First Steps

You’ve come up with the perfect visitor experience. When it comes to developing your business, deciding on your target market and developing marketing resources, you need to take a number of issues into consideration.

• Are you running your venture as a business or for lifestyle reasons?

• Are you looking for domestic or international visitors?

• What regions of New Zealand or countries do they come from?

• What is their average daily expenditure when holidaying?

• How do they pre-purchase their travel and activities?

• What is their average age?

• How many days do they spend in your region?

• Are there other similar products in your region? If so, what makes yours different?

• What products do they tend to consume?

• What unique stories in your region can be incorporated into your product?

• Does your product meet national quality standards?

• Is your product available all year round?

• Have you considered how you will package and present your product?

If you are looking to start a business providing services to tourists, you are more likely to be successful if the type of visitors you are hoping to attract already come to your area.

By working with an existing tourism market, you can focus on making your business successful, not on attracting visitors to your region or country - leave that to your Regional Tourism Organisation and Tourism New Zealand.

Finding out who your potential visitors are will require some research.

The Ministry of Tourism Research website has a huge range of national and regional research available so that you can work out what type of travellers, from what countries, of what age and with what range of interests, you are likely to be able to attract.

To help increase your understanding of what research is available and what it means email info@tourism.govt.nz for your free booklets ‘Understanding the Dynamics of Tourism in New Zealand’ and ‘NZ Tourism Forecasts Summary Booklet’.

What does your customer want?

Your business should focus on visitors who are looking for the experiences you offer.

When developing new experiences or enhancing what you already deliver, consider what makes visitors choose a particular activity and makes them satisfied.

The good news is that the attributes or characteristics that make a visitor choose a product are the same as the ones that satisfy them - so discovering these will help you both attract visitors and make sure they go away singing your praises.

The attributes are more or less the same, no matter what the product is, or which country the visitor comes from.

Keeping informed

These are the key reasons for our international visitors to choose an activity, attraction or service.

Setting/Place

New Zealand’s landscape is the primary motivator for visitors to come here - and while they are here they want the ability to interact in our landscape. Location is crucial in any activity and can have a big influence on decision making.

	Visitors are looking for to interact with our unique natural attractions

Real Kiwi Operator/People

Visitors value the chance to get an insight into real New Zealand life. Whether or not you are Kiwi born and bred, if you are warm, friendly and enthusiastic and can share your knowledge and insights into the location or environment, you will greatly add to your visitors’ experience and satisfaction.

Authenticity

While visitors don’t necessarily seek out authentic experiences specifically - or even necessarily know what products are authentic, a perception of authenticity is very important to a visitor’s satisfaction with a product.

International visitors are looking for quality tourism experiences which are ‘real’ and don’t seem staged or plastic.

Feel part of the experience/Interactivity

International visitors are looking for interactivity - being involved and doing something rather than watching.

It’s important to show this in your marketing materials. For example, in photographs show people participating in things rather than standing around watching.

Feeling of uniqueness/Telling Stories

New Zealand is a unique destination and visitors will be more satisfied when they feel they couldn’t get the experience they are getting anywhere else in the world.

This doesn’t mean it needs to be a New Zealand icon product, like bungy, but rather that by infusing elements of New Zealand - making use of your landscape, telling unique local stories of the history or Maori legends relating to your area, displaying local art work with interpretation or providing New Zealand food and wine at your accommodation - you can add value to the visitor experience.

Uniquely New Zealand experiences are a big attraction for visitors

Opportunity to Learn/ Interpretation

You would have thought visitors would come to New Zealand to get away from it all! Actually they like to learn something while they are here - and an element of learning in your activity can make it more attractive.

At a most basic level make sure your visitors understand what they are doing and the significance of where they are. Provide interpretation where appropriate. By interpretation, we mean the way the message is conveyed - this is becoming increasingly important to visitors.

The traditional tourism experience typically involves a visitor being shown or told something in a simple and straightforward manner. This is no longer enough to satisfy the wants of international visitors, who is well travelled and seeks the next level in tourism experiences.

This type of visitor requires engagement and involvement at a physical, emotional or educational level, and will appreciate messages that are delivered in a unique or novel way.

Number of other visitors

International visitors like to have other visitors around, but not too many. Visitors prefer to feel that they are not part of the herd, and that their experience is personalised and special. That said, most international visitors find New Zealand relatively uncrowded compared with their home countries. Nonetheless the proper management of visitors experiencing your product is important for the ongoing sustainability of New Zealand’s environmental and cultural resources, as well as for safety reasons.

The appropriate group size is dependent on the activity and the nationalities taking part. For example, a visitor from Japan might feel comfortable in a large group because they are used to crowds, whereas a visitor from the UK might prefer and expect a smaller group.

Safety

For thrill-seeking activities this is especially important. Visitors need to feel that they and their possessions are safe. Safety is interpreted by visitors as professional staff, modern equipment and up-to-date facilities. A guide’s safety briefing is also important.

If you are operating an adventure activity make sure you have appropriate industry accreditation and safety plans and mention these in your marketing material.

Options with the right level of thrill/exertion

Varying confidence and capability levels mean options to choose level or length of activity can be important. In particular, in activities such as jet boating the guide plays a big role in gauging the right level of thrill or exertion for each group. Brochures should advise options available.

Quality

Your product needs to meet the demands of international visitors. This means appropriate safety and service standards should be met, infrastructure should be good and a consistent level of quality should be delivered. The Qualmark© programme can assist you to develop your business to this level. Visit Qualmark for more information.

For practical information on how to start a tourism business, and the sort of safety and regulatory information you will need please read the companion volume to this publication, ‘Tourism in Action’, which is available for members of the Tourism Industry Association.

Increasing Satisfaction

Providing a world-class tourism experience is a critical part of New Zealand’s success as a visitor destination. All of our visitors expect quality.

Visitors also expect value for money. Not all international visitors demand five-star luxury, but they do require a level of service and experience that meets their expectations and the price being charged. This means that quality is just as important for B&B and backpacker accommodation as it is for up-market lodges and international hotels.

Tourism New Zealand promotes New Zealand as a quality international destination under its 100% Pure New Zealand marketing campaign. To keep this quality promise it is essential that the New Zealand tourism industry delivers quality experiences. For this reason Tourism New Zealand is extremely supportive of all initiatives designed to improve quality in our tourism sector, in particular the Qualmark®.

Qualmark® is the New Zealand tourism industry’s official independent quality assurance agency. It enables international visitors and travel agents to accurately assess the quality of your business before they even reach New Zealand - something that is otherwise difficult to do. Accommodation and tourism businesses that carry the Qualmark® have been independently assessed as professional and trustworthy, which allows consumers and the travel trade to book and buy those products with confidence.

There are many benefits for operators who are actively committed to providing a quality product or service. These include:

• being able to charge a higher price in return for superior service

• happy customers who come back again and who refer your operation to friends and family

• fewer complaints, which reduces the cost of dealing with unhappy customers and minimises negative word of mouth

• happy and satisfied staff

• greater marketing and sales opportunities which will help you attract more profitable clients.

Quality Checklist

Check your business against this quality checklist. These are the minimum requirements your business should meet in order to ensure you are delivering a quality product. Some of these are small things, but they can make a big difference to the way your operation is perceived, by both consumers and the international travel trade.

Whether or not you decide to become Qualmark© licensed, this list will show you what you should be aiming for in terms of quality.

	Quality assurance helps both your business - and the visitor.

Customer Service

• A clear price is quoted, including information on GST and other charges.

• The content of your product and any variables (ie. weather) are described accurately in all marketing material.

• The deposit and refund policy is clearly explained.

• A GST receipt is available on request.

• Staff are on duty and available to visitors.

• There is no discrimination against customers, except where health and safety would be compromised.

Facilities and Equipment

• Visitors will have an adequate first impression of the facility, equipment and grounds.

• Facilities, fittings and equipment are maintained and are fit for the purpose intended; they are safe and free from hazards; and instructions are available on correct usage.

You and Your Staff

• All staff have very good knowledge and experience of the product being offered.

• All positions have clearly identified roles and responsibilities.

• All employees are covered by a documented agreement.

Environmental and Cultural

• Statutory licences, permits and/or consents have been obtained and are current.

• Land and/or water use complies with all regional, district and conservation management plans in place in the area.

• Collection of rubbish, recycling, and noise control measures are in place.

• Any environmental claims in promotional material can be substantiated.

• Cultural, historical and aesthetic significance has been identified and strategies have been developed for its protection.

• Accurate interpretation material is available.

• Consultation with tangata whenua has taken place where required.

• The operator is aware of and addressing statutory or local government requirements designed to protect historic and cultural sites.

• Customer safety issues are effectively communicated - particularly to visitors with English as a second language.

General Safety and Welfare

• A safety system is in place.

• OSH policy is in place.

• Where appropriate, sufficient staff hold a current nationally recognised first aid certificate.

• First aid kits are available.

• Evidence that accidents and incidents are recorded is available.

• There is a crisis management plan

Visitors like having various levels of activity to choose from

Overall Business Aspects

• The operator is aware of and addressing statutory obligations, including adequate documentation.

• There is adequate public liability insurance including punitive and exemplary damages.

In 2005 an initiative between the Department of Conservation (DoC) and the tourism industry’s official quality assurance agency, Qualmark New Zealand, standardised the requirements for independently audited safety plans.

This means that if you are a DoC Concessionaire your Qualmark® assessment process is accepted by DoC in respect of their safety audit requirements.

This streamlined process saves you time and money. For more information, visit the Department of Conservation.

Making the Most of your Qualmark®

If you decide to go down the path of getting a Qualmark® licence, make sure you make the most of it! The following checklist includes some of the ways you can ensure maximum leverage from your licence.

• Put your mark on your: advertising, website, display stands, staff name badges, stationery, business cards, fax forms, reservations confirmations, envelopes, email signature, branded company vehicle(s) and plant.

• Use promotional collateral developed by Qualmark®, such as flags, door decals, illuminated light box faceplates, banner signs.

• Place your Qualmark® licence on the wall in your reception area or on your check-in desk.

• Place a Qualmark® sticker on the newspapers delivered to guests’ rooms (for accommodation), and in room compendiums explaining Qualmark® and what it means.

• Incorporate Qualmarkv information in your induction manual/induction process for new staff.

• Update your existing staff about your new Qualmark® status, via staff meeting, email, text, memo with pay slip, so they can explain it to customers. Host a party to celebrate!

• Use the Qualmark® media template document to develop a press release about your new Qualmark®, available from Qualmark® website.

• Let your business partners know - perhaps hold a function or open day to celebrate.

• Let your local i-SITE Visitor Centre/RTO know. Some RTOs give priority ranking to Qualmark® businesses on their website.

• Include your Qualmark® in business award entries, especially the New Zealand Tourism Awards. It’s an external benchmarking tool.

• Refer your customers to other Qualmark® businesses in your area - you can be assured of their quality.

• Ensure you’re registered on www.newzealand.com and www.traveltrade.newzealand.com by signing up here. Qualmark licence holders are placed at the top of search lists.

Qualmark’s assessment systems have been developed in conjunction with operators, sector and industry associations and other stakeholders to ensure they accurately reflect the needs and expectations of today’s visitors, and that they reflect ‘best practice’ within that sector.

The systems have also been developed with reference to international tourism assessment systems and customer research, as well as drawing on Qualmark®’s own extensive experience in assessing tourism businesses.

Qualmark is New Zealand's independent quality assurance provider.

The Qualmark® system assesses against seven key areas: customer service, facilities and equipment, human resources, environment and culture, safety and welfare, business operations, and specially developed criteria unique to particular industry sectors.

As part of an assessment with Qualmark®, a team of independent assessors visits each and every tourism business annually. This onsite assessment takes on average three hours, sometimes longer.

The assessment includes checks on certification and compliance with key New Zealand legislation and insurances which are part of a checklist covering up to 500 different criteria.

Annual licence fees for Qualmark® are based on the size of your business and equate to less than $40 or $50 a month for small accommodation and tourism businesses. For more details visit http://www.qualmark.co.nz/

Pricing Your Product

Pricing your product appropriately is one of the key ingredients for success.

When setting the price make sure you include all the costs associated with doing business, and a margin for profit.

When you are setting your price consider the following:

• Operating cost - the cost of doing business includes:

- overheads

- staff costs (don’t forget yourself!)

- commissions and promotion costs.

• Competition - identifying the price of similar products in the national and international market will help you set a price band for your product.

• Demand - is demand for your type of tourism experience increasing or decreasing.

• Seasonality - visitor numbers are
likely to fluctuate through the year. Consider whether you need high and low season prices.

• Customer perception - who are your customers? Are they likely to perceive they are getting good value for money? What would they be willing to pay?

• Net sale price - your net rate is the amount you must receive from sales to maintain a sustainable and profitable business.

Net Rate = Operating Costs + Profit

The methods by which you choose to sell your product will also have a bearing on your pricing. If you are mainly selling directly to your visitors, you will not need to factor in the commission charged by travel agents,
i-SITE centres, inbound tour operators or wholesalers - which could add as much as 50% to your net price.

However, if your product is intended for international visitors you may need to work through the traditional distribution channel - see Working Internationally for more information on pricing for this sector.

Changing Prices

It’s best to keep your pricing consistent - particularly if you have any promotional material in circulation with prices included.

It’s also best not to discount prices, particularly if you are working with the traditional distribution channel, as this can affect your credibility with the sector.

	Pricing your product correctly is essential for your business

Accepting Payment

You should be able to accept credit cards - this creates a professional company image, and many visitors expect this service. It also makes it easier to confirm bookings.

Most banks can set you up with the ability to accept credit cards, but there will be a cost associated with this.

Westpac makes deals for tourism businesses available through the Tourism Industry Association, phone (04) 499 0104 for more details.

Most wholesalers and inbound operators will use a voucher payment system. Visitors are issued with a voucher, which they present to you; you then invoice the booking agent.

You should have agreed credit terms with wholesalers and inbound agents you are working with - it’s usual to request payment within 30 days.