IMPACT OF TOURISM3.06 Examine the cyclical/seasonal nature of tourism.
Product Life Cycle•Introduction stage•Growth stage•Maturity stage•Decline stage
Introduction stage•Travelers who do not like to go whereeveryone else goes discover a new destination.•Industry segments introduce newproducts/services to gain a competitive edge.•Characteristics Profits are low. Promotion costs are high. There are few competitors.
Maturity stage Characteristics •Local residents lose control over the development of tourism. •Big hotels and restaurant chains move in. •A portion of the local population depends on tourism for a living. •Sales are at their peak. •Products and services need rejuvenating to maintain their market share. •The marketing mix begins to change to reach new markets and encourage tourists to revisit.
Decline stageCharacteristics •The destination becomes over-saturated with tourists. •The site has exceeded its carrying capacity. •The destination has lost its appeal. •Sales decline. •Some facilities may pull out of the area.
Seasonal nature of tourism•Peak period (high season)•Off-peak period (low season)•Shoulder season
Peak period (high season) Time when the destination is most desirable either for climatic reasons or because of some special event•Prices are high.•Demand is high.•This is a popular traveltime.
Off-peak period (low season) Period or season when traffic volume or occupancy is not heavy •Traffic is usually low for an identifiable reason. •Prices are reduced. •Demand is low.
Shoulder seasonThe period betweenpeak and off-peakseasons. Shoulderseasons are attractive topeople who do not needto travel during peakholiday months.
Factors affecting the timing of thepeak/off-peak period •Location and season of the destination and/or facility •Type of facility or business