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Tourism Demand Trends

Tourism Demand Trends

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Published by Vikas Kumar

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Published by: Vikas Kumar on Aug 27, 2010
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Tourism concepts
Dr. Nimit Chowdhary
Professor
Indian Institute of Tourism and TravelManagement
Tourism demandtrends
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM2
TourismConceptsIndianInstitute ofTourism andTravelManagement
Changing face of travelconsumer
More affluent, measured in disposableincome per capita, ownership of propertyand household facilities.
Better educatedand more interested incontinuing education.
More healthyand interested in moreactive pursuits.
Older, with a particular shift in thenumber and attitudes of the more activeover-fifties.
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM3
TourismConceptsIndianInstitute ofTourism andTravelManagement
Changing face of travelconsumer
More leisuredin terms of hours of workand holiday entitlement, having regardalso to early retirement.
More traveled, for work and business aswell as for holidays and leisure,increasing numbers with frequentinternational travel experience.
More exposedto the media andinformation generally
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM4
TourismConceptsIndianInstitute ofTourism andTravelManagement
Changing face of travelconsumer
More computer literatewith ownership ofpersonal computers (PCs) and access tointernet growing exponentially.
More heterogeneousandindividualisticin their demands and expectations.
More culturally diversein terms of ethnicorigin as well as their range of lifestylechoices.
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM5
TourismConceptsIndianInstitute ofTourism andTravelManagement
Determinants of tourismdemand
Economic factors and comparative prices
Demographic, including education
Geographic
Socio-cultural attitudes to tourism
Mobility
Government/ regulatory
Media communications
Information and communicationtechnology
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM6
TourismConceptsIndianInstitute ofTourism andTravelManagement
Economic factors
30 major countries of origin accountedfor over 90% of world traveling spending
Top 10 alone account for 2/3
rd
ofspending and nights.
These are countries with highest percapita income.
Developed and growing economies alsosustain business travel and trips (morethan 50%)
 
2
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM7
TourismConceptsIndianInstitute ofTourism andTravelManagement
Economic factors
Relationship between changes in realdisposable incomes and volume of tripsand expenditure away from home.
Increase in real incomes since 1990shas led to increase in expenditure ontravel and tourism (income elasticity) .
China and India are fast emerging astourism markets and suppliers owing torapid economic growth
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM8
TourismConceptsIndianInstitute ofTourism andTravelManagement
Economic factors
Comparative prices are a majordeterminant of volume of demand.
Price is cost to customers in terms ofmoney, time and effort.
Spending will depend upon comparativeprice and disposable income of tourist.
East Asia, China and BRIC are thereforeincreasingly attracting more tourists.
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM9
TourismConceptsIndianInstitute ofTourism andTravelManagement
Demographic factors
Developed world-one-and two-personhousehold, late marriages, with fewerchildren
Divorce, single parent,
Small households means more households
Affluent old age people (26% Europeans areover 50 years of age)
Developing world-greater womeninvolvement, two-income households,more disposable incomes
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM10
TourismConceptsIndianInstitute ofTourism andTravelManagement
Demographic factors
Rise in life expectancy
Greater proportion of older population
New demand for leisure and travel
Health care and nursing
Quality of life
Structural shifts in communities
Development of new towns and cities
Education-higher the education, morethe amount of travel
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM11
TourismConceptsIndianInstitute ofTourism andTravelManagement
Geographic factors
Climatic and scenic attractions
Willingness and affordability to demanddestination of choice.
Urban areas generate more tourismcompared to rural areas-for multiplereasons
Geographical pockets of heritage, cultureand arts offer tourism products
Eco-tourism, and ecological constructsas tourism products
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM12
TourismConceptsIndianInstitute ofTourism andTravelManagement
Social factors
Increased no. of women in work force
Working women and resulting two-income households
Quality of life
International mobility leads to moresophisticated consumer tastes
Greater complexity of life
Increased competition in life
 
3
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM13
TourismConceptsIndianInstitute ofTourism andTravelManagement
Changing attitudes
Attitudes towards tourism are a subset ofwider view on the desired quality of life andhow to achieve it.Examples of attitudes in America andEurope
Therapeutic value in lying on the beechand sun
holidays are ‘rights’and necessities forrelieving stress rather than luxuries
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM14
TourismConceptsIndianInstitute ofTourism andTravelManagement
Changing attitudes
Examples of attitudes in America andEurope
Longer holiday entitlement in twentiethcentury has lead to consumers takingseveral holidays in a year
Scandinavia & N. Europe-people having asecond home
That holiday products should beenvironmentally sustainable
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM15
TourismConceptsIndianInstitute ofTourism andTravelManagement
Personal mobility factor
Superior roads and infrastructure
More people having cars and fourwheelers
Most hotels, nearly all self-cateringestablishments, restaurants, and greatmajority of visitor attractions andentertainment in America and Europe aredependent on travelers by car
Congestion has increased andgovernments are favoring public transport
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM16
TourismConceptsIndianInstitute ofTourism andTravelManagement
Government/ regulatoryframework
All governments impose laws andregulations to safeguard health andsafety of their populations and to controlthe use of land and buildings; mostimpose penalties for non-compliance
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM17
TourismConceptsIndianInstitute ofTourism andTravelManagement
Government/ regulatoryframework
Governments intervene:
To ensure fair competition betweensupplier-check monopolistic tendencies
To ensure that customers have choicesand rights against suppliers
To influence such market patterns asgovernments control-timing of holiday
To ensure that proposed projects do notdamage the environment
September 17, 2007(C) Prof. Nimit Chowdhary @IITTM18
TourismConceptsIndianInstitute ofTourism andTravelManagement
Government/ regulatoryframework
Politico-legal changes:
Governments creating infrastructure forservices (led by EU)
Internationalization
Governments consciously (ratheraggressively) promoting tourism

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