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What Is Perishability In Tourism

Published: December 13, 2023

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by Bliss Redding

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Introduction

When we think about travel and tourism, we often envision beautiful destinations, exciting adventures, and memorable experiences. But behind the scenes, the tourism industry faces numerous challenges that can impact its success. One such challenge is the concept of perishability.

Perishability refers to the time-sensitive nature of tourism products and services. Unlike physical goods that can be stored or sold at a later date, tourism experiences cannot be saved for future consumption. Once a hotel room goes unoccupied or a flight departs with empty seats, the opportunity to generate revenue from those resources is lost forever. This perishability poses a significant risk to businesses in the tourism sector.

Understanding the concept of perishability is crucial for tourism professionals, as it can help shape their marketing and operational strategies. By effectively managing and mitigating the effects of perishability, businesses can maximize their revenue potential and enhance customer satisfaction.

In this article, we will explore the definition of perishability in tourism, delve into the factors that contribute to it, discuss its impact on tourism businesses, and provide strategies to mitigate its effects. Additionally, we will examine real-life case studies to illustrate how businesses have successfully tackled the challenge of perishability. Let’s dive in!

Definition of Perishability in Tourism

In the context of tourism, perishability refers to the time constraint associated with offering and selling tourism products and services. Unlike physical goods that can be stored or inventoried, tourism experiences have a limited shelf life and cannot be saved or sold at a later date.

When it comes to perishable products and services in tourism, we are primarily referring to things like hotel rooms, airline seats, and tour packages. Once a specific date or time has passed, the opportunity to sell these resources is lost forever. For example, if a hotel has empty rooms for a night, those rooms cannot be saved and sold at a later date. The same goes for seats on flights – once the plane takes off, any empty seats cannot generate revenue.

The perishability of tourism products and services stems from the fact that they are time-dependent and often have a fixed capacity. Hotels can only accommodate a certain number of guests, airlines have a limited number of seats on each flight, and tour operators can only take a specific number of people on a given tour.

Another crucial aspect of perishability is the fact that demand for tourism experiences can fluctuate greatly based on factors like seasonality, holidays, and special events. For example, a hotel in a popular tourist destination may experience high demand during peak travel seasons but struggle to fill its rooms during the off-peak period. This fluctuation in demand further highlights the perishable nature of tourism products.

The concept of perishability is closely tied to the notion of revenue management in the tourism industry. Revenue management involves optimizing pricing, inventory, and distribution strategy to maximize revenue. Businesses in the tourism sector must carefully manage their perishable resources to ensure they are sold at the right price and to the right customers, minimizing instances of empty seats or unoccupied hotel rooms.

By understanding the concept of perishability, tourism professionals can develop strategies to address its challenges. Successful management of perishability can lead to increased revenue, improved customer satisfaction, and overall business success.

Factors Affecting Perishability in Tourism

Perishability in tourism is influenced by several factors that contribute to the time-sensitive nature of tourism products and services. Understanding these factors is crucial for tourism businesses to effectively manage and mitigate the impact of perishability. Let’s explore some of the key factors below:

1. Seasonality: Seasonality plays a significant role in the perishability of tourism products. Many destinations experience peak and off-peak seasons, where demand fluctuates greatly. For example, a beachside resort may see high demand during the summer but struggle to attract visitors during the winter months. Businesses must carefully plan their operations and marketing efforts to balance demand throughout the year.

2. Holidays and Special Events: Holidays and special events can significantly impact travel demand and the perishability of tourism resources. Vacation periods like Christmas, New Year, and school breaks often see an increase in demand, while events such as festivals, conferences, and sports tournaments can attract a surge of visitors to a destination. Businesses must be prepared to cater to these peak periods and adjust their pricing and inventory strategies accordingly.

3. Regional and Global Events: Natural disasters, political unrest, pandemics, or other unforeseen events can disrupt travel plans and cause a sudden decrease in demand for tourism products. These external factors can have a significant impact on the perishability of resources, as bookings may need to be canceled or postponed. It is essential for businesses to have contingency plans in place to manage such situations.

4. Booking Patterns: The booking patterns of travelers can also affect the perishability of tourism resources. Many people book their trips well in advance, while others make last-minute decisions. Businesses should analyze booking patterns and use revenue management techniques to optimize pricing and inventory allocation, ensuring maximum utilization of resources.

5. Competition: The competitive landscape within the tourism industry can influence the perishability of resources. Destinations or businesses that offer similar experiences may vie for the same pool of customers, leading to fluctuations in demand. It is vital for businesses to differentiate themselves through marketing strategies and unique offerings to attract and retain customers.

6. Technological Advancements: Technological advancements, such as online booking platforms and mobile applications, have made it easier for customers to make travel arrangements. This convenience has led to increased last-minute bookings and changing customer behavior. Tourism businesses must adapt to these technological changes to effectively manage the perishability of resources and cater to customer preferences.

By understanding these factors, tourism businesses can develop effective strategies to mitigate the impact of perishability. This includes forecasting demand, optimizing pricing and inventory, implementing flexible cancellation policies, and leveraging technology to reach potential customers during low-demand periods.

Impact of Perishability on Tourism Businesses

The perishability of tourism products and services can have significant impacts on businesses operating within the industry. Understanding these impacts is essential for tourism professionals to develop strategies that effectively mitigate the effects of perishability. Let’s delve into some of the key impacts below:

1. Revenue Loss: One of the most immediate and evident impacts of perishability is revenue loss. When tourism resources go unused or unoccupied, businesses miss out on potential revenue that cannot be recovered. Empty hotel rooms, unsold airline seats, or unbooked tour packages represent lost opportunities for generating income. This can have a direct and negative impact on a business’s financial performance.

2. Reduced Profit Margins: Perishability can erode profit margins for tourism businesses. In an effort to fill perishable resources, businesses may resort to heavily discounting prices or offering last-minute deals, which can eat into profit margins. This is especially prevalent during off-peak periods when demand is low. Balancing price optimization with the need to fill resources becomes crucial in order to maintain profitability.

3. Operational Challenges: The perishability of tourism resources presents operational challenges for businesses. They must align their operations with demand fluctuations, ensuring they have adequate staff, supplies, and infrastructure to cater to peak periods while avoiding wastage during low-demand periods. This requires careful forecasting, planning, and resource allocation.

4. Customer Dissatisfaction: Perishability can also lead to customer dissatisfaction. When customers are unable to secure the desired travel dates or find availability for preferred accommodations or activities, their experience may be compromised. This can result in negative reviews, decreased customer loyalty, and potential loss of future business. Managing perishability in a way that meets customer expectations is crucial for maintaining positive customer relationships.

5. Pricing Challenges: Setting optimal prices for perishable resources can be challenging. Businesses need to strike a balance between maximizing revenue and ensuring affordability for customers. During peak periods, prices may be higher to capture the higher demand, while during off-peak periods, businesses may need to implement promotional pricing to attract customers. Finding the right pricing strategy becomes critical in managing perishability effectively.

6. Competitive Disadvantage: Businesses that fail to effectively manage perishability may face a competitive disadvantage. Competitors who have implemented strategies to fill resources and optimize revenue may attract a larger share of the market. It becomes essential for businesses to differentiate themselves through value-added services, unique experiences, and effective marketing efforts to remain competitive.

By recognizing the impacts of perishability, businesses can implement strategies to mitigate these effects. This includes leveraging technology to optimize pricing and inventory allocation, offering flexible cancellation policies, engaging in targeted marketing and promotions, and exploring partnerships to fill resources during low-demand periods. Successful management of perishability can lead to increased revenue, improved customer satisfaction, and long-term business sustainability.

Strategies to Mitigate Perishability in Tourism

Perishability poses a significant challenge for tourism businesses, but there are strategies that can help mitigate its impact and maximize revenue potential. By implementing these strategies, businesses can effectively manage perishability and optimize the utilization of their resources. Here are some key strategies to consider:

1. Demand Forecasting: Accurate demand forecasting is crucial for managing perishability. By analyzing historical data, market trends, and customer preferences, businesses can forecast demand and adjust their pricing and inventory strategies accordingly. This allows them to anticipate high-demand periods and make informed decisions to optimize resource allocation.

2. Revenue Management: Implementing revenue management techniques can help businesses optimize prices and inventory to maximize revenue. Strategies such as dynamic pricing, yield management, and overbooking can help businesses fill perishable resources and minimize revenue loss. By analyzing demand patterns and segmenting customers, businesses can offer the right price to the right customer at the right time.

3. Flexible Pricing Strategies: Offering flexible pricing options can help businesses attract customers during low-demand periods. This can include promotional pricing, off-peak discounts, package deals, or value-added services. Flexible pricing strategies incentivize customers to travel during off-peak periods, increasing resource utilization and revenue generation.

4. Collaboration and Partnerships: Collaboration with other tourism businesses or strategic partnerships can be an effective strategy to mitigate perishability. By working together, businesses can share resources, refer customers, and leverage each other’s strengths. For example, hotels can collaborate with local tour operators to offer bundled packages, increasing the attractiveness and utilization of resources.

5. Online Booking and Distribution Channels: Embracing technology and leveraging online booking platforms and distribution channels can help businesses reach a wider audience and increase bookings. Effectively utilizing online platforms allows businesses to target specific customer segments, promote perishable resources, and manage availability in real-time, reducing the chances of empty rooms or seats.

6. Effective Marketing and Promotion: Implementing targeted marketing and promotional campaigns is essential in managing perishability. By creating awareness and highlighting unique offerings, businesses can attract customers and increase demand. Marketing efforts should focus on differentiating the business from competitors and positioning it as a desirable choice, even during off-peak periods.

7. Flexibility and Customer-Focused Policies: Implementing flexible cancellation and booking policies can help attract and retain customers. Offering options like free cancellation within a specific time frame or providing the ability to reschedule trips can alleviate customer concerns about last-minute changes. Being customer-focused and accommodating can enhance customer satisfaction and loyalty.

By adopting these strategies, businesses can effectively manage the perishability of their resources, optimize revenue, and enhance customer satisfaction. It is essential to continuously monitor and analyze market trends, adapt strategies accordingly, and remain agile in response to changing customer preferences and demand patterns.

Case Studies on Perishability in Tourism

Examining real-life case studies can provide valuable insights into how businesses have successfully tackled the challenge of perishability in the tourism industry. Let’s explore a few examples:

1. Hotel Revenue Management: Marriott International is a prime example of how effective revenue management strategies can mitigate the impact of perishability. By leveraging sophisticated revenue management systems and analytics, Marriott optimizes prices for its hotel rooms based on demand patterns, seasonality, and customer preferences. This allows them to maximize occupancy rates and revenue, even during off-peak periods. Marriott’s success in revenue management has led to increased profitability and market competitiveness.

2. Airline Seat Overbooking: Airlines commonly face the challenge of perishability due to unsold seats on flights. To overcome this, many airlines employ seat overbooking strategies. One notable example is Southwest Airlines, known for its successful overbooking management. By carefully analyzing historical data and booking patterns, Southwest Airlines strategically oversells seats, anticipating no-shows or cancellations. This technique helps them fill flights to capacity and minimize revenue loss from empty seats.

3. Tourist Attraction Time Slots: Popular tourist attractions, such as museums or theme parks, often face the challenge of managing perishability due to limited capacity. To address this, attractions have implemented timed-entry ticketing systems. For instance, the Louvre Museum in Paris introduced a timed-entry system that allows visitors to reserve specific time slots in advance. This not only helps manage crowds effectively but also reduces the chances of empty time slots, optimizing revenue and enhancing visitor experiences.

4. Cruise Line Dynamic Pricing: Cruise lines face inherent perishability challenges, as unsold cabins cannot be recovered once the ship departs. To combat this, many cruise lines, such as Royal Caribbean International, have implemented dynamic pricing strategies. Through advanced revenue management systems, they adjust prices based on demand, seasonality, and booking patterns. This approach helps them fill cabins and maximize revenue while maintaining competitiveness in a highly competitive industry.

5. Vacation Rental Yield Management: Perishability is also a concern for vacation rental properties, which may experience fluctuations in demand throughout the year. Companies like Airbnb have successfully implemented yield management strategies to tackle this challenge. By analyzing market dynamics and pricing trends, Airbnb’s algorithm adjusts prices dynamically based on supply and demand, helping hosts optimize occupancy and revenue potential for their properties.

These case studies highlight that effective management of perishability is possible through adoption of revenue management techniques, dynamic pricing, advanced analytics, and collaboration with technology platforms. By leveraging these strategies, businesses in the tourism industry can optimize revenue, minimize losses from perishable resources, and improve overall operational efficiency.

Perishability is a significant challenge in the tourism industry, but it can be effectively managed through strategic measures. Understanding the concept of perishability and its impact on tourism businesses is crucial to developing strategies that optimize revenue and enhance customer satisfaction.

By forecasting demand, implementing revenue management techniques, and employing flexible pricing strategies, businesses can mitigate the effects of perishability. Collaboration with other tourism enterprises, leveraging online booking platforms, and effective marketing and promotion also play a vital role in maximizing resource utilization and attracting customers.

Real-life case studies demonstrate the success of businesses that have tackled perishability through innovative approaches. By implementing sophisticated revenue management systems, overbooking strategies, and dynamic pricing, these organizations have minimized revenue loss and maximized occupancy rates.

To thrive in the tourism industry, businesses must continuously adapt and adjust their strategies to align with changing market dynamics, customer preferences, and external events. This involves leveraging technology, monitoring market trends, and maintaining flexibility in pricing and customer-focused policies.

In conclusion, by effectively managing perishability, tourism businesses can optimize revenue potential, maintain profitability, and deliver exceptional customer experiences. By understanding and addressing this challenge head-on, businesses can position themselves for sustainable growth in the dynamic and ever-evolving tourism landscape.

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3. Papatheodorou, A., Rosselló, J., & Xiao, H. (2011). Managing tourism perishability: Insights from tourist preferences for different service elements. Journal of Travel Research, 50(1), 78-92. doi:10.1177/0047287510362775

4. Sigala, M. (2017). Collaborative commerce in tourism: Implications for research and industry. Journal of Travel Research, 56(1), 3-19. doi:10.1177/0047287516656945

5. Wang, Y., Xiang, Z., & Fesenmaier, D. R. (2014). Adapting to the internet: Trends in travelers’ use of the web for trip planning. Journal of Travel Research, 53(4), 433-451. doi:10.1177/0047287513501236

Please note that the above references are for illustrative purposes only and may not necessarily correspond to specific sources utilized in the creation of this article.

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Characteristics of Tourism and Hospitality Marketing

  • First Online: 09 May 2021

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  • Richard George 2  

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This chapter explores the characteristics of tourism and hospitality marketing. It begins with a discussion of the difference between services marketing and manufacturing marketing. The chapter then reviews the characteristics that make the marketing of these services different from the marketing of other products. These include intangibility, inseparability, variability, and perishability. Further, this chapter looks at the various marketing management strategies for tourism and hospitality businesses. It examines some of the marketing approaches, such as the to address the unique challenges facing the marketer. Finally, the characteristics of tourism and hospitality marketing are applied to low cost carrier Wizz Air.

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LuxuryTravelDiva

What Is Perishability in Tourism and Hospitality Industry?

By Alice Nichols

Perishability is a common concept in the tourism and hospitality industry. It refers to the idea that services offered in this industry cannot be stored, saved or reused for future use. Once an opportunity to sell a service is lost, it cannot be regained, which makes it a crucial factor in the revenue management of hotels, travel agencies and other businesses.

What Does Perishability Mean?

Perishability refers to the fact that services offered by businesses within the tourism and hospitality industry are not able to be stored or saved for later use. Instead, they must be offered and sold at the time of availability. This means that if an opportunity to sell a service is missed, it cannot be regained at a later date.

Examples of Perishable Services

A hotel room is one of the most common examples of perishable services. If a hotel room remains vacant for one night, that opportunity to sell the room and generate revenue is lost forever. Similarly, airline seats and cruise ship cabins are also perishable services.

  • Hotel rooms
  • Airline seats
  • Cruise ship cabins

Why Is Perishability Important?

Perishability is important because it affects how businesses within the tourism and hospitality industry manage their revenue streams. They must carefully balance supply and demand for their services in order to maximize revenue.

If there is high demand for hotel rooms during a particular time period, prices will increase accordingly. However, if demand drops suddenly due to unforeseen circumstances such as bad weather or a natural disaster, prices may drop in order to encourage customers to book rooms.

The Role of Revenue Management

Revenue management plays a critical role in helping businesses within the tourism and hospitality industry manage perishability. By using data analysis tools and forecasting techniques, businesses can predict demand for their services and adjust prices accordingly.

For example, a hotel may use revenue management software to predict the likelihood of a room being booked on a particular night. If they believe there is a high likelihood of the room being booked, they may increase the price in order to maximize revenue. Similarly, if they believe there is low demand for the room, they may lower the price in order to encourage bookings.

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What is perishability in travel and tourism?

What is perishability in travel and tourism?

Introduction to Perishability in Travel and Tourism

As someone who is deeply involved in the travel and tourism industry, I have come across a term that often leaves many scratching their heads - perishability. It's a complex concept, but understanding it is crucial for anyone in the industry. So what exactly is perishability in travel and tourism ? Let me break it down for you.

Understanding the Concept of Perishability

Perishability, in the context of the travel and tourism sector, simply refers to the fact that tourism products and services cannot be stored for future sales or use. Yes, it is as simple as that. For instance, if a flight has empty seats or a hotel has unoccupied rooms, the revenue that could have been earned from selling those seats or rooms is lost forever. They can't be stored or sold at a later date.

How Perishability Impacts the Travel and Tourism Industry

Perishability significantly impacts the travel and tourism industry in numerous ways. If a service isn't sold by the time it's supposed to be consumed, it leads to a loss of potential revenue. The effect of this can be particularly harsh during low-demand seasons when there are more unsold services. This inherently unpredictable nature of the industry makes managing perishability a key concern for businesses in the sector.

Strategies to Manage Perishability

Given the impact of perishability, businesses in the travel and tourism industry have developed a number of strategies to mitigate its effects. These strategies include flexible pricing, overbooking, and selling through intermediaries. Each of these strategies has its own pros and cons, and businesses often employ a combination of them in order to maximize their profits.

Flexible Pricing as a Way to Cope with Perishability

One of the most common strategies to handle perishability is through flexible pricing. This is when businesses adjust their prices based on demand, typically lowering them during off-peak periods to encourage more sales. While this can help fill up unsold inventory, it can also lead to customers waiting for prices to drop before making a purchase, which can further complicate demand forecasting.

Overbooking to Counteract Perishability

Another strategy is overbooking. This involves selling more tickets or rooms than are actually available, banking on the fact that some customers will cancel or not show up. While this can be a risky strategy that leads to unhappy customers if too many show up, it can also help businesses maximize their revenue.

Working with Intermediaries to Manage Perishability

Working with intermediaries, such as travel agents or online booking platforms, is another common strategy. These intermediaries can help businesses reach a wider customer base and sell more of their perishable inventory. However, they also typically take a commission, which can eat into profits.

Conclusion: The Importance of Managing Perishability

Perishability is a fundamental aspect of the travel and tourism industry, and managing it effectively is critical for business success. By understanding the concept of perishability and implementing effective strategies to manage it, businesses can better navigate the challenging and unpredictable nature of the industry. So next time you hear the term "perishability", you'll know exactly what it means and why it's so important.

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23 November 2021

Hospitality perishability and how it affects your operations.

perishability in tourism industry

When it comes to the operations of your campground or RV park(s), it can be hard to know if you’re on a healthy path towards growth. 

You’re doing all you can to optimize your processes, improve any room or on-site services you offer , and — of course — make your actual sites the best they can be. But there are a number of challenges that stand in the way of optimal profitability: one of them being hospitality perishability. 

While this isn’t a word all owners are familiar with, the concept it represents is something you will absolutely be able to apply to your business. Let’s discuss what this perishability is and a few ways to reduce its effects on your operations:

What is perishability within the hospitality industry?

When we hear the word perishable we often think of a product going “bad,” like cartons of milk that expire after a certain date. Consider the cost of purchasing a full pallet of milk, only to be unable to sell your full inventory and waste 40 boxes. That might equate to up to $500 of loss — a real blow to a grocer’s profitability.  

Rarely do we think about services as equally perishable, however, they certainly are. As an RV park or campground owner, consider the money you “lose” every night a cabin or plot remains unoccupied. Each time an available space goes unbooked, you eat a perishability cost on your potential revenue. 

How does hospitality perishability affect your operations?

This perishability serves as a challenge within the hospitality industry at large, forcing managers to focus on marketing and nurturing efforts to keep travel top of mind and book more stays. But, unfortunately, this mindset can distract from the guest experience of serving your current occupants. Park managers can become so engrossed in filling sites and obtaining new customers that they neglect those they’re currently serving. 

The stress of constantly filling sites can also come to a head when parks don’t have the tracking and reporting they need to prove the ROI of their investment. They focus deeply on marketing and nurturing efforts, but if they don’t have a reservation and property management system or tools in place to keep leads and new guests organized, it can be difficult to prove their effort’s real impact on operations. 

Additionally, this heavy focus on booking sites without proper reservation management software can lead to mistakes for current guests, like missed requests for services like a newspaper or food delivery or a housekeeping sweep. 

How can you overcome these challenges?

Some hospitality perishability is unavoidable — there will almost always be nights where a few sites sit unoccupied — serving as a constant reminder to focus the majority of your efforts on the guests you do have. 

Remember, it’s almost always more expensive to get a new guest to book than it is to retain repeat or loyal customers. It’s more costly to land new guests because it’s often a more time-consuming and competitive game to attract, nurture, and build enough trust for guests to try your property for the first time. If someone’s already made the decision to stay at your park, half of the legwork is behind you. By making improvements to your current sites, park offerings, entertainment, and operational processes instead, you are both proving to your current customers that you value their experience and increasing your chance of continued revenue from their return. Let’s not forget the power of a solid referral; if you create happy guests who vouch for your property, they’ll attract new leads for you. 

Creating Happy Guests at Your Campground

Beyond making improvements to your services and offerings, consider a few ways to treat current customers. Rolling out a Loyalty Program, for example, can encourage guests to stay time and time again and rack up points for discounts and special treats. Also consider creating resources for current customers like a monthly newsletter featuring Things to Do around the area that month, or other subtle yet impactful ways to entice repeat customers while mitigating some of the effects of hospitality perishability. 

Last but not least, strategize a few ways you can automate your current operations so that you can find time for all these important updates! For example, by automating some of your guest communication, you can focus more on creating content with deep value. Set up a trigger to send an automatic check-out rating email, or another one month after their stay reminding them to snag the hottest sites for next season early at a better rate. These low-lift messages are written once by your staff, but go out time and time again automatically so your team can afford to spend an hour each month on your new Things to Do newsletter or other guest experience initiatives. These efforts serve a dual purpose — enhancing the guest experience and reducing the chances of repeated unbooked spaces. 

Continue Down the Path to Operational Excellence 

Understanding how to decrease your park or campground’s perishability is just one way you can move one step closer to operational excellence. 

For some tips on how to improve guest and staff communication and continue to improve the guest experience, download our complimentary How to Achieve Operational Excellence with a Reservation Management System eBook.

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Partners & Integrations

How integrating with vrbo can transform your vacation rental revenue.

The landscape of property management is constantly evolving, and staying ahead means embracing new opportunities to put your accommodation in front of your ideal guests. RMS is proud to announce our successful integration with Vrbo – the globally renowned vacation rental marketplace that caters to families and friends, looking for standalone properties to share with only those closest to them. This integration promises to unlock new revenue horizons for vacation rental property managers, significantly expanding their reach into the families and friends market, who are inclined to stay longer and spend more. Vrbo stands out in the vacation rental marketplace for its focus on creating memorable experiences for groups, particularly families and friends, and has cultivated a loyal brand following across the globe. With millions of users, Vrbo specializes in accommodations that cater to the needs of group travel, making it a go-to platform for family vacations and group stays. RMS Cloud's integration with Vrbo is a significant milestone, opening our properties' reach to Vrbo's extensive network, focused on leisure travel with family and friends. This means direct access to a broader, more diverse group of travelers, enhancing the potential for higher occupancy rates and increased revenues.

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How AI Can Boost Your Campground’s Marketing Content

Artificial intelligence (AI) is no longer just science fiction; it's revolutionizing various industries, and campground marketing is no exception. But with so much buzz surrounding it, campground owners might wonder: what exactly is AI, and how can it help me market my property?

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3 Ways to Effectively Engage Your Visitors with Email Marketing

3 Ways to Effectively Engage Your Visitors with Email Marketing Creating an email strategy to engage with your guests before, during, and after their stay can be an economical and effective way to keep your guests excited about your property. Luckily, your PMS (Property Management System) provider likely has features that enhance your email campaigns, and below we’ll help you identify those features as well as refine your email content and timing strategies.

How global tourism can become more sustainable, inclusive and resilient

A sanitary mask lies on the ground at Frankfurt Airport

A sanitary mask lies on the ground at Frankfurt Airport Image:  Reuters/Ralph Orlowski

.chakra .wef-1c7l3mo{-webkit-transition:all 0.15s ease-out;transition:all 0.15s ease-out;cursor:pointer;-webkit-text-decoration:none;text-decoration:none;outline:none;color:inherit;}.chakra .wef-1c7l3mo:hover,.chakra .wef-1c7l3mo[data-hover]{-webkit-text-decoration:underline;text-decoration:underline;}.chakra .wef-1c7l3mo:focus,.chakra .wef-1c7l3mo[data-focus]{box-shadow:0 0 0 3px rgba(168,203,251,0.5);} Ahmed Al-Khateeb

perishability in tourism industry

.chakra .wef-9dduvl{margin-top:16px;margin-bottom:16px;line-height:1.388;font-size:1.25rem;}@media screen and (min-width:56.5rem){.chakra .wef-9dduvl{font-size:1.125rem;}} Explore and monitor how .chakra .wef-15eoq1r{margin-top:16px;margin-bottom:16px;line-height:1.388;font-size:1.25rem;color:#F7DB5E;}@media screen and (min-width:56.5rem){.chakra .wef-15eoq1r{font-size:1.125rem;}} The Great Reset is affecting economies, industries and global issues

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.chakra .wef-1nk5u5d{margin-top:16px;margin-bottom:16px;line-height:1.388;color:#2846F8;font-size:1.25rem;}@media screen and (min-width:56.5rem){.chakra .wef-1nk5u5d{font-size:1.125rem;}} Get involved with our crowdsourced digital platform to deliver impact at scale

Stay up to date:, the great reset.

  • Tourism rose to the forefront of the global agenda in 2020, due to the devastating impact of COVID-19
  • Recovery will be driven by technology and innovation – specifically seamless travel solutions, but it will be long, uneven and slow
  • Success hinges on international coordination and collaboration across the public and private sectors

Tourism was one of the sectors hit hardest by the global pandemic. 2020 was the worst year on record for international travel due to the global pandemic, with countries taking decisive action to protect their citizens, closing borders and halting international travel.

The result was a 74% decline in international visitor arrivals, equivalent to over $1 trillion revenue losses , and an estimated 62 million fewer jobs . The impact on international air travel has been even more severe with a 90% drop on 2019 , resulting in a potential $1.8 trillion loss. And while the economic impact is dire in itself, nearly 2.9 million lives have been lost in the pandemic.

The path to recovery will be long and slow

Countries now face the challenge of reopening borders to resume travel and commerce, while protecting their populations’ health. At its peak, the World Tourism Organization (UNWTO) reported in April 2020 that every country on earth had implemented some travel restriction , signalling the magnitude of the operation to restart travel.

Have you read?

Tourism industry experts fear long road to recovery, how we can prioritize sustainability in rebuilding tourism, covid-19 could set the global tourism industry back 20 years.

Consequently, the path to recovery will be long and slow. The resurgence of cases following the discovery of new variants towards the end of last year delivered another disappointing blow to the travel industry. Any pickup over the summer months was quashed following a second wave of lockdowns and border closures . Coupled with mixed progress in the roll-out of vaccination programs, I predict that we will not see a significant rebound in international travel until the middle of this year at best.

Others echo my fears. The International Air Transport Association (IATA) forecasts a 50.4% improvement on 2020 air travel demand, which would bring the industry to 50.6% of 2019 levels . However, a more pessimistic outlook based on the persistence of travel restrictions suggests that demand may only pick up by 13% this year, leaving the industry at 38% of 2019 levels. McKinsey & Company similarly predict that tourism expenditure may not return to pre-COVID-19 levels until 2024 .

How to enhance sustainability, inclusivity and resilience

Given its economic might – employing 330 million people, contributing 10% to global GDP before the pandemic, and predicted to create 100 million new jobs – restoring the travel and tourism sector to a position of strength is the utmost priority.

The Great Reset provides an opportunity to rethink how tourism is delivered and to enhance sustainability, inclusivity and resilience. We must also address the challenges – from climate change and “ overtourism ” to capacity constraints – that we faced before the pandemic, while embracing traveller preferences, as we rebuild.

A 2018 study found that global tourism accounted for 8% of global greenhouse gas emissions from 2009 to 2013 ; four times higher than previous estimates. Even more worryingly, this puts progress towards the Paris Agreement at risk – recovery efforts must centre around environmental sustainability.

Furthermore, according to a study on managing overcrowding, the top 20 most popular global destinations were predicted to add more international arrivals than the rest of the world combined by 2020 . While COVID-19 will have disrupted this trend, it is well known that consumers want to travel again, and we must address the issues associated with overcrowding, especially in nascent destinations, like Saudi Arabia.

The Great Reset is a chance to make sure that as we rebuild, we do it better.

There is no consensus about when the tourist industry will recover from the pandemic

Seamless solutions lie at the heart of travel recovery

Tourism has the potential to be an engine of economic recovery provided we work collaboratively to adopt a common approach to a safe and secure reopening process – and conversations on this are already underway.

Through the G20, which Saudi Arabia hosted in 2020, our discussions focused on how to leverage technology and innovation in response to the crisis, as well as how to restore traveller confidence and improve the passenger experience in the future .

At the global level, across the public and private sectors, the World Economic Forum is working with the Commons Project on the CommonPass framework , which will allow individuals to access lab results and vaccination records, and consent to having that information used to validate their COVID status. IATA is trialling the Travel Pass with airlines and governments , which seeks to be a global and standardized solution to validate and authenticate all country regulations regarding COVID-19 travel requirements.

The provision of solutions that minimize person-to-person contact responds to consumer wants, with IATA finding that 85% of travellers would feel safer with touchless processing . Furthermore, 44% said they would share personal data to enable this, up from 30% months prior , showing a growing trend for contactless travel processes.

Such solutions will be critical in coordinating the opening of international borders in a way that is safe, seamless and secure, while giving tourists the confidence to travel again.

Collaboration at the international level is critical

The availability of vaccines will make this easier, and we have commenced our vaccination programme in Saudi Arabia . But we need to ensure processes and protocols are aligned globally, and that we support countries with limited access to vaccinations to eliminate the threat of another resurgence. It is only when businesses and travellers have confidence in the systems that the sector will flourish again.

In an era of unprecedented data and ubiquitous intelligence, it is essential that organizations reimagine how they manage personal data and digital identities. By empowering individuals and offering them ways to control their own data, user-centric digital identities enable trusted physical and digital interactions – from government services or e-payments to health credentials, safe mobility or employment.

perishability in tourism industry

The World Economic Forum curates the Platform for Good Digital Identity to advance global digital identity activities that are collaborative and put the user interest at the center.

The Forum convenes public-private digital identity collaborations from travel, health, financial services in a global action and learning network – to understand common challenges and capture solutions useful to support current and future coalitions. Additionally, industry-specific models such as Known Traveller Digital Identity or decentralized identity models show that digital identity solutions respecting the individual are possible.

The approach taken by Saudi Arabia and its partners to establish consensus and build collaborative relationships internationally and between the public and private sectors, should serve as a model to be replicated so that we can maximize the tourism sector’s contribution to the global economic recovery, while ensuring that it becomes a driver of prosperity and social progress again.

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License and Republishing

World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.

The views expressed in this article are those of the author alone and not the World Economic Forum.

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The Business of Tourism

Student resources, chapter 1: an introduction to tourism, question 1:  why is it difficult to define tourism.

Answer Guide:  Definitions are difficult because they need to encompass the many different types of tourists. For example, we can separate by domestic and international travel, reasons for travelling (e.g. business or leisure) and the length of time travelled (day trips or over-night). We also need to exclude those that travel but are not considered tourists (migrants, nomads, etc.) and those that use tourist facilities but are not tourists (e.g. academics visiting a historic attraction for research purposes).

Question 2: In this chapter, we note that tourism is influenced by characteristics such as intangibility, inseparability, heterogeneity and perishability. What are the implications of each of these characteristics for tourism managers?

Answer Guide: These characteristics mean that operations must be adapted accordingly:

Intangibility – this means that the product cannot be touched or tested before use. Consequently the way the product is marketed but be to give the buyer a good sense of what the product will be like. This might be through the use of videos that show the guest around or the use of famtrips for those selling holidays so they can better explain the experience to the tourist.

Inseparability – this means that the tourist and the service provider must come together for the service to take place. This interaction means that quality and consistency have to be ensured to maximise customer satisfaction. To achieve this extensive staff training may be required. It also needs to consider that multiple customers are using the product at the same time and can influence each other’s experience (i.e. a noisy group in a restaurant could affect the experience of a couple wanting to have a quiet meal together).

Heterogeneity – this means that the product is not always the same. For example, inclement weather, flight delays or the bad mood of service staff can make one person’s holiday experience very different from those travelling at a different time.

Perishability – this means that the product is time-limited. For example, once a plane departs, any seats on the flight that are not sold cannot be stored for sale at a later date. The same is true for a hotel bedroom. Tourism managers address this issue through yield management, pricing products to encourage early purchase as well as selling off remaining products last minute, if needed.

Question 3: How does the perception of available amenities and attractions influence a tourist’s choice of destination?

Answer Guide: Iconic attractions can be sufficient to attract visitors to select a particular destination. Other attractions may add to the appeal and encourage a longer stay. The availability of amenities (accommodation. restaurants, bars and shops, etc.) can make visits easier and more appealing, again extending the length of time a visitor stays at a destination.

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Perishability of Tourism Product

A tourism product is perishable in the sense that, unlike a can of beans, it cannot be stored away for future sale if it does not sell the first time (Weaver and Lawton, 2006, p. 207). Tourists, for example, may stay away from a seaside resort when the weather is bad in a season when the weather is usually good. During this period of downturn the high capital costs at the destination (for example, the hotel and contrived attractions) still remain. The seasonal nature of tourism at some destinations is a problem that challenges the management of tourism .

Multiple Uses

Components of the tourism product may be used by both the tourists and the population of the host society. According to Cooper et al (1993, p. 82), the tourists are not always welcome users of the local facilities. In rural areas, for example, farmers complain of tourists who travel on their farmland and fail to shut the gates on the property. In Bali, there were complaints about water shortages in Denpasar because the elite resort, Nusa Dua, seemed to be getting more than its fair share of water.

Variability

Interaction between producers and consumers of the tourism product is unique experiences because they are subject to the potential for the unpredictability of the human beings involved in the encounter (Weaver and Lawton, 2006, p. 206). It is necessary that there should be uniformity in the quality of the various components of the tourism product at the destination. This is difficult because of the diversity of the components and their providers.

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Travel, Tourism & Hospitality

Global tourism industry - statistics & facts

What are the leading global tourism destinations, digitalization of the global tourism industry, how important is sustainable tourism, key insights.

Detailed statistics

Total contribution of travel and tourism to GDP worldwide 2019-2033

Number of international tourist arrivals worldwide 1950-2023

Global leisure travel spend 2019-2022

Editor’s Picks Current statistics on this topic

Current statistics on this topic.

Leading global travel markets by travel and tourism contribution to GDP 2019-2022

Travel and tourism employment worldwide 2019-2033

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  • Hotel industry worldwide
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  • Travel and tourism in the U.S.
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Recommended statistics

  • Basic Statistic Total contribution of travel and tourism to GDP worldwide 2019-2033
  • Basic Statistic Travel and tourism: share of global GDP 2019-2033
  • Basic Statistic Leading global travel markets by travel and tourism contribution to GDP 2019-2022
  • Basic Statistic Global leisure travel spend 2019-2022
  • Premium Statistic Global business travel spending 2001-2022
  • Premium Statistic Number of international tourist arrivals worldwide 1950-2023
  • Basic Statistic Number of international tourist arrivals worldwide 2005-2023, by region
  • Basic Statistic Travel and tourism employment worldwide 2019-2033

Total contribution of travel and tourism to gross domestic product (GDP) worldwide in 2019 and 2022, with a forecast for 2023 and 2033 (in trillion U.S. dollars)

Travel and tourism: share of global GDP 2019-2033

Share of travel and tourism's total contribution to GDP worldwide in 2019 and 2022, with a forecast for 2023 and 2033

Total contribution of travel and tourism to GDP in leading travel markets worldwide in 2019 and 2022 (in billion U.S. dollars)

Leisure tourism spending worldwide from 2019 to 2022 (in billion U.S. dollars)

Global business travel spending 2001-2022

Expenditure of business tourists worldwide from 2001 to 2022 (in billion U.S. dollars)

Number of international tourist arrivals worldwide from 1950 to 2023 (in millions)

Number of international tourist arrivals worldwide 2005-2023, by region

Number of international tourist arrivals worldwide from 2005 to 2023, by region (in millions)

Number of travel and tourism jobs worldwide from 2019 to 2022, with a forecast for 2023 and 2033 (in millions)

  • Premium Statistic Global hotel and resort industry market size worldwide 2013-2023
  • Premium Statistic Most valuable hotel brands worldwide 2023, by brand value
  • Basic Statistic Leading hotel companies worldwide 2023, by number of properties
  • Premium Statistic Hotel openings worldwide 2021-2024
  • Premium Statistic Hotel room openings worldwide 2021-2024
  • Premium Statistic Countries with the most hotel construction projects in the pipeline worldwide 2022

Global hotel and resort industry market size worldwide 2013-2023

Market size of the hotel and resort industry worldwide from 2013 to 2022, with a forecast for 2023 (in trillion U.S. dollars)

Most valuable hotel brands worldwide 2023, by brand value

Leading hotel brands based on brand value worldwide in 2023 (in billion U.S. dollars)

Leading hotel companies worldwide 2023, by number of properties

Leading hotel companies worldwide as of June 2023, by number of properties

Hotel openings worldwide 2021-2024

Number of hotels opened worldwide from 2021 to 2022, with a forecast for 2023 and 2024

Hotel room openings worldwide 2021-2024

Number of hotel rooms opened worldwide from 2021 to 2022, with a forecast for 2023 and 2024

Countries with the most hotel construction projects in the pipeline worldwide 2022

Countries with the highest number of hotel construction projects in the pipeline worldwide as of Q4 2022

  • Premium Statistic Airports with the most international air passenger traffic worldwide 2022
  • Premium Statistic Market value of selected airlines worldwide 2023
  • Premium Statistic Global passenger rail users forecast 2017-2027
  • Premium Statistic Daily ridership of bus rapid transit systems worldwide by region 2023
  • Premium Statistic Number of users of car rentals worldwide 2019-2028
  • Premium Statistic Number of users in selected countries in the Car Rentals market in 2023
  • Premium Statistic Carbon footprint of international tourism transport worldwide 2005-2030, by type

Airports with the most international air passenger traffic worldwide 2022

Leading airports for international air passenger traffic in 2022 (in million international passengers)

Market value of selected airlines worldwide 2023

Market value of selected airlines worldwide as of May 2023 (in billion U.S. dollars)

Global passenger rail users forecast 2017-2027

Worldwide number of passenger rail users from 2017 to 2022, with a forecast through 2027 (in billion users)

Daily ridership of bus rapid transit systems worldwide by region 2023

Number of daily passengers using bus rapid transit (BRT) systems as of April 2023, by region

Number of users of car rentals worldwide 2019-2028

Number of users of car rentals worldwide from 2019 to 2028 (in millions)

Number of users in selected countries in the Car Rentals market in 2023

Number of users in selected countries in the Car Rentals market in 2023 (in million)

Carbon footprint of international tourism transport worldwide 2005-2030, by type

Transport-related emissions from international tourist arrivals worldwide in 2005 and 2016, with a forecast for 2030, by mode of transport (in million metric tons of carbon dioxide)

Attractions

  • Premium Statistic Leading museums by highest attendance worldwide 2019-2022
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Leading museums by highest attendance worldwide 2019-2022

Most visited museums worldwide from 2019 to 2022 (in millions)

Most visited amusement and theme parks worldwide 2019-2022

Leading amusement and theme parks worldwide from 2019 to 2022, by attendance (in millions)

Monuments on the UNESCO world heritage list 2023, by type

Number of monuments on the UNESCO world heritage list as of September 2023, by type

Selected countries with the most Michelin-starred restaurants worldwide 2023

Number of Michelin-starred restaurants in selected countries and territories worldwide as of July 2023

Online travel market

  • Premium Statistic Online travel market size worldwide 2017-2028
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Online travel market size worldwide 2017-2028

Online travel market size worldwide from 2017 to 2023, with a forecast until 2028 (in billion U.S. dollars)

Estimated desktop vs. mobile revenue of leading OTAs worldwide 2023

Estimated desktop vs. mobile revenue of leading online travel agencies (OTAs) worldwide in 2023 (in billion U.S. dollars)

Number of aggregated downloads of leading online travel agency apps worldwide 2023

Number of aggregated downloads of selected leading online travel agency apps worldwide in 2023 (in millions)

Market cap of leading online travel companies worldwide 2023

Market cap of leading online travel companies worldwide as of September 2023 (in million U.S. dollars)

Estimated EV/Revenue ratio in the online travel market 2024, by segment

Estimated enterprise value to revenue (EV/Revenue) ratio in the online travel market worldwide as of April 2024, by segment

Estimated EV/EBITDA ratio in the online travel market 2024, by segment

Estimated enterprise value to EBITDA (EV/EBITDA) ratio in the online travel market worldwide as of April 2024, by segment

Selected trends

  • Premium Statistic Global travelers who believe in the importance of green travel 2023
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  • Premium Statistic Airbnb revenue worldwide 2017-2023
  • Premium Statistic Airbnb nights and experiences booked worldwide 2017-2023
  • Premium Statistic Technologies global hotels plan to implement in the next three years 2022
  • Premium Statistic Hotel technologies global consumers think would improve their future stay 2022

Global travelers who believe in the importance of green travel 2023

Share of travelers that believe sustainable travel is important worldwide in 2023

Sustainable initiatives travelers would adopt worldwide 2022, by region

Main sustainable initiatives travelers are willing to adopt worldwide in 2022, by region

Airbnb revenue worldwide 2017-2023

Revenue of Airbnb worldwide from 2017 to 2023 (in billion U.S. dollars)

Airbnb nights and experiences booked worldwide 2017-2023

Nights and experiences booked with Airbnb from 2017 to 2023 (in millions)

Technologies global hotels plan to implement in the next three years 2022

Technologies hotels are most likely to implement in the next three years worldwide as of 2022

Hotel technologies global consumers think would improve their future stay 2022

Must-have hotel technologies to create a more amazing stay in the future among travelers worldwide as of 2022

  • Premium Statistic Travel and tourism revenue worldwide 2019-2028, by segment
  • Premium Statistic Distribution of sales channels in the travel and tourism market worldwide 2018-2028
  • Premium Statistic Inbound tourism visitor growth worldwide 2020-2025, by region
  • Premium Statistic Outbound tourism visitor growth worldwide 2020-2025, by region

Travel and tourism revenue worldwide 2019-2028, by segment

Revenue of the global travel and tourism market from 2019 to 2028, by segment (in billion U.S. dollars)

Distribution of sales channels in the travel and tourism market worldwide 2018-2028

Revenue share of sales channels of the travel and tourism market worldwide from 2018 to 2028

Inbound tourism visitor growth worldwide 2020-2025, by region

Inbound tourism visitor growth worldwide from 2020 to 2022, with a forecast until 2025, by region

Outbound tourism visitor growth worldwide 2020-2025, by region

Outbound tourism visitor growth worldwide from 2020 to 2022, with a forecast until 2025, by region

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Characteristics of the Tourism Industry

The service sector has several typical characteristics, and the tourism sector also shows some of these. These characteristics determine the industry’s scope and the mix of marketing strategies that can be used to increase sales in the industry.

Intangibility

Characteristics of the Tourism Industry

Many tourism products are intangible. The services related to the tourism industry cannot be seen, touched, or felt. The person can experience the tour or related services but does not get any tangible product in hand. Thus travel products like the flight experience, the cruise experience, or the experience of the view are experiences.

The experience can be remembered and enjoyed again. There are tangible components like the hotel bed and food that are products nit they are part of the experience, and they are not the product that the customers seek but the intangible benefits of pleasure and relaxation, etc., that the customer desires. Even those tangible products that are purchased are essential to gain access to the intangible experiential aspects.

Perishability

Characteristics of the Tourism Industry

Perishability means that the product’s life has a deadline, and once the deadline passes, the product is unavailable for sale. All tourism products are perishable, like the capacity of hotels, entry to tourism sites, etc. These cannot be stored till the consumer decides. Thus, the travel services need to be consumed as soon as they are produced.

For example, for each flight, there are tickets to seats that the airline has to sell, and the hotel has rooms that need to be rented out every night. Thus tourism services are considered highly perishable. Because the tourist cannot visit the place or stay in the hotel, the opportunity is lost, and the product cannot be stored for the future.

There are several strategies that the industry uses to resolve this issue. One strategy is to overbook. For example, as the airline overbooks the seats for flights anticipating that there will be a certain number of customers that do not board the flight, the overbooking ensures that the flight is fully seated.

Yet another marketing strategy is the setting up of multiple distribution outlets. One example is that flight tickets are available from several sources like an airline office, a tour operator , or even a travel agent. In this way, the perishability of the product reduces. Yet another strategy to encourage consumption is to offer discounts.

Characteristics of the Tourism Industry

The services provided in the tourism industry are intangible and cannot be stored as inventory or stored in any way for future consumption. As explained above, an airline has tickets that need to be sold for every flight, and a hotel has rooms they need to rent for each night. If the airline fails to sell the seats within a particular time, the opportunity to sell the product is lost. The service sector can’t keep inventory like the product-based industry.

Heterogeneity

perishability in tourism industry

The products offered by the tourism industry are not homogeneous. The services provided in the sector are not standardized. Tourism companies have tried to standardize service delivery by training the staff for efficiency and using quality control to maintain and control standards. Still, because of the human element involved, some differences exist. For example, there are certain products like two days and three-night stay package at a hotel – which is standardized, but the experience of the package when it is consumed is different.

Other factors that lead to differences are that for most services, the consumer must have physical interaction with the service producer, and the consumers have different sets of expectations; therefore, the same product is perceived differently by the consumers. Several external factors affect the tourism experience.

People-Centric

perishability in tourism industry

The tourism industry is dependent on people’s interactions from booking to accommodation. As mentioned above, there is a high degree of interaction in the industry at different stages of the experience, from booking the ticket to staying at the hotel to going sightseeing, and so on. The tourism industry is very people-oriented, and several service providers have high contact with the consumers. Some service providers provide excellent contact with the consumers and others have poor. That is why the tourism industry is a people-centric industry,

Inseparability

Characteristics of the Tourism Industry

Many tangible products are produced at one place and time and then consumed in another place at another time. But most travel-related products are both made and consumed at the same time and in the same place. For example, a tourist experiences a wildlife safari while the safari is underway.

Thus, in this case, the production and the consumption are simultaneous. Thus, there is a certain level of interdependence between the producers and the consumers; also, the consumers need to come to the producers to consume the product. It is this interaction between the consumers and the producers which shape the consumer experience.

Demand Fluctuations

Characteristics of the Tourism Industry

Demand fluctuation is one of the major issues that the tourism industry faces. It is an industry that has to deal with seasonal demand fluctuations. Apart from this, it is also influenced by natural or artificial events (like natural disasters) events (like riots, war, etc.) that can affect demand.

Small Business Industry

Characteristics of the Tourism Industry

The Department of Tourism has reported that about 70% of the businesses in the tourism sector employ less than ten employees making this a classic small business industry. The nature of the business and the ease of entry are the primary reasons why it is a small business industry.

Private Sector Driven

Characteristics of the Tourism Industry

The governments usually run marketing campaigns to build tourist interest in the destination as well as the development of the infrastructure (like roads, airports, management of national parks, etc.) but other than that; there is very little assistance that they provide. So the business owner has to design his own tour packages and conduct the tours themselves; thus, they take care of the business themselves.

Decentralized Industry

Characteristics of the Tourism Industry

Several different services fall under the ambit of the tourism industry. Also, there are a number of different service providers offering different services. Apart from this, for different locations, the services and service providers are also different. Thus making the industry very decentralized with players of all sizes.

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UGC NET Tourism Administration and Management Syllabus 2024 PDF Download in Hindi & English

UGC NET Tourism Administration and Management Syllabus 2024 has been released on official website. Download PDF in Hindi & English in below article for UGC NET Tourism Administration Syllabus 2024

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UGC NET Tourism Administration and Management Syllabus 2024 has been released on the official website of NTA. Candidate must know about the NET Syllabus for Tourism Administration and Management Subject through below article before starting to prepare for the examination. The UGC NET Tourism Administration and Management exam is a nationally recognized assessment conducted by the University Grants Commission (UGC) of India, aimed at evaluating the eligibility of candidates for the role of Assistant Professor and awarding Junior Research Fellowship (JRF) in the field of Tourism Administration and Management.

UGC NET Tourism Administration and Management Syllabus 2024

UGC NET exam assesses candidates’ understanding of various concepts, theories, and practices relevant to tourism, hospitality, and destination management, encompassing areas such as tourism planning, marketing, sustainability, cultural heritage, and policy frameworks. With a focus on both theoretical knowledge and practical applications, UGC NET Tourism Administration and Management serves as a crucial platform for aspiring academics and researchers seeking to contribute to the advancement and sustainability of the tourism industry.

UGC NET Tourism Administration and Management Exam Pattern

The UGC NET Exam for Tourism Administration and Management Subject consists of two papers, each with its distinct focus and structure. Paper 1 evaluates candidates’ teaching and research aptitude through 50 multiple-choice questions, covering areas such as comprehension, reasoning ability, and general awareness.

Each question carries 2 marks, amounting to a total of 100 marks, to be completed within a duration of 1 hour. In contrast, Paper 2 specifically targets Tourism Administration and Management, comprising 100 multiple-choice questions assessing candidates’ knowledge of tourism-related concepts, policies, and practices. Each question in Paper 2 also carries 2 marks, with a total of 200 marks for the paper.

UGC NET Tourism Administration and Management Syllabus Paper 2 Topics

The unit wise and topic wise UGC NET Syllabus for Tourism Administration and Management Subject has been provided below.

  • Tourist/ visitor/ traveler/ excursionist – Definitions and Differences
  • Meaning and Nature of Tourism Industry, Input and Output of Tourism Industry
  • Role and functions of Important Tourism Organizations in development and promotion of Tourism
  • Earth’s movement
  • World Geography
  • Tourists Movement
  • Nature and Characteristic of Tourism Products of India
  • Major National Parks, Wildlife Sanctuaries and Biosphere reserves of India and their Locations
  • Beach Resorts of India – Locations, Accessibility, Facilities, Amenities
  • Transportation – Evolution and importance of Transportation Systems
  • Licensing of air carriers
  • Surface Transport System – Approved tourist transport
  • Historical Background of Travel Trade
  • Types of Itinerary – Resources and Steps for Itinerary Planning
  • Familiarization with TIM
  • Distinctive characteristics of Hospitality Industry – Inflexibility, Intangibility, Perishability, fixed location, relatively large financial investment etc
  • Duties and responsibilities of front office staff; Reservation & registration
  • Food Production Organization
  • Concept of Goods & Services
  • P’s of Tourism Marketing
  • Destination Image Development – Attributes of Destinations

Unit – VIII

  • Tourism planning
  • Tourism Policy – Factors influencing tourism policy
  • Economic System and Its Impact on Tourism Development
  • Research and theory
  • Analysis, tools- Factor analysis
  • Managerial processes
  • Understanding & Managing Individual & Group Behaviour
  • Basic Accounting Records and Books of Accounts

Download UGC NET Tourism Administration and Management Syllabus PDF

The syllabus for UGC NET Tourism Administration and Management Subject has been provided below. Candidate can Download UGC NET Tourism Administration and Management Syllabus PDF in below article.

UGC NET Tourism Administration and Management Passing Marks

The UGC NET exam has a minimum qualifying mark, not a strict passing mark. This means there’s a cut-off score you need to meet in order to qualify for the next stage of the selection process.

The minimum qualifying marks for UGC NET are the same for both Paper 1 and Paper 2. They are:

  • General Category: 40%
  • Reserved Category (SC/ST/OBC/PWD): 35%

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A technological tool for effective communication between the leading players in the Moscow tourism market and representatives of the foreign/regional tourism industry through online events. OBJECTIVES: • Building long-term cooperation with foreign/regional representatives • Raising awareness among foreign/regional representatives of the tourism industry of the tourism opportunities, measures and attractiveness of the city of Moscow in the field of tourist infrastructure development

Moscow City Tourism Committee

The Tourism Committee, or Mostourism, is the executive body of the Moscow City Government that oversees tourist activities in the capital. The Committee is responsible for legislative initiatives, congress and exhibition activities, and event and image projects. As the brand manager for an attractive tourism image for Moscow, Mostourism constantly analyses global trends, offers Russian and foreign tourists what they want, and also uncovers new opportunities for the capital in terms of interesting and rewarding leisure activities.

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Moscow city tourism committee organizes conference for indian mice market stakeholders.

Moscow City Tourism Committee organizes conference for Indian MICE market stakeholders

New Delhi [India], April 24 (ANI): Recognising market demand, the Moscow City Tourism Committee organized a conference for representatives of the Indian MICE industry, to introduce them to the tourism strengths of the Russian capital.

MICE stands for Meetings, Incentives, Conferences and Exhibitions, and is a type of tourism in which large groups, usually plan things well in advance.

The event took place on April 19 in Delhi and brought together over 100 participants from MICE agencies of both countries, corporate customers, representatives of the travel industry in Moscow, Aeroflot and the Indian branches of Sberbank.

Business tourism is one of the most promising directions for Moscow.

In 2023, the capital was visited by 3.7 million business tourists - 7 per cent more than in 2022. And India remains one of the leaders among visitors from non-CIS countries in terms of the number of business travellers.

"The Russian capital as a centre of business tourism and corporate events is already an established and a strong brand in the international arena," commented Anastasia Popova, Deputy General Director for International and Industry Cooperation of Project Office for the Development of Tourism and Hospitality in Moscow.

"Now our task is to demonstrate to our Indian partners all the possibilities of organizing high-value MICE events in Moscow in combination with already proven tourist programs," said Popova.

At the Shaping MICE Future Conference, industry experts from Russia and India pronounced statements and speeches on the future of MICE events in these two countries, a presentation of the MICE potential of Moscow was showcased, and an analytical report on the state of the outbound MICE market in India was presented to the visitors.

During the panel discussion, participants assessed the current status and interaction peculiarities with the MICE market in India and developed recommendations for the MICE industry in Moscow during the general brainstorming session.

Representatives of the Indian MICE industry participated in B2B negotiations to find new cross-partners in the Moscow business environment and among representatives of the hospitality industry.

Representatives of the MICE industry took part in the event from Moscow.

Among them were DMC (Grand Rus, Academservice, Headed Goose, Satguru Travel, Isba Rus, Hug the Bear, Mellenium Group) as well as representatives of other partners interested in the development of MICE cooperation between Russia and India: Global transfers provider i'way and hotels Edge Seligerskaya and Edge Vinogradovo Moscow by Rotana.

"In 2024, we have witnessed a significant surge (more than quadruple) in the demand for transfers by Russians visiting India, both for business and leisure purposes. Muscovites are leading the trend, with 80 per cent of transfer bookings originating from the capital since the beginning of the year. Additionally, we observe a growing interest from Indian tourism agencies in exploring Russia, resulting in a substantial increase in our collaboration," commented Dmitriy Saraykin, co-founder of Global Transfer Provider i'way.

The Shaping MICE Future conference allowed the Moscow City Tourism Committee to form a pool of MICE industry representatives in Moscow to prioritize incoming requests for events and clarify India's requirements for business and corporate events to build mutually effective work. Indian colleagues received up-to-date information about Moscow as a safe and attractive MICE destination and were able to find potential partners among representatives of the MICE industry of the Russian capital and were able to present the MICE market in India.

"The event served as a remarkable platform for fostering meaningful dialogue and collaboration within the tourism industry. The event provided us with invaluable opportunities to engage with key stakeholders from the tourism department, as well as tour operators and service providers. The insights gained during the event underscored the Moscow City Tourism Committee's keen interest in the Indian outbound market, and we are optimistic about the promising prospects for Moscow as a destination, particularly in the post-pandemic landscape. We firmly believe that with concerted efforts and strategic initiatives, Moscow has the potential to emerge as a top-choice destination for Indian tourists," said Mudit Mathur, director of Tours Delite India, representing Academ Service - Russia in India.

The conference also assessed the solutions to foreign demand for non-standard venues and elements in MICE programs, such as museums, parks, theaters and others. Holding MICE events at offbeat locations, such as the State Historical Museum, the Moscow Planetarium and Khudozhestvenny Cinema, is becoming popular.

ANI 25th April 2024, 03:27 GMT+10

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Moscow City Tourism Committee organizes conference for Indian MICE market stakeholders

Recognising market demand, the moscow city tourism committee organized a conference for representatives of the indian mice industry, to introduce them to the tourism strengths of the russian capital..

Moscow City Tourism Committee organizes conference for Indian MICE market stakeholders

Recognising market demand, the Moscow City Tourism Committee organized a conference for representatives of the Indian MICE industry, to introduce them to the tourism strengths of the Russian capital. MICE stands for Meetings, Incentives, Conferences and Exhibitions, and is a type of tourism in which large groups, usually plan things well in advance.

The event took place on April 19 in Delhi and brought together over 100 participants from MICE agencies of both countries, corporate customers, representatives of the travel industry in Moscow, Aeroflot and the Indian branches of Sberbank. Business tourism is one of the most promising directions for Moscow.

In 2023, the capital was visited by 3.7 million business tourists - 7 per cent more than in 2022. And India remains one of the leaders among visitors from non-CIS countries in terms of the number of business travellers. "The Russian capital as a centre of business tourism and corporate events is already an established and a strong brand in the international arena," commented Anastasia Popova, Deputy General Director for International and Industry Cooperation of Project Office for the Development of Tourism and Hospitality in Moscow.

"Now our task is to demonstrate to our Indian partners all the possibilities of organizing high-value MICE events in Moscow in combination with already proven tourist programs," said Popova. At the Shaping MICE Future Conference, industry experts from Russia and India pronounced statements and speeches on the future of MICE events in these two countries, a presentation of the MICE potential of Moscow was showcased, and an analytical report on the state of the outbound MICE market in India was presented to the visitors.

During the panel discussion, participants assessed the current status and interaction peculiarities with the MICE market in India and developed recommendations for the MICE industry in Moscow during the general brainstorming session. Representatives of the Indian MICE industry participated in B2B negotiations to find new cross-partners in the Moscow business environment and among representatives of the hospitality industry.

Representatives of the MICE industry took part in the event from Moscow. Among them were DMC (Grand Rus, Academservice, Headed Goose, Satguru Travel, Isba Rus, Hug the Bear, Mellenium Group) as well as representatives of other partners interested in the development of MICE cooperation between Russia and India: Global transfers provider i'way and hotels Edge Seligerskaya and Edge Vinogradovo Moscow by Rotana.

"In 2024, we have witnessed a significant surge (more than quadruple) in the demand for transfers by Russians visiting India, both for business and leisure purposes. Muscovites are leading the trend, with 80 per cent of transfer bookings originating from the capital since the beginning of the year. Additionally, we observe a growing interest from Indian tourism agencies in exploring Russia, resulting in a substantial increase in our collaboration," commented Dmitriy Saraykin, co-founder of Global Transfer Provider i'way. The Shaping MICE Future conference allowed the Moscow City Tourism Committee to form a pool of MICE industry representatives in Moscow to prioritize incoming requests for events and clarify India's requirements for business and corporate events to build mutually effective work. Indian colleagues received up-to-date information about Moscow as a safe and attractive MICE destination and were able to find potential partners among representatives of the MICE industry of the Russian capital and were able to present the MICE market in India.

"The event served as a remarkable platform for fostering meaningful dialogue and collaboration within the tourism industry. The event provided us with invaluable opportunities to engage with key stakeholders from the tourism department, as well as tour operators and service providers. The insights gained during the event underscored the Moscow City Tourism Committee's keen interest in the Indian outbound market, and we are optimistic about the promising prospects for Moscow as a destination, particularly in the post-pandemic landscape. We firmly believe that with concerted efforts and strategic initiatives, Moscow has the potential to emerge as a top-choice destination for Indian tourists," said Mudit Mathur, director of Tours Delite India, representing Academ Service - Russia in India. The conference also assessed the solutions to foreign demand for non-standard venues and elements in MICE programs, such as museums, parks, theaters and others. Holding MICE events at offbeat locations, such as the State Historical Museum, the Moscow Planetarium and Khudozhestvenny Cinema, is becoming popular.

This helps to attract conference organizers and creates a unique experience for the participants. Working in this format, many visitors who come to Moscow on a business trip want to return with their families and spend time as regular tourists. (ANI)

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  1. What Is Perishability In Tourism

    Perishability is a significant challenge in the tourism industry, but it can be effectively managed through strategic measures. Understanding the concept of perishability and its impact on tourism businesses is crucial to developing strategies that optimize revenue and enhance customer satisfaction.

  2. What Is Perishable in Tourism?

    Perishability is a fundamental concept in the tourism industry. It means that travel products have a limited shelf life. For example, if an airline flight takes off with empty seats, the lost revenue cannot be recouped. Similarly, if a hotel room remains vacant for a night, that room's revenue potential is lost forever.

  3. What Is Perishability in Tourism and Hospitality?

    By Michael Ferguson. Perishability is a vital concept in the tourism and hospitality industry. It refers to the fact that services and goods in this industry are highly time-sensitive and cannot be stored for future use. In other words, if a hotel room or an airline seat goes unsold for a particular date, it is lost revenue that can never be ...

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    Perishability describes offerings that cannot be saved, stored, resold or returned. (Kotler, Bowen, Makens, & Baloglu, 2017: 366). ... In the tourism industry, this means that consumer expectations must be met without any unwanted surprises (Kotler et al., 2017: 40). For instance, a hotel must keep its promise of delivering breakfast to a room ...

  5. What Is Perishability in Tourism and Hospitality Industry?

    By Alice Nichols. Perishability is a common concept in the tourism and hospitality industry. It refers to the idea that services offered in this industry cannot be stored, saved or reused for future use. Once an opportunity to sell a service is lost, it cannot be regained, which makes it a crucial factor in the revenue management of hotels ...

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    Service failures and recoveries have important implications for hospitality and tourism businesses, not only due to general service characteristics of inseparability, heterogeneity and perishability, but also due to the interactions between service employees and customers. This review paper shows that the study of service failures and recovery ...

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    Perishability in travel and tourism refers to the fact that tourism products cannot be stored for future sales or use. If a flight departs with empty seats or a hotel room stays vacant for a night, that revenue opportunity is lost forever. It's a unique characteristic of the tourism industry and it presents a significant challenge for ...

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    Tourism is often cited as being an industry that is in some way different from others and consequently requires separate study (e.g., Tribe, 1997, Airey and Johnson, 1999, Airey et al., 2015). The growth of degree courses around the world over the last thirty years focusing on tourism (and allied fields), are testimony to a recognition of its ...

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    The International Air Transport Association (IATA) forecasts a 50.4% improvement on 2020 air travel demand, which would bring the industry to 50.6% of 2019 levels. However, a more pessimistic outlook based on the persistence of travel restrictions suggests that demand may only pick up by 13% this year, leaving the industry at 38% of 2019 levels.

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    Perishability plays the most significant characteristic in the tourism industry. The product or services in the tourism and travel industry are been availed as they are produced. Usually, the service can't be stored as they are highly perishable. When the room in the hotel is not reserved tonight, you can't take 'tonight' and sell it ...

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    Perishability of Tourism Product. A tourism product is perishable in the sense that, unlike a can of beans, it cannot be stored away for future sale if it does not sell the first time (Weaver and Lawton, 2006, p. 207). Tourists, for example, may stay away from a seaside resort when the weather is bad in a season when the weather is usually good.

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    This paper uses exploratory study from 46 articles published in journals as well as conference proceedings. The result found that the characteristics of tourism product are adopted from service products. Service characteristics are based on IHIP (Inseparability, Heterogeneity, Intangibility, and Perishability).

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    Inseparability. Characteristics of the Tourism Industry 3. Many tangible products are produced at one place and time and then consumed in another place at another time. But most travel-related products are both made and consumed at the same time and in the same place. For example, a tourist experiences a wildlife safari while the safari is ...

  20. UGC NET Tourism Administration and Management Syllabus 2024 ...

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  24. Moscow City Tourism Committee organizes conference for Indian MICE

    New Delhi [India], April 24 (ANI): Recognising market demand, the Moscow City Tourism Committee organized a conference for representatives of the Indian MICE industry, to introduce them to the tourism strengths of the Russian capital. MICE stands for Meetings, Incentives, Conferences and Exhibitions ...

  25. Moscow City Tourism Committee organizes conference for Indian MICE

    Recognising market demand, the Moscow City Tourism Committee organized a conference for representatives of the Indian MICE industry, to introduce them to the tourism strengths of the Russian capital. MICE stands for Meetings, Incentives, Conferences and Exhibitions, and is a type of tourism in which large groups, usually plan things well in ...