11 tourism demand trends
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Monday, April 10, 2023 Dr. Nimit Chowdhary
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Tour Guiding Series
Tourism demand trends
Dr. Nimit Chowdhary Professor
Indian Institute of Tourism and Travel Management
Monday, April 10, 2023 Dr. Nimit Chowdhary
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Tour Guiding Series
Changing face of travel consumer
• More affluent, measured in disposable income per capita, ownership of property and household facilities.
• Better educated and more interested in continuing education.
• More healthy and interested in more active pursuits.
• Older, with a particular shift in the number and attitudes of the more active over-fifties.
Monday, April 10, 2023 Dr. Nimit Chowdhary
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Changing face of travel consumer
• More leisured in terms of hours of work and holiday entitlement, having regard also to early retirement.
• More traveled, for work and business as well as for holidays and leisure, increasing numbers with frequent international travel experience.
• More exposed to the media and information generally
Monday, April 10, 2023 Dr. Nimit Chowdhary
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Changing face of travel consumer
• More computer literate with ownership of personal computers (PCs) and access to internet growing exponentially.
• More heterogeneous and individualistic in their demands and expectations.
• More culturally diverse in terms of ethnic origin as well as their range of lifestyle choices.
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Determinants of tourism demand
• Economic factors and comparative prices• Demographic, including education• Geographic• Socio-cultural attitudes to tourism• Mobility• Government/ regulatory• Media communications• Information and communication
technology
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Economic factors
• 30 major countries of origin accounted for over 90% of world traveling spending
• Top 10 alone account for 2/3rd of spending and nights.
• These are countries with highest per capita income.
• Developed and growing economies also sustain business travel and trips (more than 50%)
Monday, April 10, 2023 Dr. Nimit Chowdhary
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Tour Guiding Series
Economic factors
• Relationship between changes in real disposable incomes and volume of trips and expenditure away from home.
• Increase in real incomes since 1990s has led to increase in expenditure on travel and tourism (income elasticity) .
• China and India are fast emerging as tourism markets and suppliers owing to rapid economic growth
Monday, April 10, 2023 Dr. Nimit Chowdhary
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Tour Guiding Series
Economic factors
• Comparative prices are a major determinant of volume of demand.
• Price is cost to customers in terms of money, time and effort.
• Spending will depend upon comparative price and disposable income of tourist.
• East Asia, China and BRIC are therefore increasingly attracting more tourists.
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Demographic factors
• Developed world- one- and two- person household, late marriages, with fewer children– Divorce, single parent, – Small households means more households – Affluent old age people (26% Europeans are
over 50 years of age)
• Developing world- greater women involvement, two-income households, more disposable incomes
Monday, April 10, 2023 Dr. Nimit Chowdhary
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Tour Guiding Series
Demographic factors
• Rise in life expectancy– Greater proportion of older population– New demand for leisure and travel– Health care and nursing– Quality of life
• Structural shifts in communities– Development of new towns and cities
• Education- higher the education, more the amount of travel
Monday, April 10, 2023 Dr. Nimit Chowdhary
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Tour Guiding Series
Geographic factors
• Climatic and scenic attractions• Willingness and affordability to demand
destination of choice.• Urban areas generate more tourism
compared to rural areas- for multiple reasons
• Geographical pockets of heritage, culture and arts offer tourism products
• Eco-tourism, and ecological constructs as tourism products
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Tour Guiding Series
Social factors
• Increased no. of women in work force
• Working women and resulting two-income households
• Quality of life
• International mobility leads to more sophisticated consumer tastes
• Greater complexity of life
• Increased competition in life
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Changing attitudes
• Attitudes towards tourism are a subset of wider view on the desired quality of life and how to achieve it.
Examples of attitudes in America and Europe
• Therapeutic value in lying on the beech and sun
• Holidays are ‘rights’ and necessities for relieving stress rather than luxuries
Monday, April 10, 2023 Dr. Nimit Chowdhary
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Tour Guiding Series
Changing attitudes
Examples of attitudes in America and Europe
• Longer holiday entitlement in twentieth century has lead to consumers taking several holidays in a year
• Scandinavia & N. Europe- people having a second home
• That holiday products should be environmentally sustainable
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Tour Guiding Series
Personal mobility factor
• Superior roads and infrastructure• More people having cars and four wheelers• Most hotels, nearly all self-catering
establishments, restaurants, and great majority of visitor attractions and entertainment in America and Europe are dependent on travelers by car
• Congestion has increased and governments are favoring public transport
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Tour Guiding Series
Government/ regulatory framework
All governments impose laws and regulations to safeguard health and safety of their populations and to control the use of land and buildings; most impose penalties for non-compliance
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Government/ regulatory framework
Governments intervene:• To ensure fair competition between
supplier- check monopolistic tendencies• To ensure that customers have choices
and rights against suppliers• To influence such market patterns as
governments control- timing of holiday• To ensure that proposed projects do not
damage the environment
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Tour Guiding Series
Government/ regulatory framework
Politico-legal changes:
• Governments creating infrastructure for services (led by EU)
• Internationalization
• Governments consciously (rather aggressively) promoting tourism
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Tour Guiding Series
Government/ regulatory framework
Transport regulation
• Air transport– What routes can be flown
– Which Airline can fly, number of flights, slots available at airports, the capacity of seats on routes, prices that can be charged
• Bi-lateral agreements between countries
• Asian highway project
• Train and rail link with Pakistan
• Rights to sell ‘duty free’ items
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Tour Guiding Series
Government/ regulatory framework
Tour operations and hotels• Regulatory framework
• Licensing of tour operators and hotels
• Licensing for bar
• Example of Bhutan
• Taxation
• Control and grading of hotels
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Government/ regulatory framework
• Regulation for the environment
• CRS
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Information and communication technology
• Increasing promotion and distribution of products on www.
• Multimedia information provision in customers’ homes enhancing promotional possibilities
• Switch to direct marketing, reducing the traditional role of travel intermediaries
• Customer database development and its role in marketing information systems
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Tour Guiding Series
Information and communication technology
• Power to develop customized products for consumers
• Relationship marketing with repeat buyers and other targeted customers/ stakeholders
• Creation of virtual enterprises- “Make my trip”, networks of micro-businesses
• Major opportunities for access to international markets at low costs
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Tour Guiding Series
Travel propensity
Low propensity characteristics
High propensity characteristics
• Low income per household
• High income per household
• Single parent household
• Two parents (employed) household
• Rural-community dweller
• Large-city dweller
• Educated to minimum age
• Degree or other higher education level
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Tour Guiding Series
Travel propensity
Low propensity characteristics
High propensity characteristics
• Older people (80+) • Young people and ‘empty nesters’
• No access to private transport
• Two or more cars in the household
• Three or less weeks’ paid holiday
• Six or more weeks’ paid holiday
• No access to internet
• Access at work and at home