HÉVÍZ.

Source: Local Government of Hévíz Town

In addition to the increase in the number of accommodation provider licence, it is important to note that only 343 accommodation providers paid tourist tax. On one hand, it points out that a significant number of the licences in use does not perform real guest reception. On the other hand, it shows that a great number of the accommodation providers did not pay the tax. (The number of rentable capacities will be available after 31^st January 2011)

At the same time, the increase in the number of licences since 2007 also suggests that in addition to the existing commercial accommodation capacity, there is a considerable potential – as a livelihood or income supplement option - in accommodation services, since 113 new licences was issued since 2007.

Capacity of commercial accommodation – number of rentable beds

Tourist traffic data of commercial accommodation establishments in the period of January-October 2010

The above data show that commercial accommodation establishments reacted with an appropriate strategy to the economic crisis, therefore they were able to achieve an increase in the number of guests even in spite of the fall in effective demand. In the first 10 months of the year, the number of guests grew by 1,111 compared to the first 10 months of 2009. Further analysing this data, it can be said that the number of foreign guests rose significantly (+4,301), whereas the number of domestic guests decreased (-3,190). Compared to the fall in the number of domestic guests in 2008, it can be observed that the pace of reduction slowed, since the decrease was 3,570 in 2008.

Number of guest nights

The number of guests grew along with the number of guest nights. In the first 10 months, the number of guest nights increased by 21,214 guest nights compared to 2009. In case of international guest nights the increase was 20,923 nights and in case of domestic guest nights it was 291 nights. The domestic guest night growth is a significant result in light of the fact that the number of domestic guests decreased by 3,190 people and that in 2009 the fall in domestic guest nights was 15,847 nights. This growth is the result of the increase in the average length of stay.

Average length of stay

The increase in guest nights above was due to the increase in the average length of stay, which overall shows a 0.1 percentage point growth. In case of foreign length of stay, the average length of stay decreased, whereas the domestic average length of stay went up. A positive tendency can also be observed in case of the foreign average, since the decrease is smaller this year than in 2009.

Average rate, REVRAP

If only the guest traffic data is analysed, you can get a favourable image of the town’s tourism and effective demand.

It can be seen that the increase in the number of guest nights could be reached by reducing the average room rate and revenues, which is a dangerous process if it leads to a negative price spiral and strengthens the under-positioning of the town.

3. Determining the actual tasks for the year 2011

The local government launched the determination of the tasks of 2011 and the base of the long-term planning by interviewing residents and local service providers in December 2010. Private accommodation service providers, catering service providers and commercial enterpreneurs could express their opinions at separate public forums and hearings. The Local Government started to plan the tourist tasks of 2011 by taking these opinions into account.

In order to help efficient work, various special tasks were sharply separated. The Hévíz Tourism Marketing Association as the town’s TDM (Tourism Destination Management) organisation will continue to operate hereafter as an important civil consultation forum and the coordinator of the local service providers’ advisory opinion. Its most important tasks will be to accomplish the TDM tender won in 2009 (realised from a budget of nearly 50 million HUF), and to apply for local and regional TDM tenders invited in the beginning of 2011. The new tenders will probably enable to call in a tender source worth 150 million HUF, which can be used for tourism development. The Associaton will operate the Tourinform Office and the related services (accepting holiday cheques, bike rental, providing information).

3.1. Identifying and positioning target groups

To determine the work for 2011 and the long-term tasks, it is essential to precisely define the tourist target groups. In 2010, the study “The development strategy and operative program of Hévíz Tourism Destination” was created. Based on the procession of the actual information, it identifies the target groups of Hévíz as follows.   

Primarily, Hévíz is a spa destination, where traditionally visitors over 50 years of age with musculoskeletal disorders take treatments. Their daily rutine is adjusted to the treatments; they participate in therapy until the middle of the afternoon, then they rest and take part in light programs, such as walking, shopping, drinking coffee, having dinner, going to Egregy or cultural programs. Nearly 70% of the visitors are spa guests mainly in the period between March and November (excluding the hot summer months). Health tourism is transformed into holiday tourism by the younger and more active clientele. The remaining 30% of the tourist traffic is generated by wellness, holiday or conference tourists. The product range and clientele varies accordingly; health or health-conscious tourism instead of spa tourism, where wellness, selfness and active elements appear complementing each other. The proportion of young people over 30 and families with small children is increasing in the clientele. Wellness guests only comes from Hungary and the surrounding countries. They need health-conscious relaxation with high-level services in high-quality environment after the troubles of work. Accordingly, the demand for individualised high-quality programs and events, as well as for spending active leisure time is increasing.

Tipically, the clientele of Hévíz can be segmented according to nationality; the travel motivations and consumer behaviour of the various ethnic groups can be typified well. Regarding the tourist traffic and tourism revenues, it is necessary to point out three main target groups: domestic, German-speaking and Ukranian-Russian. These three groups together represent 90% of the tourist traffic. The visitors coming from the additional nationalities practically have complementary nature, but, at the same time, certain source markets have valuable potential.     

Recently, the proportion of domestic guests has increased significantly, they generate almost 53% of the tourist traffic currently. Within this, holiday cheques play an important role and Széchenyi Card, which will be introduced in 2011. Domestic tourists mainly come from the capital and major provincial towns (Pécs, Miskolc, Debrecen, Győr). Due to the country’s specific characteristics and the historical traditions, bath culture is present in the society, although, the majority of the Hungarian tourists does not come for taking cures. Most of the Hungarian population over 50 years of age do not have enough income to privately use these kinds of services, therefore Hungarian spa tourists go to rheuma hospitals and sanatoriums and their stay is financed by the National Health Insurance Fund. They can visit Hévíz with a referral from their general practioner for 2 weeks twice a year.  60% of the spa guests are returning guests. Typically, domestic spa guests do not stay in hotels and private accommodation establishments, usually wellness and holiday guests use these accommodation services. In the early and late season, people over 30 years of age go for a wellness holiday, in July and August families with children stay at the accommodation sites. In accordance with the motivation, the annual average length of stay is 3.6 days, in the early and late season it is 1-3 nights and 1 week in the summer. They choose from water-related travel offers based on the scope and quality of wellness services, the existence and variety of the adventure spa, and the size of the water surface. In addition to direct marketing, online communication and the aquiantances’ opinion have a significant role. The majority of Hungarian tourists has a good price-taking behaviour, they look for entertainment opportunities and the related per-unit spending is high. Among the wellness tourists, there is a circle of well-off managers, who arrive in Hévíz in order to break away from everyday work, recharge and regenerate. They usually use wellness services occasionally, however, they demand for high-quality services with cultural programs. They are active, therefore they also seek opportunities for hiking, sports and adventure trips. On the basis of high-quality complex services, there might be an opportunity to lead this group to the circle of therapy guests. Hévíz’s popularity in holiday tourism is based on the fact that the town could offer holiday experience independent of the weather. These tourists are also more active, they like to discover the background settlements in the framework of various individual trips.

From among foreign visitors, Germans and Russians are typically therapy guests. Tourists are coming almost exclusively from the neighbouring countries with the intention of wellness. To reach them directly, the destination’s marketing budget and capacity are not enough; visitors are mainly coming through agents. Since direct marketing is secondary, travel agents are targeted with package offers, information, promotions and study tours. Due to the effectiveness of the therapy and the high-quality of the related services, the number of regular guests is also high in their circle. In addition to the culture and needs of the particular ethnic group, the language skills of the locals and the visitors are also determining in their habits of spending leisure time.

Almost 70% of international guests are coming from German-speaking countries: Germany, Austria and Switzerland. Germans are mostly classic spa guests over 50-55. On average, they stay in Hévíz for 2 weeks, but there are also therapies, which last for 3-4 weeks. They have high standards, but they are sparers; they doubt the quantity, price and reasonableness of the treatments prescribed by the doctors, and usually, they do not use any additional services. They choose from the package deals of hotels or stay at private houses and go to the thermal lake, then in the evening they stroll around the town or visit the wineries and restaurants in Egregy. German visitors are explorers, who wander all over the area in an organized way or even individually often as an active tourist. The clientele is getting younger not in age but in demands, there is a growing interest towards yoga, Nordic walking, power walking and other active programs. Almost every guests’ costs are financed partly or fully by their domestic insurance companies – depending on the type of insurance companies and insurances. Besides the treatments, even the costs of accommodation are supported in the form of daily allowances in some occasions. On the basis of the shared historical traditions, culture and language knowledge as well as the former tourist traffic, the town specialised in meeting the needs of these segments. However, the clientele has changed significantly. Nowadays, the lower strata of the middle class return. It is due to the Austrian and Slovenian spa developments and the Hungarian supply, which became relatively more expensive. VAT and high tax burdens affecting service providers increased the price level, which cannot even be compensated by the developments of Hévíz. The high-standard medical tourism product is not well-known, therefore the potential tourists are not aware of the good price-performance ratio either. At the same time, many of the traditional returning guests die out or no longer can take the journey due to their health conditions. Economic constraints and Germany’s activities to encourage domestic tourism are also strong competitors. Instead of the old therapy guests, young visitors and wellness guests could also provide a new target group. However, in this area the town hasn’t got unparalleled competitive advantage and the competition is also much stronger. The middle age-group in the German-speaking countries often travels by plane and mostly collect information on the internet; but Hévíz currently does not show sufficiently effective activity in online communication.  

Previously, Austrian and Swiss visitors represented themselves in a total proportion of nearly 25% in the tourist traffic of Hévíz. However, their number decreased significantly in recent years. Swiss people are health-conscious, so they do not take specifically therapy packages. In the field of medicine, dentistry, several eye operations and plastic surgeries can be salable products to them rather than the classic Hévíz treatments for musculoskeletal diseases.  In addition to high standards, the combination of cost-effectiveness and holiday experiences may attract these target groups. In the field of wellness, Austria and Switzerland have very good units, so the existing strong competition was further heightened by the recent developments in Austria and Slovenia. Therefore, this clientele is not willing to travel much for a wellness experience. However, the Swiss are susceptible for culture. Castles and palaces are in better condition in Switzerland, but in the area of the characteristic Hungarian wine culture, gastronomy, folklore and Baroque architecture, in which Switzerland is lacking, successful thematic products can be created. This clientele is very individualistic; the requirements are extremely varying in respect of the accommodation services, but in terms of cultural programs, everyone demands for high-quality opportunities.

The decline in guest traffic from the German-speaking countries was compensated by the Russian and Ukranian markets. In the beginning, mostly individual guests arrived in a small number. These visitors enabled the mapping of their needs and behaviour, and the examination of other – primarily German – tourists’ reactions. Due to the dynamic growth in the guest arrivals, their proportion increased to 5% in Hévíz’s tourism in the last 10 years. This ratio can even reach 80-85% at their national or orthodox religious holidays. Visitors arrive by plane, therefore the operation of Sármellék Airport has strategic importance in this market. Russians do not usually speak foreign languages, this is why they often participate in group trips with an interpreter-guide. The German clientele, mostly belonging to the generation of World War 2, doesn’t really sympathize with Russian tourists, who, otherwise, would fit into the clientele of Hévíz. Mostly the upper strata of the Russian middle-class visits Hévíz. They know and like the bathing culture and the system of sanatoriums, but they primarily use it for regeneration, health preservation and preventive purposes instead of therapeutic reasons. Accordingly, the Russian target group is much younger. Young and middle-aged people arrive from the age of 28-30 at least for a two-week stay. All members of the family require treatments, even children against the professional objections of doctors. They look for high-standard services. In addition to the prescribed treatments, they also take additional therapeutic, wellness and beauty services. It is a good-paying target group with high price-taking behaviour, significant per-unit spending and often with extravagant needs. They search for prestige-type shopping opportunities. However, Hévíz is not ready for this yet, therefore they visit the shops in Vienna or Budapest. At the same time, they do not really want active programs, sometimes they take part in organised trips and cultural programs.

The domestic and international segments mentioned below represent 90% of the tourist traffic in Hévíz. In respect of present revenues, other groups are secondary, however, they are important in the field of capacity utilization and clientele diversification. Some of them might be supplements with significant potentials:

- Mostly wellness and holiday tourists arrive from the surrounding countries, such as the Czech Republic, Slovakia, Poland and Romania. Their consumer habits are very similar to those of the domestic wellness and family clientele’s.

- In the English-speaking countries, there is no tradition of therapy based on medicinal cures. The English do not believe in the effectiveness of medicinal waters. They mean massages and beauty services by the term ‘spa’, therefore they are not willing to travel thousands of kilometres. The arrival of English-speaking tourists rather was an interesting thing related to Ryanair flights.

- There is a high rate of rheumatic diseases among Scandinavian people due to the harsh climate. However, similarly to the British, they do not believe in medicinal water therapies either. They arrive to Hévíz as the final destination of their Hungarian round trip. They are satisfied with the experience provided by the town, but they do not return. They prefer destinations where the weather is surely sunny during their holiday because of their domestic climatic situation.  

- At the moment, it is still and interesting thing in point of tourist traffic, but China and the Far East are regarded as growing markets. As a result of their work ethic, they travel only in every 5-10 years and they spend only a night in Hévíz in the course of their two-week European round trip. In this field, there is a strong competition among Hungarian and Central European towns. Besides average travellers, there is a possibility to receive businessmen, businesswomen and delegations. The significant cultural differences make their reception more difficult regarding the organisation and infrastructure. However, the Far Eastern market might be an important additional segment.  

- Due to widespread and sophisticated bath culture, the Arab World can have considerable potentials. The Arabs believe in the effectiveness of water therapies, they like bathing and they have a high price-taking behaviour. However, their culture is very different, the town and the service providers have not been ready yet for the infrastructural and work organisation requirements related to the reception of guests from the Arab World.