the tourism product development process

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Tourism product development involves creating innovative travel experiences that meet the evolving demands of tourists and enhance their satisfaction. This strategic process includes market research, designing attractions, and integrating local culture and sustainability practices. Effective tourism product development can boost local economies, increase visitor engagement, and improve the overall competitiveness of tourism destinations.

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Define Tourism Product Development

Tourism Product Development refers to the process of creating new or enhancing existing services and experiences offered to travelers. It involves strategic planning and market research to meet the evolving interests and demands of tourists.

Core Components of Tourism Product Development

To effectively engage in Tourism Product Development, it's essential to understand its core components:

• Attractions : These are the main drivers of tourism, which could be natural formations, historical sites , cultural experiences, or events.
• Accommodations : This aspect covers where travelers stay, ranging from budget lodgings to luxury hotels and unique accommodations like homestays.
• Transportation : Accessibility to and within the destination is crucial, including flights, car rentals, public transport, and other mobility services.
• Activities : Any experiences that tourists partake in at the destination such as guided tours, adventure sports, or cooking classes.
• Ancillary Services : These include support services like banking, communication, and retail facilities available to tourists.

For instance, a coastal city might focus on its beaches and marine life as primary attractions. It can then develop various activities like snorkeling tours, beachfront dining experiences, and cultural festivals to enhance its tourism product.

It's interesting to note how modern technology plays a role in Tourism Product Development. Destinations are increasingly using virtual reality (VR) to offer virtual tours. This innovation allows prospective visitors to experience a destination remotely, potentially increasing their interest and desire to visit. It also assists in heritage conservation by providing access to sites that might be difficult to maintain under tourist pressure.

Importance of Tourism Product Development

Tourism Product Development is vital for several reasons. Firstly, it helps destinations remain competitive in a crowded market, attracting visitors and driving economic growth. Secondly, it plays a crucial role in visitor satisfaction by ensuring tourists have access to high-quality experiences and services. Thirdly, it enables sustainable tourism practices by developing products that are environmentally friendly and culturally sensitive.High-quality tourism products can also aid in branding and positioning a destination, resulting in one-of-a-kind tourism experiences that distinguish a destination from others.

An often overlooked aspect of Tourism Product Development is local community involvement. Community participation ensures that the benefits of tourism are shared and sustainable.

Educational Tourism Product Development Techniques

When developing educational tourism products, it's crucial to incorporate engaging learning experiences that cater to a broad range of interests and learning styles . This involves innovative techniques focused on enriching the educational value while maintaining the entertainment quotient for tourists.

Techniques for Interactive Learning

Interactive learning is a key component of educational tourism and involves techniques that actively engage tourists in the learning process. Techniques include:

• Hands-on Workshops : Learning by doing is often more impactful. Workshops that involve crafting, cooking, or practicing traditional arts can enhance the educational experience.
• Guided Tours with Experts : Engaging guides who are experts in the field can provide in-depth knowledge and answer queries, making the tours more insightful.
• Technology Integration : Using augmented reality (AR) and virtual reality (VR) can make historical sites and museums interactive and immersive.
• Interactive Displays : Museums and educational centers often use interactive screens or exhibits to offer a dynamic learning experience.

Imagine a historical site offering a VR tour that allows you to witness historical events as if you were there. Additionally, workshops for making traditional crafts allow tourists to create their own souvenirs while learning about the culture's history and techniques.

Interactive learning techniques can also benefit from gamification . By turning educational content into games, you engage users in a challenging and rewarding manner. Many museums and heritage sites have adopted this approach by incorporating scavenger hunts or quiz trails, which encourage participants to explore deeper into the subject matter.

Strategies for Enhancing Educational Value

Enhancing the educational value of tourism experiences requires a strategic approach to designing the content and delivery of learning opportunities. Some effective strategies include:

• Curate Thematic Itineraries : Creating and curating themed experiences builds a coherent narrative that deepens understanding.
• Partner with Educational Institutions : Collaborating with universities or educational bodies can enrich the content offered and provide credibility.
• Feedback Mechanisms : Regularly obtaining feedback through surveys or direct interaction can help refine and enhance the education aspect of the offerings.
• Diverse Learning Modalities : Incorporate various methods such as visual, auditory, and kinesthetic learning into the activities and experiences.

Tourism Product Development Themes

Tourism product development involves crafting unique and innovative travel experiences. This process often focuses on specific themes to attract different types of tourists, ranging from cultural enthusiast to adventure seekers.

Popular Themes in Tourism Product Development

When developing tourism products , several popular themes dominate the industry, offering distinct and attractive experiences to tourists.

• Cultural Heritage : This theme focuses on showcasing the history and traditions of a destination through museums, historic sites, and cultural festivals .
• Eco-Tourism : Emphasizing sustainability, eco-tourism offers nature-based tours that promote conservation and responsible travel.
• Adventure : For thrill-seekers, adventure tourism includes activities like hiking, scuba diving, and zip-lining in exotic locations.
• Wellness : Dedicated to relaxation and health, wellness tourism offers spa retreats, yoga workshops, and nature escapes.
• Gastronomy : Culinary tourism allows travelers to explore a destination's food culture through cooking classes, food tours, and wine tastings.

An example of a popular theme in tourism is the cultural heritage tour in Italy, where travelers can immerse themselves in Renaissance art, historic architecture, and regional cuisines.

Did you know? Eco-tourism is gaining popularity as travelers become more conscious about their environmental impact.

Innovative Themes in New Product Development in Tourism

Innovative themes in tourism are gaining ground as destinations look to offer fresh and distinctive experiences that captivate the imagination of modern travelers.

• Virtual Reality Tours : By using VR technology, destinations allow tourists to explore sites in immersive digital environments before visiting.
• Smart Tourism : Incorporating technology such as IoT and AI in tourism infrastructure enhances visitor experiences through smart solutions.
• Space Tourism : An emerging trend where tourists can travel beyond Earth's atmosphere, providing a once-in-a-lifetime experience.
• Dark Tourism : Tours focusing on places historically associated with tragedy and death, offering a reflective experience on human history.
• Volunteer Tourism : Combining travel with community service activities, providing rewarding experiences both for tourists and host communities.

A fascinating aspect of innovative themes is smart tourism , where IoT devices are used to enhance tourist safety and convenience. This includes real-time updates on facility overcrowding, dynamic pricing models, personal recommendations, and even augmented guides who move with tourists through their smartphones.

Product Development in Tourism Industry

In the tourism industry, product development is a vital process that aims to enhance existing experiences and create new offerings to excite modern travelers. Successfully doing so requires an in-depth understanding of market needs and trends.

Challenges in Tourism Product Development

Tourism product development is often fraught with unique challenges that require careful navigation. Key obstacles include:

• Market Dynamics : Rapid changes in consumer preferences, global economic shifts, and geopolitical stability can affect tourism demands unpredictably.
• Sustainability : Balancing environmental impact with tourist activities is critical. Over-tourism can lead to depletion of natural resources and damage to local habitats.
• Infrastructure Development : Many destinations struggle with inadequate infrastructure, affecting quality and access to tourist attractions.
• Regulatory Framework : Navigating through local regulations and policies, including visa restrictions and environmental laws , can be complex.
• Cultural Sensitivity : Developing products that respect and preserve local cultures and traditions poses additional challenges.

Consider the challenge of developing eco-friendly tourism products. A national park may limit the number of daily visitors to reduce environmental impact while providing guided eco-tours to educate visitors about conservation.

To tackle these challenges, involve local communities in the development process to gain insight and support.

A deep dive into sustainability in tourism highlights innovative solutions such as green certifications and carbon offset programs. These initiatives allow tourism operators to measure and minimize their environmental footprints, contributing to global sustainability goals.

Role of Technology in New Product Development in Tourism

Technology plays an instrumental role in advancing tourism product development. It enhances creativity and facilitates unique, immersive experiences through various tools and platforms.

• Virtual and Augmented Reality : Using VR and AR for virtual tours and augmented experiences enhances accessibility and interaction with destinations.
• Data Analytics : Collecting and analyzing visitor data helps tailor experiences and optimize resource allocation.
• Mobile Applications : Apps offer personalized travel itineraries, real-time updates, and seamless booking services.
• Smart Solutions : IoT and AI applications deliver improved experiences through personalized recommendations and efficient service.
• Blockchain : Ensures secure transactions and transparent information sharing between tourists and service providers.

Virtual Reality (VR) is a technological innovation that creates simulated environments, allowing users to experience destinations remotely and immersively.

The integration of blockchain technology in tourism is increasingly common. It not only helps secure booking transactions but also allows for decentralized reviews that are trustworthy, providing tourists with accurate and unbiased feedback. As this technology becomes mainstream, it could potentially reshape trust dynamics in the tourism industry.

Tourism product development - Key takeaways

• Define Tourism Product Development : The process of creating or enhancing services and experiences for travelers through strategic planning and market research.
• Educational Tourism Product Development Techniques : Techniques such as hands-on workshops, guided tours, technology integration, and interactive displays enrich the educational value of tourism products.
• Tourism Product Development Themes : Includes themes like cultural heritage, eco-tourism, adventure, wellness, gastronomy , as well as innovative themes like VR tours and smart tourism.
• Product Development in Tourism Industry : Focuses on enhancing current experiences and creating new ones, often facing challenges like market dynamics, sustainability, and infrastructure development .
• New Product Development in Tourism : Involves innovative use of technology such as VR, AR, data analytics, and blockchain to create unique and immersive tourist experiences.
• Role of Technology : Technology, including VR, AR, and mobile apps, plays a crucial role in developing novel tourism products and enhancing visitor experiences.

Flashcards in Tourism product development 24

Building new hotels every year

Food export policies

Market Dynamics

Passive observation of exhibits.

Promoting fast food chains globally.

Focusing solely on natural attractions like beaches

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Phases of Tourism Product Development

The creation of a tourism product is a complex process. The following table shows the steps of creating tourism product −

The product creation process starts with primary inputs such as resources, raw materials, other materials for construction, energy, and fuel. This could also include the agricultural products required to prepare food for the tourists.

The primary inputs are then processed further through manufacturing or construction into intermediate (or processed) inputs . The intermediate inputs are nothing but the tourism facilities such as gardens, parks, museums, art galleries, shopping centers, convention centers, accommodations, restaurants, and gift or souvenir shops. They facilitate and support the tourism.

The intermediate inputs are further refined through expert management, workforce, and technical services, and packaging into intermediate outputs . The intermediate outputs are nothing but the services associated with tourism industry.

For example, the intermediate input such as a hotel room remains just as a commodity unless it is occupied by the tourist and turns into a part of a tourism product by incorporating the occupant’s experience. Similarly, the food at restaurants needs to be cooked and presented by the staff at any restaurant and needs to be ordered and consumed by the tourists.

The final outputs are nothing but the personal experience the tourist takes from availing services and by carrying out various tourism-related activities. The tourists utilize the intermediate outputs (or services) to generate intangible but a high value experience such as satisfaction, recreation, and completion of a business related task or maintaining a contact of friends or relatives.

Steps of Tourism Product Development

The following general steps are taken for tourism product development −

Research the Market

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

Match the Product with Market

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

Assess the Destination

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

Understand the Stakeholder Role

Tourism product development is the result of collaborative efforts of various stakeholders. It involves identifying all the stakeholders in private and public sectors, DMOs, Tourism and allied businesses, and their respective roles in creating or developing a part of a tourism product. The stakeholder meetings are conducted for creating a project plan. The project goals are set to realize long-term vision, medium-term action plans, and short-term progress assessments.

Product Building

At this step, the product is actually built using required resources and consultations of the expertise to create intermediate inputs (facilities and amenities) and intermediate outputs (services). It encompasses not only development of destination infrastructure but also support for special activities and experiences.

Marketing & Promotion

The functional and emotional benefits of the tourism at the tourist destination are communicated to the market. The marketing people create brochures, place advertisements on the business portals, and contact media to promote the destination and the product on the television and radio. They also use various other marketing techniques to increase the product visibility.

Providing Human and Technical Resource

It includes providing skilled staff and contemporary technology to cater the needs of tourists efficiently, to handle all tourism related operations at the destination effectively, and to communicate with the staff easily.

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As defined by UN Tourism, a Tourism Product is "a combination of tangible and intangible elements, such as natural, cultural and man-made resources, attractions, facilities, services and activities around a specific center of interest which represents the core of the destination marketing mix and creates an overall visitor experience including emotional aspects for the potential customers. A tourism product is priced and sold through distribution channels and it has a life-cycle".

Rural tourism

UN Tourism understands Rural Tourism as "a type of tourism activity in which the visitor’s experience is related to a wide range of products generally linked to nature-based activities, agriculture, rural lifestyle / culture, angling and sightseeing.

Gastronomy and Wine Tourism

As global tourism is on the rise and competition between destinations increases, unique local and regional intangible cultural heritage become increasingly the discerning factor for the attraction of tourists.

Mountain Tourism

Mountain Tourism  is a type of "tourism activity which takes place in a defined and limited geographical space such as hills or mountains with distinctive characteristics and attributes that are inherent to a specific landscape, topography, climate, biodiversity (flora and fauna) and local community. It encompasses a broad range of outdoor leisure and sports activities".

Urban Tourism

According to UN Tourism, Urban Tourism is "a type of tourism activity which takes place in an urban space with its inherent attributes characterized by non-agricultural based economy such as administration, manufacturing, trade and services and by being nodal points of transport. Urban/city destinations offer a broad and heterogeneous range of cultural, architectural, technological, social and natural experiences and products for leisure and business".

Sports Tourism

Tourism and sports are interrelated and complementary. Sports – as a professional, amateur or leisure activity – involves a considerable amount of traveling to play and compete in different destinations and countries. Major sporting events, such as the Olympic Games, football and rugby championships have become powerful tourism attractions in themselves – making a very positive contribution to the tourism image of the host destination.

Shopping Tourism

Shopping Tourism is becoming an increasingly relevant component of the tourism value chain. Shopping has converted into a determinant factor affecting destination choice, an important component of the overall travel experience and, in some cases the prime travel motivation.

Key Considerations in Tourism Product Design and Development

by Prince Kumar | Nov 10, 2023

Table of Contents

Imagine a world where travel isn’t just about ticking off must-see destinations but experiencing places in a way that’s sustainable, culturally enriching, and economically beneficial to local communities. This vision is at the heart of effective tourism product design and development . But what does it take to create such products in the competitive and complex world of tourism? Let’s unfurl the map and journey through the essential considerations that guide the creation of successful tourism products.

Understanding the Local Culture and Community Needs

At the core of any authentic tourism product is a deep understanding of the local culture and the needs of the community. This isn’t just about showcasing traditional dances or serving local cuisine; it’s about creating experiences that reflect the true spirit of a destination.

• Engaging with local stakeholders: To ensure authenticity, tourism planners must engage with local artisans, historians, and residents to capture the essence of the place.
• Educational and interactive experiences: Designing interactions where travelers can learn and participate in cultural practices adds depth to their journey.
• Community-based tourism: Empowering local communities to be a part of the tourism product not only enriches the experience but also helps in distributing economic benefits evenly.

Environmental Considerations in Tourism Product Design

The natural environment often serves as the main attraction in many travel destinations. Balancing the need to showcase these beautiful landscapes while protecting them is a delicate task.

• Eco-friendly practices : Incorporating green technologies and sustainable practices in the design and operation of tourism products is essential.
• Impact assessments: Conducting thorough environmental impact assessments before developing new sites can prevent long-term ecological damage.
• Conservation efforts : Aligning with conservation groups to protect local wildlife and habitats can enhance a tourism product’s reputation and contribute to its longevity.

Designing Competitive Tourism Products

To stand out in a crowded marketplace, tourism products must be designed with a competitive edge. This involves identifying unique selling propositions and ensuring they meet the evolving preferences of travelers.

• Market research : Understanding current trends and traveler behavior can guide the development of products that resonate with target audiences.
• Innovation : Regularly introducing new experiences or revamping existing ones keeps a tourism product fresh and appealing.
• Quality and value : High standards of service and delivering value for money help in building a loyal customer base and encourage positive word-of-mouth.

Branding and Image Management in Tourism

A strong brand and a positive image are invaluable assets in the tourism industry. They shape perceptions and influence decisions.

• Consistency: Ensuring that all aspects of the product from marketing materials to visitor experiences reflect the brand’s values is key to building trust.
• Digital presence : In today’s digital age, an engaging online presence through websites and social media is crucial for image management.
• Reputation management : Actively seeking feedback and managing online reviews can help maintain a positive image and provide insights for improvement.

Navigating the Product Life Cycle

Just like any other product, tourism experiences go through a life cycle from introduction and growth to maturity and possibly decline. Understanding this cycle is essential for long-term success.

• Introduction and innovation: Launching a product with a unique proposition can capture the market’s attention and set the stage for growth.
• Growth strategies: Investing in marketing and improving infrastructure can support the growing popularity of a tourism product.
• Maturity management: As the product matures, it’s important to refresh and diversify the experience to retain interest.
• Rejuvenation or reinvention: In the event of decline, it may be necessary to reinvent the product or find new markets to sustain its viability.

Product and Site Planning: Balancing Interests and Visions

Effective product and site planning is a balancing act that involves harmonizing the visions of developers, the aspirations of the community, and the conservation of the environment.

• Stakeholder collaboration : Bringing different stakeholders to the planning table ensures diverse perspectives are considered.
• Integrated development : Planning should account for the broader impacts on infrastructure, economy, and society.
• Flexibility : Adapting to change and unforeseen challenges is a necessary part of successful site planning.

Creating successful tourism products is much like crafting a masterpiece—it requires vision, skill, and a deep understanding of the materials you’re working with. In the context of tourism, these materials are the local culture, environment, and community. By weaving these elements together with market knowledge and innovation, developers can design tourism products that not only stand out in the global marketplace but also contribute to the well-being of destinations and their inhabitants.

What do you think? How can travelers themselves contribute to the sustainability and authenticity of tourism products? Can you recall a travel experience that truly felt authentic and sustainable, and what made it so?

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Tourism Products – Design and Development

1 Service Industry- Concepts, Characteristics and Issues

• Services: Concepts and Characteristics
• Factors Fostering the Growth of Services
• Characteristics of Services
• Services and Their Classification
• Conceptualisation of the Service Product
• Services Mix
• Services in Tourism

2 Product Designing

• Tourism Product Development: Conceptual Background
• Tourism Product Designing Development Issues and Considerations
• Marketing Considerations for Sustainability of Tourism Products
• Interpretation: A Vital Component of Tourism Product

3 Destination Designing- Issues, Priorities and Concerns

• Development of a Destination
• Principles of Destination Development
• Managing Tourist Destinations
• Concerns for Destination Planning
• Stages in Destination Designing and Management
• Operation of Destination or Site as a Product

4 Special Interest Tourism

• Special Interest Tourism (SIT)
• Developing SIT
• Designing SIT
• Culture as a Tourism Product: Possibilities
• Developing Culture as a Tourism Product
• Designing Culture as a Tourism Product
• Culture and Mass Media

6 Religious Tourism (Pilgrimage)

• Historical Perspective of Religious Tourism in India
• Designing of Religious Tourism Product
• Issues and Considerations for Designing Religious Tourism Products
• Characteristics of Religious Tourism

7 Ecology and Wildlife

• Potential Resources of Ecology and Wildlife for Designing and Developing Tourism Products
• Research and Analysis of Eco-tourism Market
• Potential Buyers for the Product
• Legislations Related to Ecology and Wildlife
• Designing the Product
• Developing and Positioning of the Product
• Tourist Behaviour
• Future Trends and Scope of Eco and Wildlife Tourism

8 Adventure Tourism

• Adventure Activities and Sports
• Market Research and Analysis
• Designing A Product
• Developing the Adventure Product
• Devising and Positioning the Adventure Product
• Future Trends and Scope of Adventure Tourism

9 Health Tourism

• What is Health Tourism?
• Designing the Health Product
• Development and Positioning the Health Tourism Product
• Future Trends and Scope of Health Tourism

10 Island and Beach Tourism Product

• Emergence of Beach and Island Tourism
• Features of Beach and Island Tourism
• Beach and Island As Tourist product
• Kovalam: A Case of Beach Product
• Lakshadweep: An Ideal Island Product

11 Ethnic and Rural Tourism

• Defining Ethnic and Rural Tourism
• Ethnic Tourism: As Tourist Product
• Issues and Considerations
• Potential of Ethnic or Rural Tourism in India
• Origin of Cruise Industry
• Present Cruise Industry
• Typology of Cruises Products
• Pricing of Cruise Products
• Types of Events
• Challenges and Issues Related to Developing the Products for Events
• Positioning the Product: A Case Study of Mareech Event Management Company

14 Resorts- Designing and Management

• Types of Resorts
• Growth Trends of Indian Resort Market
• Potential Supply Resources for Tourist Resorts
• Resort Designing and Planning Process

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José-Carlos García-Rosell

Three Perspectives on Tourism Product Development

Updated: Feb 29

In this post, I offer a concise overview of three distinct perspectives on product development within the tourism sector: the product-oriented, the customer-oriented, and the operational environment-oriented perspective. Delving into this piece will show how various factors such as product technical elements, customer demands, and the operational environment can significantly determine the start and emphasis of a tourism product development process. Whether you are an academic, student, or industry practitioner, this exploration promises valuable insights that may expand your understanding of tourism product development in both theory and practice.

The product-oriented perspective

In product-oriented tourism product development, various service elements and features are emphasized as the starting point for product development. For instance, according to the well-known Smith's model, the initial phase of producing a tourism product involves the planning and management of a specific location (such as a lake, tourist resort, or forest). In subsequent phases, other elements, such as service quality, the right service attitude, a broad service range, and the physical and emotional participation of the customer, play a crucial role in shaping the tourism product. All these elements mentioned in the model are measurable and can be evaluated based on economic criteria.

The product-oriented perspective describes tourism product development as a technical process with a clear structure divided into stages such as identifying market opportunities, planning, testing, and introducing the product to the target markets. Through these stages, market needs are transformed into marketable tourism products. The starting point is market research, which aims to reduce potential errors before directing additional resources to the product development process. In the planning stage, product concepts are ideated and drafted, tested before finalization. Once the first three stages are completed, and the product is flawless, high-quality, and safe, it is launched into the market.

The customer-oriented perspective

In customer-oriented tourism product development, the process starts with the experiences and needs of customers, as well as the benefits derived from the product. Most attention is given to activities and services that meet customer needs and ensure high-quality experiences. As a result, the entire product development process is influenced by the choice of the target customer group or market segment that a company or region aims to prioritize. The principles guiding the customer-oriented perspective are rooted in the realm of service marketing. Product development based on a customer-centric approach is, in many respects, also a well-scheduled process divided into different phases with a clear starting and ending point.

In discussions on customer-oriented tourism product development, we cannot omit the concept of co-creation which has gained prominence in service marketing. Vargo and Lusch refer to co-creation as the collaborative production of services wherein the active role of consumers holds significant importance. Consumers are not passive recipients of company offerings; rather, their experiences and knowledge are actively incorporated by involving them in the product development process. Tallink Silja's "1000 Product Developers" and Finnair's "Quality Hunters" are good examples of successful campaigns aiming to actively include consumers in the product development process of these Finnish companies. While the co-creation perspective broadens the involvement of consumers, product development is still perceived as an internal function of the company. Essential information and market knowledge are sourced within the company or from its customers.

The operational environment-based perspective

According to this perspective, the starting point for tourism product development is the operational environment of the company. The operational environment refers to the relationships between societies, regions, industries, and people, often on both global and local scales. This perspective also relies on co-creation, which extends beyond interactions solely between the company and its customers to include other actors and stakeholders. While tourism experts and customers are important, it's also crucial to consider the knowledge and perspectives of tourism workers and local community members. Tourism product development emerges from the interactions among various stakeholders in tourism, influenced by diverse local and international networks. These interactions always occur within specific places, such as villages, hotels, or websites, and involve social, cultural, sensory, natural, and constructed elements.

From the operational environment-oriented perspective, product development is viewed as a holistic activity, where the development of the product also leads to the evolution of the organization's practices. The starting point is the continuous evaluation of operations, which helps the organization and its stakeholders to question established business practices and discover alternative ways of thinking. Product development is not a straightforward process with a clear beginning and end, but rather a continuous, interactive activity. Therefore, an operational environment-oriented perspective emphasizes product development as a collaborative effort between the company and its stakeholders, aimed at creating new ways of operating, meeting customer needs, and establishing business practices. Good examples of operational environment-oriented product development can be found in tourism companies such as TreeHotel and Icehotel . In both cases, product development was led by elements found in the small localities where the companies operate. The Tornio River was the driver of Icehotel innovation process while the Forest in Haralds played a key role in the development of Treehotel as a tourism product or attraction.

These three perspectives are not mutually exclusive; rather, they complement each other in understanding the process of product development in tourism. Product development can take the form of a linear process with a defined beginning and end, or it can manifest as an ongoing interactive activity. Throughout the product development process, not only are the internal operations of the company present, but also customer practices and the specific characteristics of the operational environment.

This blog article is based on the book chapter " Matkailun tuotekehitys " authored by José-Carlos García-Rosell, Minni Haanpää, and Sanna Kyyrä (2017) and published in the book "Matkailututkimuksen avainkäsitteet" edited by Johan Edelheim and Heli Ilola.

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Handbook on Tourism Product Development

Publication date: Oct 2011

Language: English

Tourism products are the basis for a destinations tourism sector operation: unless the tourism product meets the needs and expectations of tourists, the destination cannot realise its full potential. However, only few destinations focus their attention on the development and delivery of the various attractions and activities that make up the tourism product.

The UNWTO/ETC Handbook on Tourism Product Development outlines the essential elements in the process of tourism product development planning and implementation, e.g. coordination, consultation, collaboration co-opetition. It illustrates these principles through a range of successful approaches and case studies from around the world and sets out best practice examples and benchmarks by which destinations can assess their own product development system and methods.

Executive Summary

Table of contents.