International Tour Operator Management Part II

About This Presentation

Title:

International Tour Operator Management Part II

Description:

Rational decision cannot be taken with forecast ... Service consumption is part of production, happening ... Interest in healthiness and environmental impact ... – PowerPoint PPT presentation

Number of Views:121

Avg rating:3.0/5.0

Slides: 60

Provided by: walde

more less

Transcript and Presenter's Notes

Title: International Tour Operator Management Part II

1
International Tour Operator ManagementPart II
2
Market Research and customer behaviour
3
Forecasting models in tourism

Forecasting is very necessary in tourism
Rational decision cannot be taken with forecast
about trends
Risk of management mistakes is high in tourism
because
Tourism services cannot be stored
Service consumption is part of production,
happening at same time
Customer satisfaction depends to a large part on
external factors
For many areas high investment costs
(infrastructure, hotels)
Different criteria for measuring tourism
Number of visitors/guests, number of tourists
(UNWTO)
Number of visitor groups
Number of overnight stays
Level of expenditure per person per day
Value added share of tourism (WTTC)
Market share

4
Forecasting methods in tourism

Difficulties
New industry, lack of long-term timelines and
historic data
Standardisation of tourism statistics just
beginning internationally (Satellite accounts),
not existing for domestic tourism
Demand volatile, easily influenced by external
factors and events
Under-academication of tourism industry, Rule of
thumb
Lack of methodical knowledge in tourism industry
Forms of forecasting
Qualitative und quantitative Forecasting methods
Short / long term methods
Examples Survey, Scenarios, Delphi

5
Market research and analysis

Market research
Systematic process of acquiring, processing and
analysing quantitative and qualitative data to
assist the decision making process.
Different forms of market research
Facts, Images, perceptions, motivations
Analysis of situation at given moment or ongoing
market scan to understand developments and trends
of market
Major tasks of market research
Definition of (sub-)markets
Analysis of (sub-)markets
Demand research
Competition research

6
Market research forms

Primary research Field research
Own research (company or Institute)
Surveys
Observation
Experiment
Reporting
Secundary research Desk research
Internal sources
External sources

7
German tourism market research institutes I

B.A.T. Freizeit-Forschungsinstitut GmbH, Hamburg
Consultant Aviation Tourism, Stelle
Creatours Destination, Freizeit, Tourismus,
Dresden
Dallmeier Partner, Korschenbroich
Deutscher Reisemonitor DRM, c/o IPK
International GmbH, München
Deutsches Touristik-Institut eV, DTI,
Stockdorf/München
dwif Consulting GmbH, Berlin/München
dwif Deutsches Wirtschaftswissenschaftliche
Institut für Fremdenverkehr eV an der Universität
München, München
Europäisches Tourismus Institut ETI, Trier
Europäischer Reisemonitor c/o European Travel
Intelligence Center, Luxemburg
FT Freizeit und Touristik GmbH, Grafschaft

8
German tourism market research institutes II

FUR Forschungsgemeinschaft Urlaub und Reisen eV,
Kiel
Inspektour GmbH, Heide
Ipsos GmbH, Mölln
ITF Research GmbH, Bremerhaven
Mobility Touristcope, (DB, LH, T.O.,
Autoindustrie), Frankfurt
Project M Marketing Research GmbH, Lüneburg
Reppel Partner GmbH, Karslruhe-Durlach
Studiengemeinschaft für Tourismus SfT,
Ammerland/Bayern
TourismusKompetenz, München
Ulysses Web-Tourismus, München
World-Travel Monitor Ltd. Malta, c/o IPK
International GmbH, München

9
Tourism Fairs in Germany and abroad
Fair Visitors Visitors Exhibitors Exhibitors
Fair 2004 2005 2004 2005
ITB Berlin 141.139 142.351 10.023 10.409
CBR München 139.000 130.000 1.143 1.237
CMT Stuttgart 190.476 176.930 1.400 1.400
Messe Essen 110.600 103.200 858 751
Reisen Hamburg 103.000 100.000 1.060 1.086
FreizeitGarten Nürnberg 178.746 143.249 702 624
WTM London 2006 46.945 2006 5.602
CITM Shanghai 2006 3.100
10
Examples of Market research methods

Surveys oral, written, by telephone, online
Structured/unstructured, standardised
Open/half open/closed surveys
Experiment
Test markets
Observation
Customer behaviour
Frequencies, Spatial movement analysis, test
purchases
Trend analysis
Extrapolation of past developments into the
future dangerous (Predictions are dangerous,
especially if they concern the future Nils
Bohrs) especially for fast developing activity
like tourism
Example Predictions of situation 2007 made in
1987 (cold war), or 1997 (no internet, no budget
airlines)

11
Customer behaviour

Influences
Cultural
Cultural background
Subculture
Social background
Social
Peer groups
Family
Role and Status
Perception of tourism
Personal
Age, current biographical situation
Job
Economic situation
Lifestyle
Self-perception
Motivation
Values
Travel Biography

Increasing segmentation
number of milieus increasing
disappearance of clear social roles in
post-modern society

12
Market segmentation

http//www.sinus-sociovision.de/

13
Analysis of customer behaviour

Seven questions, seven answers

Who is the market? Customers
What is the product? Product (physical/intentional)
Why is it bought? Purchase objectives
Who influences the purchasing process? Stakeholders
How is the purchase organized? Purchasing process
When does the purchase happen? Purchase triggers
Where does the purchase happen? Point of Sale
14
Competitor analysis and benchmarking

Ongoing analysis of competitors behaviour
Direct Observation of products, offers,
marketing activities of competitors
Indirect Intelligence about competitors plans
and strategies (Know your enemy better than he
knows himself Sun Zi)
Benchmarking
Learning from the best in the branch (opposite
best practice can also be from other
branches)
Identifying benchmark competitor for specific
task, analysis of own shortcomings,
implementation, feedback (TQM)

15
Definition of Market for specific product

Markets are mentally constructed
Markets are dynamic
Customers decide on market structure
Classical Segmentation
Geographical, demographical and psychographical
Postmodern Segmentierung
Lifestyle, activities, milieus

16
Major trends in customer behaviour

1. Changing customer profile
2. Shifting consumption pattern
3. Intensifying competition / continuing
consolidation
4. Growing segmentation
5. Escalating concern for safety / security
6. Increasing value orientation
7. Increasing influence of the internet
8. Several short trips instead of one long
holiday, short-time decision
9. Less customers loyalty for Tour Operator or
destination

17
Influences on customers behaviour in tourism
Development Observable changes Results for tourism behaviour
Demographical development Greying society more small and single households
Income and wealth More high-income people More wealthy people
Loss of set values Disappearance of class and strata specific behaviour
18
Influences on customers behaviour in tourism
Development Observable changes Results for tourism behaviour
Time perception More free time yet feeling of necessity to save time Multitasking
Health and environmental interest Interest in healthiness and environmental impact of products
Level of education and travel experience Increasing education levels and travel experience
19
Tourism motivation

Some classical theories
Maslows pyramid of needs
Fleeing from bad situation at home
Search for authenticity
Recreation, regeneration
Self-actualization
Contrast to home
Structuring of time after loss of religious time
frame
Travelling for health reasons
Travelling for unrestricted enactment of
consumption (sex, alcohol, servility)
Travelling as own goal (the way is the goal
hiking, cruise)

20
Tourists typologies

Typologies according to
Activities
Preferred surroundings
Spatial behaviour
Level of integration into local community
Forms of information gathering
Opposition to normal life
Frequency of travel
Position in biographical development of
travelling
Etc. etc.
Problem multioptional behaviour within source
markets and within individual tourist increasing,
wish for higher intensity

21
Tourists and lifestyle typologies - Examples

Opaschowski Tourists focussing on
Integration
Prestige
Experience
Culture
Entertainment
Quality
Economy
Austria 2000 Euro-Lifestyle
The careful Recreationist
The classical Culture tourist
The demanding Experiencer
The young Enjoyer
The young Family

22
Marketing for Tour operators

Discussion
Major problems
Brand-adequate Quality Dependance on external
service providers
Increasing transparency of offers from
competitors / direct sales
Dependance on destination marketing - Necessitiy
of cooperation

23
Product Management
24
Product Management Steps
Market research, analysis, product and marketing planning

Economical and technical planning

Sourcing

Product Management

Publication

PR, Ads, Distribution

Actual trip

After trip/program feedback, controllingCustomer feedback management
25
Product Management policies
Product Management Programme policies Brand policies Product development and adaptation Customer Service
Dimensions of Product Management Dimensions of Product Management
Strategic Product Management Long term development
Tactical Product Management Product development and adaption
Operative Product Management Product realization
26
Types of packages tours

Full package tour
Part package tour
Individual package tour (moduls)
All Inclusive Tour
Dynamic Packaging
Specific tours (f.i. business, incentive, cruise,
pilgrime, event tour)

27
Product development

What is the customer really looking for?
Example Space tourism
Generic product
Expected product
Extended product
Potential product
Product includes
Competence to offer product solutions
Bundle of services necessary
Service claims and promises
Risk taking
Package price
Preparation, Standardisation, Quality control

28
Product adaptation

What are different source market customers really
looking for?
Product adaptation according to customers
expectations and behaviour
Different stories for same product for different
customers
Spatial differentation for different customer
groups at destination

29
Parts of product

Technical
Material, Construction
Aesthetic
Form, Colour, Design, Packaging
Symbolic
Brand, Image
Main features
Aim/Goal of product purchase
Additional features
Information, Customer service

30
Dynamic Packaging

Definition
Choosing, packaging and booking for different
moduls of a package tour in realtime with a
package price
Dynamic Packaging disappears in mass market
With increase of package tourists standardised
pre-packed tours with standard length and
programme easiert to organise and to sell
Dynamic Packaging reappears in post-industrial
consumer market
Wish for multi-purpose, multi-dimensional travel.
Increase in travel experience by customers, IT
advantages
Dynamic Packaging changes T.O. business
Need to have stand-alone components ready in
realtime
Muddling of border travel agency tour operator

31
Pricing
32
Price in the product life cycle
Price
Premium Pricing Premium Pricing Premium Pricing Premium Pricing Premium Pricing
Skimming

Discount Pricing Discount Pricing Discount Pricing Discount Pricing
Cost plus Pricing
Penetration
Time
33
Price limits
Price variation of offer Upper price limit Too expensive, outside of price acceptance Price acceptance
Price variation of offer Upper price limit Acceptable increase Price acceptance
Price variation of offer Optimum price limit Planned Budget Price acceptance
Price variation of offer Lower price limit Acceptable decrease Price acceptance
Price variation of offer Lower price limit Too cheap, outside of price acceptance Price acceptance
34
Distribution
35
Distribution

Ways of distribution
Direct distribution
indirect distribution
Forms of sales organisations
Own / others broker, consolidators, traders
Within the industry (cooperation, franchise,
travel agencies) / outside the industry (retail,
department stores, gas station)
Instruments of distribution
Agency agreement, commission, direct/indirect
sales support, training of staff

36
Direct and indirect Distribution

DIRECT
Lower costs
Better customer relation
Higher brand awareness
Less reliance on distribution partners
But conflict with travel agencies and other
distribution partners
(examples German Railway, Colorline)
INDIRECT
Own channels (travel agencies, media groups,
franchise)
Other channels (general, selective or exclusive)

37
Travel agencies as distribution channel for tour
operators

Ein Reisebüro/Reisevermittler ist im Verhältnis
zum Reiseveranstalter Handelsvertreter im Sinne
der 84 ff HGB und für den Kunden / Reisenden
auf der Basis eines entgeltlichen (Provision)
Geschäftsbesorgungsvertrages 675 BGB mit
Werkvertragscharakter 631 ff BGB tätig.
Vertragsgegenstand zwischen Reisebüro und Kunde
ist die
Vermittlung einer einzelnen Reiseleistung eines
fremden Leistungsträgers oder
Vermittlung einer Pauschalreise eines fremden
Reiseveranstalters.

38
Function of the travel agency

Tour operators point of view
Matchmaking between customer and T.O.
Commission is only paid if business is generated,
part of variable cost structure
Provision of comprehensive distribution network
without onw investment
Known POS
Often good location (1A) (physical / internet)
Existence of loyal regular customers, good
experiences of customers with travel agency
crossing over to recommended T.O. product
Customers point of view
Easy to reach, personal service
Physical information (catalogues)
Consultation, answers to silly questions
Face-to-face communication, also for complaints
Filters out unsuitable, unrealiable offers

39
Communication policy
40
Communication policy

Goal Positively Influencing
Own staff
Potential customers
Actual customers
Public opinion
Politicians, institutions

41
Advertisement above the line

Openly influencing public opinion to
Keep customers
Get new customers
Produce positive environment for own products
Directly adress customers

42
Sales support

Supporting distribution channels
Monetary activities
Commission on sales (basic, special,
volume-based, target-based)
Incentives for individual sellers
Refinancing of PR/advertisement activities
Payment of credit card costs etc.
Non-monetary activities
Product information
Trainings
discounted travels
decoration materials
Hotline etc.
Supporting direct distribution
Catalogues, discounts, loyalty bonusses etc.

43
Public Relations work - below the line

Indirectly or Covertly influencing public opinion
by
Press releases
Events
Sponsoring
Customers forum
House magazines
Website
Participation in fairs etc.
Product placement
Guerilla marketing
Covert websites support
Cross selling etc.

44
Quality Management
45
Quality management

Quality ? Expensive
Quality Hardware, Surroundings, Software
Quality Ongoing process

46
TQM Total Quality Management

Customer point of view How important is the
service offered and how was the quality of the
service perceived?
Producers point of view How good was the quality
management?
TQM as a never-ending upward spiral (Kaizen)

47
Ecology management

Based on
Laws and regulations
Customer demand
Staff demand
In Germany
DeHoGa Eco Criteria
Government subsidies from
European Recovery Program (ERP)
Deutsche Ausgleichsbank (DtA)
Kreditanstalt für Wiederaufbau (KfW)
Bundesländer Subsidies

48
Ecology management

Labels
Many Ecology labels worldwide on different levels
Example Bavaria http//www.stmugv.bayern.de/umwel
t/wirtschaft/siegel/index.htm
Other examples
Blaue Flagge, Grüner Koffer
Top label in Germany Viabono

49
Sources

Bastian, H., Born, K., (2004) Der integrierte
Tourismuskonzern, München/Wien.
Becker, P., (2004) Yield-Management, Düsseldorf.
Berg, W., (2001) Tourismus 3, (Hrsg.) Dettmer,
H., Stuttgart.
Bieger, T., (2002) Management der Destination,
5. Auflage, München/Wien.
Böttcher, V., (2005) Virtuell oder real?, TUI
Deutschland, Köln.
Dettmer, H., Glück, E., Hausmann, Th., Kaspar,
C., Logins, H., Opitz, W., Schneid, W., (2000)
Tourismustypen, München/Wien.
Dettmer, H., Hausmann, Th., Kloss, I., Meisl, H.,
Weithöner, U., Degott, P., (1999)
Tourismus-Marketing-Management, München/Wien.
Dettmer, H., Hausmann, T., Kaspar, C., Oppitz,
W., Schneid, W., (2001) Tourismusbetriebswirtscha
ft 2 Managementformen im Tourismus,
Wien/Köln/Aarau.
Dettmer, H., Hausmann, Th., (2004)
Yield-Management, Bad Harzburg.
Dettmer, H., u.a., (2005) Managementformen im
Tourismus, München/Wien.

DSF - Deutsches Seminar für Fremdenverkehr,
(2002) Pauschalreisen rechtlich absichern,
Berlin.
Eisner, H., (1987) Reiserecht Entscheidungen,
München.
Echtermeyer, M., (1998) Elektronisches
Tourismus-Marketing, Berlin/New York.
Fresi, A., (2005) Die nächste Generation der
Reiseproduktion Realtime Enterprise
Kollaboration in der Reiseindustrie, Siemens,
Köln.
Freyer, W., (1998) Tourismus, 7. Auflage,
München/Wien.
Freyer W., Pompl, W., (1999) Reisebüro-Management
, München/Wien.
fvw, (2005) TID, Der Touristik
Informationsdienst, Hamburg.
Glaeßer, D., (2001) Krisenmanagement im
Tourismus, Frankfurt.
Gruner, A., (2000) Tourismus 2, (Hrsg.) Dettmer,
H., Köln.
Gruner, A., (2004) Methoden des
Yield-Managements im Logisbereich der
internationalen Hotellerie, München.
Haedrich, G., Kaspar, C., Klemm, Ch., Kreilkamp,
E., (1998) Tourismus-Management, 3. Auflage,
Berlin/New York.

Hänssler, K.H., (2000) Management in der
Hotellerie und Gastronomie, 4. Auflage,
München/Wien.
Kärcher, K., (2004) Urlaub per Mausklick Die
Potenziale des Dynamic Packaging.
Kaspar, C., (1986) Die Fremdenverkehrslehre im
Grundriss, 3. Auflage, St. Gallen.
Kirstges, T. (1992) Sanfter Tourismus,
München/Wien.
Kotler, P., Bliemel, F., (2001)
Marketing-Management, 10. Auflage, Stuttgart.
Kreilkamp, E., (2002) Reisbüros unter Druck,
Wiesbaden.
Kreilkamp, E., (1999) Die Zukunft der
Reisebüros, Lüneburg.
Logins, H., (2004) Yield-Management
Arbeitspapier, München.
Medlik, S., (1991) Managing Tourism, Oxford.
Mundt, J.W., (1998) Reiseveranstaltung,
4.Auflage, München/Wien.
Nies, I., (2005) Reisebüro, Rechts- und
Versicherungsfragen, 2. Auflage, München.

Olfert, K., Rahn, H.J., (2001) Lexikon der
Betriebswirtschaftslehre, 4. Auflage,
Ludwigshafen.
Opaschowski, H.W., (2005) Tourismusanalyse 2005
mit Grundlagenforschung, Hamburg.
Pichler, S., (2000), E-Business in der
Reisebranche Chancen oder Risiko?, Wiesbaden.
Pompl, W., (2002) Luftverkehr, 4. Auflage,
Berlin/Heidelberg.
Pompl, W., (1997) Touristikmanagement 1, 2.
Auflage, Berlin/Heidelberg.
Pompl, W., (1996) Touristikmanagement 2,
Berlin/Heidelberg.
Pompl, W., Lieb, M., (1997) Qualitätsmanagement
im Tourismus, München/Wien.
Pompl, W., Lieb, M., (2002) Tourismus-Management,
München.
Porter, M.E., (1999) Wettbewerbsstrategien, 10.
Auflage, Frankfurt/New York.
Rudolph, H., (1999) Tourismus-Betriebswirtschafts
lehre, München/ Wien.
Roth, P., Schrand, A., (2003) Touristik-Marketing
, 4. Auflage, München.

Schiava, M., Hafner, M., (1995)
Service-Marketing im Tourismus, 4. Auflage, Wien.
Schneider, A., (2005) Virtuelle Veranstalter im
Praxistest, Köln.
Schnyder, W., (2002) Die Zukunft der
Airline-Vergütung, Wiesbaden.
Schreiber, Th., (1999) Kongress- und
Tagungsmanagement, München/Wien
Schroeder, G., ( 2002) Lexikon der
Tourismuswirtschaft, 4. Auflage, Hamburg.
Seitz, E., (2001) Fallstudien zum
Tourismus-Marketing, München.
Steinecke, A., (2000) Erlebnis- und
Konsumwelten, München/Wien.
Sterzenbach, R., Conrady, R., (2003)
Luftverkehr, 3. Auflage, München/Wien.
Voigt, P., (2001) Internationales
Reiseveranstaltungsmanagement, München.
Viegas, A., (1998) Ökomanagement im Tourismus,
München/Wien.
Weiermair, K., Wöhler, K., (1998)
Personalmanagement im Tourismus, Limburgerhof.
Weis, Ch., (1999) Marketing, (Hrsg.) Olfert, K.,
11. Auflage, Ludwigshafen.