Strategic positioning and performance of winter destinations

Strategic positioning and performance of

winter destinations

Ruggero Sainaghi

Abstract

Purpose – This paper seeks to demonstrate the critical importance of the destination’s decisions made

in relation to market positioning in understanding the competitive performance achieved by local

businesses.

Design/methodology/approach – The aim of the empirical research was to check the following

hypotheses: clear positioning on longer-stay customers makes it more likely that the conduct of ski

corporations and hotel businesses will complement each other; clear positioning on longer-stay

customers improves the competitive performance of ski corporations; and clear positioning on

longer-stay customers improves the competitive performance of tourist hospitality businesses. The

multiple case study methodology was adopted as a means of refuting or confirming these hypotheses,

with the use of a combination of qualitative and quantitative data, although giving greater weight to the

quantitative sources.

Findings – Two dimensions are of decisive importance: the commercial mix of customers attracted to

the destination (distinguishing between day-trippers and longer-stay customers), and the structural mix

of plant capacity and high turnover tourist accommodation facilities.

Originality/value – The case studies chosen have made it possible to test three hypotheses according

to which a clear positioning on longer-stay customers: increases the extent to which the behaviour of ski

corporations and hotel structures complement each other; improves the competitive performance of the

ski corporations; and improves the competitive performance of the businesses offering tourist

accommodation.

Keywords Tourism, Competitive advantage, Market position, Business performance

Paper type Research paper

1. Introduction

European snow tourism, after a long development stage (Cockerell, 1988, 1994; Spring,

1998), is subject to increasing competition. It is indeed, a market characterised by low

growth rates (Fredman and Heberlein, 2003) and it has been faced with continuing

expansion of supply driven both by the creation of new destinations and by the growth in

available resources at those already in existence (Hudson, 2000; Flagestad and Hope,

2001; Gaido, 1998). In this context many destination operators (businesses, associations,

DMOs) are undecided as to the strategy to be adopted to maintain or increase their own

market share and above all, as to how to create a sustainable competitive advantage (Porter,

1985, 1991).

The issue is of great importance because the already delicate economic-financial

equilibrium of the ski corporations is being further eroded by the new rules of the game.

Indeed, there are many causes which have contributed to a significant increase in

operational costs and investments – reduction in snowfall (Wall, 1992; Perry, 2000; Agnew

and Viner, 2001; Scott et al., 2002) and the consequent development of planned snow

making (Scott et al., 2003, 2005), the increased investment costs for modern transport, the

growing staff and energy costs and the increased cost of maintaining ski run safety and

PAGE 40 j TOURISM REVIEW j VOL. 63 NO. 4 2008, pp. 40-57, Q Emerald Group Publishing Limited, ISSN 1660-5373 DOI 10.1108/16605370810912209

Ruggero Sainaghi is a

Researcher at the Istituto di

Economia e Marketing,

IULM University, Milan, Italy.