1. Destination Marketing
Marketing for Hospitality and Tourism
Kotler, Bowen and Makens
Destination Marketing
Chapter 17

2. Learning Objectives Discuss the benefits of tourism.
Explain tourism strategies and different options for creating and investing in tourism attractions.
Understand how to segment and identify visitor segments.
Explain how central tourist agencies are organized.

3. Benefits of Tourism Direct Employment
Support Industries and Professions
Multiplier Effect
State and Local Tax Revenues
Tourists travel to destinations, places with some form of actual or perceived boundary, such as the physical boundary of an island, political boundaries, or even market-created boundaries
Benefits of Tourism
Tourism’s most visible benefit is direct employment in hotels, restaurants, retail establishments, and transportation
A second but less visible benefit consists of support industries and professions, many of which pay considerably more than the visible employment opportunities
The third benefit of tourism is the multiplier effect as tourist expenditures are recycled through the local economy
Tourism’s fourth benefit is state and local revenues derived from taxes on tourism
Tourism helps shift the tax burden to nonresidents
Tourism also yields a fifth benefit – it stimulates exports of locally made products
Exports of Locally Made Products

4. Industry & Community Cooperation Carbon-Neutral Vacations
Sustainable Tourism
Sustainable Tourism
(Ecotourism)
Industry & Community Cooperation
Carbon-Neutral Vacations
“Tourism planners need to take into account the capacity of a location’s environment to support all of the area’s residents, not just tourists. Without such planning, a destination can be damaged to the point that travelers will stay away.”
From a marketing standpoint, sustainable tourism can mean giving up current revenues from tourism by limiting capacity to ensure there will be demand for tourism in the future
Sustainable tourism is a concept of tourism management that anticipates and prevents problems that occur when carrying capacity is exceeded
Ecotourism is one of the fastest growing niche markets in the travel industry and generally viewed as representing sustainable tourism
Modified Environments: Ecotourism Subsets
Today, members of the tourism industry such as resorts, ski lodges, golf courses, and city centers have developed habitats on their grounds that encourage wildlife
Rather than provide neatly manicured lawns and plants that provide no food value to animals, some resorts are encouraging natural areas, nesting sites, and artificial reefs
Industry and Community Cooperation
Successful long-run tourism destinations require cooperation in planning among constituencies
Carbon-Neutral Vacations
As the number of concerns about global warming increase, the demand for carbon-neutral vacations will also increase

5. Events and Attractions
Sports Events
Events
Biking & Marathon Events
Waterfront Attractions
Attractions
Casinos as Attractions
Events and attractions are the two primary strategies used by tourist destinations to attract visitors
Event Marketing
Events that attract a desired market and harmoniously fit with a community’s culture can provide beneficial results, particularly if the event regularly reoccurs over a period of years
Sports Events
Many communities view sports events as attractive ways to bring visitors to their destinations. These events are often enjoyed by both visitors and residents
Biking and Marathon Events
Two very popular sports events are biking and marathons
Attractions
Attractions may be natural such as Niagara Falls or The Scottish Highlands or manufactured such as The Shopping Areas of Buckingham Palace, Hong Kong, or the Vatican
Waterfront Attractions
Throughout much of the world, cities and towns have finally realized the tremendous value of their river, lake, and ocean waterfronts
The development of areas of cities such as waterfronts for multipurpose living is an extension of the natural attraction that cities have always held for travelers
Casinos as Attractions
Research has shown that casinos do not take business away from local restaurants and they do create jobs
To maximize its benefits, gaming should be incorporated into a strategic plan for the area
From a tourism perspective gaming works best when it is part of several tourism attractions for the area, not the only tourism attraction for the area
Stopover Tourism
Many visitor destinations are in fact only stopover destinations for travelers on their way elsewhere
Stopover Tourism

6. Psychological Determinants of Demand
Prestige
Escape
Sexual
Opportunity
Education
Social
Interaction
Family
Bonding
Relaxation
Self-
Discovery
The decision to spend one’s disposable income on travel versus furniture, a boat, or other purchase alternatives involves important psychological determinants:
Prestige
A level of prestige has always been attached to travelers, particularly long-distance travelers
Escape
The desire to escape momentarily from the day-to-day rhythm of one’s life is a basic human need
Sexual opportunity
This has both a positive and an ugly side
Education
Travel in and of itself has historically been viewed as broadening
Social interaction
The opportunity to meet and interact with people previously unknown is a powerful motivator
Family bonding
Family reunions have become an important market segment for many in the travel industry
In an era of intense pressure on the family, such as two careers, there is a strong need to refocus priorities and bond as a family
Relaxation
Observers of human and animal conduct sometimes state that the human being is either alone or among a limited number of species that continue to play into adulthood
Self-discovery
For many, travel offers the opportunity to “find oneself.”

7. Other Types of Tourism Types of Tourism Agritourism Space Tourism
Hiking & Pilgrimages
Volunteer Vacationing
Medical Tourism
Genealogical Tourism
Agritourism
In an era in which most people in industrialized nations are urban or suburban dwellers, farm and ranch tourism has become increasingly important
Space Tourism
A number of private companies have been formed to provide trips into space for tourists
NASA is preparing for moon tourism, including developing plans to prevent looting of the six areas were manned space missions landed on the moon between 1969 and 1972
Under its guidelines people can only walk within 246 feet of the first site were Neil Armstrong first walked on the moon
Multi-Day Hiking and Religious Pilgrimages
A huge and growing market exists for multi-day trekking (hiking)
In some cases, hiking has a religious basis such as in pilgrimages to significant religious sites
Trails are available for special-interest hikers with cultural, scientific, religious, or gastronomical interests such as wine tours
Volunteer Vacationing
This form of tourism is also called purpose-driven tourism
Thousands of individuals increasingly choose to spend their vacation period assisting others, particularly in underdeveloped nations
Medical Tourism
Medical tourism is one of the fastest growing and most lucrative segments of tourism, as people travel internationally to gain access to less expensive medical care
The growth in medical tourism is driven by four main factors
Low cost
Long waiting lines in national healthcare services
Accessibility to procedures and treatments
Opportunity for a vacation and privacy
Medical tourism is being blended with the opportunity for a vacation
Some insurance companies in North America are offering their customers, who qualify for healthcare, the option to have it done at an international location
As an incentive, they will waive the deductable and co-pay, as well as provide airfare and lodging during and after treatment
Genealogical Tourism
The interest in knowing more about one’s ancestors has grown substantially in recent years
Many people plan vacations to visit genealogical research sites

8. Classification of Visitor Segments
Group-Inclusive Tour (GIT)
Independent Traveler (IT)
Several classifications have been used to describe different visitor destination segments
The most commonly used classifications are based on whether the tourist travels with a group or independently
The common terms are group-inclusive tour (GIT) and independent traveler (IT)
Organized mass tourists
This corresponds to the GIT
These people have little or no influence over their travel experience other than to purchase one package or another
They commonly travel in a group, view the destination through the windows of a tour bus, and remain in preselected hotels
Individual mass tourists
This corresponds to the IT
These people are similar to the previous category but have somewhat more control over their itinerary (See Slide 9)

9. Individual Mass Tourists
Explorers
Drifters
Visiting Friends/Relatives
Business Travelers
Pleasure Travelers
Business & Pleasure Travelers
Tag-Along Visitors
Explorers
These people fall in the IT classification
They plan their own itineraries and make their own reservations
Drifters
These people, the backpacker group, seldom, if ever, are found in a traditional hotel
They may stay at youth hostels with friends or camp out
Visiting friends/relatives
VFR, as the name suggests, are people that stay in the homes of friends or relatives
For this reason, they are often discounted as important tourists
They may not spend money on lodging, but they do spend on dining, attending attractions/events, and shopping
Business travelers
This often encompasses any form of business including conventions, trade shows, job seeking, and many other reasons
Pleasure travel
This too is a very wide and all-encompassing classification
It may be of limited use without further segmentation
Business and pleasure travelers
Many convention and business travelers plan to incorporate a period of relaxation prior to or after their business
Tag-along visitors
Members of the family are common “tag-along” visitors
The presence of tag-along children has created a subindustry of child care and entertainment
Grief travel
Airlines offer special fares for family and friends attending funeral services
This segment will increase in importance as society ages
Education and religious travel
This broad category includes students, those on a pilgrimage, missionaries, and a host of others
Pass-through tourists
These are extremely important visitors to states such as Kansas and Nebraska and to cities in Texas that serve as convenient rest or overnight stopping areas
Grief Travelers
Education and Religious Travelers
Pass-Through Tourists

10. Functions of National Tourism Organizations
Flow of Research Data
Representation in Markets
Organization of Workshops & Trade Shows
Familiarization Trips
Participation in Joint Marketing Schemes
Countries and states usually have government or quasi-government agencies that market destination tourism. On the national level, these are referred to as national tourism organizations (NTOs)
An NTO has two marketing tasks
The NTO can formulate and develop the tourist product or products of the destination
It can promote them in appropriate markets
The NTO is responsible for the following functions:
Flow of research data
The NTO coordinates tourism research for the area
Representation in markets
The NTO often has offices in major markets
These promote the country within the market
Organization of workshops and trade shows
The NTO facilitates the interaction of tourism with members of the distribution channels, such as travel agents and wholesalers
Familiarization trips
The NTO develops familiarization trips for key members of the distribution channel and travel writers
Participation in joint marketing schemes
Some NTOs provide cooperative advertising support to help members promote to selected markets
Support for new or small businesses
NTOs may provide support for new products and small businesses that are important to the overall tourism of the area
Consumer assistance and protection
NTOs assist the consumer by providing product information
General education
NTOs conduct conferences and courses to educate travel industry providers from their nation to understand the needs of foreign markets
Support for New or Small Businesses
Customer Assistance & Protection
General Education

11. Environmental & Natural Resources Government Operations
Typical Tourism Goals
Economic
Consumer
Environmental & Natural Resources
Government Operations
Goals provide direction to the organization. The following are typical tourism goals:
Economic
To optimize the contribution of tourism and recreation to economic prosperity, full employment, and regional economic development
Consumer
To make the opportunity for and the benefits of travel and recreation universally acceptable to residents and visitors and to contribute to the personal growth and education of the population and encourage their appreciation of the geography, history, and ethnic diversity of the region
Environmental and natural resources
To protect and preserve the historic and cultural foundations of the region as a living part of community life and development and to ensure future generations an opportunity to enjoy the rich heritage of the region, as well as to ensure the compatibility of tourism, recreational, and activity policies with other regional and national interests in energy development and conservation, environmental protection, and judicious use of natural resources
Government operations
To harmonize to the maximum extent possible all government-related activities supporting tourism and recreation; to support the needs of the general public and the public and private sectors of industries involved with tourism and recreation; and to take a leadership role with all those concerned with tourism, recreation, and cultural heritage conservation

12. Key Terms
Agritourism Agriculture-based tourism that includes farms, ranches, and wineries. It provides rural areas with a means to attract tourists.
Allocentrics Persons with a need for new experiences, such as backpackers and explorers.
Destinations Places with some form of actual or perceived boundary, such as the physical boundary of an island, political boundaries, or even market- created boundaries.
Destination marketing organization (DMO) A group that promotes a specific destination. Often a local convention and visitors bureau (CVB) serves as the DMO.
Familiarization trip (Fam trip) A trip where travel agents or others who can send business to a tourist destination attraction, cruise, or hotel are invited to visit at a low cost or no cost.
Infrastructure The system according to which a company, organization, or other body is organized at the most basic level.
Macrodestinations Destinations such as the United States that contain thousands of microdestinations, including regions, states, cities, towns, and visitor destinations within a town.

13. Key Terms (cont.)
Medical tourism One of the fastest growing and most lucrative tourism markets. The tourists spend a large amount on medical treatment, stay in top hotels, and often travel around the country after their surgery.
Multiplier effect Tourist expenditures that are recycled through the local economy, being spent and spent again.
National tourist organizations (NTOs) A national government or quasi-government agency that markets destination tourism.
Psychocentrics Persons who do not desire change when they travel. They like to visit nonthreatening places and stay in familiar surroundings.
Tourism A stay of one or more nights away from home for holidays, visits to friends or relatives, business conferences, or any other purpose, except such things as boarding, education, or semi-permanent employment.