I want my paper to relate to the travel and tourism industry, with a focus on the difficulties and opportunities that will arise in the upcoming years of the recession. I think the tourism industry is particularly vulnerable to fluctuations in the economy, because leisure activities are some of the first things people cut from their budget when they need to save money. So companies in the tourism industry must be looking for ways to save as well and market their destinations for the changing economic times.

However, I think this also presents a challenge because luxury travel destinations, which assumedly will be hit hard by budget cutbacks, will want to maintain their luxury appeal in the long term. So higher-end travel destinations must combat the paradox of being temporarily cheap, but still maintain the quality and long term luxury appeal that initially, and ultimately, defined their business model.

There are a variety of ways that travel destinations can market themselves to survive these economic hard times. For instance, corporate groups that have budgets for events, retreats, etc. can be a dependable, safe target segment, because the money is already set aside. The travel destination has to find ways to make themselves attractive to corporate groups, for instance with easy accessibility, event planning resources, in house options (catering, entertainment, meeting arrangements, etc.), and tailored packages for specific companies. The marketing communications have to be aggressive and proactive, seeking out corporate event planners and maintaining contact with the human resources representatives of past and future clients.

Another segment that travel destinations could target is upper class retirees, who have already budgeted for their life and plan on maintaining a comfortable but not extravagant lifestyle. These are people who plan to take annual/semi-annual trips as part of their retirement, and they have a specific set of travel needs. Galit Nimrod’s article “Retirement and Tourism: Themes in Retirees’ Narratives”, explores the different needs that this segment has from other tourists. For instance, comfort and ease are important to retirees. Relaxation and pampering are also valuable. This segment is not as concerned with high energy activities and constant entertainment, but they want to have resources at hand, and have everything hassle free.

Obviously the recession will have a major impact on the tourism industry, and in my paper I would like to explore ways that particular travel destinations can avoid major losses, and perhaps even capitalize on the side effects of the recession. I just outlined a few segments that I thought had potential for travel destinations, and I think that there are other segments also that provide an opportunity. The problem will be finding ways to market the destination, while still maintaining its original destination integrity, so that when the country recovers from the recession, it has not completely altered its business model.

I think this relates to the class because travel destinations must understand the psych of their target markets and seek out target markets that will be loyal and active customers. Travel is innately about an experience, and consumer insights are fundamental to understanding how to create the ideal experience for each target customer and also what value each customer places on that experience.