rls263 5. tourism supply

law of demand

lower prices lead to higher quantities demanded and higher prices lead to lower quantities demanded

law of supply

lower prices discourage production while higher prices encourage production (the more profit you can make the more they’re gonna wanna supply it and vise versa)

market equilibrium

the quantity of a good that consumers wants to buy = the quantity that producers want to sell (fair prices + less waste!)

surplus

if the price is higher than equilibrium, the supply would be too much and they now have lots of extra.

shortage

if the price is lower than the equilibrium, the supply would be too less and they not have enough supply for the demand

______ drive prices towards equilibrium. in a surplus, prices are driven down in order to sell more, and in shortages, prices are driven up in order to sell less (consumers compete to buy goods)

market forces

shifts in demand

at every price, consumers want to buy more or less than before.

• increase in prices shifts curve to the right, increasing equilibrium price n quantity.

• decrease in prices shifts curve to the left, decreasing equilibrium price n quantity.

shifts in supply

at every price, producers are willing to supply more or less. ex. technological advances make it easier to produce, so they will produce more. therefore, supply goes up and it shifts the curve to the right. the equilibrium price would fall and the equilibrium amount sold would rise. if a natural disaster happened and they had less supply, equilibrium prices would rise and equilibrium quantity would lessen

supply

Tourism ____ is the result of those productive activities that involve the provision of goods and services required to meet tourism demand and which are expressed in tourism consumption.

we don’t want…

undersupply AND oversupply, but rather the perfect balance

who is involved with dealing with supply?

• Intermediaries and tour operators

• Transportation

• Visitor attractions

• Tourism accommodations and hospitality services

• Other tourism facilities (e.g., movie theatre, health and wellness centres…)

we can classify supply sides as three different categories:

1. public sector

2. private sector

3. non-profit / not for profit

why is supply important in tourism?

People, organizations, and firms depend on others in important ways to carry out their tasks and achieve their goals. They rely on key inputs from others in the form of various products and services, including material goods, personal and professional services, information and funds; they depend on others to use, transfer, transform, and combine their outputs into meaningful goods and services for others; they depend on regulators, communities and industry bodies to protect and sustain them and their workers; they depend on competitors to challenge and inform them about new possibilities and threats. 

tourism supply chain

All the goods and services that go into the delivery of tourism products to consumers.

• It includes all suppliers of goods and services, whether or not they are directly contracted by tour operators or by their agents… or suppliers (including accommodation providers).

• Tourism supply chains involve many components… bars and restaurants, handicrafts, food production, waste disposal, and the infrastructures that support tourism in the destination ”

• operates on a global scale

• different services work TOGETHER, and not one is ever fully in charge

• so many services depend on tourists + tourism!

supply chain management

a set of approaches utilized to efficiently manage the operations of the tourism supply chain within a specific tourism destination to meet tourist needs from the targeted source markets and accomplish the business objectives of different enterprises within the tourism supply chain

strategies that supply sides use to provide good tourist experiences

• collaboration

• cooperation

collaboration

a group of people comes together and works on a project in support of a shared objective, outcome, or mission.

cooperation

a group of people work in support of another’s goals. That there isn’t really a shared vision. (ex. could just mean that you've given me help on something I'm working on and that I'm ultimately responsible for.)