Tourism Flashcards
What is disposable/discretionary income and how does it relate to tourism?
Disposable or discretionary income is the income one has after they’ve paid all their living expenses… It’s the income they have left over. This relates to tourism because tourism depends on disposable income. If the economy crashes, people do not buy plane tickets or reserve hotel rooms because they have living expenses to pay for.
Explain tourism as an export industry
Export is a product or service that attracts foreign currency, and the idea of tourism is pull people in from outside your borders.
What are tourism satellite accounts
Stats Canada measures tourism and travel through the tourism satellite accounts. They collect data from the accommodations (hotels, B&Bs, hostels, resorts, etc.), transportations (airlines, ferries, trains, cruise ships, etc.), food and beverage (restaurants, night clubs, bars, room service, etc.), travel services (travel agencies, tourist information centres, tour operators, wholesalers, etc.), and recreation and entertainment (festivals, theme parks, museums, etc.) sectors to determine the revenue in tourism.
What is the difference between the 5 sectors of the tourism industry in the course and the 8 recognized in the real world?
Stats Canada only measures the 5 from the course because they are the same on a global scale anywhere in the world. We can easily compare our statistics to that of China or India or Mexico. However, there are 8 sectors that the industry recognizes within Canada that further specify the type of services or products found within the travel industry.
What is a DMO?
DMO stands for Destination Marketing Organization or Destination Management Organization. Examples of these organizations are Travel Alberta, Tourism Calgary, etc.
What are demographics versus psychographics?
Demographics refer to grouping or section ins individuals by age, sex, marital status, family size, etc. Psychographics refer to personality, preferences, values, thoughts.
Why do people use a travel agency?
Best value for travel dollar. Maximum choice. Convenient one-stop shopping. Customer advocates. Expert guidance. Personalized service. Professional advice. Time saver. Trust. Unbiased information.
Why do people travel?
Business Leisure Visit friends or relatives Cultural experience Relaxation Etc.
What is supply and demand?
Supply and demand is what the travel industry runs off of. Supply is providing the product that the consumer demands. The more demand for something, the more supply one needs, although it usually has the opposite effect. The birds and the bees of the travel business.
What do consolidators do?
Consolidators buy distressed products for cheaper than they originally went for… soon to be obsolete products.
What is travel incentive?
Unique experiences to be own that the general public can not buy themselves. Incentive travel houses go out and buy tickets, accommodations, transportation, etc. for a special event and sell it to another company, like McDonald’s or RBC to be won by customers.
What does OTA stand for?
Online travel agency.
What are intermediaries?
They are middle men between the product and the consumer. Ex, consolidators and wholesalers.
What is MNE?
Motivations, needs and expectations.
What is a distressed product?
A soon to be obsolete product.
What are the revenues seen in traditional travel agencies today?
1) service fees
2) commissions
3) overrides
4) insurance
