Final Exam Tourism Management
Peaks and valleys of demand
Daily, weekly, seasonal, and long-term fluctuations
Florida Green Lodging Program
Designates and recognizes lodging properties that make a commitment to conserve and protect Florida's natural resources
Two main raiting systems
Diamond AAA & Star Forbes
How is Propensity related to demand
Directly related
What is Ecotourism?
Emphasizes the natural environment, or some component thereof, as the focus of attraction, with associated cultural resources being a secondary attraction
Airlines economic benefit
Employment worldwide transportation passengers freight
The two main cost components:
Fixed costs and Variable costs
Airline Industry Challenges
Fule Prices Bad economy less demand weather labor (strikes) Since 9/11 (terrorism, fear of flying, attempts)
Pearce's Travel Needs Model based on
Hierarchy of needs, more emphasis on changing patterns of motives
What are the trends involving travel agents?
Home-based sellers and independents are increasing, adding the personal touch
What should businesses do if supply exceeds demand.
Increase demand!: Product modification or diversification Alteration or strengthening of distribution channels Identification of new or alternative sources of demand Pricing discounts Redesigned promotional campaigns Reduce supply Redistribute supply
2. Built Environment
Infrastructure: Ground and service installations , Should be planned with a long-term viewpoint Superstructure: Design in conformance with local architecture Interior design should be stimulating, attractive, and comfortable
Four characteristics of the tourism product:
Intangibility, Heterogeneity/variability, Inseparability, and Perishability
How is Resistance related to demand
Inversely related
The Exploration Stage
Irregular visitation patterns The so-called 'tourism industry' is nonexistent
Purposeful Cultural Tourist
Learning about the other's culture or heritage is a major reason for visiting a destination. Deep cultural experience.
Sightseeing Cultural Tourist
Learning about the other's culture or heritage is a major reason for visiting but the experience is more shallow and entertainment-oriented.
Dangers and Limitations of Ecotourism
Locals need to be involved Lack of scientific knowledge of visitor impacts on remote areas, nature areas, wilderness areas, and other undisturbed natural areasControl issue Control issue
Tourists
MUST stay overnight!
4. Spirit of Hospitality and Cultural Resources
Making the tourist/guest feel welcome! Hospitality employees Local residents
Inbound Tourism
Non residents to your country (UK-->USA)
Two Variables
Number of tourist arrivals (y axis) Time (x axis)
Vital demand data
Number of visitors Means of transportation used by visitors to arrive at destination Length of stay and type of accommodations used Amount of money spent by visitors
What is the certification that lodging properties can receive and be recognized if they make a commitment to conserve and protect Florida's natural resources?
PALM Certification
Fluctuations in demand in the short run (seasonality) results in
Peaks and valleys of demand
Benefits and Importance of Ecotourism
Provides jobs and income for local people Makes possible funds for purchasing and improving protected or natural areas to attract more ecotourists in the future Provides environmental education for visitors Encourages heritage and environmental preservation and enhancement
The Development Stage
Rapid tourism growth A well-defined tourist market area with heavy advertisement in tourist-generating areas
What should businesses do if demand exceeds supply.
Reduce demand! Increase price De-marketing Increase supply Expand current capacity Redistribute demand Transfer demand from times of excess use to times of low demand
1. Natural Resources
Seasonal variations, , Location , labor and management
Comments on the model?
Since 1980, the model has been empirically examined in at least 50 studies In most of the researches, a similar pattern to the model was found Nonetheless, there are cases that the model did not reflect what happened in practice There are cases that strong local involvement kept even in the later stages Issues regarding identifying turning points, stages, and length of stages
Convention and Visitors Bureaus
(CVBs) & (DMOs)
Destination Management Companies
(DMCs)
What are the he Life Cycle Model stages?
- Exploration - Involvement - Development - Consolidation - Stagnation - Post-Stagnation (i.e., Decline, Rejuvenation, or Stabilization)
What were the best indicators to differentiate cultural tourists from other tourists?
-Demographics are not the best indicators -The best indicators were cultural distance, travel motives, and the amount of learning hoped to gain
and the consequences of that?
-Fragmented, heterogeneous and complex: Consistency of reproduction -Perishable: Supplier has incentive to lower price, and cannot store to prepare for peak times -Impact of natural, political and social environments is very important (e.g. weather) -Priced and un-priced goods: National/destination product rather than firm; everything is connected
What are the four tourism supply components?
1. Natural Resources 2. Built Environment 3. Operating Sectors 4. Spirit of Hospitality and Cultural Resources
4 different tourist perspectives
1. Tourist 2. Businesses providing tourist goods and services 3. Government of the host community 4. Host community
What is Propensity?
A person's predisposition to travel
3. Operating Sectors
Accommodations sector Transportation sector
Most meaningful measure of demand?
Amount spent!
Stanley Plog
Bell curve, Psycho-centric (dependable) VS Allocentrics (venture) - said most are allocentrics
Conclusions of the model
Better applied at smaller destination scales (rather than at the country-level) It must be emphasized that not all areas experience the stages of the cycle as clearly as others The assumption that tourist areas will always remain tourist areas and be attractive is false A change in the attitude is required from tourist planners, managers and entrepreneurs Awareness to the area's carrying capacity and appropriate management are required
Pearce's Travel Needs Model
Career Model
What are the nature of the tourism product
Composite good- A combination of both private goods and public goods Perishable good The presence of consumer is required for the production of the good
Key players in the industry
Convention and Visitors Bureaus (CVBs) (DMOs) Destination Management Companies (DMCs) Meeting Planners Convention Centers Specialized Services Hotels and other venues
CLIA
Cruise lines international association
Only agency representing cruise lines?
Cruise lines international association (CLIA)
Incidental Cultural Tourist
Cultural tourism has no meaningful role in the destination decision-making process. Will participate in cultural tourism activities but have shallow experience
Serendipitous Cultural Tourist
Cultural tourism plays little or no role in the decision to visit a destination but ends up having a deep experience.
Casual Cultural Tourist
Cultural tourism reasons play a limited role in the decision to visit a destination and the experience is shallow.
S-curve
Slope of the curve represents the rate of increase/change over time
What method is believed to produce the most reliable estimates? (the best method of forecasting tourism demand)
The Delphi method is believed to produce the most reliable estimates in any given situation.
The Decline Stage
The area is not able to compete with newer attractions and faces a declining market Tourist facilities are turned for non-tourist purposes, such as condominiums, apartments or retirement homes
Global Distribution Systems (GDS)
The large and sophisticated electronic travel reservation systems
What is the Life Cycle Model about
The most widely used framework to interpret tourism development and decline of a destination
The Stagnation Stage
The peak number of visitors have been reached Capacity level has been exceeded, with attendant environmental, social, and economic problems
What is demand in tourism?
The quantity/amount of a product or service that people are willing and able to buy at a specific price and time.
The Consolidation Stage
The rate of increase in number of visitors declines, although the total number still increase A major part of the area's economy is tied to tourism The level of tourism development begins to exceed
What is Resistance?
The relative attractiveness of various destinations
Current Project UNWTO
The slik road
Is there a uniform worldwide classification for hotels?
There is NO uniform worldwide classification
The Rejuvenation Stage
This stage can occur only with a complete change in the attractions on which tourism is based: -Addition of man-made attractions -Taking advantage of previously untapped natural resources
UNWTO Objective
To promote and develop tourism worldwide (particularly developing countries)
What is Sustainable Tourism?
Tourism that meets the needs of present generations without compromising the ability of future generations to meet their own needs
Domestic Tourism
Traveling within the United States
If you have only one type of data, such as visitor arrivals to Orlando, you should use
Trend Analysis.
Projection Methodology
Trend analysis, simple regression, multiple regression, computer simulations and models, and Delphi method
Outbound Tourism
U.S citizens traveling outside (USA-->UK)
UNWTO stands for?
United Nations World Tourism Orginization
The Involvement Stage
Visitor arrivals begin to increase slowly Some local residents begin to provide facilities primarily or even exclusively for visitors
Measures of actual demand
Visitor arrivals, visitor-days or visitor-nights, amount spent
Decline in travel agents?
Yes, but not for cruises. People are booking everything online
Same-day Visitors
come for one day, and then leave. "excursionist"
4 Urgent transportation problems to consider
congestion safety & security environmental damages seasonality
Pull Factors:
distance, accessibility, marketing, image
Where do the above factors and information search have influence in the process
first two stages, when they are looking at alterative choices
Tourism businesses have a relatively high proportion of
fixed costs
Global Distribution Systems (GDS) responsible for
for innovating e-ticketing, travel e-commerce, graphic seat selection, lowest-fare search capability, and the ability to view different fares on one screen
2. By Ownership
government, quasi government, or private
Push Factors:
income, available time, family size, make you want to travel, extra money, extra time
5. By Motive
profit or non-profit
Demand to a destination is a function of the person's
propensity to travel and the reciprocal of the resistance of the link between origin and destination areas D = ƒ(propensity, resistance)
3. By Function (type of activity)
regulators, suppliers, marketers, developers, consultants, researchers, educators, publishers..ect
What is carrying capacity?
the maximum population size of the species that the environment can sustain indefinitely, given the food, habitat, water and other necessities available in the environment.
Three key considerations in the decision relative to the means of travel
time available distance to be traveled cost
World Tourism Day Purpose
to foster awareness among the international community of the importance of tourism and its social, cultural, political, and economic value
4. By Industry
transportation, lodging, attractions, recreation, travel agents
UNWTO definition of Tourism
traveling and staying outside their usual environment for not more than one consecutive year for leisure, business, or other purposes