tourism chapter 3

tourism demand

leiper’s tourism system

• market demand identified is the outcome of activities & decisions made by individuals in generating regions

• makes tourist policy & forecasting possible

• provides info to help balance provision of S&D at destination

• allows industry to understand consumer behaviour & the tourism marketplace

3 parts of tourism demand

• economy: factors that affect willingness & ability to pay

• psychology: tourist motivation & behaviour (interaction between personality & the env)

• geography: total # of people who do or wish to travel to use tourist facilities outside usual env

types of tourism demand

• effective: actual # of participants in tourism (those who travel)

• suppressed: population who doesn’t travel (potential & deferred demand)

• none: those who don’t want to or can’t travel

gravity model

• used to analyse (forecast) tourist flows between generating markets & destinations

• based on newton’s law of gravity → greater mass of sending region or destination = greater flows

• main factor: distance (higher = lower flow)

push vs pull factors

• push: motivation to travel

  • population size, economic development

• pull: where you want to go

  • attractiveness, accessibility, relative price

law of demand

• demand: quantities an individual wants to & can purchase at diff prices at a given time

• law: higher price = lower quantity

• demand quantity = f(product price, alternatives price, income, sociological & demographic factors)

  • change in any of these factors will cause a shift in demand curve

market demand

• sum of all individual demand

• graphically: individual demand curves are added horizontally to obtain market demand curve

elasticity of demand

• measure of how buyers respond to changes in market conditions

• elastic: quantity is sensitive to price change (higher than 1)

• inelastic: quantity is not sensitive to price change (lower than 1)

• = % change in Qd / % change in P

  • % change using average of changes, not old - new

factors that determine elasticity of demand

• necessary goods (higher)

• availability of close substitutes

• market definition (wider = more inelastic)

• time horizon (greater elasticity in LP)

types of elasticity

• price

• income

  • normal good: income increase = demand increase

  • inferior good: income increase = demand decrease

  • = % change Qd / % change income

• cross-price

  • substitutes: increase in P product b = increase Qd for product A

  • complements: increase in P product b = decrease Qd for product A

  • = % change Qd product x / % change P product Y

tourism demand indicators

• propensity to travel

  • net PT: % of population that makes min 1 trip in a period

  • gross PT: total # of tourist trips / population

• frequency of travel

  • avg # of movements by travellers: gross PT / net PT

  • country’s potential generation index (CPGI) = (# trips generated by country i / # world trips) / (population country i / world population)

individual decision-making process

• tourist demand: result of individuals’ decisions to plan leisure activities

• differences in attitudes, perceptions, motivations, & images

motivations & types of tourists

• attitudes: learned predispositions, depend on perception of world

• perceptions: mental impressions of a destination

• motivators: internal impulses

• images: beliefs, ideas, & impressions related to products & destinations

what does analysis of consumption behaviour help us understand? (6)

• needs & reasons for purchase

• decision-making processes

• impact of promotional techniques

• possible perception of risks

• composition of the diff market segments

• how mgers can increase chances of success in marketing analysis

4 elements of decision-making process

• motivations

• destination image: affects image of product → enhances or reduces motivations

• roles & decision-making process: analysis that leads to diff typologies of tourists

• determinants of demand: economic, sociological, psychological factors

motivation in tourism

• motivate: make a person act in a certain way, or stimulate interest

• reasons that drive people to travel & that define the type of trip, places they go, & activites / attractions they enjoy

maslow’s hierarchy of needs (1970)

• model for understanding motivations

1. physiological: basic

2. safety: basic

3. belongingness & love: psychological

4. esteem: psychological

5. self-actualisation: self-fulfillment

dann model 1981

• model for understanding motivations

• push factor: travel is a reaction to the lack of things we want & don’t find in our usual environment

• pull factor: destination’s attributes are a response to the push of motivation

• motivation as fantasy → tourist travels to engage in behaviours that they can’t usually have

• motivation as an object: leisure, studies, friends, relatives

• motivational typologies: eg sunlust & wanderlust

• the tourist experience: authenticity

mcintosh, goeldner, richie model 1995

• model for understanding motivations

• 4 categories of motivation

1. physical: require physical performance

2. cultural: art & culture

3. interpersonal: interacting with people → visit family, friends, discovery, meet people

4. status & prestige

plog model 1974

• model for understanding motivations

• theory that classified US population into series of interrelated psychographic types

1. psychocentric: someone concerned with small problem areas of life

   1. conservative travel patterns

   2. prefer safe destinations, make frequent returns → repeaters

2. allocentric: someone adventurous & motivated to discover new destinations

   1. rarely return to same place twice → wanderers

tourist destination image

• image of the tourist & general image of destination are interrelated

• both influence if you like a destination or not

• image generates a pull effect

• important for competitiveness of a destination

• mental representation of beliefs, feelings, & impressions

gunn image types 1972

• organic: info that has not been deliberately directed by promotional advertising

  • individual forms a picture

  • non-tourist communications

• induced: deliberate promotion by orgs → marketing efforts & promotion of destination

4 stages in the development of an image

1. fantasy

2. decision to go on vacation

3. experience at the destination

4. post-image

main changes in tourism

• generalisation of Web 2.0 & social networks

• tourists also build destination image now

• current photo trend changed the construction of the tourist narrative

cohen classification of tourists, 1987

• divides travellers into 4 categories based on how they balance need for familiarity vs novelty

1. non-institutionalised: loosely attached to tourist establishments → exposed to host community

   1. drifter: no connection to tourism industry, spontaneous, immerse in culture

   2. explorer: independent organisation, reliable transport, comfortable accom

2. institutionalised: part of mass tourist group

   1. individual: more flexibility

   2. organised: low adventure, ready-made packages