction’ (Chamberlain, 1992, p. 21)  Diversity of tourism destination stakeholders Government Tourism businesses and organisations Other business sectors Media External travel intermediaries Environmental groups Education groups Host community  Rationale for DMO establishment DMO is formed as a consequence of a community seeking to become formally organised to attract visitors ◼ ‘Cooperate to compete’ Many of the first DMOs were primarily ‘boosters’ – Short-term economic gains – Little consideration of other impacts Table 2.4 DMO mission statements highlighting a holistic approach DMO Mission Source NTO To advance the positioning of St Vincent and http://www.discoversvg.com/i St Vincent and The Grenadines as a diverse, globally ndex.php/es/contact/about-us The Grenadines competitive tourism destination through effective planning, development, management, marketing and sustainable use of the natural resources and heritage sites and attractions of the country STO Honor Hawai’i’s people and heritage; value http://www.hawaiitourismaut Hawai'i Tourism and perpetuate Hawai'i's natural and cultural hority.org/default/assets/File/ Authority resources; engender mutual respect among all about/tsp2005_2015_final.pdf stakeholders; support a vital and sustainable economy; and provide a unique, memorable and enriching visitor experience  Destination competitiveness The DMO reason for being Not yet a widely accepted causal model of destination competitiveness Agreement that the construct comprises economic, social, cultural and environmental dimensions Difficult to sustain without effective organisation Destination Marketing Topic 3 Dr Steven Pike  The case for government intervention in tourism tourism is an enabler of economic development for society there would be a risk of market failure if responsibility for destination marketing was solely the responsibility of the private sector and the free market provision of infrastructure stimulates inward private sector investment tourism provides fiscal revenue opportunities for government border control policies impact on tourism development regulatory safeguards are needed to ensure the safety of visitors disaster response management to avert a tourism crisis protection of resources is required to maintain an attractive environment tourism presents socio-cultural benefits for communities  Table 3.1 Full-time equivalent tourism jobs Destination Ratio of full-time Source equivalent tourism jobs in the economy Greece 18% SETE (2014, in Trihas et. al, 2013) United Kingdom 14% WTO (2011) Central and Eastern 12% WTTC/WEFA (1997, in Hall, 2002) Europe Queensland, Australia 10% QTIC (2015) Mexico 10% WTTC (2004, in Berger, 2006) The world 9% WTO (2014) South Africa 9% www.tourism.gov.za, 2/3/15 Australia 8% Tourism Research Australia (2013) Saudi Arabia 7% WTO (2011) Brazil 6% WTO (2011) Kansas City, USA 5% www.visitkc.com/about-visit-kc, 2/3/15  Withdrawal of government funds Most common funding source is a government grant Can lead to a state of crisis Due to lack of alternative funding E.g. – Colorado, California, Maine (USA) – Waikato (New Zealand) ‘It’s a very gut wrenching situation. Marketing of the whole Waikato will be suspended until funding regenerates.’  Market failure Rationale for marketing destinations: – Drawing power of multiple attractions Stimulating ‘cooperating to compete’ philosophy – Mobility of tourists They are spoilt by choice of destinations – Holistic tourism experiences – Intra- and inter-destination cooperation, coordination and collaboration Market failure if left to individual businesses in lieu of a cooperative DMO  Government funding decision factors Local politics Community acceptance of tourism Destination life-cycle stage and industry maturity Economic size and importance of tourism relative to other industries DMO history and current structure The lobbying power of stakeholders The global/national economic situation  Other government funding sources Accommodation tax – Particularly common for USA CVBs – Average tax = 11% on top of room rate – Not all bed tax revenue is passed on to DMO – Some revenue used for other government services Note: visitors use general infrastructure – Not all accommodation operators support a bed tax regime Increases tariffs Tax collectors for government  Other government funding sources Tax on business – Particularly useful in smaller resort areas – Can target all businesses including those not directly dealing with visitors Avoids problem of defining 'tourism' businesses – A levy on capital value of business turnover  Sources other than government Member subscriptions – Time consuming – Relatively small funding compared to government grants – Implications for servicing members ‘Bring in the business’  Sources other than government Commercial activities – 63% of UK CVBs have developed income through commercial activities – Many DMOs are not permitted by legislation to engage in business activities – Options: Destination brand licensing Visitor information centre commissions – ‘Preferred supplier’ arrangements contentious Convention booking commissions Selling mailing lists  Sources other than government Cooperative campaigns – Effective means of tracking industry contributions Government grant is seen as seed funding to stimulate increased private sector funding – Diversity of opportunities Sales missions Travel exhibition participation Media advertising Visiting media programmes Public funding of tourism marketing Anyone with a vested interest in the tourism industry should: – understand the arguments for/against public funding of DMOs – understand how to take advantage of cooperative efforts Destination Marketing Topic 4 Dr Steven Pike  DMO as impartial coordinator If left to the private sector to organise and fund destination promotion … – Self-interests prevail – Disparate individual efforts – Results in market failure  DMOs Trend towards public–private partnerships (PPPs) – Government as funder and provider of infrastructure – Industry expertise for decision making at board level National tourism offices (NTO) » E.g. Tourism Australia State tourism offices (STO) » E.g. Tourism Queensland Regional tourism offices (RTO) » E.g. Brisbane Marketing Local tourism associations (LTA)  DMO names Agency (Latvian Tourism Development Department (Dubai Department of Agency) Tourism and Commerce Marketing) Authority (The Gambia Tourism Authority) Destination (Destination Northland) Board (British Virgin Islands Tourist Board) Development (Northern Tasmania Bureau (Hawaii Visitors Bureau) Development) Centre (Le Centre Gabonais de Promotion Directorate (Crete Tourism Directorate) Touristique) Institute (Nicaraguan Institute of Tourism) Coalition (North Carolina Travel & Tourism Ministry (Israel Ministry of Tourism) Coalition) Office (China National Tourism Office) Commission (Nevada Commission on Organisation (Cypress Tourism Tourism) Organization) Company (New York City and Company) Region (Bundaberg Region Limited) Corporation (Virginia Tourism Corporation) Council (Swedish Travel & Tourism Council)  PPPs Historically DMOs have been government departments PPP becoming the most common legal entity Potential advantages: ◼ Blends industryexpertise with government resources ◼ Generates larger budget ◼ Less bureaucratic and more entrepreneurial ◼ Increased accountability ◼ Reduced antagonism through representation Destination Marketing Topic 5 Dr Steven Pike  Disasters and crises No destination is immune to disaster – Every DMO should consider the possibility of a disaster at some stage in the future Disasters can be man-made or acts of God – They can be short term or long term Almost all will be unpredictable and beyond the control of the DMO The level of preparedness for a disaster at a destination will determine the extent to which a management crisis manifests  Disaster or crisis? Disaster Crisis – a sudden catastrophic change – self-inflicted situation caused over which the organisation by such problems as inept has little or no control management practises or inability to adapt to a changing environment  Travel advisories All national governments have a responsibility to provide an advisory service for their citizens identifying potentially risky destinations Most countries provide regularly updated travel advisories on government websites Implications for the DMOs of these countries are significant in terms of the damage to the image of their destination and the necessary recovery- marketing efforts The extent to which promotional efforts are negated by government travel advisories is a contentious issue Unfortunately, the negative images created by publicity surrounding a disaster can last far longer than any physical destruction to infrastructure or tourism facilities  Dark tourism AKA Thano tourism There is a dark side to image marketing, where some travellers are attracted to the negative images of places that have suffered disasters Visits to scenes of death and disaster for reasons of remembrance, education or entertainment Useful resource:www.dark-tourism.org.uk Destination Marketing Topic 6 Dr Steven Pike  Vision DMOs articulate an envisioned future as a way of motivating stakeholders A destination vision has been described as an 'inspirational portrait of an ideal future that the destination hopes to bring about at some defined future' (Goeldner et al., 2000, p. 445) E.g. Tourism Australia is a leverage marketing organisation that has adopted the vision of becoming and remaining the best DMO on the planet (www.tourism.australia.com)  Table 8.1 DMO vision statements DMO Vision Visit Britain To inspire the world to explore Britain http://www.visitbritain.org/aboutus/overview.aspx Visit Orlando, USA To be the most visited destination in the world http://www.visitorlando.com/about- us/ Tourism New Zealand To motivate our target market to come now, do more and come back http://traveltrade.newzealand.com/en/about/ Brand USA Brand USA will be responsible for positioning and promoting the United States as a compelling destination for international travellers, inspiring visitors with a refreshed understanding that there is no place in the world like the United States of America with its limitless destinations and attractions. We will build a world-class team and organization that will execute an integrated marketing and communication strategy designed to deliver the highest possible return for the United States – in the form of job creation, GDP and export growth, and increased federal tax revenues. www.thebrandusa.com  Table 8.1 (continued) DMO Vision Destination New South Wales, Australia To make Sydney and NSW one of the world’s most successful tourism and event destinations. www.destinationnsw.com.au/about-us Vancouver Convention & Visitors Bureau, To be the global leader in destination sales, marketing and visitor experiences Canada www.tourismvancouver.com/about-us  Destination marketing strategy Two concepts underpinning strategy development – Marketing is a forward-thinking exercise – Marketing is all about matching organisational resources with environmental opportunities Three key planning tools – SWOT matrix – STEEPL analysis – VRIO analysis  Goals and objectives Organisations are established to achieve goals Goals are general statements of intent, related to the mission – usually qualitative – broad indicators of how the mission will be achieved BHAGs can be inspirational  Table 8.10 DMO goals Warsaw Destination Alliance, Poland Improve the image of Warsaw throughout the world www.destinationwarsaw.com Destination New South Wales, Australia Increase industry stakeholder and customer engagement www.destinationnsw.com.au/about-us Hawai’i Tourism Authority, USA Maintain and improve transportation access, infrastructure and services www.hawaiitourismauthority.org to facilitate travel to, from and within Hawai’i The Cotswolds, England Counter perceptions of the destination as expensive www.cotswolds.com Prague City Tourism Increase average spend per visitor www.praguecitytourism.cz Tourism Australia Increase tourism labour and skills www.tourism.australia.com  Goals and objectives Objectives are quantifiable targets to achieve the goals SMART – Specific – Measurable – Agreed with those who must attain them – Realistic – Time constrained  Table 8.11 DMO objectives Maryland Office of Tourism, USA Secure 'destination Maryland' media placements that have a value of at least $15 million in the 2014 fiscal year Destination New South Wales, Australia Maintain a full time position within Destination NSW as a resource dedicated to support Aboriginal tourism businesses Visit Scotland Identify knowledge gaps, conduct research and collate evidence required to build a strong case for action to promote sustainable tourism Tourism Rotorua Destination Marketing, Increase Rotorua’s share of the Australian visitor arrivals to New Zealand New Zealand Tourism Tasmania, Australia Implement two domestic PR campaigns Johnson County, USA Create Amtrak packages, including train ticket, rental car, hotel, attraction tickets, and meal for weekend trip to Johnson Country Destination Marketing Topic 7 Dr Steven Pike  The importance of brands Today’s consumers have more product choice but less decision-making time than ever before Consequently, a brand that can help simplify decisions, reduce purchase risk, and create and deliver expectations is invaluable (Keller, 2003) The future of marketing will be a ‘battle of brands, a competition for brand dominance’ (see Aaker, 1991 p. ix) Within the tourism industry, destinations are emerging as the biggest brands (Morgan et al., 2002)  Three components of branding Brand identity – The desired image aspired to in the market place – Clear vision and values – What the brand stands for – Differentiates from rivals  Three components of branding Brand image (Chapter 10) – The actual image of the brand held by consumers – Might be quite different to that intended by the brand identity – Might not exist  Three components of branding Brand positioning (Chapter 11) – The attempt to achieve congruence between the brand image and brand identity – Clear differentiation from rivals – Logo, slogan … and supporting marcom – Succinct and meaningful value proposition  Reference Middleton, V., Fyall, A., Morgan, M. and Ranchhod, A. 2009. Marketing in Travel and Tourism, 4th edition, UK: Routledge. Course support: http://books.google.com/; http://www.routledge.com/books/details/97807506 86938/ Pike, S. 2021. Destination Marketing, 3rd Edition, Abingdon: Routledge. Course support: https://routledgetextbooks.com/textbooks/9780367 469542/student.php.  Journal Article 1 Fyall, A. and Leask, A. 2006. “Destination marketing: future issues – strategic challenges.: Tourism and Hospitality Research 7(1), 50-63.  Answering multiple choice questions Elimination technique Except type questions All of the following type questions Paired choice questions Long worded choices