Introduction to tourism

How can we understand the tourists?

Tourist – main characters in the tourism industryTourism Businesses :•Concerned with what motivates tourists•How they make decisions•What they think of the products they buy•How much they enjoy and learn •How they interact with the local people and environment•How they feel about their holidays

Travel motivations – most fundamental question among the study of tourists’ behavior

Description of the Different Human Needs by Moslow

Physiologicneeds

Need to breathe, need for water, need to eat, need to dispose of bodily wastes, need for sleep, need to regulate body temperature, and need for sexual activity, body comfort and exercise, etc.

Safety Need for security of employment, revenues and resources; need for physical security (safety from violence, delinquency, aggression); need for moral and physiological security; need fro familial security; need for security of health.

Love/belonging Need fro friendship, sexual intimacy, having a family and need to belong in a group

Esteem Need to be respected, need for self-respect and need to respect others; need fro recognition, need fro activity that gives the person a sense of contribution and self-value.

Actualization Need to make the most of one’s unique abilities and need to strive to be the best.

NEEDS OF TOURISTS IN EVERY STAGE OF LIFE CYCLE(Leisure Ladder Model by Philip Pearce)

Relaxation & Bodily Needs

Need for basic services (food, space, toilets) for restoration and personal maintenance and repair

Stimulation Excitement and safety (fun and thrill of rides, experience of the unusual, out-of-the ordinary settings and different tools and people)

Relationship Build and extend personal relationships (tenderness, affection, joint fun, joint activities, altruism and being directly involved)

Self-esteem and Development

Need to develop skills, knowledge and abilities (competent, in control, respected, and productive)

Fulfillment Feel peaceful, profoundly happy (magical as if transported to another world, spiritual and totally involved in the setting)

TOURISTS’ DECISION-MAKING PROCESSFACTORS Influencing The Decision of Tourists (Schmoll)

Field 1: Travel Stimuli External stimuli that can awaken an individual’s desire or need to travelEx: Advertising, Promotion, Friends, Travel Reports

Field 2: Personal and Social Determinants

Ex: Socio economic status, personality features, social influences and aspirations, attitudes and values, motivations, desires, needs and expectations

Field 3: External Variables Ex: Confidence in external intermediary, destination service, previous travel experience, assessment of objectives, constraints in time, cost, etc.

Field 4: Characteristics & Features of The Service

Ex: Cost/value relations, attractions/amenitiesoffered, range of travel opportunities, quality/quantity of travel information, type of arrangement offered

TRAVEL BUYING BEHAVIOR BY MATHEISON & WALL•Tourist Profile – age, education, income, attitudes, previous experience and motivations•Travel awareness – through sources•Destination resources and characteristics – attractions and features of the destination •Trip features – distance, trip duration, and perceived risk of the area visitedStages of the Buying Behavior of TouristsFelt Need or Travel Desire – felt and reasons are weighedInformation and evaluation – brochures, advertisements, friends, relatives, etc.Travel DecisionTravel Preparations and equipment – bookings, budget, etc.

Travel Satisfaction Evaluation

TOURIST TYPOLOGIES•Classification of tourists based on their behavior•Serve as guide as to what products, services, and facilities should be sold to certain tourists

TOURIST CATEGORIES (By Eric Cohen)1. The organized mass tourist

• Packaged tour fixed iteneraries• Planned stops• Guided organizers making the decisions

2. The individual mass tourist• Tour not entirely planned by others• Tourist having some control over his itenerary/time• Major arrangements – travel intermediary• Dominant familiarity

Cont’n: Tourist Categories

3. The explorer•Usually plan his own trips; try to avoid developed tourist attractions•Tourist not fully integrating with locals

4. The drifter•Plan their trip alone•Avoid tourist attractions and live with locals•Almost entirely immersed in the host culture, sharing its shelter, food and habits•Novelty is dominant; familiarity disappears

GLOBAL TRAVEL SURVEY – United Kingdom, 20051. Adventurers 4. Economizers2. Worriers 5. Indulgers3. Dreamers * Based on how tourists perceive traveling

ADVENTURERS•New experiences, activities, cultures and people•Independent, in control, need not be pampered•“Hate to travel with a group of people even if known to them”

WORRIERS•Anxiety about traveling; travel not important to them•Not particularly adventurous

DREAMERS•Fascinated by travel, anxious about stresses of travel•More on relaxation than adventure•“Travel to enjoy life; to impress people”

ECONOMIZERS•Travel primarily because they need a break, travel is not a central activity•Seek value in travel; sense of adventure is low•Experience of travel does not add meaning to their lives

INDULGERS•Like to be pampered•Travel not a central or important experience•Willing to pay for a higher level of service when they travel•“Don’t worry about how much things cost as long as I get the special attention when I travel”

MARKET SEGMENTATION – similar to tourist typology1. Geographic 3. Psychographic 2. Demographic 4. Product-related

GEOGRAPHIC SEGMENTATION •Based on their location

DEMOGRAPHIC SEGMENTATION •Gender, age, ethnicity, occupation, education, income, household size, and family situation

PSYCHOGRAPHIC SEGMENTATION •Based on how tourists live and on their priorities and interests

PRODUCT-RELATED •Based directly on what they want and need in a particular good or service

TRENDS ON TOURISTS/TOURISM – Internet; e-Commerce –on line buying

Characteristics of modern tourists (e-Tourism, Steinbauer, 2005)

More mobile and criticalLess loyal and frequently changing their product preferencesLooking for more specialized products and asking for better serviceWanting more and better informationComparing more products in more detailHaving fast changing needs Having the tendency to make more but shorter vacations

WHAT ARE THE COMPONENTS OF TOURISM?1. Tourist attractions and activities – most important

• Natural • Man-made

2. Accommodation3. Transportation4. Other tourist facilities and services – food establishments,

postal facilities and services, medical, banking/money exchange services, souvenir shops, parlors, etc.

5. Other infrastructure – hygienic water supply, adequate electric power, proper waste disposal, adequate telecommunications,

6. Institutional elements – not very visible to tourists –education and training of persons working in tourism establishments, marketing, standards, regulatory mechanisms of tourist facilities (Government, etc.)

TOURISM SECTORS THAT CATER TO THE NEEDS OF TOURISTS1. Attractions, entertainment, recreation and others

• Natural resources• Commercial – resorts, casinos, amusement parks,

convention centers, retail centers• Historical – monuments, historic homes, museums,

battlefields, landmarks• Socio-cultural – festivals, crafts, art museums, ethnic

events, unique culture2. Accommodation3. Transportation4. Travel intermediaries – tour operators, travel agents, the

internet5. Travel-related shopping and financial services – ATM,

credit/debit cards, checks, vouchers

Two major groups of tourist accommodation:1. Collective tourist establishment

• Hotels and similar establishments• Specialized establishments – spas, health farms, etc.• Other collective establishments – holiday dwellings,

apartment buildings, tourist campsites, mobile homes 2. Private tourist accommodation

Assignment:1. Hotel, motel, bed-and-breakfast, capsule hotel,

campgrounds and recreational vehicles, holiday cottages, apartelle, condotel, resorts, residence inn, cottage

2. Give at least three impacts of internet in the tourism industry

3. What is the role of transportation in the tourism industry?

HOTEL STAR CLASSIFICATION:1. One Star – low-budget hotel2. Two Stars – budget hotel; has maid service daily3. Three Stars – middle-class hotel; moderately priced4. Four Stars – first-class hotel; expensive; w/ luxury services5. Five Stars – luxury hotelHOTEL TERMINOLOGY:1. Single – room with one twin bed2. Twin – room with two twin beds3. Double – room with one double bed4. Double double – two double beds5. Murphy – with a Murphy bed (folds out of a wall or closet)6. Suite – with one or more beds and a living area7. Connecting – rooms that are side by side and have a door

connecting the two rooms8. Adjoining – rooms side by side but no connecting door

Hotel Terminology:

European Plan (EP) – room only, no mealsContinental Plan (CP) – continental breakfast included in the

room price (juice, coffee, roll, pastry)Modified American Plan (MAP) – Continental or full breakfast

and dinner included in the room priceAmerican Plan (AP) – continental or full breakfast, lunch and

dinner included in the room price

FOOD & BEVERAGE SERVICES:Café (Bistro/France) – quick service, light meals, and snacksRestaurants - “restaurer” w/c means to restorePubs (Public House) – drinking establishments; informal

atmosphere; not only for maleNightclubs – nightspots, clubs or discos (comedy clubs/

concert clubs)

MODES OF TRANSPORTATION:1. Road2. Rail – Europe; Amsterdam, Singapore, London Airports3. Water – line voyage services (port-to-port basis), cruise

ships, ferries (sightseeing within a destination)4. AirTOP TEN AIRLINES WORLDWIDE (2006):1. British Airways2. Qantas Airways3. Cathay Pacific4. Thai Airways5. Emirates6. Qatar Airways7. Singapore Airways8. AnA9. Malaysia Airlines10. China Airlines

TOUR OPERATORS – purchase separate elements of transport, accommodation and other services, and combine them into a package – sell directly or indirectly to the consumers

DIFFERENT TOUR PACKAGES:1. Special-interest tours – specific group of tourists, e.g.

adventure tours, educational, pilgrimage, bird-watching tours

2. Escorted tours – led by tour guide3. Foreign independent tours/domestic independent tours

(FIT/DIT) – more freedom; do not follow fixed itinerary; need not travel with a group

4. Group inclusive tours (GIT) – clubs or business organizations

TYPES OF TOUR OPERATORS:1. Inbound Operators2. Outbound Operators3. Specialty Operators4. Domestic Operators

Travel Agents – referred to as retailers; go to a tour operator or go to a supplier

Commission – payment received by travel agents for the sale of services

The Internet :Disintermediation – elimination of middlemen so companies

can sell their products at cheaper prices fasterTwo Strategies:• Dynamic Holiday Packaging and Merchant Pricing Model

Travel-Related Shopping & Financial Services:“Suitcase Tourism” – an activity where shopping has become

the main reason for travellingHongkong & Singapore (1995) – regional shopping centersDuty-Free Stores – retails stores that sell merchandise to

travelers, free of customs and taxes usually imposed by the host government

Souvenirs – important to tourists because of what it represent; serve as evidences

Money – essential requirement for travellingOther financial services:•Foreign Exchange•Credit Cards•Travelers Checks•Vouchers•Automated Teller Machines

Insurance – give a sense of security

Tourism Organizations:World Tourism Organization (WTO) – most widely recognized

and leading international organization since 1975,Madrid, Spain- 150 country members; 300 affiliate members

Pacific Asia Travel Association (PATA) – recognized authority in travel and tourism in the Asia Pacific region, 1951

European Travel Commission (ETC) – strategic alliance that provides for the collaboration between 34 European national tourism organizations, 1948, Brussels, Belgium

National Tourism Organization (NTO) – dominated by private sector: general administration of travel and tourism, planning and investment, research and statistics, vocational training, promotion

National Tourism Agency (NTA) – government entity

Sectoral Organizations – associated with a particular sector of tourism industry such as transport, accommodation, attractions, etc.

BENEFITS OF TOURISM1. Economic Benefits• Employment - largest industry in the world; 2020 –

around 1.5 billion arrivals• Revenue Generation – income• Foreign Exchange • Income Redistribution• Added Liquidity – money brought by visitors helps

increase the economic activities in the areas visited• Multiplier Effect – used to describe the total effect, both

direct and secondary, that an external income has on an economy

2. Social Benefits • Conservation of Cultural Heritage• Renewal of Cultural Pride• Understanding of One’s Country and Culture3. Environmental Benefits• Conservation of Important Natural Areas• Biological Conservation – giant pandas in China, whale

sharks in the Philippines, whales and dolphins (Hawaii, Alaska, Australia and Argentina)

• Improvement of Environmental Quality and Enhancement of the Environment – improved landscaping, efficient utilities (water supply, garbage)

• Improvement of Infrastructure – roads, airports, bridges, ports

• Increase in Environmental Awareness

HOW DO INDIVIDUALS & ORGANIZATIONS BENEFIT FROM TOURISM?1. Profit2. Commissions and Discounts

• Published Rate – pay directly w/ the facility or service provider

• Discounted or Contracted Rate – client deals with the intermediary

3. Service Charge• Explicit – dining and accommodation establishments• Implicit – included in tour packages• Add-ons – increased selling rate on top of the rate

agreed upon• Freebies – for a minimum number of paying clients,

suppliers would get free slots

•Ex-deals (Exchange Deals) – e.g. media advertisements, instead of paying cash → free use of units/facilities•Consultancy Charges

THE PROCESS OF DEVELOPING A TOURIST PRODUCT 1. Product Identification – determine first what the area or

the business has to offer2. Market Study – domestic and foreign market3. Product-Market Matching – type of traveler appropriate

for the tourism product4. Product-Activity Prioritization 5. Initial (Test) Marketing – marketing or creating awareness

for the product6. Product Testing – activity familiarization tour – client

suppliers, media, other personalities→ feedback7. Full Launch Marketing – reaching out to both clients and

intermediaries

HOW DO YOU DEVELOP A TOUR PROGRAM?1. Assess the tourism product2. Determine the market3. Determine the route4. Determine the service providers – accommodation,

dining, guides, etc.5. Identify the jump-off point or tourist service area – where

the good dining, accommodation and transportation are available

6. Identify the main destinations – most time is spent7. Identify the minor or optional destinations8. Identify the stop-over points – comfort rooms, etc.9. Determine the modes of transport10. Develop commentary – very good tour guide11. Compute the costs 12. Test run the program

HOW DO YOU MARKET A TOURIST PRODUCT?Basic Components of Tourism Marketing (Four P’s):1. Product – attraction, an activity, a tourist facility, or a

tourism service (guiding)2. Price – competitiveness3. Place – significant or insignificant4. Promotion5. People (The Market)

Identify Marketing Media :• Word of mouth• Advertisements – newspapers, magazines, TV, radio,

billboards• Publicity – journalists• Suppliers – travel agencies• Websites – cheapest; reach out to the global market

Identifying Marketing Media:

• E-mail – a word-of-mouth type of medium• Telemarketing – use of phone• Direct Mail – brochures, printed materials• Trade Fairs (Travel Marts)• Non- Traditional Methods – time share, events,

handicrafts/ souvenirs, books

Identify Marketing Costs & Available Budget – one of the most expensive components is marketing

Identify the Most Cost-effective Marketing:• Minimum Expense – publicity, word-of-mouth, website• Maximum Exposure – print and television advertising• Maximum Conversion (Niche Marketing) – sales calls, demonstrations, road shows, trade fairs