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Tuesday 1 March 2011

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Discounting a dead loss

"We have gone away from selling why you should be here," said TPDD boss Doug Ryan.

 

by Mat Churchill

Price discounting and a transient workforce have been detrimental to the region according to Tourism Port Douglas and Daintree boss, Doug Ryan.

Mr Ryan said that the region's tourism industry has erred by focussing on pricing rather than the the experience people can have while here.

"What's happened over a number of years through the wholesalers and through marketing campaigns, there has been demand. . . to provide a promotion to get people here.

"There were promotions where you discounted your rate or you gave five days for the price of four. Over the last three years this has continued and this is the way that they've been driving the visitation to the region.

"I don't necessarily agree with that. I think you have to have those promotions to get immediate return on a particular campaign that you do, but my strong belief is that we have gone away from selling why you should be here instead of how cheap you can get here for," he said.

"This is something I've been pushing very hard with Tourism Australia, Tourism Queensland and TTNQ, to the stage of being an annoyance to them. But we really need to show people why it's so great to be here, not how cheap you can come here."

Mr Ryan said that marketing campaigns which focus on positive experiences will see wholesalers promote the area more heavily.

"If we spend our time marketing people enjoying themselves. . . if we can spend  $600,000 around Australia in the next three months just showing how good it is here, the wholesalers are going to follow suit. The wholesalers are going to jump on and put their own specials out there, with the product. That's going to work.

"But if we continually cheapen the destination, and that's what's happened . . .but we've done that because we haven't been getting the visitors. I think it's very very detrimental in the long run to the destination.

Another issue regularly commented on by The Newsport readers is the town's service levels. Many readers have demanded a stronger focus on improving the visitor experience so they will become repeat guests and spread the word to friends and family.

Leona Brown commented on The Newsport article 'What now for local tourism?'; "There is an assumption that the traders in Port Douglas at the moment do not consider that the number of tourists make their businesses viable. If these tourists do not have a good time then how do we expect them to give accolades to other future tourists."

Mr Ryan said employers need to spend time with their workers, especially those new to town, to ensure accurate information is passed on to their customers.

"I think every destination, no matter where you are, a major part of your marketing is your service levels, your infrastructure, that's part of the marketing of the region. To me it's a very very important part of this destination.

"It's the old 101 of marketing. If you're not giving the service, if you haven't got a clean room . . . if people aren't pleasant and nice to you then you won't come back.

"There's always room for improvement. One of the problems here is we've got such a transient workforce. So when people come into town I think it's very very important that the employers spend some time with their staff.

"They've got to be able to talk properly about the region. . .I think it's extremely important that we train those people and we give them the correct briefing on the town," he said. 

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Josh McConnell , 10-05-11 16:05:
Have to agree with Lawrence here.. Is Port Douglas turning into the 'Discount destination'?
Lawrence Mason Mason, 10-05-11 15:58:
I just booked a holiday in Dunsborough, Margaret River. I was shocked at the cost, and only found a 'deal' with difficulty. I rang a few and it seems even in winter they are pretty heavily booked (Winter is their low season). Great example of a destination not succumbing to discounting. The other thing is that these el cheapos who come in might fill rooms, but they don't spend much, don't do tours, and want a burger for $5. I am with Doug, time to stop cheapening the destination and start selling on its unique points!
It is all good to post wiki links about competition, but you might find that we compete ourselves right out of the market if we are not careful...
Jenny Atkins, 09-03-11 21:03:
How about some consistency of trading hours? Those visiting here at this time of year deserve to have our shops open for at least normal accepted trading hours, not have retailers closing at 2 or 3 because they have had enough. I know the quiet days do your head in, but those visiting are only going to go back and tell their friends "don't go to Port Douglas, half the shops are closed by mid-afternoon". They want to walk around and shop when they return from their tours, no matter what the time or weather.
Anna Whitfield , 04-03-11 10:20:
I agree - need to look at why people do not want to come. The last few weeks I have been hearing 'it is worst then the pilot strike' problem then was that people could not get here, now they do not want to be here. Agree also with providing great service, and that means training. On the other hand, locals ask for local discounts all the time. Generally they ask for discounts at locally owned businesses, not the chain stores - asking your fellow struggler to chip in - not the national corporations? A strange experience for visitors when asked; Are you a local?
Angela Wilcox, 01-03-11 22:05:
Agree with Doug. You can't buy Word of Mouth advertising, and nothing works faster.
Frank Frikker, 01-03-11 21:40:
I have been saying this since years. We never discounted and are still alive. I offered customer service workshops to the chamber years ago. No one listened.
Mick Gwilliams, 01-03-11 17:33:
I support what Doug Ryan is saying because I've seen it first hand over the last 5 years that I've managed accommodation here in Port. Discounting might get the odd bum in a bed but the reality is the product has a market value and we should protect it's integrity. If we sell our product below cost it's the first step towards having no product to sell. The region sells itself, we need to concentrate as Doug rightly says on creating the level of service expected because nothing sells like word of mouth and that's the bottom line. The punter is always out for the lowest price but they never ever look for the lowest standard. Our beautiful part of the world shouldn't be cheap anyway, it's too damn good to be cheap!
Dan , 01-03-11 13:39:
A picture tells a thousand words... the beans are magic! and there on special!!, follow me...

How bout this.., oh your here, I wasn't expecting you!

Well done for blaming the townsfolk Mr Ryan and basically saying the businesses are the trouble with this town because they dont spend enough time with their staff "briefing them" do we "debrief them" aswell when they leave? send them to your office for a debrief..
I like this; "There were promotions where you discounted your rate or you gave five days for the price of four. Over the last three years this has continued and this is the way that they've been driving the visitation to the region." then says "I don't necessarily agree with that.I think you have to have those promotions to get immediate return on a particular campaign that you do, but my strong belief is that we have gone away from selling why you should be here instead of how cheap you can get here for" No Mr Ryan the idea is that we get people here.... its what YOU need to do, the tourists will realise why they came and the business term you are making references to what is called Competition. Try this link: http://en.wikipedia.org/wiki/Competition. This may also come in handy: http://en.wikipedia.org/wiki/Tourism.

Promising words "Thats going to work" lets hope so Mr Ryan.

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