Investigative Project in the Tourism and Hospitality Industry
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This document is an investigative project in the tourism and hospitality industry. It covers topics such as Pestle analysis of Topdeck Travel, 7 P's of marketing in the tourism industry, marketing communication, and more. The project provides insights into the industry and focuses on Topdeck, a tour operator.
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Investigative Project in the Tourism and Hospitality Industry
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Table of Contents INTRODUCTION...........................................................................................................................1 LO 1.................................................................................................................................................1 Pestle Analysis of Top deck Travel............................................................................................1 LO 2.................................................................................................................................................3 7 P's of marketing of tourism industry.........................................................................................3 Lo 3..................................................................................................................................................6 Marketing communication...........................................................................................................6 LO 4.................................................................................................................................................9 Analyse 7 P's of Topdeck internally and externally....................................................................9 CONCLUSION..............................................................................................................................14 REFERENCES..............................................................................................................................15
INTRODUCTION Tourism is considered as travelling for pleasure. It can be domestic and international as both of them incoming and outgoing implications on a nation's balance regarding payments (Becker, 2016). The tourism industry isconsidered as a part of the service sector as it has becomes a significant source for the income for various regions as well as for various nations. Tourism benefits huge amount of income within the local economy as within the form of payments of services as well as goods as it is required by the tourist. Tourism can be short term movements of the individuals to the places that can be different and unexplored. Travel and Tourism provides the knowledge regarding products ,operations, structure in the industry as well as tourist also learn about various operators ,hotels, airlines and also tourist boards.Present report focuses on Topdeck is a company/ tour operator from that gives he trips to people who are aged between 18 to 39 all over North America, Europe, Australia, New Zealand, Asia, Egypt ,Middle East. It was founded within 1973 and provides 330 various tourism within 65 nations.Report focuses on Pestle analysis, Marketing mix, marketing communication, marketing strategy, Public relations and many more. LO 1 Pestle Analysis of Top deck Travel Pestle analysis Itisanapproachthatcanbeusedtoanalysesthemacrofactorsusedwithin environmental scanning component of strategic management. It gives people professional insight into the external factors influencing their firm. Political Factors- These factors are concerned with the stability of political issues and the changes in policies that can affect the operations of the business. If the stability of political issues is stable it is beneficial for the companies such as Topdeck travel to engage in an environment of business which helps them to predict the trends of the market and working according to these measures (Hsu, 2017). Any type of issue in these factors affect the ability of the company to raise capital from the shareholders and affect the growth of the company. The environment of business is uncertain and the policies relate to political aspects can change anytime which can affect the business of the company. Company needs to understand the forces of the market so that they can cope up with the level of these type of changes (Uludag, 2016). 1
Economic Factors- These factors are concerned with the level of inflation, rate of taxes, rate of inflation and rate of unemployment in the country. The rate of growth of the economy will help the company to assess the rate of growth of the company and work on the strategies with the focus on long term sustainability in the market. Efficiency of market is also assessed on the basis of financial aspects so that company can improve their liquidity in the market and increase their strength against their competitors. Apart from this company needs to assess the conditions of labour market such as wage rate so that they can recruit the skillful and talented workers according to that which will help them to increase their performance. If the market of labour is flexible in condition then they will be able to increase the productivity of the company (Radjenovic, 2018). Social Factors- These factors are concerned with the differences in culture, beliefs and values of people. Company needs to select the right type of demographics so that they can target the right audience in the market. The right segmented selected will help the company to work according to their potential. Company needs to assess the patterns, behaviours of the people of the country. They need to make their policies according to the variations in income so that people can accept the company. This will also limit the changes in the power structure of the country which affects the growth of the company(Hsu, 2017). They need to enter into market after assessing that inequality of income. Also company needs to understand the roles of gender and align the strategies of marketing according to that so that the people do not feel distinguished. Company has the option to target them on the basis of their buying patterns as it is concerned with their status symbol. If the company works on making their experience better then they will be able to achieve growth (Mainil and et.al., 2017). Technological Factors- These factors are concerned with the development of technology so that they can help the company to develop new strategies and bring innovation into the market. Companies such as Top deck travel takes the help of social media tools. To improve their performance they claim as many opportunities they get through this aspect(Hsu, 2017). With the help of technology, the company has started the campaigns on the platform of social media to make it look more creative and develop the community and access to brand. Other than this they need to keep up with the competitors and need to invest in the department of research and development so that they can 2
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bring new technology which is updated so that they can improve the supply chain and the structure of cost so that they can increase the profits, retain them and reinvest them to look out for the updated technology in the market (Radjenovic, 2018). Environmental Factors- These factors are concerned with the condition of environment and causes by the businesses which harms the environment. Top deck travel needs to adopt the strategy of recycling and managing the waste. This is important for the company as many countries has made the norm that the business has to control the waste specially in those areas which are urban. Other than this company needs to invest in the technology which is renewable so that they can have the benefit of long term sustainability in the market(Hsu, 2017). This will help the company to satisfy their shareholders and increase the base of customers as they will enhance the image of the brand. Efficiency of the Topdeck travel can be affected due to the changes in condition of climate and weather. Changes in climate can lead to increase in cost of operations which the company will pass to their consumers and overall this will affect their strategy of pricing. Company needs to go green and take more initiatives of eco friendly activities. This way they will be able to gain trust in the market from their stakeholders. If they do not cope up with these factors then they will be noticing a negative response from the consumers, media, protection group of environment(Eugenio-Martin and Inchausti-Sintes, 2016). Legal Factors- These factors are concerned with the rules and regulations of different countries in which the company maintain their operations and if these factors are not followed then the company may not be allowed to maintain their operations in different countries. Top deck travel needs to follow the laws such as health and safety so that workers have a secure workforce. This will also help the company to attract and retain the candidates with more potential. The company follows the laws which are related to consumer protection and no unfair trade practices are followed by the company with their consumers (Kazak,2017). They also have laws which are intellectual property rights which helps them to design the patent of the company. This also helps the company to gain competitive advantage in the market. 3
LO 2 7 P's of marketing of tourism industry The marketing mix focuses on the sets of tactics that a firm uses to promotes their products or brands within marketplace. These are the marketing mix is considered as the combination that can be used through a business to allows to meet the requirements as well as expectations of the consumers. Products This P refers to the firm as according to the needs of the consumers as well as their desires and wants as here within the tourism industry. The product is consider as tangible and is not easily scrutinized in most of the cases it is considered as intangible thus whenever ask about the service firm there is alwaysdeigned the needscarefully as most of the successful are done due to the blue print as well as properly defines the service product (Becker, 2016). Price According to this P it means that setting price of product that can be profitable for the firm, it also been attractive to the consumers as well as competitive within the marketplace also. The factors that depends on the pricing are such as Government polices and regulations Based on the seasons Based on the geographical locations of the destination. Competitor pricing This industry also responds well for their high complexity at two levels as first level it can deals with the marketing strategy as it consists of the long term return investments, product positioning, cost-effectiveness (Chi, Zhang and Liu, 2019). While the second one consists that the marketing operationswhere the prices can be manipulated with competition and demand . All of them the final pricing required t be labour overhead costs that gives the final service price. Promotions It is known as how the consumers able to find outthe tour operations business of particular firm asthere are different ways to sell the services, communicateand also describes the services. So when any firm creates the promotional messages than there is a need to use the term that able to highlight the advantages from the services of that firm as what kind of the unique features that offered by a firm that cannot be given to the customers by the other 4
competitors within market. The promotion regarding the tourism industry is done mostly through advertising, sales promotion, publicity (Chi, Zhang and Liu, 2019). Place It is known as the factor that where the consumers can buy the services as well as products. The place can be retail market, high street, shopping mall, etc. Since the services of this sector is largely intangible so its is best to select the service online. Physical evidence There are main problems that can be within this sector isthe consumer cannot test it before buying it as they are unable to produce until they required. It is crucial for the firm to offer the other means that which a potential consumer also makes he informed decisions. Tourist can also attracted by the most expensive as it is vital that makes it more tangible highlights items . Brochure are also vital for representing that how different elements are offers as it includes all the relevant datathat require by the costumers (Eugenio-Martin and Inchausti- Sintes, 2016). People The service industry heavily depends on the customer services and professionalism. Within service industry the consumers are facing difficulty within the person they engage as compare to the actual services. It shows that that consumer care is critical for business. A lot of operators focus on training their employees within interpersonal skill and the satisfaction of the customer. They are also trained so that they can talk politely to the clients and have the knowledge regarding the product. Process It focuses on the various stages that can deliver the service to a consumer. These services required to be booked in advance so that they can deliver the services to the enhance the experience of the consumers as well as requirements. They are tangible goods that kept within stock as well as ready for the buying within anytime(Hsu, 2017). As an operator of Tour there is a need to assures that all the stages regarding the delivery the service that can be planned as well as executed. Tour information-It can be regarded that travelling can be on a convenient location. Liaising with service providers- Before providing the tour to the clients ,the contractors needs to have within the place that involves transportation firms, coaches, hotels and may more. 5
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Planning as well as costing tour-When they tour operators can finalized all the arrangements then they can start planning as well as costing of the tour. All of its depends on the tour picking as per the requirements of induvial (Mohanty, Swain and Besra, 2018). Ticketing- It include the online reservation systems. Lo 3 Marketing communication It focusses on the framework that can be adopted by the various firms so that they convey messages regarding the products as well as brands they sell, either indirectly or directly to the consumers with the intention of purchasing it. While within in other words several medium that firms adopts to exchange the information regarding goods as well as services to the clientsis coined as a term Marketing Communication. It involves Sales Promotion, advertising, public relations, direct marketing ,publicity, interactive marketing, Personal selling. These are the effective tools and collectively known asMarketing communication Mix. Elements of Marketing communication Advertising- It is consider as an indirect as well as paid methodthat can be utilised by the company so that they can in form the consumers regarding their goods as well as series such as radio, TV, online websites, print media. The advertising is considered as one of the major methods used for the communication mix, where it provides the complete information regarding the products or services of the company. It can be communicated to attract large number of people. Sales promotion-It includes the various short term incentives that can be provided to the customers to initiate the purchase. These techniques of promotion not also aid to retaining the current staff members but also attract the new ones. Such as discounts, paybacks ,coupons and many more are consider as some of the tools regarding sales promotion(Hsu, 2017). Events as well as experiences-Various firms sponsors the events such as entertainment, sports, non-profit or community events accompanied by the intention to reinforce within the minds of the consumers as well also creates a long term duration. The sponsoring event within the tour can also be seen within the boundaries of playground where they can play, trophies, awards that wins by them during various competition within tour ,hoarding and many more. Public relations- 6
It is a strategic process of communication firms, organization, individuals used to build relationship that are mutual with the public. Objective of the public relations It maintains positive relations and strategic relationship with partners, staff members as well other stakeholders that leads to the creating a strong brand image regarding brand. Functions if public relations is differ from the adverting as these are the agencies that are unable to buy ads as don't write the stories as well as not focuses on the promotions that are paid. They can usethe brands through using editorial content such newspaper, magazines ,blogs, Tv programs and many more. Marketing communication of Topdeck The Topdeck also provides various social activities within a view to create a positive image within market. The actions of the firms are taken such as donating some portion regarding their buying to the education of the child , planting tress, organize the campaigns of the blood donation and many more (Eugenio-Martin and Inchausti-Sintes, 2016). Direct marketing With the use of the technology the Topdeck makes use of mobile phones, fax, emails to communicate directly with the context of the consumers by not involving within third party. Interactive marketing It gains the popularity recently as it can interact the consumers with the organization online as well as get their resolved their queries online. Personal selling-It is known as the traditional method regarding the marketing communication as where the approach of the salesman prospect is to directly inform the consumers about the goods as well as services that they are dealing with. It is known as one of modes of communication that can be done orally or directly such as writing through emails as well as text messages. Marketing strategy. It refers to the business plan that can reach to the consumers as well as turning them into the consumers regarding products or services. It increases the value of firm. Investing within the firm is a vital success of the travel agencies (Mohanty, Swain and Besra, 2018). Using E-mail marketing 7
It is considered as the foundation stones regarding the strategy of digital marketing as most of the people visit the travel agency as for the first time and are not able to buy services. But for that there is a need of the subscribe the emails list as individual has the ability to display credibility and authority so that boots them to buy the travel products. As per the earlier guests they are also inspired to becomes the regular consumer through weekly as well as daily regarding the daily information of the products. Paid search Every second there is are thousand of search queries on the google as no other marketing strategy has the kind of the potential to get the travel agency as known as the paid search .It is like SEO that takes several months to complete to get the required information as due to the paid search google makes available the information at the top of the page 1 in hours. Drop business cards It is a significant option in terms of the marketing strategies as to prepare business cards as well as hand them to the outside people. Not only send the card within person there are various place where the cards can be drop such as Leave the card within the tip of the restaurant Place card within the books related to it within library Also put the card within the public bulletin road. Speak at events When there is any professional events there is a great chance to meet the new people as well as build the brand awareness. So for that there is a find of the local event that can be more associated with the travel industry. Marketing communication of the company The Topdeck can be communicated by the traditional and online methods as it can uses both of these methods such as by using the social platform like Facebook, YouTube, twitter and many other as all of these of social sites are the cheapest modes of communication and also target the large audiences. Nowadays people of every age uses the smartphones as lined to such websites as all of them likes the pages as within a secondhundreds of like of the page of the Topdeck firm. They can communicate by the online websites as there is always 24/7 availability. Theycanalsocommunicatewiththeirappthatcanbedevelopedespeciallyforthe 8
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communicate, resolving the issues of the clients, communicate with stakeholders and marketers and many more. Location The firm has grown various competitors as Topdeck targets the marketers that includes New Zealand, Australia, United States, South Africa, Canada and enhancing emerging markets such as Brazil, Mexico, Colombia, Singapore and South Korea. Firms can primary sold by the students travel as it focuses on the Youth brand of the student (Gretzel, 2017). LO 4 Analyse 7 P's ofTopdeck internally and externally The marketing mix is a term that can be coined through Neil Borden. The service of the marketing mix that can be considered crucial part regarding any service. Mention below are 7ps TopdeckTravelodge Product It is refers to the products that can be needed by the costumer. As their desire tobuy and their requirement is known as the heart of the marketingmixheart.Itistangiblewithin traditional sense. Thus, within the travel and tourismfirm Topdeck sells the product at lot of variety as it enables customers to select the variety that cansuits them best.Topdeck sells the products that are considered as highly differentiatedaccompaniedbythedifferent featuresoffered to their consumers that their rivalries doesn't offer. As their products can be highly unique. The products that can be offered by the firm are posses high quality as compare to their rivalries thus consumers are willing to pay the high prices regarding products (Mulet-Forteza Product-In context to Travelodge products are similar to it. they also provide services such as hotel bookings, tourism services, etc. here, all services are offered to people under the brand name of Travelodge. Besides that, Travelodge provides variety of services in differentiated way. so, people are easily able to distinguish theirservicesaspertheirneedsand requirements. the services are of high quality as compared toTravelodge and also there are more variety. Besides that, the services are sold in traditional design (Sirgy and et.al., 2018). 9
and et.al., 2018). Topdeckalsosellstheproductsthatare famous regarding their traditional design that can be more practical for the consumers to utilise. Price The current pricing strategy of the topdeck is thattheyfollowthecompetitivepricing strategy as this is due to the information on the competitors are easily available because of the large number of the rivalries that can exist within Industry. Topdeck sells its goodswithin the higher prices than this competitors as it offers unique as well as more features and that's why high pricing can be make-up because of all these features (Sirgy and et.al., 2018). Firms also uses the optional product strategy regarding specified products as if offers the pricesregardingseparatepricesandbase product. Firms also fixes its price for the final product suchasretailers,channel members ,wholesalers ,buy the product within at lower price as well as earn by their own . Price-the pricing strategy of Travelodge is competitiveonewheretheyfollowsame strategy of competitors. other than this, prices of services is set on basis of service quality and productsfeatures.However,priceof Travelodge product is higher than topdeck due to its high quality, advance features, etc. With help of it, company is able to attract customers and retain them for long term. the company charge high price online rather than in physical stores.moreover,indifferentmarket Travelodgechangetheirpricingstrategyon basis of target customer and market condition. But there are some fixed prices of services as well which is offered through distributors. it leads to generate high profits and sales(Mulet- Forteza and et.al., 2018). Place Topdeckalsosellsitsproductsbytwo marketing channels. The first one is that where it can sell directly to its consumer by the online platforms. While second one is that to Place Travelodgealso sells its products by directly to the consumers by also the online platforms. Travelodgefocuseson,Irelandand Spain.United Kingdom 10
sell the wholesalers who can sell to various retailers that are located all over the nation. After then it sells it to the consumers. Topdeck has its products all over 300 retailer all over the nation as it follows the marketing strategy that rises to involves its products that can be available to the consumers easily within different parts of all over the nation. Fir also follows the distribution channel called omni channel as it has changed its offline and online stores to enable consumers that can easilyaccessregardingitsproducts(Hsu, 2017). Topdeckallhasanetwork of around 300 suppliersthatcangivesitrawmaterials regardingforproduction.Ithasalso developeda relationship that is close enough within the suppliers that enables the firm to work with them in more innovative way as wellasalsointroduceattractiveandnew features regarding its products (Chi, Zhang and Liu, 2019). Promotion Topdeckfirmsisalsousesmultimedia channels that can be used for the promotion of its products. Traditional method also used by the Fir such as promotion by the radio and television. It is also beneficialbecause of its large reach as well as ability as it can easily attractthelargeaudience.Firmsalsouses social media platform such as it can uses the Promotion-Travelodgealsousesvarious promotion channels in order to attract people. they are various digitalmedia and physical channels. the company uses social media, e mail, content and video marketing. Apart from it, company also gives ads on TV, newspapers, magazines, etc. to attract people. Moreover, in off season they offer various offers such as direct promotion, discounts, etc(Chi, Zhang 11
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Facebook,youtubethatcanbemore beneficialaswell ascheaperasnowadays people are uses more internet as compare to the other methods as costumers can following pages within these social media sites also it is very cheap so it makes more sense to the Top deck. It has estimated that people has over-one hundred likesthat can be exposed the content up0laeded through the Top deck. Firmalsoundergoespersonalselling accompanied by large sales that can enhance its presence with retail stores. Firms also uses he percentage sales method so that it can determines the promotion budget. andLiu,2019).Inaddition,Travelodge organizeexhibitionandsometimesuses personal selling as well to generate awareness about new products. the company have set a fixed promotion budget in order to promote their products and services in effective way to target audience. People Topdeck also have the people that can works under its sales team that plays crucial role withinitseffortsregardingmarket.People workingherearetrainedwithinaproper manner as well as shows respects regarding businessconsumersthattakesintothe consideration as per their references. Topdeckemployeesarealsoonethatcan workingwithinservicedepartment.These employees are always connected to the clients asif theirare facingasissuesregarding products as these employees guide clients by the processthrough which their problems can besolved.Theseemployeesarebasically trained to give respects to the consumers, and they can try their best to hep the clients while People Travelodge focuses on trained employees so that they can always shows respectto the clients.Herealsothestaffmembersare connected to the clients through the mobile phones ,emails ,social sites. 12
resolving the issues (Vellas, 2016). Process Topdeckmakessurethatproductscanbe available at all the retailer stores as well as notify when the levels of their inventory is low.Thefirmalsogivesthemwithmore numberofproductswhileorderingits productions so that they replenish its stock easily. It also assures that they can produce the products that can be easily available for the consumers when there is a requirement. Theyarealsoofferingtheonlinedelivery processas per the orders are received within the computer system and based on these orders theproductsthatarerelevantfromthe inventory can be easily shipped and provided to the consumers. Topdeck also participated actively within the researching opportunitiesof market so that they can easily understand the needs of the consumers. They also develops understanding thatcanberegardingtheneedsofthe consumersbythefeedbackthatcanbe collected though the store and also its social media pages or helpline (Martín,Mendoza and Román, 2017). Process Travelodgeoffering the online delivery. It also Provides Tour information as well as Ticketing information to the clients. They provides the information such as arrival of the tour at the mobile phones of clients with e mails, text messages,andTheyalsointroducethe emergency app so that all the consumers facing anyemergency situation they can track the clients as help them. Physical evidence The firms has online websites that can be also user-friendly as well as allows the costumers so that the clients can easily view Physical evidence Here thefirms are also makesthe colorful brochureswithin the most attracted to the banners that can easily attracted by the people 13
its productsas within high quality asimages can be taken firm thedifferent angels so that the costumers can be attracted by all of these various angles pictures. Topdeck also sells its products by making the colourful and attracted banner, templates that can easily recognizable by the costumers (Sirgy and Uysal, 2016). (Martín, Mendoza and Román, 2017). CONCLUSION From above report it is summarized that tourism sector provides variety of services to people as per their needs. It is rapidly growing in global market with ease in reach of destinations and effective connectivity. It focuses on the stability of political issues beneficial for the companies predict the trends of the market affect the ability factors as it forces of the market so that they can cope up with type of changes. It focuses on Economic Factors level of inflation, rate of taxes rate of growth of the economy increase their strength against their competitor able to increase the productivity of the company Social Factors select the right type of demographics will help the company to work according assess the patterns, behaviors of the people need to enter into market keep in mind the roles of gender and align the strategies of marketing according to that so that the people do not feel distinguished. It focused on Legal Factor that follow the laws such as health and safety so that workers have a secure work force helps them to design the patent of the company. Furthermore, focused on the 7ps suchTopdeck products different features products are highly unique. Topdeck follows the competitive pricing unique as well as more features and that's why high pricing and many more. 14
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