18 Destination Marketing

Chapter 18

Destination Marketing

“Marketing should focus on market creation, not market sharing”

- Regis McKenna

“To be wise, a man should read ten thousand books and travel ten thousand miles.” - Li Bai, Chinese poet, Tang Dynasty

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Chapter Objectives• Discuss the benefits of tourism • Explain tourism strategies and different

options for creating and investing in tourism attractions

• Understand how to segment and identify visitor segments

• Explain how central tourist agencies are organized


Tourism

• Tourism is a stay of one or more nights away from home for holidays, visitors to friends or relatives, business conferences or any other purpose except such things as boarding education or semi-permanent employment


The Globalization of the Tourist Industry

• Travel is a global business with an expanding market

• The top ten destinations in the world accounted for less than half the total tourism market in 2002

• Can you list three of the top ten destinations in the world?


The Tourism Destination• Destinations are places with some form of

actual or perceived boundary – Physical boundaries– Political boundaries– Market-created boundaries

• Macrodestinations - the United States contains thousands of microdestinations, including regions, states, cities, towns, and even visitor destinations within a town


Benefits of Tourism• Direct employment

• Support industries and professions

• Multiplier effect

• Source of state and local taxes

• Stimulates exports of place-made products


Management of Tourist Destination

• Destinations that fail to maintain the necessary infrastructure or build inappropriate infrastructure run significant risks

• Violence, political instability, natural catastrophe, adverse environmental factors, and overcrowding can all diminish the attractiveness of a destination

• What was the effect of 9/11 on US Tourism?


Sustainable Tourism

• Sustainable tourism is a concept of tourism management that anticipates and prevents problems that occur when carrying capacity is exceeded at the destination

• Environmental Impact Assessment (EIA)


Steps in Environmental Impact Assessment (EIA)

• Inventory the social, political, physical, and economic environment

• Project trends

• Set goals and objectives

• Examine alternatives to reach goals


Steps in Environmental Impact Assessment (EIA)

• Select preferred alternatives

• Develop implementation strategy

• Implement

• Evaluate©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Sustainable Tourism

• Modified environments – Building eco-tourism subsets that encourage wildlife

• Successful long-run tourism destinations require cooperation between industry and community


Tourist Events

• Attract a desired market

• Fit within the community’s culture

• Should be replicable (annual/biannual)

• Allow/encourage local resident participation


Attractions• Natural

– Niagara Falls or The Scottish Highlands

• Man-made– The Shopping Areas of Buckingham

Palace, Hong Kong or the Vatican


Stopover Tourism

• Many visitor destinations are in fact only stopover destinations for travelers on their way elsewhere


Determinates of Demand

Prestige

Escape

Sexual Opportunity

Family Bonding

Relaxation

Social Interaction

Education

Self-discovery

Demand


Identifying Target Markets

• Collect information about its current visitors

• Audit the destination’s events and attractions and select segments that might logically have an interest in them


Self-Contained Attraction and Event Destinations

• Cruise ships, river paddle ships, special railroads such as the Orient Express– Dining, games, gambling, theatre,

musicals, participatory murder mysteries, seminars, dances, etc.


Classification of Visitor Segments

• Group or Independent traveler

• Degree of institutionalization and impact on the destination


Group vs. Independent

• Most commonly used– Group Inclusive Tour (GIT)– Independent Traveler (IT)


Degree of Institutionalization and Impact on Destination

• Organized mass tourists• Individual mass tourists• Explorers• Drifters• Visiting friends/relatives• Business travelers• Pleasure travel


Degree of Institutionalization and Impact on Destination

• Business and pleasure travelers

• Tag-along visitors

• Grief travel

• Education and religious travel

• Pass-through tourists


Plog’s Categorization• Allocentrics are persons with a need

for new experiences, such as backpackers and explorers

• Psychocentrics are persons who do not desire change when they travel. They like non-threatening places and to stay in familiar surroundings


Communicating with the Tourist Market

• Form an attractive image of destination

• Develop packages of attractions and amenities– Attractions alone do not attract visitors


Organizing and Managing Tourism Marketing

• National tourist organizations (NTOs) are central tourist agencies that make a destination tourist friendly– may be public, quasi-public, nonprofit, or

private

– outside the United States, this agency is often run by the central government, state, or province, together with local government officials


Influencing Site Selection

• All tourism businesses and agencies must work together to promote a destination and to ensure that visitors’ expectations are met– Fam trips, sales calls, travel missions, etc


Best Practices

• Destination marketing strategy as an aid to recovery:

– U.S. destination marketing after 9/11

– Phuket, Thailand after the Tsunami of 2004


Key Terms

• Allocentrics

• Destinations

• Infrastructure

• Macrodestinations


Key Terms

• Multiplier effect

• National tourist organizations

• Psychocentrics

• Tourism


18 Destination Marketing

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