Published on April 26, 2014
BASIC NATURE OF TOURISM
CHARACTERISTICS OF TOURISM PRODUCT
Characteristics of Service Marketing • Can’t be seen, tasted, felt, heard, or smelled before purchase. • Can’t be separated from service providers. • Quality depends on who provides them and when, where and how. • Can’t be stored for later sale or use. INTANGIBILTY INSEPARABILTY VARIABILITY PERISHABILITY
Intangible • Unlike a tangible product, say, a motor car or refrigerator, no transfer of ownership of goods is involved in tourism. The product here cannot be seen or inspected before its purchase.
• Instead, certain facilities, installations, items of equipment are made available for a specified time and for a specified use. For example, a seat in an aero plane is provided only for a specified time.
Tangible and Intangible Products/Services Tangible goods with some services Hybrid :Equal Part good and service Major service With minor good Pure Service: No Tangible Good. Pure tangible good; no service Chocolate Computer & Warranty Meal at a restaurant Hair Styling Legal Advice
VARIABILITY • Services are highly variable • Services are produced and consumed simultaneously. • Service consistency depends on the service provider’s skill. • Lack of consistency a major source of customer disappointment. • Guest expectations are different. “Quality can not be controlled; must be produced”
PSYCHOLOGICAL • A large component of tourism product is the satisfaction the consumer derives from its use. A tourist acquires experiences while interacting with the new environment and his experiences help to attract and motivate potential customers.
Highly Perishable • A travel agent or tour operator who sells a tourism product cannot store it. • Production can only take place if the customer is actually present. And once consumption begins, it cannot be stopped, interrupted or modified.
• If the product remains unused, the chances are lost i.e. if tourists do not visit a particular place, the opportunity at that time is lost. It is due to this reason that heavy discount is offered by hotels and transport generating organisations
Perishability Lack of ability to inventory Lack of ability to inventory – services can not be stored Capacity and demand must be successfully managed Involve customer in the service delivery system
Composite Product The tourist product cannot be provided by a single enterprise unlike a manufactured product. The tourist product covers the complete experience of a visit to a particular place. And many providers contribute to this experience.
For instance, airline supplies seats, a hotel provides rooms and restaurants,travel agents make bookings for stay and sightseeing, etc.
Unstable Demand • Tourism demand is influenced by seasonal, economic political and others such factors. There are certain times of the year which see a greater demand than others. At these times there is a greater strain on services like hotel bookings, employment, the transport system, etc.
Fixed supply in the short run • The tourism product unlike a manufactured product cannot be brought to the consumer; the consumer must go to the product. This requires an in-depth study of users’ behaviour, taste preferences, likes and dislikes so that expectations and realities coincide for the maximum satisfaction of the consumer.
Absence of ownership • You neither own the automobile nor the driver of the vehicle. Similarly, hotel rooms, airline tickets, etc. can be used but not owned. These services can be bought for consumption but ownership remains with the provider of the service. So, a dance can be enjoyed by viewing it, but the dancer cannot be owned.
Heterogeneous • Tourism is not a homogeneous product since it tends to vary in standard and quality over time, unlike a T.V set or any other manufactured product. A package tour or even a flight on an aircraft can’t be consistent at all times. The reason is that this product is a service and services are people based.
RISKY • The risk involved in the use of a tourism product is heightened since it has to be purchased before its consumption. An element of chance is always present in its consumption. Like, a show might not be as entertaining as it promises to be or a beach holiday might be disappointing due to heavy rain.
MARKETABLE Tourism product is marketed at two levels. At the first level, national and regional organisations engage in persuading potential tourists to visit the country or a certain region.
At the second level, the various individual firms providing tourist services, market their own components of the total tourist product to persuade potential tourists to visit that region for which they are responsible.
CHARACTERSTICS OF SERVICE 1. Service is an experience for the customer. 2. Service is a performance by an employee or product 3. When service is delivered, the guest and service provider are both part of the transaction
4. Service quality is difficult to control and evaluate. 5. The customer and the organization often measure quality of service differently 6. When service is delivered, there can be no recall of the guest’s experience
7. Estimating the cost of service delivery is difficult. 8. Excess production of service cannot be placed in inventory 9. Service delivery and demand can be individually customized
10. Successful service delivery can be achieved with different viewpoints 11. When purchasing services there is limited or no ownership 12. Service has an aspect of time 13. Service is often provided as a value added to a physical product.
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