What role does Revenue Management play in the battle between direct sales and (the pesky) OTAs?
How can Revenue Management reduce dependence on OTAs? Key actions, segmentation, RMS, and pricing strategy...
See more
In a world where tourism has become a dominant force, its excesses no longer go unnoticed.
For almost two decades, the tourism landscape has been marked by the emergence of an alarming phenomenon: overtourism. Amplified by “revenge travellers” and encouraged by excessive commercialisation of sites, this scourge raises crucial questions. Has tourism, once a source of cultural enrichment and discovery, become an agent of destruction, damaging both sites and local residents? What’s more, has tourism gone to war with itself and with nature?
In this article, we will first look at the virtues of tourism, and then consider the urgent need to regulate tourist flows through the prism of Destination Yield. By exploring these dimensions, we seek to understand how tourism aspirations can be reconciled with the preservation of sites and the well-being of local communities.
If the subject is causing a stir, it’s not just because of the sometimes disastrous experiences that the tourists themselves have had. In fact, they are both victims and perpetrators in this affair. Nor is it because of the collateral damage that overtourism generates for itself: noise pollution, discomfort, visual pollution. The damage goes much further, affecting the ecosystem as a whole. Firstly, to the sites themselves: pollution, loss of biodiversity, the ugliness of certain infrastructures; and secondly, to the residents and their quality of life: deterioration of roads, saturation of public spaces, soaring property prices, etc.
The language used, hitherto gentle, is beginning to harden and become more incisive. The lexical field is now borrowed from that of more sensitive subjects: health, religion, war. We’re seeing sites in a state of absolute emergency. The symptoms are those of choking and suffocation. There is talk of desecration, of sacrilege. We denounce the mutilation of places, the invasion of sites. People are putting up resistance.
Has tourism, like ecology before it, gone to war? Or is it a new religion? We know all about punitive ecology, with its sins and prohibitions, its dogmas and morals, its prophets and martyrs. Tourism is beginning to fall into this category. It’s high time to reflect calmly on the situation, without fundamentalism, and considering the nobility of the subject in its two major dimensions: Man and his quest for happiness; Nature, which is both his progenitor and the object of his desire.
Let’s go back to the origins. Tourism as we know it dates back to the very early 19th century. It referred to travellers who visited foreign countries purely for pleasure. Initially reserved for an elite, it gradually became more democratic, conveying positive messages that contributed to human fulfilment: cultural enrichment, discovery of others, contemplation of nature. An activity to recharge your batteries, both physically and mentally. The mass take-up of the sport in the 1960s, with little regard for environmental concerns (but don’t take any lessons from me, you’re always smarter afterwards), had undeniable economic benefits and helped to make the most of our collective heritage and the hidden wonders of nature.
So it’s not a question of throwing the baby out with the bathwater and giving any credence to radicals of all stripes who, like the philosopher Laurence Devillairs, want to ban tourism outright. Leisure activities and exploring the beauties of the world remain a real asset. How can we fail to marvel at natural sites of unprecedented beauty such as the Cirque de Gavarnie in the Hautes-Pyrénées or at man-made splendours such as the church of Saint-Michel on its rock at Aiguilhe, near Le Puy-en-Velay? So it’s not a question of denying Man the contemplation of nature or the meditation on the works of his predecessors. It’s about regulating flows. It’s about preserving, perpetuating and passing on.
The Cinque Terre (Italy): 5 million visitors for 4,000 inhabitants, enough to suffocate you. The inhabitants of Belle Île, like those of Bréhat, can’t take it any more. Marseille’s Calanques have become tourist factories, like Etretat. It’s a matter of urgency.
Let’s be clear from the outset: there is no miracle solution. The necessary regulation of flows can only be achieved through a concerted, multi-year plan involving all the links in the tourism chain.
However, in the short term, a few good levers based on the notion of capacity and quota can be put forward to begin what is now known as tourism planning. As soon as we talk about these concepts, Yield Management is not far away. This practice, which consists of managing a limited stock to find the right balance between occupancy rate and average price, is primarily designed to maximise sales. Widely used in the airline and hotel industries, it is gaining ground in new sectors every year. The aim here is to apply it at Destination level in order to regulate flows, smooth out peaks and control demand. The aim is not to adopt a pricing bludgeon, but to regulate flows.
There are two types of site:
Regulating the flow of people has become a necessity in cities like Venice, where residents are suffocating. 10,000 of them leave their city every year, as the supply of short-term accommodation has pushed up property prices. A child who grew up there and could legitimately aspire to continue living there can no longer do so, as access to property has become prohibitively expensive. A strong political will is needed, which could involve a significant increase in taxation for short-term rental platforms, coupled with a drastic limit on the number of days that people are allowed to rent, in order to discourage opportunistic investors. To finally give the city back to its residents.
Venice, which has introduced a €5 entrance ticket for daily tourists visiting the old town between 8.30am and 4pm. This tax is intended to limit the massive influx of visitors and protect the city’s cultural heritage. Tourists staying for at least one night are exempt from this tax, thus encouraging more responsible and sustainable tourism.
Source : Le Point, « Venise lance son billet d’entrée à 5 euros pour limiter le tourisme de masse », 25 April 2024
A relevant example of demand management is the fare policy implemented by Air Corsica, which includes a distinction between fares reserved for local residents and those intended for tourists. This measure aims to mitigate the effects of the island’s pronounced seasonal nature and mass tourism. This public policy means that residents do not have to bear the cost of strong seasonality and intense tourism. However, although the cost of the fare reserved for residents is indirectly covered by tourists to compensate, this mechanism remains opaque and smoothed out. It is not an additional tax or an additional cost.
Destination Yield, like other mechanisms, must play a part in this necessary regulation of tourist flows. Pricing is part of this, more to enhance than to monetise sites, to finance their renovation and preservation, and to adapt tomorrow’s infrastructures. But these incentives must not be a substitute for a collective awareness of our relationship with tourism, the regions and nature. For everyone’s sake. For future generations.
Keywords: Surtourism, Tourism, regulation, flow, planning, gauge, quota, Yield Management, destination, reservation…
How can Revenue Management reduce dependence on OTAs? Key actions, segmentation, RMS, and pricing strategy...
See moreIs Revenue Management reserved for large hotel chains? Discover why RMS are now accessible to...
See moreThe end of OTA rate parity offers unprecedented freedom. The key is knowing how to...
See moreFor almost two decades, the tourism landscape has been marked by the emergence of an alarming phenomenon: overtourism. Amplified by...
See moreToo often, your tables are marked as “full”... yet there is still untapped potential. Discover how Revenue Management can transform...
See moreYou can't build a powerful RMS by staying confined to one sector. You build it by understanding demand, modeling complexity,...
See moreLa Poste is going through a deep crisis due to the continuous decline in postal mail usage. To offset this...
See moreArtificial intelligence is making its way into airline pricing with ultra-personalized practices. Between technological opportunities and ethical risks, is revenue...
See morePlummeting prices, empty stadiums, ticketing panic… What if the real problem was timing? At Revbell, we’ve broken down the pricing...
See moreThe promise is enticing: “What if you could travel by train this summer… for half the price? This summer, SNCF...
See moreThe simplistic definition of yield management — “selling to the right customer, at the right time, and at the right...
See moreEvent pricing is a delicate exercise, especially when managing ticket sales for large-scale events like the 2024 Olympics or promotional...
See moreShould you pay more for your orange juice at 7 PM than at 10 AM? Supermarkets are adopting technologies that...
See moreNext/Previous