Health, Wellness and Tourism: healthy tourists, healthy business ...

The phenomenon “change” is associated with many different notions from various research
traditions and steams of management research (Baumöl, 2008). Pettigrew (1990) consider
change as a dynamic process. Lewin (1951) see change as a linear input-to-output model and
suggested a three-step model of change. There is no single dominant theory in the change
management literature upon which academics agree (Baumöl, 2008). Regarding a tourist
destination over a longer period, a life cycle can be determined, which ranges from an
investigation and development phase of a destination to a consolidation and stagnation phase.
Achieving this point, a new phase of revival can follow in the case of successful repositioning
and new market-product combination.
The product life cycle model is one of the most famous theoretical models in the research of
marketing and strategic management (Goncalves & Aguas, 1997, 1; Mercer 1993, 269).
According to Holloway and Robinson (1995, 79) the model is also applicable to the tourism
product. In the literature the often presented product life cycle has four stages: introduction
followed by growth, maturity and decline stages (e.g. Goncalves & Aguas, 1997, 13; Kotler,
2000, 304) or introduction, growth, competitive turbulence, maturity and decline (Wilson
1995, 167). Sometimes the product development stage is added to the life cycle (e.g. Kotler,
Bowen & Makens, 1999, 304-306). The stages of the product life cycle are identified points in
the sales history. The life cycle curve finds strong theoretical support from Rogers’s
innovation adoption theory (Rogers, 1995).
At the introduction stage, a new product is introduced to the market. The price of the product
tends to be high and sales volume will be low. Usually, the profits are negative or low,
because of the low sales and heavy promotion expenses (Kotler, 2003, 330.). In the growth
stage, the sales curve is rapidly rising (Norgan, 1994). There are a growing number of
customers, an early majority following early adopters. New competitors enter the market,
attracted by the opportunities for large volumes and profits. They introduce new product
features. The prices remain or fall slightly and the promotional expenditures are maintained at
the same level or are slightly raised (Kotler, 2003, 332.).
In the competitive turbulence stage, the cumulative sales penetration approaches market
capacity and the rate of the sales is decelerating, although primary demand is still growing.
The target group is now the majority of the market and the competitive climate becomes more
aggressive (Wilson, 1995; Lambing, 1993.). At some point, sales growth will slow down, and
the product will enter a stage of maturity. This stage normally has the longest duration. The
slowdown rate of the sales growth impacts on declining numbers of competitors (Kotler,
2003, 333.). At the decline stage, the saturation level of the market has occurred and absolute
sales of the product decline. Because of the overcapacity in the industry, there is a strong
competitive warfare, which is manifested in several promotion battles using price competition
and advertising. As sales and profits decline further, companies withdraw from the market
(Kotler, 2003, 337; McNamee, 1988.).
The most widely known application of Product Life Cycle in the tourism field is the tourist
area life cycle (Butler, 1980). In the literature, very often the concept tourist product life cycle
is used, although writers refer to Butler’s model (see e.g. Goncalves & Aguas, 1997). Butler’s
(1980) tourist area life cycle model includes six stages: exploration, involvement,
development, consolidation, stagnation and decline or rejuvenation. The model applies the
product life cycle concept compensating sales by the amount of visitors. Visitors will come to
an area in small numbers initially, restricted by lack of access, facilities, and local knowledge.
As facilities are provided and awareness grows, the amount of visitors increases. Familiarity