The Four Ps of Tourism

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The four Ps of tourism

Is tourism tangible or intangible creation? The most accepted definition is provided


by the UN World Tourism Organization (UNWTO): “Tourism comprises the activities
of persons travelling to another place outside their usual environment for not more
than one consecutive year for leisure, business and other purposes.”
In humans, there is a natural curiosity to know different places, the culture, and the
desire to travel is inborn. People keep travelling for a number of reasons. Travelling
activities will never stop; so, tourism activities will increase in the future more and
more, especially with the development of transportation systems and information
technology. Nevertheless, tourism is a multifaceted industry that involves numerous
stakeholders, right from the government of a nation, hospitality stakeholders, and the
natural environmental factors themselves—each contributing to either for growth or
downfall.
Let’s understand the four Ps of tourism.
Product: This is the first element of the marketing mix. Tourism as a product differs
from other products due to its large canvas. It covers a range of elements such as
accommodation, food and beverages, transportation, scenic beauty, historical
importance of the place, geographical state, and spiritual appeal. The fact is a
destination gains importance from a customer’s perspective. Not everything is
tangible in it; it is a mix of tangible and intangible elements. The destination is
‘product’ in tourism. From a marketing mix point of view, since tourism business is all
about the experience of the ‘tourist’, it requires to be handled differently. I personally
feel, as a traveller, that as a product each destination is complex in nature. Its
packaging matters.
Price: In tourism, price is the amount of money a customer pays for a package.
Whether the package is highly priced, properly priced or is low priced is decided by
the experience of the tourist. The pricing should be based on the offering made, the
accommodation standard, food standard, transportation standard, recreation and the
aspirations to be met with. Some destinations are expensively priced while others
are modestly priced. Tourism products are rarely identical. This is because locations
differ and also because of the people and the components that make up the
experience provided to a traveller. We see very diverse pricing strategies. For most
tourism businesses setting prices are market-based. It is driven by what competitors
with similar products and services charge within a given market. Let me clarify, in
tourism, price competitiveness is not price-driven, it is product-driven. It also
depends on seasonality element because tourism business is seasonal in nature.
Place: In tourism, distribution aspect is tricky. The link between tourism suppliers
and the customers is known as the distribution system. In terms of definition,
distribution is concerned with making the product available to the customer. It
includes various activities undertaken to make the product accessible and available
to target customers. Tourism being a service product—and here the customers need
to be transported to various destinations (point of sale)—its channels are tourist
operators, agents, wholesalers and ITOs (inbound tour operators). For the
distribution channels in tourism, understanding the distribution systems,
recommended rates of commission, and the roles of various booking agents matter.
Retailers provide customers with an accessible destinations; either online or as a
shop-front by booking travel products. They sell products to customers. Wholesalers
are businesses that will sell product through established retail distribution channels
both at the shop-front and online on the behalf of the service provider. They also sell
individual product elements and link them to shape packages. The role of the
intermediary has been an important element at all stages experienced by the tourism
sector. Technology has played a pivotal role in the growth of the travel industry.
Promotion: In tourism, it refers to informing the customers about the existence of a
destination, staying arrangements, pricing, facilities provided, entertainment factors,
etc. The promotional activity consists of educating, persuading and reminding the
customers about the product. A variety of media vehicles are available and being
used by the tourism industry. Meetings, Incentives, Conferences/Conventions and
Exhibitions (MICE) are a form of tourism.
The capital city of India, New Delhi, has been a favourite MICE destination for quite
some time. The numerous charms of the city vary from ancient monuments to
excellent shopping options, making the business meetings and conferences here an
absolute pleasure. The Ashok, New Delhi, has been hosting meetings and
conventions on the international scale for more than four decades. Spread over
16,435 sq-ft, the pillar-less Convention Hall at The Ashok is a favourite venue for top
businessmen and government officials. Other business meeting venues of the capital
are the Habitat World Convention Centre and the Vigyan Bhawan.
The tourism business will turn more hypercompetitive post the pandemic. Tourist
businesses will require adaptable and workable marketing strategies. The world is
well-connected today. In true sense, sky is the limit for the growth of the tourism
sector. The four Ps can be developed manifold and can be mixed and merged
beyond imagination.

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