Tourism Industry

Features
• Highly Perishable of Tourism Produc
• Tourism product is service product
• Intangibility
• Service motives (Entertainment, Knowledge,
Adventure, Health)
• Users to visit the place to avail service
• Need of Adequate Infrastructure
• Users are heterogenous
• Needs innovative efforts (Bridge the gap: Service
promised and provided)
• Aware of the trend (Village, Rural, Adventure
tourism, Aesthetic and Peace)
Three Basic Elements of the Tourism
Product
1)Attraction of the destination
2) Facilities at the destination
3) Accessibility to the destination.
To the different members of tourism industry,
the tourism products are different.
 To the Hotel industry, it is guest nights,
 to the museum is gallery
 to the airline, seats flown and passenger
miles.
A optimal Product strategy : Blend of Core
and Peripheral
Creativ
e
Slogan
s
 Price Mix
• Pricing decisions are difficult because of the multi
segment industry.
• No marketing without pricing.
• Pricing strategies are used: optimize the distribution and
promotion cost.
• High spending tourist are not price sensitive but general
tourist are.
• Keeping in mind social tourism which makes pricing
decisions are liberal to economic class of the society.
• Trade up market (high priced packages for elite of the
potential tourists) and Trade down market (low priced
packages for mases). Value sensitive and price sensitive
Place and Distribution Mix
• Infrastructure : Accommodation, Attraction, transportation,
,catering, amusement, shopping
• Travel guides : What normal eyes fail to see to clarify
• Sound Distribution Bridges gap
• Distribution problem : Transmission of the information about the
services to the users
• Difference between operators and agents (wholesaler, Retailer,
Middlemen)