Tourism product

 Tourism product

Tourism products are mainly service products or services that have several characteristics. For example, in business tourism, conference planning and management is a service offered by large hotels and convention centres. Fairs and festivals are events that are offered for enjoyment only at a particular time of the year and these are perishable and variable. In India, cultural attractions in the forms of dances and music can be seen and enjoyed. Other products which tourists consume like wildlife, and flora and fauna are natural products. Some of the characteristics are

Intangible

Unlike a tangible product, say, a motor car or refrigerator, no transfer of ownership of goods is involved in tourism. The product here cannot be seen or inspected before its purchase. Instead, certain facilities, installations, items of equipment are made available for a specified time and for a specified use. For example, a seat in an aeroplane is provided only for a specified time.

Psychological

A large component of tourism product is the satisfaction the consumer derives from its use. A tourist acquires experiences while interacting with the new environment and his experiences help to attract and motivate potential customers.

Highly Perishable

A travel agent or tour operator who sells a tourism product cannot store it. Production can only take place if the customer is actually present. And once consumption begins, it cannot be stopped, interrupted or modified. If the product remains unused, the chances are lost i.e. if tourists do not visit a particular place, the opportunity at that time is lost. It is due to this reason that heavy discount is offered by hotels and transport generating organisations during offseason.

Composite Nature

The tourist product cannot be provided by a single enterprise unlike a manufactured product. The tourist product covers the complete experience of a visit to a particular place. And many providers contribute to this experience. For instance, airline supplies seats, a hotel provides rooms and restaurants, travel agents make bookings for stay and sightseeing, etc.

Unstable Demand

Tourism demand is influenced by seasonal, economic political and others such factors. There are certain times of the year which see a greater demand than others. At these times there is a greater strain on services like hotel bookings, employment, the transport system, etc.

Fixed supply in the short run

The tourism product unlike a manufactured product cannot be brought to the consumer; the consumer must go to the product. This requires an in-depth study of users’ behaviour, taste preferences, likes and dislikes so that expectations and realities coincide for the maximum satisfaction of the consumer. The supply of a tourism product is fixed in the short run and can only be increased in the long run following increased demand patterns.

 

 Absence of awareness

When you buy a car, the ownership of the car is transferred to you, but when you hire a taxi you buy the right to be transported to a predetermined destination at a predetermined price (fare). You neither own the automobile nor the driver of the vehicle. Similarly, hotel rooms, airline tickets, etc. can be used but not owned. These services can be bought for consumption but ownership remains with the provider of the service. So, a dance can be enjoyed by viewing it, but the dancer cannot be owned.

Heterogeneous

Tourism is not a homogeneous product since it tends to vary in standard and quality over time, unlike a T.V set or any other manufactured product. A package tour or even a flight on an aircraft can’t be consistent at all times. The reason is that this product is a service and services are people based. Due to this, there is variability in this product. All individuals vary and even the same individual may not perform the same every time. For instance, all air hostesses cannot provide the same quality of service and even the same air hostess may not perform uniformly in the mRiskyorning and evening. Thus, services cannot be standardised.

The risk involved in the use of a tourism product is heightened since it has to be purchased before its consumption. An element of chance is always present in its consumption. Like, a show might not be as entertaining as it promises to be or a beach holiday might be disappointing due to heavy rain.

Marketable

Tourism product is marketed at two levels. At the first level, national and regional organisations engage in persuading potential tourists to visit the country or a certain region. These official tourist organisations first create knowledge of its country in tourist –generating markets and persuade visitors in these markets to visit the country. At the second level, the various individual firms providing tourist services, market their own components of the total tourist product to persuade potential tourists to visit that region.

Tourism Product is "a combination of tangible and intangible elements, such as natural, cultural and man-made resources, attractions, facilities, services and activities around a specific center of interest which represents the core of the destination marketing mix.

Travel was originally inspired by the need for surviving (food, shelter, and security), the desire to expand trade and quest to conquer. As the transportation system improved the curiosity for transforming the vast and virgin world into a close neighborhood created a new industry travel and tourism.

Types of Tourism

Tourism has two types and many forms on the bases of the purpose of visit and alternative forms of tourism. Tourism can be categorized as international and domestic tourism.

Tourism has two types and various forms. On the basis of the movement of people tourism categorized into two types. These are following as:

International Tourism

When people visit a foreign country, it is referred to as International Tourism. In order to travel to a foreign country, one needs a valid passport, visa, health documents, foreign.

Inbound Tourism

This refers to tourists of outside origin entering a particular country. When people travel outside their host/native country to another country, then it is called inbound tourism for that country where he/she is traveling. For example when a tourist from Indian origin travels to Japan then it is  Inbound tourism for Japan because foreign tourist comes to Japan.

Outbound Tourism

This refers to tourists traveling from the country of their origin to another country. When tourists travel a foreign region than it is outbound tourism for his own country because he/she is going outside their country. For example when a tourist from India travel to Japan then it is outbound tourism for India and Inbound tourism for Japan.

Domestic Tourism

The tourism activity of the people within their own country is known as domestic tourism. Traveling within the same country is easier because it does not require formal travel documents and tedious formalities like compulsory health checks and foreign exchange. In domestic tourism, a traveler generally does not face many language problems or currency exchange issues.

Forms of Tourism

Tourism has various forms on the basis of the purpose of visit and alternative forms. These are further divided into many types according to their nature. Forms of tourism are following as :

Some most important forms of tourism are following as:

Adventure Tourism

Atomic Tourism

Bicycle Tours

Beach Tourism

Cultural Tourism

Ecotourism

Geotourism

Industrial Tourism

Medical Tourism

Religious Tourism

Rural Tourism

Space Tourism

Sports Tourism

Sustainable Tourism

Virtual Tourism

War Tourism

Wildlife Tourism

Classification of Tourism

Tourism can be classified into six distinct categories according to the purpose of travel. These are following as:

1) Recreational: Recreational or leisure tourism takes a person away from the humdrum of everyday life. In this case, people spend their leisure time at the hills, sea beaches, etc.

2) : Cultural tourism satisfies cultural and intellectual curiosity and involves visits to ancient monuments, places of historical or religious importance, etc.

3) Sports/Adventure: Trips have taken by people with a view to playing golf, skiing and hiking, fall within this category.

4) Health: Under this category, people travel for medical, treatment or visit places where there are curative possibilities, for example, hot springs, spa yoga, etc.

5) Convention Tourism: It is becoming an increasingly important component of travel. People travel within a country or overseas to attend conventions relating to their business, profession or interest.

6) Incentive Tourism: Holiday trips are offered as incentives by major companies to dealers and salesmen who achieve high targets in sales. This is a new and expanding phenomenon in tourism, These are in lieu of cash incentives or gifts, Today incentive tourism is a 3 billion dollar business in the USA alone.

Nature of Tourism

Tourism as a socio-economic phenomenon comprises the activities and experiences of tourists and visitors away from their home environment and serviced by the travel and tourism industry and host destination. The sum total of this activity experience and services can be seen as a tourism product.

The tourism system can be described in terms of supply and demand. Tourism planning should strive for a balance between demands and supply. This requires an understanding not only of market characteristics and trends but also of the planning process to meet the market needs.

The tourism system is both dynamic and complex due to many factors linked to it and because of the existence of many sectors contributing to its success. These factors and sectors are linked to the provision of the tourist experience and generation of tourism revenue and markets.

The dynamic nature of tourism system makes it imperative to scan the external and internal environment of the destinations on a regular basis so as to makes changes when necessary to ensure a healthy and viable tourism industry.

Importance of Tourism

Tourism and hospitality, which are inextricably linked to each other, are among the major revenue-earning enterprises in the world. They happen to be among the top employers too. There has been an upmarket trend in tourism over the last few decades as travel has become quite common. People travel for business, vacation, pleasure, adventure or even medical treatments.

Tourism can contribute to the economic growth of a country in the followings ways:

Employment Generation

It creates a large number of jobs among direct services providers (such as hotel, restaurants, travel agencies, tour operators, guide and tour escorts, etc.) and among indirect services providers (such as suppliers to the hotels and restaurants, supplementary accommodation, etc.)

Infrastructure Development

Tourism spurs infrastructure development. In order to become an important commercial or pleasure destination, any location would require all the necessary infrastructure, like good connectivity via rail, road, and air transport, adequate accommodation, restaurants, a well-developed telecommunication network, and, medical facilities, among others.

Foreign Exchange

The people who travel to other countries spend a large amount of money on accommodation, transportation, sightseeing, shopping etc. Thus, an inbound tourist is an important source of foreign exchange for any country.

Impacts of Tourism

Establishing or developing a tourism industry involves expenditure as well as gains, costs, and benefits. If these impacts are taken into consideration from the outset of planning, strengths and opportunities can be maximized while weaknesses and threats can be minimized.

Economic Impacts

Tourism activities impact the economy of the country as well as the local economy of the destination.

Economics Benefits

Tourism generates local employment, directly in the tourism sector and in support and resource management sectors.

Tourism stimulates profitable domestic industries, hotels and other lodging facilities, restaurants and food services, transportation systems, handicrafts, and guide services.

Tourism generates foreign exchange for the country and injects capital and new money into the local economy.

Tourism helps to diversify the local economy.

Improved tourism infrastructure.

Increase tax revenues from tourism.

Economic Costs

Higher demand created by tourism activity may increase the price of land, housing and a range of commodities necessary for daily life.

Demands on health services provision and police service increase during the tourist seasons at the expense of the local tax base.

Social Impacts

Tourism also affects the society of the destination in good as well as bad ways. It benefits and costs the local communities.

Social Benefits

The quality of a community can be enhanced by economic diversification through tourism.

Recreational and cultural facilities created for tourism can be used by local communities as well as domestic/international visitors.

Public spaced may be developed and enhanced through tourism activity.

Tourism Enhances local community’s esteem and provides an opportunity for greater understanding and communication among people of diverse background.

Social Costs

Rapid tourism growth can result in the inability of local amenities and institutions to meet service demands.

Without proper planning and management, litter, vandalism, and crime often accompany tourism development.

Tourism can bring overcrowding and traffic congestion.

Visitors bring with them material wealth and apparent freedom. The youths of the host community are particularly susceptible to the economic expectations these tourists bring and can result in complete disruption of traditional community ways of life.

The community structure may change, e.g. community bonds, demographics, and institutions.

The authenticity of the social and cultural environment can be changed to meet tourism demands.

Cultural Impacts

Tourism activities also affect the culture of the host country. There are many positive and negative cultural impact of tourism.

Cultural Benefits

Tourism can enhance local cultural awareness.

Tourism can generate revenue to help pay for the preservation of archaeological sites, historic buildings, and districts.

Despite criticism about the alteration of cultures to unacceptable levels, the sharing of cultural knowledge and experience can be beneficial for hosts and guests of tourism destinations and can result in the revival of local traditions and crafts.

Environmental Impact

Tourism impacts on the environment in positive as well as negative way. These impacts are following below.

Environmental Benefits

Parks and nature preserves may be created and ecological preservation supported as a necessity for nature-based tourism.

Improved waste management can be achieved.

Increased awareness and concern for the environment can result from nature-based tourism activities and development.

Charecterstatics Of Tourism Products

By now, you must have understood what a tourism product is. Now let us look at some of its characteristics:-

1) Intangible: Tourism is an intangible product means tourism is such kind of product which can not be touched or seen and there is no transfer of ownership, But the facilities are available for specified time and for a specified use. For e.g. a room in the hotel is available for a specified time.

2) Psychological: The main motive to purchase tourism product is to satisfy the psychological need after using the product, by getting experience while interacting with a new environment. And experiences also motivate others to purchase that product.

3) Highly Perishable: Tourism product is highly perishable in nature means one can not store the product for a long time. Production and consumption take place while a tourist is available. If the product remains unused, the chances are lost i.e. if tourists do not purchase it.

A travel agent or tourism operator who sells a tourism product cannot store it. Production can only take place if the customer is actually present. And once consumption begins, it cannot be stopped, interrupted or modified. If the product remains unused, the chances are lost i.e. if tourists do not visit a particular place, the opportunity at that time is lost. It is due to tourism reason that heavy discount is offered by hotels and transport generating organizations during the offseason.

4) Composite Product: Tourist product is a combination of different products. It has not a single entity in itself. In the experience of a visit to a particular place, various service providers contribute like transportation The tourist product cannot be provided by a single enterprise, unlike a manufactured product.

The tourist product covers the complete experience of a visit to a particular place. And many providers contribute to the tourism experience. For instance, airline supplies seats, a hotel provides rooms and restaurants, travel agents make bookings for stay and sightseeing, etc.

5) unstable demandTourism demand is influenced by seasonal, economic political, and other factors. There are certain times of the year that see greater demand than others. At these times there is a greater strain on services like hotel bookings, employment, and the transport system, etc.