Tourism in Business

(TRS041)
Aishath Shany Habeeb|MNUBS|HC
shany.habeeb@mnu.edu.mv
The Demand for
Tourism
Chapter Two

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Tourist Needs and Wants

‘Need’ suggests that the products we are asking for are

necessities for our daily life, but this is clearly seldom the
case with these products.

People are unaware of the needs or reluctant to admit it.

Needs are innate or learned

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General and Specific Motivation

General motivation: aimed at achieving a broad objective,

such as getting away from the routine and stress of the
workplace in order to enjoy different surroundings and a
healthy environment

Specific motivation: aimed at achieving a specific objective

such as travelling to a specific destination

Example: visiting Swiss Alps

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Segmenting the Tourism Market

• Geographic variables
• Demographic variables
• Psychographic variables
• Behavioral variables

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Consumer Process in Tourism Industry (AIDA Model)

• Recognizes that marketing aims to move the consumer

from a stage of unawareness – of either the product
(such as a specific destination or resort) or the particular
brand (such as an individual package tour company or a
hotel) – through a number of stages, to a point where
the consumer is persuaded to buy a particular product
and brand

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Consumer Process in Tourism Industry (AIDA Model)

• The process of making choices involves constant

comparison, weighing up one destination against others,
estimating the benefits and the drawbacks of each as a
potential holiday destination

• As this process goes on, three things are happening:

• Image

• Attitude

• Risk

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Consumer Process in Tourism Industry (AIDA Model)

• Image

• Images are built around the unique attributes that a

destination can claim

• The more these help to distinguish it from other similar

destinations, the greater the attraction for the tourist

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Consumer Process in Tourism Industry (AIDA Model)

• Attitude

• We may have a negative image of the destination, we

may still retain a positive attitude towards going there

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Consumer Process in Tourism Industry (AIDA Model)

• Risk

• All holidays involve some element of risk

• The extent to which risk is a product of

personality is an issue that has been
addressed by a number of tourism
researchers, most notably Stanley Plog.

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Consumer Process in Tourism Industry (AIDA Model)

• Risk (Plog’s Tourist Types)

• Stanley Plog attempted to determine the relationship

between introvert and extrovert personalities and
holiday choice

• Plog’s theory attempted to classify the population of

the United States by distinguishing between those
judged to be:
• Allocentrics

• Mid-centrics

• Psychocentrics
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Consumer Process in Tourism Industry (AIDA Model)

• Risk (Plog’s Tourist Types)

• Allocentrics

• Those seeking variety, self-confident, outgoing and

experimental

• Would be disposed to seek new experiences, in

more exotic destinations, travelling independently

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Consumer Process in Tourism Industry (AIDA Model)

• Risk (Plog’s Tourist Types)

• Mid-centrics

• Most travelers fall under this category

• Seek well known established destinations

• May go to destination populated by allocentrics

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Consumer Process in Tourism Industry (AIDA Model)

• Risk (Plog’s Tourist Types)

• Psychocentrics

• Tend to be more concerned with themselves and

the small problems of life

• Often anxious and inclined to seek security

• Would be more inclined to return to resorts with

which they are familiar, stay closer to home and use
a package holiday for their travel arrangements

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Decision Styles Used by Tourists

Extensive Problem Solving

Information is sought about a wide range of products, each

of which is evaluated and compared with similar products

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Decision Styles Used by Tourists

Limited Problem Solving

No patience to explore a wide variety of products, so

deliberately restrict their options

The aim to is to satisfy rather than buying the best possible

option

Benefit of saving time

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Decision Styles Used by Tourists

Routinized Response Behavior

Choices changes little relatively over time

Common pattern among brand loyal consumers

Previous experiences which the consumers are content

with lead to repetition

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Decision Styles Used by Tourists

Impulse

Typical for products costing little, but known among holiday

purchasers too

A pattern of behavior that is increasingly prevalent (to

dismay of tour operators)

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The Impact of Fashion & Taste on Tourist Decisions

• Tourism enterprises suffer from the effects of changing

customer taste as fashion changes and opinion leaders
find new activity to pursue

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Motivation for Business
Travellers
Business travelers in general are less price sensitive and
more concerned with the status

Motivated principally by the need to complete their travel

and business dealings as efficiently and effectively as
possible within a given time-frame

Consider speed of transportation and convenience,

punctuality, reliability and frequency of the carriers

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Motivation for Business
Travellers
Often short notice reservations

Expects flexibility to change travel arrangements at minimal

notice and are ready to pay premium for such privilege

Travel needs to be arranged during weekdays

May prefer a specific carrier to benefit from frequent flyer

programs

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Facilitators

• Facilitators can be referred to all the factors that makes

it possible for prospective tourists to indulge in their
desires.

• Example of facilitators: money, time, favorable exchange

rates, friendly locals speaking the language of the
tourists, easier entry etc

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Factors Influencing Changes in Tourist Demand

Factors that cannot be predetermined

Include changes influenced by economic or political

circumstances, climate and natural or artificial disasters

Factors that can be predetermined

Include cultural, social and technological changes

developing in society

Time to adapt tourism products to meet new needs and

expectations.

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Factors Influencing Changes in Tourist Demand
WAR

The single greatest threat to foreign travel

Example: Millions of tourists visited the former Yugoslavia

every year during the 1980s, but this market virtually
disappeared in the 1990s when civil wars broke out

War Spillover Hurts Lebanon Tourism

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Factors Influencing Changes in Tourist Demand

THREAT OF TERRORIST ATTACKS

Actual or perceived risk, that has inhibited global travel

Will Fear of Terror Attack Affect Tourism

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Factors Influencing Changes in Tourist Demand

DISEASES

Deadly diseases impact tourism demand

Ebola Affecting Tourism

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Factors Influencing Changes in Tourist Demand

CLIMATE CHANGE

Contributes to natural disasters which affect tourist

destinations globally

Natural Disaster Trouble Queensland Tourism Sector

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Future Patterns of Tourism
Demand
Increase in spending power of women and earlier
maturation of children leads to demand for more adult
holidays

Children influence travel decision and travel more with

friends

Senior citizens- growing market, more adventurous, spend

on long-haul and cruise holidays

Travelers of all kinds are now both sophisticated and

demanding

Market for short-break holidays of between one and three

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nights has also expanded
Future Patterns of Tourism
Demand
Dynamic packaging: where agents and operators put
together individual elements of the package, usually by
searching websites

Special interest holidays now cater for the widening range

of hobbies of a leisure-orientated society

The rising numbers of complaints forced companies to

reconsider value for money and quality assurance

Self-catering has become increasingly popular

Increase in second home ownership

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