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