COLLEGE OF COMPUTER SCIENCE AND BUSINESS ADMINISTRATION IN LOMZA Marketing Management and Planning

2008/2009 Marketing Graduation – 3º Year

Educational: Mgr. Kondej

Tourism and Hotel Groups in Portugal

Competitive Analysis

Work accomplished by:Luisa Pires nº2460

Excutive Summary Brief BackGroung Market analysis In Numbers Segments Mega events The hotel market Strategic Operations Emitting countries strategic Destination competitor Project for the future Conclusion

Outline

In this presentation I plan to which defined the major hotel groups in Portugal, which its strategy of differentiation, making an analysis of current supply.

What is the impact of Euro 2008 and the current economic crisis in Portuguese tourism.

To analyze the competitive external environment.

And finally, analyze the tourist development in the future.

Executive Summary

Portugal

• Portugal is a country on the Iberian Peninsula. Located in southwestern Europe, The Atlantic archipelagos of the Azores and Madeira are also part of Portugal..

• The official language is portuguese.• Area total is 92,345km and the estimate population is 10,617,575

persons.• The capital is Lisbon.• The currency is Euro.• Tourism represents 11% of GDP (Gross Domestic Product).• Revenue more than 6 billion euros per year • 11.5 million tourists • 27 million visitors • 8 million domestic tourists• Approximately temperature in Portugal is:

Summer 30º-40ºWinter 10º-20º

Brief background

10 strategic tourism products and areas of supply :

Market analysis

Sun and Beach

Cultural and Landscape

Touring

City Break

Meetings and Congresses

Nature Tourism

Nautical Tourism

Health and WellnessGolfResidential Tourism

Gastronomy and Wines

In Numbers:

• Domestic tourism accounts for 30%.• The emitting countries most important are Spanish, United Kingdom ,German.• Portugal occupies the 19th in the ranking of countries with more international

tourists.

Overall average stay of tourists 2006 (in days)

Numero de turistas em 2006

Average daily spending by tourists in 2006 (Euros)

Segment

More than 80% of the number of beds is concentrated in the regions of Lisbon, Porto and Madeira.The segment that is more market power is the most expensive.Portugal is affirming its position as a tourism destination ofexcellence.

Mega events

*Tourists in Portugal (million)

The number of tourists in the years of mega events do not increase significantly but has increased consecutively.

According to information from site "tourism of Portugal," :

The “Euro2004” increased the number of tourists this year but also promote Portugal’s image as a City Break destinationand re-enhance modernity and contribute to restructuring theoffer and/or give visibility to the destination

Number of tourists increased 5.1% in 2007

Portugal received 23.7 million visits in 2007, representing a growth of 5.1 percent compared to the previous year, according to data from the National Institute of Statistics (INE) released today.

Last year, an increase of entries of visitors in Portugal was due, mainly, the movement of tourists (visitors who stay at least one night in the place visited), which recorded a rise of 9.2 percent for 2006.

Most tourists (7425 persons) came into Portugal by air, compared with 4896 tourists who entered the country by the border road. "To increase the air at the border [more 10.5 percent in 2007, compared to last year] has certainly contributed to creation of new airlines to national airports and the strong momentum of low-cost flights," states the report by INE .

According to the institute, "during the year 2007, the three major markets issuers of tourists were from Spain, the UK and France", but "the markets issuers that have contributed most to the increase in tourists were from Switzerland, the U.S. and Ireland. "

Most tourists (72.3 percent) visited Portugal for purposes of recreation, leisure and vacation. The also contribute to the growth of the entry of people in Portugal were the movements of excursionists (visitors who do not overnight accommodations in the place visited), which increased by 1.1 percent between 2006 and 2007.

2008 was much less tourists. That can be attributed to the economic crisis. Consequently increased domestic tourism.

Current Numbers

There is still a lot of small hotels (80%) withoutdefined strategic plan.The the main players are:

The Hotel Market

The strategies adopted by major hotel groups can be summarized in: • Mergers and Acquisitions • Franchise • Management arrangements • Consortia • Joint-venture • Sole-venture • Licenses

Strategic Operations

To fulfill the new transformations of the market, traders felt the need to develop ways of vertical integration; Own networks of travel agencies, hotel chains, airline companies and various support services to tourists; In Portugal the travel distribution is not comparable with that of the major markets of Europe emitters.

More promotion in 21 target including the domestic market, and

differentiated in function of their growth potential and Portugal's competitive positioning,

and classified into three groups:

Strategic markets - Portugal, United Kingdom, Spain, Germany and France - that should

be subject to a major promotional drive, guaranteeing a significant absolute contribution to

tourism and stimulating relative growth in the low season (October to May), higher than that in

the high season;

Markets to be developed - Scandinavian countries, Italy, United States of America, Japan,

Brazil, the Netherlands, Ireland and Belgium - where we aim to achieve significant absolute

growth;

Diversification markets - Austria, Switzerland, Russia, Canada, Poland, Czech Republic,

Hungary and China - where the objective is to increase market share, while strengthening the

notoriety of Destination Portugal.

Emitting countries strategic

The countries making direct competition to Portugal is Spain.

Spain has the same climate, culture very similar, is much larger geographically, has more investors and thus have cheaper prices

Because the main markets for Portugal are totally dominated by Spain:

United Kingdom Germany HolandaPortugal 2 0,8 0,5Spain 15 10 2,5 million tourists

Is increasingly difficult for Portugal to compete on price and quality.

Destination competitor

Project for the future

In my opinion, firs time Portugal need to improve human resources and good investors, broaden the range of promotional packages, the inter-linking the entire transportation network, hotels, restaurants and cultural activities.

Portugal has adopted a strategy of targeted regions. In each area that has very different characteristics.

If Spain has the power to the tourist masses, Portugal must work with niche markets worldwide.

Opt for a policy of differentiating radical.

Explore opposite segments, as 6 stars and the low cost.

Conclusion

THANKS