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„All Inclusive Tourism – Boutique Tourism” Or the Struggle for Leadershipin the Profit on the Global Tourism Market

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„All Inclusive Tourism – Boutique Tourism” Or the Struggle for Leadershipin the Profit on the Global Tourism Market Category: original scientific paper Miglena Temelkova 1 Iliyan Bakalov 2 „ALL INCLUSIVE TOURISM – BOUTIQUE TOURISM” OR THE STRUGGLE FOR LEADERSHIPIN THE PROFIT ON THE GLOBAL TOURISM MARKET Abstract: The struggle for revenue, profit and financial added The essential difference consists in the clash of value, image and customer added value in the global strategies with different philosophy and target tourism industry today is directly manifested in the audiences - diversification, differentiation and cost intense competition between the mass all inclusive leadership applied by the all-inclusive-tourism tourism and the unique and individually oriented strategy as opposed to the strategy of focusing boutique tourist product. The leadership in profit which is typical of boutique hotels and destinations. today is a result of the flexibility, creativity and Despite the different strategic approaches, the goal innovation of the strategy used, and in the is one and the same - leadership in terms of opposition "all inclusive tourism - boutique tourist generated profits. accommodation" the emphasis making a difference is not limited to prices, services, quality and number of tourists only. Keywords: All inclusive tourism, Boutique tourism, Leadership, Global tourism market Author´s data: 1 Miglena Temelkova, Varna Free University “ChernorizetsHrabar”, Republic of Bulgaria, E-mail: [email protected] 2 Iliyan Bakalov, Ministry of Economy, Republic Bulgaria, E-mail: [email protected] International Journal - VALLIS AUREA • Volume 1 • Number 2 • Croatia, December 2015 UDK 338.486:338.515; DOI 10.2507.IJVA.1.2.2.13 Introduction In recent years, the struggle for leadership in All inclusive and boutique accommodation are profit in the tourism industry worldwide has been two opposite tourism products which combine on a following global trends that are crucial for tourism global scale and with optimal balance quality and development: service to meet the customer needs of specific increase the proportion of high category hotels target groups, to make tourists loyal to the relevant offering the required conditions for recreation, tourism product and to maximise profits. quality of service and comfort combined with a Although all inclusive tourism is a mass tourism broad range of additional services: product and boutique tourism is oriented towards sustainable development of destinations individual tourism demand what they have in through harmony with the environment, common is the optimal price-quality ratio making compliance with environmental rules and these two types of tourism products leaders in the implementation of policies to protect tourism global tourism competition. The personal attention resources; to guests, the attention to their comfort and restructuring of the hospitality sector by individual requirements as an underlying concept of including accommodation facilities into large the philosophy of boutique tourism products hotel chains or by creating not very large but counterbalances the standardized all inclusive unique boutique design hotels; tourism supply aimed to concentrate large tourist introduction of high-tech and innovative flows. reservation systems; All inclusive tourism and boutique tourism quick growth of the strategies for cost depend strategically on two major but opposite in leadership and leadership based on focus; 16 nature and manifestation approaches– the mass full computerization of all hospitality approach and the individual approach – and target activities; different groups in the tourism market, constantly increasing the role of the human characterized by different profiles, tourism needs, factor in the management andorganization of requirements and solvency. And while the all destinations and the places of accommodation inclusive mass tourism product has reached a and entertainment, of the managerial leading position globally in terms of revenues and personnel and the staff; profits by providing a single, comprehensive development of tourism regions by stimulating package at a price that is common and accessible to the local business and raising the standard of a broadconsumer audience, boutique tourism living of the local population supply is based on the personal approach to guests, pays attention to the details, the uniqueness of the Factors determining the growth interior, the exterior and the service, the exclusivity and development of the all inclusive in terms of emotions and experiences during the industry and boutique accommodation tourists’ stay, the positioning within a particular The growth and development of the all inclusive market segment, provides a small number but industry and boutique accommodation in recent wealthy tourists with whose help boutique tourism years has been associated with intensive tourist products quickly become leaders in terms of flows, increased travel needs and desire for revenues and profits in the world tourism market. complete recreation and relaxation. All inclusive tourism and boutique tourism satisfy the International Journal - VALLIS AUREA • Volume 1 • Number 2 • Croatia, December 2015 UDK 338.486:338.515; DOI 10.2507.IJVA.1.2.2.13 requirements of disparate, even contradictory target the better quality of the tourism product as a whole. audiences, but continue to gain market share as The guests demand and get personalized attention, they satisfy the specific needs and the expectations and feel as part of a unique experience. of different types of users. To identify the factors Boutique accommodations are preferred mainly that determine the growth and development of these for business trips and boutique destinations two types of tourism products we should define the provoke the interest of wealthy tourists seeking not essential characteristics of the profile of the only luxury, comfort, quality and high-category tourists who demand and buy them in the tourism services but also unique environment, experiences market. and emotions. All inclusive tourists are as a rule less affluent Today the popularity of standardized, high compared to the tourists preferring boutique types quality, repeatable tourist offers including two or of tourism. Generally, boutique hotels and more services(such as transport, accommodation, destinations have a small capacity enabling them to food, attractions, insurance) in a single improve the quality of the tourism service and to comprehensive product[2] is associated primarily become quickly market leaders. The large capacity of with two main reasons –time and value. The all all-inclusive accommodation facilities requires care inclusive system is a guarantee that the goods for a greater number of guests and creates consumed during the holiday of the tourists is competition between them ass tourist service and calculated and paid at a pre-fixed price[1]. The the personal individual service provided by small factors associated with its growth and favouring its boutique hotels and/or destinations, which largely leading position in attracting revenue and profit meets the strictly personal preferences of each globally can be determined on the basis of this tourist. Since boutique accommodation facilities causation of the rapid development of all inclusive 17 are rarely part of large hotel chains or resorts, they tourism over the last 20years: have no explicit obligation to comply with the increase of tourist trips to 1,138 billion in 2014; standards of the brand. increased financial capacity of tourists and Travelers to day seek uniqueness. They want lack of sufficient free time; something different, something that offers them expansion of the global threat of terrorism and not only comfort but also uniqueness of the stay, the the fear of terrorist acts; quality, the service and the experiences. Boutique higher crime rates; tourism is intended for demanding tourists and fears of regional, political, economic and social business travellers who choose accommodation crises; establishments on the basis of the character and need for complete recreation and opportunity amenities and are willing to make premium for total relaxation; payments for experiences that meet their high prepayment for the holiday and absence of expectations cash and bank payments during the stay of the Boutique accommodation has set foot firmly in tourists. the world tourism industry thanks to its service and The competitive advantage of boutique tourism quality. During times of recession and a is associated with the care or guests who are subject macroeconomic crisis boutique tourism retains its to personalized services. A major factor in the competitive edge. This is due to the differentiated development of this type of tourism is that the and focused service, the class tourism services and product is provided over 12 months and boutique International Journal - VALLIS AUREA • Volume 1 • Number 2 • Croatia, December 2015 UDK 338.486:338.515; DOI 10.2507.IJVA.1.2.2.13 tourist accommodation is highly competitive and position and financial sustainability on the basis of provides services to a small number of tourists in a effective competition based on products with unique atmosphere with high added value in terms quality, quantity, financial, image and customer of quality, personalized service and satisfaction. added value. In leadership in tourism added value An important factor which determines the brings benefits both to the destination (for the choice of boutique accommodation is the demand by development of its anthropogenic and non- wealthy tourists
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