Tourism: Supply & Production

Tourist Area Life cycle model

• evolutionary model
• "translation" of product cycle
• origianlly explained how coastal resorts changed over time
• consumption driven
• nowadays also applied to other contexts

• DMOs often engage in marketing and promotion to develop and enhance the destination via more direct engagement with tourists or other visitors (incl. business events), they play a leading role in managing tourism demand (timing, magnitude) and tourism supply (products, services, amenities and attractions) in order to control impacts on their core resources (i.e., nature and culture), and the wellbeing of local residents
• Destination Marketing Organisations can be active on different levels such as country level (National Tourist Organisations [NTOs], regional level (e.g., state/department/province), or local level (e.g., municipality, city, national park).
• DMOs are often public-private institutions and actively pursue funding opportunities and participate in joint projects with knowledge institutions and other stakeholders.
• Higher level DMOs use a shared strategy and research agenda with important sectors/actors, such as the NBTC strategy
• Doing and sharing research is becoming increasingly more important for DMOs

useful theory to 'manage' promotion and product

how a destination is perceived (e.g. culture, culinary, hertiage, etc.) by a group of people

ideally the desired image is

• jointly determined by stakeholders/actors
• accordingly promoted by stakeholders/actors
• measured annually among all groups

horizontal: combinations

• reduce competition and differentation
• increase market coverage and visibility - presence!

vertical: connecting arrangements between one organization and another along the production process

• products satisfy a common need
• secure trading advantages
• mutual interest to make the market grow

yield = income - expenses

optimization of the difference between price and marginal cost on a sites asset

yield strategy:

• flexible pricing
• overbooking & outbooking
• sell in bulk
• diversification of tourism products

Product planning, pricing, branding, distribution channels, personal selling, advertising, promotions, packaging, display, servicing, physical handling, fact finding, and analysis

Price = pricing products considering costs, demand and competition

Product = development, design, branding, modification,...

Promotion = advertising, sales, promotion and public relations

Place = distribution channels decisions