Marketing Brands of Tourism Industry

1. Marketing TourismMarketing Tourism
DestinationsDestinations
ObjectiveObjective: Introducing the meaning, applications and: Introducing the meaning, applications and
approaches in the marketing of tourism destinations.approaches in the marketing of tourism destinations.

2. Marketing Tourism DestinationsMarketing Tourism Destinations
 This chapter is about the marketing role ofThis chapter is about the marketing role of
national tourism organizations, boards or officesnational tourism organizations, boards or offices
commonly known as NTOs which is used tocommonly known as NTOs which is used to
describe the organization assigned by the statedescribe the organization assigned by the state
with responsibility for tourism matters at thewith responsibility for tourism matters at the
national level.national level.
 It may be a full ministry or a directorate ofIt may be a full ministry or a directorate of
general or a department or board. In NTOs,general or a department or board. In NTOs,
government support in funding and officialgovernment support in funding and official
recognition is normal in cases where the NTO isrecognition is normal in cases where the NTO is
not part of the state.not part of the state.

3. PrincipalPrincipal MMarketingarketing RRole of NTOsole of NTOs
 TThe principal functions of NTOs include;he principal functions of NTOs include;
1.1. formulating and developing the touristformulating and developing the tourist
product or products of the destinationproduct or products of the destination
2.2. promoting them in appropriate marketspromoting them in appropriate markets
 The role of NTO is to create andThe role of NTO is to create and
communicate appealing destination images andcommunicate appealing destination images and
messages to prospective visitors, mainlymessages to prospective visitors, mainly
through advertising, PR and print.through advertising, PR and print.

4.  For example, in Britain, there are four bodiesFor example, in Britain, there are four bodies
which meets the definition of NTOs. They arewhich meets the definition of NTOs. They are
the British Tourist Authority, the Englishthe British Tourist Authority, the English
Tourist Authority, the Scottish Tourist Board,Tourist Authority, the Scottish Tourist Board,
and the Wales Tourist Board.and the Wales Tourist Board.
 British Tourist Authority is responsible form theBritish Tourist Authority is responsible form the
marketing Britain overseas. The tourist boardsmarketing Britain overseas. The tourist boards
for England, Scotland, and Wales are eachfor England, Scotland, and Wales are each
responsible for the development and promotionresponsible for the development and promotion
of tourism in their areas.of tourism in their areas.

5.  In the USA, at federal level, the NTO is theIn the USA, at federal level, the NTO is the
United States Travel and TourismUnited States Travel and Tourism
Administration which is responsible mainly forAdministration which is responsible mainly for
the promotion of tourism into the USA.the promotion of tourism into the USA.
 In addition, most of the US state governmentsIn addition, most of the US state governments
have their own tourist offices, which mainlyhave their own tourist offices, which mainly
does the promotion of US domestic tourismdoes the promotion of US domestic tourism
into their areas.into their areas.
 All these national and state NTOs act as policyAll these national and state NTOs act as policy
advisers for their governments. All haveadvisers for their governments. All have
established formal and informal links forestablished formal and informal links for
consultation and joint action with the tourismconsultation and joint action with the tourism
industry in their countries or regions.industry in their countries or regions.

6.  Around the world there are some 200 NTOs ofAround the world there are some 200 NTOs of
different sizes and organizational patterns.different sizes and organizational patterns.
 Nearly all of them are engaged in one or moreNearly all of them are engaged in one or more
aspects of destination promotion. Most of theaspects of destination promotion. Most of the
promotional effort organized by these NTOs ispromotional effort organized by these NTOs is
aimed at international markets.aimed at international markets.
 Research showed that larger branch netwrorks ofResearch showed that larger branch netwrorks of
NTOs such as those supported by Britain,NTOs such as those supported by Britain,
France or Greece, have over 30 offices in theFrance or Greece, have over 30 offices in the
main countries form which they receive theirmain countries form which they receive their
visitors.visitors.

7.  The yearly expenditure on marketingThe yearly expenditure on marketing
international tourism of the NTOs is between 1international tourism of the NTOs is between 1
million Euros and 1-10 million Euros. Themillion Euros and 1-10 million Euros. The
average marketing budget of NTOs is aroundaverage marketing budget of NTOs is around
0.003% of their international tourism receipts.0.003% of their international tourism receipts.
 Destinations with smallest budget include islandDestinations with smallest budget include island
states, small South American and former Eaststates, small South American and former East
European countries; medium range includeEuropean countries; medium range include
larger South American, larger former Easternlarger South American, larger former Eastern
European countries and smaller westernEuropean countries and smaller western
developed countries; OECD countries anddeveloped countries; OECD countries and
major world tourism countries have the largestmajor world tourism countries have the largest
budget.budget.

8. Strategies Applied by NTOsStrategies Applied by NTOs
 Basically, in marketing a country as aBasically, in marketing a country as a
destination, the role of NTOs are;destination, the role of NTOs are;
1.1. to reach prospective visitors with the help of theto reach prospective visitors with the help of the
promotional mix by increasing awareness andpromotional mix by increasing awareness and
influencing their attitudes and purchasing behaviorinfluencing their attitudes and purchasing behavior
-- promotional strategy,promotional strategy,
2.2. to facilitate the marketing activities of mainlyto facilitate the marketing activities of mainly
private sector operators of the tourism industry inprivate sector operators of the tourism industry in
the promotion of their own products -the promotion of their own products - facilitationfacilitation
strategy.strategy.

9. A promotional strategyA promotional strategy
 The strategy an NTO adopts in practice shouldThe strategy an NTO adopts in practice should
change according to the stage of the developmentchange according to the stage of the development
a country’s tourism.a country’s tourism.
 Where destinations are largely unknown in theWhere destinations are largely unknown in the
markets they seek to promote, where existingmarkets they seek to promote, where existing
tourism flows are small, and where the tourismtourism flows are small, and where the tourism
industry within the country is mainly weak, theindustry within the country is mainly weak, the
NTO has to take the leading role in playing aNTO has to take the leading role in playing a
major role in promoting its destination’smajor role in promoting its destination’s
products.products.

10.  To be effective, the promotional campaigns mustTo be effective, the promotional campaigns must
be of sufficient weight and impact to create thebe of sufficient weight and impact to create the
necessary numbers of potential buyers. But ifnecessary numbers of potential buyers. But if
budgets are not adequate for the task, expenditurebudgets are not adequate for the task, expenditure
on an image-creating strategy may in practice beon an image-creating strategy may in practice be
waste of money. Generally, the available budgetswaste of money. Generally, the available budgets
is not adequate to engage effectively in imageis not adequate to engage effectively in image
campaigns in several markets.campaigns in several markets.
 The marketing support of international operatorsThe marketing support of international operators
such as airlines, hotel chains and tour operators issuch as airlines, hotel chains and tour operators is
essential for success.essential for success.

11.  For better-known, well-established destinationsFor better-known, well-established destinations
such as Britain and the USA, the NTO shouldsuch as Britain and the USA, the NTO should
focus more of its expenditure on the strategy offocus more of its expenditure on the strategy of
support and facilitation and less on buyingsupport and facilitation and less on buying
media space for general advertising.media space for general advertising.

12. A facilitation strategyA facilitation strategy
 This strategy creates marketing bridges betweenThis strategy creates marketing bridges between
an NTO and the individual operators in thean NTO and the individual operators in the
travel and tourism industry. Under this strategy,travel and tourism industry. Under this strategy,
the basic functions of NTOs are;the basic functions of NTOs are;
 Establishing promotional priorities for specificEstablishing promotional priorities for specific
markets and segments.markets and segments.
 Coordinating the elements of tourism products.Coordinating the elements of tourism products.
 Providing support for new or growth products.Providing support for new or growth products.

13.  Creating cooperative marketing campaigns accessibleCreating cooperative marketing campaigns accessible
especially for the hundreds of small businesses, thatespecially for the hundreds of small businesses, that
would otherwise be unable to participate inwould otherwise be unable to participate in
marketing on a national or international scale.marketing on a national or international scale.
 These strategies bring the NTO and itsThese strategies bring the NTO and its
commercial sector together in joint operations.commercial sector together in joint operations.

14. Forms of facilitation by NTOsForms of facilitation by NTOs
 Some of the most important facilitationSome of the most important facilitation
processes used by NTOs are as follows;processes used by NTOs are as follows;
 Flow of research dataFlow of research data; by providing a regular, user-; by providing a regular, user-
friendly flow of research data to the tourism industryfriendly flow of research data to the tourism industry
(e.g. short reports on market trends), an NTO may(e.g. short reports on market trends), an NTO may
make valuable inputs to the marketing planningmake valuable inputs to the marketing planning
processes of individual businesses in all sectors.processes of individual businesses in all sectors.
These research surveys is more cost effective.These research surveys is more cost effective.

15.  Representations in markets of originRepresentations in markets of origin; by; by
establishing a network of offices in foreignestablishing a network of offices in foreign
countries, an NTO can create and maintain vitalcountries, an NTO can create and maintain vital
travel trade contacts, and act as a point oftravel trade contacts, and act as a point of
distribution for the destination’s products.distribution for the destination’s products.
 Organization of workshops and trade showsOrganization of workshops and trade shows;;
NTOs make arrangements where suppliers of touristNTOs make arrangements where suppliers of tourist
products may meet with prospective buyers atproducts may meet with prospective buyers at
relatively low cost. Either in the market of origin orrelatively low cost. Either in the market of origin or
at the destination, individual hoteliers, attractions,at the destination, individual hoteliers, attractions,
suppliers of conference facilities may be able tosuppliers of conference facilities may be able to
make contact and discuss business in one or twomake contact and discuss business in one or two
days of intensive meetings which on an individualdays of intensive meetings which on an individual
basis could take weeks to organize.basis could take weeks to organize.

16.  Familiarization tripsFamiliarization trips; by arranging visits for the; by arranging visits for the
selected foreign travel agents, journalists and tourselected foreign travel agents, journalists and tour
operators to the destination, NTOs can increase theoperators to the destination, NTOs can increase the
business between the travel trade in markets of originbusiness between the travel trade in markets of origin
and destination products. They are also a method ofand destination products. They are also a method of
improving the information available to customers atimproving the information available to customers at
key retail outlets and gaining better display space atkey retail outlets and gaining better display space at
point of sale. The trips also serve an important PRpoint of sale. The trips also serve an important PR
role and offer many opportunities forrole and offer many opportunities for
communicating key messages to influence people.communicating key messages to influence people.
 Travel trade manualsTravel trade manuals; it is customary for NTOs to; it is customary for NTOs to
produce one or more trade manuals which serve asproduce one or more trade manuals which serve as
references and guides for use by the travel trade. Areferences and guides for use by the travel trade. A
manual lists the details of all operators and theirmanual lists the details of all operators and their
facilities, and prices. These manuals provide accessfacilities, and prices. These manuals provide access
to foreign markets at low cost.to foreign markets at low cost.

17.  Support with literature production andSupport with literature production and
distributiondistribution; b; because printed materials are soecause printed materials are so
important in tourism marketing, some NTOsimportant in tourism marketing, some NTOs
produce “shells” for use by small businesses. Theseproduce “shells” for use by small businesses. These
are normally full color leaflets that containare normally full color leaflets that contain
photographs and empty spaces that may bephotographs and empty spaces that may be
overprinted by an operator’s logo and productoverprinted by an operator’s logo and product
messages.messages.
 Many NTOs sell advertising space in their range ofMany NTOs sell advertising space in their range of
brochures which they distribute overseas. Thesebrochures which they distribute overseas. These
brochures are very cost effective advertising mediabrochures are very cost effective advertising media
which small and medium sized businesses can reachwhich small and medium sized businesses can reach
international markets.international markets.

18.  Information and reservation systemsInformation and reservation systems; by using; by using
new computerized information technology, NTOsnew computerized information technology, NTOs
may assist sectors of their tourism industry bymay assist sectors of their tourism industry by
establishing central reservation systems in support ofestablishing central reservation systems in support of
the brochures. Travel agents and other distributorsthe brochures. Travel agents and other distributors
who can access products rapidly through one centralwho can access products rapidly through one central
reservation operation are likely to find this the onlyreservation operation are likely to find this the only
way to deal cost-effectively with small businesses.way to deal cost-effectively with small businesses.
 Support for new productsSupport for new products;; NTO can help newNTO can help new
products to emerge and establish themselves in theirproducts to emerge and establish themselves in their
markets in the initial 2 to 3 years after their launch.markets in the initial 2 to 3 years after their launch.
Smaller businesses are usually unable to afford theSmaller businesses are usually unable to afford the
start-up costs of national and internationalstart-up costs of national and international
marketing.marketing.

19.  Consumer assistance and protectionConsumer assistance and protection; the; the
marketing task does not end with the sale of amarketing task does not end with the sale of a
product. It extends into concern for customerproduct. It extends into concern for customer
satisfaction with the service delivery. NTO cansatisfaction with the service delivery. NTO can
define product quality standards in consultation withdefine product quality standards in consultation with
operators in tourism industry. These may includeoperators in tourism industry. These may include
minimum levels of equipment to be provided inminimum levels of equipment to be provided in
accommodation, and codes of good practice, e.g. inaccommodation, and codes of good practice, e.g. in
giving buyers full information in brochures. Thesegiving buyers full information in brochures. These
are done in order to ensure consumer satisfactionare done in order to ensure consumer satisfaction
and protection.and protection.

20. Destination Positioning Themes,Destination Positioning Themes,
Branding, Images and ConceptsBranding, Images and Concepts
 Whatever is the main strategy, promotion orWhatever is the main strategy, promotion or
facilitation, for marketing destinations, NTOsfacilitation, for marketing destinations, NTOs
need to choose the single-minded comunicationneed to choose the single-minded comunication
propositions (messages and symbols) that identifypropositions (messages and symbols) that identify
andand position or brandposition or brand their countries in thetheir countries in the
minds of prospective visitors to differentiateminds of prospective visitors to differentiate
them from the others.them from the others.

21.  Amazing Thailand, Incredible India, Turkey:Amazing Thailand, Incredible India, Turkey:
Mediterranean and more, Croatia: TheMediterranean and more, Croatia: The
Mediterranean as it once was; Greece: Live yourMediterranean as it once was; Greece: Live your
myth in Greecemyth in Greece are examples designed toare examples designed to
identify destinations with unique propositions.identify destinations with unique propositions.
 To be successful, such propositions must be;To be successful, such propositions must be;
 Based on genuine product values and attributes thatBased on genuine product values and attributes that
can be delivered and experienced and that visitorscan be delivered and experienced and that visitors
recognize as authentic, not fake.recognize as authentic, not fake.
 Readily understood by customers at the point ofReadily understood by customers at the point of
purchase.purchase.

22.  Involve at least the leading players in the commercialInvolve at least the leading players in the commercial
sector.sector.
 Incorporated into the promotional efforts of aIncorporated into the promotional efforts of a
country’s regions and resorts.country’s regions and resorts.
 Sustained over several years if they are to overcomeSustained over several years if they are to overcome
the communication inertia and barriers.the communication inertia and barriers.
 Systematically exploited in a co-ordinateSystematically exploited in a co-ordinatedd range ofrange of
sales-promotion and customer-servicing techniquessales-promotion and customer-servicing techniques
designed to reach visitors on arrival at thedesigned to reach visitors on arrival at the
destination as well as prospective visitors indestination as well as prospective visitors in
countries of origin.countries of origin.

23. SourcesSources
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for Hospitality and Tourism (2nd ed.). Prentice Hall: NJ.for Hospitality and Tourism (2nd ed.). Prentice Hall: NJ.
 Kotler, P. and Armstrong, G. (2006) Principles ofKotler, P. and Armstrong, G. (2006) Principles of
Marketing (11th ed.). Prentice Hall: NJ.Marketing (11th ed.). Prentice Hall: NJ.
 Middleton, V. T. C. (2004) Marketing in Travel andMiddleton, V. T. C. (2004) Marketing in Travel and
Tourism (3rd ed). Elsevier: Oxford.Tourism (3rd ed). Elsevier: Oxford.
 Middleton, V. T. C.; Fyall, A.; Morgan, M. AndMiddleton, V. T. C.; Fyall, A.; Morgan, M. And
Ranchhod A. (2009). Marketing in Travel and TourismRanchhod A. (2009). Marketing in Travel and Tourism
(4th ed). Butterworth-Heinemann: Oxford.(4th ed). Butterworth-Heinemann: Oxford.