{"id":22755,"date":"2024-05-03T15:04:53","date_gmt":"2024-05-03T13:04:53","guid":{"rendered":"https:\/\/francograsso.com\/overtourism-between-false-alarms-and-opportunity\/"},"modified":"2025-01-02T11:07:14","modified_gmt":"2025-01-02T10:07:14","slug":"overtourism-between-false-alarms-and-opportunity","status":"publish","type":"post","link":"https:\/\/francograsso.com\/en\/fg-en\/revenue-figures\/overtourism-between-false-alarms-and-opportunity\/","title":{"rendered":"Overtourism: Between (false) alarms and opportunity"},"content":{"rendered":"\n

Tourism represents one of Italy\u2019s main sources of income.<\/p>\n\n\n\n

Despite this, debate around this sector often oscillates between euphoria over the economic potential and worry over the phenomena of overtourism.<\/p>\n\n\n\n

This contrast generates not only confusion, but also reactions contrary to the country\u2019s sustainable tourist development.<\/p>\n\n\n\n

It is, then, crucial to find a balance to promote tourism without sacrificing the integrity of the most visited localities, using Revenue Management.<\/p>\n\n\n\n

A great lesson from Mauritius<\/strong><\/p>\n\n\n\n

\"\"
The splendid Mauritius<\/figcaption><\/figure>\n\n\n\n

Way back in 1988, during a one-month stay on the island of Mauritius to prepare my graduate thesis on the local economy, I bumped into a realty which even then managed overtourism with innovative tools.<\/p>\n\n\n\n

The island combined agriculture and tourism, but had reached its maximum welcoming capacity.<\/p>\n\n\n\n

In an interview, Mauritius\u2019 ministry of Tourism revealed to me a simple but effective solution to the growing demand: increase the hotel rates so as to modulate the tourist arrivals.<\/p>\n\n\n\n

Perceptions and realties of tourism in Italy<\/strong><\/p>\n\n\n\n

The sensation of intrusive, unsustainable tourism is principally noted on specific occasions: Easter, New Year, Ferragosto, or in historic cities such as in Venice and Rome.<\/p>\n\n\n\n

These moments and places are, though, just a part of the tourist panorama.<\/p>\n\n\n\n

It is fundamental to remember that the tourist industry operates all year round and that Italy is rich in destinations that are less known but equally enchanting and deserving of attention and promotion.<\/p>\n\n\n\n

Agriturismi teeming with clients at Easter, hotels packed at New Year \u2013 no vacancies are in sight at the sea in mid- August \u2013 Venice groaning under the weight of tourism \u2013 central Rome crammed by tourists holding it hostage\u2026 Gosh, what a catastrophe!<\/p>\n\n\n\n

The truth is that certain dates and certain places are always on everyone\u2019s lips.<\/p>\n\n\n\n

There are 365 days in a year and the hotels, except the seasonal ones, are always open.<\/p>\n\n\n\n

And then there are thousands of potentially highly tourist places in our country.<\/p>\n\n\n\n

The problem is not overtourism, but best spreading dates and places through correct, aware rating and commercial policies, to slow down the flows on some dates and in some places, and speed up the flows on other dates and in other places.<\/p>\n\n\n\n

Strategies to manage tourist flows: dynamic rating is the best tool<\/strong><\/p>\n\n\n\n

\"\"
Revenue Management helps manage your tourist flow.<\/figcaption><\/figure>\n\n\n\n

The rating lever is extraordinary in this.<\/p>\n\n\n\n

Is Venice drowned with tourists?<\/p>\n\n\n\n

But raise the rates and you\u2019ll see how it slows down!<\/p>\n\n\n\n

It will be filled in any case \u2013 if we want \u2013 but at least far more money will come in.<\/p>\n\n\n\n

And let\u2019s also try to readjust prices in a market-conscious manner in less crowded places and periods, and you\u2019ll see how many flows are diverted elsewhere.<\/p>\n\n\n\n

So the rating lever offers an outstanding method for managing tourist flows.<\/p>\n\n\n\n

For example, raise the rates during the highest attendance periods may help reduce overcrowding and increase returns.<\/p>\n\n\n\n

This approach lets you not only \u201cslow down\u201d tourism in some areas, but also \u201cspeed up\u201d interest towards less saturated zones.<\/p>\n\n\n\n

So adjusting prices awarely can direct tourist flows towards a more sustainable balance.<\/p>\n\n\n\n

My journey in Revenue Management<\/strong><\/p>\n\n\n\n

\"\"<\/a><\/figure>
\n

I have spent the last 25 years hearing people tell me that rates do not change the tourist flows, and for 25 years I\u2019ve been demonstrating the contrary, numbers in hand.<\/p>\n\n\n\n

Few hotels and many requests?<\/p>\n\n\n\n

Raise the rates and you\u2019ll see how requests slow down.<\/p>\n\n\n\n

Do you want to shift tourism to less requested places?<\/p>\n\n\n\n

Lower the rates and you\u2019ll see.<\/p>\n<\/div><\/div>\n\n\n\n

Simple, isn\u2019t it?<\/p>\n\n\n\n

I have personally and professionally confirmed that rates directly influence tourist flows, despite several contrary voices in the sector.<\/p>\n\n\n\n

You can read about my work here: https:\/\/francograsso.com\/<\/a><\/p>\n\n\n\n

Focused, strategical rating management really can change tourist distribution, showing that it is, with the right policies, possible to optimise both hotel occupancy and the overall tourist experience.<\/p>\n\n\n\n

Revenue Management as management culture<\/strong><\/p>\n\n\n\n

Revenue Management is not a magic wand, but an optimal methodology for best calibrating the tourist flows in terms of both space and time: it\u2019s like having an automobile and deciding how much petrol to put in and where to go.<\/p>\n\n\n\n

What can be done to best calibrate all the places and all the periods?<\/p>\n\n\n\n

It\u2019s quite simple, as long as every single facility applies the best revenue for itself, so as to obtain the maximum in terms of tourists and profit.<\/p>\n\n\n\n

And if every single facility does so, everything else will fall into place automatically!\n\nI\u2019d say that it is time to abandon certain sensationalism that does not help the hoteliers or our sector and activate the awareness that it can be us who guide everything, thanks to this irreplaceable tool called Revenue Management!<\/p>\n\n\n\n

Performing \u2013 actually, being \u2013 Revenue means not only applying a strategy, but embracing a careful, precise management culture, able to improve both the economical and the environmental, tourism sustainability.<\/p>\n\n\n\n

It is essential for every facility to adopt the best revenue management practice, so as to maximise its earnings and contribute positively to the national tourist web.<\/p>\n\n\n\n

Abandoning sensationalism and adopting a far-reaching vision really can make the difference in forming a fairer, more sustainable future for our country.<\/p>\n","protected":false},"excerpt":{"rendered":"

Tourism represents one of Italy\u2019s main sources of income. Despite this, debate around this sector often oscillates between euphoria over the economic potential and worry over the phenomena of overtourism. This contrast generates not only confusion, but also reactions contrary to the country\u2019s sustainable tourist development. It is, then, crucial to find a balance to […]<\/p>\n","protected":false},"author":8,"featured_media":18338,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[132,128],"tags":[146],"class_list":["post-22755","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fg-en","category-revenue-figures","tag-fg-en"],"yoast_head":"\nOvertourism: Between (false) alarms and opportunity - Franco Grasso<\/title>\n<meta name=\"description\" content=\"Tourism represents one of the main sources of income for Italy. 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