Though accurate information cannot be obtained, because of the lacking of sufficient equipment to measure demand and the different ways people travel nowadays, research must be carried out to know more or less tourism demand. Following, there will be deeper examination of the importance of demand, the used methods to identify demand and how the figures help “reliably forecasting future sales or revenues to determine if a company’s project proposal will be financially reasonable” (Goeldner & Ritchie, 2011).
Demand in tourism can be related to the willingness of a person to travel and it can be calculated by knowing the things that encourage them and at the same time the determinants that persuade them against traveling to a destination. Consequence of not recognizing the demand of a service can lead to a company’s malfunction. Simply put, a corporation decides to focus on something specifically and spend a large amount of money doing so but without researching, it may end up failing if there is another firm that is known as the best in offering the same service or product.
Customers will go to the one they recognize rather than try a new product. Therefore, if not being the best, a company better differentiate itself. Similarly, measuring demand provides sales figures to a firm for it to make final decisions, so as to increase or decrease its product or service, for example, hotels need to estimate the rooms to keep in order to leave the least vacant rooms possible, since it is a service it will not be able to sell for the next day.
The Essay on Company Background & Product Analysis
1.1 Briefly provide a background discussion on your company and their products/services. Identify which product you can have chosen to analyze and why? What category of new product is it? Nokia, the world’s largest mobile phone maker. It is the world leader in mobile communications, driving the growth of the big mobility industry. Nokia is dedicated to increasing people’s lives and ...
Other decisions may include pricing, if demand is low, is probably best to lower price to increase demand (Kamlesh, 2010); destinations attractiveness, which places is most popular for tourists and when is the time they like to visit, which determines the highest profitable time; improvement of services, such as in transportation, find a way of traveling faster to a destination or what ways tourists’ prefer to move around. In other words, just as market trend changes tourists’ preferences, motivations and tastes are different every time.
It is firms’ responsibility to match variables such as “the level of age, income, occupation, time, whom to travel with and personality, which determine the destination choice process” (Munoz, 2006).
Once understanding the importance of demand, data can be obtained by using measuring demand methods, which consistently has to do with supply- the amount of service available to customers. The most commonly used methods include: Visitor arrivals, Visitor-days or visitor-nights, and amount spent (Goeldner & Ritchie, 2011).
Visitor arrivals involve counting the number of tourists that arrive at a particular destination. It is relatively easier and precise to use this method when tourists come by public transportation since it is recorded. The data given can be compared to see, for example, when the high peak of a destination is. Visitor-days or visitor-nights measurement is more valued than the former to tourism planners because they can obtain specific data on the estimated number of their target customers. This method also can distinguish tourist expenditures make tourists during day or night.
Since not all tourism-related business has the same focus, this method is considered more accurate. For instance, beach operators will most likely want to know the statistics on visitor-days. Thus, up to now, this method is considered the most effective, and unlike the last technique, amount spent, which has significant information but is the hardest to acquire. Normally, tourists hide or pay little attention to it and thus forget over time how much they spend, consequently the preferred information may not be as accurate as expected. This can be as well calculated through tax collections figures.
The Essay on Tourism Riding The Tourist Roller Coaster
Tourism is an economic activity associated with all types of traveling away from home, for business, pleasure or other reasons. Tourism is undoubtedly the largest industry in the world and generates lots of many for countries all around the world. In 1999, world tourism contributed 11.7% of worlds Gross Domestic Product (GDP). Although this industry provides a lot of opportunities, it also hides ...
How much tourists spend on lodging, for example, by using the amount of tax collected on room rent, and the rate of the tax on room rent (“Tourism Phenomenon,” 2011).
In brief, methods to measure tourism demand exist to make forecast essentially for tourism marketers and planners, this in turn reciprocally increase demand. Lastly but not least important, for firms to operate efficiently they are to know what methods of demand measure(s) would be more beneficial to them, and then use the information obtained to improve or develop themselves.
In this paragraph, Tourism Toronto will be used to explain how businesses use research to achieve success. As the official destination marketing organization for Toronto’s tourism industry, Tourism Toronto is in charge of providing visitors the best experience during their stay in Toronto (Tourism Toronto, [TT], n. d. ).
Simply put, they plan visitors’ tours. Visitors create their itinerary, and the company will find those places or events for them while delivering their best services. If looking how it works internally, it obviously by does research of the market trend.
Without knowing what is highly demanded, Tourism Toronto would not be able present satisfactory services or meet supply with demand. And even to increase demand, they need advertising; when people like their experience, they would mechanically think where they went is a great destination, and so will promote word of mouth advertising for the company. Also by using methods, it can have a basic idea of when the highest peak season is, and what activities they love doing the most in Toronto.
Concerning pricing, they can lower pricing during off-seasons to raise demand during the least profitable times. All in all, Tourism Toronto as a company linked with tourism, it necessitates demand analysis methods the most to succeed in the tourism industry. To conclude, the success of a field in attracting visitors is determined by none other than demand. Accurate data is essential to every company’s development, because it not only shows visitors’ preferences but as well as what exactly is the most profitable strategy that should be implemented.
The Essay on HOW DO NATURAL DISASTERS AFFECT TOURISM DEMAND AND SUPPLY?
ID#S11087869 Q.1.) HOW DO NATURAL DISASTERS AFFECT TOURISM DEMAND AND SUPPLY? There are many issues which affect tourism internationally; this essay aims to discuss the impact of natural disasters can have on tourism demand and supply. Tourism is an important part of countries’ economy and in less economically developed countries but actions of natural disasters affects the economy. The discussion ...
