what is tourism products

What is Tourism Product? Definition, Types, Characteristics

• Post last modified: 3 October 2021
• Reading time: 14 mins read
• Post category: Uncategorized

What is Tourism Product?

Tourism Products are a combination of goods and services demanded by a tourist during travel to and stay at a destination. These include natural, cultural and manmade attractions and facilities such as hotels, transport and ancillary services.

In this process, tourists derive an experience which varies from individual to individual. From a broader perspective, the sum total of experiences derived by the tourists during the entire trip can be considered as the product.

Table of Content

• 1 What is Tourism Product?
• 2 Definition of Tourism Product
• 3.1 Natural Tourism Product
• 3.2 Man-Made Tourism Product
• 3.3 Symbiotic Tourism Product
• 3.4 Event Based Tourism
• 3.5 Site Based Tourism Product
• 4.1 Intangibility
• 4.2 Inseperatability
• 4.3 Perishability
• 4.4 Heterogeneity
• 4.5 Essentially of Users Presence
• 4.6 Complexity in Marketing
• 4.7 Absence of Ownership

Definition of Tourism Product

Burkat and Medlik say tourism products to an array of integrated products, which consist of objects and attractions, transportation, accommodation and entertainment, where each element of the tourism product is prepared by individual companies and are offered separately to consumers (tourist/tourist).

The tourism “product” is not the destination, but it is about the experiences of that place and what happens there. – Chris Ryan

Economist M. Sinclair and Mike Stabler define the tourism product as a “composite product involving transport, accommodation, catering, natural resources, entertainment and other facilities and services, such as shops and banks, travel agents and tour operators.”

According to Suswantoro (2007:75) on substantially the understanding of tourism products “is obtained and the overall service felt or enjoyed by tourists since he left his residence to the tourist destination of his choice and to return home where she originally departed”.

Types of Tourism Products

Following figure describes the classification of Tourism Product:

Natural Tourism Product

Man-made tourism product, symbiotic tourism product, event based tourism, site based tourism product.

These are the products connected to the natural environment. Natural environment that constitutes natural resources which is related to area, climate and its settings, and the landscapes. These natural resources are the most important elements in a destination’s attraction. Such as countryside, climate, natural beauty, water, flora and fauna, wildlife, beaches, deserts, islands or any scenic attraction.

Some examples of natural tourism products in India are Marina beach- Chennai, Darjeeling hill station-West Bengal, Islands of Andaman & Nicobar- Andaman & Nicobar, Deserts of Thar-Rajasthan, etc

Something which is not natural, found in the destinations to attract the tourists. These are man-made creations. As per the tourism point of view they are made for pleasure, leisure or business.

Man-made tourism products are further divided into three subtypes:

• Sites and areas of archaeological interest
• Historical buildings and monuments
• Places of historical significance l museums and art galleries
• Political and educational institutions
• Religious institutions
• Fairs and festivals
• Arts and handicrafts
• Folklore l native life and customs
• Amusement and recreation parks
• Sporting events
• Zoos and oceanariums
• Cinemas and theatres
• Night life l cuisines

Examples of Man-made tourism products are Ajanta and Ellora cave-Maharashtra (Cultural), Surajkund Craft Mela-Haryana (Traditional), Essel World-Mumbai, etc

This type of tourism product do not fall in any particular category because they are a blend of nature and man but the core attraction is nature. These are the natural resource that has been converted into a tourism product by maintaining and managing them.

In other words man has taken initiative to preserve the natural aspects of earth and also managed in a way to provide best possible services to the tourists who come for the visit, for example, accommodation, parking facilities, etc. Some examples are National Park or Wildlife Sanctuaries, Flower Festival, Marine Park, Aero and Water Sports, Botanical Garden etc.

In India, there are many national parks like Ranthambhore-Rajasthan, where tigers and many animals are preserved and tourists are given facilities like a jungle safari.

Product Here event is the main source of attraction. Tourist comes to observe and participate in the events. Events are temporary in nature and are often mounted in order to increase the number of tourists to a particular destination.

Some events are for a short time scale while other last for longer days. Sometimes events are mounted in those places where the tourist’s eye usually don’t reach such as unusual exhibitions.

Some examples of event-based tourism product include Camel Polo at Jaisalmer- Rajasthan, Kite flying in Ahmedabad-Gujarat, where tourists also participate and observes. In Snake boat race-Kerela, one can enjoy witnessing it. Short time scale event includes Republic day parade-New Delhi and long days event include Khajuraho dance festival-Madhya Pradesh.

It is a particular site or a place, permanent in nature which is the main source of attraction for the tourists. In India examples are like Taj Mahal, Beaches of Goa, Sunset at Kanyakumari, Temples of Khajuraho, etc.

Characteristics of Tourism Product

Following are the main characteristics of tourism products:

Intangibility

Inseperatability, perishability, heterogeneity, essentially of users presence, complexity in marketing, absence of ownership.

As discussed earlier in this chapter, tourism products are actually the services that are being sold to the tourists, and it’s not the goods. Services can’t be seen, smelled, felt or touched, it can only be experienced. What can be seen is their effect.

For example, a guide’s comments can be heard. A travel agents books a ticket from place A to B. The ticket is just a piece of paper, an entry pass for using the service. An airline provides the service of transportation, comfort and leisure. A thorough evaluation of the service before buying it is therefore impossible and leads customers to use other cues to help them assess the service like the interior of the restaurant, the appearance of the hotel entrance or the behaviour of the receptionist.

A service of a tourism product cannot be separated from the provider of the service. For most services, the producer and the seller are the same people. Services are manufactured and consumed at the same time. In the case of products, consumption takes place after production and often far away from the factory.

In the case of tourism products for example a guide has to be present to explain the attraction. A pilot has to be present to fly a plane. Both service providers and the service user have to be physically present for mutually satisfying the exchange of service. The visitor to a national park cannot experience counter service if the receptionist is not present, nor can the receptionist render the service is the visitor is absent.

The tourism product is highly perishable, which means it cannot be stored. For example, a hotel room or an aeroplane seat that is not sold on a particular day, is a lost sale. If the tourists don’t visit a particular place, the opportunity is lost. If the opportunity is lost, the moment is lost. This adversely affects the tourism business.

The demand has to be managed by the marketer in such a way as to ensure that as little capacity as possible is lost. The problem is unique for the tourism industry. Due to these reason sometimes heavy discount is offered by hotels or transport generating organization.

Services offered by most people are never the same. There is some degree of variability present in almost all types of services. This may be due to the extensive involvement of people in the production of service. This issue is not present when a machine dominates. Depending on the mood, behaviour, working style, efficiency and knowledge of the people variability exist.

For example, all air hostesses cannot provide the same quality service like the other. Yet again the same individual air hostess may not perform the same uniform service both in the morning as well as in the evening.

Even the tour package and the aircraft can’t be consistent of equal standards because an aircraft can de-shape the travelling pleasure into a nightmare and a holiday seaside is ruined by the prolonged rainy spell.

Another reason for variability of service is the involvement of customers in the process of product delivery and consumption system. For example, a musician performing at a program may not perform with uniformity. His performance will depend on the response and appreciation of the audience. Hence service varies from person to person, time to time and from situation to situation.

In travel and tourism businesses, service quality depends on uncontrollable factors and there is no sure way of knowing whether the service delivered matched what was planned or promoted, or what was expected by the customer.

Presence of the user is necessary to avail the service. The customer or the guest has to be personally present on the spot. It can’t be brought to the user. As in the case of other tangible goods, the buyer can avail the service from anywhere or from his home. But in the case of tourism products, it is not at all possible. The tourist has to go to the tourist attraction to experience the tour.

However the marketers here need an in-depth study of users behaviour, tastes, preferences, likes and dislikes so that expectations and realities coincide and satisfaction is made possible.

Tourism product involves complexity in marketing. It requires a lot of effort to convince a buyer. As in the case of travel agents. In order to sell their tour package they need to convince the customer by introducing various facilities, discounts and services. Product demonstration is bit difficult in the case of tourism product.

As in the case of tangible goods like television. As soon as we buy it, we become the owner of it. But this is not the case with tourism products. A tourism product when sold to the customer or tourist, he can only avail the service but can’t be its owner.

For example, while buying a hotel room, while buying a seat in an aircraft or a luxurious train, you can only take the facilities of the service for a certain time. You can’t be its owner for lifelong.

Please Share This Share this content

• Opens in a new window X
• Opens in a new window Facebook
• Opens in a new window Pinterest
• Opens in a new window LinkedIn
• Opens in a new window Reddit
• Opens in a new window WhatsApp

You Might Also Like

Natural heritage of kerala, tourism in india, what is catering industry, segments, types, what is breakfast types, table setting, cover, order of service, shopping festival in india, places to visit in dhanbad (2024), leave a reply cancel reply.

Save my name, email, and website in this browser for the next time I comment.

What is a tourism product? Classification of tourism product services

Here at Hanami Hotel Danang , nestled in the heart of this vibrant coastal city, we have come to understand the true essence of what a tourism product is. It is more than just a service; it’s an experience—a tapestry of local culture, meticulous service, and memories waiting to be woven.

What is a tourism product? Classification of tourism product services. Venture with us as we explore the physical and emotional contours of these offerings, understanding their importance in the grand puzzle of travel and human connection.

This exploration is as much a journey for us as it is for you—arousing passion, expanding knowledge, and cementing our shared love for the world’s cultures and the adventures they hold.

What is a tourism product? Definition of tourism product

A tourism product is the elements and services created to meet the needs of tourists during their travels. These are the components and experiences that tourists can purchase or use to enjoy and make the most of their trip.

Tourism products include transportation means such as airplane tickets, train tickets, or bus tickets for tourists to reach their desired destinations. Additionally, there are accommodation services like hotels, resorts, guesthouses, or homestays, providing comfortable and convenient places for tourists to stay.

Tour packages are a popular tourism product, offering a service package for tourists to visit and explore destinations. They often include transportation, accommodation, tour guides, and related tourism activities. Tour guides are also an important service, accompanying tourists and providing information, guidance, and navigation throughout the trip.

Moreover, tourism products also include entertainment and sightseeing activities. Tourists can engage in activities such as nature exploration, historical site visits, enjoying the sea, and outdoor sports activities. Tourism products may also include culinary services, shopping, and visiting entertainment venues.

Components of a tourism product

Having grasped the concept of a tourism product, we will delve into its fundamental components. A tourism product is a complete experience from when a tourist leaves home until they finish their trip. From this, we can infer that the elements constituting a tourism product include:

Transportation

Transportation is an indispensable element of a tourism product. It ensures that tourists have the means to arrive at and move between different destinations during their trip.

The modes of transportation are diverse and varied, including airplanes, trains, buses, bicycles, motorcycles, and even other vehicles such as boats, cruise ships, cable cars, and horse-drawn carriages.

Airplanes are the primary mode of transportation for international or long-distance travel. They offer speed, convenience, and comfort to tourists. Airplanes also enable tourists to overcome long distances and access hard-to-reach destinations that might not be possible with other modes of transport.

Trains are a popular mode of transportation for domestic and international travel. Buses are a flexible and cost-effective option for city and regional travel. Bicycles and motorcycles help tourists save on transportation costs while also providing a more intimate experience with the environment and local community.

Additionally, in certain special cases, other modes of transportation such as boats, cruise ships, cable cars, and horse-drawn carriages may be used.

Boats and cruise ships are suitable for exploring seas, rivers, lakes, and islands. Cable cars offer thrilling sensations and stunning views from above. Horse-drawn carriages provide a traditional and environmentally friendly experience for tourists.

Accommodation Services

The provision of rest and lodging is a crucial part of a tourism product. When traveling, tourists need a safe and comfortable place to rest after their exploratory activities. Accommodations can include various types such as hotels, resorts, guesthouses, rental apartments, homestays, camping sites, and tents.

Hotels are a popular choice for tourists, especially in urban and developed tourist areas. Hotels typically offer a range of services and amenities such as comfortable bedrooms, restaurants, bars, fitness centers, and other facilities like spas and swimming pools.

Hotels can be categorized by star ratings to assess the level of comfort and quality of service. Whether it’s a hotel, resort, guesthouse, rental apartment, homestay, or camping site and tent, tourist accommodations must meet the basic needs of tourists for comfort, safety, and convenience.

Bedrooms should be fully equipped with necessary amenities such as beds, wardrobes, and lighting. Additionally, bathrooms must be clean and include facilities such as showers, bathtubs, sinks, and personal hygiene items.

Moreover, accommodations must also provide other amenities and services such as restaurants, bars, fitness centers, spas, swimming pools, cable TV, internet, and room service. The service staff should also be friendly, professional, and ready to assist tourists throughout their stay.

 Activities and Experiences

Travel is not just about moving to a new location, but it is also an adventure filled with experiences and exciting activities. As tourists embark on their journey, many activities and experiences await them.

One of the most significant experiences in travel is discovering famous tourist landmarks. Tourists can visit large cities and charming small towns, explore the unique architecture of temples, shrines, palaces, and churches, or admire the stunning scenery of dense forests, mountains, rivers, and seas.

Each destination has its own beauty and draws tourists into its historical and cultural story. Beyond exploration, tourists can also participate in entertaining activities.

With beautiful beaches, tourists can dive into the underwater world through activities like scuba diving, windsurfing, sailing, or surfing. Rivers and lakes also invite tourists to go kayaking or enjoy exciting boat trips.

If tourists want to challenge themselves, they can go mountain climbing, hiking, or exploring fascinating caves. These activities not only allow tourists to enjoy the incredible natural beauty but also bring a sense of excitement and satisfaction.

An indispensable part of travel is enjoying local cuisine. Tourists can embark on a culinary adventure, savoring specialty and traditional dishes at restaurants, eateries, and night markets.

Sampling unique foods and immersing oneself in local culinary culture is a wonderful way to gain a deeper understanding of the country and its people.

Guidance and Support Services

Services that provide information, guidance, and support for tourists during their travels are crucial to ensure they have a smooth and memorable trip. First, professional tour guides play an important role in providing information and guidance to tourists.

Customer support services also play a vital role in meeting the needs and requests of tourists. Customer support staff will advise and assist tourists in booking, ticket changes, itinerary information, and answering related queries.

Tourism information is also an essential service to help tourists get the necessary information before and during their trip. Tourist information centers provide tourists with information about tourist sites, destinations, schedules, and activities.

Tourists can learn about famous landmarks, local events, and available entertainment activities. Tourism information also includes tour packages, attraction tickets, and pricing information so tourists can choose and shape their trip.

Food and Culinary Services

In the field of tourism, elements related to culinary services and food play an important role in providing a unique and culturally rich experience for tourists. These services include a range of options such as restaurants, cafes, bars, hotel dining services, or on-site cooking services.

Restaurants are where tourists can enjoy a variety of local signature dishes. Restaurants may serve traditional dishes, local specialties, and international cuisine. By tasting local dishes, tourists have the opportunity to experience and discover the flavors, aromas, and cooking styles characteristic of the destination.

Restaurants can also create a unique space and environment for tourists to enjoy their meal and the culinary atmosphere.

Cafes and bars are also popular spots for tourists to enjoy drinks and light snacks. Cafes typically offer a variety of coffees, from traditional black coffee to special and blended types.

Additionally, cafes may serve other beverages such as tea, fruit juices, and light alcoholic drinks. Bars usually focus on serving alcoholic beverages and provide an entertainment space for tourists.

Classification of tourism products

There are many ways to classify tourism products based on various factors. Below is a common classification based on the main types of tourism products:

Cultural Tourism

This includes exploring historical sites, scenic landmarks, unique architecture, and experiencing the culture of a place. This could involve visiting museums, touring historical sites, attending local cultural festivals and events, and learning about the culture, history, and traditions characteristic of a culture.

Exploring historical sites, scenic landmarks, unique architecture, and experiencing the culture of a place is an important part of the travel experience. Through visiting museums, touring historical sites, attending local cultural festivals and events, and learning about the culture, history, and traditions of a culture, tourists have the opportunity to access the profound and unique aspects of the place they visit.

This not only provides tourists with a great experience but also expands their knowledge and understanding of the world around us.

Nature Tourism

This includes exploring and discovering beautiful natural landmarks and areas such as forests, mountains, seas, lakes, streams, meadows, and national parks. Tourists can engage in activities such as mountain climbing, hiking, fishing, caving, scuba diving, or visiting and enjoying special natural landscapes. Exploring and enjoying beautiful natural landmarks and areas gives tourists unique and unforgettable experiences. Tourists can participate in many activities such as mountain climbing, hiking, fishing, caving, scuba diving, or visiting and enjoying special natural landscapes. Each landmark and area offers its own beauty and unique experience, contributing to making the trip interesting and memorable.

Recreational Tourism

This tourism includes visiting amusement parks, theme parks, zoos, playgrounds, stadiums, casinos, popular shopping venues, and other entertainment activities. Tourists can enjoy games, go on rides, watch performances, and participate in sports and entertainment activities at these locations.

Tourists can enjoy games, participate in sports and entertainment activities at places like amusement parks, theme parks, zoos, playgrounds, stadiums, casinos, and explore popular shopping venues. With the diversity and richness of these activities, tourists can create memorable moments during their trip.

Arts and Culture Tourism

This includes experiencing art and cultural events such as watching art performances, cinema, live music, opera, ballet, visiting art exhibitions, participating in art courses, or engaging in local cultural events.

These artistic and cultural experiences not only bring joy and relaxation but also help tourists discover and understand more about the local culture, history, and artistic development. At the same time, participating in these activities creates opportunities for interaction, connection, and sharing of artistic and cultural passions with other art lovers.

Sports and Adventure Tourism

Activities include mountain climbing, hiking, cycling, wall climbing, caving, surfing, scuba diving, swimming, exploring terrain, camping, and other adventurous activities.

These sports and adventure activities bring excitement, challenge, and discovery to tourists. However, before participating in any activity, tourists should check safety and comply with local regulations to ensure a safe and memorable experience.

Resort and Relaxation Tourism

Enjoy a relaxing holiday at resorts, villas, luxury hotels, or famous beach, mountain, or city destinations. Tourists can enjoy spa services, massages, yoga, swimming, golfing, and participate in recreational activities at the resort.

Enjoying a relaxing holiday at resorts, villas, luxury hotels, or famous destinations provides tourists with an enjoyable and serene experience. From enjoying spa services, yoga, and swimming to playing golf and participating in recreational activities, people can find relaxation and happiness in their vacation.

As we conclude this journey into the intricacies of tourism products, we hope you have gained a deeper appreciation for the myriad experiences and services that come together to create memorable travel moments. Here at Hanami Hotel Danang, our greatest reward is crafting unforgettable memories for our guests against the backdrop of this vibrant coastal city and the alluring Vietnamese culture.

We invite you to become part of this tapestry yourself—allow us to be your guide as you explore lantern-lit streets, discover local delicacies, and find sanctuary in the arms of gentle waves and cherry blossoms in bloom.

Our tailored experiences, meticulous service, and insider knowledge of Danang’s hidden gems await. Contact us at Hanami Hotel Danang or visit hanamihotel.com to begin your journey today.

CONTACT INFORMATION:

• Address: 61-63 Hoang Ke Viem, Bac My An, Ngu Hanh Son, Da Nang
• Phone: 0905432992
• Email: [email protected]
• Website: https://hanamihotel.com
• Google Map: https://g.page/hanamihotel
• Facebook : https://facebook.com/hanamihotel

Bài viết liên quan:

• Dong Dinh Musium – The Memory garden between Da Nang’s Mountains – Hot Spot for Tourism
• DA NANG TOURISM – THE TRANQUIL AND ANCIENT BEAUTY OF HOI AN
• TOP 7 BEST ECO-TOURISM SITES IN DA NANG
• Ngam Doi eco-tourism zone in Danang
• YEN RETREAT IN HOA BAC – DA NANG: BEST PLACE FOR EXPERIENCING ECO-TOURISM IN DA NANG
• CHILLING OUT AT SUOI MO ECO-TOURISM AREA IN DA NANG
• Hoa Bac tourism sector – Get back to nature in Danang
• Da Nang Beach Tourism Season 2023
• Things you don’t know about MICE tourism in Da Nang
• What’s special about the Da Nang Golf Tourism Festival?

About The Author

Lê Thị Kiều Trinh

Hanami đề xuất, bài viết mới nhất.

The 10+ best seafood markets in Da Nang, Reviews by Hanami

Top 7 best places to buy fortune cats in Da Nang

Top 11 best backpack shops in Da Nang

The 11 best violin shops in Da Nang, Reviews by Hanami

Top 12 best vegetarian hot pot restaurants in Da Nang

7 Keys to creating a successful tourism product

What is a tourism product?

Basic functions of a tourism product, keys to designing a tourism product, examples of tourism products.

Within the competitive tourism sector, innovation, and the offer of products to propose stands out as one of the real competitive advantages and differential elements to navigate with strength in this tough market.

The tourism product becomes an important resource to work to attract a different audience and diversify the philosophy and brand of our travel agency .

But… How do you create a successful tourism product? Let’s highlight the keys that will help you develop an optimal tourism product. Let’s start at the beginning…

The tourism product is defined as the total set of functionally interdependent tangible and intangible elements that allow the tourist to meet their needs and expectations.

From a marketing point of view, the tourism product is a resource that fulfills two very different tasks:

• Each tourism product meets a need of its consumer through the benefits it incorporates. 
• Tourism products are the means to achieve sales targets. The design of the tourism product itself is the claim to increase conversions. 

Also, it is necessary to point out the importance of knowing the type of customer we want to attract and whether we can offer a product that meets the unique expectations of the selected niche of customers . It is equally important when designing a tourism product to consider the special travel agency regime to know the fiscal responsibilities and also how each transaction should be accounted for.

Also, our travel agency must have a brand culture and philosophy that must be in line with the tourism products to design and sell.

Given that meeting the needs and expectations of the client is a key factor in creating a tourism product, we must look to the functions that this tourism product must perform.

It is, therefore, possible to list 6 priority functions to be resolved to outline our tourism product project:

• Allows the tourist to participate in the main activity of the trip. 
• Besides being a part of the main activity, it facilitates to live the total experience of the trip as the tourist wants. 
• It facilitates transport to and from the destination , as well as within the destination itself. 
• Enhance the social interaction of the tourist during the trip. 
• Helps and simplifies travel preparation and management. 
• It makes it easier for the tourist to remember and revive the trip , to share that trip and experience with other people. 

Note : The main activity can be defined as the objective to be carried out with this tourist package: ecological tourism, cultural tourism, etc…

Through these functionalities, it is already possible to have a basic outline of what our tourism product should contain.

It is time to show the main keys to consider in drawing a professional and highly competitive tourism product.

Keeping the tourist as the main axis of the tourism product, we will start with those keys related to the needs that urge a person to make a tourist trip.

Means and conditions for participating in the main activity of the trip 

Everything related to what is offered to the tourist to enjoy what he wants for the trip. 

Elements in the trip’s destination and the trip’s transportation, for example, luxury cruises, boats, or trains.

Natural, cultural conditions, people, socio-economic conditions of destination, events, facilities, equipment, goods, and services related to the main activity also come into play in this category.

Qualitative aspects to involve the tourist in the main activity

At this point, all those aspects that help establish how the tourist is to engage and interact in the journey are defined.

The issues can be very different:

• Family trip or exotic destination 
• Greater or less distance from the place of residence to destination. 
• Luxurious or traditional atmosphere, etc… 

On the other hand, also, everything linked to all the comforts a tourist needs to visit a destination and consume its “attractions” must be covered.

Modes and other transport components

Clear and detailed definition of all transport systems enabling the transition from a place of residence to destination and vice versa, as well as within destination.

Elements for social interaction and tourist comfort

Everything related, and that allows the tourist to engage in leisure activities, communicate with others, socialize or simply keep informed and perform routine activities.

In this category, we can include accommodation, points of sale and/or shops selling food, public baths (outside accommodation), all kinds of services (communication, internet, etc…) sports and leisure facilities, cultural events, etc.…

These details are a priority and important as they strengthen the comfort and decision-making capacity of the client .

Preparation of the management and execution of the trip

In this section, all those aspects that facilitate and give transparency to everything related to the management of the trip come into the scene.

Everything here is important: All tourist information media such as travel guides, maps, national tourist organizations, travel-related websites, services provided by tour operators, travel agencies, companions, translators, certified travel guides vaccines, solar protection, medicine, and health services; passports, visas, travel insurance; credit cards and other financial services… up to the number of packages or suitcases to carry.

Practical details on participation in the main activity of the trip

The customer must leave nothing to the imagination, it must be all well presented.

Here, questions such as sale or rental of sports equipment, sports lessons, wine tasting, etc…

These are aspects that help the tourist in understanding the tourism product and in the benefits/experiences that he will draw from it .

Remember and relive your experiences

A tourism product must be a unique and remembered experience by the customer, to satisfy his wishes and leave a good note in our brand of a travel agency.

Thus, to stimulate sentimental or emotional value, it is interesting the idea of offering memories and gifts, usually with sentimental and symbolic values for tourists, is a point that adds value.

They allow tourists to remember and relive their experiences, thus prolonging the pleasure of the trip. They are also used to share the travel experience and to strengthen ties with others.

Tourism products are designed and adapted to the needs and desires of the selected audience. So, there are many possibilities. Here are some of the most popular tourism products:

Spiritual tourism

Spiritual tourism is tourism motivated by faith or for religious reasons . 

What is the tourist looking for? An experience based on a sacred pilgrimage, a journey led by faith, religion, and spiritual realization. The tourist seeks to satisfy some personal or spiritual need through tourism.

Therefore, the design of the spiritual tourism product must focus on these two points to find different forms and intensities of spiritual tourism motivated to a greater or lesser extent by religious or, on the contrary, cultural needs or in the search for knowledge.

Spiritual tourism provides the visitor with activities and/or treatments intended to develop, maintain, and improve the body, mind, and spirit . Many elements are incorporated that involve a learning experience.

A good example is the tourism products related to the Camino de Santiago. A product that offers everything the tourist/pilgrim wants:

• Accommodations 
• Transportation 
• Support vehicles 
• Guides 
• Monitor… 

Wine tourism

Wine tourism or wine tourism is one of the most fashionable forms of tourism. It is the type of tourism around the culture and professions of wine and vineyards, being related to culinary and cultural tourism .

What is the wine tourist looking for? The main motivation is to experience wine tastings and buy products from the region, but also identify other very important issues: Socializing, learning about wines, entertainment, rural environment, relaxation…

The main activities are based on the visit to vineyards, wineries, wine festivals, and wine shows, for which the tasting of grape wine and/or the experience of getting to know the wine region.

For example, a well-known tourism product for wine lovers is that linked to the city of Haro , designed with such important elements as:

• Hotels and other types of accommodation 
• Round-trip transportation from the winery to the lodging location 
• Visit wineries, wine libraries, restaurants. 
• Activities are related to wine tasting, marriage… where the capacity to socialize and share experiences is encouraged. 

Ecotourism has grown in parallel with increasing society’s awareness of environmental protection.

Ecotourism is a type of tourism responsible for natural areas with special care in conserving the environment, sustaining the well-being of the local population, and involving knowledge and education .

What is the ecotourism tourist looking for? They are people with a great awareness of the environment, eager to know and be part of experiences that help the environment and others.

A good tourism product based on ecotourism should offer:

• Activities that encourage cultural awareness by promoting respect for the place you travel and the community you visit. 
• It will help to create cultural awareness by promoting respect for the place you travel and the community you visit (environmental education workshops, ecosystem observation…) 
• Activities that promote the well-being of the local community, including the economy. Guided ecological tours with the consent and participation of residents. 

Ecotourism offers experiences that have a low impact on nature by preserving resources and protecting the environment.

A good example of ecotourism: Visit the local farmers’ fields in Chiapas, Mexico, learning how to make cocoa and supporting the conservation of their environment through product purchases on a guided tour.

Tour operators, travel agents, or travel agency management groups should consider these keys when creating and selling a successful tourism product. We must not forget that the tourism products respond effectively and attractively to the wishes, needs, and expectations of the selected type of customer , being a resource of great value to increase our brand image and customer loyalty.

Subscribe to our newsletter

Yay you are now subscribed to our newsletter.

Cristóbal Reali, VP of Global Sales at Mize, with over 20 years of experience, has led high-performance teams in major companies in the tourism industry, as well as in the public sector. He has successfully undertaken ventures, including a DMO and technology transformation consulting. In his role at Mize, he stands out not only for his analytical and strategic ability but also for effective leadership. He speaks English, Spanish, Portuguese, and Italian. He holds a degree in Economics from UBA, complementing his professional training at Harvard Business School Online.

Mize is the leading hotel booking optimization solution in the world. With over 170 partners using our fintech products, Mize creates new extra profit for the hotel booking industry using its fully automated proprietary technology and has generated hundreds of millions of dollars in revenue across its suite of products for its partners. Mize was founded in 2016 with its headquarters in Tel Aviv and offices worldwide.

Related Posts

Travel Niche: What It Is, How to Leverage It, Case Studies & More

14 min. Niche travel is one of the few travel sectors that have maintained their pre-COVID market growth. By catering to specific traveler segments, niche travel developed products around adventure travel, eco-tourism, LGBTQ+ travel, and wellness retreats. Take adventure tourism as only one segment of the niche tourism market.  In 2021, it reached 288 billion […]

4 Lessons You Can Learn From the Best Tourism Campaigns

13 min. Businesses in the tourism industry rely heavily on marketing to generate leads and boost conversion rates. Tourism marketing is as old as tourism itself – and it always reflects the destination and service benefits relevant to the current travelers’ needs, wants, and expectations. In other words, tourism campaigns must constantly move forward, and […]

The Vital Role of Market Segmentation in the Tourism Industry

15 min. The tourism industry is an ever-growing and competitive landscape, presenting both challenges and opportunities for businesses operating within it. This is where market segmentation comes in handy. In this blog post, we will discuss what market segmentation is, the importance of market segmentation in the tourism industry, and how online travel agencies can […]

Our Services

Tourism product development.

At one extreme, tourism product development can be defined as embracing all elements with which the visitor to a destination comes into contact. This includes infrastructure (e.g., transport, utilities), the service personnel, places of lodging, attractions, activities, facilities, and amenities.

Learn more about our services

At a more focused level, tourism product development can be defined as comprising only those attractions, activities, and facilities provided explicitly for the visitor.

The tourism product development is the process by which the resources of a destination are shaped to meet international and domestic customers’ requirements. This covers everything from humanmade facilities or attractions to activities requiring varying levels of physical input and organized events such as festivals and conferences.

Development

Full range of design and engineering, procurement, construction, operation and maintenance, and project management services for hotels, airports, marinas, retail, service apartments, commercial spaces and all kinds of facilities for tourism and hospitality sectors.

Consultancy

As the leading international tourism development and investment brand WTFI has been providing consultancy services on tourism development for policy makers for over 10 years

Innovations, Experiences and Services

Creating a well planned tourism product is vital for better positioning and visibility in global tourism tourism market. It brings innovations, experiences and services to the market for tourists to charmed.

Luca Favetta | Member of International Council

WTFI is registered with the number of UK00003455032 by Intellectual Property Office of United Kingdom

Privacy Policy & Terms of Service @ 2022 World Tourism Forum Institute

Developed by Hypno Digital

FEATURED CONTENT

WTFI Town Halls

HATT Business School

• Market information
• Develop your tourism product
• Share this on:

How to get started developing your tourism product

Whether you are offering guided tours, boat rentals, accommodation or provide river cruises, you are offering services to your customers. For today’s tourists, just a service is not enough. They seek experiences, often even experiences that contribute to their quality of life. This document offers you guidelines to identify your customers’ needs and to develop innovative products, services or experiences that really matter to them.

Contents of this page

• Why develop your product with this method?
• This is what you need before you start
• Get inspired by your (potential) customer (Step 1)
• Make a persona for each type of customer (Step 2)
• Identify the core needs of the customers and the key opportunity areas for your business (Step 3)
• Develop a multitude of ideas for solutions, or new products, services or experiences (Step 4)
• Turn your best ideas into prototypes that can be tested and improved step by step (Step 5)
• Test your prototypes in practice (Step 6)

1. Why develop your product with this method?

The needs of tourists from Europe have evolved over the past few decades. Current tourists are looking for quality service and experiences that really matter to them. To offer quality and experiences that matter to your customers, you need to know them very well, personally. What quality means for some may be different from what it means to others. And an experience that is life-changing for some, may be dull to others. This report teaches you how to get in touch with your customers, how to learn what they really need to boost their quality of life, and how you can design products, services or experiences that really matter. The nice thing is that if you succeed, your customers will share their experiences with their friends and followers, also on social media. In other words: they will promote your product to others. For free!

The current coronavirus crisis has put international travel under pressure . In many countries, tourist arrivals have nearly dropped to zero. It is likely that international tourism will be affected by the COVID-19 crisis for the next couple of years. Several scenarios are possible. The frequent holidays made by Europeans to faraway destinations may decrease and this may turn into less frequent and longer holidays closer to home. The battle for tourist visits may become fiercer. The attention for sustainability may also increase. Europeans might be willing to travel longer distances, but only for a very good reason. To tempt potential tourists from Europe to come to your country, your region or your business, you need to stand out, to understand the traveller well and be super-innovative – more than ever. Amazing stories and experiences may become even more important. As will issues of safety, security and assisting tourists in returning to their home countries.

• Read more on this in our study on how to respond to COVID-19 . This study offers insight into actions you should take immediately, while also providing guidance on long-term decisions.   

The method described in this report is based on the principles of design thinking. It has been employed internationally in all kinds of businesses. To mention a few examples in tourism:

• Destinations like the Bahamas (an example is the One-Stop Online Booking and Immigration Card ).
• Design for All , also referred to as ‘universal design’, to allow access for people with disabilities. You can read more about this in this thesis .  
• Hotels. For example Hyatt Hotels has developed various prototype hotels around the world, which are free from regulation. Another example is The next-generation hotel experience , getting the details right to improve travellers’ stays, and designing a modern work experience for business travellers .
• Visitor attractions, like improving the tourist experience of the Polar Bear Society , a visitor attraction in Norway, or bringing Tourists to a hidden coastal gem .
• Travel and transport. Examples are pioneering a car-sharing service and developing a customer strategy for public transport in Oslo.
• Restaurants, like creating a fresh and modern take on the Indian culinary experience .
• Organisation and development. An example is turning a historic music college into a collaborative learning platform .
• Tourism-related services. An example is the mobile visitor centre in Saint Paul, Minnesota. Another example is to ‘design of waste out of the food system’, taking place in a collaboration between hotels, food banks, foundations, and entrepreneurs to fight food waste .  

2. This is what you need before you start

The procedure described below is not difficult. To follow the steps, it helps to have a few basic tools – but only if you already have them) – since it is the idea of how you are doing this that is important .

• Lots of sticky notes (Post-its)
• Sheets of flipchart paper

In product development, we try to find a match between the needs of the European market and any of your local situation and business resources that might entail certain limitations. The following tips are related to this.

• Where possible, engage your customers to build a personal relationship and to get to know them well.
• If you find it difficult to engage with customers from a different culture or find it difficult to understand them, try to work with local partners who can serve as intermediaries (such as tour operators in source countries) with the guests or act as interpreter.
• Involve others working in your business or in other businesses in the community where you live, people working in education, or other people with an open and positive mind. This will make it more fun and rewarding. It will also contribute to the quality of the work.
• To work through the process described below, you may want to ask support from a local CBI coach and or an intern from a university abroad, for example via SAVE tourism .

Below, the steps are described to help you to develop innovative products and services for new and existing customers. Staying tuned with the market is an ongoing process. The outcomes of each step are illustrated in Figure 1.

3. Get inspired by your (potential) customer (Step 1)

You can only create meaningful products, services and experiences for your customers if you truly understand them. So try to understand the situations and experiences that are or might be meaningful to them. If you do not have any customers yet, or are looking for new customers, you need to get your inspiration from existing market intelligence (step 1a). If you already have customers, you can use these customers as a source of inspiration (step 1b).

a. Get inspired by potential customers

The largest share of potential customers doesn’t know you or your product offering, or perhaps even the destination. So you have to draw their attention by offering products and services that matter. What do you need to do to make a start?

• Get access to market intelligence reports of the European market. Subscribe to free newsletters or blogs of market intelligence institutions, such as UNWTO , WTTC , Global Sustainable Tourism Council or IATA . Read the annual UNWTO publications , such as Tourism Highlights and World Tourism Barometer .
• Review and read the market intelligence information provided by CBI . This webpage gives access to a CBI trend report and promising market segments and target groups on the European market.
• These sources will help you to identify important (emerging) trends and markets in Europe on a regular basis.
• Try to identify a few target groups or niches that may feel attracted to your business.

b. Get inspired by existing customers

When customers make use of your service business they could also inspire you to make new products. This means that you would need to involve them in the development process. Do not ask them what they want (as they may not know) with a questionnaire, but try to get an idea of the needs they have in a different way.

There are three nice alternative methods you could use, although there are other methods available as well, such as the ones in Ideo’s free Human Centered Design Toolkit . The first time you do so, it might make you feel uneasy to approach a customer. However, always remember that communication with them is key in developing a better product or service.

• It is your duty as an entrepreneur to look after your customers. So you can see it as part of your job to observe your customers during different phases of their customer journey and to learn to understand this customer journey through their eyes. Such observation should be done discreetly and quietly, so as not to disturb or annoy them while enjoying their holiday or business trip. It gives you insights into what they think, what they do, how they interact with others, and what they dream and wish for. While you observe your customers, you can also make notes. Afterwards, you need to find a moment that suits your customer to share your observations in an informal setting, and ask questions about things you did not expect, did not understand, or what they found appropriate. Again, make notes!
• You may also ask your customers whether they would like to help you with improving your services. Ask your customers to take photographs . You could also ask your customers to document their customer journey with a camera and to take pictures of what they consider appropriate products or services. When they give you the pictures, ask them whether there is a suitable moment for them to share some thoughts about these. When you discuss them, do not forget to make notes. Do not insist if a person does not want to cooperate, but try others instead.
• The third approach also requires asking your customers for help in making your services more appealing to them. Ask your customers whether they are willing to take a number of ‘memory cards’ along with them while using your product or service. These cards have to be printed by you beforehand in a kind of postcard format (such as in Figure 2). Ask your customers to fill in a card each time they experience something they did not expect, or which they find very positive or negative. Ask them to return the cards to you by the end of each day or when they leave. If they are open to doing so, ask them whether they have time to share their thoughts with you. If so, be sure you make notes.
• Download and make use of the print version of the ‘memory card as shown in Figure 2.

A useful way to describe an individual customer is by using a puppet template. A puppet template is a simple picture of a single customer surrounded by clouds, words bubbles and icons, such as illustrated in Figure 3. Ideally you would make a puppet template together with a customer. This shows that you are open and willing to build a personal relationship with them. A good moment is when you have the chat about the observations, the photographs that they took, or the memory cards that they filled in. During this conversation you could also talk about the person’s age, where they come from, their work, what they do in their daily life, their main interests in life, their worries, their wishes and dreams, or their preferences in tourism. This generates a lot of relevant background information. Take notes! Each customer you talk with gets a separate puppet template.

You will end up with a number of puppet templates. Review the puppet templates and take a closer look at each one. What do you see? You will probably discover that some of the templates are similar to one another. This means that you have already started to understand your customers a little better! Now, group together the puppet templates that show similarities. Each group represents a type of tourist that makes use of your business .

• Involve people in your business or community to assist you with understanding the language or the culture of the customer.
• They may help you with making puppet templates and with grouping the templates into types of tourists.
• Download and use of the print version of the puppet template shown in Figure 3.

4. Make a persona for each type of customer (Step 2)

In the previous step, you grouped the puppet templates with similarities together. Each group represents a type of tourist who could be attracted to your business. Now the challenge is to turn each type of tourist into a market description. You will do this in the form of a so-called persona: one persona for each type of tourist. You might end up with 4-8 personas. You may need to go back to the market intelligence and the puppet templates in step 1 for detailed information. A persona describes each tourist profile, point for point. It would be nice to add a quote on each persona to bring them to life.

A persona includes:

• List of ages & countries or origin
• List of work and ambitions
• Details about personal lives
• List of main interests
• List of wishes, preferences and dreams
• You may want to add photographs (for example from magazines) and quotes that characterise the type of customer
• Key locations they went to
• Alone? Or with whom?
• What did they like and what not?
• Which emotions did they show?
• Key issues, needs, dilemma’s

Most organisations have their own template. The Interacting Design Foundation explains the use of personas in a video . In the figures below, you will find a few examples with different levels of detail and a different style. You can put each persona on a different flipchart sheet.

5. Identify the core needs of the customers and the key opportunity areas for your business (Step 3)

Now you need to identify the most prominent needs, hurdles, issues or disappointments of each type of customer (persona).

• What would be remarkable events and experiences for that persona? What were remarkable events and experiences for that persona?
• What would be stunning likes for that persona? What were stunning likes for that persona?
• What would be striking issues, hurdles, disappointments, wishes or needs for that persona? What were striking issues, hurdles, disappointments, wishes or needs for that persona?
• You may need to go back to the market intelligence and puppet templates in step 1 for possible answers.
• Write each possible answer on a separate sticky note no matter from which persona. Try to get at least 25 sticky notes in total. More would be even better.
• When you are finished, group the Post-its together into areas of which you think they could have a positive impact on your customers’ experiences. Label each grouping of Post-its with a short telegram-style sentence that identifies the impact area . You could write these labels on a Post-it. A label could be, for example: “customers need more personal attention during the excursion”, “customers like to enjoy local cuisine”, or “customers need to be able to connect online”.
• Finally, turn each label into a positive opportunity for your business, also known as an opportunity area , and write it on another Post-it that you put at the top of the label. The header could be for example: “much personal attention during excursion”, “provide local cuisine to the customer”, “adequate Wi-Fi network”.
• Try to do this step with your team or with people from the community.

Now you have created opportunity areas for your business! It would be great if you were able to end up with anywhere between two to five such opportunity areas.

6. Develop a multitude of ideas for solutions, or new products, services or experiences (Step 4)

During the previous steps you started with collecting a lot of information that, step by step, you worked into just a few opportunity areas for your business. Now we will try to generate ideas for new products, services or experiences that matter to your customers for each opportunity area. Ideally, you should take this step together with colleagues in your business (not just senior staff!). If you think it is outside the range of your core business, you may also want to involve other businesses in your community.

For a long-term benefit, you first need lots of ideas to get a single good one. This one idea should be innovative and really different from the others. It might be a completely new solution to a problem customers did not even know they had. Do not be satisfied with an obvious solution!

How does it work?

Brainstorm for each opportunity area

Write out each idea on separate Post-its

Sort and group/cluster the ideas that you wrote down

• Brainstorm for each opportunity area that you created in the previous step. Come up with as many ideas as possible. Try to think of weird solutions, products, services or experiences. Never worry whether ideas are right, wrong, absurd or obvious. That hampers your creative flow of thoughts. If you do it with your team you might end up with dozens of ideas.
• Write each idea on a separate Post-it . If it helps you to understand it better, you can make a drawing of what you have in mind.
• Next, sort and group the ideas that you wrote down . Put the bad ideas to the side. Group the ideas that go well together into clusters. Give each cluster a label that tells you what the overarching idea is that the cluster is about. Brainstorming for the opportunity area “provide local cuisine to the customer” could lead to the following labels (Figure 5): start our own restaurant; authentic design of the restaurant; involve local farmers; kitchen staff recruitment and training programme; sustainable waste treatment.
• If you take a closer look at the clusters with the labels, you might get ideas about more details. You can write these down on additional Post-its. For example, once you have made a cluster with the label ‘waste treatment’, you may add other ideas: the name of a certification programme you would like to comply with; how you want to adhere to the certification programme; aspects of how you organise the waste flow in the restaurant and kitchen; communication of the certification with the customers, etc. So the labels give you inspiration to add to the clusters to make these more specific.

You will end up with a shortlist of your best ideas for solutions: new products, new services or new experiences. It is a good idea to show the ideas to some of your customers for feedback. In the case of Figure 6, you would end up with the following products and services: authentically designed restaurant (product); strengthened involvement with the community (service and products); collaboration with regional/national educational institutions to train qualified kitchen staff to be skilled at cooking, but to also always pay attention to hygiene rules; a certified waste treatment service.

7. Turn your best ideas into prototypes that can be tested and improved step by step (Step 5)

Now is the time to create a first design for the ideas for new products or services that you have created. We call this a prototype . If you make such a detailed design, this will help you to understand your idea better, but also to determine whether you have the resources to implement it, and whether there are any unforeseen challenges or consequences. These things are important for long-term success.

• Select the ideas that could upgrade one of your business’s current products or services or be integrated with such a product or service. These ideas will probably be the easiest to develop because they fit best with your everyday work.
• For each of the products or services that you selected, make a detailed description of how you want it to be designed. We call this a prototype of your product or service.

How do you make a prototype?

• Take a large piece of paper, such as a flipchart sheet, for each of your innovative ideas.
• Draw a cross on each sheet in order to divide it into four quarters. Each quarter is dedicated to one building block of your product or service idea, as illustrated in Figure 5.
• Describe and visualise what each building block would look like according to you. Put your description into a few sentences. Also use a few sketches, drawings and/or cartoons. You can use simple shapes, because the quality of the sketch is not so important at this stage.

• Start with the name.
• Write down the persona(s) who would feel attracted to the product because it matches their needs. You need to go back to the steps you completed earlier.
• Write down an appealing story about your new product or service that can be communicated with the European market. If you have a website, you can put the name and story of your new product/service there.

Each sheet that you have finished is a prototype of the ideas that you have created for innovations for your business. These are ready to be tested, like the prototype of a new car or airplane that is tested in a wind tunnel.

Never worry that your prototype is incomplete or indistinguishable from the final product that you have in mind. This will be dealt with later in the process.

8. Test your prototypes in practice (Step 6)

The final step is to put your innovative idea into practice and offer it to your customers as you have described and visualised it in your prototype. It is a process of learning by doing. You get feedback from your customers on what worked and what did not. Based on this feedback, you then create a new and improved version of your product, service or experience. Then you once again get feedback and make more improvements. In this way, your product or service will improve step by step.

• Do not expect immediate success but accept that you can make mistakes now that otherwise would cost you a lot of money later on.
• See it as a learning process. Be open to the feedback and do not defend your prototype if the users are less positive than you expected. Try to get as much feedback and suggestions for improvement as possible.
• Try to put some speed and efficiency in this phase. This will help you with moving quickly from prototype to putting it to the test, to gathering feedback, and then to making a better version of your product or service.
• Never forget that new trends and new markets will arise. This means that your customer and the needs of your customers may change over the years. This is why you need to restart at step 1 every few years to stay tuned to the needs of the market.

This study was carried out on behalf of CBI by   Molgo  and  ETFI .

Please review our market information disclaimer .

Enter search terms to find market research

Do you have questions about this research?

Ask your question

Webinar recording

29 September 2020

Related research

• What is the demand for outbound tourism on the European market?
• What trends offer opportunities or pose threats on the European outbound tourism market?
• What are the requirements for tourism services in the European market?
• (opens in a new tab) Twitter
• (opens in a new tab) Facebook
• (opens in a new tab) LinkedIn

Want to create or adapt books like this? Learn more about how Pressbooks supports open publishing practices.

Chapter 1. History and Overview

1.1 What is Tourism?

Before engaging in a study of tourism , let’s have a closer look at what this term means.

Definition of Tourism

There are a number of ways tourism can be defined, and for this reason, the United Nations World Tourism Organization (UNWTO) embarked on a project from 2005 to 2007 to create a common glossary of terms for tourism. It defines tourism as follows:

Tourism is a social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes. These people are called visitors (which may be either tourists or excursionists; residents or non-residents) and tourism has to do with their activities, some of which imply tourism expenditure (United Nations World Tourism Organization, 2008).

Using this definition, we can see that tourism is not just the movement of people for a number of purposes (whether business or pleasure), but the overall agglomeration of activities, services, and involved sectors that make up the unique tourist experience.

Tourism, Travel, and Hospitality: What are the Differences?

It is common to confuse the terms tourism , travel , and hospitality or to define them as the same thing. While tourism is the all-encompassing umbrella term for the activities and industry that create the tourist experience, the UNWTO (2020) defines travel as the activity of moving between different locations often for any purpose but more so for leisure and recreation (Hall & Page, 2006). On the other hand, hospitality can be defined as “the business of helping people to feel welcome and relaxed and to enjoy themselves” (Discover Hospitality, 2015, p. 3). Simply put, the hospitality industry is the combination of the accommodation and food and beverage groupings, collectively making up the largest segment of the industry (Go2HR, 2020). You’ll learn more about accommodations and F & B in Chapter 3 and Chapter 4 , respectively.

Definition of Tourist and Excursionist

Building on the definition of tourism, a commonly accepted description of a tourist is “someone who travels at least 80 km from his or her home for at least 24 hours, for business or leisure or other reasons” (LinkBC, 2008, p.8). The United Nations World Tourism Organization (1995) helps us break down this definition further by stating tourists can be:

• Domestic (residents of a given country travelling only within that country)
• Inbound (non-residents travelling in a given country)
• Outbound (residents of one country travelling in another country)

Excursionists  on the other hand are considered same-day visitors (UNWTO, 2020). Sometimes referred to as “day trippers.” Understandably, not every visitor stays in a destination overnight. It is common for travellers to spend a few hours or less to do sightseeing, visit attractions, dine at a local restaurant, then leave at the end of the day.

The scope of tourism, therefore, is broad and encompasses a number of activities and sectors.

Spotlight On: United Nations World Tourism Organization (UNWTO)

UNWTO is the United Nations agency responsible “for the promotion of responsible, sustainable and universally accessible tourism” (UNWTO, 2014b). Its membership includes 159 countries and over 500 affiliates such as private companies, research and educational institutions, and non-governmental organizations. It promotes tourism as a way of developing communities while encouraging ethical behaviour to mitigate negative impacts. For more information, visit the UNWTO website .

NAICS: The North American Industry Classification System

Given the sheer size of the tourism industry, it can be helpful to break it down into broad industry groups using a common classification system. The North American Industry Classification System (NAICS) was jointly created by the Canadian, US, and Mexican governments to ensure common analysis across all three countries (British Columbia Ministry of Jobs, Tourism and Skills Training, 2013a). The tourism-related groupings created using NAICS are (in alphabetical order):

• Accommodation
• Food and beverage services (commonly known as “F & B”)
• Recreation and entertainment
• Transportation
• Travel services

These industry groups (also commonly known as sectors) are based on the similarity of the “labour processes and inputs” used for each (Government of Canada, 2013). For instance, the types of employees and resources required to run an accommodation business whether it be a hotel, motel, or even a campground are quite similar. All these businesses need staff to check in guests, provide housekeeping, employ maintenance workers, and provide a place for people to sleep. As such, they can be grouped together under the heading of accommodation. The same is true of the other four groupings, and the rest of this text explores these industry groups, and other aspects of tourism, in more detail.

It is typical for the entire tourist experience to involve more than one sector. The combination of sectors that supply and distribute the needed tourism products, services, and activities within the tourism system is called the Tourism Supply Chain. Often, these chains of sectors and activities are dependent upon each other’s delivery of products and services. Let’s look at a simple example below that describes the involved and sometimes overlapping sectoral chains in the tourism experience:

Before we seek to understand the five tourism sectors in more detail, it’s important to have an overview of the history and impacts of tourism to date.

Long Descriptions

Figure 1.2 long description: Diagram showing the tourism supply chain. This includes the phases of travel and the sectors and activities involved during each phase.

There are three travel phases: pre-departure, during travel, and post-departure.

Pre-departure, tourists use the travel services and transportation sectors.

During travel, tourists use the travel services, accommodations, food and beverage, recreation and entertainment, and transportation sectors.

Post-departure, tourists use the transportation sector.

[Return to Figure 1.2]

Media Attributions

• Front Desk by Staying LEVEL is licensed under a CC BY-NC 4.0 Licence .

Tourism according the the UNWTO is a social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes.

UN agency responsible for promoting responsible, sustainable, and universally accessible tourism worldwide.

Moving between different locations for leisure and recreation.

The accommodations and food and beverage industry groupings.

someone who travels at least 80 km from his or her home for at least 24 hours, for business or leisure or other reasons

A same-day visitor to a destination. Their trip typically ends on the same day when they leave the destination.

A way to group tourism activities based on similarities in business practices, primarily used for statistical analysis.

Introduction to Tourism and Hospitality in BC - 2nd Edition Copyright © 2015, 2020, 2021 by Morgan Westcott and Wendy Anderson, Eds is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

Share This Book

Tourism Product Concept

Tourism Product Concept: Tourism product is usually as the amount of psychological and physical satisfaction it offers or delivers to the tourists when they are travelling to a new place or are on the way to a given destination it can be both domestic and international. Tourism products are more concerned towards services and facilities produced to fulfil the requirement of the consumers or the tourists.

Tourism product concept may be combined or amalgamated in nature i.e. the various attraction at a given destination, transportation facilities and other entertainment facilities result in full or 100% customer satisfaction. every element in tourism product is delivered by single supplier service or facilities like tour operator , airline companies, hotels and resorts etc. tourist products can be studied on the basis of four important elements viz. attraction, accessibility, accommodation and amenities.

Meaning of Tourism Product

Tourism product is a group of various components and elements which are combined together to satisfy the needs and wants of the consumers. The product in tourism industry is the complete experience of the tourist from the point of origin to the destination point and back to the origin point. The product in Tourism may be defined as the ‘sum total of physical and psychological satisfaction it provides to the tourist from the origin point to the destination and during their travelling route’.

Also read Tourism

The raw material in tourism industry is the natural beauty, Climate, History, Culture and people of the destination and some other important elements are the existing facilities or the infrastructure such as water supply, electricity, roads, transport , communication, services and other ancillary services. If any of these elements get missing, then it will completely destroy the whole experience of the tourist. Tourism products are offered in the market with some cost i.e. money. A Product could therefore be defined by its three characteristic: 

• The product must be offered
• It should satisfy some need or needs of the customers 
• It should be exchanged for some value 

Also read more about Tourism Product Life Cycle

So, we can say that if the Tourism Product i.e. the sum total of a country’s tourist attractions, transport systems, hospitality , entertainment, and infrastructure is well designed and developed and then offered to the tourist this will ultimately result in consumer satisfaction. Tourism products are nothing but various services offered to the tourists, and falls under the category of service product. Tourism product is the prime reason for tourist to choose a destination. Tourism product helps in earning revenue for the destination. So all the tourism product should be properly preserved and promoted

A) Attraction

Attraction is the first and the most important element of tourism product, until unless there is an attraction, then only a tourist would be encouraged to visit a particular place. Attraction is a very important element as it determines the choice made by a tourist to travel to a particular place rather than another place or destination. An attraction can be of different types such as historical buildings and monuments, areas of archaeological interests, mountains, beaches, resorts, national parks, wildlife sanctuaries, Flora and Fauna, events like conferences, exhibitions, sports meet, world cups, music and art festivals etc.

You may may be interested to read about Aviation Industry

Demand for tourist products can be determined on the basis of upcoming trends in the market or current fashions. Present fashion in the market are helpful for analyzing and fulfilling the demand for different tourism products (which can include attractions, services and other amenities). Tourist visiting to hill stations for their natural beauty and panoramic views may choose to opt for some other destination due to current trends in the market and sometimes change in the fashion.

You may read History of Travel and Tourism

Peter has sketched up a list of the different attractions that are important in the tourism . Though, the attractions of tourism are, to a very large amount, geographical in character. Location and accessibility (whether a place or coastal or inland position and the ease with which a given place can be reached) are essential. Those who wish to seek wilderness and adventure may think of physical space at a destination.

Landscape or scenery is a mix of landforms; water and flora and has a beautiful and artistic value. Weather conditions, especially in relation to the amount of sunshine, temperature and precipitation (rain as well now), are of unique importance. Animal life might be a significant attraction, first in relation, to bird watching or viewing game in their natural habit and second, for sports purposes, e.g. hunting and fishing. Human’s influence on the natural landscape in the name of his settlements, archaeological remains and ancient monuments and is also a main attraction. Finally, a range of artistic elements folklore, artistic expressions, ways of life etc. offer valued attractions to large tourists.

B) Accessibility

Accessibility can be defined as means by which a person/tourist can travel or reach to particular place or destination. Tourist attractions can be of different types some may be accessible or some may be not by a mode of transportation . A tourist always looks up to a mode or means of transport in order to reach that particular place/attraction. Mode of transportation can be a coach, a car, an aeroplane, a ship or boat and a train that can enable or help a tourist to visit his desired destination. There are certain destinations which are not accessible by different modes of transport or inadequate transportation services, these destinations then turn into of a little value.  

Generally the tourist attractions that are situated close to a tourist generating area or market and are connected by a proper network of effective modes of transportation, experience a large number of tourist visits. Distance between the places of origin to the desired destination plays a crucial role in the movement of tourists and effect their choices in destination selection, proper connectivity between places or destination can act as motivation factor for tourists to visit a particular destination or place. Long distance destination increases the cost of travel for the tourists which somehow restricts the limits of different tourists travelling across places.

Time constraint and cost play a crucial role in the movement of tourists across the globe. An instance can be that of India. Almost two and half million tourist visitors for a country of the size of India may seem to be rather insignificant. Though, we see at certain things like the country’s distance from the affluent tourist markets of the world such as Europe, United States, Japan, Canada and Australia, one may determine that the long distance is one of the reasons liable for low tourist visits. It costs a tourist from these nations, quite a large amount, to travel to India for a vacation. It has been listed before that North America and Europe last to be major markets creating and getting areas for international tourist arrivals, accounting for as much as 70% and 20% respectively, of inbound tourist arrivals. Easy-going accessibility, thus is a main aspect for the development and growth of tourist arrivals.

C) Accommodation      

Lodging and other services balance the tourist attractions. Accommodation is very crucial and plays a central role and is very essential requirement of every tourist destination. As per the definition given by UNWTO, a person travelling to a new place from his place of origin must spend at least 24 hours at a particular destination so then only he/she would be considered a tourist. This tells about the importance of accommodation facilities at a different destination.

The demand for accommodation has always been there since ages. Therefore, the demand or the need for accommodation is met through variety of facilities. In the accommodation sector, the range and type of lodging is a bit wide-ranging and has experienced through different stages in the last couple of years. There is a decrease in the need for small hotels, boarding houses and other accommodation facilities. Large hotel chains have started to increase their share at famous tourist destinations and big metropolitans throughout the globe in more traditional holiday and sea- side resorts in Europe and elsewhere, large hotels are keeping their share of holiday resorts.

In the past few years, certain changes have arisen in the accommodation sector and the type of accommodation has totally transformed. The demand for non-traditional and informal types of lodging facilities have increased to a great extent. Holiday villages and concepts like home stays, condominiums and youth hostels are the current trends in the accommodation sector and popularity of these types of accommodations has increasing in the present times. Accommodation in itself has become an attraction in the modern times.

You can also read History of Travel and Tourism

In fact, a big group of travelers visit a specific town or destination simply since there is a first class luxury resort and hotel that offers outstanding facilities sand services for the entertainment of tourists. Few nations like Holland, France, Switzerland, Belgium and Austria have achieved a reputation for offering exceptional lodging with lavish food. Countless hotel companies away in different nations, specially the resort hotels have earned a status for their exceptional services, cuisines and other entertainment facilities. The French government for example, overlaid the way for tourist expansion of Corsica by introduction of a large hotel growth agenda. 

D) Amenities

Every tourist travelling to a new destination desires for world class facilities and services. In order to fulfill their demand huge efforts are made by the industry. High quality facilities are important aid to every tourist destination or center. For a coastal resort, services like swimming, boating, yachting, surf-riding and other amenities like recreation, dancing and other entertainment and amusement services are very essential for each and every tourist destination/center. Facilities can be of 2 kind’s natural, i.e. sea-bathing, beaches, possibilities of fishing, opportunities for trekking, climbing or viewing etc. and man-made, i.e. different kinds of entertainment facilities that can cater to the unique requirements of the various tourists. Outstanding beaches, sheltered from sunshine with palm and coconut trees and providing good bathing conditions makes a very goo the tourist center. Various other natural facilities like large water for the purpose of cruising or the chances for hunting and fishing are equally very significant.

Characteristics of Tourism Product 

Tourism products are mostly service goods that have different types or features. For instance, in business tourism management and planning are the services provided by different large convention centers and hotel chains. Various fair and festivals are the events that are provided for the entertainment and amusement only at a given time of the year and these are usually variable and perishable. In country like India numerous traditional/ancient attractions in the form of music and dance can be watched and experienced. There are different natural products which are been consumed by the tourist travelling to India like flora and fauna, wildlife. Following are some of the features and characteristics of tourism products:

a) Intangibility of Tourism Product

Unlike a physical product, say, a train or television, there is no handover of ownership of products is included in tourism. The goods or products in tourism cannot be consumed or demonstrated before purchasing it. Instead, some installations, amenities, items of equipment are available for a certain or fixed period pf time and for a particular use. For instance, a hotel room is offered or provided for a given time frame or a seat in a train is provided for a couple of hours of the journey.

b) Psychological 

A tourism product is offered to provide or offer certain level of satisfaction to the consumers or tourist. A person/tourist acquires experience with the consumption of different tourist products. Experiences derived while interacting to new places, people and environments helps in the encouragement of potential customers and helps in attracting them to consume the products offered to the market.

Read more about Hospitality

c) Highly Perishable

Usually a tour operator or a travel agent offer or sells various tourism products to the market, which are perishable in nature and cannot be stored or sustained for a longer time frame. Production of the products and services is only possible if there is a demand and the customers are actually present and if the customer buys the product it cannot be blocked, disturbed or customized. If the product is not consumed on time or is unused the chances are lost which means, if a tourist doesn’t buy the flight ticket on a given date, the chance at that time is lost or can say the validity of the seat is expired or is left unused. The reason can be heavy discounts or offers given by the airline company on the given date or during off season.

d) Composite nature of tourism Product

A tourism product is never offered or produced by a single enterprise there is an involvement of different parties (viz travel agent , hotels, airline company, tour guide etc.) when compared to a manufactured product. There is a involvement of various parties in providing or manufacturing a complete tourist product. The product shields broad experience of a holiday to a specific destination. And numerous suppliers and providers that supply to create this experience. For example, a hotel provides a food and rooms, travel agent makes booking for sightseeing and stay at different places, airline and rail provides seats etc.

e) Unstable Demand of Tourism Product

There is a problem or one can say a challenge for tourism products as tourism products are influenced by the seasonality, economic , political factors. For instance, there is a demand for the hill station in the summer season as people like to travel to cold places mostly places likes Manali, Shimla, Nainital, Mussorie etc. whereas the demand for coastal areas like Goa rises in the winters. There are different times of a year when there is a demand for a particular destination than other destinations. This is the time when there is a huge tension on the hotel bookings, transport system, the employment etc.

f) Fixed supply in the short run

Tourism product similarly as the factory-made products cannot be transported to the final consumers, the consumers have to go to the products offered to them. Product development is done on the basis of analysis of the taste and preferences, behavior, dislikes and likes of the consumers, so that the expectations and realities of the consumers. Therefore, the supply of the tourism product is limited in the short run and may be maximized on a long term basis depending upon the increasing demand pattern of the tourist product.

g) Absence of ownership in Tourism Product

Tourism products have absence of ownership. For instance, when you buy a product say a bike or a car, the possession of the same is reassigned to you, but when one rents a cab, he/she only buys the right to be transferred from one place to another, you neither own the driver nor the cab. Similarly, in case of tourism products like airline tickets, train tickets or a hotel room can be used for given time frame but not owned. Tourism products can only be purchased for using but the ownership of the same stays with the provider of the service or the product so, an Opera show can be watched but the performer cannot be kept.

 h) Heterogeneous nature of Tourism Product

Tourism is not a uniform product. Similarly, tourism product is not same, since they tend to change or vary in terms of quality and standard with the passage of time, unlike a television set or any other factory-made product. A flight or a tour package cannot be the same at all times. The reason behind the changing nature of the tourism products is a service and services are customers/consumer oriented. So there is variability in tourism products as all humans are not the same and vary in terms of their behavior, taste and preferences. For example, all workers working in a hotel cannot give the same excellence of facility and the same worker might not perform equally in the morning and evening. Therefore, the services cannot be uniforms or homogeneous.

Tourism products are first purchased and later on consumed that is why there is a high level of risk involved in purchasing before the consumption of the products. An element of chance of risk is always there in the process. For instance, a movie might not be as entertaining as it promises to be or a summer vacation in Goa may be disappointing due to bad weather or heavy rains.

j) Marketable

Tourism products are marketable at different markets. Firstly, both the regional and national organizations involve themselves in catering the potential customers/tourists to travel to different region/destinations across the country. Secondly, the individual firms are trying to market their own tourism products in order to cater potential customers.

Read more on Aviation Industry in India

Read more on Tourism Economics

Tourism Product Concept Tourism Product Concept Tourism Product Concept Tourism Product Concept

You Might Also Like

River System of India Part-I

Tourist Circuit

Driver of Travel and Tourism in 21st Century

This post has one comment.

Pingback: Which of the following is a characteristic of the tourism product? – AnswerParadise.net

Comments are closed.

Related Expertise: Transportation and Logistics , Customer Demand

What Travel and Tourism Consumers Really Want—and Why

September 25, 2019  By  Jean Lee ,  Lara Koslow ,  Greg McRoskey ,  Pranay Jhunjhunwala , and  Jason Guggenheim

There has never been a better time to be a travel consumer, as new brands and innovative offerings continue to emerge all the time. But there has also never been a tougher time to be a travel executive—especially at incumbent companies. Those new offerings? They come from wave after wave of disruptive new entrants. In today’s environment, the traditional approach to understanding consumers—which focuses primarily on demographics and basic behaviors—no longer delivers the level of insight that companies need. Instead, companies need to understand what the underlying factors that influence a purchase decision are and how that decision can change, depending on a consumer’s context at the time of purchase and on the range of options available. Ultimately, companies will be in a better position to grow if they think less about what they’re trying to sell and more about what customers want to buy.

Over the past several years, companies in a number of other industries—most notably Identifying the Sources of Demand to Fuel Growth —have applied this approach, which we call demand-centric growth (DCG) . Increasingly, travel and tourism companies are using DCG to crack the code of a more dynamic market characterized by greatly expanded consumer choice. The concept has broad implications for new products and brands, loyalty programs, M&A, and other key areas of company strategy. For incumbent travel and tourism companies, it offers a clear way to address a tough market that is changing faster than they can.

Traditional Solutions No Longer Work

By most metrics, the travel industry is thriving overall and continues to grow, but the news is not all good. Supply has exploded, due to growth among incumbent companies and recent entrants that offer a wider set of options—some entirely new to the industry. In the cruise industry, supply will outpace demand within the next several years. In the lodging industry, Air­bnb and other shared-economy entrants have changed the rules of the game by putting private apartments and homes on the market, thereby reducing the demand for hotel rooms.

Established companies in all travel and tourism segments—airlines, cruise lines, and hotels—are struggling to tap into new growth or wrest market share away from competitors. They have tried various strategies, with little success so far. Here are some common examples:

• Choosing Quantity over Quality. Some companies have put near-term growth ahead of all other objectives, to the point where they can’t deliver a consistent experience.
• Overrelying on Unsustainable Advantages. Other companies have attempted to aggressively control supply—as when some airlines hold gate slots at airports in order to limit competition—giving themselves a high share of booking customers not because the customers prefer them but because the customers have no choice. It’s only a matter of time before regulations evolve and supply again increases to meet growing demand.
• Stretching the Brand Too Far. Still other companies try to be all things to all consumers—and end up being nothing to anyone because they lack a clear and differentiated position in the market. Think of a resort that offers guests a party scene but also touts family-friendly vacations. It’s hard to satisfy the full range of consumer preferences, especially conflicting ones. Companies that have tried to do so end up not being able to maintain any clear emotional connections to consumers.
• Joining the Race to the Bottom. It’s tempting to gain share by offering price discounts, but that game is expensive and difficult, and it is rarely sustainable. Price wars usually result in lose-lose outcomes—confusing customers and dissolving any nascent brand loyalty when brands inevitably try to recover by raising prices.

The common flaw in these strategies is that they lack a deep understanding of what consumers want, how their needs may vary from one occasion to another, and where they may look to meet their needs. (See Exhibit 1.) Often, customers have more options than companies think. For example, the Delta Shuttle connecting New York, Boston, Washington, and Chicago competes not just with other airlines but also with Amtrak. Airlines in Asia and Europe compete with high-speed rail lines. Cruise lines compete with each other and also with land-based vacations. A hotel company can no longer afford to focus exclu­sively on other hotels as its competition; it must also consider owner-rented homes as potential rivals. Evidently, the traditional frames of reference in travel and tourism are broken.

Clear Advantages from a New Approach: DCG

To understand how consumers make choices on the basis of their real-world frame of reference, companies need to look at customer behavior in a fundamentally new way. Specifically, they need to understand how demand can fuel growth, either by taking market share from competitors or by unlocking new sources of revenue. DCG establishes this broader considera­tion set by examining choices through the lens of demand versus supply. It takes into account the set of underlying consumer needs that companies may or may not be meeting despite the choices consumers make in response to available supply. In a supply-constrained world, for example, travelers flying from a hub city typically turn to the dominant airline—not because they want to, but because the airline’s more convenient flight schedules and connections effectively force them to. Finally, DCG appreciates that consumers’ needs and interests are not static, and it analyzes the unique circumstances that may drive travelers to make different decisions when planning different trips.

The DCG approach has several qualities that incumbent travel and tourism companies will find advantageous:

• Lasting. Unlike demographic-based marketing, DCG helps companies understand how and why individual consumers make their choices about travel, leading to a far more accurate and enduring picture of the market. At times, it can illuminate factors that even consumers themselves can’t articulate. The result is a much more sustainable approach to growth—one that is built on a simple yet comprehensive view of demand.
• Holistic . DCG looks at demand holistically, considering both existing and prospective customers, and both traditional and disruptive competitors. This encourages companies to devise a forward-looking growth strategy grounded not just in what is, but in what could or should be, shedding light on missed opportunities and potential white spaces in the market. In addition, by replacing a traditional brand-based market perspective with an outside-in approach, DCG provides an objective, customer-centric view of where a company stands relative to its competitors.
• Quantifiable. DCG helps companies quantify the opportunities that potential initiatives present, by assessing latent demand and competitive inten­sity. Only through this lens can com­panies understand their potential share of a consumer’s wallet and begin to shape a winning, customer-centric strategy. (See the sidebar “IHG’s New Hotel Brand Addresses an Unmet Need Among Budget-Conscious Travelers.”) By describing the opportunity in terms of actual numbers, DCG brings science to the art.

IHG’s New Hotel Brand Addresses an Unmet Need Among Budget-Conscious Travelers

IHG, the parent company of such hotel brands as InterContinental Hotels & Resorts, Kimpton Hotels & Restaurants, Crowne Plaza Hotels & Resorts, and Holiday Inn Express, was looking for new growth in a portfolio that was already strong. Management was concerned about being fully saturated in the company’s largest markets. It used demand-centric growth to identify a clear unmet need among hotel customers: a mass offering that provided reliable quality in the form of a great night’s sleep in a clean, well-designed room at a fair price. (Current alternatives in the market were either at a price point higher than consumers desired for this type of travel or very unreliable in terms of quality and consistency.)

IHG repositioned its existing brands and offerings to minimize overlap, and then invested in the new hotel brand, which it called avid hotels. Key features include: rooms designed for sound sleep, featuring a “best in class” mattress and sleep experience; high-quality, complimentary grab-and-go breakfast with 24/7 bean-to-cup coffee; and public spaces with fresh, modern designs. This brand is designed for travelers who want a hotel stay that finally meets their expectations for the type of hospitality they value most—the basics done exceptionally well—at a per-night rate expected to be about $10 to $15 less than IHG’s industry-leading Holiday Inn Express brand.

IHG launched the new avid hotels brand in September 2017, less than a year after the start of brand development—an accelerated pace in the hotel industry. Today, there are over 170 executed licenses with franchisees to build and open hotels across the US, Canada, and Mexico, and IHG recently announced plans to expand to Germany. Credit Suisse described avid hotels as the “most significant addition to IHG’s brand stable in over 25 years” and upgraded the stock to “outperform” as a result.

• Foundational.  Establishing a baseline understanding of demand gives com­panies a north star and a common language to use in aligning the entire organization. It is not just a consumer strategy but a company strategy. After assessing the demand landscape and analyzing sales volume and brand fit, management might decide to launch a new route or a new service offering, acquire a competitor that has a stronger position relative to that target, or shift investment to areas where a brand may be vulnerable to attack. (See Exhibit 2.) Every touch point in the customer journey should reinforce the brand’s positioning. And the company should align every one of its internal aspects and functions—from pricing to sales and marketing to capacity planning to organizational structure—to execute the strategy successfully.

• Transformational. Finally, DCG helps companies assemble portfolios of complementary brands. As a result, they can determine what the right M&A strategy is, whether to launch a new brand, or how to design their loyalty program. (See the sidebar “Alaska Airlines Integrates a Customer-Centric Merger.”) 

Alaska Airlines Integrates a Customer-Centric Merger

After Alaska Airlines’ parent company bought Virgin America in 2016, it faced some key questions about the post­merger organization. Should it keep Virgin’s brand (licensed from Sir Richard Branson’s Virgin Group) or operate under the 85-year-old Alaska Airlines brand? Should it strive to become a nationally relevant brand or stay focused on the West Coast, where Alaska and Virgin America were both well known? And how should it position the brand vis-à-vis the competition? The stakes were high: the $2.6 billion Virgin America acquisition was costly in relation to Alaska Air Group’s market cap of about $10 billion. As a company that has always centered around the customer, Alaska knew that it couldn’t make these decisions in the boardroom alone. Management needed to understand its customers.

The Alaska management team used demand-centric growth to identify several key insights. First, a deep customer analysis showed that Alaska had industry-­leading customer retention and loyalty once customers got to know the brand, whereas Virgin America was stronger in customer acquisition but somewhat less sustainable long-term. (Virgin America did appeal strongly to some customers, but they were a relatively narrow segment overall.) That led Alaska to announce that the Virgin America brand would be phased out over time; the distinctive red and white aircraft would eventually all display Alaska’s smiling Eskimo. In terms of the route network, Alaska had very strong brand affinity among West Coast travelers, and its customers cared deeply about route coverage in those markets. Armed with these insights, the company ran some economic simulations that pointed to a clear answer: focus on the West Coast.

Second, the company looked at the landscape of demand and implemented a new customer strategy centered on the concepts “feel good” and “refreshed”—a differentiating positioning that leverages the strength of both the Alaska Airlines and the Virgin America brands while balancing what existing customers already love with areas for potential innovation.

To activate this strategy, after conducting a robust conjoint analysis with target customers, the company rolled out a campaign with the slogan “Different Works” and reprioritized investments into experiential aspects that airline customers truly care about: feeling good and refreshed. Elements of the campaign included everything from new loyalty policies to bolder entertainment investments to music in airport ticketing and check-in areas. The company also empowered employees to ensure that customer interactions were positive, caring, and true to Alaska’s core.

In 2018 Alaska Airlines—the only legacy US carrier to have avoided bankruptcy throughout its 85-year history—ranked highest in the J.D. Power survey of customer satisfaction among traditional carriers for the 11th consecutive year.

It can also give companies critical guidance on the optimal way to enter a new market. The approach goes beyond assessing the performance of individual brands to show how a portfolio fits together. When brands within a portfolio lack differentiation from one another, parent companies risk confusing customers and cannibalizing sales. (See Exhibit 3.) At the same time, portfolio companies often miss out on clearly identifiable white-space opportunities. Brands compete internally for resources, too, and misaligned incentives often exacerbate disputes. A demand-centric growth approach sets up brands to compete together, rather than against each other.

The travel and tourism industry is ripe for customer-focused innovation—and so far, new entrants are getting there faster. As choices proliferate and consumer behavior becomes more complex, traditional demographic-based marketing will no longer suffice. Incumbent companies can continue to focus on price or supply, and suffer disruption from new entrants, or they can start taking steps to become more customer-centric, starting with developing a better understanding of what truly drives their customers’ decisions. Demand-centric growth provides a foundation for that understanding by clarifying what consumers want at the moment of purchase—and why.

Partner & Director, Customer Centricity

Managing Director & Senior Partner

Partner & Associate Director

Los Angeles

Managing Director & Senior Partner, Travel & Tourism Global Leader

ABOUT BOSTON CONSULTING GROUP

Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.

Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.

© Boston Consulting Group 2024. All rights reserved.

For information or permission to reprint, please contact BCG at [email protected] . To find the latest BCG content and register to receive e-alerts on this topic or others, please visit bcg.com . Follow Boston Consulting Group on Facebook and X (formerly Twitter) .

Subscribe to receive the latest insights on Consumer Products Industry.

UN Tourism | Bringing the world closer

UN standards for measuring tourism

Share this content.

• Share this article on facebook
• Share this article on twitter
• Share this article on linkedin

Glossary of tourism terms

Tourism is a social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes. These people are called visitors (which may be either tourists or excursionists; residents or non-residents) and tourism has to do with their activities, some of which involve tourism expenditure.

A B C D E F G H I J K L M N O P Q R S T U V W Y Z

Activity/activities : In tourism statistics, the term activities represent the actions and behaviors of people in preparation for and during a trip in their capacity as consumers ( IRTS 2008, 1.2 ).

Activity (principal): The principal activity of a producer unit is the activity whose value added exceeds that of any other activity carried out within the same unit ( SNA 2008, 5.8 ).

Activity (productive): The (productive) activity carried out by a statistical unit is the type of production in which it engages. It has to be understood as a process, i.e. the combination of actions that result in a certain set of products. The classification of productive activities is determined by their principal output.

Administrative data : Administrative data is the set of units and data derived from an administrative source. This is a data holding information collected and maintained for the purpose of implementing one or more administrative regulations.

Adventure tourism : Adventure tourism is a type of tourism which usually takes place in destinations with specific geographic features and landscape and tends to be associated with a physical activity, cultural exchange, interaction and engagement with nature. This experience may involve some kind of real or perceived risk and may require significant physical and/or mental effort. Adventure tourism generally includes outdoor activities such as mountaineering, trekking, bungee jumping, rock climbing, rafting, canoeing, kayaking, canyoning, mountain biking, bush walking, scuba diving. Likewise, some indoor adventure tourism activities may also be practiced.

Aggregated data : The result of transforming unit level data into quantitative measures for a set of characteristics of a population.

Aggregation : A process that transforms microdata into aggregate-level information by using an aggregation function such as count, sum average, standard deviation, etc.

Analytical unit : Entity created by statisticians, by splitting or combining observation units with the help of estimations and imputations.

Balance of payments : The balance of payments is a statistical statement that summarizes transactions between residents and non-residents during a period. It consists of the goods and services account, the primary income account, the secondary income account, the capital account, and the financial account ( BPM6, 2.12 ).

Bias : An effect which deprives a statistical result of representativeness by systematically distorting it, as distinct from a random error which may distort on any one occasion but balances out on the average.

Business and professional purpose (of a tourism trip): The business and professional purpose of a tourism trip includes the activities of the self-employed and employees, as long as they do not correspond to an implicit or explicit employer-employee relationship with a resident producer in the country or place visited, those of investors, businessmen, etc. ( IRTS 2008, 3.17.2 ).

Business tourism : Business tourism is a type of tourism activity in which visitors travel for a specific professional and/or business purpose to a place outside their workplace and residence with the aim of attending a meeting, an activity or an event. The key components of business tourism are meetings, incentives, conventions and exhibitions. The term "meetings industry" within the context of business tourism recognizes the industrial nature of such activities. Business tourism can be combined with any other tourism type during the same trip.

Business visitor : A business visitor is a visitor whose main purpose for a tourism trip corresponds to the business and professional category of purpose ( IRTS 2008, 3.17.2 ).

Central Product Classification : The Central Product Classification (CPC) constitutes a complete product classification covering goods and services. It is intended to serve as an international standard for assembling and tabulating all kinds of data requiring product detail, including industrial production, national accounts, service industries, domestic and foreign commodity trade, international trade in services, balance of payments, consumption and price statistics. Other basic aims are to provide a framework for international comparison and promote harmonization of various types of statistics dealing with goods and services.

Census : A census is the complete enumeration of a population or groups at a point in time with respect to well defined characteristics: for example, Population, Production, Traffic on particular roads.

Coastal, maritime and inland water tourism : Coastal tourism refers to land-based tourism activities such as swimming, surfing, sunbathing and other coastal leisure, recreation and sports activities which take place on the shore of a sea, lake or river. Proximity to the coast is also a condition for services and facilities that support coastal tourism. Maritime tourism refers to sea-based activities such as cruising, yachting, boating and nautical sports and includes their respective land-based services and infrastructure. Inland water tourism refers to tourism activities such as cruising, yachting, boating and nautical sports which take place in aquatic- influenced environments located within land boundaries and include lakes, rivers, ponds, streams, groundwater, springs, cave waters and others traditionally grouped as inland wetlands.

Coherence : Adequacy of statistics to be combined in different ways and for various uses.

Competitiveness of a tourism destination : The competitiveness of a tourism destination is the ability of the destination to use its natural, cultural, human, man-made and capital resources efficiently to develop and deliver quality, innovative, ethical and attractive tourism products and services in order to achieve a sustainable growth within its overall vision and strategic goals, increase the added value of the tourism sector, improve and diversify its market components and optimize its attractiveness and benefits both for visitors and the local community in a sustainable perspective.

Consistency : Logical and numerical coherence.

Country of reference : The country of reference refers to the country for which the measurement is done. ( IRTS 2008, 2.15 ).

Country of residence : The country of residence of a household is determined according to the centre of predominant economic interest of its members. If a person resides (or intends to reside) for more than one year in a given country and has there his/her centre of economic interest (for example, where the predominant amount of time is spent), he/she is considered as a resident of this country.

Country-specific tourism characteristic products and activities : To be determined by each country by applying the criteria of IRTS 2008, 5.10 in their own context; for these products, the activities producing them will be considered as tourism characteristic, and the industries in which the principal activity is tourism-characteristic will be called tourism industries ( IRTS 2008, 5.16 ).

Cultural tourism : Cultural tourism is a type of tourism activity in which the visitor's essential motivation is to learn, discover, experience and consume the tangible and intangible cultural attractions/products in a tourism destination. These attractions/products relate to a set of distinctive material, intellectual, spiritual and emotional features of a society that encompasses arts and architecture, historical and cultural heritage, culinary heritage, literature, music, creative industries and the living cultures with their lifestyles, value systems, beliefs and traditions.

Data checking : Activity whereby the correctness conditions of the data are verified. It also includes the specification of the type of error or of the condition not met, and the qualification of the data and their division into "error-free data" and "erroneous data".

Data collection : Systematic process of gathering data for official statistics.

Data compilation : Operations performed on data to derive new information according to a given set of rules.

Data confrontation : The process of comparing data that has generally been derived from different surveys or other sources, especially those of different frequencies, in order to assess and possibly improve their coherency, and identify the reasons for any differences.

Data processing : Data processing is the operation performed on data by the organization, institute, agency, etc., responsible for undertaking the collection, tabulation, manipulation and preparation of data and metadata output.

Data reconciliation : The process of adjusting data derived from two different sources to remove, or at least reduce, the impact of differences identified.

Destination (main destination of a trip): The main destination of a tourism trip is defined as the place visited that is central to the decision to take the trip. See also purpose of a tourism trip ( IRTS 2008, 2.31 ).

Destination management / marketing organization (DMO) : A destination management/marketing organization (DMO) is the leading organizational entity which may encompass the various authorities, stakeholders and professionals and facilitates tourism sector partnerships towards a collective destination vision. The governance structures of DMOs vary from a single public authority to a public/ private partnership model with the key role of initiating, coordinating and managing certain activities such as implementation of tourism policies, strategic planning, product development, promotion and marketing and convention bureau activities. The functions of the DMOs may vary from national to regional and local levels depending on the current and potential needs as well as on the decentralization level of public administration. Not every tourism destination has a DMO.

Documentation: Processes and procedures for imputation,  weighting,  confidentiality  and suppression rules, outlier treatment and data capture should be fully documented by the  survey provider.  Such documentation should be made available to at least  the body financing the survey.

Domestic tourism : Domestic tourism comprises the activities of a resident visitor within the country of reference, either as part of a domestic tourism trip or part of an outbound tourism trip ( IRTS 2008, 2.39 ).

Domestic tourism consumption : Domestic tourism consumption is the tourism consumption of a resident visitor within the economy of reference ( TSA:RMF 2008, figure 2.1 ).

Domestic tourism expenditure : Domestic tourism expenditure is the tourism expenditure of a resident visitor within the economy of reference, (IRTS 2008, 4.15(a)).

Domestic tourism trip : A domestic tourism trip is one with a main destination within the country of residence of the visitor (IRTS 2008, 2.32).

Domestic visitor : As a visitor travels within his/her country of residence, he/she is a domestic visitor and his/her activities are part of domestic tourism.

Durable consumer goods : Durable consumer goods are goods that may be used repeatedly or continuously over a period of a year or more, assuming a normal or average rate of physical usage. When acquired by producers, these are considered to be capital goods used for production processes, as is the case of vehicles, computers, etc. When acquired by households, they are considered to be consumer durable goods ( TSA:RMF 2008, 2.39 ). This definition is identical to the definition of SNA 2008, 9.42 : A consumer durable is a goodthat may be used for purposes of consumption repeatedly or continuously over a period of a year or more.

Dwellings : Each household has a principal dwelling (sometimes also designated as main or primary home), usually defined with reference to time spent there, whose location defines the country of residence and place of usual residence of this household and of all its members. All other dwellings (owned or leased by the household) are considered secondary dwellings ( IRTS 2008, 2.26 ).

Ecotourism : Ecotourism is a type of nature-based tourism activity in which the visitor's essential motivation is to observe, learn, discover, experience and appreciate biological and cultural diversity with a responsible attitude to protect the integrity of the ecosystem and enhance the well-being of the local community. Ecotourism increases awareness towards the conservation of biodiversity, natural environment and cultural assets both among locals and the visitors and requires special management processes to minimize the negative impact on the ecosystem.

Economic analysis : Tourism generates directly and indirectly an increase in economic activity in the places visited (and beyond), mainly due to demand for goods and services thatneed to be produced and provided. In the economic analysis of tourism, one may distinguish between tourism's 'economic contribution' which refers to the direct effect of tourism and is measurable by means of the TSA, and tourism's 'economic impact' which is a much broader concept encapsulating the direct, indirect and induced effects of tourism and which must be estimated by applying models. Economic impact studies aim to quantify economic benefits, that is, the net increase in the wealth of residents resulting from tourism, measured in monetary terms, over and above the levels that would prevail in its absence.

Economic territory : The term "economic territory" is a geographical reference and points to the country for which the measurement is done (country of reference) ( IRTS 2008, 2.15 ).

Economically active population : The economically active population or labour force comprises all persons of either sex who furnish the supply of labour for the production of goods and services as defined by the system of national accounts during a specified time-reference period (ILO, Thirteenth ICLS, 6.18).

Economy (of reference): "Economy" (or "economy of reference") is an economic reference defined in the same way as in the balance of payments and in the system of national accounts: it refers to the economic agents that are resident in the country of reference ( IRTS 2008, 2.15 ).

Education tourism : Education tourism covers those types of tourism which have as a primary motivation the tourist's engagement and experience in learning, self-improvement, intellectual growth and skills development. Education Tourism represents a broad range of products and services related to academic studies, skill enhancement holidays, school trips, sports training, career development courses and language courses, among others.

Employees : Employees are all those workers who hold the type of job defined as "paid employment" (ILO, Fifteenth ICLS, pp. 20-22).

Employer-employee relationship : An employer-employee relationship exists when there is an agreement, which may be formal or informal, between an entity and an individual, normally entered into voluntarily by both parties, whereby the individual works for the entity in return for remuneration in cash or in kind ( BPM6, 11.11 ).

Employers : Employers are those workers who, working on their own account with one or more partners, hold the type of job defined as a "self-employment job" and, in this capacity, on a continuous basis (including the reference period) have engaged one or more persons to work for them in their business as "employee(s)" (ILO, Fifteenth ICLS, pp. 20-22).

Employment : Persons in employment are all persons above a specified age who, during a specified brief period, either one week or one day, were in paid employment or self-employment (OECD GST, p. 170).

Employment in tourism industries : Employment in tourism industries may be measured as a count of the persons employed in tourism industries in any of their jobs, as a count of the persons employed in tourism industries in their main job, or as a count of the jobs in tourism industries ( IRTS 2008, 7.9 ).

Enterprise : An enterprise is an institutional unit engaged in production of goods and/or services. It may be a corporation, a non-profit institution, or an unincorporated enterprise. Corporate enterprises and non-profit institutions are complete institutional units. An unincorporated enterprise, however, refers to an institutional unit —a household or government unit —only in its capacity as a producer of goods and services (OECD BD4, p. 232)

Establishment : An establishment is an enterprise, or part of an enterprise, that is situated in a single location and in which only a single productive activity is carried out or in which the principal productive activity accounts for most of the value added ( SNA 2008, 5.14 ).

Estimation : Estimation is concerned with inference about the numerical value of unknown population values from incomplete data such as a sample. If a single figure is calculated for each unknown parameter the process is called "point estimation". If an interval is calculated within which the parameter is likely, in some sense, to lie, the process is called "interval estimation".

Exports of goods and services : Exports of goods and services consist of sales, barter, or gifts or grants, of goods and services from residents to non-residents (OECD GST, p. 194)

Frame : A list, map or other specification of the units which define a population to be completely enumerated or sampled.

Forms of tourism : There are three basic forms of tourism: domestic tourism, inbound tourism, and outbound tourism. These can be combined in various ways to derive the following additional forms of tourism: internal tourism, national tourism and international tourism.

Gastronomy tourism :  Gastronomy tourism is a type of tourism activity which is characterized by the visitor's experience linked with food and related products and activities while travelling. Along with authentic, traditional, and/or innovative culinary experiences, Gastronomy Tourism may also involve other related activities such as visiting the local producers, participating in food festivals and attending cooking classes. Eno-tourism (wine tourism), as a sub-type of gastronomy tourism, refers to tourism whose purpose is visiting vineyards, wineries, tasting, consuming and/or purchasing wine, often at or near the source.

Goods : Goods are physical, produced objects for which a demand exists, over which ownership rights can be established and whose ownership can be transferred from one institutional unit to another by engaging in transactions on markets ( SNA 2008, p. 623 ).

Gross fixed capital formation : Gross fixed capital formation is defined as the value of institutional units' acquisitions less disposals of fixed assets. Fixed assets are produced assets (such as machinery, equipment, buildings or other structures) that are used repeatedly or continuously in production over several accounting periods (more than one year) ( SNA 2008, 1.52 ).

Gross margin : The gross margin of a provider of reservation services is the difference between the value at which the intermediated service is sold and the value accrued to the provider of reservation services for this intermediated service.

Gross value added : Gross value added is the value of output less the value of intermediate consumption ( TSA:RMF 2008, 3.32 ).

Gross value added of tourism industries : Gross value added of tourism industries (GVATI) is the total gross value added of all establishments belonging to tourism industries, regardless of whether all their output is provided to visitors and the degree of specialization of their production process ( TSA:RMF 2008, 4.86 ).

Grossing up : Activity aimed at transforming, based on statistical methodology, micro-data from samples into aggregate-level information representative of the target population.

Health tourism : Health tourism covers those types of tourism which have as a primary motivation, the contribution to physical, mental and/or spiritual health through medical and wellness-based activities which increase the capacity of individuals to satisfy their own needs and function better as individuals in their environment and society. Health tourism is the umbrella term for the subtypes wellness tourism and medical tourism.

Imputation : Procedure for entering a value for a specific data item where the response is missing or unusable.

Inbound tourism : Inbound tourism comprises the activities of a non-resident visitor within the country of reference on an inbound tourism trip ( IRTS 2008, 2.39 ).

Inbound tourism consumption : Inbound tourism consumption is the tourism consumption of a non-resident visitor within the economy of reference ( TSA:RMF 2008, figure 2.1 ).

Inbound tourism expenditure : Inbound tourism expenditure is the tourism expenditure of a non-resident visitor within the economy of reference ( IRTS 2008, 4.15(b) ).

Innovation in tourism : Innovation in tourism is the introduction of a new or improved component which intends to bring tangible and intangible benefits to tourism stakeholders and the local community, improve the value of the tourism experience and the core competencies of the tourism sector and hence enhance tourism competitiveness and /or sustainability. Innovation in tourism may cover potential areas, such as tourism destinations, tourism products, technology, processes, organizations and business models, skills, architecture, services, tools and/or practices for management, marketing, communication, operation, quality assurance and pricing.

Institutional sector : An aggregation of institutional units on the basis of the type of producer and depending on their principal activity and function, which are considered to be indicative of their economic behaviour.

Institutional unit : The elementary economic decision-making centre characterised by uniformity of behaviour and decision-making autonomy in the exercise of its principal function.

Intermediate consumption : Intermediate consumption consists of the value of the goods and services consumed as inputs by a process of production, excluding fixed assets whose consumption is recorded as consumption of fixed capital ( SNA 2008, 6.213 ).

Internal tourism : Internal tourism comprises domestic tourism and inbound tourism, that is to say, the activities of resident and non-resident visitors within the country of reference as part of domestic or international tourism trips ( IRTS 2008, 2.40(a) ).

Internal tourism consumption : Internal tourism consumption is the tourism consumption of both resident and non-resident visitors within the economy of reference. It is the sum of domestic tourism consumption and inbound tourism consumption ( TSA:RMF 2008, figure 2.1 ).

Internal tourism expenditure : Internal tourism expenditure comprises all tourism expenditure of visitors, both resident and non-resident, within the economy of reference. It is the sum of domestic tourism expenditure and inbound tourism expenditure. It includes acquisition of goods and services imported into the country of reference and sold to visitors. This indicator provides the most comprehensive measurement of tourism expenditure in the economy of reference ( IRTS 2008, 4.20(a) ).

International Standard Industrial Classification of All Economic Activities : The International Standard Industrial Classification of All Economic Activities (ISIC) consists of a coherent and consistent classification structure of economic activities based on a set of internationally agreed concepts, definitions, principles and classification rules. It provides a comprehensive framework within which economic data can be collected and reported in a format that is designed for purposes of economic analysis, decision-taking and policymaking. The classification structure represents a standard format to organize detailed information about the state of an economy according to economic principles and perceptions (ISIC, Rev.4, 1).

International tourism : International tourism comprises inbound tourism and outbound tourism, that is to say, the activities of resident visitors outside the country of reference, either as part of domestic or outbound tourism trips and the activities of non-resident visitors within the country of reference on inbound tourism trips ( IRTS 2008, 2.40(c) ).

International visitor : An international traveller qualifies as an international visitor with respect to the country of reference if: (a) he/she is on a tourism trip and (b) he/she is a non-resident travelling in the country of reference or a resident travelling outside of it ( IRTS 2008, 2.42 ).

Job : The agreement between an employee and the employer defines a job and each self-employed person has a job ( SNA 2008, 19.30 ).

Measurement error : Error in reading, calculating or recording numerical value.

Medical tourism : Medical tourism is a type of tourism activity which involves the use of evidence-based medical healing resources and services (both invasive and non-invasive). This may include diagnosis, treatment, cure, prevention and rehabilitation.

Meetings industry : To highlight purposes relevant to the meetings industry, if a trip's main purpose is business/professional, it can be further subdivided into "attending meetings, conferences or congresses, trade fairs and exhibitions" and "other business and professional purposes". The term meetings industry is preferred by the International Congress and Convention Association (ICCA), Meeting Professionals International (MPI) and Reed Travel over the acronym MICE (Meetings, Incentives, Conferences and Exhibitions) which does not recognize the industrial nature of such activities.

Metadata : Data that defines and describes other data and processes.

MICE : See meetings industry.

Microdata : Non-aggregated observations, or measurements of characteristics of individual units.

Mirror statistics : Mirror statistics are used to conduct bilateral comparisons of two basic measures of a trade flow and are a traditional tool for detecting the causes of asymmetries in statistics (OECD GST, p. 335).

Mountain tourism : Mountain tourism is a type of tourism activity which takes place in a defined and limited geographical space such as hills or mountains with distinctive characteristics and attributes that are inherent to a specific landscape, topography, climate, biodiversity (flora and fauna) and local community. It encompasses a broad range of outdoor leisure and sports activities.

National tourism : National tourism comprises domestic tourism and outbound tourism, that is to say, the activities of resident visitors within and outside the country of reference, either as part of domestic or outbound tourism trips ( IRTS 2008, 2.40(b) ).

National tourism consumption : National tourism consumption is the tourism consumption of resident visitors, within and outside the economy of reference. It is the sum of domestic tourism consumption and outbound tourism consumption ( TSA:RMF 2008, figure 2.1 ).

National tourism expenditure : National tourism expenditure comprises all tourism expenditure of resident visitors within and outside the economy of reference. It is the sum of domestic tourism expenditure and outbound tourism expenditure ( IRTS 2008, 4.20(b) ).

Nationality : The concept of "country of residence" of a traveller is different from that of his/her nationality or citizenship ( IRTS 2008, 2.19 ).

Non-monetary indicators : Data measured in physical or other non-monetary units should not be considered a secondary part of a satellite account. They are essential components, both for the information they provide directly and in order to analyse the monetary data adequately ( SNA 2008, 29.84 ).

Observation unit : entity on which information is received and statistics are compiled.

Outbound tourism : Outbound tourism comprises the activities of a resident visitor outside the country of reference, either as part of an outbound tourism trip or as part of a domestic tourism trip ( IRTS 2008, 2.39(c) ).

Outbound tourism consumption : Outbound tourism consumption is the tourism consumption of a resident visitor outside the economy of reference ( TSA:RMF 2008, figure 2.1 ).

Outbound tourism expenditure : Outbound tourism expenditure is the tourism expenditure of a resident visitor outside the economy of reference ( IRTS 2008, 4.15(c) ).

Output : Output is defined as the goods and services produced by an establishment, a) excluding the value of any goods and services used in an activity for which the establishment does not assume the risk of using the products in production, and b) excluding the value of goods and services consumed by the same establishment except for goods and services used for capital formation (fixed capital or changes in inventories) or own final consumption ( SNA 2008, 6.89 ).

Output (main): The main output of a (productive) activity should be determined by reference to the value added of the goods sold or services rendered (ISIC rev.4, 114).

Pilot survey : The aim of a pilot survey is to test the questionnaire (pertinence of the questions, understanding of questions by those being interviewed, duration of the interview) and to check various potential sources for sampling and non-sampling errors: for instance, the place in which the surveys are carried out and the method used, the identification of any omitted answers and the reason for the omission, problems of communicating in various languages, translation, the mechanics of data collection, the organization of field work, etc.

Place of usual residence : The place of usual residence is the geographical place where the enumerated person usually resides, and is defined by the location of his/her principal dwelling (Principles and recommendations for population and housing censuses of the United Nations, 2.20 to 2.24).

Probability sample : A sample selected by a method based on the theory of probability (random process), that is, by a method involving knowledge of the likelihood of any unit being selected.

Production account : The production account records the activity of producing goods and services as defined within the SNA. Its balancing item, gross value added, is defined as the value of output less the value of intermediate consumption and is a measure of the contribution to GDP made by an individual producer, industry or sector. Gross value added is the source from which the primary incomes of the SNA are generated and is therefore carried forward into the primary distribution of income account. Value added and GDP may also be measured net by deducting consumption of fixed capital, a figure representing the decline in value during the period of the fixed capital used in a production process ( SNA 2008, 1.17 ).

Production : Economic production may be defined as an activity carried out under the control and responsibility of an institutional unit that uses inputs of labour, capital, and goods and services to produce outputs of goods or services ( SNA 2008, 6.24. ).

Purpose of a tourism trip (main): The main purpose of a tourism trip is defined as the purpose in the absence of which the trip would not have taken place ( IRTS 2008, 3.10. ). Classification of tourism trips according to the main purpose refers to nine categories: this typology allows the identification of different subsets of visitors (business visitors, transit visitors, etc.) See also destination of a tourism trip ( IRTS 2008, 3.14 ).

Quality of a tourism destination : Quality of a tourism destination is the result of a process which implies the satisfaction of all tourism product and service needs, requirements and expectations of the consumer at an acceptable price, in conformity with mutually accepted contractual conditions and the implicit underlying factors such as safety and security, hygiene, accessibility, communication, infrastructure and public amenities and services. It also involves aspects of ethics, transparency and respect towards the human, natural and cultural environment. Quality, as one of the key drivers of tourism competitiveness, is also a professional tool for organizational, operational and perception purposes for tourism suppliers.

Questionnaire and Questionnaire design : Questionnaire is a group or sequence of questions designed to elicit information on a subject, or sequence of subjects, from a reporting unit or from another producer of official statistics. Questionnaire design is the design (text, order, and conditions for skipping) of the questions used to obtain the data needed for the survey.

Reference period : The period of time or point in time to which the measured observation is intended to refer.

Relevance : The degree to which statistics meet current and potential users' needs.

Reliability : Closeness of the initial estimated value to the subsequent estimated value.

Reporting unit : Unit that supplies the data for a given survey instance, like a questionnaire or interview. Reporting units may, or may not, be the same as the observation unit.

Residents/non-residents : The residents of a country are individuals whose centre of predominant economic interest is located in its economic territory. For a country, the non-residents are individuals whose centre of predominant economic interest is located outside its economic territory.

Response and non-response : Response and non-response to various elements of a survey entail potential errors.

Response error : Response errors may be defined as those arising from the interviewing process. Such errors may be due to a number of circumstances, such as inadequate concepts or questions; inadequate training; interviewer failures; respondent failures.

Rural tourism : Rural tourism is a type of tourism activity in which the visitor's experience is related to a wide range of products generally linked to nature-based activities, agriculture, rural lifestyle / culture, angling and sightseeing. Rural tourism activities take place in non-urban (rural) areas with the following characteristics:

• Low population density;
• Landscape and land-use dominated by agriculture and forestry; and
• Traditional social structure and lifestyle

Same-day visitor (or excursionist): A visitor (domestic, inbound or outbound) is classified as a tourist (or overnight visitor), if his/her trip includes an overnight stay, or as a same-day visitor (or excursionist) otherwise ( IRTS 2008, 2.13 ).

Sample : A subset of a frame where elements are selected based on a process with a known probability of selection.

Sample survey : A survey which is carried out using a sampling method.

Sampling error : That part of the difference between a population value and an estimate thereof, derived from a random sample, which is due to the fact that only a subset of the population is enumerated.

Satellite accounts : There are two types of satellite accounts, serving two different functions. The first type, sometimes called an internal satellite, takes the full set of accounting rules and conventions of the SNA but focuses on a particular aspect of interest by moving away from the standard classifications and hierarchies. Examples are tourism, coffee production and environmental protection expenditure. The second type, called an external satellite, may add non-economic data or vary some of the accounting conventions or both. It is a particularly suitable way to explore new areas in a research context. An example may be the role of volunteer labour in the economy ( SNA 2008, 29.85 ).

SDMX, Statistical Data and Metadata Exchange : Set of technical standards and content-oriented guidelines, together with an IT architecture and tools, to be used for the efficient exchange and sharing of statistical data and metadata (SDMX).

Seasonal adjustment : Seasonal adjustment is a statistical technique to remove the effects of seasonal calendar influences on a series. Seasonal effects usually reflect the influence of the seasons themselves, either directly or through production series related to them, or social conventions. Other types of calendar variation occur as a result of influences such as number of days in the calendar period, the accounting or recording practices adopted or the incidence of moving holidays.

Self-employment job : Self-employment jobs are those jobs where remuneration is directly dependent upon the profits (or the potential of profits) derived from the goods or services produced.

Self-employed with paid employees : Self-employed with paid employees are classified as employers.

Self-employed without employees : Self-employed without employees are classified as own-account workers.

Services : Services are the result of a production activity that changes the conditions of the consuming units, or facilitates the exchange of products or financial assets. They cannot be traded separately from their production. By the time their production is completed, they must have been provided to the consumers ( SNA 2008, 6.17 ).

Social transfers in kind : A special case of transfers in kind is that of social transfers in kind. These consist of goods and services provided by general government and non-profit institutions serving households (NPISHs) that are delivered to individual households. Health and education services are the prime examples. Rather than provide a specified amount of money to be used to purchase medical and educational services, the services are often provided in kind to make sure that the need for the services is met. (Sometimes the recipient purchases the service and is reimbursed by the insurance or assistance scheme. Such a transaction is still treated as being in kind because the recipient is merely acting as the agent of the insurance scheme) (SNA 2008, 3.83).

Sports tourism : Sports tourism is a type of tourism activity which refers to the travel experience of the tourist who either observes as a spectator or actively participates in a sporting event generally involving commercial and non-commercial activities of a competitive nature.

Standard classification : Classifications that follow prescribed rules and are generally recommended and accepted.

Statistical error : The unknown difference between the retained value and the true value.

Statistical indicator : A data element that represents statistical data for a specified time, place, and other characteristics, and is corrected for at least one dimension (usually size) to allow for meaningful comparisons.

Statistical metadata : Data about statistical data.

Statistical unit : Entity about which information is sought and about which statistics are compiled. Statistical units may be identifiable legal or physical entities or statistical constructs.

Survey : An investigation about the characteristics of a given population by means of collecting data from a sample of that population and estimating their characteristics through the systematic use of statistical methodology.

System of National Accounts : The System of National Accounts (SNA) is the internationally agreed standard set of recommendations on how to compile measures of economic activity in accordance with strict accounting conventions based on economic principles. The recommendations are expressed in terms of a set of concepts, definitions, classifications and accounting rules that comprise the internationally agreed standard for measuring indicators of economic performance. The accounting framework of the SNA allows economic data to be compiled and presented in a format that is designed for purposes of economic analysis, decision-taking and policymaking ( SNA 2008, 1.1 ).

Total tourism internal demand : Total tourism internal demand, is the sum of internal tourism consumption, tourism gross fixed capital formation and tourism collective consumption ( TSA:RMF 2008, 4.114 ). It does not include outbound tourism consumption.

Tourism : Tourism refers to the activity of visitors ( IRTS 2008, 2.9 ).

Tourism characteristic activities : Tourism characteristic activities are the activities that typically produce tourism characteristic products. As the industrial origin of a product (the ISIC industry that produces it) is not a criterion for the aggregation of products within a similar CPC category, there is no strict one-to-one relationship between products and the industries producing them as their principal outputs ( IRTS 2008, 5.11 ).

Tourism characteristic products : Tourism characteristic products are those that satisfy one or both of the following criteria: a) Tourism expenditure on the product should represent a significant share total tourism expenditure (share-of-expenditure/demand condition); b) Tourism expenditure on the product should represent a significant share of the supply of the product in the economy (share-of-supply condition). This criterion implies that the supply of a tourism characteristic product would cease to exist in meaningful quantity in the absence of visitors ( IRTS 2008, 5.10 ).

Tourism connected products : Their significance within tourism analysis for the economy of reference is recognized although their link to tourism is very limited worldwide. Consequently, lists of such products will be country-specific ( IRTS 2008, 5.12 ).

Tourism consumption : Tourism consumption has the same formal definition as tourism expenditure. Nevertheless, the concept of tourism consumption used in the Tourism Satellite Account goes beyond that of tourism expenditure. Besides the amount paid for the acquisition of consumption goods and services, as well as valuables for own use or to give away, for and during tourism trips, which corresponds to monetary transactions (the focus of tourism expenditure), it also includes services associated with vacation accommodation on own account, tourism social transfers in kind and other imputed consumption. These transactions need to be estimated using sources different from information collected directly from the visitors, such as reports on home exchanges, estimations of rents associated with vacation homes, calculations of financial intermediation services indirectly measured (FISIM), etc. ( TSA:RMF 2008, 2.25 ).

Tourism destination : A tourism destination is a physical space with or without administrative and/or analytical boundaries in which a visitor can spend an overnight. It is the cluster (co-location) of products and services, and of activities and experiences along the tourism value chain and a basic unit of analysis of tourism. A destination incorporates various stakeholders and can network to form larger destinations. It is also intangible with its image and identity which may influence its market competitiveness.

Tourism direct gross domestic product : Tourism direct gross domestic product (TDGDP) is the sum of the part of gross value added (at basic prices) generated by all industries in response to internal tourism consumption plus the amount of net taxes on products and imports included within the value of this expenditure at purchasers' prices ( TSA:RMF 2008, 4.96 ).

Tourism direct gross value added : Tourism direct gross value added (TDGVA) is the part of gross value added generated by tourism industries and other industries of the economy that directly serve visitors in response to internal tourism consumption ( TSA:RMF 2008, 4.88 ).

Tourism expenditure : Tourism expenditure refers to the amount paid for the acquisition of consumption goods and services, as well as valuables, for own use or to give away, for and during tourism trips. It includes expenditures by visitors themselves, as well as expenses that are paid for or reimbursed by others ( IRTS 2008, 4.2 ).

Tourism industries : The tourism industries comprise all establishments for which the principal activity is a tourism characteristic activity. Tourism industries (also referred to as tourism activities) are the activities that typically producetourism characteristic products. The term tourism industries is equivalent to tourism characteristic activities and the two terms are sometimes used synonymously in the IRTS 2008, 5.10, 5.11 and figure 5.1 .

Tourism product : A tourism product is a combination of tangible and intangible elements, such as natural, cultural and man-made resources, attractions, facilities, services and activities around a specific center of interest which represents the core of the destination marketing mix and creates an overall visitor experience including emotional aspects for the potential customers. A tourism product is priced and sold through distribution channels and it has a life-cycle.

Tourism ratio : For each variable of supply in the Tourism Satellite Account, the tourism ratiois the ratio between the total value of tourism share and total value of the corresponding variable in the Tourism Satellite Account expressed in percentage form ( TSA:RMF 2008, 4.56 ). (See also Tourism share).

Tourism Satellite Account : The Tourism Satellite Account is the second international standard on tourism statistics (Tourism Satellite Account: Recommended Methodological Framework 2008 –TSA:RMF 2008) that has been developed in order to present economic data relative to tourism within a framework of internal and external consistency with the rest of the statistical system through its link to the System of National Accounts. It is the basic reconciliation framework of tourism statistics. As a statistical tool for the economic accounting of tourism, the TSA can be seen as a set of 10 summary tables, each with their underlying data and representing a different aspect of the economic data relative to tourism: inbound, domestic tourism and outbound tourism expenditure, internal tourism expenditure, production accounts of tourism industries, the Gross Value Added (GVA) and Gross Domestic Product (GDP) attributable to tourism demand, employment, investment, government consumption, and non-monetary indicators.

Tourism Satellite Account aggregates : The compilation of the following aggregates, which represent a set of relevant indicators of the size of tourism in an economy is recommended ( TSA:RMF 2008, 4.81 ):

• Internal tourism expenditure;
• Internal tourism consumption;
• Gross value added of tourism industries (GVATI);
• Tourism direct gross value added (TDGVA);
• Tourism direct gross domestic product (TDGDP).

Tourism sector : The tourism sector, as contemplated in the TSA, is the cluster of production units in different industries that provide consumption goods and services demanded by visitors. Such industries are called tourism industries because visitor acquisition represents such a significant share of their supply that, in the absence of visitors, their production of these would cease to exist in meaningful quantity.

Tourism share : Tourism share is the share of the corresponding fraction of internal tourism consumption in each component of supply ( TSA:RMF 2008, 4.51 ). For each industry, the tourism share of output (in value), is the sum of the tourism share corresponding to each product component of its output ( TSA:RMF 2008, 4.55 ). (See also Tourism ratio ).

Tourism single-purpose consumer durable goods : Tourism single-purpose consumer durables is a specific category of consumer durable goods that include durable goods that are used exclusively, or almost exclusively, by individuals while on tourism trips ( TSA:RMF 2008 , 2.41 and Annex 5 ).

Tourism trip : Trips taken by visitors are tourism trips ( IRTS 2008, 2.29 ).

Tourist (or overnight visitor): A visitor (domestic, inbound or outbound) is classified as a tourist (or overnight visitor), if his/her trip includes an overnight stay, or as a same-day visitor (or excursionist) otherwise ( IRTS 2008, 2.13 ).

Tourism value chain : The tourism value chain is the sequence of primary and support activities which are strategically fundamental for the performance of the tourism sector. Linked processes such as policy making and integrated planning, product development and packaging, promotion and marketing, distribution and sales and destination operations and services are the key primary activities of the tourism value chain. Support activities involve transport and infrastructure, human resource development, technology and systems development and other complementary goods and services which may not be related to core tourism businesses but have a high impact on the value of tourism.

Travel / traveller : Travel refers to the activity of travellers. A traveller is someone who moves between different geographic locations, for any purpose and any duration ( IRTS 2008, 2.4 ). The visitor is a particular type of traveller and consequently tourism is a subset of travel.

Travel group : A travel group is made up of individuals or travel parties travelling together: examples are people travelling on the same package tour or youngsters attending a summer camp ( IRTS 2008, 3.5 ).

Travel item (in balance of payments): Travel is an item of the goods and services account of the balance of payments: travel credits cover goods and services for own use or to give away acquired from an economy by non-residents during visits to that economy. Travel debits cover goods and services for own use or to give away acquired from other economies by residents during visits to other economies ( BPM6, 10.86 ).

Travel party : A travel party is defined as visitors travelling together on a trip and whose expenditures are pooled ( IRTS 2008, 3.2 ).

Trip : A trip refers to the travel by a person from the time of departure from his/her usual residence until he/she returns: it thus refers to a round trip. Trips taken by visitors are tourism trips.

Urban/city tourism : Urban/city tourism is a type of tourism activity which takes place in an urban space with its inherent attributes characterized by non-agricultural based economy such as administration, manufacturing, trade and services and by being nodal points of transport. Urban/city destinations offer a broad and heterogeneous range of cultural, architectural, technological, social and natural experiences and products for leisure and business.

Usual environment: The usual environment of an individual, a key concept in tourism, is defined as the geographical area (though not necessarily a contiguous one) within which an individual conducts his/her regular life routines ( IRTS 2008, 2.21 ).

Usual residence : The place of usual residence is the geographical place where the enumerated person usually resides (Principles and recommendations for population and housing censuses of the United Nations, 2.16 to 2.18).

Vacation home : A vacation home (sometimes also designated as a holiday home) is a secondary dwelling that is visited by the members of the household mostly for purposes of recreation, vacation or any other form of leisure ( IRTS 2008, 2.27 ).

Valuables : Valuables are produced goods of considerable value that are not used primarily for purposes of production or consumption but are held as stores of value over time ( SNA 2008, 10.13 ).

Visit : A trip is made up of visits to different places.The term "tourism visit" refers to a stay in a place visited during a tourism trip ( IRTS 2008, 2.7 and 2.33 ).

Visitor : A visitor is a traveller taking a trip to a main destination outside his/her usual environment, for less than a year, for any main purpose (business, leisure or other personal purpose) other than to be employed by a resident entity in the country or place visited ( IRTS 2008, 2.9 ). A visitor (domestic, inbound or outbound) is classified as a tourist (or overnight visitor), if his/her trip includes an overnight stay, or as a same-day visitor (or excursionist) otherwise ( IRTS 2008, 2.13 ).

Wellness tourism : Wellness tourism is a type of tourism activity which aims to improve and balance all of the main domains of human life including physical, mental, emotional, occupational, intellectual and spiritual. The primary motivation for the wellness tourist is to engage in preventive, proactive, lifestyle-enhancing activities such as fitness, healthy eating, relaxation, pampering and healing treatments.

The future of tourism: Bridging the labor gap, enhancing customer experience

As travel resumes and builds momentum, it’s becoming clear that tourism is resilient—there is an enduring desire to travel. Against all odds, international tourism rebounded in 2022: visitor numbers to Europe and the Middle East climbed to around 80 percent of 2019 levels, and the Americas recovered about 65 percent of prepandemic visitors 1 “Tourism set to return to pre-pandemic levels in some regions in 2023,” United Nations World Tourism Organization (UNWTO), January 17, 2023. —a number made more significant because it was reached without travelers from China, which had the world’s largest outbound travel market before the pandemic. 2 “ Outlook for China tourism 2023: Light at the end of the tunnel ,” McKinsey, May 9, 2023.

Recovery and growth are likely to continue. According to estimates from the World Tourism Organization (UNWTO) for 2023, international tourist arrivals could reach 80 to 95 percent of prepandemic levels depending on the extent of the economic slowdown, travel recovery in Asia–Pacific, and geopolitical tensions, among other factors. 3 “Tourism set to return to pre-pandemic levels in some regions in 2023,” United Nations World Tourism Organization (UNWTO), January 17, 2023. Similarly, the World Travel & Tourism Council (WTTC) forecasts that by the end of 2023, nearly half of the 185 countries in which the organization conducts research will have either recovered to prepandemic levels or be within 95 percent of full recovery. 4 “Global travel and tourism catapults into 2023 says WTTC,” World Travel & Tourism Council (WTTC), April 26, 2023.

Longer-term forecasts also point to optimism for the decade ahead. Travel and tourism GDP is predicted to grow, on average, at 5.8 percent a year between 2022 and 2032, outpacing the growth of the overall economy at an expected 2.7 percent a year. 5 Travel & Tourism economic impact 2022 , WTTC, August 2022.

So, is it all systems go for travel and tourism? Not really. The industry continues to face a prolonged and widespread labor shortage. After losing 62 million travel and tourism jobs in 2020, labor supply and demand remain out of balance. 6 “WTTC research reveals Travel & Tourism’s slow recovery is hitting jobs and growth worldwide,” World Travel & Tourism Council, October 6, 2021. Today, in the European Union, 11 percent of tourism jobs are likely to go unfilled; in the United States, that figure is 7 percent. 7 Travel & Tourism economic impact 2022 : Staff shortages, WTTC, August 2022.

There has been an exodus of tourism staff, particularly from customer-facing roles, to other sectors, and there is no sign that the industry will be able to bring all these people back. 8 Travel & Tourism economic impact 2022 : Staff shortages, WTTC, August 2022. Hotels, restaurants, cruises, airports, and airlines face staff shortages that can translate into operational, reputational, and financial difficulties. If unaddressed, these shortages may constrain the industry’s growth trajectory.

The current labor shortage may have its roots in factors related to the nature of work in the industry. Chronic workplace challenges, coupled with the effects of COVID-19, have culminated in an industry struggling to rebuild its workforce. Generally, tourism-related jobs are largely informal, partly due to high seasonality and weak regulation. And conditions such as excessively long working hours, low wages, a high turnover rate, and a lack of social protection tend to be most pronounced in an informal economy. Additionally, shift work, night work, and temporary or part-time employment are common in tourism.

The industry may need to revisit some fundamentals to build a far more sustainable future: either make the industry more attractive to talent (and put conditions in place to retain staff for longer periods) or improve products, services, and processes so that they complement existing staffing needs or solve existing pain points.

One solution could be to build a workforce with the mix of digital and interpersonal skills needed to keep up with travelers’ fast-changing requirements. The industry could make the most of available technology to provide customers with a digitally enhanced experience, resolve staff shortages, and improve working conditions.

Would you like to learn more about our Travel, Logistics & Infrastructure Practice ?

Complementing concierges with chatbots.

The pace of technological change has redefined customer expectations. Technology-driven services are often at customers’ fingertips, with no queues or waiting times. By contrast, the airport and airline disruption widely reported in the press over the summer of 2022 points to customers not receiving this same level of digital innovation when traveling.

Imagine the following travel experience: it’s 2035 and you start your long-awaited honeymoon to a tropical island. A virtual tour operator and a destination travel specialist booked your trip for you; you connected via videoconference to make your plans. Your itinerary was chosen with the support of generative AI , which analyzed your preferences, recommended personalized travel packages, and made real-time adjustments based on your feedback.

Before leaving home, you check in online and QR code your luggage. You travel to the airport by self-driving cab. After dropping off your luggage at the self-service counter, you pass through security and the biometric check. You access the premier lounge with the QR code on the airline’s loyalty card and help yourself to a glass of wine and a sandwich. After your flight, a prebooked, self-driving cab takes you to the resort. No need to check in—that was completed online ahead of time (including picking your room and making sure that the hotel’s virtual concierge arranged for red roses and a bottle of champagne to be delivered).

While your luggage is brought to the room by a baggage robot, your personal digital concierge presents the honeymoon itinerary with all the requested bookings. For the romantic dinner on the first night, you order your food via the restaurant app on the table and settle the bill likewise. So far, you’ve had very little human interaction. But at dinner, the sommelier chats with you in person about the wine. The next day, your sightseeing is made easier by the hotel app and digital guide—and you don’t get lost! With the aid of holographic technology, the virtual tour guide brings historical figures to life and takes your sightseeing experience to a whole new level. Then, as arranged, a local citizen meets you and takes you to their home to enjoy a local family dinner. The trip is seamless, there are no holdups or snags.

This scenario features less human interaction than a traditional trip—but it flows smoothly due to the underlying technology. The human interactions that do take place are authentic, meaningful, and add a special touch to the experience. This may be a far-fetched example, but the essence of the scenario is clear: use technology to ease typical travel pain points such as queues, misunderstandings, or misinformation, and elevate the quality of human interaction.

Travel with less human interaction may be considered a disruptive idea, as many travelers rely on and enjoy the human connection, the “service with a smile.” This will always be the case, but perhaps the time is right to think about bringing a digital experience into the mix. The industry may not need to depend exclusively on human beings to serve its customers. Perhaps the future of travel is physical, but digitally enhanced (and with a smile!).

Digital solutions are on the rise and can help bridge the labor gap

Digital innovation is improving customer experience across multiple industries. Car-sharing apps have overcome service-counter waiting times and endless paperwork that travelers traditionally had to cope with when renting a car. The same applies to time-consuming hotel check-in, check-out, and payment processes that can annoy weary customers. These pain points can be removed. For instance, in China, the Huazhu Hotels Group installed self-check-in kiosks that enable guests to check in or out in under 30 seconds. 9 “Huazhu Group targets lifestyle market opportunities,” ChinaTravelNews, May 27, 2021.

Technology meets hospitality

In 2019, Alibaba opened its FlyZoo Hotel in Huangzhou, described as a “290-room ultra-modern boutique, where technology meets hospitality.” 1 “Chinese e-commerce giant Alibaba has a hotel run almost entirely by robots that can serve food and fetch toiletries—take a look inside,” Business Insider, October 21, 2019; “FlyZoo Hotel: The hotel of the future or just more technology hype?,” Hotel Technology News, March 2019. The hotel was the first of its kind that instead of relying on traditional check-in and key card processes, allowed guests to manage reservations and make payments entirely from a mobile app, to check-in using self-service kiosks, and enter their rooms using facial-recognition technology.

The hotel is run almost entirely by robots that serve food and fetch toiletries and other sundries as needed. Each guest room has a voice-activated smart assistant to help guests with a variety of tasks, from adjusting the temperature, lights, curtains, and the TV to playing music and answering simple questions about the hotel and surroundings.

The hotel was developed by the company’s online travel platform, Fliggy, in tandem with Alibaba’s AI Labs and Alibaba Cloud technology with the goal of “leveraging cutting-edge tech to help transform the hospitality industry, one that keeps the sector current with the digital era we’re living in,” according to the company.

Adoption of some digitally enhanced services was accelerated during the pandemic in the quest for safer, contactless solutions. During the Winter Olympics in Beijing, a restaurant designed to keep physical contact to a minimum used a track system on the ceiling to deliver meals directly from the kitchen to the table. 10 “This Beijing Winter Games restaurant uses ceiling-based tracks,” Trendhunter, January 26, 2022. Customers around the world have become familiar with restaurants using apps to display menus, take orders, and accept payment, as well as hotels using robots to deliver luggage and room service (see sidebar “Technology meets hospitality”). Similarly, theme parks, cinemas, stadiums, and concert halls are deploying digital solutions such as facial recognition to optimize entrance control. Shanghai Disneyland, for example, offers annual pass holders the option to choose facial recognition to facilitate park entry. 11 “Facial recognition park entry,” Shanghai Disney Resort website.

Automation and digitization can also free up staff from attending to repetitive functions that could be handled more efficiently via an app and instead reserve the human touch for roles where staff can add the most value. For instance, technology can help customer-facing staff to provide a more personalized service. By accessing data analytics, frontline staff can have guests’ details and preferences at their fingertips. A trainee can become an experienced concierge in a short time, with the help of technology.

Apps and in-room tech: Unused market potential

According to Skift Research calculations, total revenue generated by guest apps and in-room technology in 2019 was approximately $293 million, including proprietary apps by hotel brands as well as third-party vendors. 1 “Hotel tech benchmark: Guest-facing technology 2022,” Skift Research, November 2022. The relatively low market penetration rate of this kind of tech points to around $2.4 billion in untapped revenue potential (exhibit).

Even though guest-facing technology is available—the kind that can facilitate contactless interactions and offer travelers convenience and personalized service—the industry is only beginning to explore its potential. A report by Skift Research shows that the hotel industry, in particular, has not tapped into tech’s potential. Only 11 percent of hotels and 25 percent of hotel rooms worldwide are supported by a hotel app or use in-room technology, and only 3 percent of hotels offer keyless entry. 12 “Hotel tech benchmark: Guest-facing technology 2022,” Skift Research, November 2022. Of the five types of technology examined (guest apps and in-room tech; virtual concierge; guest messaging and chatbots; digital check-in and kiosks; and keyless entry), all have relatively low market-penetration rates (see sidebar “Apps and in-room tech: Unused market potential”).

While apps, digitization, and new technology may be the answer to offering better customer experience, there is also the possibility that tourism may face competition from technological advances, particularly virtual experiences. Museums, attractions, and historical sites can be made interactive and, in some cases, more lifelike, through AR/VR technology that can enhance the physical travel experience by reconstructing historical places or events.

Up until now, tourism, arguably, was one of a few sectors that could not easily be replaced by tech. It was not possible to replicate the physical experience of traveling to another place. With the emerging metaverse , this might change. Travelers could potentially enjoy an event or experience from their sofa without any logistical snags, and without the commitment to traveling to another country for any length of time. For example, Google offers virtual tours of the Pyramids of Meroë in Sudan via an immersive online experience available in a range of languages. 13 Mariam Khaled Dabboussi, “Step into the Meroë pyramids with Google,” Google, May 17, 2022. And a crypto banking group, The BCB Group, has created a metaverse city that includes representations of some of the most visited destinations in the world, such as the Great Wall of China and the Statue of Liberty. According to BCB, the total cost of flights, transfers, and entry for all these landmarks would come to $7,600—while a virtual trip would cost just over $2. 14 “What impact can the Metaverse have on the travel industry?,” Middle East Economy, July 29, 2022.

The metaverse holds potential for business travel, too—the meeting, incentives, conferences, and exhibitions (MICE) sector in particular. Participants could take part in activities in the same immersive space while connecting from anywhere, dramatically reducing travel, venue, catering, and other costs. 15 “ Tourism in the metaverse: Can travel go virtual? ,” McKinsey, May 4, 2023.

The allure and convenience of such digital experiences make offering seamless, customer-centric travel and tourism in the real world all the more pressing.

Three innovations to solve hotel staffing shortages

Is the future contactless.

Given the advances in technology, and the many digital innovations and applications that already exist, there is potential for businesses across the travel and tourism spectrum to cope with labor shortages while improving customer experience. Process automation and digitization can also add to process efficiency. Taken together, a combination of outsourcing, remote work, and digital solutions can help to retain existing staff and reduce dependency on roles that employers are struggling to fill (exhibit).

Depending on the customer service approach and direct contact need, we estimate that the travel and tourism industry would be able to cope with a structural labor shortage of around 10 to 15 percent in the long run by operating more flexibly and increasing digital and automated efficiency—while offering the remaining staff an improved total work package.

Outsourcing and remote work could also help resolve the labor shortage

While COVID-19 pushed organizations in a wide variety of sectors to embrace remote work, there are many hospitality roles that rely on direct physical services that cannot be performed remotely, such as laundry, cleaning, maintenance, and facility management. If faced with staff shortages, these roles could be outsourced to third-party professional service providers, and existing staff could be reskilled to take up new positions.

In McKinsey’s experience, the total service cost of this type of work in a typical hotel can make up 10 percent of total operating costs. Most often, these roles are not guest facing. A professional and digital-based solution might become an integrated part of a third-party service for hotels looking to outsource this type of work.

One of the lessons learned in the aftermath of COVID-19 is that many tourism employees moved to similar positions in other sectors because they were disillusioned by working conditions in the industry . Specialist multisector companies have been able to shuffle their staff away from tourism to other sectors that offer steady employment or more regular working hours compared with the long hours and seasonal nature of work in tourism.

The remaining travel and tourism staff may be looking for more flexibility or the option to work from home. This can be an effective solution for retaining employees. For example, a travel agent with specific destination expertise could work from home or be consulted on an needs basis.

In instances where remote work or outsourcing is not viable, there are other solutions that the hospitality industry can explore to improve operational effectiveness as well as employee satisfaction. A more agile staffing model  can better match available labor with peaks and troughs in daily, or even hourly, demand. This could involve combining similar roles or cross-training staff so that they can switch roles. Redesigned roles could potentially improve employee satisfaction by empowering staff to explore new career paths within the hotel’s operations. Combined roles build skills across disciplines—for example, supporting a housekeeper to train and become proficient in other maintenance areas, or a front-desk associate to build managerial skills.

Where management or ownership is shared across properties, roles could be staffed to cover a network of sites, rather than individual hotels. By applying a combination of these approaches, hotels could reduce the number of staff hours needed to keep operations running at the same standard. 16 “ Three innovations to solve hotel staffing shortages ,” McKinsey, April 3, 2023.

Taken together, operational adjustments combined with greater use of technology could provide the tourism industry with a way of overcoming staffing challenges and giving customers the seamless digitally enhanced experiences they expect in other aspects of daily life.

In an industry facing a labor shortage, there are opportunities for tech innovations that can help travel and tourism businesses do more with less, while ensuring that remaining staff are engaged and motivated to stay in the industry. For travelers, this could mean fewer friendly faces, but more meaningful experiences and interactions.

Urs Binggeli is a senior expert in McKinsey’s Zurich office, Zi Chen is a capabilities and insights specialist in the Shanghai office, Steffen Köpke is a capabilities and insights expert in the Düsseldorf office, and Jackey Yu is a partner in the Hong Kong office.

Explore a career with us

International Tourism pp 163–193 Cite as

Selling and Marketing the Tourism Product

• François Vellas &
• Lionel Bécherel  

83 Accesses

In order to achieve commercial success, tourism product designers and distributors offer products specifically adapted to the needs of the consumer. These are sold at competitive prices and should be perceived to have a good quality—price ratio. The tour operator packaging and selling tourism products should enjoy a high reputation and an image of quality. Success depends on an expert knowledge of the market, skilful packaging of the products and an ability to commercialise them.

This is a preview of subscription content, log in via an institution .

Unable to display preview.  Download preview PDF.

Further Reading

Ashworth, G. J. and Goodhall, B. C. Marketing in the Tourism Industry . London: Routeledge, 1990.

Google Scholar  

Bello, D. C. and Etzel, M. J. ‘The Role of Novelty in the Pleasure Travel Experience’, Journal of Travel Research , 24 (1),pp. 20–6, 1985.

Article   Google Scholar  

Booms, B. H. and Bitner, M. J. ‘New Management Tools for the Successful Tourism Manager’, Annals of Tourism Research , 7 (3), pp. 337–52, 1980.

Buck, R. C. ‘The Ubiquitous Tourist Brochure: Explorations in its Intended and Unintended Use’, Annals of Tourism Research , 4 (4), pp. 195–207, 1977.

Cooper, C., Fletcher, J., Gilbert, D. and Wanhill, S. Tourism Principles and Practice . London: Pitman, 1993.

Dernoi, L. A. ‘Farm Tourism in Europe’, Tourism Management , 1983

Heath, E. and Wall, G. Marketing Tourism Destinations . New York: Wiley, 1992.

Holloway, J. C. and Plant, R. V. Marketing for Tourism . London: Pitman, 1993.

Kotler, P. Marketing Management: Analysis, Planning, Implementation and Control . 6th edn, New Jersey: Prentice-Hall International, 1988.

Middleton, V. T. C. Marketing in Travel and Tourism . Oxford: Heinemann, 1988.

Morrison, A. M. Hospitality and Travel Marketing . New York: Delmar, 1989.

Wahab, S., Crampton, L. J. and Rothfield, L. M. Tourism Marketing . London: Tourism International Press, 1976.

Witt, S. and Moutinho, L. Tourism Marketing and Management Handbook . Hemel Hempstead: Prentice Hall, 1994.

WTO. Concept and Production Innovations of the Tourism Product . Madrid, 1983 .

Download references

You can also search for this author in PubMed   Google Scholar

Copyright information

© 1995 François Vellas and Lionel Bécherel

About this chapter

Cite this chapter.

Vellas, F., Bécherel, L. (1995). Selling and Marketing the Tourism Product. In: International Tourism. Palgrave, London. https://doi.org/10.1007/978-1-349-24074-6_6

Download citation

DOI : https://doi.org/10.1007/978-1-349-24074-6_6

Publisher Name : Palgrave, London

Print ISBN : 978-0-333-61523-2

Online ISBN : 978-1-349-24074-6

eBook Packages : Palgrave Business & Management Collection Business and Management (R0)

Share this chapter

Anyone you share the following link with will be able to read this content:

Sorry, a shareable link is not currently available for this article.

Provided by the Springer Nature SharedIt content-sharing initiative

• Publish with us

Policies and ethics

• Find a journal
• Track your research

How do travel and tourism distribution channels work?

By Kevin Tjoe — 29 Nov 2021

tourism distribution channels

Updated January 2023 – A tourism distribution channel refers to the stakeholders and methods involved in taking a tourism product from the supplier to the consumer. Typically, the chain of distribution in tourism refers to the businesses and platforms involved in selling, distributing, and bundling tourism products. However, more components are involved across the entire distribution chain, including suppliers, wholesalers, resellers, and consumers.

By aligning your business with existing distribution channels, you connect with important stakeholders in the industry. This creates more efficiency in your marketing efforts and ultimately grows your tourism and activity business.

What is a distribution channel?

Tourism distribution channels are the avenues tourism products and services are made accessible to consumers. Typically, tourism products are sold directly by the primary provider or through a series of intermediaries. If brokers or travel wholesalers are involved, this is called indirect distribution. Consumers can access these products via various mediums, including traditional channels such as travel agents, government bodies such as information centers, and even other tour and activity operators .

How it works

While direct bookings may still account for a large part of business, branching out through additional distribution channels can help you to maximize your brand exposure, reduce risk and ultimately boost your bookings. Many distribution channels will have access to much larger marketing spend or broader customer bases. This can provide you with access to more exposure and quality bookings.

Typically speaking you’ll provide your availabilities to them, and they’ll, in turn, bring in bookings at a pre-agreed commission rate.

The chain of distribution

The chain of distribution in tourism refers to the businesses and platforms involved in selling, distributing, and bundling tourism products. This process begins with the primary tour and activity provider all the way to the end consumers experiencing it.

Generally, there are four steps to the distribution chain:

1. Suppliers/principals

2. Wholesales

3. Resellers

4. End consumers

The distribution chain for a particular product can go through all of the steps depending on its distribution channel. For example, direct distribution won’t require wholesalers or resellers, as suppliers sell their products directly to consumers, whereas indirect distribution requires intermediaries.

Suppliers or principals include the primary providers across accommodation, transportation and car hire companies, attractions, and experiences. Examples include hotels, Airbnb hosts, airlines, and the attractions such as the Empire State Building.  

Wholesalers

Wholesalers develop packages of travel products for retailers to sell on, though in some cases they may actually sell directly to the consumer. These packages or itineraries might include tours, activities, accommodation, transport, and/or travel insurance.

Wholesalers can include: 

• Destination Management Organisations (DMOs) or inbound tour operators, such as government tourism boards or tourism authorities
• Global Distribution Systems (GDSs), are used by retailers such as OTAs to easily see an inventory of availability from tourism operators.

Resellers purchase and bundle experiences to be sold directly to the consumer. A common example includes traditional travel agents, which create personalized travel packages. However, online travel agents (OTAs) such as Expedia and Tripadvisor are more commonly used these days. They provide accessibility to a range of tourism products such as airline tickets, hotel bookings, tours and activities, and more.

Consumers are the most critical component of the distribution chain. That is because they are the end user of the product. The choices and decisions consumers make have a huge impact on the rest of the distribution chain. Trends in consumer behavior, or individual decisions all influence how tourism products are marketed and sold.

Advantages of tourism distribution channels

Broadening your distribution channels involve heaps of advantages. Here are the top five:

Connectivity

By aligning your tour and activity business with the broader industry, you can connect with important stakeholders across every step of the tourism distribution chain. Forming strategic partnerships with resellers and tourism platforms enables you to access a broader customer base. This provides you with a greater opportunity to increase your sales. 

Generating 100% of your revenue via direct marketing requires a great deal of investment in time and money. Existing distribution channels generally have larger marketing budgets that they can spend to attract more customers.

Typically, as the supplier, you’d only pay a fee when a booking has been made via their channel – making your marketing and sales costs predictable. This means you gain additional resources to expend on other areas of your business, such as improving your customer experience.

Flexibility

Given the wide array of potential partners, you have the freedom and flexibility to test and experiment with different methods of promoting your business. Plus, it’s more convenient for your customers to book your services through an array of trusted partners. This helps to increase customer loyalty and satisfaction.

Transparency

Utilizing existing distribution channels can make the entire booking process more transparent for both you and the end consumer. On the tour operator side, it provides you with a clearer understanding of your customer behavior and adjusts your marketing strategies for better outcomes. And on the customer side, information such as reviews displayed on your profile allows them to create informed decisions before choosing to book your services.

Accessibility

Promoting your tourism products via numerous distribution channels means that your customers can book your services where they like; when they like. Furthermore, your products and services will be found across multiple avenues – enabling a wider array of customers to book with you. In fact, operators are using an average of 14 distribution channels according to Arival’s Operator Insights 2021-2022 report.

What are the main types of tourism distribution channels?

There are many ways to get in front of customers, even more so since the rise of digital channels. From travel agents to mobile apps, tourism suppliers have never had more choices regarding promoting their products and services. There are four main distribution channel types. These include:

Traditional channels

Traditional distribution channels often refer to real-world marketing channels separate from online and mobile experiences. Indirect traditional distribution channels can include travel distribution services such as travel agents, tourism information centers, flyers and print/ digital brochures , promotional marketing services, and tour operators . Depending on your products and services, wholesalers can also make up part of your business’ traditional distribution channel. 

Online channels

In recent years, online travel agencies (OTAs) have dominated the tourism industry. These online experiences allow users to plan, book, and pay for personalized travel plans through an easy-to-use centralized platform. Often flights, hotel bookings, car hire , and local experiences can be bundled and purchased through a single site, making the process convenient and intuitive. These platforms can also be cheaper due to the relatively low cost of maintaining a website over a brick-and-mortar travel agency. 

Mobile channels

Like online channels, mobile distribution channels rely on digital platforms, such as apps, to promote and sell tourism products. Many popular mobile apps which centralize the tourism buying experience have cropped up in recent years. In addition, airlines, hotels, and other major suppliers have begun developing apps to improve customer loyalty and engagement. Other forms of mobile marketing can include SMS marketing, mobile advertising, and cold calling.

Direct channels

Direct marketing and sales channels include anything your business has direct control over and does not involve an intermediary. This type of marketing can occur through traditional, online, and mobile mediums. For example, direct online channels can include your website, direct bookings via a booking system, online chat assistance, and your social media accounts.

While direct marketing efforts via mobile can consist of sending promotional text messages to previous customers, cold calling potential customers, and sending personalized email marketing messages . More traditional measures may include brochures and flyers, a storefront, and salespeople.

Choosing the right tourism distribution channels

As a tour company, it’s essential to understand which distribution channels will achieve the most significant results for your business. While trial and error can bring results over the long run, understanding what makes a channel right for your business can accelerate your path to success. 

Identify target market

To understand whether online or offline marketing, direct or indirect distribution, or mobile versus online platforms are best for your business, you need to understand your customers.

Demographics such as age, country of origin, the number of travelers in a party, and the number of children arriving can greatly impact how you communicate and effectively sell your services. For example, an older demographic may be more likely to use traditional channels such as a travel agent, while a young family might be found via online and social media . First, check over your previous customers and try to pull out any obvious trends amongst your clientele, then research which channels best suit your audience.

Research channels

It’s important to research which channels are available to promote your services. But also, it’s essential to understand the reputation of your potential strategic partners. When engaging in indirect marketing, you are aligning your brand with your distributors, so choosing platforms and businesses which align with your values is important. It’s also essential to understand the costs and benefits of each channel and make informed decisions based on what will work for your business. 

Evaluate costs and benefits

Each platform and distribution channel will have different pricing models. Some may charge a flat fee for promotional services, others may purchase and resell your services, while others may charge a fee when you receive a booking. It’s essential to understand what level of return you can expect. If you are starting out, finding performance-based pricing options will allow you to pay as you go. Alternatively, flat fee services can sometimes provide a higher return as your budget can go directly to marketing spend.

Track performance

Once you choose one or more channels to distribute your services, ensure you track the performance versus how much it costs to attain them. By understanding the performance of your partnership, it enables you to eliminate ineffective channels and double down on your marketing efforts, thus, cutting you costs.

How can you manage all distribution channels easily?

It can take a lot of time to form and manage strategic partnerships with multiple resellers. Luckily, technology is here to help. A channel manager such as Rezdy Channel Manager can be accessed regardless of your booking system or size of business, and makes it simple to negotiate agreements, manage inventory, rates and manage commissions with a vast range of resellers, from local visitor centers to the big-name OTAs. Live availability of your tours, activities or attractions are visible from one dashboard, dropping the risk of pesky double bookings as well.

You can access the broadest reach of resellers in the industry, connect with desired resellers and easily distribute rates and availability in real-time. Rezdy is integrated with a number of alternative reservation systems and is continuously adding more, providing suppliers access to channel management tools, directly from their existing system. Suppliers with a custom built booking system can connect with Rezdy Channel Manager as well. For Rezdy booking software customers, channel management is included. 

Find out more about how Rezdy’s channel management platform can support your business .

Ready to  join the thousands of Rezdy customers that managed to grow their bookings by over 25% in 2022? Book a free channel manager demo with a product specialist to see how our products can fit the needs of your tour business. If you are interested in Rezdy’s booking software that includes channel management, you can start a free 21-day trail trial.

If you enjoyed this article, be sure to sign up to receive the  Rezdy newsletter , a valuable resource for those who want to stay up-to-date on the latest industry happenings.

Want to know more about reseller commission rates? Read our guide to industry standard commission rates

Broaden your distribution channels with Rezdy

Enjoy 21 days to take a look around and see if we are a good fit for your business.

No obligations, no catches, no limits, nada

Distribution

eBook: Guide to growing your tourism business through distribution & channel management tools

How to navigate API connections with resellers

Case Study: Wendella Tours & Cruises

Sabah identifies 133 rural tourism products in poorest districts

Joniston at Tagal Kg Nalapak community-based tourism attraction in Ranau.

KOTA KINABALU (March 29): Not even the most remote village in Sabah would be excluded from initiatives to use tourism to enhance the livelihood of the rural poor, said Sabah Tourism Board (STB) chairman Datuk Joniston Bangkuai.

To date, STB has catalogued 133 rural tourism products across the 10 poorest districts in Sabah, encompassing community-based tourism, homestays and privately owned ventures.

The districts are Tongod (six products), Beluran (two), Pitas (five), Kinabatangan (six), Kota Marudu (20), Tuaran (38), Ranau (35) and Lahad Datu (12), which were highlighted by Economy Minister Rafizi Ramli in the recent Dewan Rakyat sitting as poverty-stricken areas based on the Household Income and Expenditure Survey 2022 report.

Two others are Nabawan (three products) and Telupid (six), which were listed in the Statistics Department’s Poverty Index 2022 report.

Joniston, who is also the Assistant Tourism, Culture, and Environment Minister, highlighted the vital role of tourism in driving economic recovery within these districts.

“The STB’s product division is tasked to identify potential rural tourism products and provide essential aid to local communities to grow in tourism,” he said.

He expressed hope to meet with Rafizi to present tourism-related initiatives, emphasising the need for cohesive efforts to uplift Sabah from the poverty line.

“I believe it’s crucial to involve the Federal Ministry of Economy in our endeavours as this will enable them to understand better how they can support Sabah’s journey out of poverty.

“We firmly believe that tourism is a cornerstone in empowering rural communities and fostering economic growth.

“As most rural folks are farmers, we also see great potential in translating agricultural activities into agro-tourism experiences,” he added.

The development of tourism products focusing on the poorest districts was brought up during STB’s Product Rural Tourism Committee meeting.

The discussion focused on plans to enhance tourism activities to yield concrete results.

Among the 133 rural tourism attractions, Sabah Tourism’s product team have listed several established products in all 10 districts, which, among others, include: Tinopikon Langkabon Eco-Tourism, Kg Kulat Tagal Eco-Tourism, Kg Totomolon Tagal Eco-Tourism, and Chinese Heritage House Kuala Tongod in Tongod; Sugut Conservation Area and (Death March Trail) Tangkol Crossing Monument Kg Muanad in Beluran; Supirak Island, Piniapat Hill, Pitas Floating Coral Bar, and Kem Cinta Alam Paitan in Pitas; as well as Miso Walai Homestay, Suan Lamba Kg. Lanut, and Bilit Homestay in Kinabatangan.

Among Kota Marudu’s established tourism products include Walai Tobilung Kg Minansad, Sorinsim Sub Station, Kokobuan waterfall Eco-Tourism Kg Gana, Liogu Noruod Kg Sungoi, Togudon Geo Tourism Kg Togudon, Liogu Stamping Kg Marak Park, and Mt Cochrane Kg Kirangawan.

Some of Tuaran-Tamparuli products are the Mantaranau Jungle Track & Recreation, Kokobuan Trig Hill & Eco Tourism, Murug-Turug Eco-Tourism, Mara Kara Hill & Eco-Tourism Koperasi Pelancongan Kg Tiong Simpodon, Monggiland Eco-Tourism, and Bundu Tohuri Forest Adventure Park.

As for Tuaran-Kiulu, some established products are identified as Moninduk Sirung Kg Tiong Temburong, Kaliposuan Recreation View, Mitabang Homestay, Dapako Hill Lingga Eco-Tourism, Pusat Rekreasi Bambangan Lama, Tongkoluson Campsite, Kiulu Farmstay, Kampung Stay Tombung, Sinorut Eco-Tourism, Lambing Park Eco-Tourism, Tukad Gonipis Sandangau, Pomompuhunyan Sinompuruan Campsite, Sinansag Eco-Tourism, Lubok Riverside Campsite and Recreation Centre, Lokub Eco-Tourism, Ratau Eco-Tourism, Poturidong River and Nature Hike, Tagahas Cultural Group Pukak Village, and Talantang Eco-Tourism.

Ranau has established Tagal Luanti, Tagal Nalapak, Tukad Gonipis Kg. Tudan, Bombon Marakau, Lugas Hill Eco-Tourism, Tiang Lama Eco-Tourism, Lugas Hill, Tinagas Cultural Centre Kg Sinurai, Tagal Thinkoyodon Malinsau Darat, Wasai Gondou Eco-Tourism Kg Tinindoi, Batu Payung Campsite, Kg Mangkapoh Handicraft Centre, Meridi Eco-Tourism, and Trigona Eraros Farm.

In Lahad Datu, established products are Pulau Buta Eco-Tourism, W Bay Payang, Inap Desa Sri Payung, Borneo Paradise, Irunji Agro Tourism, Segama ATV & Village Stay, Serebpit Eco-Tourism Adventure, Tambisan Island Lodge, Segangan Magrove, Bukit Belacon, Bukit Tapadung and Merabung Waterfall.

Sabah Tourism identified Batu Punggul, Tahaa Tininting Kg Salinatan Pensiangan, and Balaron Eco-Tourism as established products in Nabawan; while Bakong-Bakong Eco-Tourism and Tingkoyodon Gaab Waterfall are established attractions available in Telupid.

Sponsored links

Port of Baltimore suspends ship traffic after bridge collapse: What it means for travel

Travel is being impacted by Tuesday’s Francis Scott Key Bridge collapse along Interstate 695 in Baltimore, Maryland. 

Drivers were immediately directed to take alternate routes through the city, following the early morning incident. What’s less clear is what the bridge collapse may mean for upcoming cruises in and out of Baltimore.

“Vessel traffic into and out of the Port of Baltimore is suspended until further notice,” the Port of Baltimore posted on X, formerly Twitter.

Live Updates: Baltimore's Key Bridge collapses after ship hits it; construction crew missing

Rep. Kweisi Mfume, D-Md., whose district includes the bridge and the port, called the collapse an “unthinkable horror” and said he had spoken with Transportation Secretary Pete Buttigieg and the White House. 

Learn more: Best travel insurance

“They are responding with all of the assets at their disposal,” he said in a statement. “Our prayers right now are for the missing individuals and victims of this tragedy. We thank God for the effective service of our first responders.”

Here’s what we know.

Which cruises go to Baltimore?

Several major cruise lines serve Baltimore. According to the Cruise Lines International Association, the industry’s leading trade group, published itineraries in the 2024 calendar year include a dozen ships making 115 stops in Baltimore.

“We are deeply saddened by the tragedy and collapse of the Key Bridge that occurred last night and extend our support and heartfelt prayers to all those impacted,” CLIA spokesperson Anne Madison said in an emailed statement. “We join everyone in extending our thanks and appreciation to the first responders and emergency workers in Baltimore, the U.S. Coast Guard, and other professionals who are working with one goal in mind—to save lives. We are closely following this situation.”

Royal Caribbean’s Vision of the Seas has a roundtrip itinerary scheduled to depart Baltimore on April 12, according to the cruise line’s website. “We are deeply saddened by the tragedy and collapse of the Francis Scott Key Bridge and extend our heartfelt prayers to all those impacted,” a spokesperson for the line said in an email. “We are closely monitoring the situation, and our port logistics team is currently working on alternatives for Vision of the Seas’ ongoing and upcoming sailings.”

Carnival’s website shows Carnival Pride and Carnival Legend also have sailings into or out of Baltimore set for April. 

Carnival Legend will temporarily move operations to Norfolk, Virginia.

The ship's current cruise, which left for a planned round-trip sailing from Baltimore on March 24, will end in Norfolk on Sunday. Passengers will then receive free bus rides to Baltimore. The vessel's next cruise will sail round-trip from Norfolk later that day.

“Our thoughts remain with the impacted families and first responders in Baltimore,” Carnival president Christine Duffy said in a statement. “We appreciate the pledge made by President Biden today to dedicate all available resources to reopen Baltimore Harbor to marine traffic as soon as possible. As those plans are finalized, we will update our future cruise guests on when we will return home to Baltimore, but in the meantime, we appreciate the quick response and support from officials in Norfolk.”

The cruise line has not yet shared plans for Carnival Pride. Carnival's parent company, Carnival Corp., said the temporary change in homeport is estimated to have an impact of up to $10 million on adjusted EBITDA and adjusted net income this year, according to a news release .

Was your cruise itinerary changed?: What to do next

American Cruise Lines has roundtrip sailings from Baltimore scheduled in May, according to its website.

“We will monitor the situation and make adjustments to future cruises if needed, but at the present time our schedules remain unaffected, and our thoughts remain with those affected by the immediate situation and rescue efforts underway,” an American Cruise Lines spokesperson told USA TODAY.

Norwegian Cruise Line doesn’t appear to have any Baltimore sailings until September on Norwegian Sky . The line will stay in contact with the port and share any changes with passengers and travel partners, according to a spokesperson.

"In the meantime, we wish the city of Baltimore strength during this very unfortunate event," they said in an email.

Alternate routes for the Baltimore bridge

Most drivers can take Interstate 95 (Fort McHenry Tunnel) or Interstate 895 (Baltimore Harbor Tunnel) to avoid the collapsed bridge. However Maryland Transportation Authority notes there are some exceptions .

Vehicles carrying hazardous materials, including more than 10 pounds of propane, are not allowed in the tunnels. Additionally, vehicles more than 13-feet and 6-inches high or 8-feet wide may not use the 1-895 Baltimore Harbor Tunnel. Vehicles more than 14-feet and 6-inches high or 11-feet wide may not use the I-95 Fort McHenry Tunnel. 

Those vehicles should use the western portion of I-695 instead.

'Antenna' shop Tripzip to spotlight tourism outside Seoul

A n "antenna" shop, dedicated to showcasing local products, named Tripzip, is set to open in Myeong-dong, central Seoul, on Monday.

The shop will offer visitors information about local travel options and the opportunity to purchase regional products, the Seoul Metropolitan Government said.

Tripzip, which means a place where individuals can experience local tourism and cultural offerings simultaneously, aims to foster coexistence with the region by providing information on tourism beyond Seoul.

With the shop, the city government aims to understand trends among visitors and attract potential consumers.

Comprehensive local tourism information covering five regions — Gangwon Province, North Chungcheong Province, South Jeolla Province, North Gyeongsang Province and Andong — will be offered at the shop.

Spanning approximately 230 square meters, the shop will operate year-round from 10 a.m. to 7 p.m., comprising a promotion zone, media zone, experience zone and information desk.

In the promotion zone, key tourism attractions such as major festivals and popular spots will be highlighted. Seasonal souvenirs and specialties from local areas will also be showcased. Direct purchase of these products on-site is available, and guidance will also be provided to sales locations.

A media wall in the media zone will display promotional videos showcasing regional tourist attractions and festivals.

The experience zone will offer cultural activities with based on local tourism products, such as cotton card-making, renowned in Andong, and woodblock printing programs from the Confucian Culture Museum in North Gyeongsang Province. Visitors can also taste local food and beverages.

Moreover, the information desk at the shop will offer help for tourists who are unfamiliar with travel in Korea. Guides proficient in English, Japanese and Chinese will provide one-on-one consultation, helping tourists design itineraries tailored to their preferences and schedules.

The city government expects the shop will help bring tourists to destinations outside Seoul. It also plans to operate pop-up stores featuring local cafes, where visitors can enjoy unique foods and beverages exclusive to each region.

Kim Young-hwan, the director general of the Tourism and Sports Bureau at the Seoul Metropolitan Government, said that there are many attractive local tourist destinations outside Seoul despite the city's reputation as the most famous tourist destination in Korea among tourists.

"We hope that Tripzip will increase interest in local tourism and foster a culture of coexistence between Seoul and the regions in the tourism sector," he said.

Acting CEO of Namibia Tourism Board Bonnie Mbidzo talks market diversification and air connectivity The VA TourismPodcast

• Places & Travel

In today’s episode, the Acting CEO of Namibia Tourism Board Bonnie Mbidzo on the sidelines of last week’s ITB Berlin tells me, the travel trade has expressed their excitement about Namibia’s diversified tourism products. He opens up on his short to medium-term plans and finally looks forward to welcoming delegates for the AviaDev to the land of the brave. 

• More Episodes
• Copyright 2020 All rights reserved.

Thai economy expands slowly in February, helped by tourism, central bank says

Get a look at the day ahead in Asian and global markets with the Morning Bid Asia newsletter. Sign up here.

Reporting by Orathai Sriring and Kitiphong Thaichareon; Writing by Chayut Setboonsarng; Editing by Martin Petty

Our Standards: The Thomson Reuters Trust Principles. , opens new tab

Take Five: A shiny new quarter

A tumultuous first quarter is coming to an end and the "buy everything" party is in full swing across markets, but the coming week has a few reality checks that even the most avid bulls may not be able to overlook.

Chemours shares fell as much as 15.8% on Thursday, after the chemical company forecast downbeat first-quarter sales and revised some past financial results following an internal review into management misconduct.

We've detected unusual activity from your computer network

To continue, please click the box below to let us know you're not a robot.

Why did this happen?

Please make sure your browser supports JavaScript and cookies and that you are not blocking them from loading. For more information you can review our Terms of Service and Cookie Policy .

For inquiries related to this message please contact our support team and provide the reference ID below.

• Travel, Tourism & Hospitality

Industry-specific and extensively researched technical data (partially from exclusive partnerships). A paid subscription is required for full access.

Sydney tourism contribution Australia FY 2023, by industry

In financial year 2022, the gross value added (GVA) by the cafes, restaurants, and takeaway food services industry to tourism in Australia came to over 426 million Australian dollars, the second highest contribution across the city's tourism-related industries. Ownership of dwellings and air, water, and other transport were also significant contributors.

Direct gross value added (GVA) of tourism in Sydney, Australia in financial year 2022, by tourism-related industry (in billion Australian dollars)

• Immediate access to 1m+ statistics
• Incl. source references
• Download as PNG, PDF, XLS, PPT

Additional Information

Show sources information Show publisher information Use Ask Statista Research Service

August 2023

Australia's financial year runs from July to June of the following year. For example, FY 2017 starts on July 1, 2016, and ends on June 30, 2017.

Other statistics on the topic

Retail & Trade

• Annual revenue of cafés, restaurants, and takeaway food services Australia 2004-2023

Food & Drink Services

• Number of operating cafés and restaurants Australia FY 2017-2023
• Number of operating cafés and restaurants Australia FY 2023, by state
• Major food delivery platform market share Australia Q4 2022

To download this statistic in XLS format you need a Statista Account

To download this statistic in PNG format you need a Statista Account

To download this statistic in PDF format you need a Statista Account

To download this statistic in PPT format you need a Statista Account

As a Premium user you get access to the detailed source references and background information about this statistic.

As a Premium user you get access to background information and details about the release of this statistic.

As soon as this statistic is updated, you will immediately be notified via e-mail.

… to incorporate the statistic into your presentation at any time.

You need at least a Starter Account to use this feature.

• Immediate access to statistics, forecasts & reports
• Usage and publication rights
• Download in various formats

You only have access to basic statistics. This statistic is not included in your account.

• Instant access  to 1m statistics
• Download  in XLS, PDF & PNG format
• Detailed  references

Business Solutions including all features.

Statistics on " Restaurant and food service in Australia "

• Monthly food services retail revenue Australia 2019-2023
• Operating profit of the accommodation and food services industry Australia 2017-2023
• Quarterly number of accommodation and food service employees Australia 2013-2023
• Number of accommodation and food service industry employees Australia 2023, by sector
• Distribution of food services Australia 2022, by outlet type
• Share of independent and chain food services Australia 2016-2022
• Number of locations of popular coffee franchises Australia 2024
• Number of operating cafés and restaurants Australia FY 2023, by turnover
• Number of operating cafés and restaurants Australia FY 2023, by employment size range
• Ways restaurants managed rising costs Australia 2023
• Leading tactics employed by restaurants to encourage consumer spending Australia 2023
• Total revenue of fast food and takeaway food services Australia 2014-2023
• Number of locations of popular QSR brands Australia 2024
• Number of Subway stores Australia 2024, by state
• Number of McDonald's restaurants Australia 2024, by state
• Number of KFC restaurants Australia 2024, by state
• Key statistics on fast food consumption at QSRs Australia 2023
• Drivers of consumer satisfaction with fast food Australia 2023
• Number of operating takeaway food services Australia FY 2018-2023
• Number of operating takeaway food services Australia FY 2023, by state
• Number of operating takeaway food services Australia FY 2023, by turnover
• Average weekly spend on takeout Australia 2023, by app or service
• Average weekly spend on takeout Australia 2023, by state
• Average weekly spend on takeout Australia 2023, by age
• Leading benefits of online food delivery services Australia 2023
• Share of people dining out Australia 2023, by diner type
• Ways people discovered new restaurants Australia 2023
• Leading spending incentives for restaurant and café customers Australia 2023
• Leading issues experience by restaurant and café guests Australia 2023
• Leading spending incentives for QSR guests Australia 2023
• Leading issues experience by QSR guests Australia 2023

Other statistics that may interest you Restaurant and food service in Australia

• Basic Statistic Monthly food services retail revenue Australia 2019-2023
• Basic Statistic Annual revenue of cafés, restaurants, and takeaway food services Australia 2004-2023
• Basic Statistic Operating profit of the accommodation and food services industry Australia 2017-2023
• Premium Statistic Quarterly number of accommodation and food service employees Australia 2013-2023
• Premium Statistic Number of accommodation and food service industry employees Australia 2023, by sector
• Premium Statistic Distribution of food services Australia 2022, by outlet type
• Premium Statistic Share of independent and chain food services Australia 2016-2022

Restaurants and cafés

• Premium Statistic Number of locations of popular coffee franchises Australia 2024
• Basic Statistic Number of operating cafés and restaurants Australia FY 2017-2023
• Basic Statistic Number of operating cafés and restaurants Australia FY 2023, by state
• Basic Statistic Number of operating cafés and restaurants Australia FY 2023, by turnover
• Basic Statistic Number of operating cafés and restaurants Australia FY 2023, by employment size range
• Premium Statistic Ways restaurants managed rising costs Australia 2023
• Premium Statistic Leading tactics employed by restaurants to encourage consumer spending Australia 2023

Quick-service restaurants

• Premium Statistic Total revenue of fast food and takeaway food services Australia 2014-2023
• Premium Statistic Number of locations of popular QSR brands Australia 2024
• Premium Statistic Number of Subway stores Australia 2024, by state
• Premium Statistic Number of McDonald's restaurants Australia 2024, by state
• Premium Statistic Number of KFC restaurants Australia 2024, by state
• Premium Statistic Key statistics on fast food consumption at QSRs Australia 2023
• Premium Statistic Drivers of consumer satisfaction with fast food Australia 2023
• Basic Statistic Number of operating takeaway food services Australia FY 2018-2023
• Basic Statistic Number of operating takeaway food services Australia FY 2023, by state
• Basic Statistic Number of operating takeaway food services Australia FY 2023, by turnover
• Premium Statistic Major food delivery platform market share Australia Q4 2022
• Premium Statistic Average weekly spend on takeout Australia 2023, by app or service
• Premium Statistic Average weekly spend on takeout Australia 2023, by state
• Premium Statistic Average weekly spend on takeout Australia 2023, by age
• Premium Statistic Leading benefits of online food delivery services Australia 2023

Dining behavior

• Premium Statistic Share of people dining out Australia 2023, by diner type
• Premium Statistic Ways people discovered new restaurants Australia 2023
• Premium Statistic Leading spending incentives for restaurant and café customers Australia 2023
• Premium Statistic Leading issues experience by restaurant and café guests Australia 2023
• Premium Statistic Leading spending incentives for QSR guests Australia 2023
• Premium Statistic Leading issues experience by QSR guests Australia 2023

Further Content: You might find this interesting as well