Product Formulation in
Tourism
Objective: In response to the knowledge and forecasts on the
customer’s needs and wants, discussing how products are put
together.
Understanding Tourism Products
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There are two different dimensions for
understanding tourism products;
The overall tourism product; as far as the tourist is
concerned, the product covers the complete
experience from the time he leaves home to the time
he returns to it.
 The product of individual tourism businesses;
organizations in the industry have a much narrower
view of the products they sell, they focus primarily on
their own services.
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Components of the Overall Tourism
Product
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From the standpoint of a potential customer,
the product may be defined as a bundle or
package of tangible and intangible components.
The packaged is perceived by the tourist as an
experience.
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Destination attractions and environment
Destination facilities and services
Accessibility of the destination
Images of the destination
Price to the customer
Destination attractions and environment
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They determine customer choice and influence
prospective buyers’ motivations.
They include;
Natural attractions
 Built attractions (e.g. The World)
 Cultural attractions
 Social attractions
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Destination facilities and services
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They make it possible for visitors to stay and in
other ways enjoy and participate in attractions.
They include;
Accommodation units
 Restaurants, bars and cafes
 Transport at the destination
 Sports (interest) activity
 Other facilities (e.g. language schools)
 Retail outlets
 Other services (e.g. information services)
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Accessibility of the destination
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These are the private and public transport
aspects of the product that determine the cost,
speed and convenience.
They include;
Infrastructure (roads, airports etc)
 Equipment (size, speed of transport etc)
 Operational factors (routes, frequency etc)
 Government regulations
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Images and perceptions of the destination
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The attitudes and images customers have
towards products strongly influence their buyer
decision.
Destination images are not necessarily grounded
in experience or facts but they are always
powerful motivators in leisure and travel and
tourism.
Closely linked in prospective customers’ minds.
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All destinations have images, often based on
historic rather than current events
It is an essential objective of destination
marketing to sustain, alter, or develop images in
order to influence prospective buyers’
expectations.
The images of tourism businesses within
destinations are often closely related to the
destination image (e.g. Las Vegas)
Price to the customer
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Most destinations offer a range of products and
appeal to a range of segments, price in the travel
and tourism industry covers a very wide range.
Price varies by season, by choice of activities
and internationally by exchange rates as well as
by distance traveled, transport mode and choice
of facilities and services.
Components of Specific Products
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Core product; essential service or benefit
designed to satisfy the identified needs of target
customer segments.
Tangible product; the specific offer for sale
slating what a customer will receive for his
money.
Augmented product; comprises all the forms of
added value to the formal product offers to
make them more attractive.
Branding and Product Positioning
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Image, typically communicated by branding, is
identified as one of the components in the
overall tourism product and as a vital element
within the augmented product development and
marketed by individual businesses in the industry.
Tourism products are essentially intangible and
need to be communicated in ways that influence
consumers’ perceptions.
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Branding provides the core attributes of;
Statement of ownership.
 Means of identifying a product or service for
purchasers and distinguishes it from that of
competitors.
 Symbol of shorthand device to which expectations
of quality could be attached.
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 A brand is defined as “a name, symbol, design
or some combination, which identifies the
‘product’ of a particular organization as having a
sustainable differential advantage”.
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In practice, a strong brand has to exist in the
minds of consumers as a fusion of readily
understood values and benefits.
A brand offers the consumer relevant added
value, a superior proposition that is distinctive
from competitors (competitive advantage).
Consumers are prepared to pay a price premium
for strong brands.
Forms the basis of the “positioning”.
Advantages of Branding for
Travel and Tourism
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Helps reduce medium and long-term
vulnerability to the unforeseen external events
Reduces risk for the consumer, offers guarantee,
signals expected quality and performance of an
intangible product
Provides a common understanding and some
unity of purpose for staff etc
Branding is a strategic weapon for long-range
planning in tourism
Useful Links and Sources
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Kotler, P.; Bowen, J. and Makens, J. (1999).
Marketing for Hospitality and Tourism (2nd ed.).
Prentice Hall. NJ.
Kotler, P. and Armstrong, G. (2006) Principles
of Marketing (11th ed.). Prentice Hall. NJ.
Middleton, V.T.C. (2004) Marketing in Travel
and Tourism (3rd ed). Elsevier. Oxford.
http://www.hotelsmag.com
http://www.tourism.bilkent.edu.tr/~eda