tourism product and resources

Tourism and Hospitality Products, Branding, and Pricing

• First Online: 09 May 2021

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• Richard George 2  

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This chapter explores how marketers design and manage tourism and hospitality products. It begins with definitions for the terms “product”, “offering”, and “product mix”. It the chapter explains that the product is a complex concept that should be considered on three levels. These are the core, expected, and augmented product. Next, the product life cycle concept is discussed and how it is used by the tourism marketer to assess the development of tourism products. Next, the steps involved in the process of developing a new product are considered. In the second section of the chapter, the role of branding in the tourism and hospitality industry is discussed. The third section of the chapter considers the price component of the marketing mix. The factors that affect the pricing of tourism and hospitality products and the various pricing strategies available to the tourism and hospitality marketer are analysed. Next, several pricing approaches used in the tourism industry are considered. The chapter concludes by outlining the characteristics of tourism and hospitality products in relation to price. Last, the chapter’s in-depth case study demonstrates the principles of pricing as applied to medical tourism company MakeOvertour , based in Turkey.

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George, R. (2021). Tourism and Hospitality Products, Branding, and Pricing. In: Marketing Tourism and Hospitality. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-64111-5_8

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Please note you do not have access to teaching notes, responsible sustainable tourism product planning and design for recovery.

Resilient and Sustainable Destinations After Disaster

ISBN : 978-1-80382-022-4 , eISBN : 978-1-80382-021-7

Publication date: 16 August 2023

Tourism product designing is a process of integrating all the components of a tourism product, i.e., the 5 A's: Attraction, Accommodation, Accessibility, Amenities, and Activities. The lack of awareness and unaccountability of mass tourism has demanded the need for “Responsible and Accountable Tourism, calling for better places to live and visit.” However, due to the COVID-19 pandemic restrictions on mass travel, “Mother Earth” got the opportunity of environmental restoration. The tourism business was badly hit by the pandemic and created an introspection phase for the tourism stakeholders to control and check their activities for a better global recovery. The responsible tourism product development in this VUCA (volatile, uncertain, complex, ambiguous) world needs controlled planning and a duty-bound PPP (Public–Private Partnership) model. A scoping review was done to analyze the planning process of the responsible sustainable tourism product. It was observed that all the stakeholders involved in tourism product development need to understand their accountability. Local host communities and tourists visiting the destinations should be culturally and environmentally sensitive. They should be involved in decision-making during the tourism product development and be pride bearers. The responsibility of the various tourism agencies, organizations, and individuals toward minimizing the impact of carbon footprints is evident from various research.

• Product planning
• Product design
• Sustainability framework
• Tourist responsibility
• Tourist behavior
• Stakeholders

Jamgade, S. and Mondal, P. (2023), "Responsible Sustainable Tourism Product Planning and Design for Recovery", Kumar, J. , Bayram, G.E. and Sharma, A. (Ed.) Resilient and Sustainable Destinations After Disaster ( Tourism Security-Safety and Post Conflict Destinations ), Emerald Publishing Limited, Leeds, pp. 179-193. https://doi.org/10.1108/978-1-80382-021-720231013

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What is Tourism Product? Definition, Types, Characteristics

• Post last modified: 3 October 2021
• Reading time: 14 mins read
• Post category: Uncategorized

What is Tourism Product?

Tourism Products are a combination of goods and services demanded by a tourist during travel to and stay at a destination. These include natural, cultural and manmade attractions and facilities such as hotels, transport and ancillary services.

In this process, tourists derive an experience which varies from individual to individual. From a broader perspective, the sum total of experiences derived by the tourists during the entire trip can be considered as the product.

Table of Content

• 1 What is Tourism Product?
• 2 Definition of Tourism Product
• 3.1 Natural Tourism Product
• 3.2 Man-Made Tourism Product
• 3.3 Symbiotic Tourism Product
• 3.4 Event Based Tourism
• 3.5 Site Based Tourism Product
• 4.1 Intangibility
• 4.2 Inseperatability
• 4.3 Perishability
• 4.4 Heterogeneity
• 4.5 Essentially of Users Presence
• 4.6 Complexity in Marketing
• 4.7 Absence of Ownership

Definition of Tourism Product

Burkat and Medlik say tourism products to an array of integrated products, which consist of objects and attractions, transportation, accommodation and entertainment, where each element of the tourism product is prepared by individual companies and are offered separately to consumers (tourist/tourist).

The tourism “product” is not the destination, but it is about the experiences of that place and what happens there. – Chris Ryan

Economist M. Sinclair and Mike Stabler define the tourism product as a “composite product involving transport, accommodation, catering, natural resources, entertainment and other facilities and services, such as shops and banks, travel agents and tour operators.”

According to Suswantoro (2007:75) on substantially the understanding of tourism products “is obtained and the overall service felt or enjoyed by tourists since he left his residence to the tourist destination of his choice and to return home where she originally departed”.

Types of Tourism Products

Following figure describes the classification of Tourism Product:

Natural Tourism Product

Man-made tourism product, symbiotic tourism product, event based tourism, site based tourism product.

These are the products connected to the natural environment. Natural environment that constitutes natural resources which is related to area, climate and its settings, and the landscapes. These natural resources are the most important elements in a destination’s attraction. Such as countryside, climate, natural beauty, water, flora and fauna, wildlife, beaches, deserts, islands or any scenic attraction.

Some examples of natural tourism products in India are Marina beach- Chennai, Darjeeling hill station-West Bengal, Islands of Andaman & Nicobar- Andaman & Nicobar, Deserts of Thar-Rajasthan, etc

Something which is not natural, found in the destinations to attract the tourists. These are man-made creations. As per the tourism point of view they are made for pleasure, leisure or business.

Man-made tourism products are further divided into three subtypes:

• Sites and areas of archaeological interest
• Historical buildings and monuments
• Places of historical significance l museums and art galleries
• Political and educational institutions
• Religious institutions
• Fairs and festivals
• Arts and handicrafts
• Folklore l native life and customs
• Amusement and recreation parks
• Sporting events
• Zoos and oceanariums
• Cinemas and theatres
• Night life l cuisines

Examples of Man-made tourism products are Ajanta and Ellora cave-Maharashtra (Cultural), Surajkund Craft Mela-Haryana (Traditional), Essel World-Mumbai, etc

This type of tourism product do not fall in any particular category because they are a blend of nature and man but the core attraction is nature. These are the natural resource that has been converted into a tourism product by maintaining and managing them.

In other words man has taken initiative to preserve the natural aspects of earth and also managed in a way to provide best possible services to the tourists who come for the visit, for example, accommodation, parking facilities, etc. Some examples are National Park or Wildlife Sanctuaries, Flower Festival, Marine Park, Aero and Water Sports, Botanical Garden etc.

In India, there are many national parks like Ranthambhore-Rajasthan, where tigers and many animals are preserved and tourists are given facilities like a jungle safari.

Product Here event is the main source of attraction. Tourist comes to observe and participate in the events. Events are temporary in nature and are often mounted in order to increase the number of tourists to a particular destination.

Some events are for a short time scale while other last for longer days. Sometimes events are mounted in those places where the tourist’s eye usually don’t reach such as unusual exhibitions.

Some examples of event-based tourism product include Camel Polo at Jaisalmer- Rajasthan, Kite flying in Ahmedabad-Gujarat, where tourists also participate and observes. In Snake boat race-Kerela, one can enjoy witnessing it. Short time scale event includes Republic day parade-New Delhi and long days event include Khajuraho dance festival-Madhya Pradesh.

It is a particular site or a place, permanent in nature which is the main source of attraction for the tourists. In India examples are like Taj Mahal, Beaches of Goa, Sunset at Kanyakumari, Temples of Khajuraho, etc.

Characteristics of Tourism Product

Following are the main characteristics of tourism products:

Intangibility

Inseperatability, perishability, heterogeneity, essentially of users presence, complexity in marketing, absence of ownership.

As discussed earlier in this chapter, tourism products are actually the services that are being sold to the tourists, and it’s not the goods. Services can’t be seen, smelled, felt or touched, it can only be experienced. What can be seen is their effect.

For example, a guide’s comments can be heard. A travel agents books a ticket from place A to B. The ticket is just a piece of paper, an entry pass for using the service. An airline provides the service of transportation, comfort and leisure. A thorough evaluation of the service before buying it is therefore impossible and leads customers to use other cues to help them assess the service like the interior of the restaurant, the appearance of the hotel entrance or the behaviour of the receptionist.

A service of a tourism product cannot be separated from the provider of the service. For most services, the producer and the seller are the same people. Services are manufactured and consumed at the same time. In the case of products, consumption takes place after production and often far away from the factory.

In the case of tourism products for example a guide has to be present to explain the attraction. A pilot has to be present to fly a plane. Both service providers and the service user have to be physically present for mutually satisfying the exchange of service. The visitor to a national park cannot experience counter service if the receptionist is not present, nor can the receptionist render the service is the visitor is absent.

The tourism product is highly perishable, which means it cannot be stored. For example, a hotel room or an aeroplane seat that is not sold on a particular day, is a lost sale. If the tourists don’t visit a particular place, the opportunity is lost. If the opportunity is lost, the moment is lost. This adversely affects the tourism business.

The demand has to be managed by the marketer in such a way as to ensure that as little capacity as possible is lost. The problem is unique for the tourism industry. Due to these reason sometimes heavy discount is offered by hotels or transport generating organization.

Services offered by most people are never the same. There is some degree of variability present in almost all types of services. This may be due to the extensive involvement of people in the production of service. This issue is not present when a machine dominates. Depending on the mood, behaviour, working style, efficiency and knowledge of the people variability exist.

For example, all air hostesses cannot provide the same quality service like the other. Yet again the same individual air hostess may not perform the same uniform service both in the morning as well as in the evening.

Even the tour package and the aircraft can’t be consistent of equal standards because an aircraft can de-shape the travelling pleasure into a nightmare and a holiday seaside is ruined by the prolonged rainy spell.

Another reason for variability of service is the involvement of customers in the process of product delivery and consumption system. For example, a musician performing at a program may not perform with uniformity. His performance will depend on the response and appreciation of the audience. Hence service varies from person to person, time to time and from situation to situation.

In travel and tourism businesses, service quality depends on uncontrollable factors and there is no sure way of knowing whether the service delivered matched what was planned or promoted, or what was expected by the customer.

Presence of the user is necessary to avail the service. The customer or the guest has to be personally present on the spot. It can’t be brought to the user. As in the case of other tangible goods, the buyer can avail the service from anywhere or from his home. But in the case of tourism products, it is not at all possible. The tourist has to go to the tourist attraction to experience the tour.

However the marketers here need an in-depth study of users behaviour, tastes, preferences, likes and dislikes so that expectations and realities coincide and satisfaction is made possible.

Tourism product involves complexity in marketing. It requires a lot of effort to convince a buyer. As in the case of travel agents. In order to sell their tour package they need to convince the customer by introducing various facilities, discounts and services. Product demonstration is bit difficult in the case of tourism product.

As in the case of tangible goods like television. As soon as we buy it, we become the owner of it. But this is not the case with tourism products. A tourism product when sold to the customer or tourist, he can only avail the service but can’t be its owner.

For example, while buying a hotel room, while buying a seat in an aircraft or a luxurious train, you can only take the facilities of the service for a certain time. You can’t be its owner for lifelong.

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Business tourist flow from India to Moscow on the rise: Evgeny Kozlov

Business + Leisure Travel and MICE 2023 opened on 29 th of September with a keynote speech from the Chairman of The Moscow City Tourism Committee, Evgeny Kozlov. In his speech, the Chairman spoke about the potential for MICE and business tourism in Moscow and the growing number of Indian businessmen who are choosing Moscow as their preferred destination for business events.

Evgeny Kozlov highlighted that the number of business tourists is expected to grow in the coming years. One of the factors supporting the growth of interest from Indian businessmen was the launch of electronic visa program. From August 1, 2023, it has become easier for Indian citizens to organize a trip to Moscow – they can come simply by applying for an electronic visa. The validity period of an e-visa is 60 days from the date of its issuance. You can stay with it in Russia for 16 days. An e-visa has several advantages over a traditional visa. To obtain it, you do not need to go to consulates or embassies, and the only documents required are a digital photograph of your face and a scan of the page with your passport data.

“Before the pandemic, the tourist flow from India grew by 12-15 percent annually. Now we are on the road to recovery – all the conditions have been created for this. Every year hundreds of international exhibitions, forums, congresses and conferences are held in Moscow. Over the past year, about 3.5 million people visited the capital for business purposes and a significant share of them are from India” – he said.

Evgeny Kozlov emphasized that Moscow is a growing hub for international business events and Indian businessmen could benefit from attending these events to expand their network and explore potential business opportunities. The Moscow MICE Ambassadors program, which also premiered at the exhibition, aims to promote Moscow as a preferred destination for business tourism, and Indian businessmen who have completed the program can serve as valuable resources for organizing conferences and events in Moscow. Furthermore, Moscow offers a range of world-class facilities and services for business travelers, including conference centers, hotels, transportation, and sightseeing. He also mentioned that Moscow’s rich cultural heritage and vibrant nightlife could provide Indian businessmen with unique experiences that could enhance their overall business trip.

In conclusion, Evgeny Kozlov expressed his optimism for the future of MICE and business tourism in Moscow. Thus, in October 2023, Moscow will host the largest MICE Congress in Russia. Among the participants are 14 countries, including Indians. The event will provide a platform for businesses in the travel and tourism industry to showcase their products and services.

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KM Malta To Focus On Key Hubs, Adding Premium Traffic

KM Malta's Frederic Revol, head of network and commercial partnerships for the new flag-carrier, on stage at Routes Europe 2024 in Aarhus, Denmark.

Malta’s new flag-carrier KM Malta Airlines will focus on increasing frequencies to core cities, rather than adding new destinations, as it seeks to capture more premium business and leisure traffic.

The airline took over services from its predecessor Air Malta on March 31, offering a slimmed-down network using a fleet of eight Airbus A320-family aircraft. The carrier is serving 17 destinations during the summer 2024 season, down from 23 Air Malta destinations during summer 2023 and 43 in summer 2019, before the pandemic.

Speaking at Routes Europe 2024 in Aarhus, Denmark, KM Malta's head of network and commercial partnerships, Frederic Revol, said the new airline has a more commercially efficient network than Air Malta, concentrating on connecting Malta to key European hubs.

“Our focus is on main capital cities and larger cities with strong connectivity,” Revol said. “We will not fly to airports mainly catering more toward low-cost operators—that is their business model, not ours. Our model is to go to the key airports.”

KM Malta’s network includes hubs like Amsterdam Schiphol, Brussels, London Heathrow, Munich, Paris Charles de Gaulle, Rome Fiumicino and Vienna. The summer schedule will comprise about 1.4 million seats, with 72 flights per week to Italy, 48 to France, 44 to the UK and 40 to Germany.

Revol said that by utilizing codeshare and interline partnerships across the 17 destinations, a virtual network encompassing 401 points within one stop of Malta is established. Approximately 150 of these points are considered feasible. Codeshares are already in place with the likes of Air France-KLM, Emirates, Lufthansa Group and Qatar Airways.

Revol said that Malta’s small size and population means it is crucial to rely on indirect connectivity from such airports: “We’re therefore not focused on adding more destinations, but adding more frequencies. Our aim is to go double-daily on some of the key destinations.” He added that this strategy should help to reduce seasonal spikes and position Malta as a year-round destination.

KM Malta’s fleet comprises six A320neos and two A320ceos. The ceos are expected to be phased out by mid-August and replaced by two more neos, meaning that from Sept. 1 the airline will have an all-A320neo fleet.

Revol explained that a key difference between KM Malta and Air Malta is the focus on premium business and leisure traffic—KM Malta operates a fleet with 36 business-class seats, compared with the 12 previously offered by Air Malta. “We're concentrating on routes with high demand for business class,” he said. “That's where the money is.”

KM Malta hopes to achieve a load factor of 90% this summer.

David Casey is Editor in Chief of Routes, the global route development community's trusted source for news and information.

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