Chapter 9

Tourism Product
Development and
Packaging

© Dr. Kobby Mensah

Department of Marketing and Customer
Management
 Objectives
• Understand tourism product development and stages
in its development
• Determine the essentials for a successful tourism
product destination
• Highlight methods to bring experiential among
tourists
• Understand tourism product packaging and benefits
• Appreciate international and domestic case studies
provided
 Introduction
• Tourism is a important source of income for a
country
• A tourism product includes a combination of those
components that contribute to the satisfaction of
travelers.
• Tourism products can be broadly divided in to
attractions and facilities.
• The main component of tourism product is
experience.
 Stages of Tourism Product
Development
• Stage 1: Generic Development
• Stage 2: Unique Features Development
• Stage 3: Segmentation based on Age
• Stage 4: Segmentation based on Income
• Stage 5: Customized Products
• Stage 6: Product Design
 Creating Experience Set

Experiences that deliver exhilaration and vitality are on the top

of the wish list of tourists. Experiences have power. They
• Spark Imagination
• Engage the senses
• Stimulate the intellect
• Invoke an emotive response
• Enliven the spirit
The trend internationally is seeing a shift from marketing of
destinations towards marketing of experiences developed
across destinations
 Essential Requirements in Product
Development
• Analyzing demand

• Behavioral trend

• Identifying market segments and target markets

• Analyzing Supply

• Application of demand and supply knowledge

 Product Differentiation
Positioning is a process by which marketers try to create an image or an identity in the
minds of their target market for their product, brand or organization.

Types of positioning concepts:

• Functional positions
• Solve problems
• Provide benefit to customers
• Get favorable perception by investors and lenders
• Symbolic positions
• Self image enhancement
• Experiential positions
• Provide sensory stimulation
• Provide cognitive stimulation
 Tourism Product Packaging
• A package combines two or more products so
that the purchaser(and market segment
targeted) is advantaged compared with
buying the items separately.
In tourism, package may include a wide variety
of services such as transport, accommodation,
meals, attractions, entertainment, entrance
fees to attractions, guide services etc.
 Packaging Benefits
For customers
• Convenience
• Greater Economy
• Ease of payment and planning
• Low stress

For participating businesses

• Profitability
• Smooth business patterns
• Shared marketing opportunities
• Specialized products
• Target marketing
 Tourism Packaging Factors
• Incentives

• Communication

• Branding

• Pricing