1、LT1001NThe Leisure and Tourism EnvironmentLecture 5Producers and Consumers1第一頁，共四十四頁。Lecture ContentThe commercial sector in leisure and tourismThe commodification of leisure the leisure productCommercial partnerships: leisure, retail, hospitality and entertainmentHome-based and virtual leisureLeisu

2、re as consumption2第二頁，共四十四頁。CharacteristicsRequires mass participationCaters for popular mass activities rather than specialismsMarket drivenHighly competitiveRequires profit and growth for survivalCreates additional demand through marketing strategies3第三頁，共四十四頁。CharacteristicsGrowth stimulated by m

3、ass media (press and television)Emphasis on customer sovereigntyExploits willingness to pay - determines pricing strategyFocus on passive consumption activitiesHigh volume, high cost, high throughput4第四頁，共四十四頁。CharacteristicsSome providers monothematicBut most now tend to be involved in more than on

4、e leisure activityCommercial sector leisure corporationsFirst LeisureRank LeisureLeisure parks and plazasOften located on margins of cities(Evans the new leisure periphery)5第五頁，共四十四頁。Characteristics - consumptionCommercial sector increasingly markets leisure and tourism as consumable productsPostmod

5、ern thinkingReflects contemporary lifestylesLeisure: Rojek, C., Decentring LeisureTourism: Urry, J., Consuming Places6第六頁，共四十四頁。Strengths and Weaknesses of the Commercial SectorStrengthsAble to identify, stimulate and create demandConsumer orientationVariety of provisionMarketing skillsImpacts on ot

6、her sectorsWeaknessesGenerally mass provisionMarket determines priceAffordability?Minority groups neglected?7第七頁，共四十四頁。DevelopmentMiddle AgesEarly roots of commercialism:Drinking (taverns)Gambling (wagers on rough sports and tavern games)ProstitutionCircuses, travelling entertainers, fairgrounds8第八頁

7、，共四十四頁。DevelopmentLate Industrial Revolution - 1840-1900Growth of mass marketsWorkers with disposable incomeEarly capital investment in commercial leisure:Music Hall (by 1866, 33 in London)Football stadiaRailway network - freight, business, leisure9第九頁，共四十四頁。DevelopmentEarly 20th Century - 1900-1939

8、Growth in investmentNew technology - cinema, cylinder phonographs, gramophone records 1924-32: 100 cinemas builtSpectator and audience developmentMassive football and cinema audiencesPassive consumption of new commercial leisure formsHoliday infrastructure developedButlins camps - Skegness 1936Thoma

9、s Cook - packages to seaside resorts10第十頁，共四十四頁。DevelopmentPost-war period - 1945-1970sInitial post-war austerity - rationing (food, clothes, petrol)Some commercial leisure forms nonetheless continued - notably football, cinemaLate 50s - growth of disposable incomeGrowth of home-centred leisure mark

10、etRadios, record-players, television (impacts)DIY materials and equipmentGrowth in car ownership - increased access to leisure opportunities, short-stay domestic tourism11第十一頁，共四十四頁。Development1980s to the presentIncreased growth of the commercial sectorProvision takes new forms - e.g. leisure, reta

11、il and hospitality complexesGrowth in leisure shopping - malls, integrated facilities and attractionsMetrocentre; Meadowhall; Bluewater; LakesideCommercial leisure plazasTower Park Poole; Milton Keynes Leisure Plaza; Leisure World, Jarman Fields, Hemel HempsteadGrowth in technologically driven home-

12、based leisureIncreased commercial sector leisure spending12第十二頁，共四十四頁。Nature of Commercial Sector InvolvementHow is the commercial sector involved in leisure?What types of provision does it currently make?What are the implications:for other sectors?for leisure participants?What current trends are ev

13、ident?13第十三頁，共四十四頁。Nature of Commercial Sector Involvement in LeisureDirect provision of commercial facilities and venuesSale of leisure hardware and consumables (home-based leisure, consumer electronics, DIY materials and equipment, sports goods)Partnerships (various kinds)Sponsorship14第十四頁，共四十四頁。E

14、xtent of Commercial Leisure Provision(after Martin and Mason, 1989)MARKET SEGMENTCOMMERCIAL ROLEReadingMost books, newspapers and magazinesViewing & listeningVirtually all equipment and softwareSome broadcast services, most cable & satellite servicesDIY and GardeningVirtually all products and toolsH

15、obbies & pastimesVirtually all products and servicesFormal entertainmentMany venues and events e.g., cinemas, theme and amusement parks, some theatres and sports eventsSport & active recreationMost sports equipment and clothing, specialist sports facilities and clubs, venue managementAlcoholic drink

16、Virtually all products and services, and most licensed premises. Leisure cateringMost hotels, restaurants, fast-food outlets, holiday resortsHolidays overseasMost holiday packages and travel services15第十五頁，共四十四頁。Economic Value of Commercial Leisure(Irvine and Taylor, 1998)UK Commercial Leisure Marke

17、t - total aggregate value (turnover) estimated as: 83,937 Million pounds! ( 84 Billion)Total worth is equivalent to 17.5% of gross domestic product (GDP)16第十六頁，共四十四頁。Nature of Commercial Sector InvolvementFacility Provision and Activity PromotionMass appeal commercial provisionCommercial leisure pla

18、zas ; consumption food, drink, eating out, takeaway; often linked to consumption of the leisure experience itself: multiplex cinemas; casinos, bingo-halls; dance halls, discotheques; nightclubs; ice rinks; ten-pin bowling alleys; snooker clubs; amusement arcades; laser gamesMass appeal sports, arts

19、and entertainment : Andrew Lloyd-Webber, Raymond Gubbay, West End theatre, major football stadia, pop concerts, motor shows, Wembley, Earls Court, London ArenaFocus - “buying a good time” 17第十七頁，共四十四頁。Nature of Commercial Sector InvolvementMass media and home-based leisureMass media: Commercial TV,

20、cinema, radio, press, publicity - sports coverage - media integration, popular cultural product, homogenisationHardware and software:Home-based leisure : TV, video, satellite, cable, home cinema, music, CDs, DVDs, PCs, internet, computer games, growth of e-commerce18第十八頁，共四十四頁。Nature of Commercial S

21、ector InvolvementThe corporate market / The tourist marketIndustrial leisure provisionCorporate fitness marketIn-house gyms, health clubs, hotelsTourismCommercial sector activityTransportation - air, land, seaAccommodationHospitality food and drinkEntertainmentVisitor attractions19第十九頁，共四十四頁。Nature

22、of Commercial Sector InvolvementPartnershipsWith OTHER PROVIDER SECTORSPublic Sector: Operation of a commercial lease on local authority premisesPrivate Finance Initiative agreement (PFI) Provision of a siteVoluntary Sector:Voluntary stewards, first-aiders at commercial eventsWith OTHER LEISURE-RELA

23、TED SECTORSHospitalityRetail20第二十頁，共四十四頁。Best source on Commercial PartnershipsSimmonds, B. (1994)Developing Partnerships in Sport and Leisure: a practical guide.Harlow: Longman.21第二十一頁，共四十四頁。Nature of Commercial Sector InvolvementSponsorshipSponsorship not philanthropicSports and arts (teams; TV pr

24、ogrammes; prominent events)Two-way processBenefits and drawbacks22第二十二頁，共四十四頁。Benefits to SponsorsPublicity and promotion of the sponsoring organisationCorporate image enhancement (oil, tobacco, alcohol, banks)Improved public relationsTrade relationsTax benefitsEmployee / client entertainment(specia

25、l seating at sports event, opera)23第二十三頁，共四十四頁。Sponsorship drawbacksFunding to lite - who can afford to purchase (hidden subsidy)Activities with media exposure onlyMale orientated - (cf. womens sport) many heroes but few heroinesCan be short-lived, vulnerable, not sustainedInfluences pattern of leis

26、ure activity (e.g., safe mainstream arts, rather than fringe - sponsors avoid controversy)24第二十四頁，共四十四頁。Trends in Commercial Leisure Provision(80s and 90s to present)Six main trends identifiable :MARKET CONCENTRATIONDIVERSIFICATIONVERTICAL INTEGRATION . . . 80s, 90sGLOBALISATION . . . presentCOMMODI

27、FICATIONHOMOGENISATION25第二十五頁，共四十四頁。Market ConcentrationProgressive sequence:Competition gives rise to small-scale entrepreneursGrowth and expansion of their businessesStock-market floatationMergers, take-overs, acquisitionsDomination by larger firms and by transnational and international corporatio

28、ns shape market - concentrated in a few handsOligopolyLoss of consumer power and choice26第二十六頁，共四十四頁。Examples of Market ConcentrationBrewing industryBetween 1920 and 1939 the number of British breweries fell from 2,889 to 8851989 Monopolies and Mergers Commission first expressed concernAt present, a

29、 small number of brewing giants produce 85% of the countrys beerAlmost 9 out of 10 pints soldBland product (e.g., nitrokeg), poor quality, overpriced, consumer choice reduced27第二十七頁，共四十四頁。International ownership and distributionMuch British beer is no longer British-ownede.g., Tetley: owned by Carsl

30、berg Brewery, CopenhagenWhitbread, and Bass: both now part of Interbrew of Belgium, which has 32% share of UK marketBritish owned: Scottish Courage 30% of UK marketGuinness (Anglo-Irish), brewing operations world-wideGlobalisation some American products e.g. Budweiser beer28第二十八頁，共四十四頁。Examples of M

31、arket ConcentrationAirline industryIn mid-1980s, top 25 airlines controlled 80% of the marketTour operationsTop 10 tour operators control 50% of the marketDominated by a small number of big playersThomsons Holidays; My Travel; First ChoiceCompetition intense; profit margins keen; insolvency a very s

32、ignificant risk (My Travel)29第二十九頁，共四十四頁。DiversificationAdditionally, many large leisure and tourismcompanies choose to DIVERSIFY -Spread their investment (portfolio) across a wide range of sectorsOften transnational and international companiesAllied Leisure, Granada, Ladbroke, RankInterests in hote

33、ls and catering, brewing, gambling, entertainment, attraction management, and media interests30第三十頁，共四十四頁。Advantages of Diversificationin Leisure and Tourism investmentSpreads risks in a volatile marketMaximises profit, allows rapid growth, increased market shareLimited barriers to entryPerceptions

34、of growthCounter-balance to seasonalityPerceptions of enjoyable sector - attractive to investors31第三十一頁，共四十四頁。Integration horizontal and vertical(The merging of different business organisations)Horizontal integration:Occurs between firms operating at the same level of production in the same industry

35、e.g., My Travel (Airtours) / Aspro Travel / SAS Leisure / Sunquest Vacations (all package tour operators)32第三十二頁，共四十四頁。Integration horizontal and vertical(The merging of different business organisations)Vertical integration:Occurs between organisations at different levels of production in the same i

36、ndustry(Airline - packaging - retailing)Britannia Airways / Thomson Holidays / Lunn Poly (now German owned TUI)My Travel International / My Travel / Going PlacesAir 2000 / First Choice / Thomas CookCaledonian Airways / Best Inspirations / AT Mays33第三十三頁，共四十四頁。Advantages of Vertical IntegrationMore p

37、ower / control over the industryEconomies of scale (purchasing, marketing)Organised packaging to suit themCross-subsidisation - so can undercut competitorsProfit maximisationAllows diversification into related fieldsCustomer: good price deals, but limited choices34第三十四頁，共四十四頁。Internationalisation an

38、d GlobalisationDIVERSIFICATION leads toINTERNATIONALISATIONof PRODUCTS: books, films, music, restaurantsof COMPANIES: visitor attractions Disneyand in turn toGLOBALISATIONthe development of global PRODUCTS and MARKETS - e.g., music, media, films, technologyControl of output by MULTINATIONAL companie

39、sPromotional role of the MEDIA35第三十五頁，共四十四頁。Commodification: The Leisure and Tourism ProductIncreasingly, commercial leisure and tourism services seen as PRODUCTS to be sold - COMMODITIESEmphasis placed on BUYING and SELLING in the leisure and tourism MARKETCultural activities become big businessThe

40、 product is packaged for saleLeisure packages e.g. fitness club dealsPackage holidays Linkage to postmodern lifestyles (cf. Rojek, Urry)36第三十六頁，共四十四頁。Standardisation and HomogenisationThe focus on a cultural product leads at best to STANDARDISATION - a fixed packageReflects marketing needs, and the

41、volume/variety relationshipHigh volume (mass sales) = limited choiceAt worst, product becomes bland and uniform - HOMOGENISATIONConsumer choice eroded, price controlled by market37第三十七頁，共四十四頁。Current trends and issues in Commercial LeisureDevelopment of leisure / retail / hospitality partnershipsThe

42、 multiplex anchor (cinema complex as core) Location concept of critical mass of consumersLocation - fringes of cities (Evans leisure / pleasure periphery)Commercial leisure parks per se -no longer monothematic - diversification38第三十八頁，共四十四頁。Current trends and issues in Commercial LeisureLeisure / Ot

43、her vs. Leisure / LeisureInterest now focusing on linked commercial leisure developments in a leisure park (rather than, say, leisure/retail)More compatible - opening hours; customer motivations; leisure ethosAlso commercial leisure / hospitality outletsFood courtsGrowth in family leisure, some decline in youth market39第三十九頁，共四十四頁。The Multiplex PhenomenonPeripheral location (The leisure periphery)Key anchorSecondary spend (food, souvenirs, vid