Newfoundland and Labrador Product Development Strategy

- 109-o Staging a spring or fall event as part of the programo Designing and launching a concerted marketing program for the foregoingo Working with transportation providers to ensure appropriate access, e.g. extendedferry schedule in spring/fall, air consolidator option for European marketsThis effort should be sustained for a minimum of three years and the results trackedthroughout. The lessons learned would assist other destination areas with similarinitiatives.Combined Ranking of Tourism ProductsExhibit 6 presents a combined ranking of tourism products on both demand influencing potentialand generating shoulder/off season tourism.Each of the top priority and secondary priority influencers that also rate highly on shoulder andwinter season potential is considered further below.Improving YieldIt is evident that prices being charged by tourism operators in the province, particularly thoseoutside of St. John’s, are generally much lower than prices being charged in other destinations,including the other Atlantic provinces. This is, in part, a consequence of the soft demandsituation outside of the tourist season, but it also represents a lack of understanding among manytourism operators with respect to a number of things:o Prevailing prices elsewhereo Consumer perceptions and expectations about priceso Effective pricing techniques (Many operators see their price-cost-profit relationship asbeing static, whereas it varies widely for most tourism businesses with variations in thevolume of business. Cost per unit declines with increases in volume, with the result thatprofits can be increased with more volume, even at discounted prices. This is notgenerally well understood.)o The modern concept of revenue/yield management that is rapidly becoming the normamong the larger players in the industryImproving yield will not only help improve the overall viability of the tourism industry but it willalso help enable tourism businesses to pay more than minimum wage.RecommendationsAssisting the industry with correcting this situation is an important priority for the future. Werecommend that HNL, as the lead organization for professional development, undertake thefollowing initiatives:THE ECONOMIC PLANNING GROUP of Canada Newfoundland & Labrador Tourism Product DevelopmentD. W. Knight Associates Strategy and Accommodation Needs Study