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Supply and Demand of Tourism Industry

This document discusses supply and demand in tourism. It outlines several factors that affect tourism demand, including tourism policies, marketing, services provided, socio-political changes, seasonality, market segments, and technology. It also discusses determinants of demand elasticity for business versus leisure travelers. Additionally, it covers components of tourism supply including simultaneous consumption of complementary products and services, substitute products, and the tourism supply chain. Finally, it provides definitions of tourism demand and supply and lists some key tourism suppliers.

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SHIREEN IFTKHAR AHMED-DM
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222 views14 pages

Supply and Demand of Tourism Industry

This document discusses supply and demand in tourism. It outlines several factors that affect tourism demand, including tourism policies, marketing, services provided, socio-political changes, seasonality, market segments, and technology. It also discusses determinants of demand elasticity for business versus leisure travelers. Additionally, it covers components of tourism supply including simultaneous consumption of complementary products and services, substitute products, and the tourism supply chain. Finally, it provides definitions of tourism demand and supply and lists some key tourism suppliers.

Uploaded by

SHIREEN IFTKHAR AHMED-DM
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Supply and Demand

In Tourism
Definition of ‘demand
for tourism’:

The total number of persons who


travel or wish to travel and use tourist
facilities and services at places away
from their places of work or residence
Economical

Geopolitical
Tourism
Policies

Factors affecting Tourism


Demand
Market
Segment Cultural

Seasonality Technological
• Tourism policy by government
organizations

• Marketing through promotional campaigns


that lift or create demand

• Services provided.
• Socio-political changes
Determinants of demand

elasticity
For business travellers the decision of
when/where or even whether to go is often
beyond their control. (attending conferences,
meetings, product launches etc) So
business travel is both price and income
inelastic.

For leisure travellers they have freedom of
choice regarding where/when/how long and even
whether to go on holiday at all. Leisure travellers
can shop competitively, checking prices, value
for money, special offers etc. So income and
price elasticities are higher than for business
travellers.
Simultaneous consumption
of
complementary products
and services
Tourism products are often consumed
together, such as an air flight and a hotel
.
room along with a sightseeing tour.

+
Substitute Products
 From other tourism products, such as
suppliers of similar products, or suppliers
of products to other destinations.

 From non tourism products – because


expenditure on tourism is often
discretionary and could be reassigned to
other ‘luxury’ goods such as computer,
car, home theatre system.
Definition of Tourism
Supply
The supply of all assets, services and goods
to be enjoyed or bought by visitors and
occasioned by the journeys of visitors.

Tourism supply consists of an amalgamation


or mix of attractions. Tourism supply shapes
the demand for tourism in a country.
Tourism Supply:

 Supply – the provision of the key


elements of the tourism industry by
the host government and
destinational leadership.
 Tourism resources for tourism supply
range from natural to man-made.
 Infrastructure required includes
telecommunications, accommodation
and transport.
 Tourism services include tour
companies, visitor information offices,
transport rental agencies
Components of Tourism Supply (supply chain)

Tourists Area of Transport Tourists Destination


Origin

Tourism Product

Product
Tourists Demand ACCOMMODATION Supplier
Package

Associated Services

Tourism
Government NGOs Services Tour Guides
Operators
+ Drivers

(Tshililo Nelwamondo – 2009)


Tourism
Suppliers
 Hospitality – accommodation, food
service, entertainment, leisure
activities
 Transport: Air, road, rail – both
to the destination and travelling
around
 Attractions: Theme parks,
museums, buildings, ski-slopes etc
2018 Revenue Growth
THANK YOU

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