New Zealand’s Kids Cruise Program, Essay Example

Pricing

The growth of New Zealand’s cruise ship visitors is growing significantly. “NZ as a destination for Australian passengers grew by over 6,000 passengers in the 2013 season to reach a total of 98,914 passengers” (Market Trends, 2014). The pricing of facilitating a kids program when porting in New Zealand varies significantly based upon the number of parents who utilize the onshore option. “Simply defined, price is the amount of money charged for a good or service. More broadly, price is the sum of the values consumers exchange for the benefits of having or using the product or service” (Kotler, Bowen and Makens, 2015). The service requires one employee for every three children. The ticket prices for Kelly Tarltans is discounted to $17 a child. The cost for lunch is $10 a child and the Auckland Museum is estimated to be $10 a child as well. The pricing also has to estimate the cost of shuttling the children to and from the ship to the events which are planned. The low-end pricing without profit consideration would be $150 a child for a day of fun for both the children and the parents. The recommended pricing for each child would be $300 for their fun-filled day of activities while the parents have their free time to visit New Zealand knowing their children are having fun as well.

Distribution

There are many distribution options available to reach the consumers with the opportunity to allow their children to participate in seeing New Zealand in a way that they would really enjoy. There are many channels to distribution for the new service. The first would be the cruise lines, who would benefit from the excursion opportunity for the children. They would present the option to the parents to purchase their own excursion packages along with the ones for their children prior to getting off the ship. Another channel of distribution is the New Zealand’s i-Site, which provides information for domestic and international travelers. “Established in 1990 by the New Zealand Tourist Publicity Board (now Tourism New Zealand), there are now almost 500 i-SITE staff in over 80 Visitor Centres around New Zealand. Each year, these centres welcome over 1 million international visitors and collectively assist with 7.8 million visitor enquiries” (I-Site, 2015). Lastly, the distribution channel will use the option of travel agents. Travel agents will have information for the children’s excursions with the detailed itinerary of the events that the children can participate in while the adults enjoy their ventures as well. They can make the suggestions for every traveler with children who port at Auckland to allow them to have their own time while their children have fun on their own level.

Management Structure

The management structure will have a general managers to oversee the other managers. There will be four department managers who will be responsible for the four level of products which include the core product, the facilitating products, the supporting products and the augmented products. This manager will be responsible for putting the entertainment and attraction itinerary of Auckland. There will be a manager for facilitation. This is the manager who will be directly involved with the offshore activities and ensure the kids are having a fun day in Auckland. The manager will also oversee the workers and offer training and feedback on a regular basis. There will be a manager for supporting products. The manager will be responsible for supplying the lunch for the kids and will take the photos of the children which their parents can buy later. Lastly, there is a manager for the augmented products. This manager will work directly with the distribution channels and the customer to discuss the tour and the events which will take place throughout the day. The manager will be responsible for the atmosphere provided by the tour guide and will directly aid in facilitating their fun day.

Resource Constraints

The resource constraints will aid in the presentation and marketing of the children’s offshore program. This tour is needed because currently there is nothing in the cruise market that is designed to keep the kids entertained onshore whilst the parents are shopping, or doing another activity that they may not off been able to take their kids to. The tour is also needed because it gives the visiting kids a different view of New Zealand that they may not get by just staying with their parents for the day. Factors that may influence this opportunity to create a kids tour, the current economy in New Zealand will be an advantageous factor to creating this tour, as with a strong economy this creates a strong demand for inbound tourism. The current economy in New Zealand is giving tourists more reason to visit as this means when they are exchanging their money they are getting in return what they are exchanging. Resource constraints in a negative consideration would be the availability of the Kelly Tarltans and Auckland Museum. If for some reasons these spots are closed or unavailable, it is vital to have backup events to ensure the children’s offshore program continues even if the primary locations are unavailable.

Personnel requirements/training

The first consideration for the hiring the staff to operate the child excursion program would be a thorough background check. Prior child care experience and a clean record would be required for employment. The operation would need the required licenses to provide the parents the security that their children will be well cared for while they are seeing the sites in Auckland.

“The Secretary of Education uses the criteria to assess compliance with the standards as set in the regulations (second tier). Compliance is required in order to gain and maintain a licence to operate an ECE service (or be certificated, in the case of playgroups)” (Legislation, 2015). The staff that will care for the children in their off-shore experience will be CPR certified and trained to handle other emergent situations. The employees will also be trained to use the buddy system for all excursion events which will allow for backup if any unforeseen event occurs. The training program will also teach the employees how to address difficult children in the proper manner. There will be a manager on every excursion who will oversee the off shore excursion and will provide on-hand education in the event situations arise that can provide a learning opportunity for the staff. Training will be ongoing to ensure that the children have the best possible time in their visit to Auckland.

Relevant legislation

Another factor that could be advantageous to the product is the political factor. Tourism New. Zealand is wanting to boost the amount of cruise ships that are visiting, and the onshore activities available to them. The relevant legislation is customs’ rules for imports and exports while docking in New Zealand. “?Customs’ role in managing the border includes a responsibility to enforce, or assist in the enforcement of, a wide range of import and export prohibitions and restrictions on behalf of a number of government departments and agencies” (Prohibited, 2015). It allows the guests to know what they can and cannot take too and from New Zealand. The government maintains control over what takes place when ships port, and it is important to understand the legislation and its potential impact over the child excursion program.

Any other considerations

The primary consideration that the child excursion program would have to consider is the potential competition which could challenge their position in the market. There are three main competitors which would offer fund entertainment for children while visiting Auckland. The first competitor is Fullers Rangitoto Volcanic explorer tour. The tour offers an exciting toured exploration of the volcano. “You board the ferry from the Downtown Auckland Ferry Terminal and enjoy a 25 minute cruise across the Waitemata Harbour to Rangitoto Island. On your arrival at the island, you’ll make your way to the parked explorer tour vehicle nearby, where your ranger guide will greet you” (Fullers Rangitoto, 2015). It is an exciting opportunity and could appeal to all ages, adults and children alike taking away business from the children’s excursion program. The second competitor is Auckland City sights and Kelly Tarltons sea life aquarium. The sea life aquarium offers a significant amount of entertainment in one stop. “Following the city tour we visit Kelly Tarlton’s SEA LIFE Aquarium. This underground visitor attraction enables you to experience something truly unique. Come face to face with New Zealand’s rich marine environment, including sharks, stingrays, seahorses and other incredible sea creatures. Enjoy an informative encounter with your favourite animals, and journey through the underwater viewing tunnel, the first of its kind in the world” (Auckland City, 2015). This will pose a significant threat to the child excursion program because it is extremely appealing to children. Lastly, it is important to consider the Auckland’s highlights half day tour. This tour give visitors the opportunity to experience different parts of Auckland city including davenport, they offer hot/cold drinks and snacks as part of the tour. “See the highlights of Auckland city with its 48 volcanoes and the marine village of Devonport on Auckland’s North Shore on a very personal tour with Global Tourism Award Winner TIME Unlimited Tours” (Auckland’s Highlights, 2015). The biggest consideration for the competition is marketing the products. Despite the significant appeal for these attractions, they mandate adult supervision. Parents will have to go on the excursions with the children instead of shopping or seeing the sights they wish to see. Marketing to the parents who would enjoy some adult time while knowing their children are enjoying themselves is a vital factor in remaining competitive.

References

Auckland City Sights and Kelly Tarlton’s Sea Life Aquarium. (2015). Retrieved from http://www.greatsights.co.nz/new-zealand-tour-destinations/auckland/auckland-city-sights-tour-kelly-tarltons

Auckland’s Highlights Half Day Tour. (2015). Retrieved from http://www.aucklandnz.com/things-to-do/listing/auckland-highlights-half-day-tour

Fullers Rangitoto Volcanic Explorer Tour. (2015). Retrieved from http://www.aucklandnz.com/things-to-do/listing/fullers-rangitoto-volcanic-explorer-tour

Kotler, Bowen and Makens. (2015). “Marketing for Hospitality and Tourism.” Pricing Products: Pricing Considerations, Approaches, and Strategy.

Legislation. (2015). Retrieved from http://www.lead.ece.govt.nz/ManagementInformation/EstablishingAnECEService/Legislation.aspx

i-SITE New Zealand. (2015). Retrieved from http://www.tourismnewzealand.com/developing-your-tourism-business/i-site-new-zealand/

Market Trends. (2014). Retrieved from http://www.tourismnewzealand.com/sector-marketing/cruise/market-trends

Prohibited and restricted imports and exports. (2015). Retrieved from http://www.customs.govt.nz/features/prohibited/Pages/default.aspx