Chapter 9 Commercial Recreation and Tourism. Welcome to the World of Commercialism in Recreation...
29
chapter 9 Commercial Recreation and Tourism
Chapter 9 Commercial Recreation and Tourism. Welcome to the World of Commercialism in Recreation Consists of 90% of the leisure industry. Is the overarching
Welcome to the World of Commercialism in Recreation Consists of
90% of the leisure industry. Is the overarching umbrella to the
leisure service industries aimed at profit or financial
self-sustainability. Is a gigantic industry where businesses
compete for a customers discretionary dollars. Tourism
organizations may also run as nonprofit or public operations.
Slide 3
Leisure Industry Model Local commercial recreation includes the
following: Entertainment Activities and programs Retail products
Travel and transportation includes the following: Ability to move
people Services Hospitality includes the following: Accommodations
Food and beverage Amenities Facilitators in each area are from a
variety of employment sources: travel agents, wholesalers, and
visitor and convention bureaus, to name a few.
Slide 4
Defining Types of Commercial Recreation Commercial recreation:
The provision of recreation- related products or services by
private enterprise for a fee, with the long-term intent of being
profitable. Commercialized public recreation: The provision of
selected recreation-related products or services by a governmental
or nonprofit organization in a commercial manner, with much or all
of the costs covered by fees, charges, or other nontax revenues.
(continued)
Slide 5
Defining Types of Commercial Recreation (continued)
Entrepreneurial recreation: The actions of a recreation-related
organization that searches for trends and changes in its
environment, then brings together and manages resources to exploit
those changes as an opportunity. Intrapreneurial recreation:
Creating and providing innovation of any kind within an
organization; working in a bureaucracy, such as a governmental
agency, to capitalize on opportunities.
Slide 6
Tourism Defined Tourism: Activities of people traveling to and
staying in places outside their usual environment for leisure,
business, or other purposes. Tourist: One who travels at least
overnight for business, pleasure, visiting relatives and friends,
or other purposes outside of the travelers residential area. May
travel for extended amount of time, up to a year. After a year, may
be considered residents of the place traveled to.
Slide 7
Challenges of the Tourism Industry One tourists expectations
may be so different from anothers that it is difficult to satisfy
all of the needs and expectations of the travel experience. Because
of the cost of travel, a visitor may be very disappointed if the
experience is less than perfect. There is constant pressure to
organize services so that the traveler experiences maximum
enjoyment.
Slide 8
Types of Travel Pleasure: Accommodations and food are
essential. Locations of experiences must be convenient. Tourists
engaging in new recreational experiences may put their health and
well-being at risk. Business: Supports business needs. Visits to
sites must conveniently fit into the business day or period. Travel
for other purposes: Educating residents about attractions is an
important way to attract this group of travelers who may be
visiting with family.
Slide 9
Characteristics of a Tourist Mass tourists prefer to be with
large groups: Will follow the crowds to events, attractions, and
other mass approaches. Happy being bussed, carted, fed, and
thrilled with millions of others. Individual tourists enjoy
individualized pursuits away from the crowd, e.g., a skilled
canoeist wants to be alone or nearly alone on a river.
Slide 10
Characteristics of the Tourism Industry 1.Accommodations
include myriad lodging opportunities. 2.Food service provides for
ones need for food. 3.Transportation moves people from place to
place. 4.Recreation and amenities are the variety of leisure
activities that attract travelers. 5.Managing the tourist
experience includes two major systems for coordinating travel for
tourists: Destination management organizations (DMOs) Meeting
management organizations (MMOs)
Slide 11
Types of Tourism Ecotourism: Responsible travel to natural
areas that conserves the environment and improves the well-being of
local people. Agrotourism: Diversification of the agriculture
industry to incorporate a tourism focus, e.g. wineries. Sport
tourism: Travel to participate in sport or to observe sport.
Cultural tourism: Being involved in the cultural heritage of a
locale.
Slide 12
Commercial Recreation and Tourism Segments Singles (individuals
and groups for social bonding) Families (with or without children)
Students (affluent teens) Elderly (55+) Diverse segments
(multicultural) Lifestyle segments (hobbies and clubs) Ability
(Americans with Disabilities Act)
Slide 13
Running a Commercial Recreation or Tourism Enterprise The
differences between a leisure enterprise and a typical
manufacturing enterprise include the following: A service is less
tangible than a product. Chief value of leisure experience is in
doing and reliving. Has a 3- to 5-year profit window compared with
a manufacturing business profit window of 1 to 2 years. Presents
the challenge of constantly responding to change and being
proactive with services as customers move from activity to activity
and fail to stay loyal to a standard set of experiences.
Slide 14
Leisure Services As a Product 1.Leisure experience can be
produced and consumed simultaneously. 2.Product itself is
intangible and therefore hard to measure. 3.It is difficult to
measure ones satisfaction. 4.Leisure consumer is hard to figure
out. 5.Factors of leisure experience are often not figured into a
marketing plan.
Slide 15
Elements of Success Business data. Use it to make
organizational decisions. Product. Market a sound idea or concept
to a definitive population. Demographics. Identify the right
combination of characteristics to market. Management. Develop a
business concept that can be effectively and efficiently run.
Finance. Determine and secure sources, projections, and ways to
organize. Location. Find an accessible site that attracts
people.
Slide 16
Organizational Aspects of Commercial Recreation and Tourism
Enterprise The business plan is important for the following
reasons: Is the heart of a business enterprise. Determines how a
business will receive and use fiscal resources to gain a profit
over a projected period. Includes marketing and financing
projections that turn into a work plan for the business start-up
and continuance.
Slide 17
Feasibility of a Commercial Recreation Business Conduct an
analysis of whether the proposed business will work according to
several levels of analysis: administrative, legal, market, service,
and site. Is it administratively sound? Will the legal form of
organization work? Is the site appropriate? Will the financial plan
work? Is the market appropriate?
Slide 18
Legal Formation of Business Sole proprietorship. Owners take
financial and legal responsibility for the business. Ones personal
finances are at risk. Full and limited partnership. Two or more
people either fully share the financial burden or assign the
financial responsibilities to limit liability. Risk is either fully
shared by the partners or divided by agreement. (continued)
Slide 19
Legal Formation of Business (continued) Corporation. A
corporation lowers tax liability and personal legal responsibility
and assigns it to the corporate entity. It is usually selected once
profits are being earned. Franchise. A franchise consists of a
chain of existing businesses that allows owners to buy into the
business. The franchiser makes available many resources for
start-up. (McDonalds is a form of franchise.)
Slide 20
Elements of Marketing 1. Substitution. Plan for changes in
consumer interests. Prepare business for new activities that may be
substituted for those that are no longer popular. 2. Niche.
Identify unique feature of your business and promote it. 3.
Guerrilla marketing. Aggressively market to uncover new markets and
other ways to get to the customer. 4. Value. Consider value system
of each niche group and play to those values in promoting services.
5. Campaigns. Plan long-range and short-range campaigns that
increase volume and customers.
Slide 21
Funding Sources Venture capital. Provided by companies and
investors willing to take a risk on a new enterprise that may not
necessarily have a strong track record. Personal. Comes from
personal sources such as friends, relatives, and personal savings.
Money is put up as a part of the total investment against loans
applied for through small-business investors or banks.
(continued)
Slide 22
Funding Sources (continued) Bank loans and other sources.
Start-up finance, cash-flow funding, and inventory funding are
available through conventional financing or Small Business
Administration (SBA) funding. Going public. A business that is
successful eventually may go public by selling stock to investors.
This source of income results in a sharing of corporate wealth with
shareholders, who buy stock and receive a return on
investment.
Slide 23
Alternatives to Traditional Financing Franchises: Have already
provided a proven product and make low-cost financing and resources
available to the franchisee. Low-cost loans, marketing assistance,
and operational consulting during start-up may save the business
owner money before realizing a profit. Buying an existing business:
Provides collateral, reputation, and good will. Financing is easier
to secure. Start-up costs may be lower because of existing
location, decor, inventory, trained staff, and other advantages.
(continued)
Slide 24
Alternatives to Traditional Financing (continued) Incubators:
Acquisition of small grants to support product development,
feasibility analyses, and other forms of start-up activity.
Extensions of an existing business: Adding a feature that will make
a business more profitable and result in greater success without
borrowing more money. Publicprivate cooperative venture: Close
cooperation with local government may yield a business partnership
that involves tax breaks, use of public land instead of buying
property, use of buildings, and securing investment in
infrastructure.
Slide 25
Playground Discussion: Trends in the 21 st century What will be
the most influential trend(s) of the commercial recreation and
tourism industry in the 21st century and whybe sure to fully
support your answers?
Slide 26
Why Businesses Fail Poor planning, impulsive decision making,
and organizational conflicts between partners contribute to failure
in the following ways: 1.Undercapitalization 2.Inability to
anticipate changes in economy 3.Poor succession management 4.Poor
operational management 5.Inflexibility
Slide 27
Career Paths in the Leisure Industry Recreation specialist. The
programmer is essential to all leisure experiences regardless of
the setting. Meeting manager. Possess the leadership and
programming skills necessary to become an excellent organizer of
conventions and meetings. Event manager. Same skills of meeting
manager may be converted into a variety of events designed for
small and large groups. Tour guide. Coordinates tours for various
interests. Administrator. Moving into top management in any one of
the tourist and commercial recreation segments is appropriate for
one with training in recreation and resource administration.
Slide 28
Trends in the Commercial Recreation and Leisure Industry Baby
boomers will generate the highest volume of travel in the United
States. Tourists are willing to pay to protect the environment.
Global capacity for cruise ships will be reached in the near
future. Vacation residence ownership will increase. Greater
emphasis on partnerships with public sector will increase the
number of commercial recreation businesses on public land.
Technology will affect the way people access leisure and plan for
use of facilities and area. Continued effects of terrorism are
changing the nature of travel for most tourists.
Slide 29
Discussion: Subject dynamic trends Select one of the following
dynamic trends that will affect the burgeoning commercial
recreation and leisure industry in the coming years: Baby boomers
will generate the highest volume of travel in the United States.
Travelers will be increasingly more willing to pay more to protect
the environment. Worldwide capacity for cruise ships will be
reached in the near future. Increases in vacation residence
ownership will occur. A greater emphasis on partnerships with the
public sector will increase commercial recreation business on
public land. Technology will affect the way people access leisure
opportunities and plan for use of facilities and areas. Terrorism
will continue to change the nature of the travel of most visitors.
Instructions Identify the strategies to counteract the challenges
that face the commercial recreation and tourism industry. Then,
pose questions and responses to your posting.