Life cycle of a tourist product. Tourism product life cycle concept. Fig. 3 Destination Life Cycle Model by Butler

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The concept of the life cycle of goods is based on the fact that any product, no matter how great consumer properties it may have, will sooner or later be squeezed out of the market by another, more perfect product. Only the presence of needs is constant, and the means of meeting them are changing. Each product offered to the market has a certain life cycle, during which it finds its customers.

Like any product, a tourism product goes through a series of successive stages in its development, which are characterized by fluctuations in sales and profits.

The beginning of the implementation stage a product on the market is considered the moment when a tourist company first offered it to its target audience. The main characteristic feature of this stage is the slow pace of sales of the product, and, as a consequence, the complete absence or presence of insignificant profits. As a rule, the firm's personnel experience significant difficulties in using a new product, and the infrastructure is not sufficiently adapted to the needs of the selected clientele. Inevitable in the implementation phase are high marketing costs associated with significant efforts to create broad product awareness.

At the same time, the main advantage for the company at this stage is the almost complete absence of competition.

The duration of the stage of product introduction to the market can vary widely and is determined by the quality of the product, its compliance with the needs of consumers, the correctly chosen marketing strategy and its consistent implementation.

Growth stage characterized by a rapid increase in sales, and as a result, profits. Although marketing costs remain at a fairly high level, their share in the total costs of the firm is significantly reduced.

The growth stage is associated with a significant increase in competition, and the main marketing efforts of the tourist enterprise are directed to the formation of consumer confidence in the quality of the product and the further expansion of the market. A characteristic feature is that those firms that started developing this product earlier than others have significant competitive advantages. However, this in no way relieves them of worries about further improving the tourist product. The fact is that unsuccessful enterprises will most likely strive to improve and further develop the introduced product in every possible way, striving to oust the leaders.

During the growth stage, the tourism company seeks to expand the product distribution and penetrate into new market segments. This allows you to maximize profits and attract a significant number of new customers. Consequently, the growth stage is very beneficial for the firm, and its extension is the most important marketing task.

Maturity stage characterized by a slowdown in sales growth and its stabilization. This can be attributed to a number of factors:

changing customer needs;

new, more advanced products entering the market;

increased competition;

the product may not be profitable enough for the firm due to the emergence of new opportunities for more efficient capital investment.

At this stage, the circle of consumers practically does not expand. Some increase in their number may occur at the expense of those for whom an increase in income or a more favorable ratio of currencies allows them to become possible consumers of this product.

At the stage of maturity, the amount of profit received begins to decline somewhat, although it remains quite high. Therefore, the tourist company, as well as at the growth stage, is interested in its maximum extension. At the stage of maturity, the main efforts of the company are directed to maintaining its market share, increasing the consumption of this product through its improvement, modification of the marketing mix, and possibly even its new positioning in the market. If this does not happen, the product may lose its position in the market and find itself in a downturn.

Decline stage means the onset of the moment when the tourism sector begins to be oversaturated with this product. There is a steady decline in sales and a decline, possibly even to zero, in the amount of profit. The transition of the tourist product to the stage of decline can be due to a number of reasons. First, it is the appearance of new products on the market. Secondly, the disappearance of the need that the given product corresponded to. For example, if people who love to swim have changed their preferences in tourism and recreation (in terms of combining sea bathing with visiting cultural sites), in particular, they are more interested in exotic things (Caribbean, East Africa, Indian Ocean Islands). However, this stage can continue for a long time. As a result of the relaxation of competitive pressures, the tourism industry is no longer required to maintain high marketing costs, and in some cases even allows them to raise prices. However, this will not be evidence of the profitability of this product for the enterprise, since the sales volume at the recession stage is extremely low. Therefore, the correct policy for improving and diversifying the product, as well as for developing sales, allows you to adapt to new needs. In particular, an appropriate policy to revive demand often gives a second wind to some resort areas and recreation centers.

Thus, it is necessary to carefully analyze both products that have brought little profit for several years, and those that are well known in the market, but for which the revitalization of sales requires a change in their image. In addition, as demand diversifies, the specialization of tourism organizations is developing. Basic products are becoming more original and less interchangeable. This makes it easier to retain a specific clientele.

Thus, the existence of a tourism product life cycle means that the firm faces three major challenges. First, it must find new products in a timely manner to replace those in decline (novelty development problem). And secondly, the firm must be able to effectively organize work with existing products at each stage of their life cycle. The third, no less important task is to optimize the structure of products offered by the company in terms of their belonging to different stages of the life cycle.

The life cycle of a tourism product. (fig. 1)

Profit level

development launch maturity decline (cycle phases)

It is also necessary to carefully analyze products that are little-known, new to the given market, and well-known, for the sale of which a change in image is required.

In the travel industry, spending on long-term vacations is decreasing as competitors introduce a new product of a more mobile type. Fascinated by the potential growth of their own programs, tourism businesses refused to face the facts. By refusing to turn to tourism product lifecycle analysis, long-stay business executives are wasting money and talent that can be profitably channeled into growing a more efficient tour package and further increasing the potential of their businesses.

In general, such errors are understandable, and changes in the company's requirements for its programs are also acceptable. The life cycle develops more slowly, and the maturity period develops faster, so the problem can become very urgent.

The classical concept of the life cycle should be mainly determined by the position of the tourism product in the cycle itself, since, as can be seen from individual facts, critical factors affect the change in profitability in all four phases - from growth to stagnation. In the initial phase, product design and development are considered critical. For a tourist offer, where the needs of buyers change from an established tradition, technological excellence and the amount of costs, there is a need to know these factors in order for a tourist product to successfully enter the market. For the tourism supply, the willingness to invest in future volume can also be critical and involve high market costs.

During the growth period, knowledge of the exact needs of the shopper is considered essential to ensure the success of most tourism offerings, as well as to meet the requirements for the range of tourism services and programs. A reputation for quality, based on adequate tourism capabilities, can help a firm to become a market leader. expand the network of their travel agencies and the range of routes. Conversely, effective advertising and a good sales network can be key factors for a sharp increase in tourist flows to specific destinations.

At the stage of maturity, a clear definition by the management of the overall market efficiency for the tourist operator (company) is necessary. Market mastery is manifested by various means, for example: an increase in profits due to a decrease in price, thereby attracting more buyers; search and promotion of new ways of using the tourist product; expansion of sales channels to achieve the highest efficiency in the primary market.

During a period of stagnation, control over the total profit becomes key. Producers and distributors of low-cost products often enjoy low profit margins during stagnation even long after their competitors have disappeared from the scene.

Therefore, they are valid only within their limited framework, and the traditional generalization of management decisions and the product life cycle is not practiced everywhere. Travel companies are missing out on the opportunity to bring together all the critical factors needed to manage the product lifecycle.

Lifecycle management has two main aspects:

• * Control of the life cycles of all tourism products throughout the entire trade line: firstly, planning new improved offers and reducing the sales line and, secondly, the distribution of money and personnel between existing tourism products and tour packages according to profit opportunities, taking into account all the constituent links life cycle;
• * Control of the life cycle for each individual product in order to identify additional profits.

There are opportunities for market regulation by the process of changing the shape and duration of the life cycle of each individual product at all stages, excluding the latter. For example, the presentation period for a tourism product can be shortened by increasing market costs and providing faster network distribution. In the next phase, growth can be accelerated, and sales and profits can jump to a higher level by using, say, additional markets, stimulating an expansion of the list of services or increasing advertising and sales, due to a more effectively planned and implemented market strategy.

The maturity stage usually offers marketing managers the greatest opportunity to change the shape and length of the product lifecycle. How close is the product to extinction, as it is replaced by a better offer, or is the customer's needs changing fundamentally? Or does it just seem that the stage of stagnation is approaching due to the fact that market regulation has reached the necessary consumer demand due to a better command of competitors in the art of marketing? The question will be criticized as long as the expected maturity stage misleads the manager. Radical measures can sufficiently affect the youth of a product due to a change in the list of services, external changes, revaluation, an increase in the number of distribution channels or changes in market strategy combinations. Successful “resurrection” of a product requires less management and investment costs than a new product.

Of course, this is not always possible. The maturity stage for some tourism products is accelerating due to changes in consumer habits or the emergence of an improved product. In this case, they determine when to reduce the time for regulation and investment, giving priority to a new, more competitive product. These are the key features when making market decisions. In the stagnation stage, market efficiency begins almost entirely to depend on knowing when to shorten the life of a product that requires more attention from management than the profit it generates.

The success of leading companies in managing the development of the life cycle of both each individual product and the entire mass of tourism offers can be a huge impetus for effective management.

Driven by technological changes in the field of booking and processing of transport documents for an ever-increasing flow of tourists, travel companies are increasingly mastering and participating in new information systems, for example Galileo, Saber, Amadeus, Gabriel, Sirena, etc. Recently, these systems are acquiring a transnational character. competing with each other, lead to a global redistribution of tourist flows. Today, there is practically not a single large travel company that would not master these systems in combination with the Internet. The viability of travel companies, as well as their range of services and tours, actually depends on the qualifications and ability of staff to use these systems. The emergence of improved booking systems influenced the sale of not only individual tours or a package of routes, but also the entire catalog of offers that the largest tour operators have at their disposal.

Effective regulation of the life cycle can be found in monitoring the life cycle of the entire mass of the tourist offer. Recognizing the stage of maturity of information systems, the Internet began to develop local and regional subsystems for the inclusion of new users. Now leading in terms of user numbers, thanks to the reshaping of the tourism information lifecycle, the Internet has also enabled the growth of other new tourism products, thereby increasing their trade mass.

Life cycle analysis is carried out with one proven means - by proving the effectiveness of a number of promising companies and changing positions in the very life cycle of the company's products. This can be achieved both by considering the results of a tourism company during formal inspections, when a specific position in the life cycle of a tourism product is established, and through profiling the entire set of tourism products in its life cycle. Market management and analysis measures for each life cycle position can vary across travel firms as follows:

• 1. Studying product development information for a period of 3 to 5 years (longer for some software packages). This information allows you to aggregate data on sales amounts, marginal profit, total profit, return on investment, market share, and price.
• 2. The introduction of accounting for the number and nature of competitors, ie, the number and market share occupied by competitive products, their quality and advantages, changes in distribution channels, the relative advantages of competitive products that satisfy each sales channel.
• 3. Analysis of the development of short-term competitive tactics, including the latest announcements of competitors about the appearance of their new proposals or plans to increase tourism sales.
• 4. Search for information about the life cycles of similar or related tourist offers.
• 5. Planning sales for subsequent periods, based on all available information, including the increase in the profit ratio in each period of the tourist offer (the ratio of total direct costs: for creating a route, advertising, product development, sale, distribution, etc.). , as well as profit after taxes). The resulting coefficient should be in the range from 4.8 to 1 or from 6.3 to 1, which determines the amount of funds spent to obtain each subsequent ruble of profit. The ratio usually improves (becomes lower) as soon as the product enters the growth stage, begins to deteriorate (increases) as soon as the product approaches the stage of maturity, and rises sharply as soon as the product reaches the stage of stagnation or disappearance.
• 6. Estimation of the number of periods of profit, repeated in the life cycle of the product. Based on all available information, it is necessary to fix the position of the product on the life cycle curve: introduction to the market, early or late stage of growth, early or late stage of maturity, early or late stage of stagnation or extinction.

Having once established the position of the life cycles of the main tourism products of a company, market regulation continues to develop the life cycle profile within the entire product of the tourism enterprise. And here a whole series of measures are being taken:

• 1. Determination of the percentage ratio between sales and profits of the company for each phase of the life cycle. This ratio reflects the current sales lifecycle profile and the current profit lifecycle profile in today's business.
• 2. Calculation of changes in the life cycle and determination of the profit profile over the last 3-5 years in order to obtain the project and the profit profile for the subsequent period.
• 3. Development of the profiling of the life cycle of the company and its comparison with the current profile of the life cycle. The target of the profile set by market regulation precisely determines the desired share of the company's sales, which will decrease in each subsequent phase of the product life cycle. This can be used to determine the stagnation trends of tourism products, the rate of development of the product presented to the market, the average length of the product life cycle in the entire company program, as well as the management's desire to increase profitability. As a rule, the goal of profiling a product of a company whose life cycles tend to be shrinking is the requirement of a high proportion of sales in the phase of product introduction to the market and in the growth phase, i.e., its full implementation.

Once these three measures have been worked out, management can prioritize new product development, acquisitions, sales line reduction, taking into account differences in company goals and profile, as well as current life cycle profile. By distributing efforts between different stages of product life cycles, market plans can be detailed for each individual sales complex.

Both the depth of life cycle analysis and factors usually change to the same extent as the needs of the company, facilities and sales lines. Therefore, there can be no general formula for assessing the factors available, combined to determine the position of the product life cycle. But this flexibility shouldn't seem like a disadvantage. Suffice it to emphasize this versatility, which makes life cycle analysis a useful tool for managing both the entire sales system of a company and its individual offer (product).

Structure, positioning and life cycle of a tourist product.

Product positioning

Every tourism business can use fairly simple tools to carry out analysis that will help it better know its own product.

Identifying the differences between the products of the company and the products of competitors in the language of marketing is called positioning.

Positioning of the tourism product- a fundamental marketing concept to attract a specific clientele and better meet the needs of a specific market segment.

Positioning is aimed at developing and creating an image of a tourist product in such a way that it takes a worthy place in the minds of customers, different from the position of competitors' products. Two advertising specialists, Al Rice and Jack Trout, contributed significantly to the development of the positioning strategy. They view positioning as a creative process of highlighting the merits of an existing product and note that “positioning is not about your actions in relation to the product. Positioning is what you do with the consumer's mindset, you position the product in the consumer's mind. "

Positioning should answer the question: "What is the value of the product for the customer?" And here we mean not only the purely practical benefit from the acquisition of this product, but also its psychological value ("ideal prototype of the product"). The position of any product on the market can be real and estimated. It is real in the case when a retrospective analysis of the market share allows the firm to establish the actual position of the service on the market at the previous stages of activity. Estimated position is the result of the firm's perception of the position of its product in the market. It may disagree with the opinion of consumers.

It should be borne in mind that the position of a tourist product in one market segment may differ from how consumers perceive it in another. therefore market positioning is closely related to market segmentation. The fact is that the task of positioning a tourist product is especially relevant when a differentiated approach to market coverage is used, which requires, instead of choosing a single position on the entire market, positioning in each segment. Hence, positioning is the most important means of implementing a differentiated marketing strategy.

Tourism businesses can use several alternative approaches to positioning:

· Positioning by a specific property (for example, low prices);

· Positioning according to the benefits for the consumer or the needs that the tourism product satisfies;

· Positioning by the consumer, which consists in highlighting the product as the most optimal for a certain group of consumers;

· Positioning in terms of price / quality ratio;

Positioning by a competitor, when a product is positioned in relation to a named or perceived competitor;

· Positioning according to the company's image, which should convey special, distinctive information about the main advantages and position of the proposed product.

Choosing a strategy for positioning a tourist product requires taking into account a number of factors. In particular, the following is required:

□ have a good understanding of the position actually occupied by the tourism product in the minds of consumers;

□ know the positioning of competing products;

□ choose your own position and identify the most convincing arguments to justify it;

□ ensure that the product has sufficient potential to achieve the desired positioning in the minds of consumers;

□ assess positioning vulnerability;

□ ensure consistency of the chosen positioning with other elements of marketing: price, volume, communications.

Positioning should be based on those distinctive features of the product that are of significant interest to the consumer. A distinctive feature deserves attention when positioning to the extent that it has the following properties:

□ importance- the difference brings highly valued benefits to consumers;

□ uniqueness- competitors do not offer this distinction or the company may present it more vividly;

□ provability- the difference can be shown, it is visible to customers;

□ availability -consumers must be able to afford to pay for this distinctive feature;

□ security- it is difficult for competitors to adopt or copy the difference;

□ visibility- the meaning of the distinguishing feature can be easily communicated to consumers and is obvious to them.

Suppose a tourism business is lucky enough to have discovered several potential distinguishing features. In this case, it is necessary to select those of them on which the positioning strategy will be based. The question arises: how many distinctive features should be used when positioning? The theory and practice of marketing does not give an unambiguous answer to it.

Meanwhile, many experts believe that the enterprise should focus its efforts on supporting only one distinctive feature of the product. The most important of these features are “ best quality ”,“ best service ”,“ lowest price ”,“ highest value ”.

Other marketers believe that travel firms should position themselves on several distinct characteristics.

Known four major mistakesrelated to product positioning:

□ surface positioning- lack of any clearly marked position;

□ one-sided positioning- creating too narrow a perception among consumers about the company and the products it offers;

□ inappropriate positioning- an attempt to create an exaggerated idea of \u200b\u200bthe company and its products among consumers;

□ ambiguous positioning- creating a confusing idea among consumers about the company and its products.

All efforts of the enterprise within the marketing mix should be aimed at implementing the positioning strategy. For example, if a firm decides to surpass competitors in terms of service, it is necessary to create training programs for staff, motivate employees, and also carry out advertising that confirms the superiority of such services:

The life cycle of a tourism product

In determining the market opportunities of a tourist enterprise, it can be very useful to experience marketing activities in the study of the life cycle of goods.

Life cycle conceptgoods proceeds from the fact that any product, no matter how excellent consumer properties it may have, sooner or later is ousted from the market by another, more perfect product.

Each product offered to the market has a certain life cycle, during which it finds its customers.

A tourist product goes through a series of successive stages in its development, which are characterized by fluctuations in sales and profits.

The beginning of the stage introducing a product on the market is considered the moment when a tourism company first offered it to its target audience. The main characteristic a feature of this stage is the slow pace of sales of the product and, as a consequence, the complete absence or presence of insignificant profit... Typically, the firm's staff experience significant difficulties in using a new product, and the infrastructure is not sufficiently adapted to the needs of the selected clientele. Inevitable in the implementation phase are high marketing costs associated with significant efforts to create broad product awareness.

However, the main advantage for the company at this stage is practically complete lack of competition.

The duration of the stage of product introduction into the market can vary widely and is determined by the quality of the product, its compliance with the needs of consumers, the correctly chosen marketing strategy and its consistent implementation.

Growth stage characterized by rapid increase in sales and, as a result, profits... Although marketing costs remain at a fairly high level, their share in the total costs of the firm is significantly reduced.

The growth stage is associated with a significant increase in competition, and the main marketing efforts of the tourist company are aimed at creating confidence in the quality of the product among consumers and further expanding the market. Characteristic featurethis stage is that those firms that started developing this product earlier than others have significant competitive advantages... However, this in no way relieves them of worries about further improving the tourist product. The fact is that “late” enterprises will most likely strive to improve and further develop the introduced product in every possible way, striving to oust the leaders.

During the growth stage, the tourism company seeks to expand the product distribution and penetrate into new market segments. This allows you to maximize profits and attract a significant number of new customers. Hence, the growth stage is very beneficial for the company, and its extension is the most important marketing task.

Stage maturity characterized by a slowdown in sales growth and its stabilization. This can be attributed to a number of factors:

· Changing customer needs;

· Entering the market of new, more advanced products;

· Increased competition;

· The product may not be profitable enough for the firm due to the emergence of new opportunities for more efficient capital investment.

At this stage, the circle of consumers is practically not expanding. Some increase in their number may be due to those who are able to become consumers of this product with higher incomes or a more favorable ratio of currencies. In addition, at this stage, the so-called “phenomenon of loyalty” is clearly manifested, which in most cases prompts one more time to use the proposed product (for example, to visit a certain country again).

At the stage of maturity, the amount of profit received begins to decline somewhat, although it remains quite high. Therefore, the tourist company, as well as in the growth stage, is interested in maximizing the maturity stage. At this stage, the main efforts of the company are aimed at maintaining its market share, increasing the consumption of this product through its improvement, modification of the marketing mix and even its new positioning in the market. If this does not happen, the product may lose its position in the market and find itself in a downturn.

Stage decline means the onset of the moment when the tourism industry begins to get satiated with this product. There is a steady decline in sales and a decrease (possibly even to zero) in the amount of profit. The transition of the tourist product to the stage of decline can be due to a number of reasons.

Firstly, the emergence of new products on the market.

Secondly, disappearance of need, to which this product responded: for example, if people who like to swim changed their preferences in the field of tourism and recreation (in terms of combining sea bathing with visiting cultural sites), in particular, they are more interested in exotic things (Caribbean Islands, East Africa, Indian Islands ocean). However, this stage can continue for a long time. As a result of the weakening of competitive pressure, the tourism enterprise is no longer required to maintain high marketing costs, and in some cases even allows it to increase prices. However, this will not be evidence of the profitability of this product for the enterprise, since the volume of sales during the recession is extremely low. Therefore, the correct policy for improving and diversifying the product, as well as for developing sales, allows you to adapt to new needs. In particular, appropriate policies to revive demand often give a second wind to some resort areas and recreation centers.

Thus, it is necessary to carefully analyze both products that have brought little profit for several years, and those that are well known in the market, but whose sales revitalize requires a change in their image. As noted by the French High Council for Tourism, these products are "gaining strength" and may become significant again for a fairly long time (for example, classic cultural services, festivals, ecological and rural tourism, sports games).

In addition, as demand diversifies, the specialization of tourism organizations develops. Basic products are becoming more original and less interchangeable. This makes it easier to retain specific clientele.

So, the existence of the life cycle of a tourism product means that the firm faces three challenges.

First, it must find new products in a timely manner to replace those in decline (new product development).

Secondly, the firm must be able to effectively organize work with existing products at each stage of their life cycle (the problem of a strategic approach to the stages of the life cycle of a tourist product).

The third, no less important, task is to optimize the structure of the products offered by the company in terms of their belonging to different stages of the life cycle.

Similar information.

Introduction

Active development, increased competition and commercialization of tourism activities necessitate the introduction of principles and elements of marketing in the work of tourism organizations. Initially, marketing was used as a method of influencing a manufacturer of goods on the market. That is, its main function was to promote goods, but today the main principle of marketing is: "To produce what is bought, not sell what is produced." In the service sector, marketing has its own characteristics. In fact, while remaining a tool for obtaining maximum profit, it changes the methods and directions of action. At the same time, in the field of tourism, marketing is acquiring new specifics, as it has a number of characteristic features associated with the characteristics of tourist services, forms of sales, etc. The competent use of the marketing system, applied to various areas and factors of the firm's activities, helps tourism organizations to operate more efficiently and sustainably in the market. An important aspect of the work of a tourist enterprise is the life cycle of a tourist service. Since the stages of the life cycle are mainly determined by the magnitude of consumer demand for travel services, marketing is widely used in the modern concept of the life cycle of travel services. Any product or service does not always enjoy the same interest, and, consequently, demand from the buyer. As a service advances on the market, its qualitative and quantitative characteristics change, which means that no product can escape a period of maturity and decline. At the same time, having information about the stage of the life cycle of each specific service, a travel company can more accurately determine the ratio of costs and potential profits, which allows making more effective market decisions. For example, find new products to replace obsolete ones. Proper use of the lifecycle concept helps to extend the profitability of a route or tour.

1. Consideration of the features of the life cycle of tourist services
2. Determination of a marketing strategy depending on the stage of the life cycle of a tourist service
3. Revealing the relationship between the life cycles of a tourist service and a destination.
4. Revealing the role of innovation and technological progress both in each individual company and the tourism industry as a whole

When writing the article, the following sources were used: Saak AE, Pshenichnykh Yu. A. “Marketing in social and cultural services and tourism”, where the authors reveal the application of marketing theory in the tourism industry; book by N.A. Goncharov and Kiryanova L.G. "Destination life cycle management", which identifies the characteristics of various stages of development of destinations and the factors that determine their duration .; Textbook for universities by F. Kotler and J. Bowen "Marketing: Hospitality and Tourism", where the authors show the application of the modern concept of marketing with specific examples from practice. As well as materials for tutorials and some electronic resources, such as Cyberleninka.ru and the site "All about tourism".

The life cycle of a tourist service.

Service life cycle – a series of successive stages characterized by fluctuations in sales and profits. This is also the period when the product can be profitable.

Since this paper examines the impact of the life cycle on marketing, therefore, it is necessary to define marketing and indicate its features in the field of tourism.

Marketing – it is any activity aimed at promoting goods from the one who produces them (the manufacturer) to the one who needs them (the consumer).

This definition reflects the most general idea. While marketing is a very broad concept that includes many factors, it is worth paying special attention to the marketing of the tourism industry.

First of all, marketing of services is involved in tourism. The main task of which is to attract a client and to ensure a high assessment of the services provided. Therefore, marketing of services is the process of developing and selling a product based on identifying and meeting the needs of customers.

The life cycle of a product or service is a period (from a month to several years), the beginning of which is the idea of \u200b\u200ban innovation, and the end is the moment when the product loses consumer interest and leaves the market.

"To determine the stage of the life cycle of an enterprise's products in a certain period of time, they often analyze the indicators of sales and profits, changes in sales trends - the growth rate of consumer demand, the volume of the occupied market share, the intensity of competition."

There are various types of life cycle curves, in which the shape and duration of individual phases depend on the specifics of the products and the particular demand for them. Further, the specificity of the traditional curve is considered (Fig. 1), where in the process of functioning of a particular service, service product, 5 phases of their life cycle are usually distinguished.

Fig. 1. Lifecycle model

1. Development

Changing tastes, innovation and high competition prevent tourism businesses from relying only on reliable, long-selling products. Customers want and expect new and improved products. This explains the first stage of the life cycle - product development.

New product development starts with generating ideas, i.e., a systematic search for new ideas. The sources of new ideas can be very diverse - company employees, customers, competitors, distributors, as well as various exhibitions, seminars, government agencies, etc. Followed by selection of ideaswhose purpose is to pick good ideas and discard bad ideas. Then the idea develops into product concept... Next step - development of a marketing strategy, those. strategies for delivering a new product to the market. It should include the estimated target market, prices, sales volume, and the marketing mix - the marketing mix. After defining the product concept and marketing strategy, the company should evaluate the attractiveness of the new product in terms of economic indicators for its company, i.e. hold the so-called business analysis... Business analysis includes forecasting sales volumes, costs and profits. If the firm decides that the new product is economically viable, then to test it in the market environment, trial marketing, the results of which can be used to refine forecasts of sales and profits. Ideally, only after the product has passed all these stages of development, the enterprise can begin commercialization, i.e. release of the product to the market.

2. Implementation

The stage of product introduction to the market begins at the moment when a travel company first offered it to its target consumer. At this stage, the profit is insignificant or completely absent, since serious costs are made to familiarize the consumer with the new product and stimulate demand, and the rate of sales of products is still very low. Also, low profitability is due to the small number of products produced, since firms, in an effort to protect themselves, release a limited line to make sure the consumer is interested in a new service. Firm employees often have problems promoting a new product due to inexperience and not full knowledge of how to work with it. The infrastructure, which is not yet sufficiently adapted to the demands of the new clientele, also causes difficulties.

Despite the fact that the stage of service implementation is very difficult, and this is proved by the largest percentage of failures, it has its advantages. At this stage, competition is almost completely absent. Another advantage is the advantageous position of the product on the market due to its unique consumer properties.

The main buyers of the product at the implementation stage are innovators, as a kind of pioneers and adventurers. These are also usually wealthy people, as prices are quite high at this stage.

If a new product gains acceptance from buyers, it means that it begins to be required in the market. Therefore, the growth stage is characterized by a rapid increase in sales. The company begins mass production of the product, and searches for new channels for its distribution. Moreover, at this stage, other firms are involved in the release of the product, seeing its success. Due to the effect of increasing the scale of production, the price decreases. But the growing volumes of sales of services make it possible to overcome the break-even point and move to a constant increase in income and to obtaining the greatest profit.

Although marketing costs remain at a fairly high level, their share in the total costs of the firm is significantly reduced. The very same level of costs is stabilizing. The growth stage is associated with a significant increase in competition, and marketing is mainly aimed at creating an image of an even better and more attractive product among consumers, as well as at further expanding the market.

Thanks to improvements, the service should achieve high quality. As mentioned above, at the stage of growth, a tourist company seeks to expand the scope of sales of a product, this, as a rule, is carried out through penetration into new market segments. That allows you to maximize profits and significantly increase the number of new customers. As the product enters the mass market, the customer base expands. There is a crowding out of innovators by mid-centrics.

From all of the above, we can conclude that the growth stage is very beneficial for the company, and its extension is one of the most important marketing tasks.

4. Maturity

By the time of maturity, the service is already firmly established in the market. Sales rates are characterized by the fact that they are still growing, but already slowing down, then gradually stabilizing. This is due to a number of factors:

1) rapidly changing customer needs;

2) entering the market of new, improved products;

3) increased competition;

4) the product may not be profitable enough for the company.

At this stage, the circle of consumers is practically not expanding, since the majority of consumers have already purchased this service. The increase in their number is due to those who have favorable conditions for buying a product, for example, increased income. At this stage, the so-called “phenomenon of fidelity” acquires special significance, which often encourages to use the proposed product again (for example, once again visit a certain country, or a favorite resort).

At this stage of the life cycle, competition reaches its maximum, the mass market is saturated with a product. At the same time, firms do their best to maintain their market share. The high quality of the product is maintained, but in order for it to remain competitive, travel companies direct their marketing efforts towards improving, modifying, and sometimes at a new, more advantageous positioning.

The stage of maturity is usually a fairly long period of time. Since the amount of profit received at the stage of maturity begins to decrease somewhat, but still remains quite high, the tourist company, as well as at the stage of growth, is interested in its maximum duration. If all the attempts of the company were unsuccessful, then the stage of recession follows.

Sooner or later, in the life cycle of any product, a moment comes when the tourism industry is fed up with it. This is followed by a recession stage. Competitive goods with new consumer properties are beginning to conquer the market. There is a reduction in the sale of services to the minimum required amount and a decrease in the amount of profit received.

Factors contributing to the transition of tourist services to the stage of decline:

1) the appearance of new products on the market.

2) the disappearance of the need to which the given product corresponded.

But this period can last for a long time. Due to the weakening of competition, the company does not need to have high marketing costs, which sometimes even allows prices to rise. But staying in the product line at the stage of recession soon ceases to be profitable, so if this service is important for the enterprise, then a policy should be considered to revive demand.

The consumers of the service at this phase are conservatives who know the properties of the product and are completely confident in it. Or the so-called "lagging" buyers who just got the opportunity to purchase a service.

It is important to note that, each product or service has an individual life cycle. The development and duration of each stage is the result of external factors and the complex of marketing enterprises. Let's consider different options. (fig. 2)

Fig. 2 Curves of life cycles of various tourism services

Continuous boom - describes the life cycle of a popular service, the demand for which is stable over time. Such a cycle can have medical and educational tours, cruises.

A short-term hobby is a service, the demand for which is growing very quickly and falling at the same rate. This cycle is typical for extreme or adventure tours.

Renewed demand - the volume of sales of the service was already in a downturn, but became popular again. Typical for historical tours.

Seasonality - the main demand for the service falls on certain periods. Beach and ski tours.

Finding new areas - at the beginning of the recession, the service finds new applications and new consumers.

Unsuccessful Product - Describes the life cycle of a service that was unsuccessful. Possible for dangerous, inappropriate times or unnecessarily expensive tours.

Marketing activities that help to increase the life cycle of a tourist service.

As it has already been found out, a tourist product, like any other, must go through its life cycle. Those. sooner or later, any travel service will go through the stage of development, growth, implementation, maturity and decline. Naturally, any entrepreneur wants to prolong the profitable stages of growth and maturity as long as possible, and as long as possible to delay the stage of decline.

To achieve these objectives, a whole range of marketing activities is applied in relation to each stage of the cycle separately.

1. Development stage

At the development stage, the main activity of marketing is the search for various types of information. That is, finding out the preferences and desires of customers, exploring new promising directions, searching and selecting new, original ideas that can be used as the basis for a profitable and attractive product for the consumer, as well as taking into account the level of competition in the market and the profitability of this product for the company.

To obtain the necessary information, the company's marketers conduct various surveys, observations, experiments. As a result, after all the marketing activities, the new product should be ready for the implementation stage.

2. Stage of implementation

The implementation stage begins from the moment a new product first appears on sale. This stage of the life cycle requires serious marketing efforts. The main part of marketing lies in the desire to make a new product known and in demand among the buyer, so large costs are spent on all kinds of advertising. Also, companies need significant financial resources to attract distributors and fill the market with a new product. These costs may not pay off, therefore, the product at the stage of implementation practically does not bring profit. Therefore, the firm seeks to leave this stage as quickly as possible and move to the growth stage.

3. Growth stage

If a new product satisfies the market, it enters the growth stage and sales begin to grow rapidly.

To increase the growth stage, a firm must choose one or more strategies:

1. Improve the quality of the product, improve its characteristics.

2. Enter new market segments.

3 ... Use new distribution channels and systems.

5. Reduce prices to attract buyers.

The growth stage puts the company in a position to choose between more market share and more profit. “By investing large sums in product improvement, advertising and distribution, a firm can gain a dominant position. But at the same time, she sacrifices the maximum profit in the hope of compensation in the next stage of the product life cycle. "

That is, to do everything possible to increase consumer demand.

4. Stage of maturity

The maturity stage usually offers marketing managers the greatest opportunity to change the shape and length of the product lifecycle. Drastic measures can sufficiently influence the youth of a product due to external changes, revaluation, an increase in the number of distribution channels or changes in market strategy combinations. At this stage of the cycle, virtually the only way to significantly increase sales is to entice customers from competitors. For this, intensive advertising and price reductions are used. It is important to modify the market, that is, to enter new target groups, modify the service - change the quality, properties, style. You can also move on to more active marketing through large trade transactions, the use of mass traders. On a smaller scale, conduct various promotions, contests, lotteries.

In fact, the entire list of methods should work in order to maintain the distinctive characteristics of the tourism service and prevent competitors from gaining a competitive advantage. And thereby prolong the period of maturity.

5 decay stage

The sales volume of the service eventually drops. It can drop sharply to zero, or it can drop to a certain level and remain there for several years. In this phase, firms typically abandon small market segments and profitable trading channels, cut advertising costs, and cut prices. Eventually, in the stagnation stage, market efficiency begins almost entirely to depend on knowing when to shorten the life of a product that requires more management attention than the profit it generates. The company can discontinue the sale of a service gradually, quickly if the costs greatly exceed the profit and immediately if the service may cause dissatisfaction with customers.

The relationship between the life cycles of a tourist service and a tourist destination.

Considering the life cycle of a tourist service, it is worth mentioning the life cycle of a tourist destination. Because, as a rule, the service either represents the trip itself to a certain tourist region, or is consumed in it. Thus, a tourist destination is one of the main elements of tourism.

A tourist destination should have the following main features:

2) be able to meet the needs of tourists, that is, have the appropriate infrastructure

A tourist destination can undergo periods similar to the life cycle of a tourist service in its development, which allows us to talk about their connection. The most famous concept of the life cycle of a tourist destination is the S-shaped model of the resort cycle (Fig. 3) by R. Butler. “The main indicator of the transition from one stage to the next is the change in the number of tourist arrivals, which unites this model with the concept of the service life cycle. In addition, the state of the natural environment and tourist infrastructure, as well as the attitude of the local population to visitors are taken into account. "

Fig. 3 Destination Life Cycle Model by Butler

1) The stage of destination exploration, like the stage of service implementation, is characterized by a small number of consumers or, in this case, visitors. Usually these are residents of nearby settlements who are attracted by natural and cultural attractions. There is no tourism industry, as it is unprofitable due to the small number of tourists. At this stage, tourism has little impact on the economy, environment and cultural environment of the destination.

2) Engagement stage characterized by an increase in the number of arrivals and the involvement of local residents in receiving and serving tourists, which in turn stimulates the creation of tourist infrastructure. Next, the formation of the tourist market begins, as well as the seasonality factor.

3) At the development stage, the destination receives an increasing number of tourists. The tourism and hospitality industry is growing rapidly. By this time, seeing the prospects for the development of this tourist destination, large tour operators and international hotel chains have come to the region. The geography of the origin of tourists is expanding. Due to tourism, the region itself and its economy develop, but at this phase of the cycle various contradictions and problems begin to appear: the impact on the environment increases, the uniqueness of the destination is erased by international standardization, the attitude of local residents towards tourists is replaced by a negative one. The development stage of the destination corresponds to the growth phase of the tourist service.

4) By the time stages of strengthening tourism has the greatest impact on the development of the region and is becoming the main economic sector of the destination. The tourist region is completing its integration into the global tourist system. But at the same time, the growth rate of tourist arrivals is slowing down, the quality of services begins to deteriorate due to congestion and deterioration of infrastructure.

5) Stagnation stage characterized by the fact that the peak of tourist arrivals has already been passed. The destination ceases to be fashionable and is kept mainly due to the “phenomenon of loyalty”, which also manifests itself at the stage of maturity of tourist services.

6) Decline or renewal stage primarily depends on the efforts of managers and business in the region. If the situation of stagnation comes down on the brakes, then decline is inevitable. If the key public and private sectors make joint efforts to rebuild the region, then there is a high chance of reaching the stage of renewal. It also confirms the link between the destination and service life cycles.

Another evidence of the connection between the life cycles of a tourist service and a tourist destination is the necessary set of actions for the formation of sustainable development of the direction, namely:

1) Identification of the most suitable segment, as well as subsequent market differentiation

2) Analysis of expectations and motivation of visitors, and creation of an appropriate product

3) Building a destination brand

4) Development of a system for promoting the region

5) Creation and qualitative change of objects of tourist interest

6) Attracting investment in tourism and hospitality for sustainable demand or reinvention of the destination

Combining all of the above, we can conclude that the life cycles of tourism services and destinations can develop in parallel. But if each stage of the destination's life cycle is selected a set of services that are at different stages of their cycle, then it will be possible to extract the maximum profit.

Tourism innovation

It is only after knowing and studying the forms and methods of work, both past and present, to start implementing new ideas and creating new directions of tourism. A thorough understanding of the field of activity allows you to control the development of events and stay ahead of competitors. The need for innovation in tourism leads to:

1) the growing need of the population to familiarize themselves with new cultures and acquire new knowledge

2) intensification of competition, standardization of offered products and services

3) combining attractive conditions for recreation and travel (natural and cultural features, opportunities for leisure activities, purchase of specific goods and special tourist services) to fully meet the needs of the most demanding tourists

4) the predominance of the service sector in the economy

Three branches of the development of innovations in tourism:

1.Organizational innovationrelated to the development of the enterprise towards the rationality of economic and financial activities (introduction of modern forms of accounting and reporting)
2. Marketing innovationaimed at meeting the needs of the target audience and attracting new segments.
3. Product innovation, changing the characteristics and properties of a tourist product, or its positioning.

The development of science and technology opens up new types of services and forms of customer service, as well as ways to improve the means of mass production of travel services and tourism products. Success in managing the lifecycle of a service can be a catalyst for better management. Travel companies are involved in information systems such as Galileo, Amadeus, Gabriel, Sirena, etc. And the further, the more the work of travel companies depends on the ability of staff to use these systems. They also affect the sale of both specific tours or packages, but the entire catalog of offers.

Thus, innovation strongly influences the development of the service life cycle. They contribute to the collection of information, the intensive and mass distribution of advertising, the improvement of the quality of the service and its availability for the consumer.

Conclusion

Based on the work done, we can conclude that in order to survive, the company must develop new products, but since all products, services, goods become obsolete over time, it means that the company must understand asits product is aging. And change your marketing strategy accordingly as the product goes through different stages of its life cycle. Studying the processes taking place as the travel service moves on the market also helps to find out how long it will take for a particular product or product to go through the implementation stage and start making a profit.

It is important to remember that marketing activities should not be ahead of the life stage of travel services, otherwise they can lead to a failure of unjustified financial risks and mistakes in promotion.

Also, for the successful work and development of the company, it is necessary to take into account the entire complex of information and knowledge applicable to the life cycle of a tourist service. This is the development of a tourist destination, because, first of all, tourists go for new places and new experiences, and this is the reason for a greater number of services. Infrastructure and related support services are essential. No less important for the consumer is the aspect of convenience, both of use and of receiving a service. Therefore, the tourism industry is increasingly taking advantage of scientific and technological development, which simplifies the path of the service to the buyer, therefore, accelerates the introduction of the service and stimulates the growth of product sales.

Thus, the size and profitability of any business depends on the life cycle of the tourism product and its changes.

Marketing in social and cultural service and tourism Bezrutchenko Yulia

6.3. The life cycle of a tourism product

When determining the market potential of a travel company, the experience of studying the life cycle of goods can be very useful. The essence of the theory of the life cycle of goods is that each product, no matter how excellent consumer characteristics it may have, sooner or later is ousted from the market by another, more perfect product. Only the presence of needs is stable, and the means of satisfying them are transformed. Every product offered on the market has a conditioned life cycle, during which it seeks its consumers. Like every product, a tourist product passes through a number of successive periods in its formation, which are characterized by fluctuations in the value of sales and income.

The period of the introduction of the tourist productthe market is the time when the travel company first offered it to its target audience. The main characteristic of this period is the low rate of product sales and, as a result, the absolute absence of even an insignificant income. The duration of the period for introducing a product to the market can fluctuate and is determined by the quality of the product, its response to consumer requests, the correctly chosen marketing strategy and its phased implementation.

Growth periodcan be characterized by a rapid increase in the scale of sales and, as a result, profits. Although marketing costs remain fairly high, their share in the joint venture costs is significantly reduced.

Maturity periodcan be characterized by a slowdown in sales growth, its stable position. This can be explained by a number of factors:

1) transformation of customer needs;

2) bringing new, more advanced products to the market;

3) increased competition;

4) the product may not be profitable enough for the travel agency due to the emergence of new opportunities for more efficient capital investment.

Recession periodcomes at the moment when consumers begin to get satiated with this product. There is a constant decrease in the scale of sales and a decrease, possibly even to zero, in the amount of income received. The entry of a tourist product into the recession period can be determined by a number of reasons. First, the launch of new products on the market. Secondly, the disappearance of the need that the given product met. Therefore, it is necessary to scrupulously consider both those products that give little income for several years, and those that are well known to the market, but for which activation it is necessary to change their image.

Consequently, the presence of the life cycle of a tourist product means - before a tourist enterprise three big problems.First, it must bring new products to the market in time to replace those in recession (a matter of developing innovations). Secondly, the travel company must be able to effectively organize continuous work with the available products at each of the periods of their life cycle (a question of a strategic approach to the periods of the life cycle of a tourism product). The third problem is to optimize the composition of the products offered by the travel company at different periods of the life cycle.

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