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Elements and Performance Criteria

  1. Research the market.
  2. Analyse issues relevant to product establishment.
  3. Determine profitable selling price.
  4. Establish the product.
  5. Monitor and evaluate the success of the product.

Required Skills

Required skills

communication skills to manage consultation processes with internal and external stakeholders

critical thinking skills to evaluate and develop strategic responses to complex marketing and business information

initiative and enterprise skills to recognise or proactively seek new and innovative product opportunities

literacy skills to

interpret complex tourism research documents that relate to tourism trends market statistics information on market preferences and requirements

numeracy skills to

complete complex budgetary costings

calculate a range of different commission and markup structures

calculate a range of different commission and markup structures

assess the profitability of various product options

planning and organising skills to coordinate implementation aspects of product development

problemsolving skills to make strategic responses to product development challenges

technology skills to work with current tourism management and marketing systems

Required knowledge

features and inclusions of a product development plan

tourism industry structures interrelationships networks and information sources

distribution and marketing networks that support tourism products in the relevant context

key stakeholders in local regional state and national tourism organisations and the structures of these organisations at each level

current market trends products and service styles that meet certain market requirements including quality expectations

current tourism product base for the proposed destination and market to be serviced

competitors current and proposed products and services

features of the destination at which the product will be delivered

aspects of laws that impact on tourism operations and actions required of tourism operators including

consumer protection

providing services as advertised

terms and conditions

refund requirements

cancellation fees

child sex tourism

legal liability insurance requirements and duty of care to customers

environmental protection

licences

permits

accreditation

minimal impact practice

local community protection

land ownership management and access requirements

financial operating costs in tourism organisations desired profit margins and achievement of high yield in order to determine an appropriate selling price

industry commission and markup procedures and rates appropriate in the relevant industry context

industry commission and markup procedures and rates appropriate in the relevant industry context.

Evidence Required

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria required skills and knowledge range statement and the Assessment Guidelines for the Training Package

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the ability to

research assess and develop tourism products for a tourism operation including

analysis of current industry market and organisational information

setting of a profitable selling price

creation of a product development plan

demonstrate knowledge of the tourism industry including structure and interrelationships tourism industry networks information sources and distribution and marketing networks

Context of and specific resources for assessment

Assessment must ensure use of

a real or simulated business operation for which tourism products can be developed

current information and communications technology

current tourism industry data and information sources about tourism market trends

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge The following examples are appropriate for this unit

evaluation of products services or experiences developed by the individual to meet differing needs

evaluation of completed product costing and pricing structures for specific products

case studies to assess the individuals ability to assess markets with differing product preferences and requirements

use of case studies to assess ability to evaluate tourism products and markets with different distribution and marketing networks

written or oral questioning to assess knowledge such as structure of the tourism industry tourism industry interrelationships distribution networks markup and commission structures and legal requirements

written or oral questioning to assess knowledge such as structure of the tourism industry, tourism industry interrelationships, distribution networks, markup and commission structures and legal requirements

review of portfolios of evidence and thirdparty workplace reports of onthejob performance by the individual

review of portfolios of evidence and thirdparty workplace reports of onthejob performance by the individual.

Guidance information for assessment

The assessor should design integrated assessment activities to holistically assess this unit with other units relevant to the industry sector workplace and job role for example

SITTPPD Research and analyse tourism data

SITTPPD Develop environmentally sustainable tourism operations

SITTPPD Develop culturally appropriate tourism operations

SITXMPR Develop and implement marketing strategies


Range Statement

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Product may have single or multiple components, and may include:

accommodation

activities of any type

attractions, both natural and built

catering

cruises

events:

business and corporate

entertainment and leisure

exhibitions, expositions and fairs

festivals

fundraising

government and civic

marketing

meetings and conventions

social

sports

tours:

brochured

day

extended

group

incentives

individual

optional

series

transport:

air

rail

bus or coach

shipping

transfers.

Information sources may include:

government bodies:

funding agencies

land management agencies

internet

local people

reports and research:

local, state, regional or national marketing plans

statistical data

research bodies:

public

private

tourism operators:

accommodation

destination marketing companies

tour operators

inbound tour operators

tour wholesalers

tourism organisations and associations

training agencies.

Product and service gapsmay include:

gaps in existing product range

markets for which level of demand is not being met

markets not currently serviced by any competitor or potential competitor.

Organisation’s capacity to provide proposed productmay involve consideration of:

destination factors:

capacity to sustain tourism

impacts of potential product diversification for the business

profitability issues

resource constraints

skills requirements

sustainability:

economic

environmental:

current credentials

legislative, accreditation, permit requirements

minimal impact issues

social and cultural

risk assessment and control requirements.

Expenditure itemsmay include:

capital costs and proportion attributed to the product

fixed costs

human resource costs

insurances

licensing and permit fees

marketing costs

operating costs attributed to operating the product

supply of component products and services

variable costs.