Marketing Tourism Destinations

Marketing Tourism Marketing Tourism DestinationsDestinations

ObjectiveObjective: Introducing the meaning, : Introducing the meaning, applications and approaches in the applications and approaches in the marketing of tourism destinations. marketing of tourism destinations.

Marketing Tourism Marketing Tourism DestinationsDestinations

This chapter is about the marketing This chapter is about the marketing role of national tourism organizations, role of national tourism organizations, boards or offices commonly known as boards or offices commonly known as NTOs which is used to describe the NTOs which is used to describe the organization assigned by the state with organization assigned by the state with responsibility for tourism matters at responsibility for tourism matters at the national level. the national level.

It may be a full ministry or a It may be a full ministry or a directorate of general or a department directorate of general or a department or board. In NTOs, government support or board. In NTOs, government support in funding and official recognition is in funding and official recognition is normal in cases where the NTO is not normal in cases where the NTO is not part of the state. part of the state.

Principal Principal MMarketing arketing RRole ole of NTOsof NTOs

TThe principal functions of NTOs he principal functions of NTOs include;include;1.1.formulating and developing the formulating and developing the

tourist product or products of the tourist product or products of the destinationdestination

2.2.promoting them in appropriate marketspromoting them in appropriate markets The role of NTO is to create and The role of NTO is to create and

communicate appealing destination communicate appealing destination images and messages to prospective images and messages to prospective visitors, mainly through advertising, visitors, mainly through advertising, PR and print.PR and print.

For example, in Britain, there are For example, in Britain, there are four bodies which meets the definition four bodies which meets the definition of NTOs. They are the British Tourist of NTOs. They are the British Tourist Authority, the English Tourist Authority, the English Tourist Authority, the Scottish Tourist Board, Authority, the Scottish Tourist Board, and the Wales Tourist Board. and the Wales Tourist Board.

British Tourist Authority is British Tourist Authority is responsible form the marketing Britain responsible form the marketing Britain overseas. The tourist boards for overseas. The tourist boards for England, Scotland, and Wales are each England, Scotland, and Wales are each responsible for the development and responsible for the development and promotion of tourism in their areas. promotion of tourism in their areas.

In the USA, at federal level, the NTO In the USA, at federal level, the NTO is the United States Travel and is the United States Travel and Tourism Administration which is Tourism Administration which is responsible mainly for the promotion responsible mainly for the promotion of tourism into the USA. of tourism into the USA.

In addition, most of the US state In addition, most of the US state governments have their own tourist governments have their own tourist offices, which mainly does the offices, which mainly does the promotion of US domestic tourism into promotion of US domestic tourism into their areas. their areas.

All these national and state NTOs act All these national and state NTOs act as policy advisers for their as policy advisers for their governments. All have established governments. All have established formal and informal links for formal and informal links for consultation and joint action with the consultation and joint action with the tourism industry in their countries or tourism industry in their countries or regions.regions.

Around the world there are some 200 Around the world there are some 200 NTOs of different sizes and NTOs of different sizes and organizational patterns. organizational patterns.

Nearly all of them are engaged in one Nearly all of them are engaged in one or more aspects of destination or more aspects of destination promotion. Most of the promotional promotion. Most of the promotional effort organized by these NTOs is aimed effort organized by these NTOs is aimed at international markets.at international markets.

Research showed that larger branch Research showed that larger branch netwrorks of NTOs such as those netwrorks of NTOs such as those supported by Britain, France or Greece, supported by Britain, France or Greece, have over 30 offices in the main have over 30 offices in the main countries form which they receive their countries form which they receive their visitors.visitors.

The yearly expenditure on marketing The yearly expenditure on marketing international tourism of the NTOs is international tourism of the NTOs is between 1 million Euros and 1-10 between 1 million Euros and 1-10 million Euros. The average marketing million Euros. The average marketing budget of NTOs is around 0.003% of budget of NTOs is around 0.003% of their international tourism receipts. their international tourism receipts.

Destinations with smallest budget Destinations with smallest budget include island states, small South include island states, small South American and former East European American and former East European countries; medium range include countries; medium range include larger South American, larger former larger South American, larger former Eastern European countries and Eastern European countries and smaller western developed countries; smaller western developed countries; OECD countries and major world OECD countries and major world tourism countries have the largest tourism countries have the largest budget. budget.

Strategies Applied by Strategies Applied by NTOs NTOs

Basically, in marketing a country as Basically, in marketing a country as a destination, the role of NTOs are;a destination, the role of NTOs are;1.1.to reach prospective visitors with the to reach prospective visitors with the

help of the promotional mix by help of the promotional mix by increasing awareness and influencing increasing awareness and influencing their attitudes and purchasing behavior their attitudes and purchasing behavior - - promotional strategy,promotional strategy,

2.2.to facilitate the marketing activities to facilitate the marketing activities of mainly private sector operators of of mainly private sector operators of the tourism industry in the promotion the tourism industry in the promotion of their own products - of their own products - facilitation facilitation strategy. strategy.

A promotional strategyA promotional strategy The strategy an NTO adopts in The strategy an NTO adopts in practice should change according to practice should change according to the stage of the development a the stage of the development a country’s tourism. country’s tourism.

Where destinations are largely Where destinations are largely unknown in the markets they seek to unknown in the markets they seek to promote, where existing tourism flows promote, where existing tourism flows are small, and where the tourism are small, and where the tourism industry within the country is mainly industry within the country is mainly weak, the NTO has to take the leading weak, the NTO has to take the leading role in playing a major role in role in playing a major role in promoting its destination’s products. promoting its destination’s products.

To be effective, the promotional To be effective, the promotional campaigns must be of sufficient weight campaigns must be of sufficient weight and impact to create the necessary and impact to create the necessary numbers of potential buyers. But if numbers of potential buyers. But if budgets are not adequate for the task, budgets are not adequate for the task, expenditure on an image-creating expenditure on an image-creating strategy may in practice be waste of strategy may in practice be waste of money. Generally, the available money. Generally, the available budgets is not adequate to engage budgets is not adequate to engage effectively in image campaigns in effectively in image campaigns in several markets. several markets.

The marketing support of international The marketing support of international operators such as airlines, hotel operators such as airlines, hotel chains and tour operators is essential chains and tour operators is essential for success. for success.

For better-known, well-For better-known, well-established destinations such established destinations such as Britain and the USA, the NTO as Britain and the USA, the NTO should focus more of its should focus more of its expenditure on the strategy of expenditure on the strategy of support and facilitation and support and facilitation and less on buying media space for less on buying media space for general advertising.general advertising.

A facilitation strategyA facilitation strategy This strategy creates marketing bridges This strategy creates marketing bridges between an NTO and the individual between an NTO and the individual operators in the travel and tourism operators in the travel and tourism industry. Under this strategy, the industry. Under this strategy, the basic functions of NTOs are;basic functions of NTOs are; Establishing promotional priorities for Establishing promotional priorities for specific markets and segments.specific markets and segments.

Coordinating the elements of tourism Coordinating the elements of tourism products.products.

Providing support for new or growth Providing support for new or growth products.products.

Creating cooperative marketing Creating cooperative marketing campaigns accessible especially campaigns accessible especially for the hundreds of small for the hundreds of small businesses, that would otherwise businesses, that would otherwise be unable to participate in be unable to participate in marketing on a national or marketing on a national or international scale.international scale.

These strategies bring the NTO These strategies bring the NTO and its commercial sector and its commercial sector together in joint operations.together in joint operations.

Forms of facilitation by Forms of facilitation by NTOsNTOs

Some of the most important Some of the most important facilitation processes used by NTOs facilitation processes used by NTOs are as follows;are as follows; Flow of research dataFlow of research data; by providing a ; by providing a regular, user-friendly flow of research regular, user-friendly flow of research data to the tourism industry (e.g. short data to the tourism industry (e.g. short reports on market trends), an NTO may reports on market trends), an NTO may make valuable inputs to the marketing make valuable inputs to the marketing planning processes of individual planning processes of individual businesses in all sectors. These businesses in all sectors. These research surveys is more cost effective.research surveys is more cost effective.

Representations in markets of originRepresentations in markets of origin; by ; by establishing a network of offices in establishing a network of offices in foreign countries, an NTO can create and foreign countries, an NTO can create and maintain vital travel trade contacts, and maintain vital travel trade contacts, and act as a point of distribution for the act as a point of distribution for the destination’s products. destination’s products.

Organization of workshops and trade showsOrganization of workshops and trade shows; ; NTOs make arrangements where suppliers of NTOs make arrangements where suppliers of tourist products may meet with tourist products may meet with prospective buyers at relatively low cost. prospective buyers at relatively low cost. Either in the market of origin or at the Either in the market of origin or at the destination, individual hoteliers, destination, individual hoteliers, attractions, suppliers of conference attractions, suppliers of conference facilities may be able to make contact and facilities may be able to make contact and discuss business in one or two days of discuss business in one or two days of intensive meetings which on an individual intensive meetings which on an individual basis could take weeks to organize.basis could take weeks to organize.

Familiarization tripsFamiliarization trips; by arranging visits for ; by arranging visits for the selected foreign travel agents, the selected foreign travel agents, journalists and tour operators to the journalists and tour operators to the destination, NTOs can increase the business destination, NTOs can increase the business between the travel trade in markets of origin between the travel trade in markets of origin and destination products. They are also a and destination products. They are also a method of improving the information available method of improving the information available to customers at key retail outlets and gaining to customers at key retail outlets and gaining better display space at point of sale. The better display space at point of sale. The trips also serve an important PR role and trips also serve an important PR role and offer many opportunities for communicating key offer many opportunities for communicating key messages to influence people.messages to influence people.

Travel trade manualsTravel trade manuals; it is customary for NTOs ; it is customary for NTOs to produce one or more trade manuals which to produce one or more trade manuals which serve as references and guides for use by the serve as references and guides for use by the travel trade. A manual lists the details of travel trade. A manual lists the details of all operators and their facilities, and all operators and their facilities, and prices. These manuals provide access to prices. These manuals provide access to foreign markets at low cost. foreign markets at low cost.

Support with literature production and Support with literature production and distributiondistribution; b; because printed materials ecause printed materials are so important in tourism marketing, are so important in tourism marketing, some NTOs produce “shells” for use by some NTOs produce “shells” for use by small businesses. These are normally full small businesses. These are normally full color leaflets that contain photographs color leaflets that contain photographs and empty spaces that may be overprinted and empty spaces that may be overprinted by an operator’s logo and product by an operator’s logo and product messages. messages.

Many NTOs sell advertising space in their Many NTOs sell advertising space in their range of brochures which they distribute range of brochures which they distribute overseas. These brochures are very cost overseas. These brochures are very cost effective advertising media which small effective advertising media which small and medium sized businesses can reach and medium sized businesses can reach international markets.international markets.

Information and reservation systemsInformation and reservation systems; by ; by using new computerized information using new computerized information technology, NTOs may assist sectors of their technology, NTOs may assist sectors of their tourism industry by establishing central tourism industry by establishing central reservation systems in support of the reservation systems in support of the brochures. Travel agents and other brochures. Travel agents and other distributors who can access products rapidly distributors who can access products rapidly through one central reservation operation through one central reservation operation are likely to find this the only way to deal are likely to find this the only way to deal cost-effectively with small businesses. cost-effectively with small businesses.

Support for new productsSupport for new products; ; NTO can help new NTO can help new products to emerge and establish themselves products to emerge and establish themselves in their markets in the initial 2 to 3 years in their markets in the initial 2 to 3 years after their launch. Smaller businesses are after their launch. Smaller businesses are usually unable to afford the start-up costs usually unable to afford the start-up costs of national and international marketing. of national and international marketing.

Consumer assistance and protectionConsumer assistance and protection; ; the marketing task does not end with the marketing task does not end with the sale of a product. It extends the sale of a product. It extends into concern for customer satisfaction into concern for customer satisfaction with the service delivery. NTO can with the service delivery. NTO can define product quality standards in define product quality standards in consultation with operators in tourism consultation with operators in tourism industry. These may include minimum industry. These may include minimum levels of equipment to be provided in levels of equipment to be provided in accommodation, and codes of good accommodation, and codes of good practice, e.g. in giving buyers full practice, e.g. in giving buyers full information in brochures. These are information in brochures. These are done in order to ensure consumer done in order to ensure consumer satisfaction and protection.satisfaction and protection.

Destination Positioning Destination Positioning Themes, Branding, Images Themes, Branding, Images

and Conceptsand Concepts Whatever is the main strategy, Whatever is the main strategy, promotion or facilitation, for promotion or facilitation, for marketing destinations, NTOs need marketing destinations, NTOs need to choose the single-minded to choose the single-minded comunication propositions (messages comunication propositions (messages and symbols) that identify and and symbols) that identify and position or brandposition or brand their countries their countries in the minds of prospective in the minds of prospective visitors to differentiate them from visitors to differentiate them from the others. the others.

Amazing Thailand, Incredible India, Amazing Thailand, Incredible India, Turkey: Mediterranean and more, Turkey: Mediterranean and more, Croatia: The Mediterranean as it once Croatia: The Mediterranean as it once was; Greece: Live your myth in Greecewas; Greece: Live your myth in Greece are examples designed to identify are examples designed to identify destinations with unique destinations with unique propositions. propositions.

To be successful, such propositions To be successful, such propositions must be;must be; Based on genuine product values and Based on genuine product values and attributes that can be delivered and attributes that can be delivered and experienced and that visitors recognize experienced and that visitors recognize as authentic, not fake.as authentic, not fake.

Readily understood by customers at the Readily understood by customers at the point of purchase.point of purchase.

Involve at least the leading players in Involve at least the leading players in the commercial sector.the commercial sector.

Incorporated into the promotional Incorporated into the promotional efforts of a country’s regions and efforts of a country’s regions and resorts. resorts.

Sustained over several years if they Sustained over several years if they are to overcome the communication are to overcome the communication inertia and barriers.inertia and barriers.

Systematically exploited in a co-Systematically exploited in a co-ordinateordinatedd range of sales-promotion and range of sales-promotion and customer-servicing techniques designed customer-servicing techniques designed to reach visitors on arrival at the to reach visitors on arrival at the destination as well as prospective destination as well as prospective visitors in countries of origin. visitors in countries of origin.

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