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Tourism Analysis – Melbourne


The cultural institutions of Melbourne have become key attractions for the growing tourist market in the city (Dow, 2015). Melbourne’s destination attractiveness depicts the opinions and feelings of its visitors concerning the perceived ability of the destination to satisfy the tourists’ needs. The ability of the city to meet the tourists’ needs has increased its attractiveness; therefore, the destination is more likely to be chosen. Furthermore, Melbourne is considered to be competitive because the market share, measured by financial returns and visitor numbers are consistently increasing. According to Vengesayi (2003, p.638), competitiveness has to be associated with high numbers of visitors as well as the increasing destination income. Using a number of theories, the essay seeks to provide an analysis about Melbourne in terms of segmentation, marketing and services marketing, destination cycle and sustainability.


Not all tourists as mentioned by Dolnicar (2008, p.130) are the same since some have different depictions of their ideal vacation; therefore, they are heterogeneous. For that reason, market segmentation is considered to be a strategic tool in Melbourne, whereby tourists are grouped into market segments. The tourism sector in Melbourne uses market segmentation widely so as to examine the competitive advantage opportunities within the marketplace. Basically, market segmentation has been beneficial because it has enabled Melbourne’s tourism sector to focus on the needs of a certain group. As a result, the destination has achieved competitive advantage since it has continually focussed on improving a specific product like cultural tourism in a particular way instead offering everything to everyone at high cost. Market segmentation can generate a complexity of market position within the segments, which are successfully defined as well as penetrated. A number of tourist destinations are using market segmentation by activities as a rational alternative approach (Boksberger & Bartenwerffer, 2003, p.14). Melbourne as tourism destination is segmented into numerous market segments. The market is divided into different geographic segments; tourists are segmented into domestic and international visitors. The destination is also segmented in terms of demographic variables like family size, age, nationality, occupation and so forth. In this case, most caravan parks in Melbourne, are targeting middle-income families while luxury resorts are targeting high-income earners. Another market segment is the psychographic segment where the destination has been divided according to consumer opinions, values, interests, and attitudes (Hanlan et al., 2006, p.221). For instance, tourists who love outdoor activities are often targeted by the adventure tourism operators.

Marketing and Services Marketing

Generally, marketing involves the interrelationships as well as interaction amongst producers and consumers of goods and services. Basically, tourism services are heterogeneous, perishable, intangible and inseparable. Tourism services are deemed intangible because they cannot be “touched” beforehand. Melbourne uses a tourism marketing system, where multiple alternatives are normally evaluated carefully before the right activities are selected for specific markets. For this reason, marketers in Melbourne tourism sector employ the PRICE concept, which is strategic management process, where they: Plan (P), Research (R), Implement (I), control (C), and Evaluate (E). Fundamentally, this concept has enabled the marketers to find ways of strategically satisfying both the objectives of the organisation and the needs of the customers. In terms of services marketing, marketing in Melbourne can be summarised as internal marketing (more focus on culture), external marketing (the focus is on potential tourists), and interactive marketing (direct exchanges between tourists and service providers). To reach the potential customers, marketers Melbourne normally use the 8 Ps of services marketing (place, product, pricing, promotion, people, partnership, programming, and physical evidence)
(Freeman & Glazer, 2015). Then integrated marketing communications is used to plan andcoordinate every promotional mix element so as to remain mutually supportive.  Tourism according to Kannan (2009, p.4) has numerous components, and in Melbourne the main components include; accommodation, travel experience, aesthetics, food, entertainment as well as special events.

Destination cycle

Melbourne has adopted methods strategies, as well as tools already utilised by firms so as to manage the products, market, attract tourists, and remain competitive. Furthermore, the destination has diversified economic structures; therefore, tourism is not the only economic component. But the conditions within the destination are influenced by many environmental, economic, social and political factors. Such constraints according to Zmyślony (2011, p.868) make the destination tourism management and planning very complicated, disadvantaged by a high risk and uncertainty level. In view of this, the concept of tourism area life cycle (TALC) is largely utilised as the basis for a comprehensive qualitative analysis of the visitor flows’ changing the composition and spatial-economic benefits and costs in Melbourne. Tourist attraction life cycle in Melbourne can be described in four stages: Launching (typifies by poorly developed tourist infrastructure and accommodation), take-off (wherein the tourists volume grows, but the day trippers proportion declines), stagnation (day trippers proportion increases while the number of tourists stagnates), and decline (typified by high prices). Some of the factors that ha possibly reduced the number of tourists in Melbourne is congestion, traffic, social problems, negative political conditions and competitors threat.


Normally, sustainability depends on joint efforts of individual businesses as well as destination managers. In Melbourne,sustainability is ensured through practices such as energy efficiency, carbon offsetting and recycling. To ensure sustainability, Tourism Victoria has come up with a plan that seeks to address the main challenges of implementing tourism practices that are environmentally sustainable. Issues related to climate change and have been addressed and a Strategic Plan that requires businesses to espouse sustainable practices to decrease their environmental impact has also been introduced. The Strategic Plan seeks to reduce resource use and the waste production, reduce the carbon footprint in the tourism industry and promoting sustainable tourism so as to improve business performance.


In conclusion, the essay has the essay offered an analysis about Melbourne in terms of segmentation, marketing and services marketing, destination cycle and sustainability. As mentioned in the essay, market segmentation is a crucial tool used in Melbourne’s tourism industry so as to strengthen their competitive advantage. All in all, Melbourne is an important tourism destination for both domestic and international tourists thanks to its unique nature, beaches and cultural diversity.


Boksberger, P.E. & Bartenwerffer, T.v., 2003. Effective destination marketing through market segmentation by travel and leisure activities. Tourism Review, vol. 58, no. 4, pp.12 — 20.

Dolnicar, S., 2008. Market segmentation in tourism. In Woodside, A. & Martin, D. Tourism Management: Analysis, Behaviour and Strategy. Cambridge: CAB International. pp.129-50.

Dow, A., 2015. Melbourne’s top tourist destinations. [Online] Available at: HYPERLINK «%20» [Accessed 23 July 2016].

Freeman, R. & Glazer, K., 2015. Services Marketing. [Online] Available at: HYPERLINK «» [Accessed 23 July 2016].

Hanlan, J., Fuller, D. & Wilde, S.J., 2006. Segmenting tourism markets: a critical review. In Proceedings of To the city and beyond: Council for Australian University Tourism and Hospitality Education (CAUTHE) Conference. Melbourne, Vic, 2006.

Kannan, S., 2009. Tourism Marketing: A Service Marketing perspective. MPRA Paper. Munich : Munich Personal RePEc Archive.

Vengesayi, S., 2003. A conceptual model of tourism destination competitiveness and attractiveness. In ANZMAC 2003 Conference Proceedings. Adelaide, 2003.

Zmyślony, P., 2011. Application Of The Destination Life Cycle Concept In Managing Urban Tourism: Case Of Poznan, Poland. In Procceedings of the International Conference on Tourism (. Rhodes Island, Greece, 2011.