MSC - Tourism Operations and Management - Final Notes
MSC - Tourism Operations and Management - Final Notes
Tourism has turned out to be an economic booster contributing to the economic development
of many countries over the last few decades. People see holidays as a necessity, and not as
luxury in the present scenario. Tourism calls for coordination and cooperation between travel
agents, tour operators, and tourists. Tourism has a few major elements − destinations,
attractions, sites, accommodation, and all ancillary services.
What is tourism?????
Mathieson and Wall (1982) define tourism as follows −
"The temporary movement of people to destinations outside their usual places of work and
residence, the activities undertaken during their stay in those destinations, and the facilities
created to cater to their needs."
The most common reasons for the people to travel away from home are −
To spend holidays leisurely
To visit friends and relatives
To attend business and professional engagements
To get health treatment
To undertake religious pilgrimages
Any other personal motives
1. Pilgrimage tourism: This form of tourism has been an ongoing process since time
immemorial. Ever since the Crusades war to establish Christianity people have been
travelling to destinations that brings them closer to their Creator, visiting places of
religious importance and places of worship like shrines, temples, mosques, churches
and other religious sites that have a bearing on the culture and tradition of their birth,
land and upbringing of a particular religious belief. This kind of tourism brings with it
ethical issues determined by the dominant political force in the region. It needs to be
treated with sensitivity as even the slightest provocation can spark an uncontrollable
situation that can cause loss of life and property. This kind of tourism can also be
termed as responsible religious tourism.
A pilgrimage is not just a journey it also involves the confrontation of travelers with
rituals, holy objects and sacred architecture. Travel to places of pilgrimage can be for
many reasons: annual visit as a mark of respect and belief, part of one's lifestyle, grant
of a wish, seeking solace, fulfilling of a vow, offerings to the gods, a lifetime
opportunity to visit one's ancestral holy land, atoning for ones' questionable deeds,
long desired healing of a physical or spiritual ailment, family pressure.
2. Business tourism: These tours are undertaken for the purposes of business promotions
by either corporate houses or individual business men or entrepreneurs to enhance the
growth of their business spreading their span far into their own country and other
countries engaging in like-wise business ventures. These tours bring about profitable
dealings with clients round the globe. These tours form apart of MICE TOURISM:
Meetings/Incentives/Conventions or Conferences/Exhibitions or Expositions. These
tours need not necessarily be strictly business oriented, a personal leisure experience
may be an add-on to the business factor.
3. Health tourism: With the kind of lifestyle most people lead today, stress and tension
have become increasingly predominant. The modern system o f medication has only
partly solved the problem. The world is fast becoming health conscious and there is
an inflow of tourists into India as the ancient form of Ayurveda being revived is fast
gaining ground and is highly popular among the westerners who seek to practice this
form of health treatment for a richer and healthier form of life. Ayurveda health
tourism is not only a holistic treatment system but it is also a way of life philosophy. It
believes in life as a well-balanced combination of mind, senses, body and soul. Herbal
treatment, yoga and meditation, steam bath and massage therapies have proved their
credence time and again as effective means to treat modern day health problems. This
type of tourism revitalizes one's spirit and body and one emerges a refreshed person
ready to take on life with renewed vigour.
Some of the famous Spas and Health resorts in:
North India:
West India:
South India:
4. Adventure tourism: This concept is an emerging form of tourism not only in India but
globally. Adventure tours are more strenuous and active than traditional vacation
packages. Some are marked as soft adventure such as camping, bird watching,
wildlife safaris and walking trail tours. Other sold as hard adventures are for those
looking for more physical challenges like white water rafting, mountaineering, rock
climbing, camel treks, cave \explorations, mountain biking, cross-country cycling and
trekking, whale watching, shark feeding, deep sea diving, hot air ballooning, para-
gliding, par-sailing, bungee jumping, ' bridge climbing, skiing, scuba diving and sky
diving. Adventure travelers range across a broad spectrum. The average profile of the
adventure traveler is a person 40 to 45+, good income, well educated and good health
fitness (No hyper tension, hearth problems, diabetes, spine problems or surgeries, no
replacement of the hip, knee or shoulder, pulse rate is checked, no pre medication for
sleep is taken, sufficient time gap between intake of meals) as required by the sport.
The most important factor taken into consideration is the timing for these tours and
the aspirant must be well informed of what is to be expected in undertaking the same.
Climate plays an important part in adventure tourism. All adventure spots have a pre
performance class that talks of the manner in which the same must be done. Strict
instructions are to be followed and in case of an exigency, the authorities are not held
responsible as it is mandatory for every participant to sign the declaration form.
Destinations for Adventure Tourism: Nepal, The Himalayas, Australia, South Africa,
Canada, India, & South America.
5. Sports tourism: Sports tourism refers to international and national trips undertaken to
watch sporting events. Common examples would include: events such as World Cups
(soccer, rugby, cricket etc). The most popular global sporting events are the Soccer
FIFA World Cup and the Olympics followed by European Football Championships.
Formula I Grand Prix attracts large number of international visitors. The Wimbledon
tennis is also widely watched as the space capacity is very limited and the gate price is
way too high for many to afford. The US Open Championship Cup (Tennis) at the
Flushing Meadows is also a much sought after sports event. India has a massive fan
following for the sport of Cricket and although it is every cricketer's dream to play at
the Lord's in England they also aspire to play at Eden Gardens in Kolkata (India) as
the number of spectators is mind boggling and West Bengal is a sport loving state of
India where irrespective of the home team a good game is always applauded. It was
estimated that the 2000 Olympics in Sydney 111,000 additional international arrivals
into Australia specifically travelling for sports tourism. (The Monaco Grand Prix
attracts 200,000 visitors over its four day duration.) The 2007 World Cup staged in the
Caribbean generated 100,000 visitors for the tournament. Increased media exposure of
sporting events over the last decade has raised the profile of many sports and although
TV coverage is excellent many sports fans want to experience live events. Sport
tourism niche market is expected to grow annually at around 6% for the next five
years.
6. Culinary & wine tourism: A country the size of India with innumerable communities
divided into various sects, there can be no better land to savor the cuisine. Across the
length and breadth of the country a vast variety of cuisine is available, the methods of
cooking, a long list of menu, the aromatic spices and the mouth watering gourmet has
now taken on a new form of enticing tourists to tickle their taste buds and due to the
growth of tourism learning the art of cooking of other countries is taking precedence.
Culinary tourism is very niche, students from the hospitality schools, chefs from
various hotels and world renowned restaurants, lessons and hands oil teaching,
cooking competitions, taste connoisseurs are in the lead. New forms, new methods,
new ingredients, time frames, catering to different types of functions, different
demands, different cultures, festivals and occasions have to be catered at. This gives a
new form of experience and also expertise. Viticulture (art of wine making) has a long
history in India as well. Wine making has existed throughout most of India's history
but was particularly encouraged by the Portuguese and British. Wine yards are found
in Maharashtra on the Deccan Plateau around Baramati, nasik, Pune, Sangli and
Sholapur.
Countries like France, Italy, Australia (Master Chef), USA, Canada, South Africa also
promote Wine Tourism. The Napa valley in the USA is famous for its vineyards. The
famous ICE WINE of Canada is a novelty and a great experience as the method of
making wine by freezing grapes is innovative. Yarra valley in Melbourne, Hunter
Valley in New South Wales (Australia), Stellenbosch in South Africa are all great
wine producing regions. Wine tasting tours are highly popular with all tourists as
these give them an opportunity to learn more about wine making and also tasting.
This brings in revenue and spread the popularity of the wine. Chardonnay, Cabernet,
Sauvignon, Shiraz, Merlot, Semillon and Pinot Noir are some famous wines.
Australia's wine regions have the freshest produce of grapes an industry they are
proud of. The wine industry is a significant contributor to the Australian economy.
One can have a hands-on experience on the art of wine making by staying on the
farms and learning from the locals. The emergence of India's growing middle class
fueled the growth and development of the wine industry and there are many vineyard
tours also undertaken in India.
7. Mass Tourism
It involves tourism of organized large groups of people to special tourist locations. It is a
traditional way where the daily program is fixed by the tour organizer. It is a social activity.
The tourists generally desire for souvenirs and site-seeing.
For example, religious places, theme parks, boat cruises, resort towns.
8.Alternative Tourism
It includes individually organized tours to find first-hand information about a place, local
culture, and environment.
For example, biking tour planned by an individual while accommodation is catered for on the
go.
9.Business
It is touring for conducting business transactions, attending business meetings, workshops, or
conferences. The objective of business tourism is mainly professional.
10. Pleasure
It includes tourism for improving one’s physical or spiritual well-being. For example,
vacation at a Yoga or rehabilitation centre.
11.Nature
It is tourism at places famous for pristine nature and serene beauty. The main objective is to
experience and enjoy nature such as farms and wildlife. Ecotourism is a part of nature
tourism.
12.Cultural
This type of tourism has an objective of understanding the local history of the place, foods,
local productions, and local culture.
13.Social
It includes tours conducted among relatives, friends, and others.
14Recreational Tourism
It includes travelling to escape from routine life. This is often done for enjoyment,
amusement, or pleasure. For example, Camping or beach visit.
14.Active Tourism
It is conducted with a clear objective such as climbing a mountain, touring around the world,
or learning local culinary arts or languages.
1) Cultural Tourism: an opportunity to experience the cultures of the world, their lifestyles,
cuisines, festivals, attire, and religious beliefs.
3) Architectural & Historical Tourism visiting ancient monuments and learning about the
various styles of architecture of the many dynasties of the world.
4) Shopping Tourism: Revenue tourism that fetches profits for the manufacturers and shop
owners.
5) Educational Tourism: includes an entire gamut of subjects the student is exposed to.
6) Rural Tourism: Visiting rural areas to learn about the existence of the villagers, their
culture, means of survival, boosting their finances by encouraging sale of local art &
handicrafts.
7) Agri Tourism: is a subset of a larger industry called Rural tourism that includes off-site
farmer's markets non-profit agricultural tours and other leisure and hospitality businesses that
attract visitors to the country side. Visiting farmers and agricultural land being informed of
the functional and day to day activities of the farm hands.
8) Medical Tourism: is arguably the most sought-after term in the tourism industry today.
India with its state of art hospitals and latest technologies along with the best and highly
qualified and experienced medical faculty is working to establish itself as the hub for medical
tourism.
9) Eco Tourism (Green Tourism): combines people's interest in nature along with their
concern about the environment in such forms as recycling, energy, conservation and
preservation.
10)Atomic Tourism (Dark Tourism): ranges from promotion of tourist locations which have
been sites of atomic explosions or victims of nuclear warfare or terrorist activities or nuclear
plant blasts, or sites of genocide and holocaust. It aims at creating a visual impact and
building up the intensity and gravity of the terror of war, nuclear warfare and terrorist
activities thereby effectively delivering the message of the evils of destruction.
11) Beach Tourism: Taking care of the natural resources of the land and enjoying its beauty.
12) LGBT Tourism: (lesbian, Gay, Bisexual, Transgender) A new genre of tourism that is
gradually growing globally.
13) Tribal Tourism: Tribal areas in India have still remained untouched by modern
civilization. Tribal tourism if handled with sensibly would result in overall economic
development of the tribes and their regions.
15) Gambling Tourism: travelling to destinations that are famous for their casinos.
Religious Tourism
It involves travelling to places of religious significance such as Vaishno Devi in Jammu-
Kashmir and Golden Temple at Amritsar (India), Mecca in Saudi Arabia, Bethlehem, and
other such places.
Adventure Tourism
It involves tourism for adventurous activities such as rock climbing, bungee jumping, sky-
diving, hiking, horse-riding, surfing, rafting, or skiing.
Tourism is in its best form when the destination boasts of conducive climate. In contrast, any
undesired changes in the environment such as high winds, flash floods, drought, and extreme
climate can affect tourism adversely.
For example, during harsh summer months in India, people prefer to travel to colder climate
regions like hill stations.
Economy of the Country
When a country is undergoing economic turbulence and when people are facing
unemployment issues, tourism is affected adversely. On the contrary, when a country’s
economy is doing well and people can afford to spend money on leisure, tourism progresses.
Technology
Internet has penetrated to almost every corner of the world. Tourists are enjoying the benefits
of Internet. While planning a tour, the tourists try to get the idea about the places they are
going to visit, the quality of amenities and services, and the attractions at the destination.
After visiting a destination, the experienced tourists share their opinions on various platforms
of the Internet.
Thus, the reviews of experienced tourists shared on the internet work as guidelines for the
following tourists. Hence, just like a double-edged sword, the Internet can boost as well as
bring down the tourism business.
Terms that are frequently used in the tourism industry:
Attraction − It is a physical or cultural feature of a place that can satisfy
tourists’ leisure-based need.
Cultural Heritage − It is an expression of the manner of living developed by a
community and passed on from one generation to the next. It includes customs,
practices, places, objects, artistic expressions and values.
Dark Tourism − (Black or Grief tourism) It is the tourism involving travel to
places historically associated with death and tragedy.
Destination − It is a place the tourist visits and stays there for at least 24 hours.
The destination supports staying facilities, attractions, and tourist resources.
Ecotourism − It involves maintenance and enhancement of natural systems
such as water, air, woods and forests, and flora and fauna through tourism.
Excursionist − Persons traveling for pleasure in a period less than 24 hours
Foreign Tourist − Any person visiting a country, other than that in which
he/she usually resides, for a period of at least 24 hours.
Hiking − A long and vigorous walk on the trail.
Intermediaries − They are the intermediate links between the form of goods
and services tourists do not require and the form of goods and services the
tourists’ demand.
Itinerary − A documented plan of the tour.
Leisure − The free time when obligations are at a minimum and one can relax.
Recreation − The activities carried out during leisure time.
Site − It is a particular place bound by physical or cultural characteristics
Skiing − It is a recreational activity and competitive winter sport in which the
participant uses skis to glide on snow.
Snorkelling − It is the practice of swimming on or through a water body while
being equipped with a diving mask composed of a shaped tube called a
snorkel.
Terrain − It is a stretch of land, especially with regard to its physical features.
Tourism Carrying Capacity − The maximum number of people that may visit a
tourist destination at the same time, without causing destruction of the
physical, economic, socio-cultural environment, and an unacceptable decrease
in the quality of visitors' satisfaction.
Travel − The act of moving outside one's home community for business or
pleasure but not for commuting or traveling to or from usual places.
United Nations World Tourism Organization (UNWTO) − It is the United
Nations (UN) agency responsible for the promotion of responsible, sustainable,
and universally accessible tourism.
Visitor − A non-residential person visiting the place.
WTO − World Tourism Organization.
THE PHENOMENON OF TOURISM
Tourism is an increasingly widespread and complex activity that requires specialized and
sophisticated management to realize its full potential. It is a vast conglomerate of
transportation systems, service providers, recreational facilities, accommodations,
consumer products and specialized services and facilities among other things that provide
the customer an entire gamut (scope) of activities on his travels.
The first official words Tourism & Tourist was officiated in 1937 giving it a definition:
"People travelling out of their places of residence for periods of over 24 hours and for
reasons not related to work".
"Tourism comprises the activities of persons travelling to and staying in places outside
their usual environment for not more than one consecutive year for the purpose of
business, leisure and other purposes and not for earning wages".
Definition of a Tourist:
1) A person who makes a trip for pleasure or holiday.
2) He is a non-resident of the place he is visiting
3) He is travelling voluntarily /out of his own free will.
4) He is travelling for enjoyment, pleasure, relaxation, also business activities, but no
earning from any source
5) The trip has to be of a temporary nature.
6) Whilst on the trip he has no intention of being employed. (Earning wages).
7) He will ultimately return to the place of origin.
a) Inbound Tourism:
When the flow of passengers comes from another country into our country thereby
generating revenue in foreign exchange. E.g., passengers arriving from Australia
into India taking a tour of Rajasthan would be termed as Inbound Tourists
/tourism.
b) Outbound Tourism:
Movement in external or outbound tourism is when we take tours to other
countries (move outside the boundaries of our country) whereby they encounter
different cultural experiences, cuisine, languages that act as barriers, sights that are
awesome and history of the land, fills them with an experience that is value for
money. Documentation is an important formality that has to be complied with.
c) Domestic Tourism:
This kind of tourism is relatively easy to handle as travel is within one's own
country and the prospective customer can move about freely without any
restriction or any kind of complex documentation formalities. Domestic or Internal
Tourism can be defined as travel by national citizens of a given country and
resident foreigners within that country.
Importance of Tourism:
The importance of tourism can be viewed from two perspectives: the tourism industry and
the tourist.
Taking a holiday can greatly benefit a person’s quality of life. While different people have
very different ideas of what makes a good holiday. A holiday does have the potential to
enhance quality of life.
Travel is known to help broaden a person’s way of thinking. Travel introduces you to new
experiences, new cultures and new ways of life.
3. Educational value
One reason why tourism is important is education. The importance of tourism can be
attributed to the educational value that it provides. Travellers and tourists can learn many
things while undertaking a tourist experience, from tasting authentic local dishes to
learning about the exotic animals that they may encounter.
4. Ability to ‘escape’
Tourism provides the opportunity for escapism. Escapism can be good for the mind. It can
help you to relax, which in turn often helps you to be more productive in the workplace
and in everyday life.
6. Enhanced wellbeing
Having the opportunity for rest and relaxation in turn helps to enhance wellbeing.
7. Foreign exchange earnings
The importance of tourism is demonstrated through foreign exchange earnings. The money
that the country makes from tourism can then be reinvested in the economy. How a
destination manages their finances differs around the world; some destinations may spend
this money on growing their tourism industry further, some may spend this money on
public services such as education or healthcare.
9. Employment generation
The rapid expansion of international tourism has led to significant employment creation.
From hotel managers to theme park operatives to cleaners, tourism creates many
employment opportunities. Tourism supports some 7% of the world’s workers.
All of the money raised, whether through formal or informal means, has the potential to
contribute to the local economy.
If sustainable tourism is demonstrated, money will be directed to areas that will benefit the
local community most. The government may reinvest money towards public services and
money earned by tourism employees will be spent in the local community. This is known
as the multiplier effect.
Tourists visit Beijing to learn more about the Chinese Dynasties. Tourists visit Thailand to
taste authentic Thai food. Tourists travel to Brazil to go to the Rio Carnival, etc.
Many destinations will make a conserved effort to preserve and protect the local culture.
This often contributes to the conservation and sustainable management of natural
resources, the protection of local heritage, and a renaissance of indigenous cultures,
cultural arts and crafts.
Local people can also increase their influence on tourism development, as well as improve
their job and earnings prospects, through tourism-related professional training and
development of business and organisational skills.
13. Provision of Social Services
The importance of tourism is shown through the provision of social services in the host
community.
The tourism industry requires many facilities/ infrastructures to meet the needs of the
tourist. This often means that many developments in an area as a result of tourism will be
available for use by the locals also.
Local people often gained new roads, new sewage systems, new playgrounds, bus services
etc as a result of tourism. This can provide a great boost to their quality of life and is a
great example of a positive social impact of tourism.
These businesses may also promote the local cultures and arts. Museums, shows and
galleries are fantastic way to showcase the local customs and traditions of a destination.
This can help to promote/ preserve local traditions.
1. Transport
Transport facility is an important component without which a traveller cannot reach the
destination. Lack of public transportation and traffic jams are major issues at many tourist
destinations.
2. Communication
Communication plays an important role in the tourism industry. This unlimited access to
information has led to hundreds of thousands of people travelling to a destination every day.
And this increase in tourism can have economic, social, cultural, and environmental impacts
on both local communities and entire nations.
3. Residence or Hotel
Accommodation is one of the basic needs of any tourism activity. Travellers and tourists need
lodging for rest, while they are on a tour. If not provided proper facilities, nobody would
come back to the same place again. Accommodation and good hotels in the form of low
budget lodges/hotels to worldclass luxury hotels are available at all the major tourist
destinations to provide the tourist a home away from home. Therefore, there should be proper
establishments that provide a place for the tourist to stay, i.e., lodging facilities, proper food
facilities which should be provided during the stay of the tourist.
Less attention to domestic tourism is also an obstacle in the development of the tourism
industry. The costly items near the tourist places, theft, lack of discipline among the people
and negligence of rules and norms have made this an obstacle in the tourism industry. The
development of tourist places neglects the priorities of the individuals residing there.
5. Improper Publicity
Negative media event occurs when the mass media is communicating bad news, threats,
irritations or other matters that can be seen as unfavourable by the audience. An important
point is that the issues communicated by the mass media might or might not be true.
However, the end result will not be good. Due to the lack of publicity, the Royal train
started by Rajasthan Government ended up with a smaller number of passengers.
6. Government Policies
As tourism has become increasingly visible within the university sector, the perspectives
through which academics in the field of tourism studies view the world have also evolved.
Jafari (2001) identified four tourism platforms that have sequentially and incrementally
influenced and enriched the development of the field.
Advocacy Platform
This platform is represented by strong support for mass tourism because tourism has its
positive and critical attitude towards the industry is less or none. The platform sees that
tourism always has benefits to various regions of the world and emphasizes on market-
product equation and host communities. During 1950s and 1960s, dominated by this view,
tourism was started to be developed by many facilitating factors such as the emergence of a
strong middle class in the more developed world with a growing tendency to travel for
recreational purposes (Weaver,2006). These purposes were such as search for foreign culture,
search for nature(naturalism), wild and escapism, social esteem and ego- enhancement. Under
this view, travel is a form of consumption. Other motives included the return of peace and
stability after the wars, and the introduction of technological innovations that made the cost of
travel lower, and several resources for tourism. This platform views that tourism creates
economic benefits, for example generation of direct revenues, large number of direct and
indirect jobs as the tourism industry is labor- intensive. The benefits also include the
development at peripheral regions and tourism as a way of revitalizing declined
industry cities.
Cautionary Platform
This platform argues that if tourism development is not well regulated, planned and managed,
it will gradually cause unacceptably high environmental impact, which results in economic
damage and high socio-cultural cost for residents or local people of destinations. This
platform shows more views on mass or conventional tourism’s negative impacts caused by
intensified tourism development, which can be seen in many places. During the occurrence of
this platform, there was an emergence of the environmental movements that ignited an
awareness of increasingly degraded and hazardous environment especially in wildlife and
natural environment. More natural areas have become more spoiled, congested and polluted
due to pressure arising from tourism- related construction, tourist activities, and waste
generation. This is the conflict between human use of nature and the nature itself. Moreover,
this platform points out that the tourism can be a potential danger to host communities, a
threat to culture, as well as causing leakage of economic benefits.
This platform marks the beginning of perceived solution of negative impacts from the
cautionary platform caused by conventional tourism. The platform suggests adaptions or
alternative modes of tourism activities that are positive to host communities, or we can call
“alternative tourism”. Alternative tourism means that it is alternative to mass or conventional
tourism. Mode of alternative tourism according to the adaptancy platform is the tourism
development and activities that are small scaled, supporting locally- owned enterprises, and
use of natural resources with concern. During mid- 1980s, ecotourism first appeared as an
example of alternative tourism that emphasizes attractions based on the natural environment.
Under this platform, alternative tourism is presented as ‘good’ tourism, and mass tourism is
seen as ‘bad’ tourism.
Knowledge-Based Platform
This is the most holistic platform to view tourism and it is useful for stakeholders to apply in
the tourism industry. Gradually, the tourism industry has been growing and involved more
internationally. Stakeholders in the industry have learned from many lessons how unwell and
uncontrolled planning and management of tourism have caused impacts. Even alternative and
ecotourism, if not well managed, can have impacts. This platform is likely to bring about the
concept of sustainability to apply in the tourism industry. Stakeholders utilize lesson learned
as knowledge and experiences in managing the tourism to be more balanced.
THE TOURISM SYSTEM
The movement of tourists between residence and a destination, by way of a transit region,
and within the destination, comprises the primary flow of energy within this system. Other
flows of energy include exchanges of goods (e.g., imported food to feed tourists) and
information (e.g., tourism-related social media exchanges) that involve an array of
interdependent external environments and systems in which the tourism system is
embedded. The experience of the tourist, for example, is facilitated (or impeded) by the
economic and geopolitical systems which, respectively, provide or do not provide sufficient
discretionary income and accessibility to make the experience possible. Natural and cultural
external factors can have dramatic and unpredictable effects on tourism systems.
The overall tourism system is a hyperdynamic structure that is in a constant state of flux.
This is apparent not only in the constant travel of millions of tourists, but also in the
continuous opening and closing of accommodation facilities and transportation routes across
the globe. This instability represents yet another challenge faced by tourism managers, who
must realise that even the most up-to-date profile of the sector soon becomes obsolete. The
only certainty in tourism systems is constant change.
The Tourist:
1. Spatial Component
To become a tourist, a person must travel away from home. However, not all such
travel qualifies as tourism. The World Tourism Organization (UNWTO) and most
national and subnational tourism bodies hold that the travel must occur beyond the
individual’s ‘usual environment’. Since this is a highly subjective term that is open
to interpretation, these bodies normally stipulate minimum distance thresholds,
or other criteria such as state or municipal residency, which distinguish the ‘usual
environment’ from a tourist destination.
2. Temporal Component:
The length of time involved in the trip experience is the second basic factor that
determines whether someone is a tourist and what type of tourist they are.
Theoretically, while there is no minimum time that must be expended, most trips that
meet domestic tourism distance thresholds will require at least a few hours.
a. Stayovers and excursionists:
Within these time limits, the experience of an overnight stay is critical in defining the
type of tourist. If the tourist (domestic or international) remains in the destination
for at least one night, then that person is commonly classified as a stayover. If the
trip does not incorporate at least one overnight stay, then the term excursionist is
often used. Excursion-based tourism is dominated by two main types of activity. Cruise
ship excursionists are among the fastest growing segments of the tourist market.
Cross-border shoppers are the other major type of excursionist. This form of tourism
is also spatially concentrated, with major flows being associated with adjacent and
accessible countries with large concentrations of population along the border.
3. Travel purpose
The third basic tourist criterion concerns the travel purpose, which should not be confused
with motivation. Not all purposes for travelling qualify as tourism. The purposes that do
qualify as tourism are dominated by three major categories:
a. Leisure and recreation:
Leisure and recreation are just two components within a constellation of related purposes
that also includes terms such as ‘vacation’, ‘rest and relaxation’, ‘pleasure’ and
‘holiday’. This is the category that usually comes to mind when the stereotypical tourism
experience is imagined.
b. Visiting friends and relatives (VFR)
The intent to visit friends and relatives (i.e., VFR tourism) is the second most important
purpose for domestic and inbound tourists. the actual magnitude of VFR is underestimated
because many tourists staying with friends or family list ‘holiday’ as their purpose. An
important management implication of VFR tourism is that, unlike pleasure travel, the
destination decision is normally predetermined by the destination of residence of the person
who is to be visited.
c. Business:
There are numerous subcategories associated with business tourism, including
consulting, sales, operations, management and maintenance. However, the largest
category involves meetings, incentive travel, conventions and exhibitions, all of which
are combined in the acronym MICE. Most, but not all, of MICE tourism is related to
business. Many meetings and conventions, for example, involve such non-business
social activities as school and military reunions. Similarly, exhibitions can be divided
into trade and consumer subtypes, with the latter involving participants who attend
such events for pleasure/leisure purposes. Incentive tourists are travellers whose trips
are paid for all or in part by their employer as a way of rewarding excellent employee
performance.
d. Sports:
Sport-related tourism involves the travel and activities of athletes, trainers and others
associated with competitions and training, as well as the tourist spectators attending
sporting events and other sport-related venues. High-profile sporting mega-events
such as the Olympic Games and the World Cup of football not only confer a large
amount of visibility on the host destination and participating teams, but also involve
many participants and generate substantial tourist expenditure.
e. Spirituality:
Spiritual motivation includes travel for religious purposes. Pilgrimage activity
constitutes by far the largest form of tourism travel in Saudi Arabia due to the annual
pilgrimage or Hajj to Mecca by several million Muslims from around the world.
Religious travel is also extremely important in India’s domestic tourism sector as well.
One festival alone, the six-week Maha Kumbh Mela, drew an estimated 100 million
Hindu pilgrims to the city of Allahabad in 2013. It is commonly regarded as the
world’s biggest event of any type.
f. Health:
Tourism for health purposes includes visits to spas, although such travel is often merged
with pleasure/leisure motivations. More explicitly health related is travel
undertaken to receive medical treatment that is unavailable or too expensive in the
participant’s home country or region. Such travel is often described as medical
tourism.
g. Study:
Study, and formal education more broadly, is a category that most people do not
intuitively associate with tourism, even though it is a qualifying UNWTO criterion. They
also often return to their country of study as leisure tourists or permanent migrants.
h. Multi-purpose Tourism:
If every tourist had only a single reason for travelling, the classification of tourists
by purpose would be a simple task. However, many if not most tourist trips involve
multipurpose travel, which can be confusing for data classification and analysis.
e. Stopovers are tourists or other travellers temporarily staying in a location while in transit
to or from a destination region. The main criterion in international tourism that distinguishes
a stopover from an inbound stayover or excursionist is that they normally do not clear
customs or undergo any other border formalities that signify their ‘official’ presence in that
location. To illustrate the point, a person travelling by air from Sydney to Toronto normally
changes flights in San Francisco or Los Angeles. Most passengers disembark from the
aeroplane in these transit nodes and wait in the transit lobby of the airport for three or four
hours until it is time to board the aircraft for the second and final leg of this long-haul
journey. These transit passengers are all stopovers.
EVOLUTION AND GROWTH OF TOURISM
https://www.youtube.com/watch?v=jWi7QD8T7g4
Definition:
A place or any point of attraction that someone might be sent or wants to go far away distance
with the intention of escape from the daily routine, leisure, pilgrimage, adventure, sports etc.
Least Developed Countries: Countries that exhibit the lowest indicators of socio-economic
development, with the lowest Human Development Index ratings of all countries in the
world.
The first stage, involving the movement of international tourists within the more
developed world, emerged in the post–World War II period. The second stage, largely
associated with the emergence of the pleasure periphery after the late 1960s, involves
movements of people from advanced economies to emerging economies. The third
stage, involving traffic from one emerging economy to another, accounts for perhaps
20 per cent of all tourism but has the greatest growth potential. The realization of this
potential, however, will mean that many of these countries will have been reclassified
as advanced economies.
Pull factors influencing a destination
Two of the major forces (i.e., the fissionability of 3S- sand, sun, sea tourism, and internal
economic development) that have stimulated growth in the less developed world’s share of
the inbound tourist market have been explored. Consideration will now be given to the
general factors that can potentially encourage or discourage tourist traffic to any particular
destination. The use of the term ‘pull’ is metaphorical rather than literal. One important
implication of this geographical differentiation between supply and demand is that
destinations are better positioned to exert influence over the pull factors than they are over
the push factors. For example, a destination does not normally influence whether another
country evolves into a significant tourist-generating market, but it can take tangible measures
to develop its supply of attractions and create a welcoming environment to attract potential
visitors from that market. This issue of control will be considered in the discussion of each
individual factor. No priority is intended in the order that these factors are presented, since
the combination and relative importance of individual factors will vary between destinations.
Geographical proximity:
It is likely to become an increasingly important pull factor if energy costs continue to
increase. The effects of distance can also be reduced by initiatives that make destinations
more accessible to origin regions.
Political accessibility:
It refers to the conditions under which visitors are allowed entry into a destination. Except in
totalitarian states such as North Korea, where severe restrictions on internal travel are
imposed, political access is not a significant issue in domestic tourism. However, it is critical
in international tourism.
Availability of services:
The availability of hotels, restaurants, visitor bureaus and other specialized services and
facilities are a type of structural accessibility. Most tourists will avoid attractions if affiliated
services are unavailable, overpriced or of poor quality.
Availability of attractions:
There is widespread agreement among tourism researchers that attractions, because of their
crucial role in drawing tourists, are the most important component of the tourism system, and
a major factor around which the development of a destination will depend. Attractions
include specific features such as theme parks and battlefields, and generic or non-specific
features such as scenery and climate that cover a much larger territory.
Affordability:
All other factors being equal, reductions in cost generate increased tourist traffic to a
destination, as demonstrated by the effect of distance on transportation costs. The cost
of living in a destination region relative to an origin area is one important component,
since a high proportion of total trip costs are normally incurred within the destination through
food and accommodation expenditures. Many travelers from the more affluent countries are
attracted to emerging economies such as Indonesia, Thailand or Costa Rica because of the
low relative costs of locally denominated goods and services
The Tourism Products
Tourist attraction:
The availability of tourist attractions is an essential ‘pull’ factor and destinations should
therefore benefit from having a diversity of such resources. The compilation of an attraction
inventory incorporating actual and potential sites and events, is a fundamental step towards
ensuring that a destination realises its full tourism potential in this regard. There is at present
no classification system of attractions that is universally followed among tourism
stakeholders. However, a distinction between mainly ‘natural’ and mainly ‘cultural’
phenomena is commonly made. Four basic categories of attraction are thereby generated:
natural sites, natural events, cultural sites and cultural events.
1. Natural Site:
Natural attractions, as the name implies, are associated more closely with the natural
environment rather than the cultural environment. Natural site attractions can be
subdivided into topography, climate, hydrology, wildlife, and vegetation. Inbound
tourists are strongly influenced to visit Australia and New Zealand by natural sites
such as the ocean, botanical gardens, zoos and national parks. In the case of New
Zealand, ‘walking/trekking’ (also known as ‘tramping’) — the third most popular
reported specific type of attraction or activity amongst inbound tourists is largely
pursued in natural settings, as are land sightseeing and lookouts or viewing platforms,
the fourth and fifth most popular activities.
2. Natural events
Natural events are often independent of particular locations and unpredictable in
their occurrence and magnitude. Bird migrations are a good illustration. The Canadian
province of Saskatchewan is becoming popular for the spring and autumn migrations
of massive numbers of waterfowl, but the probability of arriving at the right place at
the right time to see the spectacular flocks is dictated by various factors, including
local weather conditions and larger-scale climate shifts. Many communities have
capitalised on these movements by holding birding festivals during predicted peak
activity periods, often using them as occasions to educate attendees about
environmental issues facing the target species.
3. Cultural Sites
Cultural sites, also known as ‘built’, ‘constructed’ or ‘human-made’ sites, are as or
more diverse than their natural counterparts. Categories of convenience include
prehistorical, historical, contemporary, economic activity, specialised recreational and
retail. As with natural sites, these distinctions are often blurred when considering specific
attractions.
4. Cultural events
Cultural events can be categorised in several ways, including the extent to which
they are regular or irregular in occurrence (e.g., the Summer Olympics every four years
versus one-time-only special commemorations) or location (the British Open tennis
tournament held at Wimbledon versus the changing Olympics site). Cultural events
range in size from a small local arts festival to international mega-events such as the
football World Cup. In addition, events may be ‘single destination’ (e.g., Wimbledon)
or ‘multiple destination’ in space or time (e.g., the Olympics sites spread over a region
or the circuit-based Tour de France bicycle race). Finally, thematic classification assigns
events to topical categories such as history, sport, religion, music and arts. For tourism
sites such as theme parks and historical destinations, periodic events are an important
supplementary attraction that add to product diversity and offer a distraction
from routine.
5. Attraction attributes
Destination managers, should compile an inventory of their tourism
attractions as a prerequisite for the effective management of their tourism sector. It is
not sufficient, however, just to list and categorise the attractions. Managers must also
periodically assess their status across an array of relevant attraction attributes.
Travel Agencies:
More than any other tourism industry sector, travel agencies are associated with origin
regions. Their primary function is to provide retail travel services to customers on a
commission basis from cruise lines and other tourism sectors or on a fee basis from
customers directly. Travel agents in addition normally offer ancillary services such as travel
insurance and passport/visa services. As such, they are an important interface or intermediary
between consumers and other tourism businesses. Often overlooked, however, is the critical
role of travel agents in shaping tourism systems by providing undecided consumers with
information and advice about prospective destinations. Furthermore, travel agents can
provide invaluable feedback to destination managers because of their sensitivity to market
trends and post-trip tourist attitudes about particular destinations and services.
1. Transportation:
The overriding trend in transportation over the past century is the ascendancy of the car and
the aeroplane at the expense of water- and rail-based transport.
a. Air:
As a commercial activity, air transportation is differentiated between scheduled airlines
(with standard and budget or low-cost variants), charter airlines and private jets. The
last category is by far the smallest and most individualised. The major difference
between the first two is the flexibility of charter schedules and the ability of charters
to accommodate specific requests from organisations or tour operators.
b. Road:
Only certain elements of the road-based transportation industry, including coaches,
caravans and rental cars, are strongly affiliated with the tourism industry. Coaches
remain a potent symbol of the package tour both in their capacity as tour facilitators
and as transportation from airport to hotel. Caravans remain popular because of their
dual accommodation and transportation functions
c. Railway
The rail industry as a whole now plays a marginal role in tourism, but there are two
areas where this involvement is more substantial. The first concerns regions, such
as Western Europe and East Asia, where concentrated and well-used rail networks
facilitate mass tourism travel. Rail pass options that allow unlimited access over
a given period of time are a popular product among free and independent travellers
(FITs). The second perspective pertains to train tours as attractions. As with cruise
ships, the trip itself is as much part of the ‘destination’ as the points of origin and
terminus. Train tours also attract the higher end of the market in terms of income.
Well-known examples include the Orient Express between London and Istanbul and
the Eastern Orient Express between Bangkok and Singapore.
d. Water
The great ocean liners that once dominated the trans-Atlantic trade are now in
a situation comparable to the great rail journeys — a high-end but residual niche
product. Yet the resilience of this sector is indicated by the launching in 2004 of the
Queen Mary II, which is the first major liner to be launched on the trans-Atlantic
route since the Queen Elizabeth II in 1969. The regional cruise market in areas such
as the Caribbean and Mediterranean has been more robust, expanding continuously
since the 1980s (Dowling 2006). Cruising has become increasingly popular in
Australia as well, with P&O permanently basing ships in major ports, and lines from
other countries basing vessels in Australia for three-to-four-month seasons. Important
trends include the proliferation of ever larger mega cruise liners such as Royal
Caribbean International’s Allure of the Seas and Oasis of the Seas, which each boast a
capacity of more than 5000 passengers.
2. Accommodation:
Withstanding the local importance of cruise ships and caravans, the vast majority
of stayovers who do not stay in the homes of friends or relatives use commercial
tourist accommodation. Once restricted to a narrow range of conventional hotels and
motels, the accommodation industry is now characterised by a high level of diversity
and specialisation.
Traditionally, hotels were established in central cities, often near major railway stations,
to meet the needs of business travellers. Such hotels are usually no longer dependent
on rail access and have often been reinvented as exclusive ‘boutique hotels’ that feature
intimacy and an often-quirky urban design. Another inner-city facility is the ‘convention
hotel’, which emerged during the 1960s to provide specialised meeting, conference and
convention services and, increasingly, diversions such as gaming facilities. As
such, they are closely affiliated with MICE tourism. ‘Airport hotels’ are a more recent
innovation. Airport hotels may also benefit as passengers are forced to allow more lead-
in time to clear security for morning flights (Lee & Jang 2011). ‘Motels’ (motor hotels)
in a sense are the opposite of airport hotels, as they offer independent access to units for
tourists travelling mainly by car. ‘Resort hotels’ are a 3S tourism symbol. These can
range from specialised providers of accommodation such as spas or ecolodges to fully
integrated enclave resorts that offer comprehensive recreational, retail and other
opportunities.
3. Tour- Operators:
Tour operators are intermediaries or facilitating businesses within the tourism distribution
system that can be differentiated between an outbound (or wholesaler)
component and an inbound component. Outbound tour operators are based in
origin regions and generally are large companies that organise volume-driven package
tours and the travel groups that purchase these. This involves the negotiation of contracts
with carriers, travel agencies, hotels and other suppliers of goods and services,
including the inbound tour operators that take responsibility for the tour groups
once they arrive in the destination. Revenue is usually generated on a commission
basis.
4. Merchandise:
Tourism-related merchandise can be divided into items purchased in the origin region
or the destination region. Origin region merchandise includes camping equipment,
luggage and travel guidebooks. The latter continue to serve as a major influence on
destination selection and tourist behaviour once in the destination. Souvenirs are the
dominant form of merchandise purchased by tourists within destinations. These can
range from jewelry trinkets and T-shirts to expensive, highly
ornate crafts, artworks and clothing.
Tourism Market
Tourism Market trends:
The tourism market is the overall group of consumers that engages in tourism-related travel.
Since 1950 there have been several major trends in the evolution of this market and these are
discussed below. Essentially, the overall tendency has been towards a gradually more focused
level of market segmentation, which can be defined as the division of the tourist market into
distinctive market segments presumed to be relatively consistent in terms of their members’
behaviour.
a. Democratization of travel:
This emerged as increased discretionary time and income, among other factors, made
domestic and then international travel accessible to the non-elite. Involvement in international
travel grew rapidly in the Western world during the 1960s and 1970s, while a similar
development occurred in certain Asian societies during the 1980s and 1990s. This was the
classic era of global ‘mass tourism’, during which the tourism industry — like Thomas Cook,
100 years earlier perceived tourists as a more or less homogeneous market that demanded and
consumed a very similar array of ‘cookie-cutter’ goods and services.
b. The emergence of simple market segmentation and multilevel segmentation:
The second major trend emerged during the mid-1970s, as a large increase in oil prices made
marketers and planners come to appreciate that a continuous growth scenario was not
practical for every destination, and that some portions of the rapidly growing tourist market
were more resistant to crisis conditions than others. This resulted in the practice of simple
market segmentation, or the division of the tourist market into a minimal number of more or
less homogenous subgroups based on certain common characteristics and/or behavioural
patterns.
By the 1980s the concept of market differentiation was refined through the practice of
multilevel segmentation, which subdivided the basic market segments into more specific
subgroups. For example, ‘Americans’ were divided into ‘East Coast’, West Coast’, ‘African–
Americans’ and other relevant categories that recognised the diverse characteristics and
behaviour otherwise disguised by simple market segmentation. Generational segments, such
as the Millennials and Baby Boomers, illustrate the idea of multilevel segmentation.
c. Niche markets and ‘markets of one’:
By the 1990s the tourist market in Phase Four societies was more sophisticated and
knowledgeable, having had three decades of mass travel experience. Consumers were aware
of what the tourism experience could and should be, and thus demanded higher quality and
more specialised products that cater to individual needs and tastes. The tourism industry has
been able to fulfil these demands because of the internet, flexible production techniques and
other technological innovations that have made catering to specialised tastes more feasible.
At the same time, the continued expansion of the tourist market has meant that traditionally
invisible market segments (e.g., older gay couples, railway enthusiasts, stargazing
ecotourists) are now much larger and thus constitute potentially lucrative markets for the
tourism industry in their own right. This has led to the identification of niche markets
encompassing relatively small groups of consumers with specialised characteristics and
tastes, and to the targeting of these tourists through an appropriately specialised array of
products within the tourism industry. Space tourists and medical tourists are good examples
of emerging niche markets. Extreme segmentation, based on markets of one, or segments
consisting of just one individual, has also become a normal part of product development and
marketing strategies in the early twenty-first century. This does not mean that mass marketing
will disappear, especially given that attractions such as theme parks continue to emphasise
their universal appeal, but simply that it will be technologically and financially feasible to
tailor a product to just one consumer, in recognition of the fact that each individual,
ultimately, is a unique market segment.
Tourism is one of the fastest growing industries, and in the recent years people of various
generations are travelling with different preferences and motives. Tourists travel for different
purpose like cultural tourism, medical tourism, adventure tourism, etc and their preferences
of services relating to transportation, accommodation, entertainment, food habits also differ.
It is very crucial for any tourism stakeholders to understand the needs of tourist and identify
specific groups of customers that have similar needs; so that services and marketing activities
can be customise accordingly. Market Segmentation therefore becomes a very important
aspect of business strategy and marketing tool for any organisation. Brennan (2003) defines
Market segmentation as the process of identifying groups of customers who are relatively
homogenous (having similar needs), in order to tailor and develop the products accordingly.
While Rao & Steckel (1998) has defined segmentation as “identifying groups of consumers
who behave differently in response to a given marketing strategy, like product development,
pricing strategy, promotional strategies, etc”
Segmentation variable are the criteria based on which a market is segmented into smaller
market segments. There is huge number of variables that could be used for market
segmentation. They comprise easy to determine demographic factors as well as variables on
user behaviour or customer. Segmenting the market can be done on several bases and some
common among them are illustrated
Geographic Demographic Psychographic Behavioural
segmentation segmentation segmentation segmentation
Dividing the market Dividing the market Dividing the market Dividing the market
on geographic basis based on based on common based on customer
such as country, state, characteristics of the psychological buying behaviour such
regions, cities, urban, population such as characteristics such as as occasion, benefits
rural etc. gender, age, income, lifestyle, social status, sought, usage, loyalty,
occupation, family, activities, opinions, attitude, etc.
education etc. interests, etc.
1) Geographic Segmentation:
Geographic segmentation is one of the simplest and most widely used methods for dividing
markets into target segments. Geographic segmentation is based on the assumption that
people, who live in the same place, share a number of characteristics with their closest
neighbours, such as lifestyle characteristics, demographics and consumption behaviour
patterns. Hence, geographic location is utilised to identify segments by means of
clustering neighbourhoods instead of clustering individual consumers. In geographic
segmentation, the market is divided according to geographical areas such as localities,
regions, cities, states, countries, zones, topography, political boundaries etc. It is easy to
use. There are universally accepted definitions of geographical areas Dividing the market
on geographic basis such as Country/States/ Regions, Cities, Urban, Rural, etc.
2) Demographic segmentation:
In this type of segmentation, the market is divided into groups based on the demographic
attributes such as age, gender, income, occupation, religion, race nationality, social class,
family size, family life cycle etc. The demographic attributes are:
i) Age: Travel preferences can be definitely counted on the basis of age. A young boy of 10
would like to travel to the Disney world while a man of 25 would go for an adventure
tour.
ii) Gender: Travel products needed by a men and women may differ due to the choice or
requirements. Products can be developed accordingly, like security would matter for
women while travelling by air, at hotels or while touring around the heritage sites. Tour
products can also be enhanced for the women traveller by giving more time for shopping
etc. Considering these choice-based aspects gender has to be a criteria of market
segmentation.
iii) Income: Income influences the expenditure on travel purchases. Products can be
developed based on the income level like the rich tourist prefer to go for a leisure tour
with the costly services right from the air travel to the accommodation, entertainment and
shopping while the low budget travellers prefer the services which are inexpensive.
iv) Nationality: People from various nationalities tend to have behaviour as per the
environment around them. For example, domestic tourism is influenced more by
religious tourism in India.
v) Occupation: A professional, businessman, and farmer from the same income group will
have different preferences therefore it is very important to segment them in groups and
develop the products accordingly.
vi) Religion: People travel for religious purposes - Hindus travel to their pilgrimage sites,
Muslims to their centres of worship, Sikh to the Gurudwara, Buddhist to the places
associated with life of Lord Buddha and so on.
vii) Generation: Generation also plays major role in segmenting markets Every generation is
deeply influenced by various activities of its time. Based on similar experiences, these
cohorts of individuals develop common preferences for music, movies, foods, and other
products. They also tend to respond to the same type of marketing appeals
viii) Social Class: Social class segmentation is influenced by customer choices of products
like an airline seat to the category of hotel etc. The taste and preferences of the social
classes also change according to time and contemporary trends. For example, if wine
tourism or medical tourism related to Cosmetic surgeries are in trend these group tend to
experience it for their social status.
ix) Life stage segmentation: Segments can be developed on the basis of life cycle. For
example, soon to be married couples can be segmented for the products like wedding
tourism or engineering student during the stage of their final year in college can be
segmented for industrial tours.
3) Psychographic Segmentation This segmentation is about dividing the market based upon
consumer values, personality and lifestyle traits. Considering these aspects there will be a
more precise match between the product and each segment’s needs and wants.
i) Value: Value segmentation is based upon how much the consumers spend on
their products. Previous purchase data such as buying habits like how many
purchases they make, how often they make purchases and the value of the items
they purchase– these help the companies to develop the value of the product
accordingly for this segment.
ii) Life Style: Different people lead different lifestyle depending on their income,
social groups, etc. People usually buy products, which suit their lifestyle. For
example, some prefer to go for shopping festival in Dubai or would like to attend
the carnival in Brazil than in Goa.
iii) Personality: Personality characteristics such as aggression, masculinity,
extroversion etc influence the buyer behaviour of individual. This segment was
studied and a classification of tourists was given by Plog (1974) based on their
personality types namely
Allocentrics and near allocentrics: These tourists love and enjoy discoveries in life;
they are self-confident and more versatile. They like to explore new cultures and
new life style. They preferably travel to exotic locations. They are independent
travellers and are above average income group.
Mid Centric: The mid centric segments like to travel comfortably and to familiar
places. They prefer relaxing while tour.
Psychocentrics and near psychocentrics: A Psychocentric is considered to be an
individual who tends to concentrate on life’s small problems, is bound to a
specific location, has generated anxieties and has a sense of powerlessness.
Psychocentric travellers tend to use travel as a means to enhance their social
status. These like familiarity and travel to places similar to their home places and
are preferably repeat visitors.
4) Behavioural Segmentation Behaviour segmentation focuses on the behaviors that a
consumer demonstrates in the market place. A better understanding of what motivates
consumers to buy, facilitate the development of product – service mixes that will better
satisfy the needs of consumers. Behavioural segmentation divides customers by their
i) Online shopping habits: Behaviours can be segmented by the users online
shopping habits across all sites. Products having attractive brands can be
developed on the company’s website which will be appealing to this segment and
there are enough chances for them to buy the product.
ii) Actions taken on a website: Time spent on the site, contents they click and time
spend for reading the marketing contents or articles can be checked to understand
their behaviour.
iii) Usage rate: You can categorise users based on usage rate. You can easily identify
heavy user, medium user, light user or non-user of your product. Moreover the
contents created and shared on the social media platforms like Face Book,
Twitter, Instagram is helpful for the companies to develop segments based on the
likes and dislikes of the consumers. Direct interaction of the customer towards the
various attributes of the brands can be tracked and the potential consumers can be
segmented easily. Data can be easily collected through cookies on website or
purchased from customer relationship management (CRM) software, etc.
iv) Loyalty Status: The loyalty status of a particular market can be divided into four
groups, according to the intensity of their loyalty to these brands.
Hard Core Loyals: These are the customers who are very loyal to the brand they use.
For e.g if these tourists prefer to stay at Taj group of hotels, they will never
change the brand in her/his life time.
Spilt Loyals: Customers who shifted their loyalty from one brand to another can be
classified under this segment. For example, a tourist changes the brand from Taj
group of Hotels to Marriot group of hotels.
Switchers: Switchers are those customers who are not brand specific. This tourist will
prefer any brand. They may stay in a five star or four star or any budget hotel as
per the circumstances.
Definition:
Marketing involves the interaction and interrelationships among consumers and producers of
goods and services, through which ideas, products, services and values are created and
exchanged for the mutual benefit of both groups.
Services Marketing:
Services marketing applies to service-sector activities such as tourism and is fundamentally
different from the marketing of goods. This holds true even though the tourism sector
interfaces with goods such as souvenirs and duty-free merchandise, and notwithstanding the
fact that many important marketing principles are equally applicable to both goods and
services. In general, the key marketing characteristics that distinguish services from goods
are:
1. Intangibility
In contrast to physical products, services have intangibility. This means that they can
be experienced in only a very limited way prior to their purchase and consumption.
Furthermore, customers usually have only receipt, souvenir or other memories
such as photographs as evidence that they actually had that experience. Customers
purchase tourism and hospitality services for the first time with little more than
knowledge of the price, some pictures of the destination and its facilities, endorsement
by some well-known personality, friends or relatives or the sales intermediary (e.g.,
travel agent) and, in some instances, their own prior experiences.
2. Inseparability
Tourism services are also characterised by inseparability, meaning that production
and consumption occur simultaneously and in the same place. This is demonstrated
by a passenger’s flight experience (i.e., the flight is being ‘produced’ at the same time
the passenger is ‘consuming’ it), or by a guest’s occupancy of a hotel room. Because the
consumers and producers of these products are in frequent contact, the nature of these
interactions have a major impact on customer satisfaction levels.
3. Variability
Tourism services have a high level of variability, meaning that each producer–
consumer interaction is a unique experience that is influenced by a large number of
often unpredictable factors. These include ‘human element’ factors such as the mood
and expectations of each participant at the particular time during which the service
encounter takes place. A tourist in a restaurant, for example, may be completely relaxed,
expecting that their every wish and demand will be satisfied, while the attending
waiter may have high levels of stress from overwork and expect the customer to be
‘more reasonable’ in their demands.
4. Perishability
Tourism services cannot be produced and stored today for consumption in the future.
For example, an airline flight that has 100 empty seats on a 400-seat aircraft cannot
compensate for the shortfall by selling 500 seats on the next flight of that plane.
The 100 seats are irrevocably lost, along with the revenue that they would normally
generate. The smaller number of meals that needs to be served does not compensate
for this lost revenue. Because some of this loss is attributable to airline passengers or
hotel guests who do not take up their reservations, most businesses ‘overbook’ their
services on the basis of the average number of seats that have not been claimed in the
past. For a tourism manager, one of the greatest challenges in marketing is to
compensate for perishability by effectively matching demand with supply.
Tourism managers will attempt to produce as close a match as possible between the
supply and corresponding demand for a product. This is because, all other things
being equal, resources that are not fully used will result in reduced profits. When
considering the supply and demand balance, there are two main cost components that
must be taken into account.
1. Fixed costs are entrenched costs that the operation has little flexibility to change
over the short term. Examples include taxes, the interest that has to be paid on
loans, and the heating costs that are incurred throughout a hotel during the winter
season. In the latter case, these must be paid whether the rooms are occupied or
not, as otherwise building and contents damage could result.
2. Variable costs are those costs that can be adjusted in the short term. For example,
during the low season hotels can dismiss their casual or contracted staff and cut
back on their advertising, thereby adjusting to low occupancy rates by saving on
salaries and promotion. It may also be possible to obtain cheaper and smaller supplies of
food if the hotel is not already under an inflexible long-term contract with
a specific supplier.
https://www.youtube.com/watch?v=7sPNnGNDExY
Economic, Socio- Cultural and Environmental Impacts of Tourism
1. ECONOMIC Impacts:
Positive Impact Negative Impact
1. Contributes to income and standard 1. Increases price of goods and services
of living 2. Increases price of land and housing
2. Improves local economy 3. Increases cost of living
3. Increases employment 4. Increases potential for imported
opportunities labour
4. Improves investment, development, 5. Cost for additional infrastructure
and infrastructure spending (water, sewer, power, fuel, medical,
5. Increases tax revenues etc.)
6. Improves public utilities 6. Increases road maintenance and
infrastructure transportation systems costs
7. Improves transport infrastructure 7. Seasonal tourism creates high-risk,
8. Increases opportunities for under- or unemployment issues
shopping 8. Competition for land with other
9. Economic impact (direct, indirect, (higher value) economic uses
induced spending) is widespread in 9. Profits may be exported by non-local
the community owners
10. Creates new business opportunities 10. Jobs may pay low wages
2. ENVIRONMENTAL Impacts:
1. Exploration:
The exploration stage marks the beginning. This is the primary phase when Governments
and the local people are beginning to think about tourism and how they could
capitalise and maximise their opportunities in this industry. This is where tourism
planning starts.
2. Involvement:
The involvement stage marks the beginning of tourism development. Guest houses may
start to open. Foreign investors may start to show an interest in development.
Governments may be under pressure to develop transport infrastructure and
community resources, such as airports, road layouts and healthcare provisions. The
involvement stage may mark the emergence of seasonality in tourism.
3. Development:
During the development stage there will be lots of building and planning. New roads,
train stations, and airports may be built. New tourist attractions may emerge. Hotels
and hospitality provisions will likely be an increase in marketing and promotion of the
destination. There could be increase media and social media coverage.
4. Consolidation:
During the consolidation stage tourism growth slows. This may be intentional, to limit
tourist numbers or to keep tourism products and services exclusive or it may be
unintentional. In some cases, the destinations have come to rely on tourism as a
dominant or their main source of income.
5. Stagnation:
The stagnation stage represents the beginning of a decline in tourism. During this time
visitor numbers may have reached their peak and varying capacities may be met. The
destinations have come to rely on tourism as a dominant or their main source of
income.
6. Decline / Rejuvenation:
The final stage of Butler’s tourism life cycle model represents a range of possible
outcomes for the destinations along the spectrum between rejuvenation and decline.
The outcome of this will depend upon the plans and actions of the stakeholders of said
tourism development project. If the changes don’t occur, there may be a slow
continuation of tourism decline.
Sustainable tourism
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The term sustainable tourism became popular in the early 1990s. The term at its most basic
represents a direct application of the sustainable development concept. Sustainable tourism,
in this context, is tourism that meets the needs of present generations without
compromising the ability of future generations to meet their own needs. In more practical
operational terms, sustainable tourism can be regarded as tourism managed in such a way
that:
• it does not exceed the environmental, sociocultural or economic carrying capacity of a given
destination, and
• related environmental, sociocultural and economic costs are minimised while related
environmental, sociocultural and economic benefits are maximised.
The intrusion of tourism has had adverse impacts on the physical environment,
regional development, economy of the region and also led to
commercialization of traditions, acculturation, pollution, disrespect for
religious practices, disregard for the surrounding hygiene and natural
resources. Tourism development takes many forms and it is vitally important
to see that these forms blend with the existing atmosphere.
All options for tourism development must serve effectively to improve the
quality of life of all people and must influence the socio-cultural
enrichment of each destination.
Tourism Research
Meaning of research:
Research means to search again and again or analysing a problem and finding out solution for
the same. It is a process which answers the question “WHY?”
Research is to be done in a systematic manner, taking available facts as the base to find out
the gap or solution to a research problem.
Definition:
It is defined as the systematic and objective process of Generating Information, for the aid in
making decisions.
For example:
Music and fragrance in a fine dine restaurant, improves the overall dining experience – A
study.
Research will have to be made by talking to consumers and taking feedback to find out about
their experience. Studying or analysing all the information collected the researcher can reach
to a solution whether the two factors really improve the dining experience or no.
Objectives of research:
1. Research helps to achieve new insight about the problem.
2. Research helps to develop new theory.
3. To generalize any theory on a universal level we need to undertake the research.
4. Research helps in knowing the connection between the two variables. (Independent
and Dependent).
For example.
Watching too much TV leads to faulty eyesight.
Independent variable: Faulty eyesight
Dependent variable: Watching too much TV.
Motivations in research:
1. To solve the problem in a work place or solve general issues or to find out different
solution for the same problem.
2. To reach the self-actualization level of human need as described in the hierarchy of
needs by Maslow
3. To research for the welfare of the society.
For example: Research that is carried out to find a vaccination for Covid – 19.
4. To get respect in the society. (Esteem needs as explained by Maslow’s Hierarchy of
needs)
Types of research:
Research is of two types:
1. . Quantitative Research
2. . Qualitative Research
Quantitative research:
Quantitative research focuses on the quantity and it is a process of collecting and analysing
numerical data. It helps to find out the pattern and averages and also to helps forecasting and
generalizing the results for wider population. It gives a concrete result.
For example:
Researcher consider the population of 260 students/ parents as a sample size to find out how
many parents are ready to send their wards for Industrial training, during the Covid- 19 era.
General output or answers to the questions that out of 260 parents, only 65 parents are ready
or 1/4th of the parents is ready to send their ward to gain first-hand knowledge at the 5 star
category hotels.
Quantitative research is of four types:
1. Descriptive Research: Descriptive research is used to describe the characteristic of
population in numerical form. It does not tell us about Why, How and When the
characteristic occurred.
2. Correlation Research: Correlation research is a research technique that represents the
statistical data and show whether and how two variables are related. It is a comparison
made between two variables using the cause and effects of those. For example: Will
there be a reduced tourism due to corona virus threat.
3. Causal – comparative Research: Causal – comparative research is research that helps
us to find out the relationship between two variables that is dependent variable and
independent variable after the action has already taken place. For example: Watching
TV serials has adverse effect on the young minds and their behaviour (Kids).
4. Experimental Research: Experimental research is a scientific approach to research
where one or more independent variables are manipulated and applied to one or more
dependent variables to measure their effect later on.
For example:
a) Imagine taking two samples of the same plant and exposing one of them to sunlight
and other kept away from sunlight. Plant which is exposed to sunlight is assumed as
Sample ‘A’ while the other one is assumed as Sample ‘B’ after the duration of the
research we found out that sample A grows and sample B dies. So, we conclude that
though both were regularly wetted and given same treatment and therefore we can say
that sunlight will aid growth in all similar plant.
b) If light music is played in one of the garment shops (Pantaloons) of a mall, people
may have a good shopping experience and visit frequently.
Experiment has to be done whether the music being played soothes the mood of the
buyer, he feels relaxed n shops peacefully and overall has a good shopping experience
and comes back to the same shop.
Qualitative Research:
Qualitative research focuses on quality and it gives the answer of Why questions. For
example: If 100 students were considered as the sample size to check obesity among
the teenagers, and 25 of them are found to be overweight, then we have to check why
are they over weight. Is it because of some genetic factors, or because of any disease
such as thyroid, sugar, or because of unhealthy eating habit or is it because of lack of
exercise, so now we will find the answer of this Why question and that is known as
Qualitative research.
Research Process:
1. Observation: Research identifies the topic based on his or her interest. This is the
very first step in doing research. Researcher should select which he or she finds more
enjoyable and gets more information about it.
2. Preliminary data gathering: In this process we can gather the information from
different sources such as from the library collection or from the magazine, journal or
newspaper, internet etc.
3. Defining a Problem: The researcher defines the problem which he or she is going to
study or research on it.
4. Theoretical framework: In theoretical framework, structure is defined that can hold
or support the theory of a research study.
5. Generalization of Hypothesis: Proposed explanation made on the basis of few
evidences as a starting point of research.
6. Scientific Research Design: It is a set of method and procedure chosen by a
researcher to do research.
7. Data collection, analyses and interpretation: The researcher collects the data from
the various sources and then analysed it and take out the important information
required for study.
8. Deduction: When we arrive on a fact by logical process of reasoning and generalize
conclusion.
9. Report Writing: Research report is the brief description of the research work done by
the researcher.
10. Report presentation: A research report is a presentation of research findings in the
form of report.