DESINGED BY,DESINGED BY,
sunil kumarsunil kumar
Services and Products
Chapter ObjectivesChapter Objectives
To identify the charges in the leisure and business travel
markets that have facilitated the development of special
services and products
To identify some of the major special services and products
in the leisure and business travel markets
To understand the MICE market and the various specialized
roles that meeting planners, convention centers, events
managers, and convention and visitor bureaus play
Special Services and Products
•As the tourism industry has matured and tourists become more
knowledgeable and sophisticated special types of services and
products have developed to meet their travel needs.
•Both the leisure and business travel markets are affected by
these changes and pressures
•As great numbers of people travel, and the tourists look for
different travel experiences, new tourism products become
Special Segments of Leisure
Reasons for the growth
As tourism has grown and matured, it has become increasingly
sophisticated and creative
Tourists search more meaningful or intense experiences
Tourism suppliers are constantly innovating ways to differentiate
themselves from other suppliers
Accumulation of knowledge and experience enables suppliers to
modify and improve their products
Competitive pressure of the market
Ecotourism, also known as ecological tourism, is a form of
tourism that appeals to the ecologically and socially conscious
Gained much attention in recent years
Physical environment is the focus of the touristic
Provides a first-hand active experience of a place
Provides an educational experience
Develops visitors’ understanding and appreciation of the place
Promotes both appropriate behaviors and conservative ethic.
Environmentally responsible and uses various strategies to
minimize negative impacts
Maximizes local economic returns
Ecotourism destination countries and major
Costa Rica (cloud forests, turtles, swamps and volcanoes)
Belize (for its Mayan sites)
Brazil (national parks)
Ecuador (Galapagos Islands)
Kenya (wildlife reserves)
Nepal (mountain trekking)
Peru (bird watching)
South Africa (game and nature reserves)
Cultural tourism is the subset of tourism concerned with a country or
region's culture, especially its arts.
It focuses on traditional communities who have diverse customs,
unique form of art and distinct social practices, which basically
distinguishes it from other types/forms of culture
Cultural tourism includes tourism in urban areas, particularly historic or
large cities and their cultural facilities such as museums and theatres.
Also include tourism in rural areas showcasing the traditions of
indigenous cultural communities (i.e. festivals, rituals), and their values
It is generally agreed that cultural tourists spend substantially more than
standard tourists do.
This form of tourism is also becoming generally more popular
A type of cultural tourism in the U.S. is the Amish Community living in
Lancaster County, in PA
As the issue of globalization takes place, the challenge of preserving the
few remaining cultural community around the world is becoming hard.
The meeting between modern tourist and in the context of a tourist
experience can have significant impacts upon the local traditional
Cultural tourism and ecotourism are usually closely related
Rural tourism has focus on participating in rural lifestyle. It can be a
variant of ecotourism. The emphasis is on having an experience in
rural setting. It takes multitude of forms.
Rural tourism allows travelers to visit areas outside of urban areas
Options include hiking and biking, visiting community museums
and buying locally produced crafts.
An example of rural tourism is “farm tourism” as found in many
countries in Europe.
In Austria, there are about 21,000 farms providing about 109,000
rooms to farm tourists (1994).
In Northeast region of the U.S. many small inns often run as a
family business provide guests with a small-town experience.
Adventure tourism is a type of niche tourism involving exploration or
travel to remote, exotic and possibly hostile areas, where the traveler are
provided a challenge, thrill or intense experience.
Adventure tourism is rapidly growing in popularity as tourists seek
unusual holidays, different from the typical beach vacation.
"adventure travel" usually include two of the following three
components: a physical activity, a cultural exchange or interaction, and
engagement with nature.
In general, adventure tourism relies on natural, environmental features,
such as mountains, rivers, forests, and the like.
One of the most famous examples of adventure tourism has been the
hunting safari in Africa.
Another well-known form is mountain climbing.
Health tourism refers to travel to facilities and destinations for obtaining
health-care services or health-related benefits. It is a rapidly-growing
practice of traveling to another country to obtain health care.
Such services typically include elective procedures as well as complex
Medical tourism dates back thousands of years to when Greek
pilgrims traveled from all over the Mediterranean to the small territory in
the Saronic Gulf called Epidauria.
Spa towns may be considered an early form of medical tourism.
The three main forms of health tourism are:
Fitness and wellness
Rehabilitation and recuperation
Popular medical travel worldwide destinations include: India, Cuba,
Columbia, Hungary, Malaysia, The Philippines, Singapore, South Africa, and
New Age Tourism
People who consider themselves part of the New Age movement share a
belief in the importance of learning from ancient cultures, encompassing
spirituality, metaphysics, yoga, meditation, natural healing, herbology and
The sites visited in New Age tourism are in their very nature sacred sites
dating from the pre Christianity era, such as Stonehenge, the Easter
Islands, and the Great Pyramids in Egypt.
Another branch of New Age Tourism centers on physical health, offering
yoga, guided meditation, exercise, massage, and organic vegetarian and
other diets. Destinations such as Sedona, Arizona (U.S.), Bali [Indonesia)
or Dominica in the Caribbean are chosen for their natural attributes and
spiritual energy in healing.
The promise is that a natural approach to physical health leads to
spiritual health and fulfillment.
The term educational tourism generally refers to travel in which the
learning occurs within a structured or formal program.
A familiar and popular form of educational tourism is the “study abroad”
program, in which students attend schools or programs (usually for a
semester or academic year) in another location, often in a foreign country.
One of the most popular reasons for attending a foreign school is to
learn language and culture of the destination. Tours are centered around
significant historical, cultural, or scientific sites and are often led by a
teacher with expertise in the sites.
Special Segments of Business
MICE market (Meetings, Incentives, Conferences, and Exhibitions).
MICE is used to refer to a particular type of tourism which large groups,
usually planned well in advance, are brought together for some particular
MICE tourism usually includes a well-planned agenda centered around a
particular theme, such as a hobby, a profession, or an educational topic.
Meetings can be defined as events designed to bring people together or
the purpose of exchanging information.
Meetings held by corporations and other businesses are classified as
corporate meetings, while those held by associations are referred to as
Corporate meetings account for about 25 percent of the meetings
market, while organization meetings account for 75 percent.
A forum is a larger gathering at which issues of interest or concern to
the audience are discussed, often led by a panel and moderator, and with
opportunities for comments and questions from the audience.
Symposium is much like a forum, but generally refers to meetings where
the subject matter of the meetings is academic or technical in nature.
Incentive travel refers to the segment of business travel that uses the
allure of a trip as an incentive or reward for achievement.
A Typical example of incentive travel would be a company-paid
vacation to a resort for top-performing salespersons.
Sometimes this type of vacation will include motivational seminars,
morale-building activities, and other activities that build upon a gathering
Incentive trips also can include business-related group activities, such as
the introduction of new products or promotional campaigns, or training
programs for employees.
The term convention refers to an event that combines both meeting
The conventions market can be divided into those that are sponsored by
professional and trade associations, and those that are sponsored by
Conventions have the reputation for generating high expenditures on a
per visitor basis, as well as creating substantial economic impacts for the
The many different segments of the tourism industry that benefit from
convention expenditures include hotels, restaurants, car rental, ground
transportation, entertainment, and retail.
Conventions generate visitor activity, and revenues for hotels,
Large convention events bring prestige to a city.
Major Components of the MICE
Convention and Visitor Bureaus
Meeting planners are professional people given an overall responsibility
for a meeting, many of whom specialize in different types of meetings.
Some planners are independent businesses that perform their
services for client organizations.
Large organizations that hold meetings on a regular basis may employ
their own planners on staff.
The responsibilities of a planner will vary depending on the type of
meeting being planned, facilities being used, sponsoring or host
organization, and other variables.
Responsibilities of a Meeting
Selecting or providing options for a meeting site
Devising a marketing plan for the meeting, if necessary
Planning transportation to and from the site
Arranging for and reserving hotel rooms for the attendees
Working with the meeting facility personnel to plan layout of the
Organizing the exhibition, and working with exhibitors
Ensuring that audio-visual equipment needs are met
Planning for the registration process
Arranging for various food and beverage needs
Convention and Visitor
CVB: Non-profit organizations who represent a certain metro area, or
CVB’s mission is based on the premise that travel to the area will
benefit all supply sectors, such as accommodations, entertainment,
transportation, and food and beverage.
CVBs are primarily designed to assist meeting and event planners with
coordination of event logistics such as site selection and transportation
CVBs also promote their cities to planners
Convention and Visitor
Main Responsibilities of a CVB are:
Developing a marketing strategy and destination image for the area.
Promoting the area to potential travel buyers and planners.
Facilitating the entire process of selling the area and hosting the event.
Promoting the area’s public attractions and amenities to the visitors.
A convention center is an exhibition hall, or conference center, that holds
Newly constructed and expanded centers are extremely large, with
some new and expanded centers providing nearly two million square feet
of exhibition space.
Convention centers earn revenue from a variety of sources, including
the rent of the facility, food and beverage service, and concession stands.
Convention centers typically offer enough floor area to accommodate
several thousand attendees.
Convention centers rent space for meetings such as: corporate
conferences, industry trade shows, formal dances entertainment
spectacles and concerts.
Once an event has been booked for the convention center, the center
operator assigns it to an event manager. From this point forward, the
event manager becomes the link between the center and the client,
whether it be a planner or the sponsoring organization itself.
One of the key responsibilities of an event manager is to ensure that the
event contract is followed.
The contract between a convention center and a client for a specific
event contains provisions for all aspects of the event, including the client’s
requirements for the event, the agreed upon rental, and the mutual
responsibilities and obligations of both parties.