Chapter Ten

Understanding Tourism Markets

Importance of Travel and
Tourism
 United Nations World Tourism
Organization (UNWTO) defines tourism
as the activities of people traveling to
and from places outside their usual
environment for not more than one
consecutive year
Importance of Travel and
Tourism
 Tangible and intangible components are all
interrelated and sensitive to environmental
trends including:
 The tourist
 The tourist-generating region
 Transportation systems
 Tourist destinations
 Hospitality services
 The tourism industry
Importance of Travel and
Tourism
 The multiplier effect
 The impact the tourist dollar has on a
destination’s economy in that wage earners
working in hospitality and tourism also
spend earnings in the local community
The Multiplier Effect
Importance of Travel and
Tourism
 Fastest growing destinations have been Asia,
the Pacific and Middle East
 Competition among destinations is fierce
 Travelers wants and needs constantly change
 Tourism is susceptible to changes in the
macro environment
Importance of Tourism to a Destination’s
Economy
Becoming a Recognized Destination
Benefits of Tourism
Direct Employment
Support Industries
Multiplier Effect
State and Local Revenues
Export locally made products
High Expenditures

Management of the Tourist Destination

Sustainable Tourism
Importance of Tourism to a Destination’s
Economy
Sustainable Tourism - Carrying Capacity
• Carrying capacity is determined by an environmental
impact assessment (EIA), typically with these steps:
 inventory the social, political, physical, and economic
environment
 project trends
 set goals and objectives
 examine alternatives to reach goals
 select preferred alternatives
 develop implementation strategy
 implement
 evaluate
Importance of Tourism to a Destination’s
Economy
Sustainable Tourism - Ecotourism
 Ecotourism is one of the fastest growing niche markets in
the travel industry & generally viewed as representing
sustainable tourism.
 It occurs only when government & private industry
cooperate in planning and strict enforcement of
regulations and laws.
 Modified environments are ecotourism subsets, such as
resorts, ski lodges, golf courses, and city centers that
have developed habitats on their grounds that encourage
wildlife.
Importance of Tourism to a Destination’s
Economy
Industry and Community Cooperation
Carbon-Neutral Vacations
Local Residents’ Attitudes
Towards Tourism
 Success and sustainability of tourism depends
on the attitudes of local residents towards
tourism
 Hospitality of local residents is important
 Will support tourism when the expected
benefits exceed the costs
 Residents of depressed economies are likely to
support tourism for its perceived benefits
 Ultimately there must be a fit between what
the market wants and the destination offers
The Globalization of the Tourist Industry
Destination Planning & Marketing

 Market entry in tourism is open, & new destinations can

acquire market share and the economic and social
benefits of tourism.
 Successful destination planning & marketing can bring
hundreds of millions and even billions of dollars in
revenue to destinations.
 New supportive industries, jobs can be created, standards
of living increased, and the interchange
of cultures assists the quest for world peace.
 Destination marketing is a career worthy of college and
university graduates.
 Five Forces Model
Technological
Environment Sociocultural
Risk of Entry by
Environment
Potential Competitors

Ecological Bargaining Threat of

Environment Power of Substitute
Suppliers Products

Rivalry Among Regulatory

Established Firms Environment

Economic
Environment Bargaining Power
Of Buyers Political
Environment
Tourism Strategies and Investments
Identifying Target Markets
 A destination can identify target markets two ways.
 collect information about its current visitors

 audit the destination’s events & attractions and select

segments that might logically have an interest in them.

 After a destination identifies its natural target markets,
planners should conduct research to determine where
these tourists are found.
 Tourism marketers know even though an area may attract
an activity-specific segment, there is great potential in
providing reasons for others to come.
Segmenting the Tourist Market
 Understand the destinations capabilities
and resources and use them to attract
tourist segments
 Services the destination offers
 What customers make purchases and why
 Meeting customer needs
 Core competencies
Tourism Strategies and Investments
Classification of Visitor Segments
 Several classifications have been used to describe
different visitor destination segments.
 common classifications, based on if the tourist travels

with a group or independently are group-inclusive

tour (GIT) and independent traveler (IT)
Tourism Strategies and Investments
Classification of Visitor Segments
• Some classifications describing tourists by degree
of institutionalization and impact on destinations:
 Organized mass tourists. 

 Individual mass tourists. 

 Explorers. 

 Drifters. 

 Visiting friends/relatives.

 Business travelers. 

 Pleasure travel. 

 Business and pleasure travelers. 

Tourism Strategies and Investments
Classification of Visitor Segments
• Some classifications describing tourists by degree
of institutionalization and impact on destinations:
 Tag-along visitors.
 Grief travel.
 Education and religious travel.
 Pass-through tourists. 
Communicating with the Tourist Market
Competition Involves Image-Making
 Destination images are heavily influenced by pictorial
creations in movies or TV, by music & in some cases by
popular entertainers and celebrities.
 Television affects destination attractiveness.
 Many tourist destinations have discovered that it is
important to show residents interacting with tourists in
their advertisements.
Communicating with the Tourist Market
UNESCO World Heritage Sites
 The designation of World Heritage Sites by UNESCO is
important to world tourism and
very important to selected sites.
 The program designates & hopes to help conserve sites
of outstanding cultural or natural importance to the
common heritage of humanity.
Communicating with the Tourist Market
Developing Packages of Attractions and Amenities
 Tourist organizations must develop a package of
attractions and amenities, as travelers make comparisons
about the relative advantages and disadvantages of
competing destinations.
 Despite the best efforts of a destination to portray a
positive image via public relations & advertising, image
building is affected by reports of disturbing societal
problems, including human rights abuse.
Communicating with the Tourist Market
National Tourism Organizations
 Countries & states usually have government or
quasi-government agencies that market destination
tourism.
 The NTO can formulate and develop the tourist product
or products of the destination and promote them in
appropriate markets.
National Tourism Organizations
(NTOs)
 NTOs facilitate:
 Collecting analyzing and decimating market
research data
 Establishing a representation in the markets of
origin
 Participating in trade shows
 Organizing and coordinating familiarization trips
 Supporting the private sector in the production and
distribution of literature
Communicating with the Tourist Market
National Tourism Organizations - Mission Guidelines
• The following guidelines were developed to assist in
formulating a mission statement:
 past experiences in the region with regard to tourism
must be considered
 the regional tourism organization must be prepared
to adapt the region’s mission
 the region’s tourism resources make certain missions possible
and others not
 the preferences of the region’s major tourism publics
must be considered
 the mission must be based on the region’s distinctive
competencies
Communicating with the Tourist Market
National Tourism Organizations - Goals
 Goals provide direction to the organization, such as the
following typical tourism goals:
 economic; consumer

 environmental and natural resources

 government operations.

 The objective of national strategy formulation is to

translate current conditions in the region into desired
situations.
Communicating with the Tourist Market
Regional Tourism Organizations
 To have a chance of being selected as a meeting site, a
destination must be included in the initial decision
process.
 The owner & manager of hospitality organizations such
as a hotel, restaurant, or attractions that entice tourists
should work with STOs to see how they can promote
their business.
 City, county, or area convention and visitors bureaus
(CVB) promote tourism on the local level.
Communicating with the Tourist Market
Regional Tourism Organizations - Travel Missions
 Travel missions are commonly organized by government
or quasi-government tourism promotion bureaus, and
have two general categories:
 Exploratory missions - the primary objective is to
explore new business opportunities and to develop new
markets.
 Travel sales missions - where participants intend
to make direct business contacts and close sales.
Travelers’ Information
Search Behavior
 Part of the decision making process
 Understanding can aid marketers to
develop effective communication
 Consumers prior knowledge:
 Expertise
 Familiarity