PRODUCT DEVELOPMENT IN

TOURISM
Tourism product development means bringing new and innovative products, experiences,
and services to the market for tourists to buy. Product development can take many
forms. For example, you have identified a gap in the current marketplace and decide to
develop a product or experience to meet the demand. Product development could mean
developing a product or experience that is already being offered in the area but is new to
your business. Or, if you are already a tourism operator, you may be looking to expand
your existing tourism offerings to include additional services, experiences, or tangible
products such as souvenirs.
There are many stages of product development, but they all begin with identifying a need
in the marketplace. Once you have identified the need for a particular product, you will
want to come up with a concept or idea. You will then want to create a plan for how you
will bring your idea to life. You will have an opportunity within this booklet to generate
product ideas, learn how to develop a product based on your target market, and create a
plan for turning your ideas into products. Developing products that are tailored to
visitors’ needs will improve the profitability of your tourism business. Making more
products available to tourists will increase the length of time that they stay in the NWT,
increase the amount of money they spend, and encourage new and repeat vistors.

What is tourism product?

A tourism product is a good, a service, or a package of goods and services for people to
purchase while visiting a new destination. Tourism products and services help visitors
explore the destination that they are visiting by offering them the chance to view
attractions, shop for souvenirs, take tours, or purchase experiences. Tourism products
are much more than just the tangible souvenir tourists take home to their friends and
families
Why is product development needed in tourism
industry?

1. Meeting Customer Demands:

• Tourism is a highly competitive industry, and customer preferences are
constantly evolving. Developing new and innovative products helps meet
the changing demands of travelers, ensuring that tourism businesses stay
relevant and attractive to their target audience.
2. Diversification:
• Introducing new products allows tourism businesses to diversify their
offerings. This diversification can attract a broader range of customers
and reduce the impact of seasonality or economic fluctuations on the
business.
3. Competitive Advantage:
• In a crowded market, having unique and well-developed products gives
businesses a competitive edge. It helps differentiate one business from
another and can be a key factor in attracting and retaining customers.
4. Revenue Growth:
• Developing new tourism products can lead to revenue growth. By offering
a variety of services or experiences, businesses can tap into different
market segments and increase their overall sales.
5. Adaptation to Trends:
• The tourism industry is influenced by trends, such as changes in consumer
behavior, technology, and environmental awareness. Product development
enables businesses to adapt to these trends and stay ahead of the curve.
6. Enhancing Customer Experience:
• Developing new products often involves improving the overall customer
experience. Whether it's introducing new technology, enhancing service
 quality, or creating unique itineraries, product development contributes to
a positive and memorable experience for travelers.

7. Destination Development:
• Tourism product development is not only about individual businesses but
also about developing destinations. Creating attractive and diverse tourism
products contributes to the overall development of a destination, making it
more appealing to a wide range of visitors.
8. Community and Cultural Preservation:
• Responsible tourism product development considers the impact on local
communities and cultures. It can provide opportunities for communities to
participate
• in tourism and can contribute to the preservation of cultural heritage.
• Adaptation to Changing Consumer Preferences:
• Consumer preferences can change rapidly due to factors such as
demographic shifts, technological advancements, and global events.
Tourism businesses need to adapt to these changes by continuously
developing and refining their products to meet the evolving needs of
consumers.
• In summary, product development in the tourism industry is crucial for
staying competitive, meeting customer demands, and contributing to the
overall growth and sustainability of businesses and destinations.
Steps of tourism development

Research the Market

At this step, the tourism marketing force conducts research on the current market to
identify the opportunities. In includes economy, study of various market segments and
their varied requirements, past market data, and current market and tourism trends.

Match the Product with Market

By assessing the market segments and conditions for tourism, different packages are
created for various market segments such that they can satisfy the requirement of each
segment of individuals.

Assess the Destination

Since destinations form the basis of product development, the product development
force visits the prospective tourism destination to assess its tourism potential and its
ability to accommodate and serve the tourists, features of the destination, and its
shortcomings. It is assessed to judge if the destination is fulfilling the requirement of
Accommodation, Attractions, Activities, or Amenities. It is also checked for the ease of
Accessibility.

Understand the Stakeholder Role

Tourism product development is the result of collaborative efforts of various
stakeholders. It involves identifying all the stakeholders in private and public sectors,
DMOs, Tourism and allied businesses, and their respective roles in creating or developing
a part of a tourism product. The stakeholder meetings are conducted for creating a
project plan. The project goals are set to realize long-term vision, medium-term action
plans, and short-term progress assessments.
Product Building
At this step, the product is actually built using required resources and consultations of
the expertise to create intermediate inputs (facilitiesand amenities) and intermediate
outputs (services). It encompasses not only development of destination infrastructure
but also support for special activities and experiences.
Marketing & Promotion
The functional and emotional benefits of the tourism at the tourist destination are
communicated to the market. The marketing people create brochures, place
advertisements on the business portals, and contact media to promote the destination
and the product on the television and radio. They also use various other marketing
techniques to increase the product visibility.
Providing Human and Technical Resource
It includes providing skilled staff and contemporary technology to cater the needs of
tourists efficiently, to handle all tourism related operations at the destination effectively,
and to communicate with the staff easily.

EXAMPLE : “DIGITAL NOMAD RETREAT”

1. Co-Working Spaces:
• Partner with local co-working spaces or create dedicated workspaces
within hotels/resorts equipped with high-speed internet, comfortable
seating, and all the necessary amenities for remote work.
2. Cultural Immersion Experiences:
• Offer guided tours and experiences that allow digital nomads to explore
the local culture, history, and traditions during their stay. This could
include language classes, cooking workshops, and guided tours to
historical sites.
 3. Tech-Friendly Accommodations:
• Collaborate with accommodations to provide tech-friendly amenities such
as high-speed Wi-Fi, ergonomic workstations, and smart home features to
cater to the needs of remote workers.
4. Networking Events:
• Organize networking events, workshops, and meetups to facilitate
connections among digital nomads. This could include industry-specific
events, skill-sharing sessions, or casual social gatherings.
5. Wellness and Relaxation:
• Integrate wellness activities like yoga sessions, meditation classes, and
spa services to help digital nomads relax and maintain a healthy work-life
balance.
6. Adventure and Exploration Packages:
• Develop packages that include weekend excursions or outdoor activities,
encouraging digital nomads to explore the natural beauty and attractions
of the destination during their stay.
7. Community Support:
• Establish a local support system to assist digital nomads with practical
matters, such as finding local services, navigating the destination, and
addressing any work-related challenges they may encounter.
Benefits:
• Targeting a Growing Market: The Digital Nomad Retreat taps into the increasing
number of remote workers and digital nomads seeking destinations that cater to
their specific lifestyle and work needs.
• Extended Stays: Encourages longer stays, as digital nomads often have flexible
schedules, providing a boost to local economies by increasing the length of time
tourists spend in the destination.
 • Positive Impact on Local Businesses: Collaboration with local co-working
spaces, restaurants, and tour operators contributes to the economic
development of the destination and supports local businesses.
• Brand Recognition: Establishes the destination as a digital nomad-friendly
location, potentially attracting more remote workers and creating positive word
of mouth within the digital nomad community.
This example illustrates how product development in the tourism industry can be tailored
to emerging trends and specific market segments, offering a unique and attractive
experience that aligns with the evolving needs of modern travelers.