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Tourism Demand Concepts

Tourism Demand Concepts

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Published by Vikas Kumar

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Published by: Vikas Kumar on Aug 27, 2010
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1
Tourism concepts
Dr. Nimit Chowdhary
Professor
Indian Institute of Tourism and TravelManagement
Tourism demandconcepts
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM2
TourismConceptsIndianInstitute ofTourism andTravelManagement
Defining tourism demand
The total number of people who travel,or wish to travel, to use tourist facilitiesand services at places away from their places of work and residenceGeographersPerspective of motivation and behaviour why people will ask for tourismPsychologistsSchedule of the amount of any productor service that people are willing andable to buy at each specific price in aset of possible prices during a specifiedperiod of timeEconomist
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM3
TourismConceptsIndianInstitute ofTourism andTravelManagement
Approaching tourism demand
Brings into perspective determinants of demand other than price those willinfluence participation and possibleparticipation in tourism!Geographer’sapproachWhat personality traits and externalinfluences will affect willingness to buya tourism product!PsychologicalapproachIdea of elasticity-what happens toquantity demanded when prices andother things change!Economicapproach
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM4
TourismConceptsIndianInstitute ofTourism andTravelManagement
Three concepts of demand
Effective or actual demand
Suppressed demand
No demand
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM5
TourismConceptsIndianInstitute ofTourism andTravelManagement
1. Effective demand
Actual number of participants in tourismor those who are traveling, i.e.
de facto 
tourists
Commonly and easily measured
Bulk of tourism statistics refers toeffective demand
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM6
TourismConceptsIndianInstitute ofTourism andTravelManagement
2. Suppressed demand
Comprises of people who would like totravel but do not travel for some purpose
Potential demand
refers to those whowould travel at some future date ifcircumstances change, e.g., purchasingpower or leave entitlement may increase
Deferred demand
is a demand postponeddue to a problem in supply environment,e.g., lack of capacity in accommodation
 
2
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM7
TourismConceptsIndianInstitute ofTourism andTravelManagement
3. No demand
Those who simply do not wish to travelor are unable to travel, constituting acategory of no demand
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM8
TourismConceptsIndianInstitute ofTourism andTravelManagement
Two more concepts
Substitution of demand
Refers to a case when demand for oneactivity (say a self catering holiday) issubstituted by another (staying in servicedaccommodation)
Redirection of demand
Where the geographical location ofdemand is changed, e.g., trip to Ootyisredirected to Darjling
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM9
TourismConceptsIndianInstitute ofTourism andTravelManagement
A new tourism supply
Might redirect demand from similarfacility
Might substitute demand from otherfacility (tourism product)
Might generate new demand
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM10
TourismConceptsIndianInstitute ofTourism andTravelManagement
Indicators of tourism demand
Two commonly used indicators of tourismdemand are:
Travel propensity
Penetration of tourism trips in apopulation
Demand schedule
Refers to the quantities of a product thatan individual wishes to purchase atdifferent prices at a given point in time
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM11
TourismConceptsIndianInstitute ofTourism andTravelManagement
Indicators of tourism demand
Travel propensity 
Net travel propensityRefers to the percentage of the populationthat takes at least one tourism trips in agiven period of timeGross travel propensityTotal number of tourism trips taken as apercentage of the population
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM12
TourismConceptsIndianInstitute ofTourism andTravelManagement
Travel propensitycalculations
Say,Out of a population of 10 m inhabitants
3.0m take one trip of one night or more 3.0 X 1 = 3.0 mt1.5m take two trips of one night or more1.5 X 2 = 3.0 mt0.4m take three trips one night or more0.4 X 3 = 1.2 mt0.2m take four trips of one night or more0.2 X 4 = 0.8 mtTotal5.1m take at least one trip= 8.0 mt
mt= million trips
 
3
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM13
TourismConceptsIndianInstitute ofTourism andTravelManagement
Travel propensitycalculations
Now,
Net travelpropensity
= ----------------------------------X 100Number of populationtaking at least one tripTotal population= ------X 100 = 51%5.110
Gross travelpropensity
= ----------------------------------X 100Number of total tripsTotal population= ------X 100 = 80%8.010
Travelfrequency
= -----------------------------------Gross travel propensityNet travel propensity= ------= 1.5780%51%
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM14
TourismConceptsIndianInstitute ofTourism andTravelManagement
Country Potential GenerationIndex (CGPI)
mt= million trips
Measure of a country’s potential togenerate trips
N
e
= number of trips generated by the countryN
w
= number of trips generated in worldP
e
= population of countryP
w
= population of world
CPGI = -----------N
e
/ N
w
P
e
/ P
w
An index of 1 indicates andaverage capability. Countrieswith CGPI more than 1generate more tourists
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM15
TourismConceptsIndianInstitute ofTourism andTravelManagement
Why tourism demand?
Consumer needConsumer perceptionof what will satisfyneedActual attractionsConsumer perceptionof the attractionsIf these twoagreeMotivation tovisit destination
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM16
TourismConceptsIndianInstitute ofTourism andTravelManagement
Tourism motivators
Egoenhancement
Ritual inversion
Pilgrimage
Religion
Health
Education
Perceivedauthenticity
Conventions/conferences
Cultural self-confidence
 Annual leave
Weekends
Flextime
Long serviceleave
Disposableincome
Transportsystems
Location
Climate
National promotion
Retail advertising
Wholesale marketing
Special events
Incentive schemes
Natural environment
Tourist facilities
Tourist attractions
VFR
Culture
Man-madeenvironment
Push FactorsFacilitatorsPull factors
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM17
TourismConceptsIndianInstitute ofTourism andTravelManagement
Ritual inversions
Geographical 
Cool climate toHot climateInlandtoCoastUrban toRuralPlains to MountainsSparse vegetationtoLush vegetation
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM18
TourismConceptsIndianInstitute ofTourism andTravelManagement
Ritual inversions
Physical/ mental 
Mundane toExcitementStressfultoTranquilActivitytoRelaxationModernto HistoricSeculartoReligiousSaving toSpendingFormal to InformalWorktoLeisureAlienationtoCommunication

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