This is about the analysis of Indian tourism Industry.

1. FACTORS AFFECTING DEMAND
IN
TOURISM
GROUP 3:
PRERNA MITTAL | PRIYANKA JAIN | SHAURYA GARG|
VAISHALI SANGHWAN| ADITYA MOHAN| SUMIT GILL|

2. 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
• More leisured: in terms of hours of work and holiday
entitlement, having regard also to early retirement.

3. Changing face of travel consumer
• More travelled, 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.
• 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 choice

4. 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

5. Economic factors
• Higher per capita income.
• Developed and growing economies also sustain
business travel and trips (more than 50%).
• 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) .

6. 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.

7. 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 income

8. 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

9. 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

10. 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

11. Changing attitudes
• Attitudes towards tourism are a subset of wider view on
the desired quality of life and how to achieve it.
• Therapeutic value in lying on the beech and sun
• Holidays are „rights‟ and necessities for relieving stress
rather than luxuries.
• Longer holiday entitlement in twentieth century has
lead to consumers taking several holidays in a year
• People having a second home.
• Medical Tourism.

12. 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 travellers by car
• Congestion has increased and governments are
favouring public transport

13. 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
• Governments consciously (rather aggressively)
promoting tourism

14. 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 charge

15. Information and
communication technology
• Increasing promotion and distribution of
products on world wide web.
• 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 system.

16. 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 cost.

17. Travel propensity
Low propensity High propensity
characteristics 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 • Higher education level
• Older people (80+) • Young people and empty nesters
• No access to private • Two or more cars in the household
transport • Six or more weeks‟ paid holiday
• Three or less weeks‟ paid • Access at work and at home
holiday
• No access to internet