lt of the previous increase in price. Just see how; first the sun beds were placed near the street site of the beach, near the boulevard. The space between the sun beds was relatively scarce. The space in front of the sun beds and nearer to the sea was reserved for the normal tourists with their own chairs, parasols or towels. TheSome changes that appear to be very complex are driven by very common principles. Take for example the shift to quality tourism in Spain, how does this process gain momentum?

First of all the shift to quality tourism is a response on another trend that changes the scene. First of all there is a move to residential tourism and there is (the longer existing) influence of the budget-flights to popular destinations, like Malaga in the south of Spain. Both trends are interrelated because residential tourism brings in more families and relations that do not reserve a hotel or apartment (but stay in the house of the foreign resident – how will spend its holiday outside the country for a while). Both shifts require an answer from the professional tourist industry.

And the answer is: a price increase. The price increase will automatically shift the sector to a higher quality level.

To understand how this works, just have a look at the price of a sun bed. This year you pay eight (8) Euros for two beds and a parasol. Last year you would pay 7,50 the year before 7,00 and 6,50 the year before that one. In percentage, the increase lowers each year, but as an absolute amount the price shifts are significant.

Now where does the quality shift comes from?

The shift in quality comes as a simple result of the previous increase in price. Just see how; first the sun beds were placed near the street site of the beach, near the boulevard. The space between the sun beds was relatively scarce. The space in front of the sun beds and nearer to the sea was reserved for the normal tourists with their own chairs, parasols or towels. The

d there is (the longer existing) influence of the budget-flights to popular destinations, like Malaga in the south of Spain. Both trends are interrelated because residential tourism brings in more families and relations that do not reserve a hotel or apartment (but stay in the house of the foreign resident – how will spend its holiday outside the country for a while). Both shifts require an answer from the professional tourist industry.

And the answer is: a price increase. The price increase will automatically shift the sector to a higher quality level.

To understand how this works, just have a look at the price of a sun bed. This year you pay eight (8) Euros for two beds and a parasol. Last year you would pay 7,50 the year before 7,00 and 6,50 the year before that one. In percentage, the increase lowers each year, but as an absolute amount the price shifts are significant.

Now where does the quality shift comes from?

The shift in quality comes as a simple result of the previous increase in price. Just see how; first the sun beds were placed near the street site of the beach, near the boulevard. The space between the sun beds was relatively scarce. The space in front of the sun beds and nearer to the sea was reserved for the normal tourists with their own chairs, parasols or towels. The

day outside the country for a while). Both shifts require an answer from the professional tourist industry.

And the answer is: a price increase. The price increase will automatically shift the sector to a higher quality level.

To understand how this works, just have a look at the price of a sun bed. This year you pay eight (8) Euros for two beds and a parasol. Last year you would pay 7,50 the year before 7,00 and 6,50 the year before that one. In percentage, the increase lowers each year, but as an absolute amount the price shifts are significant.

Now where does the quality shift comes from?

The shift in quality comes as a simple result of the previous increase in price. Just see how; first the sun beds were placed near the street site of the beach, near the boulevard. The space between the sun beds was relatively scarce. The space in front of the sun beds and nearer to the sea was reserved for the normal tourists with their own chairs, parasols or towels. The

ght (8) Euros for two beds and a parasol. Last year you would pay 7,50 the year before 7,00 and 6,50 the year before that one. In percentage, the increase lowers each year, but as an absolute amount the price shifts are significant.

Now where does the quality shift comes from?

The shift in quality comes as a simple result of the previous increase in price. Just see how; first the sun beds were placed near the street site of the beach, near the boulevard. The space between the sun beds was relatively scarce. The space in front of the sun beds and nearer to the sea was reserved for the normal tourists with their own chairs, parasols or towels. The

lt of the previous increase in price. Just see how; first the sun beds were placed near the street site of the beach, near the boulevard. The space between the sun beds was relatively scarce. The space in front of the sun beds and nearer to the sea was reserved for the normal tourists with their own chairs, parasols or towels. The price-increase however asked for a reaction; paying the same (by the knowledgeable tourist) was just not acceptable. So the sun beds were moved closer to the sea and with ample space in between (leaving no more space for the other tourists using their simple towel -- and at the same time speculating that these tourists spend less).

This shift solves two problems. Based on the assumption that the sun-bed tourist will spend more: not only on sun beds but also on food and drinks, the price increase attracts more of the "right" tourists. This move is a clear sign what direction the sector is taking and what kind of tourist is welcome and which is not.

A simple mechanism. Not only used in the tourist sector but sometimes applied by banks who try to focus on clients with a higher share of wallet. There is a risk in this strategy and that is that it could affect the image of the company or in this case the image of a tourists sector. Besides this, the assumption of the share of wallet for either tourist could be wrong...

© 2007 Hans Bool