INNOVATIVE APPROACH TO TOURIST PRODUCT DEVELOPMENT: Best Business Practices for Crisis Prof. Dr. ARMANDO DE LUCAS WORLD TOURISM ORGANIZATION - UNWTO MADRID COMPLUTENSE UNIVERSITY - UCM Innovative Approach to Tourist Product Development From … the economy of “abundance” to … the economy of “austerity”… Innovative Approach to Tourist Product Development …The Tourism will still beeing THE TOURISM. “ To know what is right and not to do it is the worst cowardice. ” Confucius THE ISSUES Innovative Approach to Tourist Product Development TOURISM POLICY PARADOX TOURISM POLICY AMBICIOUS GOALS TOURISM POLICY MEAGER INSTRUMENTS Innovative Approach to Tourist Product Development TOURISM POLICY IN A CRISIS CONTEXT ➚ Financial Threats and Opportunities ➚ Economic Threats and Opportunities ➚ Institutional Threats and Opportunities Innovative Approach to Tourist Product Development TOURISM POLICY IN THE XXI CENTURY CRISIS OR NOT… …TOURISM IS A BUSINESS TOURISM AS A BUSINESS + A PUBLIC MACROMANAGEMENT INSTRUMENT + GOVERNANCE Innovative Approach to Tourist Product Development TRANSVERSAL ISSUES CLIMATE CHANGE SUSTAINABILITY TOURISM G DEVELOPMENT INT’ FAIRNESS RE-ESTRUCTURING TOURISM POLICY AND GOVERNANCE Innovative Approach to Tourist Product Development TOURISM TOURISM POLICY POLICY SECTORIAL SECTORIAL POLICY POLICY TRANSVERSAL TRANSVERSAL POLICY POLICY Objective: Improve competitiveness conditions of the tourism sector. Tourism: Activity that involves the whole economy. It shares objectives with the Public Policies: welfare, employment… THE OBJECTIVES Innovative Approach to Tourist Product Development AS A SECTORIAL PUBLIC POLICY •Strategic positioning •Quality •Creation of added value AS A TRANSVERSAL PUBLIC POLICY •Stability •Efficiency •Redistribution of added values INSTRUMENTAL OBJECTIVES •Planning •Promotion •Macromanagement THE INSTRUMENTS... ... IN TIMES OF CRISIS Innovative Approach to Tourist Product Development TOURISM POLICY SECTORAL ISSUES POSITIONING: (STRATEGY) MANAGEMENT: (QUALITY) RE-ENGINEERING: (EFFICIENCY) STRATEGIES INFORMATION COORDINATION ENVIRONMENT INNOVATION TECHNOLOGY HUMAN CAPITAL INVESTMENTS FEED BACK IDENTIFYING PROCESSES ALTERNATIVE DEFINITION OF PROCESSES EVALUATION OF PROCESSES ESTABLISHING BEST PRACTICES IMPLEMENTATION FEED BACK Innovative Approach to Tourist Product Development OBJECTIVES AND INSTRUMENTS OF TOURISM POLICY TOURISM POLICY FINAL OBJECTIVES TOURISM POLICY FINAL OBJECTIVES INSTRUMENTAL INSTRUMENTAL OBJECTIVES OBJECTIVES -- LEVEL LEVEL 11 INSTRUMENTAL INSTRUMENTAL OBJECTIVES OBJECTIVES -- LEVEL LEVEL 22 INSTRUMENTS INSTRUMENTS MEASURES MEASURES ACTIONS ACTIONS Innovative Approach to Tourist Product Development KRIPPENDORF CHART Tourism Policy Plan Final Objective Instrumental obj. level1 Social Objectives Economic Objectives Environm. Objectives Instrumental obj. level2 Improve life quality of involved actors Competitive/profitable tourism sector Cultural & environment. friendly Tourism quality improvement Tourism I + D Preserve natural and urban environment Education and training in tourism Consumer protection Information improvement Improvement human capital Supply diversification Promotion and commercialization Entrepreneurial fabric Infrastructures improv. Preserve traditions and cultural roots Preserve traditions and cultural roots THE INSTRUMENTAL POLICIES Innovative Approach to Tourist Product Development TOURISM POLICY AS A TRANSVERSAL POLICY TOURISM TOURISM POLICY POLICY AS AS A A TRANSVERSAL TRANSVERSAL POLICY POLICY Common instruments with other Public Policies Monetary instr. Fiscal instr. Knowledge Management instr. Innovative Approach to Tourist Product Development KNOWLEDGE MANAGEMENT POLICIES ISSUES OF SPEED EFFICIENCY FAIRNESS OF INSTRUMENTS Tourism Labor and Knowledge Observatories Innovation Education and Training Voluntary & Enforced Standards Norms DEMAND & SUPPLIES POLICIES *THE BEST PRACTICES Innovative Approach to Tourist Product Development DEMAND POLICIES ➚ From flows information to inform on value added ➚ Co-management and governance ➚ Quality before quantity ➚ Economies of scale in marketing → Agreements, publicpublic partnerships, public-private partnerships ➚ Focused on final consumer ➚ From generic brands to prestige brands ➚ New role of intermediaries Innovative Approach to Tourist Product Development SUPPLY POLICIES ➚ “Catalogue” – reduce oversupplies ➚ Repositioning – Restructuring ➚ Broadening – Diversifying – Relabeling ➚ Redefining complementary offer (attractors and services) ➚ Deep changes in transport logistics. Control ➚ From tourism destination to clusters concept ➚ Tourism brands: Improvement of contents & standardization Innovative Approach to Tourist Product Development TRANSVERSAL ACTIONS IN CRISIS CONTEXT ➚ From the economy of “abundance” to the economy of “austerity” ➚ Accessibility strategies. Economies proximity ➚ Supply control and restructuring ➚ From quality to exceeding expectations, surprise, reinvent, innovate ➚ Business management new culture → Value chain/network … As Confucius said …What can we do? Innovative Approach to Tourist Product Development 1. Local Economy and International Relationship 2. Social References of the destinations. 3. The Product Quality and his Touristic Ressources 4. Image Focus and Positionning These 4 items turn complexe the Touristic PRODUCT and the OFFER systems Innovative Approach to Tourist Product Development z z z z Internet and the new infotechnologies are the revolution Nowadays any product can’t admit not having a website If you don't have I+TP you don't exist in the MARKET This principal vantage is a cheap cost for a big spread in crisis time for the Tourism Industry Innovative Approach to Tourist Product Development ¾ 4 S's Tourism ¾ ¾ ¾ 3 L's Tourism ¾ ¾ ¾ SUN SEA SAND SEX It's a main market during summer holidays LANDSCAPE 2nd vacations (short LEISURE weekends) during the year LEARNING Innovative Approach to Tourist Product Development ¾ Our objective is The Tourism Product Development. For Example: • Great Capitals • Metropolis • Historic Wall Cities • Interesting Areas • Historic Capitals • Entert. Tourism Dests. Paris N.York – Tokio Dubrovnik – Carcassone (Fr) Oxford – Cambridge - London Rome – Venice – Seville Las Vegas - Disney Innovative Approach to Tourist Product Development Info & Express Reservations e- T Profile Using JUST the Internet + Websites City Break (The Favourite) Transport – Flight Hotel Preferences Interests – Cultural, gastronomic etc. Short and Long trips As The Spanish former President Suárez used to say: “ I have two ways to farewell, one is short, and the other is long… …So today I brought the long one…” THANK YOU FOR KIND HOSPITALITY Adolfo Suárez