Exploring the Characteristics of Tourism Industry and Antecedents to Competitive Advantage Creation (2024)

FAQs

What are the main characteristics of the tourism industry? ›

Intangibility: you can't hold tourism. Perishability: an unsold plane seat is a lost opportunity to make money. Seasonality: customers may be more or less likely to go somewhere with changing seasons. Interdependence: all sorts of independent companies depend on one another to make a tourist's experience unforgettable.

A country has a competitive advantage in tourism services when it is able to produce them at a lower opportunity cost than other countries.

The academic literature has described numerous factors that influence competitiveness, such as the following: basic resources and attractions, culture and the historical-artistic heritage, geography, climate or the planning of cultural or leisure events, tourism destination accessibility, transport and accommodation ...

The five main reasons that make tourism so important in the United States is the publicity between countries, revenues for local businesses, increase in sales tax revenues, more jobs for people in these destinations, and the thriving of communities.

These include intangibility, inseparability, variability, and perishability. Further, this chapter looks at the various marketing management strategies for tourism and hospitality businesses.

Competitive advantage refers to the ways that a company can produce goods or deliver services better than its competitors. It allows a company to achieve superior margins and generate value for the company and its shareholders.

There are three different types of competitive advantages that companies can actually use. They are cost, product/service differentiation, and niche strategies.

What Is a Competitive Advantage? Competitive advantage refers to factors that allow a company to produce goods or services better or more cheaply than its rivals. These factors allow the productive entity to generate more sales or superior margins compared to its market rivals.

Competitiveness is grounded in the strategic and operational advantages businesses have been able to achieve and through the application of these concerns to tourism, the competitive advantage of destinations.

What factors affect the tourism industry? ›

The factors that affect the tourism industry include culture, peace, security, developed infrastructure, visa facilities, natural beautification, attitude of the people, tourist numbers, quarantine, world population, education, income level, price level of commodities, different languages, and hotel fares.

demand factors arising from the tourists, Increase in disposable income. Increased availability of leisure time.

There are three main reasons for travel. These are: o Leisure tourism o Visiting friends and relatives o Business tourism Most tourist trips can be placed into one of these groups.

Attractions are one of the most important component and element that attract people to travel from one place to another.

The five vital components of tourism system are Attraction, Accessibility, Accommodation, Amenities and Activities. a) Attraction: Tourism activity starts with the attractions. At a place or destination there has to be some attraction only then people or tourists will visit that area.

Tourists can have diverse backgrounds, travel styles, and motivations, but there are some common traits that can be identified. These characteristics can include the purpose of travel, budget, age, interests, cultural background, and level of technology usage.

Intangibility. It is the most essential characteristic of the tourism industry. Things that we can see and touch are tangible products such as mobile phones, cars, and consumer products are tangible products. Things that can only be felt and experienced are intangible products.