Tourism industry promotes the travel for the business or pleasure purpose, also the practice and theory of touring, attracting businesses, entertainment projects for tourists, accommodating and operating tours of businesses. The World Tourism Organization also defines the tourism as holiday activities or staying somewhere other than usual environment for leisure or business purposes. Tourism can be international and domestic, and it effects positively to the balance of payment of the country. Tourism industry is very significant for the countries and different regions (Market width, 2020).
Ansoff matrix is necessary for every industry for the growth objective. Ansoff matrix is the marketing tool suggests the different growth strategy in combination of products and market. It motivates the company to grow in terms of product or market expansion. Here is the detailed Ansoff matrix analysis of Tourism industry.
Market Penetration
Market penetration is the strategy suggested by Ansoff matrix. This strategy encourages the company to increase the sale of sale of current products in the current markets. The company adopt this strategy to increase the market share of the company. Tourist industry is wide and very profitable in every region and country. Countries improve their tourist industry continuously by attracting different businesses for tourists’ entertainment purposes. Countries also promote their tourism industry through advertisements and different marketing tools. Businesses promote themselves like travel agents, shopping centres, hotels, accommodation booking apps etc promote tourism by offering different discount and packages. For example, Airline like Emirates started offering two days’ vacation and stay in Dubai for passengers use Emirates for Europe and America travelling (Nedelea, 2013).
Product Development
Product Development is the strategy suggested by the Ansoff matrix, which promotes the company to expand the services and product for the current market. This is also called product or service expansion. Company opt for this to increase the revenue by selling more of their different products and target the customer for new product. In tourist industry, new services could be different entertainment techniques like adventure parks and theme parks in different countries, USA promoted Disneyland for tourists’ entertainment. Dubai introduced different malls for shopping purpose. Every year Dubai announces Shopping festival to attract tourists from across the globe for shopping by offering discounts and offers. Countries also starting to introduce eco-tourism to gain benefits and profits which will eventually help the country economically (Bournemouth, 2020).
Market Development
Market development is the strategy promotes the company to increase in new markets with the current products. This is also called as market expansion, as company explore new markets. This could be done either geographically or demographically. The countries like Turkey, Malaysia, Pakistan etc. try to explore new regions in their own country where they can attract tourists. For example, in recent times, Pakistan worked in its northern areas and promote the place for tourism. Malaysia recently adopted many strategies and attracted numerous tourists there. Moreover, different businesses like Airline agents, shopping centres, big brands etc also started to enter in the country to gain benefits from tourists by selling more of their products and items (Nedelea, 2013).
Diversification
Diversification is the strategy suggested by the Ansoff matrix. This strategy suggests the companies to enter in new market with new product. The company can opt for either diversify in completely new industry or integrated diversification. However, tourism is the profitable industry for different countries. The industry cannot diversify much. Hence, government of the regions has to re-examine the strategies and promote their industry accordingly. More there will be facilities, scenic beauty, entertainment, and comfort for the people, more will be the people willing to visit the place (Rahman, 2017).
References
Bournemouth, 2020. Analysis of tourist industry. [Online], Available at: http://eprints.bournemouth.ac.uk/10975/1/Mauritius_Case_Study_Analysis_-_MS_SW_DV.ppt., [Accessed on: 12th February, 2020].
Market width, 2020. Tourism industry: Definitions, sector and value chains. [Online], Available at: http://www.market-width.com/Tourism-Industry.htm, [Accessed on: 12th February, 2020].
Nedelea, A, 2013. Business strategies in tourism. [Online], Available at: https://www.researchgate.net/publication/260845056_BUSINESS_STRATEGIES_IN_TOURISM, [Accessed on: 12th February, 2020].
Rahman, M. 2017. Ansoff growth matrix. [Online], Available at: https://www.howandwhat.net/ansoff-growth-matrix/, [Accessed on: 12th February, 2020].