Application

This unit describes the performance outcomes, skills and knowledge required to manage the strategic product development process from initial research through to product establishment and monitoring.
The unit applies to all tourism industry sectors and to senior personnel working in strategic planning and product development roles.
The skills in this unit must be applied in accordance with Commonwealth and State/Territory legislation, Australian/New Zealand standards and industry codes of practice.
No occupational licensing, certification or specific legislative requirements apply to this unit at the time of publication.

What You'll Learn

Assessment Requirements

Performance Evidence

Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:
• research, assess and develop a new product or service for one tourism operation, including:
• analysing current industry, market and organisational information
• gap analysis of current products or services
• determining costs of delivery, distribution and commission structure and setting a profitable selling price for the new product or service
• creating and implementing a product development plan
• developing measures of success and return on investment for the new product or service
• monitoring and evaluating the success of the product.

Knowledge Evidence

Demonstrated knowledge required to complete the tasks outlined in elements and performance criteria of this unit:
• features and inclusions of a product development plan
• tourism industry structures, interrelationships and networks
• tourism industry information sources:
• government bodies:
• funding agencies
• land management agencies
• internet
• local people
• reports and research:
• local, state, regional or national marketing plans
• statistical data
• public and private research bodies
• tourism operators
• tourism organisations and associations
• training agencies
• 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 and quality expectations
• current tourism product base for the proposed destination and market to be serviced
• current and proposed products and services of competitors
• 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:
• 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
• factors impacting organisational capacity to provide proposed product:
• destination’s capacity to sustain tourism
• impacts of potential product diversification for the business
• profitability issues
• resource constraints
• skills requirements
• sustainability:
• economic
• environmental
• legislative, accreditation, permit requirements
• minimal impact issues
• social and cultural
• risk assessment and control requirements
• financial operating costs in tourism organisations
• desired profit margins and achievement of high yield in order to determine an appropriate selling price
• expenditure items relevant to the development of tourism products:
• 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
• industry commission and mark-up procedures and rates appropriate in the relevant industry context
• organisational methods to monitor and evaluate key indicators of product success.

Assessment Conditions

Skills must be demonstrated in a tourism operation where tourism products are developed. This can be:
• an industry workplace; or
• a simulated industry environment set up for the purposes of assessment.
Assessment must ensure access to:
• current information and communications technology
• current tourism industry data and information sources about tourism market trends
• internal and external stakeholders with whom the individual can interact. These can be:
• people in an industry workplace who are assisted by the individual during the assessment process; or
• individuals who participate in role plays or simulated activities, set up for the purpose of assessment, in a simulated industry environment operated within a training organisation.
Assessors must satisfy the Standards for Registered Training Organisations’ requirements for assessors and have worked in industry for at least three years where they have applied the skills and knowledge of this unit of competency.

Foundation Skills

• {'skill': 'Reading skills to:', 'description': 'interpret complex tourism research documents that relate to tourism trends, market statistics, and information on market preferences and requirements.'}
• {'skill': 'Writing skills to:', 'description': 'communicate with internal and external stakeholders in regard to products.'}
• {'skill': 'Oral communication skills to:', 'description': 'consult with stakeholders in regard to products.'}
• {'skill': 'Numeracy skills to:', 'description': 'assess the profitability of product options; complete complex budgetary costings; calculate different commission and mark-up structures.'}
• {'skill': 'Problem-solving skills to:', 'description': 'make strategic responses to product development challenges.'}
• {'skill': 'Initiative and enterprise skills to:', 'description': 'evaluate and develop strategic responses to complex marketing and business information.'}
• {'skill': 'Planning and organising skills to:', 'description': 'coordinate implementation aspects of product development.'}
• {'skill': 'Technology skills to:', 'description': 'work with current tourism management and marketing systems.'}

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