The law of supply and demand in a travel agency. Supply and demand in the market
3. Supply and demand on the tour market. and hotel services.
The demand for travel to a particular tourist region is a function of a person's propensity to travel and the corresponding magnitude of resistance to communication between the travel origin and the destination:
(inclination, resistance)
Travel propensity is a person’s predisposition to travel and tourism. Here we need to take into account psychological and demographic (socio-economic status), human variables, and marketing effectiveness.
Resistance - economic, cultural distance, too high cost of travel, poor quality of service, seasonality effect.
Factors influencing the amount of demand:
1) the number of buyers of the tourism product;
2) cash income of buyers;
3) assessment of prospects for future income;
4) free time budget;
5) tourist tastes of travelers;
Tourist offer
- this is the ideal readiness and real opportunity of a commodity producer to produce and supply a certain amount of tourist goods to the market.
Factors influencing the amount of demand:
1) number of tourism suppliers;
2) the number of selling companies;
3) the level of efficiency in the production of tourism goods and services;
4) level of scientific and technological progress;
5) taxation system;
6) prices for factors of production;
7) assessment of demand prospects and future income.
An increase in the market price for a tourism product, other things being equal, reduces the volume of demand; on the contrary, a decrease in the market price increases the volume of demand for a tourism product. At the same time, the volume of supply of tourism goods and services increases when prices increase and decreases when prices decrease.
The dependence of supply and demand on price can be represented graphically: the demand graph looks like a downward curve, and the supply graph looks like an upward curve. At the point of intersection of the supply and demand curves, market equilibrium is achieved. The price at which this occurs is called equilibrium price.
Price elasticity of demand shows by what percentage the demand for a given product changes if its price changes by 1%. If this indicator is greater than 1, then price demand is elastic; if this indicator is less than 1, then price demand will be inelastic.
When demand is elastic, a fall in price will result in a simultaneous increase in demand and an increase in sales, and will therefore result in higher total revenue. And if the price rose, then total revenue would fall, since with elastic demand, an increase in prices is accompanied by an even greater drop in demand and a decrease in sales volume.
With inelastic demand
falling prices reduce total revenue (total revenue increases more slowly compared to the rate of price decline).
If elasticity is 1
Then the rate of change in prices and total revenue is adequate.
Income elasticity of demand is the sensitivity of demand to changes in consumer income. It is defined as the percentage change in income at constant prices.
The income elasticity of demand can vary from zero to infinity. When income elasticity is between zero and one, demand is said to be income inelastic, meaning that regardless of changes in income, demand remains more or less stable.
If the elasticity is greater than one, then demand is income elastic, which means that as family income or the income of a certain market segment increases and travel prices remain constant, the demand for tours will increase.
Elasticity can be equal to unity.
4. Fixed assets of enterprises as an economic category, characteristics, composition and structure of fixed production assets, ways of their rational use.
FIXED FUNDS!
The fixed capital of the tourism sector is, in essence, the material and technical base (MTB) of the industry. It primarily includes the hotel and restaurant industry, tourism and recreation centers, boarding houses, sanatoriums, etc. In some cases, MTB is considered from a broader perspective - at the level of the tourist complex. In this regard, this includes transport, food outlets, cultural and historical sites and other divisions of the tourist complex.
In any case, in addition to accommodation, food and leisure facilities, the fixed capital of the tourism sector should also include the recreational environment with the presence of water, forest, and relief features in it.
A special group is represented by MTB tourism firms and regional base enterprises (rest homes, tourist centers, etc.). The fact is that sometimes it is difficult to determine where to classify individual office items: to fixed or working capital, to the active or passive part of fixed assets. Let's turn to the theory of the issue. Fixed assets
2.1 Tourist demand and supply for tourism products
The demand for travel to a particular tourist region (D) is a function of a person’s propensity to travel and the corresponding magnitude of resistance to communication between the starting point of travel and the destination: D = F (propensity, resistance).
Resistance is generated by economic distance, sometimes cultural distance, the too high cost of a tourist trip, poor quality of service, and the seasonality effect.
Tourism supply is the ideal readiness and real ability of a commodity producer to produce and supply to the market a certain amount of tourist goods.
The supply of a tourism product depends on many factors: the number of tourism suppliers (accommodation, food, entertainment, and so on); number of selling companies; level of efficiency in the production of tourism goods and services; level of scientific and technological progress; tax systems; prices for factors of production; assessing demand prospects and future revenues.
The components of a given tourism region's offer can be broken down into 4 main categories:
1) natural resources;
2) infrastructure;
3) the material and technical base of tourism, which includes: tour operators and travel agents, accommodation enterprises, catering and trading enterprises, motor transport enterprises, etc.;
4) cultural resources of hospitality.
It is advisable to consider each of these elements in more detail.
The natural resources of each tourist region, available for tourist use, form the basis of the offer. The basic elements of this category include air and climate, physical features of the area (topography), flora, fauna, water resources, beaches, natural monuments, etc. The quality of natural resources must be preserved in order to maintain demand. In essence, tourism is very sensitive to the quality of use of natural resources.
Infrastructure consists of underground and above-ground service structures, including: water supply, sewerage, gas pipelines, communication systems, as well as other service facilities, such as highways, airports, highways, railways, parking lots, parking lots, ports, train stations, etc. Infrastructure is very important for the successful development of tourism. These structures must correspond to the intensity of use. For example, airport runways should be built to accommodate the future use of the latest types of jet aircraft, so that costly renovations are not necessary later.
The material and technical base of tourism is the basis for the development of organized tourism, as it creates all the necessary conditions for providing tourists with a full range of services (accommodation, meals, transportation, excursions, and so on). The material and technical base of tourism includes: tour operators and travel agents, accommodation enterprises, catering and trading enterprises, transport enterprises, excursion bureaus and the like.
Travel agencies and accommodation facilities
There are 30 travel agencies and 18 hotels in Volgograd. Basic tourist preferences. Volgograd travel agencies offer hiking, boating, cycling, horseback riding, and skiing trips lasting 1-3 days. “Cossack Circle” excursions have been developed for schoolchildren (visiting the “Cossack Kuren” museum, visiting the 13th lock of the Volga-Don Shipping Canal and the monument to E.V. Vuchetich “Union of Fronts”); "Don Stories. Travel to Sholokhov places" and "They fought for the Motherland"; “Pilgrimage tour” (Volgograd - Church of the Resurrection of the Lord - Church of the Intercession of the Virgin - recreation center "Don Dawns" - Spaso-Preobrazhensky Monastery - Volgograd), etc.
Excursions around Volgograd are dedicated, first of all, to the heroic past of this great city. Here are just a few of them: “The Hero City of Volgograd”, “Here Rodimtsev’s guardsmen stood to the death”, “On the battle lines of the 64th Army”, “Defense of Lyudnikov Island”, “Let us call the heroes by name”, “The saved world remembers” ", "Soldier's Field".
Business plan for organizing a barbecue area near the Ob reservoir, Ordynsky district, Novosibirsk region
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FEDERAL AGENCY FOR EDUCATION OF THE RF
GOU VPO
UFA STATE ACADEMY OF ECONOMICS AND SERVICE
Course work
Factors of tourism product supply
Completed by: student SD-32 Fedosova K.V.
Checked: xn. assistant professor. Rakhmadulina Z.B.
Ufa – 2009
Introduction………………………………………………………………………………3
Section 1 Concept of tourist offer……………………………..5
Section 2 Life cycle of a tourism product……………………….8
Section 3 Supply factors………………………………………….10Section 4 Structure of the tourist offer……………………………13
Section 5 Supply and its curve……………………………………………………15
Section 6 Main factors affecting the global economic crisis on the supply of tourism products……………………………18
Conclusion………………………………………………………………………………...25
References……………………………………………………………27
Introduction The tourism sector is a branch of the national economy interconnected with other industries. Tourism is a market for tourist services, and the economy of any market, including the tourism market, is determined by supply and demand. The tourist offer in general is presented as a tourism object. This means that the tourist supply includes everything that can be used to satisfy tourist demand: hotels, restaurants, entertainment facilities, climate, landscape, etc. Thus, the tourism offer covers different elements, and in order to optimize management, they need to be systematized. The relevance of systematizing supply factors in the tourism market is explained not only by the abundance of services offered, but also by the development of the tourism industry in the context of the Global Economic Crisis. Within the framework of this problem, the features of not only the proposal are revealed, but also the prerequisites for the formation of the tourism product itself. To subjects of the tourism industry, namely operators, agents, hotels, etc. it is necessary to create a product that could satisfy not only the needs of consumers, but also the company’s own goals and objectives in its segment. This work is devoted to the factors of tourism product supply. The main goal of the work is the importance of supply factors in the formation of the tourism product. To achieve the goal, the research set the following tasks: u to define the basic concepts of the tourism offer, such as tourism product, tour operator, travel agent, buyer, etc.; u identify the role of the tourism product life cycle in market supply planning strategies; u identify supply factors that contribute to maintaining the stability of a given product on the market; u to achieve systematization of ideas, it is necessary to characterize the structure of the tourism offer; u demonstrate the law of supply on graphs; u In the form of practical application, identify the impact of the Global Economic Crisis on the supply of tourism products Section 1 Concept of tourist offer
A tourist offer is a set of services and products that are presented for consideration by a client wishing to make a tourist trip.
The object of the tourism offer is the consumer - the tourist. Therefore, when planning and developing a package of services, it is necessary to identify the real needs of the tourist and focus the offer on these needs. The subjects of the tourism market are: - tour operators - legal entities or individuals involved in the production, promotion and sale of tourism products (sometimes called tour organizers in international practice); - providers of tourism services (contractors) - legal entities or individuals directly providing accommodation, food, transport, excursion and other services included in the tour package - these are hotels, restaurants, transport companies (carrier companies), cultural enterprises (parks , museums, theaters, etc.), sports (clubs, stadiums, etc.), medical and recreational enterprises, etc. They act as domestic and foreign counterparties supplying tour operators with services included in the tour; - travel agents - legal entities or individuals involved in the promotion and sale of tourism products, intermediaries; - consumers of a tourism product - any individuals using, purchasing or intending to purchase tourism services (tourist product) for personal needs. Sellers of tourism services are legal entities or individuals, participants in the market process, assigning ownership rights to a service (service package) to the buyer in exchange for money (tour operators and travel agents). Buyers are legal entities or individuals, participants in the market process, acquiring ownership rights to a service (service package) from the seller in exchange for money. The tourist offer must be reliable and truthful, since subsequently, when making a trip, the tourist will certainly compare what he saw in the travel agency and what exists in reality. The degree of correspondence between the advertised and the real should be maximum, as otherwise the tourist will be disappointed. The contract for the provision of tourist services is an integral part of the tourist offer. All the basic conditions for purchasing a tourist trip are stipulated here - the scope of services, cost, terms, responsibility of the parties, safety guarantees, tourist insurance, etc. Rice. 1 Scheme for the formation and implementation of a comprehensive travel service - tour Section 2 Life cycle of a tourism product The life cycle of a tourism product (introduction to the market, growth, maturity, saturation, decline) determines its attractiveness. Due to rapid changes in people's lifestyles and technological development, the life cycle of individual tourism products has become shorter than before, so the life cycle concept plays an important role in the planning strategy of market supply. Each stage of the life cycle also involves certain tasks for the development of the tourism offer: - the stage of introducing the product to the market - is characterized by high costs (costs of stimulating demand - advertising a new service to stimulate initial demand), slow growth in sales volumes. At this stage of the life cycle of a tourism product, there is a large percentage of failures and, due to the high costs of introducing a tourism product to the market, there is still no profit; Figure 2. Life cycle of a tourism product
Growth stage - characterized by an increase in profits and sales if the new product is in demand in the market. However, rising profits can make the market attractive to competitors. The travel agency's costs for sales promotion remain high, but here the emphasis is on motivating the targeted selection and purchase of a range of tourist services, and not on motivating the tourist to buy a tour. Due to increased sales volumes, prices for tourism products may decrease; - maturity stage - the stage of implementation of a mature product, i.e. firmly established in the market. Its sales rate may continue to increase, but at a slower rate than during the growth stage. Travel agencies are trying to find ways to maintain their market share. Ski resorts are the most suitable example of a mature product. After several years of increasing sales of tourism products, sales growth is gradually slowing down, resorts are making attempts to maintain their market share and diversify their offer (for example, through alternative tourism); - saturation stage - characterized by the highest sales volumes, the product penetrates the market as much as possible. Mass production and provision of services, the use of new technologies for working with consumers, and the intensification of advertising activities help to reduce the price level and make the tourism product more accessible to everyone;
- stage of decline - characterized by a reduction in demand for the product. Some tourism products remain at the saturation stage for several years, while others become obsolete over time and new tourism products are introduced to the market to replace old ones. As demand and profits fall, advertising costs are reduced, and firms that cannot withstand competition leave the market.
For example, in the early 1970s. There was an increase in demand for tourist trips to the resort areas of Lake Baikal. An active advertising campaign was carried out, which resulted in an increase in attendance at this resort several dozen times; Accordingly, the hotel infrastructure began to develop. In the 1990s. interest in Lake Baikal decreased significantly, which was primarily due to the environmental disaster and socio-political changes in Russia. Note that many tourist offers are characterized by a transition from a stage of decline to a stage of growth, which is due to the economic development of the territory, environmental improvement, reorientation to other categories of tourists and other factors. Section 3 Supply factors 1. Firms' offers should be designed for a wide range of consumers with different income levels in order to cover as large a market share as possible. Therefore, product planning should be carried out taking into account how consumers would like it to be. Creating the “right product” is not an easy task because consumer needs, requirements and desires are constantly changing; competition affects the product life cycle in such a way that products that are successful at a given stage of the life cycle may decline or die. 2. The management of the tourist organization must, while maintaining
low level of costs, achieve increased production
telnosti. Usually the following methods are used above
research on the effectiveness of organizations: - increasing the professional level of personnel. For example, the management of the Travel Corporation (USA) partly solves the problem through strict selection of qualified candidates and improving the employee training system; - increasing the range of services offered due to a slight decrease in the quality of service; - “industrialization of service” by improving technical equipment and standardizing the process of providing services (for example, the use of standardized information systems for ordering tours and booking hotel rooms by tourist operators and agencies) - increasing the efficiency of service; - encouraging consumers to self-service (providing freedom to choose additional services, food systems, excursion services, vehicles, etc.); - introduction of new technologies, which gives impetus to productivity growth in the service sector. Companies that use websites to attract consumers reduce the workload of their staff, gain valuable customer data, and increase the value of their business. For example, by creating an online knowledge base of answers to the most common questions consumers have, a travel company can reduce the number of direct inquiries by 70%. 3. Tourist supply is the ideal readiness and real ability of a commodity producer to produce and supply to the market a certain amount of tourist goods. The supply of a tourism product depends on many factors: the number of tourism suppliers, the number of selling firms, the level of efficiency in the production of tourism goods and services, the level of scientific and technical progress, the taxation system, prices for production factors, assessment of demand prospects and future income. The components of the offer of a particular tourist region can be divided into 4 main categories: - the natural resources of each tourist region, available for tourist use, form the basis of the offer. The basic elements of this category include air and climate, physical features of the area, flora, fauna, water resources, beaches, etc. The quality of natural resources must be preserved in order to maintain demand. In fact, tourism very sensitive to the quality of use of natural resources. -infrastructure consists of underground and above-ground service structures, including: water supply, sewerage, gas pipelines, as well as other service facilities, such as highways, airports, highways, train stations, etc. Infrastructure is very important for successful development tourism. These facilities must match the intensity of demand. For example, airport runways should be built to accommodate the future use of the latest types of jet aircraft, so that costly renovations are not necessary later
- material and technical base tourism is the basis for the development of organized tourism, since it creates all the necessary conditions for providing tourists with a full range of services. Included in the material and technical base tourism includes: tour operators and travel agents, accommodation enterprises, catering and trading enterprises, motor transport enterprises, excursion bureaus, etc. Even a well-developed material and technical base will be useless if the tourist does not feel welcome. The development of cultural hospitality resources is a critical factor in tourism. These resources are all the cultural wealth of the tourist area, which provides opportunities for quality services for tourists. The concept of “hospitality resources” includes courtesy, courtesy, friendliness, sincere interest, desire to serve and other ways employees express warmth and hospitality tourism and local residents of the host region. In addition, cultural resources include fine arts, literature, history, music, dance, sports.
Section 4 Structure of the tourist offer
The tourism offer consists of primary (initial) and derivative offers.
The primary offer attracts tourists with its natural benefits and is created not only for tourist purposes. It is distinguished by the following characteristics:
Natural features of the country (geographical location, climate, topography, flora and fauna);
Socio-cultural factors (culture, traditions and customs, buildings of global significance, hospitality);
General infrastructure (roads, communications, gas, water and electricity supplies, wastewater treatment plants, cultural and leisure institutions).
The derivative offer consists of elements that are created exclusively for tourist use. As part of the tourism offer, one can distinguish tourism infrastructure and tourism superstructure.
Tourist infrastructure is a set of facilities that provide recreation and entertainment for tourists, due to the development of tourism. It has much in common with the general infrastructure (primary supply): if tourists constantly arrive in a certain area on vacation, then the capacity of the systems designed to support the livelihoods of only the local population will not be enough for everyone.
The tourist superstructure is a set of economic, cultural and historical objects that complement the tourist infrastructure, located on the tourist territory and increase the tourist’s satisfaction with the trip.
The classification of a proposal as original or derivative is based on what features suitable for use in tourism already exist and what should be created to attract tourists.
Route - the route followed by a tourist, indicated by a list of all geographical points and places, indicating the sequence of visiting them during the trip, as well as the types of transport used by the tourist to move between stopping points (stays) on the route. The starting and ending points of the route are the starting and ending points of the journey. The beginning of the route is the place where the first tourist service specified in the contract is provided to the tourist. The end of the route is the place where the last tourist service is provided.
Depending on the movement along the route, the route differs:
A linear route is a route, the beginning and end of which occur at different geographical points of stay, for example Volgograd - Moscow.
A circular route is a travel route, the beginning and end of which occur at one geographical point of stay, for example, the “Golden Ring of Russia” tour: Moscow - Sergiev Posad - Rostov - Yaroslavl - Kostroma - Ivanovo - Suzdal - Vladimir - Moscow;
Radial route - a travel route, the beginning and end of which occur in one geographical point of stay, located in which, the tourist travels to other points of stay, each time returning to the starting point of the journey;
- combined route - a route that contains elements of a linear, circular and radial route in one or another combination.
While driving along the route, various vehicles called intra-route vehicles can be used.
A tourist travel (stay) program is a plan of activities indicating the dates and times of stay at stopping points along the route, in a hotel, visits to places of tourist interest for the purpose of exploring them (excursions), meals, as well as moving along the route using the intra-route tickets specified in the program Vehicle. The stay program (standard or individual) is a plan for the implementation of tourist services sold to the traveler, specified in the contract. Additional services can be provided for a fee at the tourist's responsibility (unless otherwise specified in the contract).
Length of stay (trip) is an important statistical indicator. According to international rules, the maximum period after which a visit is no longer considered a tourist visit is 1 year, according to Russian legislation - up to 6 months. The minimum duration of stay or trip (24 hours) is used to distinguish between tourists and excursionists - one-day (non-overnight) visitors. Duration of visit (stay or trip) can be used to indirectly estimate tourism expenditure, especially if the average duration is determined for group travel.
Section 5 Supply and its curve
Supply is a set of tourism products with certain prices that are on the tourism market and that manufacturers can or intend to sell.
The supply characterizes the economic situation in the tourism market on the part of manufacturers and sellers.
As a rule, the proposal is depicted in the form of a table or graph. However, if the demand schedule establishes the relationship between prices and the quantity of tourism products that tourists wish to buy, then the supply schedule establishes the relationship between market prices and the quantity of tourism products that tourism producers wish to produce and sell.
Let, for example, let the ordinate axis be designated as the movement of the price of a tourism product (P), and the abscissa axis (Q) serve to indicate the quantity of a tourism product on the market. The supply at a price of $500 per unit of tourism product will be 18 units of product, at a price of $400 - 16 units, at a price of $300 - 7 units and at a price of 100 - 0 units of tourism product. The supply schedule in this case will take the form of the supply curve S
Rice. 3. tourist product supply schedule
Unlike the demand curve, the supply curve generally slopes upward to the right. The existing relationship between supply and price is expressed in the law of supply.
The law states that the volume of supply of a tourism product increases when the price rises and decreases when it decreases.
By analogy with demand, one should distinguish between a change in supply and a change in the volume of supply. The volume of supply in the tourism market changes when only the price of the product changes. A change in supply occurs when determinants (factors) that were previously considered constant change.
A change in the quantity supplied is expressed graphically as a “movement along the supply curve.” A change in the supply itself is reflected by a shift to the left or right of the supply curve, depending on its determinants of supply, which include: changes in prices for other tourism products; changes in prices for tourism resources; changes in taxes, subsidies; change in expectation; change in the number of suppliers of tourism products.
Thus, with a change in price from P1 to P2, this movement occurs along the SS curve, which shows an increase in supply volume from Q1 to Q2 (Fig. 2)
Rice. 4. Schedule of changes in supply volumes
Moreover, such a movement occurs only in the case when all factors except price are constant.
However, supply is influenced by factors other than price. As a result of their influence, the supply curve shifts. This does not mean a change in volume, but in the proposal itself, its character. The degree of change in the volume of supply depending on the increase in price characterizes the elasticity of supply. A measure of this change is the elastic supply coefficient, calculated as the ratio of supply volume (in %) to price growth (in %).
Elasticity of supply is a measure of the relative change in supply (Q) in accordance with the relative change in market price. If the quantity of products offered on the tourism market (Q) remains unchanged, then supply inelasticity occurs. If the slightest decrease in the price of a tourism product (P) causes supply (Q) to decrease to zero, and the slightest increase (P) ensures an increase in supply, then absolutely elastic supply occurs.
The elasticity of supply changes under the influence of the already mentioned determinants.
As a rule, the increasing limitation of tourism resources used in the acquisition of tourism products leads to a decrease in the elasticity of supply.
Section 6 Main factors affecting the global economic crisis on the supply of tourism products.
Firstly, the global financial crisis, which affected all spheres of life. The tourism industry was no exception. Traveling is not the first necessity and need of a person, which means it’s not so difficult to give it up. First of all, the crisis will hit the middle class, because it has always been the main stratum of actively traveling. Mass tourism will also suffer quite a bit from the crisis. Already prices for long-distance destinations have increased by 10-40% compared to last year. And all because of the rising cost of flights. If last year, for example, you could fly to Bangkok for $500, now a seat in economy class costs at least $1,100. On average, on long-distance routes, cheap tours have risen in price by 2 times or more, in expensive segments the rise in price was 15-20%, Kommersant reports.
The business segment of the tourism industry will also suffer losses. One can agree with the opinion of Alexey Krylov, head of the legislative commission of the Association of Tour Operators of Russia (ATOR), who writes: “The number of business tourists will decrease, which is directly related to the reduction of personnel in many companies. The hardest thing will be in the corporate leisure segment. But in my opinion, the corporate segment will suffer mainly next year, because... This year everything has already been sold out in advance.
Legislation
According to the editors of the magazine “Tourism. Practice. Problems. Prospects,” Russia may adopt bills that could practically destroy the tourism market. Especially in light of the ongoing financial crisis. Amendments to the Federal Law “On the Fundamentals of Tourism Activities in the Russian Federation” are being discussed in the State Duma. This applies to financial guarantees, or rather their increase, for tour operators to 100 or 150 million rubles. Now there are still disputes about the size of financial guarantees, in common parlance FIGs, and if they are increased by 10-15 times, then this may not lead to a strengthening of the market due to the fact that small and medium-sized travel agencies, for which the proposed FIGs are unthinkable, will leave from the market, but its monopolization. Monopolization will lead to a decline in competition. And the latter, in turn, will lead to price inflation, which will continue to rise during the crisis. Perhaps this will lead to higher quality tourism products.
In addition, Rostourism may receive the right to exclude from the Unified Federal Register of Tour Operators companies that have lost two legal disputes with clients. And if the first innovation removes small and medium-sized travel agencies from the market, the second will hit large operators, who face dozens of lawsuits a year and without breaking the law.
International relationships
International relations have a huge impact on the supply of tourism products. An example of this is Thailand, where tens of thousands of foreign tourists are stuck at its two largest airports, blocked by the local opposition in late November. This has become a real headache for Russian tour operators. The problem was resolved by the Constitutional Court of this country, releasing the current prime minister from office on December 2. After that, the oppositionists, satisfied with the decision of the Constitutional Court, vacated the airports. The first flight at Bangkok International Airport was accepted on December 3, which the ITAR-TASS news agency reported among the front-page news. During the “hottest” days of the political period, the sale of tours in the Thai direction practically ceased; the drop in demand was reflected in the supply and their sales are now resuming. Russian tour operators have admitted that the financial crisis has affected their activities. As a result of the crisis, demand for tourism services has fallen sharply - by a total of 30%, since people are afraid to spend money on trips during the crisis, said Sergei Shpilko, president of the Russian Union of Travel Industry.
By the way, if, as a result of the crisis of 1998, many Russians who decided to give up traveling abroad reoriented themselves to traveling around Russia, now this is unlikely to happen, since domestic tours are often equal in price, or even more expensive than foreign ones. Against the growing backdrop of fear of a global financial crisis, the Russian and global tourism market is suffering mandatory losses in such a situation. A decrease in the number of tourists vacationing on credit, a cessation of construction of new tourist complexes, a drop in the volume of business tourism - these are the possible consequences of the financial crisis for the tourism industry. It is expected that the segment of business and corporate tourism will suffer the most due to the fact that customer firms will reduce so-called social expenses, including on vacations, corporate trips and incentive tours.
Meanwhile, the research company Euromonitor International published a report on the latest trends in the development of the global tourism industry. In the context of a growing financial crisis, the supply of those types of recreation that were previously aimed at a narrow circle of people is gradually becoming widespread: middle-class consumers are beginning to choose budget types.
Supply Formations Airlines have already reported a clear decline in passenger traffic. Hotel occupancy levels are falling, and tourism managers are demanding new concessions on already concluded contracts. Cancellations are increasingly common even at four- and five-star hotels that previously seemed immune to economic problems.
Inflation.
Growing inflation in Russia has brought down the markets of the most popular coastal resort countries in our country, such as Turkey and Greece. Tour operators have a shortage of funds. In addition, large companies need to buy out guaranteed blocks of seats in hotels and airplanes in advance, and for this they usually use credit funds. Today it will be extremely difficult to get loans, especially on acceptable terms.
1. firstly, at present, of the four main factors influencing the development of tourism (the economy, the exchange rate, the weather and the marketing system), two (the economy and the exchange rate) are undergoing fundamental changes that do not always have a favorable impact on the pace tourism development;
2. secondly, as a result of changes in the international economic situation, according to data from the Russian Association of Travel Agencies (RATA), it is assumed that the number of overnight stays for tourists during the winter period of 2008/2009. in Russia will decrease by 2.4% compared to the previous year. And in the summer of 2009, their number may decrease by another 3.5%, and in general for the entire 2009 to 10-15%. However, today, by analyzing incoming data from tourism markets and the results of booking/sales of tour packages through various channels of the agent base, we can come to the conclusion that in reality these figures will be even more significant;
3. Thirdly, there is a so-called time lag effect of the impact of the financial crisis on the tourism economy. Currently, the level of occupancy and bookings of hotels in Russia is still encouraging and inspires some optimism, but the expected consequences of the slowdown in economic growth will be more noticeable in 4-6 months, including for the tourism industry. As a result, negative trends may appear in the second half of winter, and the most noticeable and painful blow to the industry will occur in the summer of 2009;
4. fourthly, traditionally, in times of crisis, first-class goods and services are subject to the strongest negative impact associated with the reorientation of some consumers to a lower price product group. For this reason, the occupancy level of individual first-class hotels may be even lower than the industry as a whole, thus forcing management and management to review pricing policies, marketing programs and conscious reorientation to other target consumer segments;
5. fifthly, undoubtedly, taking into account changes in the current market situation, the process of unrestrained and carefree consumption of goods will be replaced by a more moderate and planned process of consumption, including tourist services. This change in consumer purchasing behavior will begin to manifest itself from mid-winter and will become most noticeable by next summer.
1. Plans regarding price increases should be carefully analyzed.
2. Dumping or temporary price reduction should be avoided. But on the other hand, it makes sense to implement measures aimed at attracting new market segments using tactical, innovative and special unique offers, for example, during the low season or off-season in tourism.
3. It is necessary to determine the strengths and weaknesses of the development of your travel company in the current economic situation. Think about it: if the situation worsens, what groups of tourists can you lose and are there still market segments that are not covered by your attention? Do you have current debt obligations? Is this the best time to increase spending, apply for a new loan, or build new facilities?
4. Determine your goals, objectives and problems of business development, taking into account local conditions of economic development and the real consumer segment.
5. Remember that travel and tourism are complementary categories. This means that your business will depend on the development of a large range of related industries and industries. For example, if the restaurant business in your region is experiencing losses, this means that the number of people staying in the city overnight will decrease, therefore, the hotel industry will also experience difficulties. And if hotels are not occupied, tax revenues to the local budget are reduced, which affects the development of the region as a whole.
Conclusion
Despite the theoretical basis of this work, in a crisis, the problem of forming the supply of tourism products is not only relevant, but also one of the fundamental ones. A competent assessment of all determinants of supply will serve as a stabilizing factor and a cure for ruin and disharmony. The importance of supply factors in the formation of a tourism product is the purpose of the study. The assigned tasks were also completed: u Using the basic concepts of the tourism sector, the main constants of the tourism offer, such as travel agents, tour operators, and buyers, were identified. Tour operators directly form the product, which means they are the ones who determine the offer; travel agents implement it, being the link between the operator and the buyer, who in turn plays the role of the main censor and consumer and determines demand. u Demonstrating the stages of the life cycle of a tourism product, it forms a strategy for the formation of services, and also predicts the growth and decline of demand, which makes it possible to regulate the supply system. u When determining supply factors, their conditional functions were identified as stimulants for creating the “right product”, as well as the rational production of in-demand services or goods. u Describing the structure of the tourist offer, special attention was paid to the components of the tourist infrastructure, as a set of objects providing recreation and entertainment; tourist suprastructure, as a set of economic, cultural and historical objects that complement the tourist infrastructure, located on the tourist territory and increasing the tourist’s satisfaction with the trip.
u Having examined the supply curve, a clear connection was determined between market prices and the amount of tourism products that producers of tourism services want to produce and sell. The relationship between supply and price is also expressed in the law of supply.
u In order for the theoretical foundations of supply to find practical application, the work presents analysis and forecasts of the impact of the crisis as a supply factor. The basis was taken from articles by researchers and students Saratov State University named after N.G. Chernyshevsky.
Summing up, I would like to once again focus on the role of factors in the formation of the tourist offer. Tourism is more dependent on demand, both the global economy and politics, than any other sectors of the economy. Therefore, it is necessary to conduct marketing research, analyze the market, and in times of crisis, do this more often because the situation is unstable and supply factors will change. Those companies whose basis is a deep analysis of factors that can influence supply have a higher chance of withstanding the crisis.
List of used literature
17. The concept of elasticity of demand for a tourism product
For the development of the tourism industry in general and tourism firms in particular, it is important to know the rate of change of three economic quantities: price, demand and supply. The concept of “elasticity of demand” helps with this.
Price elasticity of demand shows by what percentage the demand for a given product changes if its price changes by 1%. If this indicator is greater than 1, then price demand will be elastic; if this indicator is less than 1, then price demand will be inelastic.
The coefficient of price elasticity of demand is calculated using the formula:
where ∆Q is the percentage of growth in the volume of purchased goods Q;
∆Р - percentage drop in price Р.
Obviously, the price elasticity of demand varies at different parts of the demand curve. The absolute value of elasticity is lower at high prices and higher at low prices for the tourism product. As shown in Fig. 3.6, three sections can be distinguished on the demand curve: where the elasticity is greater than 1, equal to 1 and less than 1. Demand is elastic above the price level P A and inelastic below the price level P A.
Rice. 3.6. Demand and Elasticity Curve
Price elasticity and total revenue from the sale of a tourism product are directly related, since price elasticity of demand characterizes the degree of dependence of the Volume of purchased goods Q on fluctuations in market prices P.
The conclusion from the above is obvious. Firstly, one can judge the elasticity of demand only by knowing changes in prices and volumes of demand. Secondly, raising prices cannot be profitable and useful with elastic demand, since total income decreases in the same way as the number of customers. Similarly, if demand is inelastic, then it is advisable not to reduce prices, since this will result in a decrease in income and there will be more customers.
So, a change in price causes a change in quantity demanded. But there are also non-price determinants of demand, which include: the level of income of consumers of tourism goods and services, the number of consumers, quality of services, fashion and tastes. They also influence demand.
Let us consider the income elasticity of demand, since income growth has an important impact on increasing the demand for tourism products at any given price. Thus, the income of potential consumers and demand are directly related. Income Elasticity of Demand is the sensitivity of demand to changes in consumer income. It is defined as the percentage change in income at constant prices.
The income elasticity of demand can vary from zero to infinity. When income elasticity is between zero and one, demand is said to be income inelastic, meaning that regardless of changes in income, demand will remain more or less stable. If the elasticity is greater than one, then demand is income elastic, which means that as family income or the income of a certain market segment increases and travel prices remain constant, the demand for tours will increase. Elasticity can be equal to unity.
Low quality products are an exception to this rule. In this case, there is no direct relationship between income and the quantity of products for which there is demand.
18. Characteristics of the tourism product offer
Tourism supply is the ideal readiness and real ability of a commodity producer to produce and supply to the market a certain amount of tourist goods.
The supply of a tourism product depends on many factors: the number of tourism suppliers (accommodation, food, entertainment, etc.); number of selling companies; level of efficiency in the production of tourism goods and services; level of scientific and technological progress; tax systems; prices for factors of production; assessing demand prospects and future revenues.
The components of a given tourism region's offer can be broken down into 4 main categories:
1) natural resources;
2) infrastructure;
3) the material and technical base of tourism, which includes: tour operators and travel agents, accommodation enterprises, catering and trading enterprises, motor transport enterprises, etc.;
4) cultural resources of hospitality.
It is advisable to consider each of these elements in more detail.
The natural resources of each tourist region, available for tourist use, form the basis of the offer. The basic elements of this category include air and climate, physical features of the area (topography), flora, fauna, water resources, beaches, natural monuments, etc. The quality of natural resources must be preserved in order to maintain demand. In essence, tourism is very sensitive to the quality of use of natural resources.
Infrastructure consists of underground and above-ground service structures, including: water supply, sewerage, gas pipelines, communication systems, as well as other service facilities, such as highways, airports, roads, railways, parking lots, forging steam, ports, train stations, etc. Infrastructure is very important for the successful development of tourism. These structures must correspond to the intensity of use. For example, airport runways should be built to accommodate the future use of the latest types of jet aircraft, so that costly renovations are not necessary later.
The material and technical base of tourism is the basis for the development of organized tourism, as it creates all the necessary conditions for providing tourists with a full range of services (accommodation, meals, transportation, excursions, etc.). The material and technical base of tourism includes: tour operators and travel agents, accommodation enterprises, catering and trade enterprises, motor transport enterprises, excursion bureaus, etc. Based on economic elements, the objects of the material and technical base are divided into fixed assets and circulating production assets (low-value and wearable items).
By type of ownership, material and technical facilities are divided into their own (belonging to a given tourism business entity), leased by this entity from legal entities (for example, renting places in municipal hotels) and rented from individuals.
One of the main and most significant elements of the material and technical base of tourism is accommodation facilities.
The most popular accommodation facility among tourists today is a hotel. Today there are more than 30 classification systems for accommodation facilities in the world. Each country has adopted and operates its own national standards. The most famous star system. It is especially common in Europe. Despite attempts to develop unified international quality standards, a unified system still does not exist. In 1989, the WTO developed the document “Interregional harmonization of hotel classification criteria based on classification standards approved by regional commissions,” which can be considered as an international standard that is purely advisory in nature.
An attempt to introduce a unified classification system for accommodation facilities in Russia was implemented by the Moscow government in 1993. The standards currently in force in Russia were introduced in 1995 simultaneously with the certification procedure for tourist services and hotel services. The current system applies only to hotels and motels that are classified into categories from 1 to 5 stars. Independent non-profit organizations accredited by the State Standard of the Russian Federation are directly involved in determining the category of hotels. There are about 50 of them on the territory of Russia, and approximately 15 in Moscow. It is generally accepted that the classification of hotels in Russia is voluntary. This service is quite expensive. In such a situation, it often becomes economically unprofitable for a hotel to officially confirm the level of its service.
The average standard room price for a five-star Russian hotel is $230-280, a four-star hotel is 90-150, and a three-star hotel is 30-60. According to practitioners, the niche of middle-class hotels in Moscow is almost unoccupied. After the expensive hotels come the "bedrooms". There are only a few exceptions - this is the Sayany hotel and the Molodezhny hotel complex. The Moscow government has set the task of turning the city into an international tourist center and ensuring that by 2005 it receives 5 million tourists annually. The city has a tourism and hotel industry, which provides the capital's budget with approximately 10% of its income. A network of small hotels (up to 100 beds), cheaper and more comfortable, is being created, since the demand for tourist-class hotels significantly exceeds the available capabilities.
The structure of the modern accommodation market is determined, along with hotel enterprises, by the so-called non-traditional or additional accommodation facilities that have emerged and are successfully developing over the past 30-40 years. These include apartments, holiday homes, campsites, private room rentals, yacht accommodations, timeshares, condominiums, etc.
Even a well-developed material and technical base will be useless if the tourist does not feel welcome. The development of cultural hospitality resources is a critical factor in tourism. These resources are the entire cultural wealth of the tourist area, which provides opportunities for quality service to tourists. The concept of "hospitality resources" includes courtesy, courtesy, friendliness, sincere interest, desire to serve and other ways of expressing warmth and hospitality by tourism workers and local residents of the host region. In addition, cultural resources include fine arts, literature, history, music, drama, dance, sports, etc.
Favorable attitudes towards tourists can be created through public education and information programs designed for the local population.
19. The concept of elasticity of supply of a tourism product
20. Concept and content of the category “tourist product”.
Unlike tourism services, a tourism product takes the form of a commodity. A tourism product in the broad sense of the word is an economic good intended for exchange. This is how K. Menger, the founder of the Austrian school in economics, defines any product (K. Menger, 1992).
A very important difference between a tourism product and a tourism service is that if a tourism service can be purchased and consumed only at the place of its production, then a tourism product can be purchased at the place of residence, but consumed only at the place where tourism services are produced. This is a fundamental difference that travel agents use when they sell you a trip ticket. By purchasing a ticket, you are not yet purchasing tourist services, although you have already paid money, but you are purchasing a guarantee of a vacation.
There is one more circumstance that makes the work of a tour operator necessary to produce a tourism product. Let's explain this with an example. It is unlikely that you will go to Vienna to eat Wiener schnitzel and drink Geser beer. These services, although pleasant, will be too expensive. Transport costs will far exceed the cost of the service itself that prompted you to travel to Austria. Another thing is that you came to Austria for the Salzburg Festival, so why not try the local beer at the same time?
Now let’s imagine that a tour operator creates a tourist product to Austria and includes in it the cost of visiting the Mozart Festival in Salzburg. What's happening? Thus, he narrowed the consumer market to lovers of the music of W. A. Mozart. And if he also includes a visit to a beer bar as an obligatory component in this tour, then most likely he will have to look for lovers of Mozart’s music in the party of beer lovers.
Therefore, the task of the tour operator is to include in the tour only the necessary services that are sufficient for the consumer to agree to bear transportation costs.
The technology for compiling a tourism product will be discussed a little later, but now we will dwell on some important properties of the tourism product as a commodity.
A tourism product as a commodity is characterized by consumer value, i.e. utility or ability to satisfy certain recreational needs of people. The usefulness of a tourism product is determined by its value for the subject. Therefore, the tour operator must strive to create a tourism product that would be valuable to the largest possible number of people, i.e., if possible, it should have a mass consumer. Then it is possible to use industrial technologies to produce a tourism product.
Mass consumption of goods is determined by its exchange value - the quantitative ratio in which the consumer values of a tourism product are exchanged for the consumer values of other goods.
Sometimes a tourism product is associated with the concept of a “tourist package” - a basic (mandatory) set of services provided during a trip according to an individual or group plan, which is serial in nature and offered for wide sale. The tourist package includes four mandatory elements: tourist center, transport, accommodation services, transfer (Fig. 6.1).
T 
tourist product - a set of tangible (consumer goods), intangible (services) consumer values necessary to fully satisfy the needs of tourists arising during their travel.
The tourism product consists of three elements: tour, additional tourist and excursion services, goods (Fig. 6.2).
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Chapter 11. Functioning of economic laws in tourism
§ 1. Tourist market as a sphere of manifestation of economic relations
Tourist market- this is a system of world economic relations in which the process of converting tourist and excursion services into money and converting money back into tourist and excursion services takes place.
In other words, the tourism market is the sphere of manifestation of economic relations between producers and consumers of the tourism product. If the economic interests of the producer and consumer of a tourism product coincide, then an act of purchase and sale of a tourism product occurs.
The market performs numerous functions: informational, intermediary, regulating, pricing, stimulating, creative-destructive, differentiating. But the following can be identified as the fundamental functions of the tourism market:
1) realization of the value and consumer value contained in the tourism product;
2) organizing the process of bringing the tourism product to the consumer (tourist);
3) economic provision of material incentives to work. In the process of performing the first function by the tourist market, a movement of value occurs, which is reflected through the exchange: money ↔ tourist product.
The completion of this exchange means the completion of the act of commodity-money relations, the realization of the value contained in the tourism product, and public recognition of its consumer value. As a result, the normal course of social reproduction is ensured, funds appear and accumulate for the development of the tourism industry.
The function of organizing the process of bringing a tourist product to the consumer is carried out through the creation of a network of travel agents and tour operators for its implementation.
The function of economic provision of material incentives for work is that in the process of exchange “money - tourist product” in the tourism market, distribution as a necessary phase of reproduction appears in its completed form. Employees of a tourism company, who receive monetary remuneration for their work, are given material incentives to improve the quality and increase the quantity of the tourism product, and produce it in accordance with consumer demands.
The tourism market is characterized by the presence of entities, i.e. legal entities and individuals who are producers and consumers of the tourism product. Three subjects of the tourism market can be distinguished, namely: tourists themselves (consumers of tourism products), tour operators and travel agents.
Tour operator is a tourism organization that develops tourist routes and packages of tours, ensures their functioning, organizes advertising, calculates in accordance with current regulations and approves in the prescribed manner prices for tours on these routes, sells tours to travel agents for issuing and selling tours under their licenses .
Travel agent- an economic entity or individual entrepreneur who purchases tours along tourist routes developed by a tour operator, issues vouchers on them and sells these vouchers directly to tourists.
Tourist- a person traveling for any purpose other than seeking income and changing his permanent place of residence, with a period of stay outside his permanent place of residence of at least 24 hours (less than 24 hours - excursionists) 1.
The tourism market is characterized by capacity, the level of balance between supply and demand, and the conditions for the sale of the tourism product.
Tourist market capacity- this is its ability to “absorb” this or that amount of a tourist product, i.e. the possible volume of sales of individual tours, tourism services, tourist and souvenir goods at existing prices and supply. Capacity depends on the volume of effective demand of the population, the price level and the size of the tourist supply.
In the tourism market, the demand for the tourism product presented by the tourist and the supply of the tourism product provided by the travel company collide.
The mechanism of functioning of the tourism market- this is a system of actions of economic levers to balance supply and demand for a tourist product, for the exchange of “money - tourist product”, for cash flows and flows of a tourist product.
The functioning of the tourist market can be represented by the diagram shown in Fig. 3.2, which shows that the demand for tourism services is determined by the wishes and tastes of tourists. In the tourism market there is a continuous movement of flows of money and tourism products, which move towards each other, creating a tourist circulation.
Rice. 3.2. Scheme of functioning of the tourist market
Tourist circulation- this is a system of economic and legal (civil) relations that arises between a tourist and a tourism company and shows the directions of movement of tourist flows of the tourism product, investments in the development of tourism and cash receipts to the budget from income from tourism activities.
Tourist circulation is carried out according to the following scheme (Fig. 3.3):
1 - a tourist pays a travel agency money for a tour package;
2 - the travel agency issues the tourist a tour package;
3 - a tourist exchanges a tour package for a tourism product, i.e., for specific tourism services;
4 - in the process of selling a tourist product, the tourist receives a tourist experience, i.e., the process of indirectly returning the tourist his money takes place;
5 - the travel agency invests in the development of the tourism market, the tourism industry and the creation of new types of tourism products;
6 - the travel agency receives new types of tourism products;
7 - the travel agency pays taxes and various fees to the budget.
Rice. 3.3. Tourist circuit diagram
(................... - flows of tourism product;
––––––––––→ - cash flows)
The functioning of the tourism market and related tourism industry enterprises has a clearly seasonal nature. Seasonality in tourism is influenced by various factors.
The primary factors of seasonality in the functioning of the tourism market include natural and climatic factors.
Secondary factors include:
1) economic - the structure of consumption of goods and services, the formation of the solvency of demand through supply;
2) availability of free time;
3) demographic - differentiated demand by gender, age and other characteristics;
4) psychological - traditions, tastes, fashion;
5) technological - related to the comprehensive provision of quality services.
Consequently, in the process of analyzing and planning the volume of services sold by a travel company, it is necessary to take into account the pattern of deviation of the indicators of individual months from the average annual indicators. These calculations are made based on seasonality coefficient, which is the percentage ratio of average monthly levels for a number of years to the average monthly volume of services sold for the entire billing period:
Y 1 is the average level of volume of services sold for a particular month, cu;
y is the average monthly volume of services sold for the billing period, c.u.
Calculations should be made for a number of years, at least the last three.
As an example, let's calculate the seasonality coefficient of revenue from the sale of a tourism product in the Tver region for January. Let us assume that the average monthly volume of services sold for the billing period is 20 thousand cu. The average level of revenue for January of the billing period is 9.8 thousand cu i.e. Then the seasonality coefficient for January is calculated as follows:
(9.8 / 20) x 100% = 49%
those. the deviation from the average level of the volume of services sold in January is 49%.
The seasonality of tourism affects the employment structure of workers in the tourism industry, the features of which are:
1) significant share of underemployment;
2) seasonal fluctuations in the volume of employment and workload;
3) low proportion of qualified personnel;
4) limited opportunities for professional growth;
5) a significant share of female labor.
To successfully conduct tourism activities, it is not advisable for firms to disperse their efforts, but it is recommended to focus on a certain circle of consumers of the tourism product and build their policy of behavior in the tourism market in such a way as to most fully satisfy all the needs of this particular narrow segment of travelers. Therefore, segmentation of the tourist market is carried out, i.e., dividing it into homogeneous specific markets and segments. Segmentation is based on the desire of firms to obtain a monopoly position, if not in the entire market, then at least in that part of it that is most preferable from the point of view of its production, financial and sales capabilities.
The division of the market into segments must be carried out according to certain criteria. The segmentation method that is most consistent with modern tasks in the development of the tourism industry is based on three groups of criteria: geographical, social and psychological.
Every market, both classical and modern, in the process of its functioning is based on the action of three basic economic laws: the law of value, the law of supply and demand, and the law of competition. At the same time, the law of supply and demand shapes the behavior of consumers in the market, and the law of competition acts as a mechanism for the functioning of the market.
§ 2. Tourist demand and tourist supply
Economists define demand as the quantity of any goods and services that people are willing and actually able to purchase at any given price in a set of possible prices in a particular period of time. Thus, at any given time, there is a certain relationship between the market price and the quantity of goods (services) for which there is demand.
Travel Demand to a specific tourist region (D) is a function of a person's propensity to travel and the corresponding magnitude of resistance to communication between the starting point of travel and the destination:
D = f (inclination, resistance)
A penchant for traveling can be understood as a person’s predisposition to travel and tourism, i.e. how much a person wants to travel, to which regions, and what types of travel he prefers. To assess a person's propensity to travel, psychological and demographic (socioeconomic status) variables relating to the person, as well as marketing effectiveness, should be taken into account.
Resistance it is generated by economic distance, sometimes cultural distance, too high the cost of a tourist trip, poor quality of service, and the seasonality effect.
Economic distance is associated with the time and monetary costs of traveling from the starting point to the Ha-value and back. The greater the economic distance, the higher the resistance (a person’s desire to stay at home) and the lower the demand. Conversely, it follows that if the travel time between origin and destination and the cost of this journey are reduced, then demand will increase. Thus, a surge in demand occurred with the advent of large aircraft designed for transatlantic flights. This reduced the cost of travel by almost 50%. The advent of jet aircraft in 1959 and their improved modifications in the late 60s significantly reduced flight time (by about 2.5 times), as a result of which demand increased enormously.
Cultural distance- the degree of difference between the culture of the region from which the tourist came and the culture of the receiving region. The general trend is that the greater the cultural differences, the greater the resistance. But in some cases the relationship may be the opposite, for example, recently the demand for exotic tourism has been increasing.
In addition, the relative attractiveness of a given destination will depend on the time of year for which the vacation is planned. For a ski resort, for example, demand will be at its highest during the winter months. Resistance during this season is minimal.
The magnitude of demand, its structure and dynamics are influenced by a variety of factors 2: the number of buyers of a tourism product, their monetary income, estimates of the prospects for future income, the budget for free time, the tourist tastes of travelers, advertising, etc.
Let's consider the 4 main components of tourism supply, determining the relationship between tourism supply and tourist demand.
Tourist offer- this is the ideal readiness and real opportunity of a commodity producer to produce and supply a certain amount of tourist goods to the market.
The supply of a tourism product depends on many factors: the number of tourism suppliers (accommodation, food, entertainment, etc.); number of selling companies; level of efficiency in the production of tourism products. ditch and services; level of scientific and technological progress; tax systems; prices for factors of production; assessing demand prospects and future revenues.
The components of a given tourism region's offer can be broken down into 4 main categories:
1) natural resources;
2) infrastructure;
3) the material and technical base of tourism, which includes: tour operators and travel agents, accommodation enterprises, catering and trading enterprises, motor transport enterprises, etc.;
4) cultural resources of hospitality.
It is advisable to consider each of these elements in more detail.
Natural resources of each tourist region, available for tourist use, form the basis of the offer. The basic elements of this category include air and climate, physical features of the area (topography), flora, fauna, water resources, beaches, natural monuments, etc. The quality of natural resources must be preserved in order to maintain demand. In essence, tourism is very sensitive to the quality of use of natural resources.
Infrastructure represents underground and above-ground service structures, including: water supply, sewerage, gas pipelines, communication systems, as well as other service facilities, such as highways, airports, roads, railways, parking lots, parking lots, ports, train stations, etc. Infrastructure is very important for the successful development of tourism. These structures must correspond to the intensity of use. For example, airport runways should be built to accommodate the future use of the latest types of jet aircraft, so that costly renovations are not necessary later.
Material and technical base of tourism is the basis for the development of organized tourism, since it creates all the necessary conditions for providing tourists with a full range of services (accommodation, meals, transportation, excursions, etc.) - The material and technical base of tourism includes: tour operators and travel agents, accommodation enterprises, catering and trade enterprises, motor transport enterprises, excursion bureaus, etc.
Based on economic elements, material and technical base objects are divided into fixed assets and circulating production assets (low-value and wearable items).
By type of ownership, material and technical facilities are divided into their own (belonging to a given tourism business entity), leased by this entity from legal entities (for example, renting places in municipal hotels) and rented from individuals.
One of the main and most significant elements of the material and technical base of tourism is accommodation facilities.
The most popular accommodation facility among tourists today is a hotel. Today there are more than 30 classification systems for accommodation facilities in the world. Each country has adopted and operates its own national standards. The most famous system is the stellar one. It is especially common in Europe. Despite attempts to develop unified international quality standards, a unified system still does not exist. In 1989, the WTO developed the document “Interregional harmonization of hotel classification criteria based on classification standards approved by regional commissions,” which can be considered as an international standard that is purely advisory in nature.
An attempt to introduce a unified classification system for accommodation facilities in Russia was implemented by the Moscow government in 1993. The standards currently in force in Russia were introduced in 1995 simultaneously with the certification procedure for tourist services and hotel services. The current system applies only to hotels and motels that are classified into categories from 1 to 5 stars. Independent non-profit organizations accredited by the State Standard of the Russian Federation are directly involved in determining the category of hotels. There are about 50 of them on the territory of Russia, and approximately 15 in Moscow. It is generally accepted that the classification of hotels in Russia is voluntary. This service is quite expensive. In such a situation, it often becomes economically unprofitable for a hotel to officially confirm the level of its service.
The average standard room price for a five-star Russian hotel is $230-280, a four-star hotel is $90-150, and a three-star hotel is $30-60. According to practitioners, the niche of middle-class hotels in Moscow is almost unoccupied. After the expensive hotels come the "bedrooms". There are only a few exceptions - the Sayany Hotel and the Molodezhny Hotel Complex.
The Moscow government has set the goal of turning the city into an international tourist center and ensuring that by 2005 it receives 5 million tourists annually. The city has a tourism and hotel industry, which provides the capital's budget with approximately 10% of its income. A network of small hotels (up to 100 beds), cheaper and more comfortable, is being created, since the demand for tourist-class hotels significantly exceeds the available capabilities.
The structure of the modern market of facilities is determined, along with hotel enterprises, by the so-called non-traditional, or additional, accommodation facilities, which have emerged and are successfully developing over the past 30-40 years. These include apartments, holiday homes, campsites, private room rentals, yacht accommodation, timeshare 3, condominium 4, etc.
Even a well-developed material and technical base will be useless if the tourist does not feel welcome. The development of cultural hospitality resources is a critical factor in tourism. These resources are the entire cultural wealth of the tourist area, which provides opportunities for quality service to tourists. The concept of "hospitality resources" includes courtesy, courtesy, friendliness, sincere interest, desire to serve and other ways of expressing warmth and hospitality by tourism workers and local residents of the host region. In addition, cultural resources include fine arts, literature, history, music, drama, dance, sports, etc.
Favorable attitudes towards tourists can be created through public education and information programs designed for the local population.
§ 3. Economic patterns of the tourist market
All classical science proceeds from the fact that one of the basic laws of the market is law of value, which also operates in the tourist market.
The essence of the law of value is that in commodity production the basis for the proportions of exchanged goods is determined by market value, the value of which, in turn, is determined by socially necessary labor costs (SNL). The law of value presupposes the formation of individual costs of labor and resources for each individual tourism company and, accordingly, the formation of an individual cost and an individual price for a tourism product, however, the market recognizes not these individual costs and prices, but public and market ones, which are based on the basis of HSCT. In addition to NVCT, other factors, such as intra-industry competition, also influence costs and prices.
The law of value performs 3 main functions:
1. Stimulating function. Its essence lies in the fact that the law of value encourages tourism producers to save labor, resources and capital, encourages them to increase production efficiency, reduce individual costs, and establishes unified market prices in the market, which are based on HRT.
2. Distribution function. The law of value, through the mechanism of market prices, encourages producers of tourism goods and services to direct their capital and resources to those areas of the market where profits are higher. This function of the law explains the fact that some of the Russian travel agencies have recently turned to organizing exotic tourism that is expensive, but has a certain demand among consumers. Competition in this market is low, which allows firms to set high prices and earn excess profits.
3. Manufacturer differentiation function. The market price mechanism ruins some producers of tourism products and enriches others. The law of value in the tourism market acts as a kind of “invisible hand” that guides tour operators and travel agents towards their goal - obtaining personal benefit, satisfying their own interests.
The actions of consumers of a tourism product are determined by the action law of supply and demand. This law establishes a direct relationship between price and supply and an inverse relationship between price and demand. Its essence is as follows:
An increase in the market price for a tourism product, other things being equal, reduces the volume of demand; on the contrary, a decrease in the market price increases the volume of demand for a tourism product. At the same time, the volume of supply of tourism goods and services increases when prices increase and decreases when prices decrease. The first statement is especially true in modern crisis conditions, when prices have risen for the entire range of goods, but expenses on food and essential goods are moving to the main place, while expenses on tourism and, accordingly, demand among our citizens are falling to almost the very last position. The second statement is true, since tourism product producers are attracted by the excess profits received by some firms that operate, for example, in unique markets. Thus, various types of tourism are now being developed in the Kuril Islands: adventure canyoning (sports passage of waterfalls and canyons); climbing to the top of volcanoes; rock climbing; fishing (in hard-to-reach isolated areas, on mountain rivers and lakes with rare species of fish), therapeutic recreation on the islands of Kunashir and Iturup. There are no analogues to such tours, not only in Russia, but probably throughout the world. This means that tour operators will set monopoly high prices for these trips. Other companies, to the best of their ability, will also try to enter this market in order to obtain high profits, and therefore will offer tourists their tours of this type.
The dependence of supply and demand on price can be represented graphically (Fig. 3.4). To do this, the price is plotted along the ordinate axis, and the quantity of the tourist product offered for sale is plotted along the abscissa axis.
Rice. 3.4. Supply and Demand Graph
D - demand curve
S - supply curve
T - market equilibrium point
Р t - equilibrium price
Q t is the quantity of goods at which market equilibrium is achieved.
The demand schedule looks like a downward curve, and the supply schedule looks like an upward curve. At the point of intersection of the supply and demand curves, market equilibrium is achieved. The price at which this occurs is called equilibrium price.
The linear nature of the demand schedule is a special case. The linear approach is used in the following examples for simplicity. However, the results apply to other demand curves as well.
The Russian economy has its own characteristics. In our country, unfortunately, with an increase in the price of goods in general and the tourism product in particular, supply does not increase, but, on the contrary, decreases, therefore, the supply curve tends downward. This phenomenon is called the “Russian paradox”. The August 1998 crisis resulted in an average threefold increase in prices, while at the same time it bankrupted many entrepreneurs and reduced the supply of tourism products.
Example. Below are data on the demand for travel to Spain sold by Russian companies depending on the cost of the tour.
Data on demand can be presented in the form of a demand curve (Fig. 3.5), where the cost of the tour is plotted along the ordinate axis, and the number of tourists who flew to Spain by purchasing vouchers from Russian companies is plotted along the abscissa axis.
Rice. 3.5. Linear demand graph
Using the demand curve, you can determine the amount of total revenue from the sale of tourism services. Revenue is determined by multiplying the price of a tourism product by the quantity of products sold at that price.
Let's assume that the cost of a tour to Spain is $1100. From Fig. 3.5 shows that tours at this price will be purchased by 90 thousand tourists (revenue from sales is shown by the shaded area under the demand curve). Thus, the total revenue from the sale of tours at a price per tour of $1100 will be:
$1100 x 90 thousand people. = $99 million
For the development of the tourism industry in general and tourism firms in particular, it is important to know the rate of change of three economic quantities: price, demand and supply. The concept of “elasticity of demand” helps with this.
Price elasticity of demand shows by what percentage the demand for a given product changes if its price changes by 1%. If this indicator is greater than 1, then price demand will be elastic; if this indicator is less than 1, then price demand will be inelastic.
The coefficient of price elasticity of demand is calculated using the formula:
where ∆Q is the percentage of growth in the volume of purchased goods Q;
∆Р - percentage drop in price Р.
Returning to the demand schedule in Fig. 3.5. , we can calculate the price elasticity of demand at different price levels:
where indices 1 and 0 mean new and base prices and the number of tours sold, respectively. Using this formula and demand values, taking into account that the number of consumers due to a decrease in price increased from 60 thousand to 80 thousand, we obtain
An elasticity of -2.329 means that if the price fell by 10%, then the demand for tours to Spain would increase by 23.29% (-10% x -2.329). Usually, for simplicity, the minus sign is omitted when using the absolute value of elasticity.
Obviously, the price elasticity of demand varies at different parts of the demand curve. The absolute value of elasticity is lower at high prices and higher at low prices for the tourism product.
As shown in Fig. 3.6, three sections can be distinguished on the demand curve: where the elasticity is greater than 1, equal to 1 and less than 1. Demand is elastic above the price level P A and inelastic below the price level P A.
Rice. 3.6. Demand and Elasticity Curve
Price elasticity and total revenue from the sale of a tourism product are directly related, since price elasticity of demand characterizes the degree of dependence of the Volume of purchased goods Q on fluctuations in market prices P.
With elastic demand, when the price elasticity is greater than 1, total revenue (P x Q) increases faster than the rate of price decline. When demand is elastic, a fall in price will result in a simultaneous increase in demand and an increase in sales, and will therefore result in higher total revenue. And if the price rose, then total revenue would fall, since with elastic demand, an increase in prices is accompanied by an even greater drop in demand and a decrease in sales volume.
Conversely, with inelastic demand, a fall in prices reduces total revenue (total revenue increases more slowly compared to the rate of price decline).
If the elasticity is equal to 1, then the rate of change in prices and total revenue is adequate. Table 3.1 summarizes all these relationships.
Table 3.1.
Dependence of total revenue (RV) from sales on price elasticity of demand
The conclusion from the above is obvious. Firstly, one can judge the elasticity of demand only by knowing changes in prices and volumes of demand. Secondly, raising prices cannot be profitable and useful with elastic demand, since total income decreases in the same way as the number of customers. Similarly, if demand is inelastic, then it is advisable not to reduce prices, since this will result in a decrease in income and there will be more customers.
In Russia, unlike many other countries, demand is not price elastic, i.e., according to statistics, prices are growing at a faster rate than the demand for travel services is decreasing. This is partly due to the accelerated materialization of money into goods and tourism services due to inflation and the unpredictability of the economic situation in our country. Travel agents often hear a phrase from clients who come to them, the meaning of which boils down to the following: “Who knows what will happen tomorrow? I’ll go relax and have fun while I have money, at least I’ll have something to remember.”
So, a change in price causes a change in quantity demanded. But there are also non-price determinants of demand, which include: the level of income of consumers of tourism goods and services, the number of consumers, quality of services, fashion and tastes. They also influence demand.
Let us consider the income elasticity of demand, since income growth has an important impact on increasing the demand for tourism products at any given price. Thus, the income of potential consumers and demand are directly related.
Income Elasticity of Demand is the sensitivity of demand to changes in consumer income. It is defined as the percentage change in income at constant prices.
The effect of changes in income is shown graphically in Fig. 3.7, where D 0 (Y 0) is the demand curve for travel at income level Y 0. If the level of income rises from Y 0 to Y 1, then the quantity demanded will also increase. This means that the entire demand curve shifts to the right. At a certain price P A, the number of tours for which there is demand was initially Q 0 (on the demand curve D 0 (Y 0)). With an increase in income to Y 1, demand at the same price level P A increases to Q 1 (on the demand curve D 1 (Y 1)).
Rice. 3.7. Income elasticity of demand for tourism
The income elasticity of demand from the definition can be expressed by the following equation:
Or 
where ∆Q is the change in the volume of demand Q for tours
∆Y - change in income Y.
The income elasticity of demand can vary from zero to infinity. When income elasticity is between zero and one, demand is said to be income inelastic, meaning that regardless of changes in income, demand will remain more or less stable. If the elasticity is greater than one, then demand is income elastic, which means that as family income or the income of a certain market segment increases and travel prices remain constant, the demand for tours will increase. Elasticity can be equal to unity.
Low quality products are an exception to this rule. In this case, there is no direct relationship between income and the quantity of products for which there is demand.
According to Engel's law with an increase in income, the part of it that is spent on essential goods decreases, and the share of expenses on luxury goods and spiritual development increases (this also includes tourism).
Products can be divided into three groups:
1) low-ranking goods - mainly food products, which provide minimal physical existence;
2) goods of normal quality - some food and industrial goods;
3) high-quality, especially fashionable goods and rarities.
As income increases, the demand for goods of the first group first increases, then stabilizes, and then begins to decline; demand for goods of the second group first grows, then stabilizes, and then begins to grow again; Demand for goods of the third group first rises sharply and then stabilizes.
Tourism is essentially a good quality product, although certain segments of it have the characteristics of low quality goods. Therefore, it is assumed that a family whose income has increased travels more. At the same time, this family can now relax in a hotel, rather than in a campsite, as before, or travel by plane instead of land transport. Thus, camping and ground transportation can be considered inferior goods in this case, since increased income has led to a decrease in demand for them. At the same time, the volume of tourism has increased, and therefore tourism is a product of normal or superior quality.
In general, tourism is considered income elastic (ε Y > 1). It involves discretionary spending and is therefore highly susceptible to changes in consumer income. Tourism is one of the first expenditures to decline as income decreases and often increases in greater proportion as income rises. However, there is an opinion that tourism is income inelastic (ε Y< 1), по крайней мере в процветающих странах. Для населения Швеции, например, ежегодный отдых - это неотъемлемая часть семейного календаря. В случае, если семейный доход существенно понизился, шведы пожертвуют другими благами, чтобы позволить себе путешествовать в целях рекреации. Очевидно, что в данном случае эластичность по доходу снижается но мере увеличения благосостояния нации. Но для того чтобы утверждать, что туристский спрос неэластичен по доходу (даже в Швеции), нет достаточных оснований. Фактически значительная часть эмпирических оценок эластичности по доходу дала значения гораздо больше единицы. Это означает, что туристский спрос является эластичным по доходу.
Each consumer is influenced by the tastes and preferences of other consumers. There are three typical forms of influence of surrounding people on the consumer, which give rise to three effects in the buyer’s behavior:
1) the effect of joining the majority;
2) snob effect;
3) the effect of prestigious consumption (Veblen effect).
Of particular importance now is effect of joining the majority when the consumer strives to buy what everyone else is buying. There is a belief that all civilized people are tourists. Therefore, people who have not previously traveled strive to fill this gap so as not to remain “black sheep.” It should be noted that in post-crisis conditions, this effect contributes to the development of domestic tourism, since tourism has become an integral part of the lives of most people, and foreign tourist trips have become inaccessible to many.
Snob effect means that the consumer of the tourism product wants to distinguish himself from the majority. A snobbish buyer will never buy what others buy. Here, too, there is dependence on others, but it has the opposite direction.
Veblen effect- This is the effect of prestigious or conspicuous consumption. Certain products are believed to be attractive to people who buy in order to impress others. In tourism, examples include particularly expensive new products on the tourism market - survival tours. Prices and demand for them are directly dependent on each other.
In the tourism industry, there is a very small group of consumers who have virtually no restrictions on money or time. They are representatives of the "leisure" social stratum, whose demand patterns were studied by the American economist and sociologist Veblen. The mechanism of prestigious consumption is based on the fact that the consumer is guided not by the real price, but by the prestigious one, not by the real utility of the good, but by the ostensible one. And if an increase in the price of a product is perceived by representatives of the “leisure class” as an increase in quality, then along with the increase in prices, both demand and consumption will increase. The Veblen effect operates in the most expensive hotels, resort areas, etc. Due to high prices, there is a certain guarantee that wealthy clients of these privileged vacation spots will communicate there with people of the same social class.
Demand is strongly influenced by and limited by supply. When using demand indicators in the planning process, supply aspects must also be taken into account.
The exchange of demand for supply in the tourism market means the exchange of tourist money for a tourist product. With such an exchange, on the one hand, the interests of a specific producer (seller) and a specific consumer are satisfied, and on the other, conditions are created for expanded reproduction. This process depends on the price of the tourism product.
There is a rule: if demand exceeds supply, prices rise, but if supply exceeds demand, prices decrease (Fig. 3.8).
Rice. 3.8. Dependence of price on demand
Let's consider the different levels of supply that a tourist region can provide in accordance with the changing demand for a tourism product due to seasonality.
Seasonality refers to a stable pattern of intra-annual dynamics of tourist demand, which manifests itself in intra-annual increases or decreases in the levels of demand for travel over a number of years.
Tourism is a service industry, and services cannot be stored - this is the reason why demand experiences peaks and valleys throughout the year. Every effort should be made in the tourism industry to minimize seasonal variations in demand. There is a real opportunity to influence the seasonal unevenness of demand in tourism. The graphs below illustrate the different supply options for accommodation and other supply components in accordance with changing levels of demand for tours to a particular tourist region throughout the year.
So, in Fig. 3.9a shows the demand for a certain tourist destination. If no action is taken to stabilize demand, then three possible supply levels can be identified. In Fig. 3.9.6 the supply level is set in such a way that demand in the “high” season is fully satisfied. This assumes that tourists coming to the tourist area during the peak season will be comfortably accommodated, and there will be no overload of hotels and facilities. At the same time, during the low season the region will suffer from extremely low hotel occupancy levels, which will obviously impact profitability. On the other hand, if supply is maintained at a low level (Fig. 3.9, c), then the entire material base of tourism will be so loaded that it will reduce the flow of people wishing to relax in a given tourist region. Tourists will not be satisfied, and the future of this tourist area will seem very doubtful.
If the supply is fixed between the levels of demand in the “high” and “low” seasons (Fig. 3.9, d), i.e., the average value is found, then the problem is somewhat mitigated. However, this will result in very low occupancy during periods of low demand and overcrowding during peak periods - neither of which is desirable.
Rice. 3.9. Demand and supply levels that change throughout the year
To ensure maximum customer satisfaction and year-round operation of equipment and facilities, certain actions must be taken. There are two possible strategies in such situations.
1. Multi-purpose use. This strategy involves combining various aspects that attract tourists during the high season, which support tourism demand for travel to the region during the low season. The more multifunctional an area's resources are, the greater the likelihood of success since they can be used year-round. In fact, the region's peak season is being extended. The extension of the main tourist season has a strong impact on the efficiency of the tourism company: firstly, a decrease in the load on the material and technical base leads to direct losses in the main activities of the tourism company; secondly, fuller employment of the population is ensured and unemployment is eliminated; thirdly, the level of use of fixed assets in other industries is increasing: transport, food, public utilities, etc.; fourthly, natural resources are used more rationally. Festivals, carnivals, conferences, congresses, and sporting events organized and promoted during the low season are also examples of a multi-use strategy.
2. Price differentiation. This strategy involves creating new markets during the low season, using price reductions as a powerful tool to draw interest away from high season travel in order to increase off-season demand.
The importance of increasing off-season demand, and therefore operating levels, is reinforced by the fact that in the tourism industry fixed costs are quite high compared to operating (variable) costs. This means that even a small increase in total annual revenue will cause a proportionately larger increase in profits. Thanks to those tourists who switch to off-season tours due to more reasonable prices, demand in the “high” season may decrease slightly (Fig. 3.10, a). However, this decrease will be minimal. Typically, when off-season demand is supported by a mixed-use strategy, peak season demand is not affected in any way. Therefore, total demand increases significantly throughout the year (Fig. 3.10.6).
Figure 3.10. Reducing the influence of seasonality through
In addition to the strategies considered, some trends in price differentiation (a) and multi-use strategies (b) help to balance demand in the “low” and “high” seasons (solid line - the original demand curve; dotted line - the demand curve changed due to the use of one of the strategies) in employment and holiday and vacation schemes. It is necessary to take into account external economic factors that influence the tourism industry:
Over the past 10 years, the decline in the working week has slowed significantly as competition in the global economy has intensified. As a result, working hours have become more flexible and employment and pension security have become less secure.
- The workload increases, and the time for rest is constantly reduced, the quality of life decreases. Companies are forced to minimize their operating costs, of which vacations and pensions are the most expensive.
The high level of technology makes employers less dependent on staff, which forces workers and employees to work longer and in less favorable conditions in order to keep their jobs.
A study of holiday trends in 18 countries, which account for 73% of the world's tourism spending, found that their impact on global tourism would be significant. And although the demand for vacation is unlikely to weaken, the reduction in vacation time will occur at an increasingly rapid pace. Vacations will last 3-4 days, including weekends, but will increase in frequency as people require more intensive rest breaks.
Flexible vacation schedules, the growing popularity of three-day weekends that include Friday or Monday, and the division of vacations between different seasons - all this contributes to changing the dynamics of tourist demand.
So, a new consumer of tourism services appears with a higher level of income, but deprived of time. Travel agents will have to develop a new marketing strategy and organize new tours in accessible tourist destinations. These "new" tourists will demand that the travel industry provide them with highly efficient methods of selecting and purchasing tours. And the delays and waits associated with certain types of travel will be considered extremely undesirable by them.
1 This definition was put forward at the UN conference in 1954 and confirmed by the UN Rome Conference in 1963.
2 Motivational aspects in tourism as a determining factor of demand are discussed in detail in part two (Chapter 7).
3 Timeshare - ownership of time to relax as part of a club vacation.
4 Condominium - joint management of a building or group of buildings in which individual buyers can purchase individual apartments; at the same time, they become co-owners of public premises, playgrounds, and recreation areas in this building.
