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. Upper Saddle River, NJ 07458

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

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

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Marketing for Hospitality and Tourism, 4th edition Kotler, Bowen, and Makens

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

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

Benefits of Tourism
Direct employment Support industries and professions Multiplier effect Source of state and local taxes Stimulates exports of place-made products

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Marketing for Hospitality and Tourism, 4th edition Kotler, Bowen, and Makens

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

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

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

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Marketing for Hospitality and Tourism, 4th edition Kotler, Bowen, and Makens

Steps in Environmental Impact Assessment (EIA)

Select preferred alternatives
Develop implementation strategy Implement Evaluate
2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Hospitality and Tourism, 4th edition Kotler, Bowen, and Makens

Sustainable Tourism
Modified environments Building ecotourism subsets that encourage wildlife
Successful long-run tourism destinations require cooperation between industry and community

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Marketing for Hospitality and Tourism, 4th edition Kotler, Bowen, and Makens

Tourist Events
Attract a desired market Fit within the communitys culture Should be replicable (annual/biannual) Allow/encourage local resident participation

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Marketing for Hospitality and Tourism, 4th edition Kotler, Bowen, and Makens

Attractions
Natural
Niagara Falls or The Scottish Highlands

Man-made
The Shopping Areas of Buckingham Palace, Hong Kong or the Vatican

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Marketing for Hospitality and Tourism, 4th edition Kotler, Bowen, and Makens

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

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Marketing for Hospitality and Tourism, 4th edition Kotler, Bowen, and Makens

Determinates of Demand
Prestige

Selfdiscovery

Escape

Relaxation

Demand

Sexual Opportunity

Family Bonding

Education
Social Interaction
Marketing for Hospitality and Tourism, 4th edition Kotler, Bowen, and Makens

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Identifying Target Markets

Collect information about its current visitors Audit the destinations events and attractions and select segments that might logically have an interest in them

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Marketing for Hospitality and Tourism, 4th edition Kotler, Bowen, and Makens

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.

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Marketing for Hospitality and Tourism, 4th edition Kotler, Bowen, and Makens

Classification of Visitor Segments

Group or Independent traveler Degree of institutionalization and impact on the destination

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Marketing for Hospitality and Tourism, 4th edition Kotler, Bowen, and Makens

Group vs. Independent

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

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Marketing for Hospitality and Tourism, 4th edition Kotler, Bowen, and Makens

Degree of Institutionalization and Impact on Destination

Organized mass tourists Individual mass tourists Explorers Drifters Visiting friends/relatives Business travelers Pleasure travel
Marketing for Hospitality and Tourism, 4th edition Kotler, Bowen, and Makens

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Degree of Institutionalization and Impact on Destination

Business and pleasure travelers Tag-along visitors Grief travel Education and religious travel Pass-through tourists

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Marketing for Hospitality and Tourism, 4th edition Kotler, Bowen, and Makens

Plogs 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

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Marketing for Hospitality and Tourism, 4th edition Kotler, Bowen, and Makens

Communicating with the Tourist Market

Form an attractive image of destination Develop packages of attractions and amenities
Attractions alone do not attract visitors

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Marketing for Hospitality and Tourism, 4th edition Kotler, Bowen, and Makens

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

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

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Marketing for Hospitality and Tourism, 4th edition Kotler, Bowen, and Makens

Best Practices
Destination marketing strategy as an aid to recovery: U.S. destination marketing after 9/11
Phuket, Thailand after the Tsunami of 2004

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Marketing for Hospitality and Tourism, 4th edition Kotler, Bowen, and Makens

Key Terms
Allocentrics
Destinations Infrastructure Macrodestinations
2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Hospitality and Tourism, 4th edition Kotler, Bowen, and Makens

Key Terms
Multiplier effect National tourist organizations Psychocentrics Tourism

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Marketing for Hospitality and Tourism, 4th edition Kotler, Bowen, and Makens