Product Planning In Tourism Industry

The dynamic nature of the tourism environment implies that market trend in the sector is constantly changing, and so is the behaviour of tourists necessitating evaluation and analysis of the user of tourism products (Baker & Cameron, 2008). Changes witnesses in the macro environment also have implications for the sector by requiring that organizations gathers as much information about customers so as to address the different emerging customers segments and meet the needs of the target market (Baker & Cameron, 2008). Dolnicar (2008) also reiterates that the modern consumers of tourist products are not just segmented or heterogeneous, yet also a tricky one to please because different preferences they have on ideal tourism experience. In view

The products in this sector are also different from other ordinary products, even in marketing since it deals with service products as opposed to selling of physical or tangible goods. The intangible experience represents the major products for the industry and this means that tourists buy the products, and feels or experiences it, but does not own the product (Aziri and Nedelea, 2013). As defined by Hudson (2008), the industry’s products refer to the sum total of all elements, factors, and components that are brought together to satisfy the needs and wants of tourists as consumers. Product planning in tourism is essential to provide tourists with a package of products and increase profitability. (Hudson, 2008) furthers suggest that a comprehensive product planning considers all the likely levels of tourist products which include core products, tangible products, and augmented products. Decisions organizations make about their products is an interplay of market mix, organization’s long-term strategy and even branding (Hudson, 2008). Given the wide nature of the industry, and that products in the industry are sub-sector specific, Morrison (2010) suggests that it is suitable to approach product planning from the consumer’s point of view for profit and value maximization. One such approach is the six R theory of product formation considers customers, resources, and the entire targeted market. Below is the ‘R’ theory as proposed by Raina (2004) as cited in Hudson (2008). According to (Morrison, 2010), intensified competition makes branding an invaluable tool in positioning an organization by making its products distinct, competitive, and more satisfying than the competitors. As described by Keller (2003), cited in (Baker and Cameron, 2008), a brand is essentially a product, only that it is differentiated, more valuable, and more