2. Demand Side of Business Travel and Tourism
TLH219
M.I.C.E
1. Define and use the term leisure and tourism and
understand their interrelationships.
2. Differentiate between domestic and international
tourism.
3. Discuss the changing nature of global tourism.
Learning Objectives
3. TLH219
M.I.C.E
Demand Side of Business Travel and Tourism
Customer and Consumer
A major difference between business travel and leisure travel is the fact
of that in the former, there is often a clear distinction between the
customer and consumer.
Table below show the differences between customer and consumer.
Customer Consumer
• Organization make decision
employee to travel
• Full sponsoring or paid by
organization
• Employee make decision to
travel themselves
• Self-finance
What the message are provided on above table?
4. TLH219
M.I.C.E
Demand Side of Business Travel and Tourism
Customer and Consumer
Motivations for business travel will be different for the customer and
consumer and perhaps in relation to different types of business travel.
Motivations
5. TLH219
M.I.C.E
Demand Side of Business Travel and Tourism
The Structure of Demand
Business travel and tourism has number of dimensions. Clearly, in its
simplest sense it is the number of people travelling for business purposes
in a particular region, country or worldwide.
Dimensions of demand in business travel & tourism (next slide)
6. TLH219
M.I.C.E
Demand Side of Business Travel and Tourism
1. Frequency of travel
2. The level of demand for particular destinations
3. The level of demand for particular venue.
4. The level of demand for types of accommodation.
5. The level of demand for products and services of particular suppliers
and intermediaries.
6. The segmentation of the market on the basis of type of employer, age,
sex, race, and nationality for example.
7. The seasonality of demand.
8. The purpose of trip and the type of business tourism.
9. The duration of trip.
10. Expenditure during the trip.
The Structure of Demand
7. TLH219
M.I.C.E
Demand Side of Business Travel and Tourism
The Factors Which Influence Business and
Tourism demand
Business travel and tourism demand is influenced by a broad range of
factors found in both the generating region and the destination.
1. High level of economic development and strong economy increases
demand and vice versa
2. High relative on exchange rate for the generating region against
destination make travel cheaper and stimulates imports while
reducing export to the destination and vice versa
3. Political stability is required in both generating region and the
destination for business and vice versa
4. A lower cost of living in the destination zone may well increase the
attractiveness of the destination of conferences for people from the
generating region.
8. TLH219
M.I.C.E
Demand Side of Business Travel and Tourism
The Factors Which Influence Business and
Tourism demand
5. Historical and culture with particular places is higher than the business
tourism might be expected.
6. Business travel is likely to be greater between generating regions and
destinations which have shared interests in particular industries,
products and service.
7. The more both governments support the policy of free trade, the
greater the likely level of business travel and tourism between two
governments.
9. TLH219
M.I.C.E
Demand Side of Business Travel and Tourism
The Factors Which Influence Business and
Tourism demand
Segmenting
1. Seasonality of business trip
2. Those who book via agents and those who book directly.
3. Purpose of trip.
4. Short-haul vs. long-haul travelers
5. Nationality of business traveler
6. Gender of business traveler.
7. Frequent vs. less frequent travelers
8. Age of business traveler.
9. Mode of transport used by the business traveler
10. International vs. domestic business travel
10. TLH219
M.I.C.E
Demand Side of Business Travel and Tourism
The Geography of Demand
By definition, business and travel and tourism involves the movement of
people so its patterns of demand will clearly have a strong geographical
dimension. This is manifested in two ways:
1. A distinction
2. Geographical differences
11. TLH219
M.I.C.E
Demand Side of Business Travel and Tourism
Discussion
1. Discuss the implications of the distinction between
customers and consumers for business tourism
organization.
2. Discuss the factors that will influence the future size
and business travel and tourism demand in Asia.
