Lecture responsible tourism unit 2 responsible tourism product development

By the end of the unit participants will be able to:• Explain the importance of conducting a product market analysis • Identify methods of collecting market information • Explain how to

TOURISM PRODUCT DEVELOPMENT

By the end of the unit participants will be able to:

• Explain the importance of conducting a product market

analysis

• Identify methods of collecting market information

• Explain how to conduct a strategic market assessment

• Explain how to conduct a product analysis

• Explain how to match markets with product development

opportunities and development objectives

• Explain how to undertake a Responsible Tourism product

assessment

• List ways to implement stakeholder coordination and

develop a strategic action plan

1 Understanding (responsible) tourism products

2 Developing tourism products that are commercially viable

3 Matching markets with product development opportunities and development objectives

4 Assessing the sustainability

of tourism products

5 Stakeholder co-ordination and collaboration

6 Responsible tourism product development strategy and action planning

(RESPONSIBLE) TOURISM PRODUCTS

Picture source: http://www.flickr.com/photos/cyborgwardt/1393338765/

NARROW DEFINITION What the tourist buys

WIDER DEFINITION

The combination of what the

tourist does at the destination

and the services used

Experiential factor Emotional factor Physical factor

Types of tourism products

products

Types of tourism products in Vietnam

Others?

Picture sources: http://www.flickr.com/photos/barbararich/96982409/; http://www.flickr.com/photos/chericbaker/4446189110/; http://www.flickr.com/photos/matthieu-aubry/1242936011; http://www.flickr.com/photos/lintmachine/2386330877/; http://commons.wikimedia.org/wiki/File:VietnamCombatArtTheLadiesbyDavidFairringtonCATVI1968.jpg; http://en.wikipedia.org/wiki/M%E1%BB%B9_S%C6%A1n; http://en.wikipedia.org/wiki/Vietnamese_cuisine; http://commons.wikimedia.org/wiki/File:Hiking_at_highest_peak_in_Kosova_-_Gjeravica.JPG;

http://en.wikipedia.org/wiki/Sea_kayak; http://pixabay.com/en/diver-light-diving-silhouette-sea-108881/; http://www.flickr.com/photos/whltravel/4303957860/;

http://www.flickr.com/photos/agapbulusan/2418856362/; http://en.wikipedia.org/wiki/Hmong_people

Supporting products Circuits

Festivals and events Flagship products

TOURISM DESTINATION

Unique characteristics of tourism products

• There is no transfer of ownership

Composite product

• Demand is affected by external influences

Unstable demand

• Cannot be brought to the consumer

Fixed supply

• Ownership remains with provider

Absence of ownership

• Tourism varies in standard and quality over time

Characteristics of responsible tourism products

and services that form tourism experiences and are specifically designed to be:

economically sustainable

Examples of responsible tourism products

Responsible tourism destination

Madagascar – contains a range of ecological wonders;

Is dedicated to protecting the environment; Offers many sustainable tourism options

Responsible tourism attraction

Protected areas; Protected cultural heritage sites; A theme park based on a rainforest theme that both educates visitors on sustainability issues and sells local products

Responsible tourism accommodation

Eco-resorts that have been built and managed according

to sustainable tourism principles (e.g protect the environment, involve and benefit local people)

Responsible tourism transportation

Renewable energy hybrid vehicles, Bicycle tours; Air travel with carbon offsets

Picture sources: http://en.wikipedia.org/wiki/Tourism_in_Belize http://commons.wikimedia.org/wiki/File:Madagascar_baobab.JPG http://www.fotopedia.com/items/flickr-6054914564 http://commons.wikimedia.org/wiki/File:Recreational_cyclists_take_breaks_while_driving_on_a_bicycle_tour.jpg

What is responsible tourism product

development?

tourism goods, services and experiences for consumption

• Responsible tourism product

development requires integrating sustainability principles in the process

development process helps ensure the business, product, or service can compete effectively and make a profit

Development of tourism related products and experiences requires:

• Understanding existing supply and future demand for products

• Market research on visitor needs and satisfaction, product development gaps and opportunities

• Understanding the types of experiences that a visitor market seeks

• Assuring the value and sustainability of the tourism project

The responsible tourism product development

process

RESPONSIBLE TOURISM PRODUCT PLANNING

• Determine goals and actions

• Establish collaborations

RESPONSIBLE TOURISM PRODUCT DEVELOPMENT STRATEGY AND ACTION PLAN

• Develop a responsible tourism product development strategy

• Develop an implementation action plan

Ensuring viable responsible tourism products

by meeting market needs

• Market visitation volume

• Market size

• Market trends and interests

Market growth

• Reason for travel

• Kinds of experiences desired

• Level of money spent by visitor types

• Value to local development Spend

• Greatest interest

in the destination

• Connect with development objectives Sustainability

Using a market analysis to help understand

tourism market features

Superior food and accommodation,

Mixing

businesses

with pleasure

International short-haul

Individual and independent business travellers adding some tourism activities to their trip.

Entertainment, visiting main attractions, relaxation.

Quality services and products Ease of travel.

1st timers International

long-haul

Individual or group travel for 1 week or more, utilizing a variety of travel means and many destinations.

Visiting main attractions, cultural and natural features.

Good food, adequate accommodation, fair prices, variety.

2nd timers +

crowd

avoiders

International long-haul

Individual or small group travel – usually organized for 1 week or more, usually spending more time in fewer destinations.

self-Authentic experiences and specific activities (i.e

trekking, caving).

Adequate accommodation, good food and services, authenticity and personal experiences.

On holiday Domestic Travel as a family, during national holidays and

annual holiday periods

Relaxation, entertainment, visiting main attractions.

Good food, adequate accommodation, shopping opportunities, fair prices.

Phuot Domestic Independent or small group travel, often by

motorbike.

Seeking alternative activities and non-touristic locations.

Adequate accommodation and food, cheap prices, authenticity.

Day trippers Domestic Independent travel by families and friends in

private vehicles for 1 day, usually on weekends or national holidays.

Relaxation, entertainment, visiting main attractions.

Good food, good services, ease of travel.

DEVELOPMENT OPPORTUNITIES & OBJECTIVES

UNIT 2 RESPONSIBLE TOURISM PRODUCT DEVELOPMENT

Picture source: http://commons.wikimedia.org/wiki/File:Fujian_association_Hoi_an.jpg

What is tourism product-market matching?

• Connecting the characteristics, motivations and expectations of market segments with suitable tourism products

• To ensure sustainability, products should also be matched with

development opportunities and objectives of the host destination

Product-market matching conceptual diagram

PRODUCT A

PRODUCT

B

PRODUCT C

PRODUCT E

PRODUCT D

PRODUCT F PRODUCT

G

PRODUCT I PRODUCT

SEGMENT 1

MARKET SEGMENT 2

MARKET SEGMENT 3 MARKET

SEGMENT 4

Which markets would you match

to these products in Vietnam?

Why are these markets linked

to these products?

Why are these markets linked

to these products?

Matching markets and products in Vietnam

Phuot INTERNATIONAL Holidayers Mixing business with pleasure First timers

Second timers + Crowd avoiders

Results of product-market matching

Domestic day trippers

4 key product development options

Sell more of an existing product

to an existing market

Product development

Sell a new or improved product to an existing market

Market development

Sell existing products to a new market

Product diversification

Sell new products to new markets

Developing existing tourism products

To existing markets

• Strategy: Intensive promotion of existing products to current market to increase market share

To new markets

• Strategy: Conduct market analysis to identify new and untapped markets with strong growth potential for existing products

Picture source: http://www.flickr.com/photos/rwp-roger/4353435590/

Developing new tourism products

To existing markets

• Strategy: Expand on products in destination and promote to existing market segments

To new markets

• Strategy: Attract new markets with strong growth potential

Picture source: http://www.flickr.com/photos/dalbera/4410383427/

Product Development Strategy 1

A beach resort destination dissatisfied with its market share compared to its main competitors decides to undertake an aggressive marketing campaign targeted at existing target markets and segments to increase market share.

Product Development Strategy 1

A beach resort destination dissatisfied with its market share compared to its main competitors decides to undertake an aggressive marketing campaign targeted at existing target markets and segments to increase market share.

Source: UNWTO & ETC 2011, Handbook on Tourism Product Development, UNWTO & ETC, Madrid, Spain

Product Development Strategy 2

A beach resort destination recognises that the twenty first century resort holidaymaker has become more demanding, develops a “Beach Plus +” programme which it markets to its existing market segments who might have considered that the destination had become tired and predictable.

Product Development Strategy 2

A beach resort destination recognises that the twenty first century resort holidaymaker has become more demanding, develops a “Beach Plus +” programme which it markets to its existing market segments who might have considered that the destination had become tired and predictable.

Source: UNWTO & ETC 2011, Handbook on Tourism Product Development, UNWTO & ETC, Madrid, Spain

Product Development Strategy 3

A destination that has relied on a particular geographic market decides to target other source markets that have a

different seasonal pattern of demand

Product Development Strategy 3

A destination that has relied on a particular geographic market decides to target other source markets that have a

different seasonal pattern of demand

Source: UNWTO & ETC 2011, Handbook on Tourism Product Development, UNWTO & ETC, Madrid, Spain

Product Development Strategy 4

A destination that has based its early stages of development

on a particular type of product targeted at the geographically closest market decides that its product development as been overly narrow and that there are other resources that can appeal to visitors, with demand drawn from a wider network

of markets and segments.

Product Development Strategy 4

A destination that has based its early stages of development

on a particular type of product targeted at the geographically closest market decides that its product development as been overly narrow and that there are other resources that can appeal to visitors, with demand drawn from a wider network

of markets and segments.

Source: UNWTO & ETC 2011, Handbook on Tourism Product Development, UNWTO & ETC, Madrid, Spain

Often more flexible in their travel patterns and spending behaviours than those traveling in groups

Domestic markets Offer more stable, year-round business than international

Willing to spend more and stay longer for authentic and /

or unique special interest activities and experiences such as birdwatching, trekking, diving etc

Cultural products Provide opportunities for engaging local people who are often the

“owners” and practitioners of the products (e.g handicraft products, cultural performances, local guiding).

Nature products Activities centred around nature; provides local income earning

opportunities through services such as guiding.

Adventure products Typically requires specialised equipment and local support from

specifically trained guides.

Education products Requires specialisation of products, services, and information provisions

Increasingly popular with some market segments such products also support sustainability and opportunities for local people knowledgeable and able to work as specialist guides or interpreters.

Other important considerations in determining

product development options

• Tourism marketing strategies

available human resources with sufficient capacity

Is it good for us?

others

Do I want it?

consumers

Can I sell it?

business

Stakeholder criteria for tourism products

1 Contains defining features

1 Contains defining features

2 Contains core features

2 Contains core features

3 Considers market

3 Considers market

4 Is commercially viable

4 Is commercially viable

5 Is sustainable

5 Is sustainable

6 Provides local benefits

6 Provides local benefits

7 Available human resources

7 Available human resources

CONSUMER REQUIREMENTS

OTHER STAKEHOLDER

REQUIREMENTS

BUSINESS REQUIREMENTS

ADDITIONAL REQUIREMENT

Ensuring tourism products meet defining

feature requirements

1 Contains defining features

1 Contains defining features

Example of assessment criteria to determine if product meets defining feature requirements

clusters and circuits

consumers

consumers

Example of assessment criteria to determine if product meets core feature requirements

accommodation, food service)

consumers

Example of assessment criteria to determine if product meets core feature requirements

Market trends and influence

Are target markets likely to expand or influence other markets

business

business

Example of assessment criteria to determine if

product meets commercial viability

requirements

Market-based planning

Tourism products are developed and managed strategically based on specific markets and trends

Private sector engagement

The private sector is involved, including healthy local enterprises

Supportive regulatory context

Regulations on business development and operations are favourable

Necessary supporting resources

Available local human resources, and necessary infrastructure

business

others

Example of assessment criteria to determine if product meets sustainability requirements

opportunities

ensure effective and ongoing operations

others

others

Tourism is seen as a fair and welcomed addition to local livelihood improvement

Local involvement / ownership

Hosting communities have open, and effective mechanisms for engagement, including management roles, in the tourism sector

women, disabled, minorities) receiving benefits

others

Ensuring tourism products meet human

resource requirements

1 Contains defining features

• Public sector

• Business sector

7 Available human resources

Example of assessment criteria to determine if product meets human resource requirements

sectors

location

the tourism sector

Assessing product performance against

sustainability criteria

Scoring the degree a product achieves the various evaluation criteria can help

to understand its level of sustainability and viability An example is below:

0 = Not applicable This issue is not needed or relevant to the site No action required

1 = Very weak Complete inadequate leading to disastrous

results.

Intensive and comprehensive focused support.

contribute to and effective or responsible product.

Focused support of key aspects for improvement Strengthening what is already working.

3 = Adequate Functioning adequately, but could be better

in some key aspects.

Focused support of key aspects for improvement Strengthening what is already working if needed.

4 = Strong Functioning adequately, but could be better

in some minor aspects.

Minor improvement on specific areas if needed.

5 = Best practice A model example that is highly effective,

innovative and exemplary.

Show case and replicate.