3.2 Environment Analyses: ©living Stone Dialoog V.Z.W

3.
2 Environment Analyses
A. Methodology :Market Research

B. DESTEP
C. Customer Analyses
D. Market form, competitors
E. Market Development
©Living Stone Dialoog v.z.w. 1

Designed i.c.w. Leuven University College
2
3.2 Environment Analyses
The micro environment refers to the forces that are close to the
company and affect its ability to serve its customers
 Ex: the company itself, its financial situation, its
employees, its technology, its suppliers, marketing
intermediaries, the markets, competitors and all potential
customers.
The macro environment refers to all forces that are part of the
larger society and affect the micro environment
 Ex: demography, economy, natural forces, technology,
politics, and culture ( Destep)

A. Methodology : Market research

Market Research
– Desk research
– Field research
– Qualitative research
– Quantitative research

Desk research: gathering existing data
– Literature
– Internet
– Conversations
– Intern information
Field research: make your own questionnaire

Remarks : Field research
 Are your questions necessary and relevant?

 Are your questions complete?
 Does the respondent want to answer the question?
 Is the respondent able to answer the question?

Remarks
Make sure each question:
– Probes only one aspect: otherwise, you don’t know on

which aspect the respondents answered
– Is simple: don’t overestimate respondents
– Is univocal: respondents can interpret the question in only
one way
– Is concrete: easier for respondents
– Is neutral: don’t suggest a ‘correct’ answer

Qualitative
– Psychological
– “Why?”
– Subjective
Quantitative
– Statistical
– “What? Where? When? How much?”
– Objective

B. D E S T E P
DESTEP

3.2 Environment Analyses
A. Methodology :Market Research

B. DESTEP
C. Customer Analyses
D. Market form, competitors
E. Market Development

12
B. DESTEP-factoren
The word DESTEP is an acronym

Not or hardly controllable factors:
• Demography
• Economy
• Social - Cultural
• Technology
• Ecology
• Politics/juridical
Have an influence on consumer patterns and preferences
Demography
 Tendencies in population volume and growth

 Changing age spread of the population
 Migration tendencies
 Number of educated employees
 Cultural diversity
 Changed family structure
 …

Factors for change in tourism
Demographic
• Baby boomer/ Seniors will have the resources and represent the largest travel segment.
• Couples with double incomes and no kids (DINK) have both the resources and freedom for
extensive travel. Societies with birth rates well below two will have many dink couples. They
will represent the industry’s cash cows, and many will try to milk them.
• With ageing populations, tourism demand may depend on the ability of elderly people to
enjoy a holiday away from home.
• The goal of living longer will induce more people to take better care of their bodies while
travelling. Sports activities and wellness holidays will play a greater role.

Economy
 Distribution of incomes
 Changing purchasing power
 Changing pattern of spending
 Financial crisis
 …

Economic
• By 2020, economic development in China will allow hundreds of millions to travel for leisure;
many will travel abroad. This may also apply to India and other populated countries.
• Asian, European and North American countries will try to benefit from new tourism markets
by reinforcing their media presence in the new source markets, and by establishing special,
dedicated incoming networks and infrastructure.
• There will be more pronounced divides tied to economics (the rich/have's and all other have
nots), religions (particularly Christians and Muslims) and technology (techno savvy and those
that never really "got on" with computers).

Social - cultural
 Continuity of cultural values

 Shift in secondary cultural values
– How people see themselves
– How people see others
– How people see businesses
– How people see the society
– How people see nature
…

Socio-cultural
• Hospitality towards the guests will become more critical in places where irritation between
hosts and guests is reaching the limits of the social carrying capacity.
• Tourist attractions with roots in the place, region and local history will become the core of the
cultural tourism market. Culture as a product, culture as a motivation is important.
• The lack of beauty and human touch in most cities and towns due to today's functional,
uniform architecture and road layout will improve little in the future. Thus, demand for trips
to historical cities and places, as well as to sites of natural beauty will remain strong.
• Artificial everything breeds Disneyisation and McDonaldisation. This globalisation and
commoditisation will undermine the illusion of unique experiences and reinforce competition
between places with authenticity. An authentic environment will contribute to inbound
tourism, willingness to pay for the holiday, and a competitive difference even in cheap sun
and beach destinations.
• Tourists are becoming hybrid – cheap flights to destinations yet staying at 5 star hotels –
altering traditional customer segmentation. Budget travel will expand with backpackers and
trendsetters, yet the market will seek luxury regardless of tourists' economic level.
Technology
 Speed of technological developments

 R&D costs
 Focus on small improvements of existing products
 Increasing regulation
…

Technology / Mobility
• City tourism will strongly relate to the quality of the public transport, such as advanced
trains, subways, metro, and buses with new environmental technologies.
• Larger, faster, more comfortable or more efficient airplanes will facilitate travel to long
haul destinations able to accommodate them.
• Access by air will become more costly due to continued pressure on fuel prices.
• Urban crowding and population growth, at home and in destinations, will affect
destination choices.

ICT / media
• The Internet and emerging mobile technologies will continue to have a massive impact on
most aspects of tourism, from site selection to booking accommodations and flights.
• The Internet will be ubiquitous – in most every home, screen phone, TV, computer, palmcom,
watches, etc., and most public areas.
• The diversity of distribution channels (physical and virtual travel agencies, mobile travel
consultants, airport last minute counters, wholesalers and consolidators, TVs, M-commerce,
call centres, etc.) and holiday organisation options (e.g. pre-packaged, multi-centre, basic +
add-ons, dynamically packaged, modular) will evolve and grow.
• Consumer behaviour relative to time of information access, transaction and experience will
be more pronounced, the "now".

Ecology
 Shortage of raw materials

 Increasing energy costs
 Increasing pollution
 Ecotourism tendencies
 …

Eco Tourism

Politics / juridical
 Regulation of the business world

 Increasing focus on ethical and social responsibility
 Attractiveness for investors
 …

Government / regulatory
• Safe tourist places are important, such as areas of low crime, violence and intolerance.
For most tourists these aspects will prevail over aspects such as facility comfort and
quality.
• Good quality information and educational tools will be important for customers to
understand the place visited and its characteristics
• Wars, terrorism and geopolitical uncertainty will persist, thereby increasing travel
security concerns and the importance of security technology leading to safer travel,
better entry screening, ground surveillance, etc.

DESTEP-factors
Remarks:
• Opportunity or threat
• Continuous analysis
• Predictions and scenario’s

Facts and figures

• 900+ million “international arrivals” worldwide
• revenues surpassing 850 billion USD
• infrastructure valued in excess of 3 trillion USD

http://www.unwto.org/facts/eng/overview.htm
Evolutions & challenges

From: Page & Connell (2006: 519)

WTO (2007: 29)

Page & Connell (2006: 518 )

Top 10 (tourism) innovations according to international tourists
(www.BudgetTravel.com)
1 2

3

4
5
6
7
8
9
©Living Stone Dialoog v.z.w.
10
44
Exercise 5
Define 5 evolutions out of the environment

analysis that have an impact on your business.
Add them to your project proposal.
45

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3.

A. Methodology :Market Research

©Living Stone Dialoog v.z.w. 1

©Living Stone Dialoog v.z.w. 3

©Living Stone Dialoog v.z.w. 4

©Living Stone Dialoog v.z.w. 5

Desk research: gathering existing data

Field research: make your own questionnaire

©Living Stone Dialoog v.z.w. 6

 Are your questions necessary and relevant?

©Living Stone Dialoog v.z.w. 7

Make sure each question:

– Probes only one aspect: otherwise, you don’t know on

©Living Stone Dialoog v.z.w. 8

©Living Stone Dialoog v.z.w. 9

©Living Stone Dialoog v.z.w. 10

A. Methodology :Market Research

©Living Stone Dialoog v.z.w. 11

The word DESTEP is an acronym

 Tendencies in population volume and growth

©Living Stone Dialoog v.z.w. 14

©Living Stone Dialoog v.z.w. 15

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©Living Stone Dialoog v.z.w. 17

 Continuity of cultural values

©Living Stone Dialoog v.z.w. 18

 Speed of technological developments

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 Shortage of raw materials

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 Regulation of the business world

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• Predictions and scenario’s

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Define 5 evolutions out of the environment

Add them to your project proposal.

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