Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Determinants of Demand andDeterminants of Demand and
Supply in TourismSupply in Tourism
TOURISM DEMANDTOURISM DEMAND
The total number of persons whoThe total number of persons who
travel, or wish to travel, to ...
APPROACHES TO STUDYAPPROACHES TO STUDY
TOURISM DEMANDTOURISM DEMAND
Economists-Economists- Demand measured inDemand measu...
TYPES OF DEMANDTYPES OF DEMAND
Effective or Actual Demand-Effective or Actual Demand- PeoplePeople
actually traveling at ...
TRAVEL PROPENSITY –TRAVEL PROPENSITY –
LIKELIHOOD TO TRAVELLIKELIHOOD TO TRAVEL
Net Travel Propensity-Net Travel Propensi...
HIGH AND LOW TRAVELHIGH AND LOW TRAVEL
PROPENCITYPROPENCITY
High Travel PropensityHigh Travel Propensity
High EducationHi...
FACTORS DETERMININGFACTORS DETERMINING
TOURISM DEMANDTOURISM DEMAND
1.1. IndividualIndividual
2.2. EconomicEconomic
3.3. G...
INDIVIDUAL FACTORSINDIVIDUAL FACTORS
 EducatEducation and Awarenession and Awareness
 MobilityMobility
 Age, Gender, Re...
ECONOMIC FACTORSECONOMIC FACTORS
Cost of TravelCost of Travel
Cost of ProductsCost of Products
Competitive PricesCompet...
GEOGRAPHIC FACTORSGEOGRAPHIC FACTORS
SeasonalitySeasonality
Accessibility, location and distanceAccessibility, location ...
DESTINATION FACTORSDESTINATION FACTORS
 Image – organic and inducedImage – organic and induced
 Promotion: travel channe...
POLITICAL FACTORSPOLITICAL FACTORS
Government regulation on supplyGovernment regulation on supply
and touristsand tourist...
CHARACTERISTICS OF TOURISMCHARACTERISTICS OF TOURISM
DEMANDDEMAND
 Planned demandPlanned demand
 Involves a lot of expen...
TOURISM SUPPLYTOURISM SUPPLY
The supply of all assets, servicesThe supply of all assets, services
and goods to be enjoyed ...
COMPONENTS OF TOURISMCOMPONENTS OF TOURISM
SUPPLYSUPPLY
InfrastructureInfrastructure (telecommunications,(telecommunicati...
TOURISM SUPPLYTOURISM SUPPLY
Tourism supply is a composite productTourism supply is a composite product
involving transpor...
FACTORS AFFECTING TOURISMFACTORS AFFECTING TOURISM
SUPPLYSUPPLY
1.1. EconomicEconomic
2.2. PoliticalPolitical
3.3. Geograp...
Tourism Product
TransportTourists Area of
Origin
Tourists Destination
Tourists Demand
Product
Package Supplier
Associated ...
SUPPLY COMPONENTS
Natural or environmental resourcesNatural or environmental resources
((physiographic of the area, landf...
DEMAND-SUPPLY LINKDEMAND-SUPPLY LINK
Demand
Generating Origin
Supply Receiving
Destination
Marketing and Promotion
TOURISM DESTINATIONTOURISM DESTINATION
PLANNINGPLANNING
 The availability of natural resources andThe availability of nat...
Thank youThank you
Upcoming SlideShare
Loading in …5
×

Determinants of Demand and Supply in Tourism

37,989 views

Published on

Determinants of Demand and Supply in Tourism

Published in: Travel

Determinants of Demand and Supply in Tourism

  1. 1. Determinants of Demand andDeterminants of Demand and Supply in TourismSupply in Tourism
  2. 2. TOURISM DEMANDTOURISM DEMAND The total number of persons whoThe total number of persons who travel, or wish to travel, to usetravel, or wish to travel, to use tourists facilities and services attourists facilities and services at places away from their places of workplaces away from their places of work or residenceor residence
  3. 3. APPROACHES TO STUDYAPPROACHES TO STUDY TOURISM DEMANDTOURISM DEMAND Economists-Economists- Demand measured inDemand measured in monetary returns gained within a periodmonetary returns gained within a period of time. Price, elasticity, quality, revenueof time. Price, elasticity, quality, revenue and expenditure.and expenditure. Psychologists-Psychologists- Demand related toDemand related to motivation, behavior, personality andmotivation, behavior, personality and environment.environment. Geographers-Geographers- Demand based onDemand based on geographic boundaries, demographics.geographic boundaries, demographics.
  4. 4. TYPES OF DEMANDTYPES OF DEMAND Effective or Actual Demand-Effective or Actual Demand- PeoplePeople actually traveling at a point of timeactually traveling at a point of time .. Potential Demand-Potential Demand- People who couldPeople who could travel if motivated.travel if motivated. Deferred/Postponed Demand-Deferred/Postponed Demand- PeoplePeople who wish to travel, but are not travelingwho wish to travel, but are not traveling presently due to temporary reasons, of selfpresently due to temporary reasons, of self or supply end.or supply end. Suppressed Demand –Suppressed Demand – People notPeople not interested in travel.interested in travel.
  5. 5. TRAVEL PROPENSITY –TRAVEL PROPENSITY – LIKELIHOOD TO TRAVELLIKELIHOOD TO TRAVEL Net Travel Propensity-Net Travel Propensity- Percentage of populationPercentage of population of the overall population who makes at least one trip during aof the overall population who makes at least one trip during a given period of time.given period of time. == Number of population taking at least one tripNumber of population taking at least one trip X 100X 100 total populationtotal population Gross Travel Propensity-Gross Travel Propensity- Total number of tripsTotal number of trips undertaken as a percentage of the population.undertaken as a percentage of the population. == Number of Total TripsNumber of Total Trips X100X100 Total PopulationTotal Population
  6. 6. HIGH AND LOW TRAVELHIGH AND LOW TRAVEL PROPENCITYPROPENCITY High Travel PropensityHigh Travel Propensity High EducationHigh Education More AwarenessMore Awareness More IncomeMore Income Private VehiclePrivate Vehicle Better Travel FacilitationBetter Travel Facilitation Good Exchange RateGood Exchange Rate Shorter Travel DistanceShorter Travel Distance Low Travel CostLow Travel Cost Young AgeYoung Age Low Travel PropensityLow Travel Propensity Low EducationLow Education Low AwarenessLow Awareness Low IncomeLow Income No ownership of VehicleNo ownership of Vehicle Poor Travel FacilitationPoor Travel Facilitation Poor Exchange RatePoor Exchange Rate Long Travel DistanceLong Travel Distance High Travel CostHigh Travel Cost Old AgeOld Age
  7. 7. FACTORS DETERMININGFACTORS DETERMINING TOURISM DEMANDTOURISM DEMAND 1.1. IndividualIndividual 2.2. EconomicEconomic 3.3. GeographicGeographic 4.4. DestinationDestination 5.5. PoliticalPolitical
  8. 8. INDIVIDUAL FACTORSINDIVIDUAL FACTORS  EducatEducation and Awarenession and Awareness  MobilityMobility  Age, Gender, ReligionAge, Gender, Religion  Income and employment, disposableIncome and employment, disposable income, household income, DINKSincome, household income, DINKS  Paid holidayPaid holiday  Family InfluenceFamily Influence  Nature of Family-joint, nuclearNature of Family-joint, nuclear  VALSVALS  Stage of Family Life CycleStage of Family Life Cycle  Gap Year OpportunitiesGap Year Opportunities
  9. 9. ECONOMIC FACTORSECONOMIC FACTORS Cost of TravelCost of Travel Cost of ProductsCost of Products Competitive PricesCompetitive Prices Exchange RateExchange Rate
  10. 10. GEOGRAPHIC FACTORSGEOGRAPHIC FACTORS SeasonalitySeasonality Accessibility, location and distanceAccessibility, location and distance Attractions AvailableAttractions Available Urban or Rural population orUrban or Rural population or EconomyEconomy
  11. 11. DESTINATION FACTORSDESTINATION FACTORS  Image – organic and inducedImage – organic and induced  Promotion: travel channels, awareness,Promotion: travel channels, awareness, dealsdeals  Technology and developmentTechnology and development  CRS technologyCRS technology  Development LevelDevelopment Level  CredibilityCredibility  Safety and SecuritySafety and Security  Attraction and EventsAttraction and Events  Quality of ProductQuality of Product  Travel FormalitiesTravel Formalities
  12. 12. POLITICAL FACTORSPOLITICAL FACTORS Government regulation on supplyGovernment regulation on supply and touristsand tourists Visas, formalities, health checks,Visas, formalities, health checks, currency, prohibitionscurrency, prohibitions Transport regulation, accessibility,Transport regulation, accessibility, bilateral agreementsbilateral agreements
  13. 13. CHARACTERISTICS OF TOURISMCHARACTERISTICS OF TOURISM DEMANDDEMAND  Planned demandPlanned demand  Involves a lot of expenditureInvolves a lot of expenditure  There is no tangible return or purchaseThere is no tangible return or purchase  Highly price elasticHighly price elastic  Can be price inelastic tooCan be price inelastic too  SeasonalitySeasonality  Is not subject to law of diminishingIs not subject to law of diminishing returnsreturns  Changing demand patternsChanging demand patterns
  14. 14. TOURISM SUPPLYTOURISM SUPPLY The supply of all assets, servicesThe supply of all assets, services and goods to be enjoyed or boughtand goods to be enjoyed or bought by visitors and occasioned by theby visitors and occasioned by the journeys of visitors.journeys of visitors.
  15. 15. COMPONENTS OF TOURISMCOMPONENTS OF TOURISM SUPPLYSUPPLY InfrastructureInfrastructure (telecommunications,(telecommunications, accommodation and transport)accommodation and transport) SuperstructureSuperstructure ((include facilities constructed primarily to support visitation and visitor activities. )) AttractionsAttractions (theme parks, museums,(theme parks, museums, buildings, ski-slopes)buildings, ski-slopes) Marketing/Promotion andMarketing/Promotion and Destination ImageDestination Image
  16. 16. TOURISM SUPPLYTOURISM SUPPLY Tourism supply is a composite productTourism supply is a composite product involving transport, accommodation,involving transport, accommodation, catering, natural resources,catering, natural resources, entertainment, and other facilities andentertainment, and other facilities and services, such as shops and banks,services, such as shops and banks, travel agents and tour operators.travel agents and tour operators.
  17. 17. FACTORS AFFECTING TOURISMFACTORS AFFECTING TOURISM SUPPLYSUPPLY 1.1. EconomicEconomic 2.2. PoliticalPolitical 3.3. GeographicalGeographical 4.4. LegalLegal 5.5. TechnologicalTechnological 6.6. SocialSocial
  18. 18. Tourism Product TransportTourists Area of Origin Tourists Destination Tourists Demand Product Package Supplier Associated Services Government NGOs Tourism Operators Services Tour Guides + Drivers ACCOMMODATION Components of Tourism Supply (supply chain)
  19. 19. SUPPLY COMPONENTS Natural or environmental resourcesNatural or environmental resources ((physiographic of the area, landforms, flora, fauna, water bodies, air quality and similar natural phenomena) Built or man-made resourcesBuilt or man-made resources ((infrastructure, superstructure)infrastructure, superstructure) TransportationTransportation Hospitality and cultural resourcesHospitality and cultural resources ((friendliness, courtesy, sincere interest and willingness to serve and to be better acquainted with visitors ))
  20. 20. DEMAND-SUPPLY LINKDEMAND-SUPPLY LINK Demand Generating Origin Supply Receiving Destination Marketing and Promotion
  21. 21. TOURISM DESTINATIONTOURISM DESTINATION PLANNINGPLANNING  The availability of natural resources andThe availability of natural resources and attractionsattractions  The availability of investment fundsThe availability of investment funds  A skilled human resource baseA skilled human resource base  Government policy that supports tourismGovernment policy that supports tourism  Destination accessibilityDestination accessibility  The presence of complementary servicesThe presence of complementary services and facilities and infrastructureand facilities and infrastructure
  22. 22. Thank youThank you

×