MARKET Strategies in Different Phases of Destination Life Cycle

DESTINATION LIFE CYCLE (TALC) & MARKETING STRATEGIES IN OPENING PHASE, GROWING PHASE AND DECLINING PHASE.

JEEVESH VISWAMBHARAN

DESTINATION Destinations are defined in the travel industry are

specific areas that travellers choose to visit and where they spend a significant amount of time.

The selection of a destination by a tourist depends upon the purpose and motivation for travel.

Destination as a product has been defined as an amalgamation of three main components- attractions of the destination, the facilities over there and the accessibility to it.

INTRODUCTION The idea that destinations experience a process

analogous to birth, growth, maturation and perhaps a decline or death is embodied in the concept of destination lifecycle.

The destination life cycle should not be regarded as unavoidable process , but rather one that can be redirected through appropriate management to realize the outcomes that are desired by the destination stakeholders.

Drawing on earlier researches done in 1960s and 70s by Walter Christillaner, Stanley Plogg , Doxey and Stanfield, Richard .A. Butler presented his S shaped resort cycle model that proposes tourism destination experiences five stages- exploration, involvement ,development, consolidation and stagnation under free market conditions and sustained demand conditions.

The value in understanding the nature of destination life cycle is in its relationship with marketing strategy. It will alert the destination stakeholders to the need for positive action at the thresh hold point where some changes in the strategy will be essential if the destination attractiveness is to continue.

TOURISM AREA LIFE CYCLE

This model explains that tourism destinations experience five stages of growth:

Exploration Involvement Development Consolidation Stagnation

EXPLORATION During this stage, the number of visitors are small

and are scattered through the destination for extended periods.

Tourist are adventurous, allocentric types drawn by authentic and unspoiled natural &cultural attractions.

Linkages are extensive due to the desire to consume local products and hence multiplier effect is high and leakage is non-existent.

Seasonality is non existent and environmental impacts are very low .

Economic status of tourism is ignorable , specialized accommodation is not available and seasonality is non-existent.

Pre-Euphoria state in Irridex index EXAMPLE: Northern Canada, Amazon,

Greenland, Siberia, Central Asia, large parts of rural China.

INVOLVEMENT There are two major developments in this stage- Increase in number of visitors ending the low level

of equilibrium in the exploration stage. Local entrepreneurs begin to provide some

amount of specialized services and facilities to the tourists.

Tourist are allocentric-midcentric and the length of stay is relatively long.

Visitor numbers are large enough to generate significant revenue , but the tourism is incipient enough that the destination maintains local control and extensive backward linkages.

Euphoria stage of Irridex .

DEVELOPMENT This stage is characterized by rapid tourism

growth and dramatic changes in tourism sector over a relatively short period of time.

A rapid erosion of local control occurs as the community is overwhelmed by the scale of tourism development.

The uniqueness of the place associated with exploration and involvement stages is replaced by generic international style landscape.

Environmental stress is high, linkages are mainly non –local and leakages are major.

Attractions are highly commercialized and seasonality factor is dominant.

Apathy in initial stage of Irridex gives way for annoyance among large sections of the population.

CONSOLIDATION In this stage the level of tourism exceeds the

environmental, economic and social carrying capacities of the destination. This leads to detioration of tourism product.

Tourism dominates the local economy and the destination is wholly integrated in to large scale globalized tourism systems.

The rate of visitors have levelled off and some facilities may be in of up gradation.

Seasonality emerges as a major influence on the destination.

Antagonism and resignation stage of Irridex index. EXAMPLE: Gold Coast(Australia),Waikkai( Honulu)

STAGNATION

During this stage the peak visitor numbers and the level of associated facilities are attained.

The surplus capacity becomes a problem prompting price wars.

The destination is no longer considered fashionable.

It is at the stage of consolidation, stagnation or decline that managers need to intervene and take action to avoid the decline.

DECLINE The scenario of decline will occur as result of

some combination of the following factors- Repeat clients are no longer satisfied with the

product and the attempt to attract new visitors fail.

New competitors emerge to divert and capture traditional market sources.

No attempts are made by the destination stakeholders to revitalize the local tourism product or the attempts are unsuccessful.

Resident antagonism progresses to the scale of outright and widespread hostility and contributes to the negative image of the destination.

REJUVENATION Another alternative is rejuvenation. It is also possible that rejuvenation will take place

following a period of decline with decreasing numbers serving as a catalyst for the action.

According to Butler, rejuvenation is almost always accompanied by the introduction of entirely new tourism products or at least radical reimaging of the existing product.

EXAMPLES This was the case of Atlantic city to introduce

gambling, a monopoly held by Las Vegas. Another example is the product restructuring of

Miami beach.

MARKETING STRATEGIES -OPENING PHASE

The type of consumer who purchases a product may be different when a new product is introduced with those purchasing the product at a later stage in the cycle.

Early buyers of a product are frequently experimenters willing to take chances for novelty or status of being in possession of a little known product.

This market segment will have disposable income and will be more ‘value- conscious’ than ‘price conscious’.

The product image will be based on its uniqueness and its appeal to status or curiosity.

Advertising and promotion will be aimed at communicating this message to a specific market using the most suitable channels and giving potential consumers maximum information about the product’s benefits.

The tourists themselves are adventurous , allocentric types who are drawn by what they perceive to be authentic and unspoiled cultural and natural destinations.

GROWING PHASE Once the product become well

established ,the competitors would have introduced their own version of the product into the market.

Faced with a growing choice of products, the consumer may become confused and uncertain about which to select.

The marketer’s role then becomes one of the persuading and constantly reminding the consumers about the product’s benefits, ensuring convenience of purchase by maximizing distributive outlets , manipulating the price to keep it competitive and reinforcing the brand image associated with the product

DECLINING PHASE

The decline phase will occur as a result of combination of the factors:

Repeat clients are no longer satisfied with the product, while efforts to recruit new customer fails.

No attempts are made by the destination stakeholders to revitalise the product or attempts are unsuccessful

Negative image of destination due to local hostility.

New competitors and intervening opportunities emerge to divert and capture traditional market sources.

EXTENDING PRODUCT LIFE CYCLE Promoting more frequent use of the tourism

offerings in the destination among the current tourists which require targeted sales and promotion drive.

Developing and promoting more varied uses of products among current markets by packaging existing products more effectively- more features, experiences etc (market penetration)

EXAMPLES Farm tourism, Granja Porcon, Peru Thermal tourism, Turkey Medical tourism in Karnataka, Kolkota shopping

festival

CREATING NEW IMAGE/ REBRANDING Kerala God’s Own Country Incredible India Pattaya beach(Thailand) REVITALISING A PRODUCT- Maidstone Museum, London

DE MARKETING

This is discouragement of certain market segments from visiting the destination during certain periods, through a range of prohibitive measures or by charging premium prices.

Examples of these techniques include: Visitor management techniques in protected

areas. Premium pricing policy to discourage certain

section of population from visiting the destination.

REFERENCES

Marketing for tourism,4th edition- J . Christopher Holloway

Tourism management,3rd edition-David Weaver, Laura Lawton