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CHAPTER 2 TOURISM SYSTEM

4. Tourist Perception

2.5 THE SUPPLY SIDE - TOURISM PRODUCT

2.5.4 Nature of Tourism Product

The nature of the tourism product is characterised by the following: (1) service­

orientation, (2) inseparability, (3) intangibility, (4) perishability, (5) interdependence, and (6) the high-fixed cost of service operations (Middleton, 2001).

2.5.4.1 'Service-:orientation'

The travel and tourism industry is service-oriented, and as noted by Rathmell ( 1 974, cited in Middleton, 200 1 , p. 4 1 ) 'Goods are produced. Services are performed. ' Middleton (2001 ) differentiates between physical goods or product and services (Table 1 ).

Table 1 : The Difference Features between Goods and Services Products Goods sale and can be inspected prior to sale

Stocks of product can be created and held for future sale

(Source: Middleton, 200 1, p. 42) 2.5.4.2 'Inseparability'

Services Are performed

Performed on the producers' premises, often with full customer participation (inseparable) Customers travel to places where the services are delivered

Purchase confers temporary right to access at a pre-arranged place and time

Services are intangible at the point of sale

Perishable; services can be inventoried but stocks of product cannot be held.

The acts of production and consumption are coexistent and inseparable. Unlike the other physical goods, the quality of the tourism product when purchased, cannot be tasted or guaranteed by the enforcement of protection law, but must be judged by customers' attitudes, behaviour, and their satisfaction. Therefore, the active participation of both the producer and the consumer is required for the performance of service. Since the production and consumption of the tourism product occur in the host or provider's location rather than in the consumer's home environment, the involvement of a wide range of service sectors is inevitable. These people are, for

example, travel agents, airport ground and flight crew, hotel personnel, restaurant staff, cashiers in shops, tour guides and couriers, and local residents. In this sense, the staffs attitudes and the way they behave in contact with customers is relevant to, and important for product performance and customer satisfaction (Middleton, 2001).

2.5.4.3 'Intangibility'

Intangibility is an important characteristic of the tourism product. As noted before the total product of tourism is service-oriented. The buyers can neither see, touch nor evaluate the product beforehand, nor can they return the product if they are dissatisfied. (French et al. 1995). Most consumers purchase an imagination, they purchase a dream that is intangible (Hall, 1998). For example, a tourist, buying a vacation package to Chiang Mai, Thailand, does not get something tangible that she can take home, look at, and enjoy. Instead, she buys access to some tangible items, such as a seat on a flight, and a hotel booking for a room. But more importantly, she buys the culture and friendliness of Chiang Mai, the beautiful scenery, the magnificent cultural attractions, and the experience of new and different things. In essence, the purchaser buys memories. The only tangible items left after such a vacation may be the pictures she took, some souvenirs, and the receipts for any money spent.

2.5.4.4 'Perishability'

Tourism product, that is, service also has a perishable component which means that the service production is 'typically fixed in time and space and has a fixed capacity t on any day. This means that if service capacity or products are not sold on a

f ;,,

f:

particular day, the potential revenue they represent is lost and cannot be recovered'

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l

(Middleton, 2001, P: 44). In this sense, service capacity is only existent when clients are present.

In terms of travel and tourism services, perishability is directly related to seasonality. Seasonality in the travel and tourism industry means that 'demand fluctuates greatly between seasons of the year' (Middleton, 2001, p. 45). For example, people who live in Europe and in the northern states of the USA are likely to take their holidays in the summer months from June to September because from December to March, it is their wintertime. During these months the weather is generally cold and wet and the period of daylight is short. School vacations and many business year cycles are also based on such seasonal variations (Middleton, 2001).

2.5.4.5 'Interdependence'

When tourists purchase vacation packages, they generally include several products, not just one, in their travel choices. They not only choose attractions at the destination, but also the composite of other products such as accommodation, transport and other facilities such as recreational activities and catering. Therefore, there are many sectors and services involved in the production of tourism and the system resembles a network of relationships linking travel and tourism products at destinations. This requires potential cooperation between the involved organisations (Middleton, 2001 ).

2.5.4.6 'The High Fixed Cost of Service Operation'

Another important characteristic of tourism product is the high fixed cost of service operation. A fixed cost is the capital invested so that the producer 'has to be paid for

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in advance in order . for a business to be open to receive customers' (Middleton, 2001, p. 46). This covers the cost of 'premises' such as annual maintenance, rents, leases and rates, equipment, heating, lighting and other energy, insurances, wages and salaries and social provision for full time employees, management and administration, and marketing promotion. No matter how many customers are on the premises at any given time, travel and tourism service operations must be performed at a high level of fixed cost. As Middleton (2001) notes for example that an airline when operating a flight, which is either 20 percent or 80 percent full, still has the same operating maintenance costs, and airport dues. It pays the same wages to its employees. Thus the fixed costs of service operations are associated with seasonal variations which draw together all service operators' efforts in attempting to stimulate extra demand.

2.6 CONCLUSION

This chapter has demonstrated the concept of the tourism system, as conceptualised in a simple demand-supply framework. The demand side, including the tourist markets, has been described followed by the supply side considered in terms of tourism products and tourist destinations. The demand side, which captures the tourist market features, definition of tourist, factors influencing tourist characteristics and behaviour, tourist perceptions, and the tourist decision process in terms of post-purchase evaluation, are described. The supply side covers the tourism product including the tourist destination, its characteristics, components, and nature of the product.

In the next chapter the definition of the attractiveness of a tourist destination, the

attractiveness, measurement scales. The segmentation-based approach is presented followed by the attributes selected for the judging the attractiveness of a tourist destination. Also, the working research model or conceptual framework, a model of tourist characteristics and the application of Pearce's 'Travel Motivation Ladder,' and operational framework will be presented.

CHAPTER 3

MEASUREMENT OF THE ATTRACTIVENESS OF TOURIST