the advertising budget
no magic formula exists for setting the advertising budget. how to spend is always a perplexing question. commonly used methods include a percentage of last year's sale, a percentage of potential sale, or the industry percentage. these methods are all flawed because advertising should create sales and cause things to happen, not react to what has happened in the past or in other companies. consequently, the best method of setting advertising budget is to determine the objectives to be performed and allocate the proper amount to reach these objectives.
promoting a new tourist destination area will require more money than will promoting one with an established clientele. the specific amount to budget for advertising and sales promotion will depend on each situation. However, as a general rule, most resorts spend about 3 percent of sales on media advertising and about 3 percent on other sales promotion activites
no matter what expenditures are, efforts should be made to coordinate the promotion program so it is consistent with the product offered and consumer expectations will be met. word of mouth is the least expensive, most convincing form of personal advertising. a friendly and capable host encourages this type of communication. visitors who are treated as very important persons will not only come back, they will recommend the area to their friend. all facilities, services, hospitality, and pricing policies must be directed to this one goal a happy, satisfied visitor