Paper 3 - Destination Marketing
3.1 Defining the tourism market.
3.1.1 Market research and analysis
Tourist receiving countries: countries which attract the highest number of international
visitors each year, and tend to be destinations with good tourism infrastructure. E.g: France,
USA, Spain, China, Italy and the UK.
Before a destination can be marketed or promoted, it is more important than tourism
authorities, and providers of visitor products or services within a destination, understand the
market in which the destination operates.
To understand the tourism market, there is a need to carry out an assessment of all aspects
of the market environment, using a broad range of market research techniques and market
analysis tools.
Market research: the systematic, objective collection and analysis of data about a particular
target market, competition and/ or environment.
The main purpose of market research and analysis for a destination is to identify specific
features of the tourism market in terms of who will visit, what will visitors expectation be
when they visit and which other destinations are appealing to the same visitors
(a) Aims of market research and market analysis To identify:
❖ The Market:
Variety of ways in which a tourism market can be determined. Traditionally tourism is
classified by purpose of visit (business, leisure, visiting friends and relatives). The
tourism market may be made up for both international and domestic visitors.
Research data may give us an indication of market size, that is, the total number of
visitors to a destination within a specific time frame, or reveal information about
market share.
Also possible to define the tourism market in terms of a destination´s maturity linked
to the stages of the Butler “Destination Life Cycle” model
❖ Customer needs and wants:
Key element is to understand exactly what it is that customers are looking for from
the products or services they purchase.
Customer wants are described as being specific that satisfies a need. Not actual
requirements, rather a person's preference for how a need might be fulfilled.
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, (Important: find out what customers need and want but also identify how many
tourists would be willing and able to visit a specific destination.
Customer needs: A basic human requirement. People require food, clothing, shelter,
safety, a sense of belonging and esteem.
Customer demand: Those wants backed by the customer's willingness and ability to
purchase particular products and services.
❖ The competition:
Competition between tourist destinations continues to grow with greater choice in
transportation and through advances in technology.
Market research is therefore to identify specific destinations that pose the most
competitive threat by appealing to the same customers and offering a similar tourist
experience.
Destinations will often carry out an analyst of the competition to determine its own
level of popularity and what they are lacking on.
❖ Travel trends:
(The waits in which patterns of travel have developed over a period of time. Travel
trends can be used to predict future changes)
Definition: the general direction in which something is developing or changing.
Data is collected to predict travel patterns in the future. Trends are measured over a
period of time, usually not less than a 5 year period (so that a meaningful comparison
of sets of data can be made).
❖ Customer behaviors
Generally defined as being concerned with all activities directly involved in obtaining,
consuming and disposing of products and services. (including decision processes
that precede and follow these actions).
Classification of tourists: (based on the theory that tourism combines the curiosity to
seek out new experiences with the need for the security of familiar reminders of
home (Cohen's typology)
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, Stanley Plog proposes a theory that associates the popularity of the destination to
the inherent personalities of travellers.:
Allocentric Type Psychocentric Mid-centric
➢ Person who seeks for new ➢ More conservatively ➢ Not particularly adventurous,
experiences and orientated. but they are receptive to new
adventure. ➢ Tend to be inhibited and experiences.
➢ Outgoing and self confident. non-adventurous.
➢ Prefers to fly and explore ➢ Prefer to revisit familiar
new and unusual areas. destinations. (relax and
➢ They enjoy meeting people know what types of food and
from foreign or different activities to expect).
cultures. ➢ Typical tourist
➢ They prefer good hotels and accommodation and eat at
food (not necessarily modern family-type restaurants.
and chain-type. ➢ Prefer heavily structured
➢ Would like to have the itinerary.
basics (transport and hotel) ➢ Safety and security are
➢ Prefer freedom (not very important
itinerary)
Important to research customer behaviour and understand it as it is crucial to the
decision-making process within tourist behaviour (marketing)
❖ Customer preferences for destinations:
Tourists' options are clearly influenced by a number of different factors. Preference implies
elements of personal taste, based on their own inherent set of values, attitudes and
expectations.
❖ Popularity of destinations:
There are many different measures of popularity through industry-based tourism awards,
customer opinion polls, total number of visitors or trips, and so on.
This helps inform marketing decisions for destinations aiming to increase or maintain their
popularity.
❖ Competition amongst destinations:
Competition in marketing terms is considered healthy, as it encourages tourism authorities to
look more closely at their product offerings and to find ways of becoming more attractive.
Every destination´s main aim is to gain competitive advantage over similar destinations and
to increase market share, because of the economic advantages it brings.
Rival´s Research is important to ensure you can offer something better at a lower price.
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, ❖ Stages of the butler's destination Life cycle.
(suggested that destinations would follow the series of evolutionary stages)
1. Exploration: 2. Involvement:
● Small number of tourists (usually made ● Some local residents begin to provide
their own travel arrangements) facilities for visitors.
● Only a few visitors come to the destination. ● Visitor number increase.
(backpackagers/independent). ● Local businesses start providing
● There are no charter flights or tourist
services.
services and cost (time and money) can
be high.
● Local population has accepted the
● No investment in tourist infrastructure. arrival of visitors.
● Economic, social, cultural and ● Destination starts to grow.
environmental impacts caused by tourism
will be minimal.
3. Development: 4. Consolidation:
● Local suppliers and providers of tourism ● Tourism now starts to dominate the
products and services become economic base of the area and
increasingly involved in the development
process.
begins to have an adverse effect
● Area becomes established as a tourism on the traditional economy and
destination with a defined market. lifestyle.
● visitors keep coming, more businesses ● local agricultural land is given over
enter the market. to resort development.
● Market is becoming profitable. ● But, no proportional increase in
● Package holidays begin.
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