Standard 2: Objective 2Destination Marketing

Why do certain destinations appeal to certain customers?

Destination The FINAL stop of a vacation.

• Destinations can be towns, cities, or regions.

The process of developing,

promoting, and distributing specific

locations to customers in an effort to increase

visitation to that location.

Destination Marketing

•Cruises•Amusement Parks•Gaming•Countries•National Parks•Sports/Recreation•Historical Sites

What is a RESORT?A hotel with recreation

facilities that appeal to those traveling for pleasure.

Paradise Island in the Bahamas

The cruise lines, tour companies, hotels and car rental agencies pay travel

agencies a commission for selling their products.

Airlines DO NOT pay commissions to agents.

What is a TRAVEL AGENT and how do they make money?A business that attends to the

details of transportation, itinerary, and accommodations for travelers.

The peaks and valleys of DEMAND

for a destination and its’ facilities

PEAK• When destination is most desirable

Utah SKI resorts in winter New Orleans during Mardi Gras

LOW• When the destination is least desirable

Utah SKI resorts in summer Cancun during Hurricane season: June-

November

What is SEASONALITY?

Seasonality

Resort owners look for ways to INCREASE DEMAND during the LOW season by….• Lowering rates• Encouraging meetings & convention groups• Adding activities to draw in

customers

Supply and Demand concept

SUPP

LYThe amount of GOODS

or SERVICES available at a given price at a given time.

DEM

AND

The amount of goods or services that consumers want and are willing and able to buy at a given price at a given time.

SUPER BOWL Tickets are limited and always in SHORT supply no matter the location of the game, so what does that mean?

PRICES ARE HIGH and TICKETS are FEW

Consumer demand for luxury cruise travel and river boat cruising is on the rise according to a nation-wide survey of travel agents.

SUPPLY and DEMAND                                                                                           

http://www.cruisenewsweekly.com/2010/11/02/demand-for-luxury-cruise-travel-on-the-rise/

How much of a change in price affects the change in demand?

PRICE and DEMAND fluctuation….

ELASTICITY of DEMAND

FOR EXAMPLE:The AIRLINE industry is considered to

be very ELASTIC.For instance, with the price of oil rapidly increasing, the cost of an airline ticket is also increasing and the demand for leisure travel is decreasing.

After 9/11, people were afraid and the demand decreased.

Also - If there is an emergency and someone purchases a ticket close to the departure date, even though there are unsold seats available the cost will increase

ELASTICITY = % change in quantity / % change in price