1. How can we understand the tourists?
Tourist – main characters in the tourism industry
Tourism Businesses :
•Concerned with what motivates tourists
•How they make decisions
•What they think of the products they buy
•How much they enjoy and learn
•How they interact with the local people and
environment
•How they feel about their holidays
Travel motivations – most fundamental question
among the study of tourists’ behavior

2. Description of the Different Human Needs by
Moslow
Physiologic
needs
Need to breathe, need for water, need to
eat, need to dispose of bodily wastes, need
for sleep, need to regulate body
temperature, and need for sexual activity,
body comfort and exercise, etc.
Safety Need for security of employment, revenues
and resources; need for physical security
(safety from violence, delinquency,
aggression); need for moral and physiological
security; need fro familial security; need for
security of health.
Love/belonging Need fro friendship, sexual intimacy, having a
family and need to belong in a group

3. Esteem Need to be respected, need for
self-respect and need to
respect others; need fro
recognition, need fro activity
that gives the person a sense
of contribution and self-value.
Actualization Need to make the most of
one’s unique abilities and need
to strive to be the best.

4. NEEDS OF TOURISTS IN EVERY STAGE OF LIFE CYCLE
(Leisure Ladder Model by Philip Pearce)
Relaxation & Bodily
Needs
Need for basic services (food, space, toilets)
for restoration and personal maintenance
and repair
Stimulation Excitement and safety (fun and thrill of rides,
experience of the unusual, out-of-the ordinary
settings and different tools and people)
Relationship Build and extend personal relationships
(tenderness, affection, joint fun, joint
activities, altruism and being directly involved)
Self-esteem and
Development
Need to develop skills, knowledge and abilities
(competent, in control, respected, and
productive)
Fulfillment Feel peaceful, profoundly happy (magical as if
transported to another world, spiritual and
totally involved in the setting)

5. TOURISTS’ DECISION-MAKING PROCESS
FACTORS Influencing The Decision of Tourists (Schmoll)
Field 1: Travel Stimuli External stimuli that can awaken an individual’s
desire or need to travel
Ex: Advertising, Promotion, Friends, Travel Reports
Field 2: Personal and Social
Determinants
Ex: Socio economic status, personality features,
social influences and aspirations, attitudes and
values, motivations, desires, needs and
expectations
Field 3: External Variables Ex: Confidence in external intermediary,
destination service, previous travel experience,
assessment of objectives, constraints in time, cost,
etc.
Field 4: Characteristics &
Features of The Service
Ex: Cost/value relations, attractions/amenities
offered, range of travel opportunities,
quality/quantity of travel information, type of
arrangement offered

6. TRAVEL BUYING BEHAVIOR BY MATHEISON & WALL
•Tourist Profile – age, education, income, attitudes, previous
experience and motivations
•Travel awareness – through sources
•Destination resources and characteristics – attractions and
features of the destination
•Trip features – distance, trip duration, and perceived risk of
the area visited
Stages of the Buying Behavior of Tourists
Felt Need or Travel Desire – felt and reasons are weighed
Information and evaluation – brochures, advertisements,
friends, relatives, etc.
Travel Decision
Travel Preparations and equipment – bookings, budget, etc.
Travel Satisfaction Evaluation

7. TOURIST TYPOLOGIES
•Classification of tourists based on their behavior
•Serve as guide as to what products, services, and facilities
should be sold to certain tourists
TOURIST CATEGORIES (By Eric Cohen)
1. The organized mass tourist
• Packaged tour fixed iteneraries
• Planned stops
• Guided organizers making the decisions
2. The individual mass tourist
• Tour not entirely planned by others
• Tourist having some control over his itenerary/time
• Major arrangements – travel intermediary
• Dominant familiarity

8. Cont’n: Tourist Categories
3. The explorer
•Usually plan his own trips; try to avoid developed tourist
attractions
•Tourist not fully integrating with locals
4. The drifter
•Plan their trip alone
•Avoid tourist attractions and live with locals
•Almost entirely immersed in the host culture, sharing its
shelter, food and habits
•Novelty is dominant; familiarity disappears
GLOBAL TRAVEL SURVEY – United Kingdom, 2005
1. Adventurers 4. Economizers
2. Worriers 5. Indulgers
3. Dreamers * Based on how tourists perceive traveling

9. ADVENTURERS
•New experiences, activities, cultures and people
•Independent, in control, need not be pampered
•“Hate to travel with a group of people even if known to
them”
WORRIERS
•Anxiety about traveling; travel not important to them
•Not particularly adventurous
DREAMERS
•Fascinated by travel, anxious about stresses of travel
•More on relaxation than adventure
•“Travel to enjoy life; to impress people”

10. ECONOMIZERS
•Travel primarily because they need a break, travel is not a
central activity
•Seek value in travel; sense of adventure is low
•Experience of travel does not add meaning to their lives
INDULGERS
•Like to be pampered
•Travel not a central or important experience
•Willing to pay for a higher level of service when they travel
•“Don’t worry about how much things cost as long as I get the
special attention when I travel”
MARKET SEGMENTATION – similar to tourist typology
1. Geographic 3. Psychographic
2. Demographic 4. Product-related

11. GEOGRAPHIC SEGMENTATION
•Based on their location
DEMOGRAPHIC SEGMENTATION
•Gender, age, ethnicity, occupation, education, income,
household size, and family situation
PSYCHOGRAPHIC SEGMENTATION
•Based on how tourists live and on their priorities and
interests
PRODUCT-RELATED
•Based directly on what they want and need in a particular
good or service
TRENDS ON TOURISTS/TOURISM – Internet; e-Commerce –
on line buying

12. Characteristics of modern tourists (e-Tourism, Steinbauer, 2005)
More mobile and critical
Less loyal and frequently changing their product
preferences
Looking for more specialized products and asking for better
service
Wanting more and better information
Comparing more products in more detail
Having fast changing needs
Having the tendency to make more but shorter vacations

13. WHAT ARE THE COMPONENTS OF TOURISM?
1. Tourist attractions and activities – most important
• Natural
• Man-made
2. Accommodation
3. Transportation
4. Other tourist facilities and services – food establishments,
postal facilities and services, medical, banking/money
exchange services, souvenir shops, parlors, etc.
5. Other infrastructure – hygienic water supply, adequate
electric power, proper waste disposal, adequate
telecommunications,
6. Institutional elements – not very visible to tourists –
education and training of persons working in tourism
establishments, marketing, standards, regulatory
mechanisms of tourist facilities (Government, etc.)

14. TOURISM SECTORS THAT CATER TO THE NEEDS OF TOURISTS
1. Attractions, entertainment, recreation and others
• Natural resources
• Commercial – resorts, casinos, amusement parks,
convention centers, retail centers
• Historical – monuments, historic homes, museums,
battlefields, landmarks
• Socio-cultural – festivals, crafts, art museums, ethnic
events, unique culture
2. Accommodation
3. Transportation
4. Travel intermediaries – tour operators, travel agents, the
internet
5. Travel-related shopping and financial services – ATM,
credit/debit cards, checks, vouchers

15. Two major groups of tourist accommodation:
1. Collective tourist establishment
• Hotels and similar establishments
• Specialized establishments – spas, health farms, etc.
• Other collective establishments – holiday dwellings,
apartment buildings, tourist campsites, mobile homes
2. Private tourist accommodation
Assignment:
1. Hotel, motel, bed-and-breakfast, capsule hotel,
campgrounds and recreational vehicles, holiday cottages,
apartelle, condotel, resorts, residence inn, cottage
2. Give at least three impacts of internet in the tourism
industry
3. What is the role of transportation in the tourism industry?

16. HOTEL STAR CLASSIFICATION:
1. One Star – low-budget hotel
2. Two Stars – budget hotel; has maid service daily
3. Three Stars – middle-class hotel; moderately priced
4. Four Stars – first-class hotel; expensive; w/ luxury services
5. Five Stars – luxury hotel
HOTEL TERMINOLOGY:
1. Single – room with one twin bed
2. Twin – room with two twin beds
3. Double – room with one double bed
4. Double double – two double beds
5. Murphy – with a Murphy bed (folds out of a wall or closet)
6. Suite – with one or more beds and a living area
7. Connecting – rooms that are side by side and have a door
connecting the two rooms
8. Adjoining – rooms side by side but no connecting door

17. Hotel Terminology:
European Plan (EP) – room only, no meals
Continental Plan (CP) – continental breakfast included in the
room price (juice, coffee, roll, pastry)
Modified American Plan (MAP) – Continental or full breakfast
and dinner included in the room price
American Plan (AP) – continental or full breakfast, lunch and
dinner included in the room price
FOOD & BEVERAGE SERVICES:
Café (Bistro/France) – quick service, light meals, and snacks
Restaurants - “restaurer” w/c means to restore
Pubs (Public House) – drinking establishments; informal
atmosphere; not only for male
Nightclubs – nightspots, clubs or discos (comedy clubs/
concert clubs)

18. MODES OF TRANSPORTATION:
1. Road
2. Rail – Europe; Amsterdam, Singapore, London Airports
3. Water – line voyage services (port-to-port basis), cruise
ships, ferries (sightseeing within a destination)
4. Air
TOP TEN AIRLINES WORLDWIDE (2006):
1. British Airways
2. Qantas Airways
3. Cathay Pacific
4. Thai Airways
5. Emirates
6. Qatar Airways
7. Singapore Airways
8. AnA
9. Malaysia Airlines
10. China Airlines

19. TOUR OPERATORS – purchase separate elements of
transport, accommodation and other services, and
combine them into a package – sell directly or
indirectly to the consumers
DIFFERENT TOUR PACKAGES:
1. Special-interest tours – specific group of tourists, e.g.
adventure tours, educational, pilgrimage, bird-watching
tours
2. Escorted tours – led by tour guide
3. Foreign independent tours/domestic independent tours
(FIT/DIT) – more freedom; do not follow fixed itinerary;
need not travel with a group
4. Group inclusive tours (GIT) – clubs or business
organizations

20. TYPES OF TOUR OPERATORS:
1. Inbound Operators
2. Outbound Operators
3. Specialty Operators
4. Domestic Operators
Travel Agents – referred to as retailers; go to a tour operator
or go to a supplier
Commission – payment received by travel agents for the sale
of services
The Internet :
Disintermediation – elimination of middlemen so companies
can sell their products at cheaper prices faster
Two Strategies:
• Dynamic Holiday Packaging and Merchant Pricing Model

21. Travel-Related Shopping & Financial Services:
“Suitcase Tourism” – an activity where shopping has become
the main reason for travelling
Hongkong & Singapore (1995) – regional shopping centers
Duty-Free Stores – retails stores that sell merchandise to
travelers, free of customs and taxes usually imposed by
the host government
Souvenirs – important to tourists because of what it
represent; serve as evidences
Money – essential requirement for travelling
Other financial services:
•Foreign Exchange
•Credit Cards
•Travelers Checks
•Vouchers
•Automated Teller Machines

22. Insurance – give a sense of security
Tourism Organizations:
World Tourism Organization (WTO) – most widely recognized
and leading international organization since 1975,
Madrid, Spain
- 150 country members; 300 affiliate members
Pacific Asia Travel Association (PATA) – recognized authority
in travel and tourism in the Asia Pacific region, 1951
European Travel Commission (ETC) – strategic alliance that
provides for the collaboration between 34 European
national tourism organizations, 1948, Brussels, Belgium
National Tourism Organization (NTO) – dominated by private
sector: general administration of travel and tourism,
planning and investment, research and statistics,
vocational training, promotion
National Tourism Agency (NTA) – government entity

23. Sectoral Organizations – associated with a particular sector of
tourism industry such as transport, accommodation,
attractions, etc.
BENEFITS OF TOURISM
1. Economic Benefits
• Employment - largest industry in the world; 2020 –
around 1.5 billion arrivals
• Revenue Generation – income
• Foreign Exchange
• Income Redistribution
• Added Liquidity – money brought by visitors helps
increase the economic activities in the areas visited
• Multiplier Effect – used to describe the total effect, both
direct and secondary, that an external income has on an
economy

24. 2. Social Benefits
• Conservation of Cultural Heritage
• Renewal of Cultural Pride
• Understanding of One’s Country and Culture
3. Environmental Benefits
• Conservation of Important Natural Areas
• Biological Conservation – giant pandas in China, whale
sharks in the Philippines, whales and dolphins (Hawaii,
Alaska, Australia and Argentina)
• Improvement of Environmental Quality and
Enhancement of the Environment – improved
landscaping, efficient utilities (water supply, garbage)
• Improvement of Infrastructure – roads, airports, bridges,
ports
• Increase in Environmental Awareness

25. HOW DO INDIVIDUALS & ORGANIZATIONS BENEFIT FROM
TOURISM?
1. Profit
2. Commissions and Discounts
• Published Rate – pay directly w/ the facility or service
provider
• Discounted or Contracted Rate – client deals with the
intermediary
3. Service Charge
• Explicit – dining and accommodation establishments
• Implicit – included in tour packages
• Add-ons – increased selling rate on top of the rate
agreed upon
• Freebies – for a minimum number of paying clients,
suppliers would get free slots

26. •Ex-deals (Exchange Deals) – e.g. media advertisements,
instead of paying cash → free use of units/facilities
•Consultancy Charges
THE PROCESS OF DEVELOPING A TOURIST PRODUCT
1. Product Identification – determine first what the area or
the business has to offer
2. Market Study – domestic and foreign market
3. Product-Market Matching – type of traveler appropriate
for the tourism product
4. Product-Activity Prioritization
5. Initial (Test) Marketing – marketing or creating awareness
for the product
6. Product Testing – activity familiarization tour – client
suppliers, media, other personalities→ feedback
7. Full Launch Marketing – reaching out to both clients and
intermediaries

27. HOW DO YOU DEVELOP A TOUR PROGRAM?
1. Assess the tourism product
2. Determine the market
3. Determine the route
4. Determine the service providers – accommodation,
dining, guides, etc.
5. Identify the jump-off point or tourist service area – where
the good dining, accommodation and transportation are
available
6. Identify the main destinations – most time is spent
7. Identify the minor or optional destinations
8. Identify the stop-over points – comfort rooms, etc.
9. Determine the modes of transport
10. Develop commentary – very good tour guide
11. Compute the costs 12. Test run the program

28. HOW DO YOU MARKET A TOURIST PRODUCT?
Basic Components of Tourism Marketing (Four P’s):
1. Product – attraction, an activity, a tourist facility, or a
tourism service (guiding)
2. Price – competitiveness
3. Place – significant or insignificant
4. Promotion
5. People (The Market)
Identify Marketing Media :
• Word of mouth
• Advertisements – newspapers, magazines, TV, radio,
billboards
• Publicity – journalists
• Suppliers – travel agencies
• Websites – cheapest; reach out to the global market

29. Identifying Marketing Media:
• E-mail – a word-of-mouth type of medium
• Telemarketing – use of phone
• Direct Mail – brochures, printed materials
• Trade Fairs (Travel Marts)
• Non- Traditional Methods – time share, events,
handicrafts/ souvenirs, books
Identify Marketing Costs & Available Budget – one of the
most expensive components is marketing
Identify the Most Cost-effective Marketing:
• Minimum Expense – publicity, word-of-mouth, website
• Maximum Exposure – print and television advertising
• Maximum Conversion (Niche Marketing) – sales calls,
demonstrations, road shows, trade fairs