BML109 - UNDERSTANDING THE CONTEMPORARY VISITOR

BML109: Introduc1on to the Contemporary Tourism and Event Environment

The Contemporary Visitor: Understanding Demand for Tourism and Events

BML109: Learning Outcomes By the end of the session, you should be able to: Define demand in the context of tourism and events Highlight the factors influencing the demand for the tourism

and event products including behaviour, motivation and determinants Place the demand for tourism and events in the context of

conceptual models Highlight typologies that have been developed around

consumer behaviour Identify alternative frameworks for examining changes in

visitor demand

Understanding Demand Activity 1: • In groups discuss what factors influence the demand for tourism and event products and experiences?

• Please make reference to the research articles you found and highlight key themes • Be ready to report your findings back to the rest of the group

Understanding Demand Activity 1a: Label identified factors using the following headings: • Economic Factors • Social-Psychological / Behavioural Factors • Exogenous Factors (Business/Consumer environment)

Understanding Demand

Defining Demand The Consumer Decision-Making Process The Motivators: Factors which motivate the tourist to wish to purchase a

particular product The Determinants The factors which determine to what extent the tourist is

able to purchase the product they desire

Defining Demand Activity 2: Motivators and Determinants •  On your mind-mapping diagram labels factors as either motivators or determinants

Defining Demand Tourist Motivation Demand is a consumption process influenced by: Needs and desires The availability of time and money Images Perceptions and attitudes

Defining Demand What factors motivate individual purchase decisions?

Personal - gregarious or loner?; adventurous or

cautious?; confident or timid?

Lifestyle - the context for the purchase decision - health

concerns; fashionability; new friends/experiences; the challenge Physical - health, rest and relaxation, exercise,

competition Past experience/expectations - +/- as a tourist and

particular types of holidays/event experiences

Defining Demand What factors motivate individual purchase decisions?

Past life - nostalgia as a result of people’s life to date Image - how they wish to be viewed by other people Cultural - sightseeing, experience new cultures Emotional - romance, escapism Visiting Friends and Family Business

Defining Demand Dann (1981) Travel as response to what is lacking yet desired

The desire to experience phenomena different to those in the home environment

Destination pull in response to motivational push Motivation as fantasy

Travel to undertake behaviour not allowed or normal in the home environment

Defining Demand Dann (1981) Motivation as classified purpose

Main purpose of the trip as the motivator for travel

Motivational typologies

Behavioural typologies - ‘Sunlust’

Defining Demand Mcintosh and Goeldner (1977): Physical motivators

Refreshment of body and mind, health purposes, stress relief

Cultural motivators

Experience culture and lifestyle of other countries

Interpersonal motivators

A desire to meet new people, visit friends and seek new and different experiences

Status and prestige motivators

Prestige and recognition

Defining Demand Defining Demand —  Motivators and

Attractions

Defining Demand Crompton (1979): Key Motivations Novelty - a desire to seek out new and different

experiences Socialisation - a desire to interact with a group and its

members Prestige/Status - a desire to have high standing in the

eyes of others Rest and Relaxation - a desire to refresh oneself

mentally and physically

Defining Demand for Events Crompton (1979): Key Motivations Educational Value/Intellectual Environment - a desire

to gain knowledge and expand horizons Enhancing Kinship and Relations/Family

Togetherness - a desire to enhance family relations Regression - a desire to engage in behaviour

reminiscent of an adolescent or child

Defining Demand for Events

Defining Demand for Events

Demand Determinants Two Types of Determinants: Those factors which determine whether or not someone

will be able to take a holiday or trip Those factors which determine the type of trip, if the first

set of determinants allow a holiday or trip to be taken Determinants: Those personal to the tourist/visitor Those external to the tourist/visitor

Demand Determinants Personal Determinants Lifestyle factors Income and employment Holiday Entitlement Personal mobility Health Work and family commitments Education attainment Knowledge of destinations and tourism products

Demand Determinants Personal Determinants Attitudes and perceptions Life-cycle factors Experience Expertise with new technology

Demand Determinants External Determinants Media Greater awareness of the holiday environment through

the travel and non-travel media: Holiday, Wish You Were Here The Travel Show, Rough Guide Economic Relative strength of the pound/exchange rates Economic stability

Demand Determinants External Determinants Political Government legislation and policy Immigration restrictions and visa requirements Civil disorder, terrorism and perception of risk International conflicts Taxation policy - airport taxes and tourist taxes

Demand Determinants External Determinants Tourism Industry Advertising campaigns Loyalty programmes and discounting New product development/event experiences

Technology Ultimately: technology has effectively lowered costs and

made tourism more accessible

Defining Demand —  The Experience Economy Absorption

Entertainment

Educational

Passive Participant

Active Participant Esthetic

Escapist

Immersion

Defining Demand The Experience Economy

Entertainment ‘to sense’

Education ‘to learn’

•

•

• •

Improves the participant's mood/experience absorbed through senses Participation can be passive and/or active Can be added to other realms to improve Entertainment experiential quality Entertainment

Esthetic ‘to be there’ • •

Esthetic Enriches participant through improved Esthetic

design, comfort and beauty of space and furnishings Immersion in the event or environment but having little impact on it

Expands participant's knowledge and/or skills • Participation is active • Educational Can be fused with education to create "edutainment."

Educational

Escapist ‘to do’

Escapist • Escapist Participation tends to be active •

Participant tends to be actor in the performance

Defining Demand The Branded Customer Experience

Profitable growth Branded experience Predictable experience Random experience • Inconsistent • Unintentional

• Consistent • Intentional • Not differentiated • Not valuable

• Consistent • Intentional • Differentiated • Valuable

• The goal

Defining Demand —  The Consumer

Decision-Making Process

Defining Demand Cooper et al (1993) Energisers of demand

Forces of motivation which lead to action

Filters of demand

Constraints on motivation: economic, sociological, or psychological factors

Affecters

Factors which heighten or dampen energisers which lead to action

Defining Demand Cooper et al (1993) Roles

The role played by the family members in the decisionmaking process

Demand Models Schmoll (1977)

Understanding Demand Activity 3: •  Consider why an understanding of demand is so important to the tourism and event industries...be prepared to share your views...

Understanding Demand Why is an understanding of demand important?

Integral to the tourism and event planning process Impacts on product development, training and

organisational business and marketing strategies Proactive not reactive approaches to tourism and event development The tourism and event market is heterogeneous encompassing a wide range of consumer behaviours An awareness of the needs, purchase motives and decision process associated with the consumption of tourism and events Customer expectations; exceeding customer’s expectations is seen as unique customer service

Understanding Demand Why is an understanding of demand important?

The impact and effect of marketing strategies The possible perception of risk for tourism purchases Consumer price sensitivity and discretionary spending

potential The different market segments based upon purchase behaviour Consumer demand is not constant and habits change over time

Typologies of Behaviour Plog (1973)

Typologies of Demand Typologies of Consumer Behaviour

Evolution of the Tourist Environment

Poon (1995)

Evolution of the Tourist Environment

Poon (1995)

Summary At the end of this session you should be able to: Define demand in the context of tourism and events Highlight the factors influencing the demand for the tourism

and event product including behaviour, motivation and determinants Place the demand for tourism and events in the context of

conceptual models Highlight typologies that have been developed around

consumer behaviour Identify alternative frameworks for examining changes in

visitor demand