The article gives a detail information about Destination Management Notes and Tourism Pricing Strategies , and pricing in hotel and Tourism Industry through many sub topics:
Table of Contents
About Destination Management and Destination Image
Destination Management:
Destination Management is a process of leading, influencing and coordinating the management of all the aspects of a destination that contribute to a visitor’s experience, taking account of the needs of visitors, local residents, businesses and the environment.
-Destination management plan should be evident based where one should be aware of
- New development projects: It involves expanding the attraction level of a destination by adding new attractions and facilities to it.
- Neighboring products: It involves major developments in close to the destination to add
more attraction to it.
-Stages of Destination Management Plan Development:
Destination Image:
As per Crompton: “set of ideas, beliefs and impressions that the person has of a destination.” refers to Destination Image.
-Gartner classified five sources of information for creation of a sound Destination Image:
- Openly induced type of information involving advertising, mass media, social media etc.
- Secretly induced type of information like using popularity of celebrities
- Autonomous– news, reports, movies, documentaries etc.
- Organic– information form close friends, family members, relatives etc.
- Personal– information gathered from visiting a destination
-Measuring Destination Image:
The image of destinations are holistic representations of places/destinations.
- Dimensions are functional/Psychological characteristics
- Dimensions have theoretical standpoint
- Natural factors like weather etc.
- General Infrastructure
- Political and economic factor
- Local environment and community
- Advertising
- Public Relations
- Word of mouth
- Feedbacks
- Measuring scales like Likert scale to measure perceptions of travelers
–Instruments for Communication of an Image of a Destination:
Kotler states that marketers who market an image of a destinations use three instruments to achieve an effective image:
a) Slogans, themes, positioning
b) Visual symbols
c) Events and acts.
-Strategic Image Management
The Strategic Image Management (SIM) is a permanent process of researches of image for its audience, segmenting and targeting of a designated image and its demographic audience, positioning of the attractiveness of different places with the goal to support already existing image or the creation of a new image and also communication and benefits of locals.
What is Service Gap Model and how its implemented
Below is given Service Gap Models which depicts the differences that can occur between Customers expectations and Service providers assumptions of good services. It checks customer needs or expectations and the difference between customer expectations and perceived service. It is measured in SERVQUAL. The Gap models are:
- Gap 1: It is difference between customer expectation Vs Management perception
- Gap 2: It is difference between Management perception Vs Service delivery.
- Gap 3: It is difference between Service specification Vs Service delivery.
- Gap 4: It is difference between Service delivery Vs External communication
- Gap 5: It is difference between Customer expectation Vs Perception of service delivery.
- Gap 6: It is difference between Customer expectation Vs Employee’s perception
- Gap 7: It is difference between Customer expectation Vs Management’s perception
Types of Tourism Services
Tourism services offers lots of amalgamation of various services to make it a even package for upcoming travelers. These are:
- Travel agencies: A travel agency’s main function is to act as an agent selling travel
products and services on behalf of a supplier. - Online travel agents: The travel agency industry has been the use of the internet to allow travel agents to let their travelers compare a wide variety of options for hotels and airline tickets.
- Tour operator: A tour operator is responsible for operating and providing your vacation through the contracting, booking and packaging together of the various components of your tour such as your hotel, transportation, meals, guides, optional tours and sometimes flight.
- Destination marketing organization: A destination organization, mainly referred to as a
destination marketing or management organization, convention and visitor bureau or tourism board, is responsible for promoting a community as an attractive travel destination and enhancing its public image as a dynamic place to live and work. - Educational training: The institutions which held courses and sessions to train professionals for the travel and hospitality industry and credit degrees and certificate of their involvement.
Types of Market Segmentation
Market segmentation is the activity of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers (known as segments) based on some type of shared characteristics. marketers tend to use the so-called S-T-P process, that is Segmentation→ Targeting → Positioning, as a broad framework for simplifying the travel marketing process.
- Geographic segmentation:
This allow the tourism market to break the customers into sections by climate, density, market size, world or states.
- Psychographic segmentation:
This involves dividing the customers according to their personal characteristics, preferences, lifestyles, social interactions etc.
- Behavioral segmentation:
It is the practice of dividing consumers into groups according to any of the following attributes: usage, loyalties, awareness, occasions, knowledge, liking, and purchase patterns.
- Demographic segmentation:
It is extremely important to all marketing departments since the data is easily available and does drastically affect buying patterns. Age, income, gender, ethnic background and family life cycle are all important factors of demographic segmentation.
- Socio-Cultural segmentation:
Culture, religion, race, region, language, education and economic class is part of socio-cultural factors which influence consumers’ needs leads to this market segmentation.
- Product related segmentation:
This allows dividing customers on the basis of the products and services they want. It can be difference on mode of transport, type of accommodation, food allergies and many more.
- Economical segmentation:
It involves dividing on the basis of income and spending levels of consumers. Some would be wanting a cruise tour while some would like to book budgeted tour package according to their pocket limit.
List of Pricing Strategies and Distribution Channels
Pricing Strategies:
- Marginal cost pricing: It involves setting of prices.
- Incremental pricing: It is the relationship between larger changes in revenues and cost with managerial decisions.
- Break-even pricing: It requires price of the product is set so total revenue equals total
cost. - Mark-up pricing: It is similar to break even, except that a desired rate of profit is build.
- Peak level pricing: Demand of product varies over time.
Tourism Distribution Channel:
- Intermediaries:
This constitutes Travel agencies, tour operators, OTAs which play a role in interaction between traveler and visiting to the destination.
- Intensive distribution: It is used to distribute low priced products or impulse purchases.
- Extensive distribution: It involves limiting distribution to a single outlet. The product is usually highly priced, and requires the intermediary to place much detail in its sell.
- Selective distribution: A small number of retail outlets are chosen to distribute the product; Selective distribution is common with products such as special facilities of providing wheel chairs etc.
Tourism product Life cycle and its stages
- Exploration: The time when area is unexploited
- Involvement: The time when area is little visited and services starting to facilitate
- Development: The time when area starts developing as a destination
- Consolidation: The time when there is increment in tourists
- Stagnation: The time when there is declination in facilities
- Rejuvenation: The time when destination receive help to regain its attractiveness
