The Travel and Tourism Industry

1
Chapter 2

• The Travel and Tourism Industry

2
World Changes

• Technological Advances
• Shifting the Balance of Power in the Direction of
  the Customer
• Decline of the Mass Market
• Online Intermediaries
• Effect to the Suppliers
• Effect to the Customers
• I.e. Kayak, Sidestep
• Who owns the Data? The Supplier? The
  Intermediary?
• Increased Use of CRM Systems

3
World Changes (Cont)

• Growing Population
• Aging Population
• Wealth
• Increasing Leisure Time
• Seasonality
• Ecotourism

4
Mega Trends

• Age Confusion
• Children Grow up Faster and Adults Behave Younger
• Gender Confusion
• Women gain economic power and have less children
  and men take a more active role in partnering and
  become more fashion-oriented
• i.e. bars and sports teams target women and spas
  men
• Lifestages
• Cater more to singles, older people with young
  children, as well as divorced parents,
  re-marriages where step-children may produce
  complex age combos

5
Mega Trends (cont)

• Luxury and Budget
• Cant be sorted into income categories anymore
• Comfort and Security
• More home comforts and design principles at
  hotels
• Guest security
• Connectivity
• New forms of social belonging. People want to
  experience a community feel even when they are on
  vacation.
• i.e. resorts being built with malls, casinos,
  office space, condos, restaurants, and pedestrian
  promenades.

6
The Experience Economy

• The Transformation of Services into High-Value
  Experiences
• Providing Customers with a Unique Experience for
  which Providers can Charge a Higher Price
• Disney
• Starbucks

7
Size and Interrelationships

• The Multiplier Effect
• Indirect Economic Benefits that a Hospitality
  Business Brings to its Local Community
• Hospitality Businesses Have a Symbiotic
  Relationship

8
Reasons People Travel

• Recreation
• Culture
• Business (sometimes combined with leisure)
• Visiting Friends and Relatives
• Health

9
Travel Research

• Psychographic
• Demographic
• Yankelovich MONITOR

10
Social Impact on a Destination

• Cultural and Environmental Impact
• Ecotourism
• Planning

11
The Five-Step Tourism Development Process

• Define the Scope of the Project
• Analyze the Market
• Create a Master Plan
• Determine Who Will Develop the Project
• Establish a Timetable

12
How Can we Prepare for Future Trends in the
Industry

• Stay Informed and Educated
• Try to Anticipate Trends and be Proactive
• Be Willing to Adjust to Change Constantly