[Melvin:] Could you also... for your passports just note the following information. Country of issue, whether it's a five or ten year passport... expiry date and your passport numbers. Again we can, we use that information when we go through various customs and border points. If... if we can give the lists in it just makes it easier. So if I could ask you just to complete that.
[speaker002:] forms?
[Melvin:] Yes Er there's some more over here, they're on their way round.... Right, has everybody... got one now? Are there any spare green forms anywhere?
[speaker002:] Here.
[Melvin:] Thank you. Can you, if you can let, simply let me have those in at the end of the session or if you can give them to Eleanor at the end of the session.... Right. Okay wh what er I'll give you time to fill that in at the end. Erm... what we're gonna do for the second part of the morning is to look, if you like at the tourism application for the determinants of demand. I'm gonna start by going back to that graph we looked at first thing this morning which is trying to explain what had been happening to the pattern of tourism, both visitors to this country and visitors moving away from this country in the period nineteen seventy eight to nineteen eighty two.... And if you wanna look at this graph... the period we're talking about is indicated with these dotted lines and you can see the green line here representing U K residents holidaying abroad. You've got a very sharp increase and then after nineteen eighty two it stabilizes a little bit. Er it moves up again in eighty five to eighty six and the general trend you can see is still upwards though it's certainly not repeating the growth in this period. At the same time, you can see the domestic holidays... the pattern's less clear, but certainly there doesn't appear to have been any growth. Now what I want to do is look at what was happening at that time and then try and explain using the determinants of demand... what the patterns actually were.... And so... if we look at what happened generally between nineteen seventy eight and nineteen eighty two... the general picture is that the number of total holidays taken actually fell by three percent.... And the number of U K holidays taken, domestic holidays in this country, that figure fell by seventeen percent and yet we can see here that holidays actually taken abroad by U K residents rose a staggering fifty seven percent over the four year period. So clearly in this period... the U K holidaymaker moved from being someone who primarily took their holidays in the U K... very definitely into someone who was now taking their holidays abroad.... Now furthermore, if we look at what was happening to the population itself, remember that under the economic basis of looking at determinants of demand, we saw that income was a crucial factor. And so if we look at what was happening to income at that time, we find that the disposable income, meaning the amount of money we have to spend on other things after we've bought essentials, that figure rose by only one and a half percent throughout this period. However, holiday expenditure rose by twenty four percent and spending on overseas trips rose by fifty percent.... So quite clearly we were experiencing a major change in tourism patterns in this country. Now the other thing we should remember is that between nineteen seventy eight and nineteen eighty two, certainly in the early nineteen eighties, eighty, eighty one, we were in the midst of a recession and so that should tell us that really people should have less money to spend on holidays. At the same time, we know that unemployment in this period was rising rapidly. And so if people had less money in their pockets and they were losing their jobs, what factors can explain why more and more people were actually going on holiday abroad? It doesn't, if you like, make sense and the key year, as I say, is nineteen seventy eight because that was the first time that spending on overseas holidays exceeded the spending on U K holidays. So from nineteen seventy seven, seventy eight... the U K holidaymaker... now became an overseas holidaymaker in the main.... And we can conclude that some form of revolution had taken place in overseas holiday participation... despite the high unemployment and the recession.... What we're gonna try and answer now is the reasons why this happened.... Because on the basis of the economic models and the way which we look at determinants of demand in economics, this shouldn't have happened, we should have had the reverse, we should have had fewer holidays being taken and certainly fewer overseas holidays. Can anybody s like to suggest what reasons could possibly explain why so many overseas holidays were being taken?... Or where the money was coming from to actually pay for these holidays....
[speaker002:] Is it to do with the package industry revolution?
[Melvin:] Right. Er certainly within package holiday companies itself, competition was intense during this period... and price being the major factor in determinants of demand, all the tour operators try to keep price down to a minimum and over this period you would find the average price for a package holiday would barely have changed one year to the next. In fact if you look at the average price of a package holiday since nineteen seventy eight, the increase in prices has been absolutely marginal. Certainly well below the rate of inflation. An illustration if you like of how competitive the package holiday industry became. So in fact prices were good. Where would people have got the money from?... Any ideas?... Okay people could well have been using savings....
[speaker002:] Redundancy.
[Melvin:] Right good. It's thought that a lot of the spending money for these would have come from redundancy payments when people lost their jobs. And that might seem a rather odd way to actually spend some of your redundancy money, but perhaps this leads us on to another area influencing the demand, and that's to do with, if you like, psychology. Er making yourself feel good even if it's only for a short time. If you can imagine someone losing their job, the depression that actually causes, perhaps both within them and with their family, the idea of being able to take them away for a holiday to forget about things might be a good thing at the end of the day. The other thing is that of course, going back to the competition with price, these holidays weren't that expensive. We're not talking about vast sums of money necessarily here. Are there any other factors which can explain... the taking of these holidays?...
[speaker002:] The rising cost of holidays in the U K.
[Melvin:] Er okay, it could be the rising cost of holidays in the U K. Possibly not so much the cost, what other factors in the list of, of determinants could come into play now?
[speaker002:] Weather.
[Melvin:] Right, climate is always a major consideration. Er... in nineteen seventy six for example, we had... the long hot summer as people call it. I think we had something like eight and a half months without rain and... there's the feeling, quite often, that when we get a good summer in this country, people assume that the next summer will be just as good. And so you can imagine all the people in nineteen seventy six thinking well... you know, there's definitely been a climatic change, we're gonna holiday in the U K in nineteen seventy seven. Nineteen seventy seven's summer was a total washout and that would tend to push people perhaps more towards guaranteed sunshine in the Mediterranean. So climate is a key factor. Anything else?... Okay well let's look at some of the main possible reasons for this in more detail. The reasons I'm gonna give you were supplied by a guy called Tony. Tony is actually a consultant. He used to be the marketing director of Butlins and obviously these trends were important to him when he was at Butlins because Butlins was actually losing... the market. So the reasons why. The first thing... we can say is definitely the strength of the pound. The pound sterling was very strong against the dollar and relatively strong against currencies like the deutschmark.... Now bearing in mind what we were saying about exchange rates before the break, if the pound was strong that obviously implied that people wanted to buy sterling, but what goods did they want to buy off us?... What major good were we producing or did we start producing around nineteen seventy seven?... Which brought a lot of money into the country.... One major good.... Output.... Okay it begins with O... oil. Okay? Very good. North Sea oil. North Sea oil came on board and suddenly we had a product which people wanted to buy. In order to buy the oil off us, they had to pay sterling and so hence the demand for sterling goes up and suddenly we were viewed as a very rich economy. Ironically the price of sterling went up so high that it made it very difficult for us to sell our other manufactured goods and many people are now of the belief that because of the North Sea oil price rises, this had an adverse affect on our economy, making it more difficult for us to sell manufacturing goods... because the pound was very strong against other currencies. So the strength of the pound caused through North Sea oil was a major factor. It meant it, it was very cheap for us to go to places like Florida for our holidays. Secondly, there was relatively low inflation abroad, certainly in the main holiday destinations in Europe. Prices were not going up too fast and again this made it economical for us to visit.... There was also a decline in real air transport cost.... And by this we mean in terms of things like the cost of fuel, although it did go up again in nineteen seventy nine, but also with respect to new services being offered. Er... Laker with his Skytrain, the people's express, we had a lot of new airline operations starting up which offered cheap seats so that the relative cost of flying was coming down. And the net result of all of these things together is that it narrowed the cost value differentials between U K and overseas holidays. Overseas holidays now started to look cheaper than actually going abroad. Sorry, than actually holidaying in Britain.... Right, the second factor which Tony outlined was what was happening in the population and again we've already talked about this. Basically there's a decline in the number of children during this period, people under the age of sixteen, by around about eleven percent.... At the same time, there was a growth in the age group between sixteen and twenty four... of about seven percent.... And finally, again we've already talked about the elderly... er age groups, there was a growth in the sixty plus age group of about five per cent....
[speaker002:] Sir is that children?
[Melvin:] Yeah. Yeah sixteen, under sixteen, then sixteen to twenty four, and then sixty plus.... Now in this particular period if you were looking at these figures just like this, what would be your automatic reaction in terms of the type of holidays we ought to be providing?... What sort of holidays should we now start providing during this period?... Which age group?... Right, sixteen to twenty four. So can you think of any... er brochures or any companies which were around at that time to take advantage? Probably the most famous one Right, Club Eighteen to Thirty. Okay so Club Eighteen to Thirty was doing good business around this period because of this situation. Now what we have to do however is look at it in more... in more detail than just simply the age of people. We're also gonna look at where they live, remember what they're income is etcetera and the important thing is... because of these increases here... and because of the recession in general, it dictated to us that there were gonna be more one and two person households. Households without children in other words.... And this implies greater mobility both physically and financially.... If you picture a, for example, a typical couple perhaps living in London, erm the price of property... is such that you maybe start with an apartment. If you want to have children you've gotta offset that against, for example, having a car or a new stereo, things which affect your lifestyle. So the pattern would have been perhaps towards marrying later, or certainly having children later and then perhaps moving out of London. So this in a sense tends to reinforce the idea of these households with just one and two people living in them. As the recession's gone on through the eighties and enters the nineties, we can see that the number of single households, households with just one person, is increasing rapidly. It's a major market and the tourism industry has really been very slow to wake up to this factor. Because if you look in any package holiday brochure, you'll still see that, in order to get a room, you need two people. If you, if any of you, you probably haven't, seen any brochures specifically geared towards single people. Very, very few. And yet that's a major growing part of the market.... A third area will be social factors and here you've already mentioned the weather. Climate obviously is a major determinant of demand, attracting people to if you like the guaranteed sunshine. Ironically, now we're probably moving into a new era where sunshine is actually seen as something harmful giving things like skin cancer, er certainly in the Australia market it's the case at the moment. And so ironically, although climate will be a factor in er this century and into the next century, it could be well to escape the sun. The direct reverse if you like of this period here.... The second factor is of... is the whole question of holiday entitlements. The number of weeks paid holiday... that a worker will get is increasing rapidly so as today we have the norm of twenty days plus public bank holidays, giving more time if you like to engage in a package holiday abroad. Another social factor is the whole thing about foreign holidays being seen as somehow superior. Remember we keep talking about tourism as being fashionable, it's fashionable to say you've been to certain destinations. Saying you've been to those destinations in the U K doesn't actually hold the same appeal or esteem. So the foreign holidays, because you're guaranteed sunshine, cheap alcohol, everything else, somehow being seen as better than the traditional British holiday. At this time remember the traditional British holiday was seen as staying in a boarding house with a landlady. You had to be in at a certain time... you know, you had very standard cuisine, it was, it had become if you like, ridiculed in jokes and things of this nature.... And yeah another one connected to this whole lifestyle, aspirational argument... the image the brochures give us of a couple si sitting on a terrace with, you know, you can almost hear the music in the background, the sun setting over the sea. If you like, giving us the Hollywood image that we can live that lifestyle for two weeks. Very difficult to imagine British resorts somehow trying to capture that. I mean you simply can't, you can't guarantee the sunsets for one thing. A fourth factor, education.... Er around this period we have the widespread... use of things like colour television... which has now started to appear in everybody's homes... and the beginnings of various holiday programmes. So that again, once a week you have a visual image of what different resorts look like, but this time in colour. And again we talked last week about the use of colour in photographs in brochures and things, if you like, to reinforce the sunshine element when you're sat in the snow in the winter watching Wish You Were Here or one of the holiday programmes. Video is probably also an important factor. A lot of travel companies starting to introduce video. Very commonplace today... go in to Thomas Cook's there'll be a video running continually with one destination or another or an activity holiday etcetera. And a fourth factor, third factor rather, school trips. Now again I mentioned this last week, the idea of introducing schoolchildren at a very young age to different countries and different cultures... so that in fact when they come to go on holiday on their own or with a partner... it holds no fear for them... unlike, if you like, senior citizens might do. And it's plain that this in fact is one of the major reasons explaining why more and more people are actually travelling overseas now.... The final thing is to do with marketing... and here we've got, in particular, the convenience of the ITs, remember the inclusive tours. You go to a travel agent, you pay a cheque and that will cover your accommodation, your meals, your transport, your insurance, it can even cover your entertainment. Very very easy to purchase. If you contrast that with holidaying in Britain, even today relatively few people will be a buy a package holiday in Britain because somehow we think we can do it better ourselves. We don't need to buy a package, we can simply lift up the telephone, book our own accommodation, use our own car. And obviously that you can do, but it takes time, it's quicker just to walk into a travel agent and pick up a cheap bargain. Ease of purchase.... Again the fact that you buy a single package very often when you go overseas.... The tour operators recognizing that people had different demands at this period, were developing specialist markets. Club Eighteen Thirty, activity based holidays, holidays to exotic destinations.... And with, these destinations, you can u use strong promotion. If you go past any travel agent's window during the winter, look at what they've got on display. Invariably it will have palm trees and sunshine. It has maximum impact when we're trudging through the snow and the rain. And the final thing, a factor we've already mentioned, price competition.... Now these are the reasons that, why Tony claims the revolution would have taken place around this period. And these are all re really valid but what I want to do now is start looking more into how a visitor actually thinks. What influences them inside their heads to actually go for a certain destination. And how do we actually use this in marketing. Now we started the morning... by looking at the determinants of demand. And what I want to do now... is to look at two elements. I'm gonna split the determinants into two. On the one hand I'm gonna say you've got the enabling factors, these are things which enable you to actually participate in taking a holiday overseas. And then here we've got the motivating factors. If you like the psychological influences.... So we might in fact simplify this by saying these are the enabling factors... if you like, to leave home... these are the motivating factors... pulling us to a certain destination.... And, go through the enabling factors first, they're very very straightforward, it's the motivating factors which are more complex. So what are the things which enable you to leave home? Firstly... if you've got a supply of holiday products on offer. If you've got travel agents round every street corner then it's very easy simply to walk into them and buy a package on the spot. You don't need, for example, months of preparation and planning in terms of perhaps where you're gonna go.... This is particularly true in recent years, because more and more people nowadays book holidays at the last minute. Very often it's to try and take advantage of price deals, but also it's because we now know there perhaps isn't the urgency to buy a holiday in February because we know there'll be plenty around still in June or July. Increasingly as well many people are making their own holiday arrangements. Er some of you I suspect are already into things like bucketshop flights. How many... how many people are aware of bucketshop flights?...
[speaker002:] Tried it?
[Melvin:] Well not necessarily tried it but you're aware that they exist.... Yes, well it's a few people. These are very very cheap discounted tickets er usually using what we might call the dodgier carriers of the world, not necessarily those which have got a bad safety records or crash records, but where the cuisine isn't quite as good on board, or... you don't get an inflight movie. Erm... just to digress, you've got well known airlines er such as Tarob of Rumania where you can get cheap flights with them virtually anywhere except ironically to Rumania
[speaker002:] [LAUGHTER]
[Melvin:] erm... you've got other airlines erm... such as erm... er Geruda of Indonesia er Imam of Bangladesh, there's a whole sequence of them. And if you wanna go somewhere in south east Asia you can pick up flights which are very very cheap. Less than half the price of, for example, a standard British Air Apex ticket. So the supply available is very important. Likewise when we go to a country, we need somewhere to stay and over the last decade there have been more and more hotels built in virtually every place in the world. Secondly, you need disposable income, obviously.... A third factor concerns, if you like, the demographic situation, if you've got children erm if you've got elderly relatives to look after, that will obviously determine whether you're enabled to travel and perhaps where to.... You've also got geographical factors... the journey time.... Again last week we talked about the feasibility of going to Australia for a week and the impact it would have on you after things like jetlag.... You've got things like socio-cultural factors in terms of paid holidays.... How many paid holidays do you get a year and when are you likely to be able to take them. For example, many people have four weeks' holiday a year, but not many people can take that four weeks all in one go, there are usually restrictions that you can only take maybe a maximum of two weeks. Hence the socio-cultural factors are important erm and another important one at the end of the day is your own personal mobility. Your own health and fitness. Now this can become an increasingly important factor because of all the activity holidays around today. For example if you go for a Peter Stuyvesant activity holiday, you have to have a medical first. Erm unless you've got a doctor's note saying that you've passed the medical, they won't allow you to actually go on the activity holiday. Now that's a drawback in many respects, but it's also if you er think about it, a very good selling point. It makes it sound really challenging and adventurous before you've even bought the package, the mere fact that you have to go through that beforehand. Motivating factors are more complex... and the sort of things we'll be talking about here... something we call income elasticity.... And in fact we'll come back to look at this and Bob will also be looking at er with you environmental analysis as well. Erm the whole question here is if you have more money in a sense, what do you spend it on? In general we find that, for a very small increase in, for example, wages, we tend to spend a lot more, proportionately, on holidays. It's almost as if we think subconsciously well we've got that little bit extra, let's go for it. Even though in effect you're using more of your income proportionately than you would have been doing before. The other thing about holidays and elasticity is the question of what happens when the price of a holiday goes up. Now we looked at the graphs and that should dictate in general that demand will go down. But it doesn't seem to work like that. In general even if the price of a holiday goes up extortionately, the number of people going overseas tends to stay about the same. W we haven't noticed, if you like, a very big change in it. If you at the statistics over the last three to four years, you'll find the number of U K people travelling abroad has always stayed round about the thirty million mark, despite what's happened to the prices.... A second factor... motivating people... again... it's the demographic situation, the fact that if you haven't got children, you're free to do what you want. You don't have any, if you like, responsibilities as such.... Geographical factors can be a motivating factor, er we've talked about the sun and the influence of the sun.... You can also have geographical factors again, as we said last week, to do with things like scenery and obviously geographical factors are very important if we consider skiing er with the classification of the ski slopes between difficult and suit beginners. Or the pistes as we call them. Socio-cultural factors... these relate to things like our beliefs and notions... and our aspirations. But probably the key one here is the belief that somehow if we go on holiday, we're gonna come back totally refreshed. Again we talked about this last week, fifty weeks of the year you toil... and you look forward to your holiday months in advance, you then take your holiday and somehow it recharges your batteries so that you're ready to do battle again for the next fifty weeks. It's claimed by many people that we live in a cycle where, if you like, we struggle to get through fifty weeks of the year to live for holidays... recharge the batteries, then you go into it again.... Incidentally on this one you've got the lifestyle aspirations. If you think of what you do on a holiday, it's a totally different lifestyle to when you're normally working and obviously people desire to have that sort of experience more and more, and you've got the rise of things like short breaks. So again the trend today is towards people having at least one overseas trip a year and possibly two or three short break weekends as well. Er increasingly, we're also looking at a new market which has a holiday in the summer overseas and in winter goes skiing. Again trying to get more of this lifestyle into their day to day existence.... Comparative prices are gonna be a motivating factor. Competition, the price of alternatives etcetera... and then you only have to look in any travel agent's window to see that that's an important factor today. Windows covered in prices, lots of talk about discounts, vouchers, all sorts of things to try and get you to part with your money.... Personal mobility. Here by the main we're talking about the motor car. The advent of the private car has made a greater percentage of the population mobile, we can reach many different areas today by private car.... And then we've got some factors which I wasn't sure where to put, government regulations... erm... again you'll come on to this later in the year... deregulation of the airlines allowing free competition between airlines and low prices.... Issuing of passports, currency exchange controls... these can be both enabling and motivating factors.... And finally, the big one, the impact of the mass media. Everything from newspapers to television... movies... the lot.... And so while these things here enable us to leave home, if you like, these things are buzzing round in our head and in marketing these are things we have to look at... in order to, we have to be able to make product and then try and assess how will the... tourist or potential tourist respond to this. What will they think about it. And so... just gonna do a diagram now, just look at buying influences.... What are the things which actually are going through someone's head when they buy a product.... You don't need to list all of these, just the headings are fine.... We've got both, if you like, cultural motivations in our head.... Cultural beliefs, values and lifestyles....
[speaker002:] say at the top
[Melvin:] Er that's just buying behaviour. Patterns of buying behaviour.... So the first things going through a buyer's head, or that will influence them, will be the sort of lifestyle they're actually looking for. The value they're attaching to this holiday, is it an important element for them? Is it the one thing in the year for them. Are they just doing it quickly as a one off? What do they expect to get out of the holiday? Now so far we've talked about things like recharging the batteries. What other things is people likely to get out of a holiday though?... Imagine when you go on holiday, what other things are you hoping to get as a result of it?...
[speaker002:] A sun tan.
[Melvin:] Right, a sun tan. Well you're probably only doing that though in order to impress people when you go back. So you're looking for attention probably more than anything. So attention seeking's one thing.
[speaker002:] Have a good time.
[Melvin:] Sorry?
[speaker002:] To have a good time.
[Melvin:] Okay, you could... what, what would you be hoping to achieve during that good time?... Have a few laughs, what else though?... What other things do you hope or do you think might happen shall we say?
[speaker002:] To meet some nice people to go on holiday with.
[Melvin:] Right, meeting people. Things like romance are very important with holidays. I mean, you all know about the image the cruiseliners have with wealthy widows and things like that. The Club Eighteen Thirty idea is much along similar lines, and if you look at a Club Eighteen Thirty brochure, the sort of activities people do together, bringing people together. So this is all an important element.
[speaker002:] Cuisine.
[Melvin:] Right, cuisine could be an important motivating factor. Er basically stuffing yourself to excess for two weeks. Drinking yourself to excess for two weeks for peanuts. Again, that would be something. But in general the people who are doing some of those things, a lot of it's probably escapism... certain type, complete break from their work. What other things do you think you would hope to get as a result of your holiday?
[speaker002:] Time to relax.
[Melvin:] Right. Okay time to perhaps to relax, to reflect....
[speaker002:] see various water sports
[Melvin:] Okay, so you can improve your prowess at windsurfing. And certainly there's the fitness, activity side, that can be an important motivating thing. What else will you do on holiday? All we've talked about so far is drinking and lying on a beach.
[speaker002:] [LAUGHTER]
[Melvin:] Sorry?
[speaker002:] Sightseeing.
[Melvin:] Right, sightseeing. So what do you hope to get out of sightseeing?...
[speaker002:] Increase your knowledge.
[Melvin:] Right, increase your knowledge....
[speaker002:] See different cultures.
[Melvin:] Right, see different cultures.... Anything else?...
[speaker002:] Take photographs.
[Melvin:] Sorry? Okay. Look at nature, get back to nature. Certainly that's the appeal of Central Parcs. Anything else?
[speaker002:] See how it feels, the way that they live there.
[Melvin:] Okay well that would again tie perhaps more in with culture. I mean you can, you're starting to get, if you like, a big list now of motivating factors. Er for example all of us in this room, if we went to one destination, we'd probably all come away with a different combination of things that we'd actually got from it. It might be education, it might be knowledge, interest can be another one... er relaxation, romance, having a good time... there are a whole se sequence of different reasons. There are other reasons as well, things like peace and tranquillity... er time to reflect... er and yeah there are other motivations as well which you, if you like, are kind of negative. For example the desire to escape your humdrum existence... back here, er the desire to escape the family, er to have someone moaning at you continually, these are all important factors which add on. So in effect there are kind of like negative motivating factors which is basically all to do about escape... where you don't care where you go as long as you get away from here. And then there are the things you get when you actually go to a destination. So... again if we look at all of these things across the top... we've got other things influencing across here... when you go on holiday you, each of you in this room, you'll probably have some idea beforehand of what you want to get out of that holiday. For example if you go on an overland trip trekking in erm South America, you're clearly looking for something totally different than the person who goes on the sort of typical Club Eighteen to Thirty type holiday. Other things which will influence, it's claimed, are things like social class... er again used ex er extensively by marketing people in this country. Now you'll be doing this before Christmas, and what it is is there, there are lots of different categories we can use but the standard one is dividing the population into six distinct categories. By and large it's according to people's occupations and you start with A which will be professional people, surgeons... solicitors etcetera. You have B which are managers. C one which would be office workers. C two... skilled workers. D unskilled workers and E, that would be everybody else. Okay? And as students you're in E. So this will actually influence you, because you'll be able to look through the brochures and see which of those groups it's being targeted at. Erm to give you an example... let me show you this brochure here... this is Page and Moy... high prices and clearly that is aimed at A and B.... Looking at this one... you can see that the whole format's totally different, like the cartoon on the front... and the layout. And that... who would you say that was aimed at?... Well it's young people, what sort of occupations?... Would it appeal to you?... Do you think?... Er there...
[speaker002:] Mm yeah I think it would
[Melvin:] Yeah. So we're probably thinking perhaps partly students. Er because people in this age group haven't yet become managers and certainly not professional, we're probably thinking more in terms of the Es and students and perhaps C twos C ones. These are not cheap holidays so it probably rules out the D category. So the social class structure is important. It's also the question of mixing between these groups as well. It's claimed that people feel uncomfortable if they're plunged into a group of people who are perhaps from a different social class or background say. In particular in this country and it's also the same in France and Germany. We tend to be fairly what we might call gregarious, meaning we like to stay with people of our own type. People speaking our own language, people who do similar things to ourselves. The final one here again, simply economic. Again we're back to price and things of that nature. And then we have the individual psychological factors which go through our heads.... And the things that actually go through our heads we refer very often to as cognitions. Cognitions.... Our thought processes.... For example if you went to Nepal, one of your motivations for going there might be to meditate or relax and that would be a cognition. It's something you would know within your own head.... We have the various learning processes, how do we learn?... That's quite an interesting one, if you consider as students how do you learn... erm... in general you probably don't learn that much in lectures because for example we know from experiments that we all have a limited attention span. Basically you will listen for maybe... seven minutes then you switch off for two minutes... then you switch on again and then you try and think well what was I listening to... seven minu well you know, three minutes ago... what was probably said in the last two minutes. By the time you've sussed that out, you've missed another five minutes, your brain gets confused so you then switch off again for another three minutes and try and clear everything. And you're doing this the whole time. But how do we actually learn?...
[speaker002:] Taking information through your senses.
[Melvin:] Okay you take in... right reading, listening
[speaker002:] From experience.
[Melvin:] From experience... and there are also the occasions very often when you're, if you like, force fed. When you've got exams you have to learn. You have to be able to hold it up there and perhaps put it down on paper or apply it. We also learn from things like television. Most of you here, a great deal of your knowledge probably comes from watching television. Possibly more nowadays than, for example, from reading as would have been the case in the past. This is an interesting one, the interpersonal response.... How do you interact with people when you go abroad? Are you the type who wants to go up to, you're on holiday in Spain, go up to a Spaniard... go hola
[speaker002:] [LAUGHTER]
[Melvin:] you know, and actually try and hold a conversation with them. Are you the type who thinks god there's someone from Spain over there, oh it's alright there's a load of people from my nationality in the bar... and stick with them. Are you looking for the interaction where you learn something about the culture from talking to the people or do you want minimal interaction where simply you visit a place, and you stay in your little bubble... or ghetto... with people of your own tour company, you do everything together and you never come into contact with local people. Erm... two if you like extremes and there's a lot of things in between. It doesn't incidentally mean that one is good and the other is bad. Er a lot of people give the impression that we should all be more interactive, that we should go abroad and speak languages to many of these people, but the people you come into contact with when you go on holiday in Spain, the only Spanish people are likely to be the waiter who served you... and he's serving you as part of his job. His job is also to be friendly to you, to smile at you, you know, when you want it, so it's not really an equal relationship. It's very difficult, if you like, to develop a true friendship and exchange of ideas. The waiter very often will tell you what you want to hear. Yes? If you think about that, it's a very difficult situation. Attitudes are important, what attitudes do you hold. In particular, what prejudices.... Do you have a prejudice against for example eating oily food?... Do you have a prejudice against the French? Which a lot of English people do. Erm prejudices come from all sorts of things, some of them are historical, some of them are generated out of things like football... and arguments in the evening about good teams. Prejudices, we're all born with them, they're if you like perceptions which are only changed very often through experience. We've then got general motivations themselves, which we listed.... It's cheap price, good deal, that sort of thing. And finally... perhaps your own personality as well. Are you an extrovert person... outgoing, willing to take a chance, willing to take a risk or are you more introverted perhaps?...
[speaker002:] What is traits?
[Melvin:] Traits means characteristics.... Just to show you... how this has developed, you don't need to copy this down, it's something that you'll do in the second year of your course, but we mentioned in particular here how you interact with people... and what goes through your head. And this has actually been categorized into two tables... and... by, they claim that you can define different types of tourists according to, firstly, the way in which they interact with the local people. So at one extreme you've got the explorer who simply goes off into the unknown. The, the last thing the explorer wants on holiday is to meet people from their own country. Th they wanna get far away from it. They don't really like being called a tourist in many places. Many of them will use the term traveller because somehow it's less derogatory, it sounds more impressive. And these people here will learn languages, they will eat the local food, they will do anything the locals do, they will dress like them, the lot... in order to try and get as full a experience as possible. At the other end, you have what we call the charter tourist. The person who goes there and basically they want to take their home with them. In the case of an Englishman they'll want to take their beer, steak and chips, everything over to simply a hot climate and they live in their bubble. So you have these two extremes. In between you have elite, offbeat, unusual, mass and so on but they all lie somewhere between these extremes in terms of totally interacting and totally ignoring in many cases. The second type is the cognitive normative. In other words, defining tourists according to what's actually going through their heads. And here for example you might have the recreational... mind, healthy mind and body... the existential, the person who as much as anything may be looking for an experience based on meditation, er religion, this sort of thing. Er you've got, also down here, experimental... the person who experiments if you like with different cultures, trying to think of a different way, who's interested in religions. Now you may think that the number of people in this category here is very minimal, but there's increasing numbers of people around the world travelling now who are motivated by things like this. You only have to look at the number of visitors going to places such as Nepal er to see the increase there, to see how important this connection be.... Now for our purposes, the kind of thing we're gonna do, is look at a much simpler breakdown of tourists. And this is gonna introduce you to a new word called psychographic and psychographic, you think you've got, you can break it in two... you've got the psychological aspects and the graphic or mapping, the mapping of the psychology.... And this has been translated by a gentleman by the name of Stanley Clog
[speaker002:] [LAUGHTER]
[Melvin:] but we don't usually refer to it as Clog's theory or anything like that.... And Stanley Clog identifies four different types of tourist and these are the main ones which we're gonna use. Two of them you'll of heard before I'm sure. The first one you won't have done. Psychocentrics are the first one. If you're a psychocentric tourist, you're the type of person who's self inhibited. You're perhaps a little nervous of change... you haven't got really a desire for adventure or anything too challenging. You prefer well packaged routine holidays in popular tourism destinations and you're looking at the three Ss or four Ss we should say.... So you're looking at a package holiday resort in Spain... in the main.... Okay, psychocentrics. Again, like to be in the crowds. The alternative are what we call alocentrics, these are outgoing people with varied interests. They're keen to explore, to find new things and they're likely to want independence.... And in between these two... we also have something called midcentrics who do bits of both, but these are the two extremes. So all of you in this room are either a psychocentric or probably an alocentric.... The type of person who goes on this holiday is almost certainly gonna be a psychocentric. The type of person who goes on this holiday to destinations for example want somewhere unusual... perhaps to India, is more likely to be an alocentric person cos they're getting away from the crowds. Okay so psychocentrics and alocentrics.... So this is what Stanley Clog produced, now we're gonna add two more to this, two that you're all familiar with I'm sure, firstly, sunlust people. People who chase the sun... beach holidays and there's a lust for a tan.... So for example w I can't remember your name... who's the girl next to you?
[speaker002:] Michelle.
[Melvin:] Michelle is obviously a sunlust person in that respect and depending on whether she goes to a main package resort in Spain or perhaps a beach in India, she can either be a psychocentric sunlust person or an alocentric sunlust person.... And the alternative to this is wanderlust. The person who wants to explore, keep on the move... and typified by some form of touring holiday.... Okay so now whenever you look at a package holiday brochure, you should be able to identify the market just using two words... sunlust alocentric, wanderlust psychocentric and so on. So if you're looking at a touring holiday in Europe... it's wanderlust probably, and if it's an, a coach tour round Europe it's almost certain to be psychocentric. If you're looking for a tour around... Borneo and Indonesia, that's away from the crowds so we can say it's an alocentric wanderlust. So it's a very simple way, if you like, for us to define markets fairly accurately. Okay can everybody understand that?... Sunlust, wanderlust, psychocentrics and alocentrics. Right well you'll be doing a lot more of this in your marketing. Er I've got two handouts which I want you to pick up er now. One is something sp specifically written on the demand for the tourism product after nineteen ninety one. Try to highlight those factors or the determinants of demand which were gonna be important in buying the tourism products in nineteen ninety two. And the second is something on tourism decision making. This simply gives you, it's only a two page handout, it gives you some idea of the sort of motivations... from what people have written about them. What I also want you to do on this is if you can refer to Adrian Bull's book, the Economics of Travel and Tourism, and just go through the relevant chapter on demand.