product development for tourism

Tourism and Hospitality Products, Branding, and Pricing

• First Online: 09 May 2021

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• Richard George 2  

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This chapter explores how marketers design and manage tourism and hospitality products. It begins with definitions for the terms “product”, “offering”, and “product mix”. It the chapter explains that the product is a complex concept that should be considered on three levels. These are the core, expected, and augmented product. Next, the product life cycle concept is discussed and how it is used by the tourism marketer to assess the development of tourism products. Next, the steps involved in the process of developing a new product are considered. In the second section of the chapter, the role of branding in the tourism and hospitality industry is discussed. The third section of the chapter considers the price component of the marketing mix. The factors that affect the pricing of tourism and hospitality products and the various pricing strategies available to the tourism and hospitality marketer are analysed. Next, several pricing approaches used in the tourism industry are considered. The chapter concludes by outlining the characteristics of tourism and hospitality products in relation to price. Last, the chapter’s in-depth case study demonstrates the principles of pricing as applied to medical tourism company MakeOvertour , based in Turkey.

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George, R. (2021). Tourism and Hospitality Products, Branding, and Pricing. In: Marketing Tourism and Hospitality. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-64111-5_8

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Handbook on Tourism Product Development

Publication date: Oct 2011

Language: English

Tourism products are the basis for a destinations tourism sector operation: unless the tourism product meets the needs and expectations of tourists, the destination cannot realise its full potential. However, only few destinations focus their attention on the development and delivery of the various attractions and activities that make up the tourism product.

The UNWTO/ETC Handbook on Tourism Product Development outlines the essential elements in the process of tourism product development planning and implementation, e.g. coordination, consultation, collaboration co-opetition. It illustrates these principles through a range of successful approaches and case studies from around the world and sets out best practice examples and benchmarks by which destinations can assess their own product development system and methods.

Executive Summary

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• Handbook on Tourism Product Development

Background:

The World Tourism Organization and European Travel Commission appointed Tourism Development International to develop of a ‘best practice’ Handbook for Tourism Product Development Manual to assist National Tourism Administrations and Organisations (NTAs/NTOs) and other destination marketing organisations (DMOs), including those at regional and local levels, through the provision of ready-to-use tools, and guidance on why and how product development should be adopted, and what kind of role they should have in the destination’s product development.

Project Objectives:

The purpose of the Handbook on Tourism Product Development was the production of a practical, user-friendly and accessible handbook that inspires the implementation of, or improvement in, the existing methods and uses of effective product development in tourism. A key objective was to empower the staff of NTAs/NTOs and similar organisations with superior knowledge to enable them to initiate and oversee a successful product development strategy.

Project Activities:

• Definitions
• Destination Survey of WTO’s/DMO’s
• Consultations with Private Sector
• Preparation of Case Studies
• Principles of tourism product development
• Toolkit and guidelines for tourism product development
• Presentations, seminars and workshops

Project Outcome and Impacts:

The Handbook is being used by national tourism organisations and regional tourism organisation officials throughout the World as a tool in facilitating effective tourism product development planning. It is available for purchase through the UNWTO and ETC websites. 

UNWTO - Hanbook on Tourism Product Development Purchase

Fundamentals & Principles of Tourism Product Development, Presentation by Peter Mac Nulty to the Tourism Forum Switzerland

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How to get started developing your tourism product

Whether you are offering guided tours, boat rentals, accommodation or provide river cruises, you are offering services to your customers. For today’s tourists, just a service is not enough. They seek experiences, often even experiences that contribute to their quality of life. This document offers you guidelines to identify your customers’ needs and to develop innovative products, services or experiences that really matter to them.

Contents of this page

• Why develop your product with this method?
• This is what you need before you start
• Get inspired by your (potential) customer (Step 1)
• Make a persona for each type of customer (Step 2)
• Identify the core needs of the customers and the key opportunity areas for your business (Step 3)
• Develop a multitude of ideas for solutions, or new products, services or experiences (Step 4)
• Turn your best ideas into prototypes that can be tested and improved step by step (Step 5)
• Test your prototypes in practice (Step 6)

1. Why develop your product with this method?

The needs of tourists from Europe have evolved over the past few decades. Current tourists are looking for quality service and experiences that really matter to them. To offer quality and experiences that matter to your customers, you need to know them very well, personally. What quality means for some may be different from what it means to others. And an experience that is life-changing for some, may be dull to others. This report teaches you how to get in touch with your customers, how to learn what they really need to boost their quality of life, and how you can design products, services or experiences that really matter. The nice thing is that if you succeed, your customers will share their experiences with their friends and followers, also on social media. In other words: they will promote your product to others. For free!

The current coronavirus crisis has put international travel under pressure . In many countries, tourist arrivals have nearly dropped to zero. It is likely that international tourism will be affected by the COVID-19 crisis for the next couple of years. Several scenarios are possible. The frequent holidays made by Europeans to faraway destinations may decrease and this may turn into less frequent and longer holidays closer to home. The battle for tourist visits may become fiercer. The attention for sustainability may also increase. Europeans might be willing to travel longer distances, but only for a very good reason. To tempt potential tourists from Europe to come to your country, your region or your business, you need to stand out, to understand the traveller well and be super-innovative – more than ever. Amazing stories and experiences may become even more important. As will issues of safety, security and assisting tourists in returning to their home countries.

• Read more on this in our study on how to respond to COVID-19 . This study offers insight into actions you should take immediately, while also providing guidance on long-term decisions.   

The method described in this report is based on the principles of design thinking. It has been employed internationally in all kinds of businesses. To mention a few examples in tourism:

• Destinations like the Bahamas (an example is the One-Stop Online Booking and Immigration Card ).
• Design for All , also referred to as ‘universal design’, to allow access for people with disabilities. You can read more about this in this thesis .  
• Hotels. For example Hyatt Hotels has developed various prototype hotels around the world, which are free from regulation. Another example is The next-generation hotel experience , getting the details right to improve travellers’ stays, and designing a modern work experience for business travellers .
• Visitor attractions, like improving the tourist experience of the Polar Bear Society , a visitor attraction in Norway, or bringing Tourists to a hidden coastal gem .
• Travel and transport. Examples are pioneering a car-sharing service and developing a customer strategy for public transport in Oslo.
• Restaurants, like creating a fresh and modern take on the Indian culinary experience .
• Organisation and development. An example is turning a historic music college into a collaborative learning platform .
• Tourism-related services. An example is the mobile visitor centre in Saint Paul, Minnesota. Another example is to ‘design of waste out of the food system’, taking place in a collaboration between hotels, food banks, foundations, and entrepreneurs to fight food waste .  

2. This is what you need before you start

The procedure described below is not difficult. To follow the steps, it helps to have a few basic tools – but only if you already have them) – since it is the idea of how you are doing this that is important .

• Lots of sticky notes (Post-its)
• Sheets of flipchart paper

In product development, we try to find a match between the needs of the European market and any of your local situation and business resources that might entail certain limitations. The following tips are related to this.

• Where possible, engage your customers to build a personal relationship and to get to know them well.
• If you find it difficult to engage with customers from a different culture or find it difficult to understand them, try to work with local partners who can serve as intermediaries (such as tour operators in source countries) with the guests or act as interpreter.
• Involve others working in your business or in other businesses in the community where you live, people working in education, or other people with an open and positive mind. This will make it more fun and rewarding. It will also contribute to the quality of the work.
• To work through the process described below, you may want to ask support from a local CBI coach and or an intern from a university abroad, for example via SAVE tourism .

Below, the steps are described to help you to develop innovative products and services for new and existing customers. Staying tuned with the market is an ongoing process. The outcomes of each step are illustrated in Figure 1.

3. Get inspired by your (potential) customer (Step 1)

You can only create meaningful products, services and experiences for your customers if you truly understand them. So try to understand the situations and experiences that are or might be meaningful to them. If you do not have any customers yet, or are looking for new customers, you need to get your inspiration from existing market intelligence (step 1a). If you already have customers, you can use these customers as a source of inspiration (step 1b).

a. Get inspired by potential customers

The largest share of potential customers doesn’t know you or your product offering, or perhaps even the destination. So you have to draw their attention by offering products and services that matter. What do you need to do to make a start?

• Get access to market intelligence reports of the European market. Subscribe to free newsletters or blogs of market intelligence institutions, such as UNWTO , WTTC , Global Sustainable Tourism Council or IATA . Read the annual UNWTO publications , such as Tourism Highlights and World Tourism Barometer .
• Review and read the market intelligence information provided by CBI . This webpage gives access to a CBI trend report and promising market segments and target groups on the European market.
• These sources will help you to identify important (emerging) trends and markets in Europe on a regular basis.
• Try to identify a few target groups or niches that may feel attracted to your business.

b. Get inspired by existing customers

When customers make use of your service business they could also inspire you to make new products. This means that you would need to involve them in the development process. Do not ask them what they want (as they may not know) with a questionnaire, but try to get an idea of the needs they have in a different way.

There are three nice alternative methods you could use, although there are other methods available as well, such as the ones in Ideo’s free Human Centered Design Toolkit . The first time you do so, it might make you feel uneasy to approach a customer. However, always remember that communication with them is key in developing a better product or service.

• It is your duty as an entrepreneur to look after your customers. So you can see it as part of your job to observe your customers during different phases of their customer journey and to learn to understand this customer journey through their eyes. Such observation should be done discreetly and quietly, so as not to disturb or annoy them while enjoying their holiday or business trip. It gives you insights into what they think, what they do, how they interact with others, and what they dream and wish for. While you observe your customers, you can also make notes. Afterwards, you need to find a moment that suits your customer to share your observations in an informal setting, and ask questions about things you did not expect, did not understand, or what they found appropriate. Again, make notes!
• You may also ask your customers whether they would like to help you with improving your services. Ask your customers to take photographs . You could also ask your customers to document their customer journey with a camera and to take pictures of what they consider appropriate products or services. When they give you the pictures, ask them whether there is a suitable moment for them to share some thoughts about these. When you discuss them, do not forget to make notes. Do not insist if a person does not want to cooperate, but try others instead.
• The third approach also requires asking your customers for help in making your services more appealing to them. Ask your customers whether they are willing to take a number of ‘memory cards’ along with them while using your product or service. These cards have to be printed by you beforehand in a kind of postcard format (such as in Figure 2). Ask your customers to fill in a card each time they experience something they did not expect, or which they find very positive or negative. Ask them to return the cards to you by the end of each day or when they leave. If they are open to doing so, ask them whether they have time to share their thoughts with you. If so, be sure you make notes.
• Download and make use of the print version of the ‘memory card as shown in Figure 2.

A useful way to describe an individual customer is by using a puppet template. A puppet template is a simple picture of a single customer surrounded by clouds, words bubbles and icons, such as illustrated in Figure 3. Ideally you would make a puppet template together with a customer. This shows that you are open and willing to build a personal relationship with them. A good moment is when you have the chat about the observations, the photographs that they took, or the memory cards that they filled in. During this conversation you could also talk about the person’s age, where they come from, their work, what they do in their daily life, their main interests in life, their worries, their wishes and dreams, or their preferences in tourism. This generates a lot of relevant background information. Take notes! Each customer you talk with gets a separate puppet template.

You will end up with a number of puppet templates. Review the puppet templates and take a closer look at each one. What do you see? You will probably discover that some of the templates are similar to one another. This means that you have already started to understand your customers a little better! Now, group together the puppet templates that show similarities. Each group represents a type of tourist that makes use of your business .

• Involve people in your business or community to assist you with understanding the language or the culture of the customer.
• They may help you with making puppet templates and with grouping the templates into types of tourists.
• Download and use of the print version of the puppet template shown in Figure 3.

4. Make a persona for each type of customer (Step 2)

In the previous step, you grouped the puppet templates with similarities together. Each group represents a type of tourist who could be attracted to your business. Now the challenge is to turn each type of tourist into a market description. You will do this in the form of a so-called persona: one persona for each type of tourist. You might end up with 4-8 personas. You may need to go back to the market intelligence and the puppet templates in step 1 for detailed information. A persona describes each tourist profile, point for point. It would be nice to add a quote on each persona to bring them to life.

A persona includes:

• List of ages & countries or origin
• List of work and ambitions
• Details about personal lives
• List of main interests
• List of wishes, preferences and dreams
• You may want to add photographs (for example from magazines) and quotes that characterise the type of customer
• Key locations they went to
• Alone? Or with whom?
• What did they like and what not?
• Which emotions did they show?
• Key issues, needs, dilemma’s

Most organisations have their own template. The Interacting Design Foundation explains the use of personas in a video . In the figures below, you will find a few examples with different levels of detail and a different style. You can put each persona on a different flipchart sheet.

5. Identify the core needs of the customers and the key opportunity areas for your business (Step 3)

Now you need to identify the most prominent needs, hurdles, issues or disappointments of each type of customer (persona).

• What would be remarkable events and experiences for that persona? What were remarkable events and experiences for that persona?
• What would be stunning likes for that persona? What were stunning likes for that persona?
• What would be striking issues, hurdles, disappointments, wishes or needs for that persona? What were striking issues, hurdles, disappointments, wishes or needs for that persona?
• You may need to go back to the market intelligence and puppet templates in step 1 for possible answers.
• Write each possible answer on a separate sticky note no matter from which persona. Try to get at least 25 sticky notes in total. More would be even better.
• When you are finished, group the Post-its together into areas of which you think they could have a positive impact on your customers’ experiences. Label each grouping of Post-its with a short telegram-style sentence that identifies the impact area . You could write these labels on a Post-it. A label could be, for example: “customers need more personal attention during the excursion”, “customers like to enjoy local cuisine”, or “customers need to be able to connect online”.
• Finally, turn each label into a positive opportunity for your business, also known as an opportunity area , and write it on another Post-it that you put at the top of the label. The header could be for example: “much personal attention during excursion”, “provide local cuisine to the customer”, “adequate Wi-Fi network”.
• Try to do this step with your team or with people from the community.

Now you have created opportunity areas for your business! It would be great if you were able to end up with anywhere between two to five such opportunity areas.

6. Develop a multitude of ideas for solutions, or new products, services or experiences (Step 4)

During the previous steps you started with collecting a lot of information that, step by step, you worked into just a few opportunity areas for your business. Now we will try to generate ideas for new products, services or experiences that matter to your customers for each opportunity area. Ideally, you should take this step together with colleagues in your business (not just senior staff!). If you think it is outside the range of your core business, you may also want to involve other businesses in your community.

For a long-term benefit, you first need lots of ideas to get a single good one. This one idea should be innovative and really different from the others. It might be a completely new solution to a problem customers did not even know they had. Do not be satisfied with an obvious solution!

How does it work?

Brainstorm for each opportunity area

Write out each idea on separate Post-its

Sort and group/cluster the ideas that you wrote down

• Brainstorm for each opportunity area that you created in the previous step. Come up with as many ideas as possible. Try to think of weird solutions, products, services or experiences. Never worry whether ideas are right, wrong, absurd or obvious. That hampers your creative flow of thoughts. If you do it with your team you might end up with dozens of ideas.
• Write each idea on a separate Post-it . If it helps you to understand it better, you can make a drawing of what you have in mind.
• Next, sort and group the ideas that you wrote down . Put the bad ideas to the side. Group the ideas that go well together into clusters. Give each cluster a label that tells you what the overarching idea is that the cluster is about. Brainstorming for the opportunity area “provide local cuisine to the customer” could lead to the following labels (Figure 5): start our own restaurant; authentic design of the restaurant; involve local farmers; kitchen staff recruitment and training programme; sustainable waste treatment.
• If you take a closer look at the clusters with the labels, you might get ideas about more details. You can write these down on additional Post-its. For example, once you have made a cluster with the label ‘waste treatment’, you may add other ideas: the name of a certification programme you would like to comply with; how you want to adhere to the certification programme; aspects of how you organise the waste flow in the restaurant and kitchen; communication of the certification with the customers, etc. So the labels give you inspiration to add to the clusters to make these more specific.

You will end up with a shortlist of your best ideas for solutions: new products, new services or new experiences. It is a good idea to show the ideas to some of your customers for feedback. In the case of Figure 6, you would end up with the following products and services: authentically designed restaurant (product); strengthened involvement with the community (service and products); collaboration with regional/national educational institutions to train qualified kitchen staff to be skilled at cooking, but to also always pay attention to hygiene rules; a certified waste treatment service.

7. Turn your best ideas into prototypes that can be tested and improved step by step (Step 5)

Now is the time to create a first design for the ideas for new products or services that you have created. We call this a prototype . If you make such a detailed design, this will help you to understand your idea better, but also to determine whether you have the resources to implement it, and whether there are any unforeseen challenges or consequences. These things are important for long-term success.

• Select the ideas that could upgrade one of your business’s current products or services or be integrated with such a product or service. These ideas will probably be the easiest to develop because they fit best with your everyday work.
• For each of the products or services that you selected, make a detailed description of how you want it to be designed. We call this a prototype of your product or service.

How do you make a prototype?

• Take a large piece of paper, such as a flipchart sheet, for each of your innovative ideas.
• Draw a cross on each sheet in order to divide it into four quarters. Each quarter is dedicated to one building block of your product or service idea, as illustrated in Figure 5.
• Describe and visualise what each building block would look like according to you. Put your description into a few sentences. Also use a few sketches, drawings and/or cartoons. You can use simple shapes, because the quality of the sketch is not so important at this stage.

• Start with the name.
• Write down the persona(s) who would feel attracted to the product because it matches their needs. You need to go back to the steps you completed earlier.
• Write down an appealing story about your new product or service that can be communicated with the European market. If you have a website, you can put the name and story of your new product/service there.

Each sheet that you have finished is a prototype of the ideas that you have created for innovations for your business. These are ready to be tested, like the prototype of a new car or airplane that is tested in a wind tunnel.

Never worry that your prototype is incomplete or indistinguishable from the final product that you have in mind. This will be dealt with later in the process.

8. Test your prototypes in practice (Step 6)

The final step is to put your innovative idea into practice and offer it to your customers as you have described and visualised it in your prototype. It is a process of learning by doing. You get feedback from your customers on what worked and what did not. Based on this feedback, you then create a new and improved version of your product, service or experience. Then you once again get feedback and make more improvements. In this way, your product or service will improve step by step.

• Do not expect immediate success but accept that you can make mistakes now that otherwise would cost you a lot of money later on.
• See it as a learning process. Be open to the feedback and do not defend your prototype if the users are less positive than you expected. Try to get as much feedback and suggestions for improvement as possible.
• Try to put some speed and efficiency in this phase. This will help you with moving quickly from prototype to putting it to the test, to gathering feedback, and then to making a better version of your product or service.
• Never forget that new trends and new markets will arise. This means that your customer and the needs of your customers may change over the years. This is why you need to restart at step 1 every few years to stay tuned to the needs of the market.

This study was carried out on behalf of CBI by   Molgo  and  ETFI .

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Tourism Planning and Destination Marketing

ISBN : 978-1-78756-292-9 , eISBN : 978-1-78756-291-2

Publication date: 29 November 2018

This chapter introduces its readers to the concept of tourism. It sheds light on the rationale for tourism, as it explains the tourists’ inherent motivations to travel. It also describes different aspects that together make up the tourism industry. Tourists travel to destinations that are accessible to them. They require accommodation if they are visiting a place for more than 24 hours. Leisure and business travellers may also visit attractions, and engage in recreational activities. Hence, the tourist destinations should have the right amenities and facilities. In this light, this chapter clarifies how destinations may offer different products to satisfy a wide array of tourists. Tourism products can include urban (or city) tourism, seaside tourism, rural tourism, ecotourism, wine tourism, culinary tourism, health tourism, medical tourism, religious tourism, cultural (or heritage) tourism, sports tourism, educational tourism, business tourism (including meetings, incentives, conferences and events), among others.

• Hospitality
• Destination
• Destination marketing
• Tourism intermediaries
• Travel agencies
• Destination management
• Accommodation
• Low cost airlines

Camilleri, M.A. (2018), "The Planning and Development of the Tourism Product", Camilleri, M.A. (Ed.) Tourism Planning and Destination Marketing , Emerald Publishing Limited, Leeds, pp. 1-23. https://doi.org/10.1108/978-1-78756-291-220181001

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Product management for Travel and Tourism

If you're looking to excel in the travel and tourism industry, understanding product management is essential.

Travel and tourism is a constantly evolving industry where the competition is fierce, and the demands of customers are ever-changing. With so much competition in the market, it's critical for businesses in this industry to have an effective product management strategy in place. In this article, we'll explore the ins and outs of product management for the travel and tourism industry, covering everything from defining product management to the key components of travel and tourism products.

Understanding Product Management in Travel and Tourism

Before diving into the specifics of product management for travel and tourism, it's essential to understand what product management is all about. Product management can be defined as the process of conceptualizing, strategizing, planning, and executing the development, marketing, and delivery of products and services to customers. Product management is all about meeting customer needs and creating solutions that help them fulfill their goals and objectives.

Product management is a vital aspect of any business, and it is particularly important in the travel and tourism industry. The travel and tourism industry is highly competitive, and businesses need to create compelling products and services that stand out from the crowd. Product management helps businesses in the travel and tourism industry to create products and services that meet the needs of customers while also achieving business objectives such as profitability and growth.

Defining Product Management

Product management is a complex and multifaceted business discipline that encompasses a range of essential activities. Market research and analysis are critical components of product management. Market research helps businesses to understand customer needs and preferences and to identify opportunities for new products and services. Product development is another critical component of product management. Product development involves creating new products and services that meet customer needs and preferences.

Pricing and revenue management are also essential components of product management. Pricing strategies can have a significant impact on the success of a product or service. Businesses need to develop pricing strategies that are competitive and that offer customers a unique value proposition. Revenue management involves optimizing revenue streams by adjusting prices and availability based on demand.

The Role of a Product Manager in Travel and Tourism

The product manager plays a crucial role in product management in the travel and tourism industry. The product manager is responsible for overseeing the entire lifecycle of a product, from ideation to launch and beyond. This includes conducting market research to identify customer needs and preferences, defining the product strategy, collaborating with internal teams such as marketing and sales, and working with external suppliers and partners.

The product manager is also responsible for ensuring that the product meets the needs of customers and achieves business objectives such as profitability and growth. This involves monitoring the performance of the product and making adjustments as necessary to ensure that it continues to meet customer needs and remains competitive in the marketplace.

Key Components of Travel and Tourism Products

Travel and tourism products are a combination of physical goods, such as transportation and accommodations, and services such as tours, activities, and experiences. To create a marketable product, businesses in travel and tourism need to develop products that resonate with customers, meet their needs, offer a unique value proposition, and differentiate themselves from competitors.

Quality is a critical component of travel and tourism products. Customers expect high-quality products and services, and businesses need to deliver products and services that meet or exceed customer expectations. Convenience is another essential component of travel and tourism products. Customers want products and services that are easy to use and that make their travel experiences more enjoyable.

Accessibility is also critical in the travel and tourism industry. Customers want products and services that are accessible and that meet their needs. Businesses need to develop products and services that are accessible to all customers, including those with disabilities. Affordability is also important in the travel and tourism industry. Customers want products and services that offer good value for money.

Safety is another critical component of travel and tourism products. Customers want products and services that are safe and that provide a secure travel experience. Businesses need to ensure that their products and services meet safety standards and that they take steps to minimize risks and hazards.

In conclusion, product management is a vital aspect of the travel and tourism industry. Businesses in this industry need to develop products and services that meet the needs of customers while also achieving business objectives such as profitability and growth. The product manager plays a crucial role in product management, overseeing the entire lifecycle of a product, from ideation to launch and beyond.

Market Research and Analysis

Market research and analysis are critical components of product management in the travel and tourism industry. It involves gathering and analyzing data to identify target markets, analyze competitors, and understand customer needs and preferences. By conducting market research and analysis, businesses can develop products that align with customer needs and preferences while offering a unique value proposition and competitive advantage.

Identifying Target Markets

Target markets can be defined as specific groups of customers that a business wants to target through its products and services. In travel and tourism, target markets can be segmented based on several factors, such as age, gender, income level, travel preferences, leisure activity interests, and travel behavior. For instance, a travel company may target millennials who prefer adventure travel, while another may focus on baby boomers who prefer luxury travel.

By identifying target markets, businesses can tailor their products and services to meet the specific needs and preferences of their target customers. This can help them to create more effective marketing strategies, improve customer satisfaction, and increase revenue.

Analyzing Competitors

Competitor analysis is essential in identifying the strengths and weaknesses of competitors in the travel and tourism industry. By analyzing competitors, businesses can find ways to differentiate their products, identify gaps in the market, and create more effective marketing strategies.

For instance, a travel company may analyze its competitors' pricing strategies, marketing campaigns, product features, and customer reviews. This can help the company to identify areas where it can improve its products and services and gain a competitive advantage.

Understanding Customer Needs and Preferences

Understanding customer needs and preferences is crucial in developing travel and tourism products that meet customer needs and deliver a great customer experience. By conducting customer research through surveys, focus groups, and other techniques, businesses can gain valuable insights into customer behavior, preferences, and expectations.

For instance, a travel company may conduct surveys to understand its customers' preferred travel destinations, accommodation options, activities, and budgets. This can help the company to develop products that meet its customers' needs and preferences and deliver a personalized customer experience.

In conclusion, market research and analysis are essential in product management in travel and tourism. By identifying target markets, analyzing competitors, and understanding customer needs and preferences, businesses can develop products that meet customer needs, deliver a great customer experience, and gain a competitive advantage.

Product Development and Design

Product development and design are key components of effective product management in travel and tourism. Effective product development requires businesses to create unique and appealing travel experiences, incorporate sustainability and responsible tourism practices, and collaborate with suppliers and partners.

Creating Unique and Appealing Travel Experiences

Creating unique and appealing travel experiences is critical for businesses in travel and tourism to stand out from the competition. One way to achieve this is by developing products that offer a personalized experience for customers. For example, a travel company could create a customized itinerary for a family vacation that includes activities tailored to the ages and interests of each family member.

Another way to create unique travel experiences is by incorporating local culture and traditions into the product. This could include offering cooking classes that teach customers how to make traditional dishes or organizing cultural tours that showcase local art and music.

Incorporating Sustainability and Responsible Tourism

Sustainability and responsible tourism are becoming increasingly important for customers in the travel and tourism industry. By incorporating sustainable practices and responsible tourism principles into product development, businesses can appeal to a growing customer segment that is environmentally conscious and socially responsible.

One way to incorporate sustainability into product development is by offering eco-friendly accommodations and transportation options. For example, a hotel could install solar panels to reduce its carbon footprint or a tour company could offer electric bike rentals instead of gas-powered vehicles.

Another way to promote responsible tourism is by working with local communities to ensure that tourism benefits the local economy and environment. This could include partnering with local businesses to offer locally sourced products or organizing beach clean-up events to promote environmental conservation.

Collaborating with Suppliers and Partners

Collaborating with suppliers and partners is vital for businesses in travel and tourism to create effective products that meet customer needs and offer a unique customer experience. By working with suppliers and partners, businesses can create a network of resources that can help them create more effective products.

One way to collaborate with suppliers and partners is by conducting market research to identify customer needs and preferences. This information can then be used to develop products that meet those needs and preferences.

Another way to collaborate with suppliers and partners is by sharing best practices and knowledge. For example, a hotel could share its sustainability practices with other hotels in the area to promote environmental conservation.

In conclusion, effective product development and design are crucial for businesses in travel and tourism to succeed. By creating unique and appealing travel experiences, incorporating sustainability and responsible tourism practices, and collaborating with suppliers and partners, businesses can differentiate themselves from the competition and appeal to a growing customer segment that values personalized and socially responsible travel experiences.

Pricing and Revenue Management

Pricing and revenue management are essential components of product management in travel and tourism. Effective pricing strategies require businesses to set competitive prices, utilize dynamic pricing techniques, and maximize revenue through ancillary services.

Setting Competitive Pricing Strategies

Setting competitive pricing strategies requires businesses to analyze the market and competitors to identify optimal price points. By setting competitive prices, businesses can attract and retain customers while maintaining profitability.

Utilizing Dynamic Pricing Techniques

Dynamic pricing techniques can help businesses adjust prices in real-time based on supply and demand, customer behavior, and other factors. By utilizing dynamic pricing techniques, businesses can optimize revenue and profitability while also meeting customer needs and expectations.

Maximizing Revenue through Ancillary Services

Ancillary services refer to additional services that businesses can offer to customers to enhance the customer experience and increase revenue. Examples of ancillary services in travel and tourism include airport transfers, travel insurance, and in-flight meals. By offering ancillary services, businesses can increase revenue while also delivering a better travel experience to customers.

In conclusion, effective product management is critical for businesses in travel and tourism to remain competitive and meet customer needs. By understanding the key components of product management, businesses can develop effective products that meet customer needs, differentiate themselves from competitors, and maintain profitability and growth.

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At one extreme, tourism product development can be defined as embracing all elements with which the visitor to a destination comes into contact. This includes infrastructure (e.g., transport, utilities), the service personnel, places of lodging, attractions, activities, facilities, and amenities.

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At a more focused level, tourism product development can be defined as comprising only those attractions, activities, and facilities provided explicitly for the visitor.

The tourism product development is the process by which the resources of a destination are shaped to meet international and domestic customers’ requirements. This covers everything from humanmade facilities or attractions to activities requiring varying levels of physical input and organized events such as festivals and conferences.

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How to develop sustainable travel products customers want

Many travellers want to buy sustainable travel products but don't because of limited availability, a price premium or low credibility, among other factors. Image:  Unsplash/Mantas Hesthaven

.chakra .wef-1c7l3mo{-webkit-transition:all 0.15s ease-out;transition:all 0.15s ease-out;cursor:pointer;-webkit-text-decoration:none;text-decoration:none;outline:none;color:inherit;}.chakra .wef-1c7l3mo:hover,.chakra .wef-1c7l3mo[data-hover]{-webkit-text-decoration:underline;text-decoration:underline;}.chakra .wef-1c7l3mo:focus,.chakra .wef-1c7l3mo[data-focus]{box-shadow:0 0 0 3px rgba(168,203,251,0.5);} Jesko Neuenburg

David walfisch, natalie nehme, maksim soshkin.

.chakra .wef-9dduvl{margin-top:16px;margin-bottom:16px;line-height:1.388;font-size:1.25rem;}@media screen and (min-width:56.5rem){.chakra .wef-9dduvl{font-size:1.125rem;}} Explore and monitor how .chakra .wef-15eoq1r{margin-top:16px;margin-bottom:16px;line-height:1.388;font-size:1.25rem;color:#F7DB5E;}@media screen and (min-width:56.5rem){.chakra .wef-15eoq1r{font-size:1.125rem;}} Travel and Tourism is affecting economies, industries and global issues

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Stay up to date:, travel and tourism.

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• Travel and tourism firms are increasingly looking to develop sustainable travel products, but they need to be made more desirable to customers.
• Many travellers want to buy sustainable travel products but don't because of limited availability, a price premium or low credibility, among other factors.
• The How to Create the Sustainable Travel Products Customers Want report outlines what companies can do to create successful products.

Travel and tourism companies are increasingly looking to develop sustainable travel products to capitalize on growing consumer interest in environmentally and socially sustainable journeys, and address the industry’s role in meeting global climate and other environmental, social and governance (ESG)-related goals.

However, successful travel offerings will need to be made desirable to customers by bridging the ‘say-do gaps’ around limited availability, lack of awareness, low credibility, price premium, cumbersome purchasing experience and lack of rewards or acknowledgment.

These roadblocks are common reasons why customers may avoid purchasing sustainable travel offerings, thereby explaining the discrepancy between travellers’ stated intention to travel sustainably and actual booking behaviour.

Have you read?

Why these are the smartest and most sustainable cities, 11 climate leaders share their visions for saving the planet: sustainable development impact meetings, digital technologies can make the real world more livable and sustainable. here's how.

Overcoming the say-do gap roadblocks and further guidance on developing sustainable travel products are some of the main themes covered in the newly-released How to Create the Sustainable Travel Products Customers Want report.

Published in collaboration with Accenture, this World Economic Forum paper is backed by research on consumer travel behaviour and product portfolios of 50-plus travel and tourism companies and involved industry stakeholder consultations and case study interviews with representatives from the aviation, hospitality and car rental and ride-sharing ecosystem.

The resulting white paper provides an overview of existing sustainable travel products and configurations, includes recommendations for creating sustainable products, and presents the industry with a necessary call to action.

The sustainable travel products landscape

Typically, sustainable travel products touch on issues such as carbon reduction, water safeguarding, waste management, worker and community inclusivity, and the protection of natural and cultural heritage.

For the purpose of the report, travel products that address carbon emissions within the aviation, hospitality and car rental and ridesharing were analyzed, with 12 mainstream sustainability features found.

As shown in in the graphic below, these can be grouped into three main decarbonization levers spanning a scale of companies’ effort and integration levels. Sustainable travel products are built according to these categories, starting with a low effort level with compensation strategies, and passing through more robust reduction and zero-emissions strategies.

Under the compensation lever, carbon-offsetting services are a common choice offered to customers by most companies covered in the analysis of the white paper. These services help prevent (avoidance offset) or capture (removal offsets) carbon emissions through mechanism like reforestation and carbon capture, usage and storage.

Reduction products directly produce less carbon emissions and vary by industry. These include the use of more efficient latest-generation aircraft in aviation and optimizing energy efficiency of facility systems like ventilation and air-conditioning in hospitality.

For zero-emissions products, different maturity levels exist, depending on the segment. In aviation electric and hydrogen propulsion aircraft are still under development, while some hotel chains’ properties are already entirely powered by renewables. For car rental and ride sharing, a zero-emission product is also commercially available today in the form of battery-electric vehicles.

Lastly, visibility features such as carbon calculators, filters and green badges can serve as enablers for all the sustainable product types. These tools can help travellers identify sustainable travel offerings and the impact of their purchase decisions, thereby nudging them to make more sustainable choices.

Products can be configured in various ways

It is also important to mention that all of the above offerings can be configured in various ways. For instance, carbon offsets are often offered as an ancillary option during the purchase of an existing travel product or services (for example, as an extra purchase option at the end of booking a flight).

On the other hand, the use of more efficient latest-generation aircraft by airlines is an example of embedded products , as the composition of an airline’s fleet is not a customer choice, but the sustainability benefits of newer planes still become part of the core product.

Particularly for embedded products, the use of visibility tools is key to enabling customer decisions and competitive differentiation. For example, carbon calculators can help customers identify flights flown on the latest-generation aircraft and green certifications achieved through practices such as using renewable energy can help such offerings to stand out in the hospitality space.

How to build sustainable products that customers want

Addressing the say-do gap roadblocks will be key to improving the above sustainable products’ adoption by customers. Several strategies can be used for this purpose, thereby building the foundation for a cycle of sustainable product development.

These recommendations include increasing product availability, improving the customer experience, reducing the green premium and providing suitable product value and impact, focusing on customer incentives and recognition, and educating consumers through greater focus on product credibility and awareness.

• Develop sustainable products: Continually develop new sustainable products and refining existing one based on customer feedback and industry trends.
• Provide a frictionless experience: Simplify the booking process by adding filters and options to compare alternatives and select sustainable products to help travellers make informed decisions.
• Improve the value proposition: Improve the perceived and actual value delivered to travellers through the sustainable product by having lower prices or highlighting the sustainability and other benefits of the offerings in ways that help justify higher prices (i.e., competing on value, not price).
• Recognize and reward customers: Reward travellers’ sustainable choices through incentives and the opportunity to showcase their sustainable behavior.
• Increase awareness: Educate travellers about sustainable travel products, alternatives, and their environmental impact.
• Improve transparency and alignment: Provide clear information on calculation methodologies, underlying criteria, and clear traceability of environmental action.

In addition, investment in technology, data and analytics and related competencies will be critical factors in successfully creating sustainable travel products.

Moreover, sustainable travel product development challenges can’t be tackled in isolation and will require cross-industry and stakeholder collaboration and alignment.

In the report, we have outlined an industry wide call to action that will help overcome the existing roadblocks.

During COP26 the World Economic Forum and the Clean Air Fund launched the Alliance for Clean Air , the first global private sector initiative to tackle air pollution.

The Alliance for Clean Air brings together business leaders committed to measuring and reducing value chain air pollutant emissions, investing in innovation, and working with policy makers and peers to champion the social, economic and climate benefits of tackling air pollution.

Announced at COP27, the Alliance for Clean Air announced the release of a guide to help businesses deliver on their commitments to reduce air pollution across value chains and get ahead of sustainability reporting standards.

A Practical Guide For Business Air Pollutant Emission Assessment – developed by the Stockholm Environment Institute, Climate and Clean Air Coalition, and Inter IKEA Group – enables alliance members to quantify the air pollutant emissions along their value chains from key sectors, including electricity generation, transport, industrial processes, agriculture and waste. This has enabled them to consider the impact of their existing climate mitigation strategies on air pollution and ways to increase their ambition through specific air pollution mitigation measures. It is an important contribution that businesses can take to enhance their sustainability strategies.

Also announced at COP27, companies interested in learning more about the business case for tackling air pollution as part of their climate strategies can access a new business action toolkit launched in partnership with Accenture and the Clean Air Fund.

If your company is committed to improving air quality contact us to express interest in working with us.

Examples include sharing success stories about sustainable travel products, aligning across the industry on sustainability metrics and reporting standards, working with supply-chain partners and aligning with local governments and communities on local sustainability initiatives and needs.

Implementing products for more sustainable travel is possible, but stakeholders across the industry need to work together to create them.

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WTTC, UN Tourism and the Sustainable Hospitality Alliance join forces to support Nature Positive Tourism

Glasgow Declaration Implementation Report 2023 – Advancing Climate Action

The Glasgow Declaration on Climate Action in Tourism Implementation Report 2023 presents the results of a systematic review of all progress updates received from signatories during the first reporting exercise conducted between January and June 2023 (over 400 updates), which in many cases include the submission of a Climate Action Plan (over 250 plans).

Policy Guidance to Support Climate Action by National Tourism Administrations

This policy guidance has been developed to assist governmental agencies dedicated to tourism to develop policies and initiatives that will support the low-carbon transition of the sector. This policy guidance provides examples of good practice from around the world to illustrate how NTAs can implement climate-enabling policy and other initiatives as well as benefit from climate initiatives in other sectors.

European Committee of the Regions and UN Tourism break new ground with study on Rural Tourism and Development in Europe

UN Tourism has partnered with the European Committee of the Regions for a comprehensive study of the significant impact and potential of tourism in fostering socio-economic development in rural areas.

UN Tourism and Croatia to Establish Research Centre for Sustainable Tourism

UN Tourism is to work with the Government Croatia and the University of Zagreb to establish a research and development centre focused on sustainable tourism.

UN TOURISM ON THE GROUND

Un tourism completes a series of training benefitting 250 female tourism entrepreneurs across rural areas in moldova.

UN Tourism has laid the foundation in Moldova for a new approach to achieve the SDGs by empowering women in the tourism sector through skills training and quality education, and by promoting gender equality and working together as a community. This pioneer strategy is widely recognized by key tourism stakeholders in the country and is already attracting interest from other development partners.

TOURISM DEVELOPMENT AND PROMOTION IN GREATER GABORONE

Activities have begun for the comprehensive study of priority tourism sites in Greater Gaborone, Botswana, from which to build a future study to develop investment models and guidelines using sustainable tourism principles. UN Tourism is on the ground from 15-26 April for the launch and inspection visits, and to meet with a wide-ranging group of stakeholders to ensure the sustainable development of the identified sites.

SUSTAINABLE DEVELOPMENT

Global tourism plastics initiative.

The Global Tourism Plastics Initiative unites the tourism sector behind a common vision to address the root causes of plastic pollution. It enables businesses, governments and other tourism stakeholders to lead by example in the shift towards a circular economy of plastics.

Circular Economy

Circularity represents a strategic approach for the tourism sector, notably from the point of view of minimizing its environmental impacts, including waste and pollution as well as CO2 emissions, given the potential of a circular economy to decouple economic growth from resource use.

Sustainable Tourism Data and Statistics

Measuring the sustainability of tourism (mst).

The Statistical Framework for Measuring the Sustainability of Tourism (MST) is an internationally agreed reference framework for measuring the economic, social and environmental aspects of tourism.

SDG Indicators

The UN Tourism is custodian to two SDG indicators from the Global indicator framework. These two indicators are: Indicator 8.9.1: Tourism Direct Gross Domestic Product (Download metadata) Indicator 12.b.1: Implementation of standard accounting tools to monitor the economic and environmental aspects of tourism sustainability.

69th Meeting of UN Tourism Regional Commission for the Americas

Varadero, Cuba - 30 April 2024 (UN Tourism Members only)

High-Level Thematic Event on Tourism - United Nations General Assembly

Online, 14th May at 09:00 - 10:30 CEST and 15th May at 16:00 - 17:30 CEST

UN Tourism in the media

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• All matters related to creation and maintenance of Tourism Assets Bank and subsequent research and content collation.
• All matters related to overall strategy.
• All matters related to partnerships with private sector, start-ups, others for attractions and experiences creation.
• All matters related to inter-ministerial convergence across tourist touch points.
• All matters related to ‘Meet in India’ and development of MICE Tourism, ‘Heal in India’, development of AYUSH, Wellness, medical tourism, ‘India says I Do’, development of wedding tourism, eco-tourism, Vibrant Villages Program, Best Tourism Villages, Central Nodal Agencies for Sustainable Tourism and Rural Tourism & Rural Home stays, Mega Adventure Trails and other aspects related to tourism sub-sector ecosystem development.