Bachelor's Degree in Tourism & Hospitality Management

28006 – Tourism Market

2.1. Individual and Market Tourism Demand

Lecturer: Jorge Peralta

jorge.peralta@iqs.url.edu
 2.1. Individual and Market Tourism Demand

2.1. INDIVIDUAL AND MARKET DEMAND

- INDIVIDUAL TOURISM DEMAND AND FACTORS

- FAMILY LIFE CYCLE

- MARKET TOURISM DEMAND

Pie de página
 2.1. Individual and Market Tourism Demand

INDIVIDUAL TOURISM DEMAND

• Individual right to travel

• UN Universal Declaration of Human Rights (1948)
• UNWTO Global Code of Ethics for Tourism (1999)

• Individual behavior (Uysal, 1998)

• Economic factors
• Social-psychological factors
• Exogenous factors

• Enables and Barriers

Pie de página
 2.1. Individual and Market Tourism Demand

Pie de página
Pie de página
 2.1. Individual and Market Tourism Demand

INDIVIDUAL TOURISM DEMAND

• Enables and Barriers

• From the World Tourism Barometer (PPT version) Volume 20 · Issue 5

· September 2022 UNWTO Tourism Market Intelligence and
Competitiveness Department (see Moodle) find enables and barriers
that influence tourism demand.

Pie de página
 2.1. Individual and Market Tourism Demand

FAMILY LIFE CYCLE (FLC)

• FLC Elements through the life

• Time discretion
• Income discretion

• FLC Ages
• Youth
• Middle Age
• Elderly

• FLC and Marketing Segmentation

Pie de página
 2.1. Individual and Market Tourism Demand

Pie de página
 2.1. Individual and Market Tourism Demand

FAMILY LIFE CYCLE: YOUNG TRAVELER

• When childhood are parents’ influencers.
• When teenagers and young: low cost, self-catering
accommodation.
• Spends more than those in other travel sectors.
• Open seasonality.
• 4 times longer travelling.
• Long length of stay.
• Revenues for locals.
• Resilient to economic downturns.
• Trend-setters.
• Digital communicators
• Environmental leaders

Pie de página
 2.1. Individual and Market Tourism Demand

FAMILY LIFE CYCLE: YOUNG TRAVELER. FIGURES & NUMBERS

Pie de página
 2.1. Individual and Market Tourism Demand

FAMILY LIFE CYCLE: SENIOR TRAVELER

• Active and mobile group at 50’s, demanding both domestic and

international travel
• Physical health and financial resources as barriers (nearly half of
the Europeans aged 65+ who did not make tourism trips mentioned health reasons).
• Older people travelled more in the ‘shoulder season’(i.e. the travel
period between peak and off-peak seasons, with a less pronounced summer peak).
• Older people participate less in tourism.
• Senior visit more often relatives and friends
• Loss of partners.
• Hotel based travel.
• Domestic preference.

Pie de página
 2.1. Individual and Market Tourism Demand

FAMILY LIFE CYCLE: SENIOR TRAVELER. FIGURES AND NUMBERS

Pie de página
 2.1. Individual and Market Tourism Demand

MARKET TOURISM DEMAND

• Elasticity concept

• Individual Demand Elasticity

• Market Demand Elasticity

Pie de página
 2.1. Individual and Market Tourism Demand

MARKET TOURISM DEMAND

• Elasticity of Demand:

“The responsiveness of demand to change

in prices (price elasticity)
or income (income elasticity)”

Pie de página
 2.1. Individual and Market Tourism Demand

Pie de página
 2.1. Individual and Market Tourism Demand

MARKET TOURISM DEMAND

• Factors affecting Demand

a) Price
b) Preferences
c) Price of complements
d) Price of substitutes
e) Income
f) Expectations
g) Population

https://www.youtube.com/watch?v=Enz6z9jGmsk

Pie de página
 2.1. Individual and Market Tourism Demand

MARKET TOURISM DEMAND

• Elasticity factors

* Economic
* Technological
* Demographical
* Cultural
* Political
* Individual perception of destination

https://www.youtube.com/watch?v=2_IwD5wRogQ

Pie de página
 2.1. Individual and Market Tourism Demand

MARKET TOURISM DEMAND

• Elasticity factors
* Political

Pie de página
 2.1. Individual and Market Tourism Demand

MARKET TOURISM DEMAND

• The Demand Curve

* Shape of the curve

* Law of Demand
* Substitution effect
* Income effect

https://www.youtube.com/watch?v=IqW4vd_98vM

Pie de página
 2.1. Individual and Market Tourism Demand

MARKET TOURISM DEMAND

Quantity demanded Vs. Demand

• Change in Quantity Demanded
• Change in Demand
https://www.youtube.com/watch?v=M5RWu25M9BI

Market Demand
• Market Demand Schedule
• Market Demand Curve
• Shift in M.D.C.
https://www.youtube.com/watch?v=guKXcOtJExc

Pie de página
 2.1. Individual and Market Tourism Demand

Pie de página
 2.1. Individual and Market Tourism Demand

• SHORTS of Today

CPI (Consumer Price Index)

FLC
GNP
WYSE
American Spring Break
Ceteris paribus
Elasticity of demand
Empty nest
Staycation
Senior Traveler
Triple bottom-line

Pie de página
Questions?