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14 Cards in this Set
- Front
- Back
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Factors that influence the selection of a location for travel and tourism |
Locational factors such as follows:
Costs
Availability of suitable premises
Character of an area
Local and transient population
Adjacent facilities
Access/transport links
Availability of staff |
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Costs |
Prime locations- cost money Landowners in areas with potential for tourism development - will charge the highest possible rates to sell their land.
As areas become more developed and land becomes less available hence, the cost of acquiring land or premises will increase further. This will limit the choice of where many travel and tourism providers are able to locate their travel and tourism products and services. |
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Availability of suitable premises |
Travel and tourism providers require suitable premises in the central business district in tourism destinations.
International organizations plan with precision the global distribution of their facilities using locational analysis to determine the best sites for their premises. |
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Character of an area |
Plays a significant part in selecting an appropriate location. Areas- political instability, high crime rates, and social deprivation - do not always make the best tourist destinations.
They also consider the standards of living and general living costs in the areas they choose for tourism development. |
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Local and transient population |
It is important - to have easy access to local populations in terms of workforce and potential customer base for travel and tourism providers.
There's a need to be a transient population to make full use of the facilities being offered.
This requires adequate infrastructure to be in place to accommodate this transient population. |
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Adjacent facilities |
It is beneficial to have linked tourism facilities close by such as cafes near to tourist attractions, restaurants and bars close to hotels
Enabling customers to gain easy access to a wide range of amenities.
Providers- will make an assessment of the proximity of any competitors. |
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Access / transport links |
It's important to ensure that there is the necessary level of infrastructure available to support high volumes of visitors. There's need to be a satisfactory road and railway network, with sufficient carrying capacity to deal with expected number of visitors. To ease traffic congestion- park and ride schemes are needed. |
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Availability of staff |
In order to act as a source of labour. Some organisations - skilled and experienced workforce from other countries, when first establishing a presence in a new destination, whilst the local workforce receives training.
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Range of distribution channels for travel and tourism products and services |
Direct selling - is the process whereby customers are able to obtain products and services they require straight from the provider. Uses no intermediaries hence able to reduce costs. However, the provider must take sole responsibility for the marketing and promotion of their products and services. |
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Wholesalers |
Tour operators (wholesalers) By buying products directly from the travel and tourism principals.(airlines, hoteliers, etc) Travel agents who in turn sell it to the customer. In terms, of the commission they must pay and for the customer because the final price of the product will reflect the fact that a wholesaler and a retailer also need to earn money from the process. However, by using 2 intermediaries does enable travel and tourism providers to gain access to a much wider customer base, with additional marketing and promotion efforts being made on their behalf. |
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Retailers |
Travel agents - act as an intermediary for travel and tourism providers selling products and services through high street and online outlets. They receive a commission fee for their involvement in the process. Some principals in the travel and tourism industry own their own travel agency operations, but this limits the range of products and services that they sell, although saves on costs in terms of commission payments. |
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Marketing |
The Management process responsible for identifying, anticipating and satisfying customer requirements profitably. |
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Marketing can also be defined- |
It is the strategic business function that creates value by stimulating, facilitating and fulfilling customer demand. |
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Promotion |
As any form of communication or activity carried out specifically to call attention to the products and services of a particular organisation. |
