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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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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 • 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
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 • 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 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
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
Brand identity (Kapferer) PICTURE OF SENDER Physical Features Personality INTERNALISATION EXTERNALISATION Relationship Culture Self-image Reflection PICTURE OF RECIPIENT
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? • Independent, confident, and curious • Affluent and active • Looking for more than the 4 Ss • Poon (1993) What do the figures show?
UK Air holidays 1997-2002(UK International Passenger Survey)
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 • 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?
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 • 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 • 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? • 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 • 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