Tourism

Tourism
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Introduction
Since the early 1950s the growth of tourism both domestically in the
developed countries and internationally has been phenomenal in its scale,
and remarkably resilient to periodic economic and political adversity.
The number of international arrivals, for example has shown an evolution

from a mere 25 million international arrivals in 1950 to an estimated 806
million in 2005, corresponding to an average annual growth rate of 6.5%
(UNWTO, 2008).
Given the dominance and drive of the private sector in the development
of tourism and the growth in the services which support this, a business
management approach to tourism studies has evolved.
Characteristics and managerial challenges
Intangibility .
• To overcome the purchasing uncertainties , managers attempt to create some form of tangible offering
that customers can relate to such as DVD demonstrating accommodation, rooms , brochures on the
internet so as to serve the customer a new experience economy.
Inseparability .
• The production and consumption of services are inseparable. To take advantage of an air flight both the
traveler and means of transport must make the journey at the same time . At the reception desk , the
customer will know , if the receptionist is rude and in such a case we can loose a customer.
Interdependence .
• Tourism comprises 5 sectors: accommodation, attraction, transport , travel, organizers and destination
organizers. Some organizations are operated for profit whereas other as a museum or national park are
non commercial basis.
• Accommodation Sector: Hotels , • Attraction sector:
Guesthouses, farmhouses, villas , Theme parks, zoos,
marinas etc heritage sites,
gardens
Airlines , Railways
Shipping bus coach
lines operators
Car rental Ground

operators handlers
airports etc
• Travel organizers sector: Tour • Destination
operators , wholesalers, Organization sector:
brokers, retails travel agents National , regional, local
tourist offices.
Associations etc.
Tourism : Business based perspective
• The growing demand for independent non packaged holidays,
• The growing demand for choice and flexibility
• Information technologies such as computer reservation systems and the internet
are rapidly diffusing and allowing customers to deal directly with the companies
and agents
• Increase in environmental planning and control of tourism.
• Increase segmentation of travel markets to cater for differing lifestyle.
Strategic Management Framework
Revenue
Growth
Employees Service concept Customers
• Workplace design • Quality and productivity • Attractive value service
• Selection n development improvements yields desined n delivered to meet
• Rewards and recognition ,higher service quality and targeted customers needs
• lower cost • Lifetime value retention ,
Adequate to serve
repeat business referal
customers
• Information and comm.
Strategic Marketing for competitive
advantage
• Market Segmentation: When the possible range of segments have
been identified and the characteristics of each of the segments has
been analyzed, target using criteria such as market size, market
growth, and how easy it is to access segments.
• Product positioning: Tourism strategists and marketers must seek to
match the attributes of their product and buyers perceptions of those
attributers, with the needs and priorities of the customer.
Sustainable Development Goal
• As a driver for jobs creation and the promotion of local culture and
products
• Increase [by 2030] the economic benefits to Small Island developing
States and least developed countries.
• Tourism activities promote environmental awareness, conserve and
protect the environment, respect wildlife, flora, biodiversity,
ecosystems and cultural diversity, and improve the welfare and
livelihoods of local communities.
Recommendations
• Mass tourism being replaced by mass customisation in an industry that has to
cater for ever more discerning and experienced consumers;
• Increasing polarisation as companies have to make the strategic choice to
become complex vertically, horizontally or in some cases diagonally integrated
organizations
• the privatisation of state owned companies, and the removal foreign ownership
restrictions, all of which serve to lower entry and exit barriers in then industry
• Increasing emphasis on collaborative strategy through the formation of strategic
alliances, franchising and the separation of ownership of tourist assets
Thank You!!

Tourism

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Tourism

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Tourism

The number of international arrivals, for example has shown an evolution

Car rental Ground

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