In the international tourism industry, the tourist is the consumer. An individual must be traveling outside of his or her home country for a period of time lasting less than one year (Socci, 2016). The consumer group encompasses several different segments, as tourism is not limited to leisure. Rather, there are several motivations for traveling abroad and partaking in international tourism. Motivations for traveling internationally include leisure, business, family matters, and seeking of medical treatment (2016). Recall that international tourism accounts for not only the act of traveling abroad, but also the activities of consumers within the borders of a foreign nation. Consumers who travel for different reasons consume differently. For …show more content…
If prices rise for international tourism, consumers will flock to domestic tourism. Overall, international tourism is elastic because it is a normal good and there are several substitutions. Youth tourism, however, is less elastic. Young people are less sensitive to increases in price because economic downturns encourage them to seek alternative career paths, which offsets high prices (2015).
Consumer behavior is defined as “all decisional acts performed individually or at a group level… containing decision processes that precede and influence these acts” (Marin, 2013).” There are two main types of motivation, internal and external. Consumer behavior is more predictable based on external factors, such as demographic characteristics. One can predict travel patterns based on age, gender, socioeconomic status, and other characteristics because these factors are measurable. Internal, or endogenous factors, also contribute to decision-making and behavior, but are not outwardly apparent or measurable. Marin demonstrates this through the example of farm tourism, which is travel based on agriculture or the production of agricultural goods (2013). Certain consumers are attracted to farm tourism because the “country life” is appealing (2013). Endogenous factors can be purely aesthetic, as in this example, and entirely unrelated to demographic factors. As in any market, consumers are seeking to maximize individual utility, and internal and
The demand for hotel rooms for people planning a vacation is price elastic. The choice of a different hotel can be made if the price of the hotel increases or if it is too expensive for the vacationer.
In this document I am going to be looking at factors that affect both inbound and domestic tourism deciding to travel to the UK or travel within the UK. Some examples of factors that I will be reviewing include the following; health, safety and security, accessibility, marketing campaigns, availability of products and services, quality of good and services, economic recession in the UK/and or tourist generating countries, exchange rate, travel restrictions, emerging of new markets, competition from other destinations and finally weather.
Hoyer, W. D., MacInnis, D. J., & Pieters, R. (2012). Consumer Behavior, 6e, 6th Edition.
Which of the following would be internal (“push”) factors in terms of influencing people’s decisions to travel?
Tourism data indicates that there will be a shift in international visitor demographics over the next 8 years (Appendix 14). Primary research has not provided sufficient information to draw conclusions about how this change in the origin of international tourists would impact pricing expectations see (Appendix 13) for further recommendations.
When the UK economy is doing well, its pound sterling is strong. However, having a strong pound actually discourage visitors from overseas because when they exchange their money in pound they will be getting less money, so it make visiting UK expensive and it deter inbound visitor from visiting UK.
Within travel and tourism inbound and domestic tourism are frequently changing, there are many internal and external factors which have a major impact and contribute to these changes. In this assignment I am going to analyse 3 internal and 3 external factors which affect the travel and tourism industry.
Economic factors include the operation in tourism and hospitality industry. Such factors can influence the expenses and revenues of the organisation that are working in tourism and hospitality industry. The prices of raw material, inflation rate and product prices also impact the industry. Exchange rates and rate of interest greatly influences the industry. The financial recessions all around the world has led to reduce the purchasing power of the tourists and customers. Thus, therefore, the overall revenues generated from tourism and hospitality industry impacts the financial
Tourism plays a vital role in economic development in most countries around the world. The industry has not only direct economic impact, but also significant indirect and influential impacts. There is agreement among experts that the travel and tourism sector is the fastest growing of global economy. According to the latest UNWTO World Tourism Barometer, international tourism receipts surpass US$ 1 trillion in 2011, growing about 3.8%up from 2010 (WTO, 2012).
With the passage of time traveling industry has emerged as one of the most profitable and lucrative industries globally. This can further be demonstrated from the fact that traveling industries today are just not localized to providing their customers with tourism related facilities but along with this they also ensure that their customers make use of all possible facilities and leisure resources through which their clients can enjoy the most memorable trip ever. In addition to this it is also important to mention that the recent economic slump developed serious repercussions upon the development of the travel industry. It was estimated that in the year 2008 international travel
The social and cultural influences on business vary from country to country however it is important that such factors are considered and include demographic and cultural aspects. These factors affect customer needs and the size of potential markets. Demographic changes have resulted in the development of the ‘grey’ market who are spending more on leisure and travelling. Lifestyles, tastes and fashions are all changing; customers require opportunities to visit new and interesting, often long-haul, and destinations.
Another aspect of impact of tourism on a country’s economy is that it facilitates the expansion of the market of goods and services. Foreigners come to a country willing to spend money on different goods and services, thus increasing the amounts of sales. This is a great chance for producers and service providers to receive larger profits. This concerns not only hoteliers, tour operators, and souvenir shops owners. Public transportation, retail stores of different kind, restaurants, and cafes benefit from international tourism. Obviously, if these industries are in demand, businesses will be expanding. On the one hand, it means that more money is paid to the budget. On the other hand, profits generated by the owners are spent inside the country, affecting almost all the fields of the
There may be several purposes for business travelers to travel. Trade, meeting, convention and exhibition can be one of those travel purposes. However, business people also consume similar products and services as general tourists do. They would also spend their money on entertainment and recreation while they are at their destinations. Some unique characteristics of business tourists can be found as following:
The Travel and Tourism industry is still one of the largest single businesses in world commerce and its importance is widely recognized. The tourism industry is now one of the largest sectors earning foreign exchange. In the face of many benefits, many countries have started assigning due weight age to the tourism industry in their national development agenda. Tourism is an industry that operates on a massively broad scale: it embraces activities ranging from the smallest sea-side hotel; to air-lines, multi-national hotel chains and major international tour operators. Originally, non-traditional industries such as tourism emerged as a solution to strike a balance between ecology and industry
Possibly the most challenging concept in the marketing is to deal with understanding the buyer behaviour. Consumer Buying Behaviour refers to the buying behaviour of the final customers, and households who buy goods and services for personal consumption. It is fascinating but different area to research and this is particularly relevant in the tourism field, where the decision to purchase by a consumer is of emotional significance.