rls263 3. tourism demand

tourism demand

the quantity of the tourism product (i.e., a combination of tourism goods and services) that consumers are willing to purchase during a specified period under a given set of conditions for a particular destination (Song & Witt, 2000)

economic definition of demand

the quantity of a good that consumers are willing and able to purchase at various prices during a given time

the four approaches to tourism demand

• the amount of products that will be consumed at various prices

• actual levels of participation (helps expect future demand)

• the unsatisfied component of participation

• the desire for emotional and psychologically base experiences

the unsatisfied component of participation

the approach to tourism demand where companies are trying to realize, count and observe those who are unsatisfied based on their demand which helps them for future planning, designing, and tour operating

the desire for emotional and psychologically base experiences

the approach to tourism demand that helps us realize why people do or do not travel to certain areas

the five elements of tourism demand

• aggregate/effective/actual demand

• suppressed demand

• no demand

• substitution of demand

• displacement of demand

aggregate/effective/actual demand

an element of tourism demand. the aggregate (whole) number of tourists recorded in a given location or at a particular point in time.

suppressed demand

an element of tourism demand. those who cannot access tourism because of constraints. split into two categories:

1. Potential demand

• Individual factors. Are these the same people who would be inclined to travel if certain constraints were removed (constraints include lack of income, time)?

2. Deferred demand

• Demand for travel that is put off because of a scarcity of supply (e.g., a lack of hotel rooms where a person wants to travel to; transport difficulties; the weather is bad…)

no demand

an element of tourism demand. the population who have no desire to travel (AND who are unable to travel due to family commitments or illness, poverty, lack of time, or unwillingness to find time)

substitution of demand

an element of tourism demand. When demand for an activity is replaced by another form of activity, for example, staying in a hotel rather than camping

displacement of demand

an element of tourism demand. When demand is displaced to another destination (e.g., due to hosting an event like the Olympics, people choose to visit elsewhere due to crowding concerns).

factors influencing demand

• economic determinants

• social determinants

• political determinants

• environmental determinants (weather, temperature, natural disasters; common in nature based activities!)

• technological determinants (the more tech, the more OR less demand someone will have depending on the activity!)

seasonal influences on tourism demand

• internal

  • destination type and accessibility

  • structural factors

    • public and school holidays

  • natural factors

    • climate, temperature and daylight

• external

  • economic and political context

  • social and cultural context

  • business context

  • consumer context

  • unpredictable occurrences

  • unusual / unique occurrences (e.g., olympics, royal wedding)

seasonality

the pattern of demand for tourism, conditioned by climate, weather, daylight, price, fashion, tastes and the nature of the origin and destination area.

basically, tourism that people want at certain times / seasons because it only happens in certain seasons or times.

approaches to dealing with seasonality

• shutdown (shutdown the program)

• pricing (adjust the pricing to be maybe cheaper in times where the activity won’t be as good)

• product diversification (expanding the attractions, activities, or experiences to cater to different seasons)

• market diversification (expand appeal to attract different demographics or areas of visitors in the hopes more people will buy your packages)

• collaboration (collaborate with other managers and tourist workers to find a way to better accommodate for weather and season changes)