Competition Tourism Destination
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Transcript of Competition Tourism Destination
Welcome to
Competitive Tourism DestinationConceptual Models Developed to enhance Competitiveness
Dr. Myrza Rahmanita, SE, M.Sc
COMPETITION AND THE TOURISM DESTINATION
The idea of the competitive destination contains two elements
Destination and Competitiveness
DESTINATION
COMPETITION
Elements of destination competitiveness
Effects on destination competitiveness
After you have knowledge about elements idea of the competition, next you will learn model competitive forces of M. Porter.
What is
Model Competitive Forcesof M. Porter?
MODEL COMPETITIVE FORCES OF M. PORTERThe price-competitiveness
approach of Dwyer, Forsyth and Rao
The Bordas demand model
The WES approach
The Poon concept
The conceptual model of
destination competitiveness of
Ritchie and Crouch
The ‘Porter diamond’, or the
determinants of competitive advantage
The competitive forces and generic
strategies of M. Porter
MODEL COMPETITIVE FORCES OF M. PORTER
MODEL COMPETITIVE FORCES OF M. PORTERThe competitive forces and generic strategies
of M. Porter1
MODEL COMPETITIVE FORCES OF M. PORTERThe ‘Porter diamond’, or the determinants of competitive advantage2
MODEL COMPETITIVE FORCES OF M. PORTER
3 The Poon concept
The WES approach( Exchange rate currency X in currency units Y) [
𝐶𝑃𝐼 𝑐𝑜𝑢𝑛𝑡𝑟𝑦 𝑋
𝐶𝑃𝐼 𝑐𝑜𝑢𝑛𝑡𝑟𝑦 𝑌]
MODEL COMPETITIVE FORCES OF M. PORTER
4
MODEL COMPETITIVE FORCES OF M. PORTER
4 The WES approach
The Bordas demand modelMODEL COMPETITIVE FORCES OF M. PORTER
5
• EC= economic/monetary cost (transportation, costs at the spot)
• PhC= physical cost (tiredness and stress)
• PsC = psychological cost (commercial and physical risk)
• PuC = purchasing costs or cost to get access to information and to the trade)
• MS= magnetism of the sales system (capacity of the sales system to create interest in the destination and capability to attract
customers)
• CS= conductivity of the system or the capacity to close a sale (which percentage of customers who were in contact with the sales system, decided to buy the destination)
• PSSE= post-sale service efficiency (creating loyalty and recommendation).
MODEL COMPETITIVE FORCES OF M. PORTER
6
MODEL COMPETITIVE FORCES OF M. PORTER
7 The conceptual model of destination competitiveness of Ritchie and Crouch
MODEL COMPETITIVE FORCES OF M. PORTER
8
MODEL COMPETITIVE FORCE OF M.PORTER
The price-competitiveness approach of Dwyer, Forsyth and Rao
Price competitive index = 𝑒𝑥𝑐ℎ𝑎𝑛𝑔𝑒 𝑟𝑎𝑡𝑒
𝑃𝑃𝑃X 100
1
For further explanation see The Economic of Tourism Destinations page 125
The threat of entrantsNew entrants may stimulate more price competition, or more attention may be paid to product differentiation as they attempt to win market shares.
1
2 The power of suppliers It is dominated by a few companies (there is
a degree of monopoly or oligopoly) and is more concentrated than the industry it sells to (e.g. air charter companies relative to tour operators)
The industry is not an important customer of the supplying group
The group’s product is differentiated, or it has built up switching costs
2 The power of suppliers The group’s product is an important input to
the buyer’s business (e.g. flight costs for a tour operator)
The group poses a credible threat of forward integration (e.g. an air carrier starts a tour-operator’s business)
There are high costs of switching suppliers.
The power of buyers■ If a buyer group purchases large volumes relative to seller sales (the UK tour operator business in Benidorm and other resorts in Spain relative to the local hotel sector is a typical example)
■ If the products a buyer group purchases from a sector are standard or undifferentiated (e.g. hotel rooms)
3
The threat of substitutesThe threat of substitutes can take very different forms.
4
Competitive Rivalry■ There is slow sector growth
■ There are high storage costs or perishability
■ There are high fixed costs
■ There is lack of differentiation
5
Competitive Rivalry■ There is a high strategic stake (to be successful in one market)
■ There are numerous or equally balanced competitors
■ There is over-capacity or big changes in capacity
■ There are high exit barriers.
5
Marketing startegy
DESTINATION MANAGEMENT
4. Information/research Competition and the tourism
destination
3. Quality of service experiences (the destination should
provide a high-quality visitor experience)
2. Marketing (traditional marketing tasks)
1. Organization (administrative and managerial tasks)
5. Human resource development
DESTINATION MANAGEMENT8. Resource stewardship (taking care of the
tourism resource base)
7. Visitor management (e.g. visitor information centre,
ability to deal with crowds)
6. Finance and venture capital
9. Crisis management.
Synthesis of the main variables