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International Tourism. The Tourism Industry. Attractions. C u s t o m e r s. Accommodation. Internal Transport. International Transport. Facilities. Tour Operators. Travel Agents. Incoming Tour Operators ‘Ground-handling agents’. National Tourist Office.

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Presentation Transcript
the tourism industry
The Tourism Industry

Attractions

C

u

s

t

o

m

e

r

s

Accommodation

Internal

Transport

International

Transport

Facilities

Tour

Operators

Travel

Agents

Incoming Tour Operators

‘Ground-handling agents’

National Tourist Office

issues in international tourism
Issues in international tourism
  • Who controls the channel?
    • vertically integrated oligopolies
    • multi-national mergers (see my website)
  • Impacts on quality
    • unsustainable over-development
    • low margins -> low reinvestment
    • homogenised products

Morgan in Theobald(1996) Global Tourism: the next decade BH

slide4

UK’s position in World Markets

  • UK is world no. 7 destination

after US, Spain, France, Germany, China and Italy in terms of £

lower growth rate than rivals (down 2 since 1998)

    • tourism 4.5% of GDP
    • 7% of the workforce (2.1m)
  • UK is world no. 3 source country

after US, Germany and ahead of Japan & France

UK tourist spend abroad has doubled 1991-8

    • Balance of payments deficit in tourism £6.8bn
    • increased to £11.5bn in 2000 (FMD etc)
incoming tourism
Incoming Tourism
  • Top five markets 2001 (1998)
    • USA 3.6(3.9)m visitors £2.4 (2.5)bn
    • France 2.8 (3.2)m £0.7 (£0.7)
    • Germany 2.3 (2.8)m £0.7 (0.9)
    • Ireland 2.0 (2.1)m £0.6bn
    • Netherlands 1.4 (1.6) £0.4
  • Total 22.8 (25.4)m £11.3 £12.5bn
the role of the nto how do you market a product you don t own
The role of the NTOHow do you market a product you don’t own?
  • Theming and branding Promotion
    • Tourist promotion & information
  • Facilitation of exchanges (Middleton) Distribution
    • between elements of the industry
    • Joint marketing campaigns
  • Quality control and assurance Product
      • training, advice and research
  • Infrastructural improvements
    • Flagship projects
    • grants and subsidies
slide7

VisitBritainwww.visitbritain.org

  • New National Tourism Marketing body
  • Strategic policies
    • price competitiveness
    • sustainability
    • partnerships and communication
    • quality of welcome
  • Engage public and private stakeholders in the marketing of Britain
slide8

Brand identity (Kapferer)

PICTURE OF SENDER

Physical

Features

Personality

INTERNALISATION

EXTERNALISATION

Relationship

Culture

Self-image

Reflection

PICTURE OF RECIPIENT

marketing strategy
27 target countries with offices

Segmented by key markets, for example:

http://www.visitbritain.com/corporate/links/visitbritain/campaigns.htm

Marketing Strategy
have the new tourists arrived
Have the New Tourists arrived?
  • Independent, confident, and curious
  • Affluent and active
  • Looking for more than the 4 Ss
        • Poon (1993)

What do the figures show?

underlying factors
Underlying factors
  • Ageing population
    • peak age groups born 1947 and 1964
  • Third generation tourists
    • well educated and experienced
  • sophisticated Lifestyle consumers
    • food, fashion, home improvements and travel
  • Money Rich / Time Poor
the impact of the internet
The Impact of the Internet
  • 50% of the population now use it at home or work
    • 65% of ABC1s and under 45s (Mintel 2003)
  • Half of these have browsed holiday/travel sites
    • but only 18% have bought flights/holidays on line
  • Better informed customers
  • Dis-intermediation or Re-intermediation?
the top ten travel sites
Lastminute.com

Expedia.co.uk

Travel Select

Opodo UK

My Travel

Cheapflights

Ebookers.com

thomascook.com

Teletext

Airline Network

The top ten travel sites
take it easy low cost airlines
Take it easy-low cost airlines
  • 16 million passengers a year to/from UK
  • 15% of UK international scheduled air travel
  • 48% increase in capacity 2001-2

‘Your next flight....’

a package holiday 41%

an independent holiday 35%

Business trip 5%

Never flown 19%

implications
Implications
  • Impulse buys - growing the market
  • New destinations
  • Links with Hotel websites
    • an alternative package
    • issues of bonding and insurance
  • Commoditisation
the end of the world of tui
The end of the World of TUI?
  • Travel agents losing share to call-centres and the internet
  • Tour operators less affected
  • Their advantages still apply on-line
    • cheap, convenient, consistent
  • Reinventing themselves

Goodbye Airtours, Hello My Travel

sources
Sources
  • http://www.staruk.org.uk/
  • Cope, R(2000) ‘UK Outbound’ Travel and Tourism Analyst, Jan 2000 Corporate Intelligence Group, London
  • http://www.visitbritain.com/corporate/links/visitbritain/tips.htm