Consumer behaviour in tourism - Essay Example

In the past tour operators have been content to organise tour packages. More recently the postmodern tourist has become more demanding. Discuss the current challenges to tour operators, such as the growth of independent travel, the impact of low cost airlines Table of Contents Introduction 3 Growth and Development of Traditional Tour Operators 4 Role of Government in promoting mass tourism 5 Factors leading to Post-Modern tourism 6 Responses by Traditional Tour Operators 9 Conclusion 10 References 11 Bibliography 13 Introduction Tourism industry had been one of the latest incorporations in the industrial sector but is also one that has fast attained a pillaring position behind the growth and development process of many economies around the world. One of the secrets behind the industry’s rapid growth process is the function that tour operators play behind the same. Tour operators act as an intermediary between the tourists who are the customers and tourism destinations which could be treated as producers (Moutinho, 2000, p. 161). The presence of tourism operators is convenient given that these intermediaries maintain an organised record which facilitates transparency of business and provision of symmetrical information to either side. In addition to a growth in popularity of tourist destinations, they also assist potential consumers to acquire relevant information without expending much for the same. Tour operators have a very significant function in providing information to domestic nationals, especially in case of developing economies. The developing economies are particularly found to be counting upon their opinion and information base given the easy access tour operators enjoy to foreign markets. This is often seen as a reason why they are supported by the domestic governments of respective nations (Gartner & Bachri, 1994, p. 163). In fact, many economies during recent years have promoted a concept called mass tourism which attempts to accommodate large number of travellers at a given point of time. Though such a measure reduces the cost of travel, its inflexible nature is often objected by the newer genre of modern and adventure loving tourists. In addition, given the low cost associated with travelling these days, consumers find it more convenient to plan it themselves, rating the conducted ones as more expensive these days. The present paper discusses the transition between dependence of tourists upon tourism operators and the growing demand for independent and customised travel. Growth and Development of Traditional Tour Operators The tourism industry mediated by tour operators traditionally came in vogue as a pillaring economic institution during mid nineteenth century with the inception of Thomas Cook, set up by a British entrepreneur. However, the industry underwent a rapid development with the progress of the travel industry spurred by the expansion of airlines between 1950s and 1960s. But it attained popularity only in developed markets of Europe given the heavy expenditure associated with foreign and even domestic tours. Eventually, the travel industry realised the opportunity cost of flying expensive crafts and hence decided to invest in inexpensive ones which were linked with reasonably priced tickets and hence were affordable (Middleton & Hawkins, 1998, p. 184). According to Rostow’s model of economic growth and development, evolution of the traditional tourism industry could be categorised under four phases, namely, the stage of take-off, maturity and finally that of mass consumption (Cavlek, 2005, p. 177). Development of the tourism sector primarily had been initiated by war stricken nations to recuperate their respective economies out of the impending financial crunch during the post World War II era. Such a development could actually assist in foreign exchange income which could help in propping up the dwindling treasury position of the recipient nation. In other words, the theory of trickle-down growth could be applied in the present case as a robust financial position is automatically characterised by good employment situation, economic growth and better standards of living (Telfer, 2009, p. 154). Actually, the significance of a tourism industry is rated quite highly for developing economies especially after witnessing the high rate of economic growth attained by their developed counterparts from the same. The World Trade Organisation recognises the importance of tourism for the developing economies in order to abolish wide spread poverty. In fact, UNWTO addresses the poorest of nations comprising Africa or other developing regions of the world, to take up tourism seriously to perennially solve their respective economic issues. Implication of such measures could be reflected through a rising trend in national income and employment opportunities. This is one of the reasons why some of the fastest developing nations like Turkey, China and Mexico rank among the toppers amidst nations who aggressively promote their respective tourism industries (Nawjin, Peeters & Sterren, 2008, p. 1). But, the market for small tour operators had been characterised by oligopolistic features as is prominent from the fact that 40 such companies were known to occupy a third of the total market almost two decades ago in USA. In UK, the corresponding figure had been 22.5 percent more than in USA. However, most of them went out of business by late 1990s as many large firms stepped into the sector and framed strategies to extract the market shares of the existing operators (Huybers, 2007, p. 61-62). This was when the transition from maturity to mass-consumption occurred, which is characterised by a hike in absolute profit rather than relative gains. One of the prime purposes behind endorsing mass tourism is to earn economies of scale and profit of dealing with an undifferentiated market (Poon, 2003, p. 132). Role of Government in promoting mass tourism Mass tourism is a modern concept which the tour operators often associate with the way they conduct tours and travels. Usually a group of people destined to the same tourist spot are accommodated at the same point of time. The regimes in which they are supposed to fit in through their tour are extremely rigid in nature. The system gained immense popularity among people who are less fond of adventures and look forward to a safe and secure trip. The primary reason which prompted the national administrative bodies towards advocating mass tourism practices was the role it is likely to play in generating income and employment in the respective nations (Vanhove, 1997, p. 44). However, prior to the promotion of mass tourism, the national government also needs to identify certain essential facets which must satisfy a benchmarked scale of improvement. In this context, the national administrative forces must involve themselves into two major roles, namely, that of promoting and secondly, assist the local tour operators to coordinate their activities. The governments of developing nations must be responsible for financial support as well with the flow of money aimed at improving the existing infrastructure of the concerned region to suit the tastes of tourists. They also participated in improving the existing state of local industries and in inkling the rate of exchange of the domestic currency in a convenient direction (Sharpley & Telfer, 2002, p. 125-6). But, even these large tour operators faced considerable problems with the advent of the new millennium as potential tourist demands took a new turn. Some of the factors which actually resulted to apparent dissolution of the traditional tourism industry have been discussed underneath. Factors leading to Post-Modern tourism Tastes and preferences of the contemporary or post modern tourist differs substantially from those of the traditional ones. While the former group of travellers prefer to travel places of mass publicity or those purportedly meant for tourist attractions, the latter group prioritises the visit to relatively unexplored spots. In fact, the demands which they posit while holidaying differs significantly from those of the traditional travellers in the sense that neither do the latter insist for comfortable means of accommodation and nor ways of transportation. Unlike the traditional mass tourist, the post modern or independent tourists are endowed with a better knowledge foundation so that not even a minute detail escapes their eyes. This is the reason why many writers often put post modern tourism over the traditional institutionalised ones. The concept of post modern tourism implies a more effective exploration over the traditional system (Cohen, 2004, p. 43). Post modern or independent tourism is often held as the consequence of shift in consumer tastes and preferences, choice of leisure, and technological progress leading to massive adjustments in price of tourism package (Kaplan, 1998, p. 27). These could also be regarded as potential threats of operation for traditional tourism operators who are accustomed with a traditional concept of tourism and still cater to the needs of the class of tourists who prefer a conducted tour over a vague one. Some of the features which define post modern tourism are small scale unlike mass tourism which had greatly been in vogue under the traditional system. In addition, they also are featured by resource sustainability and conservation, equity, empowerment and control of local factors (Singh, 2004, p. 4). Post modern tourists seek more and better quality information so as to minimise being victimised of duplicity; hence their tastes change fast and they want them to be satisfied equally fast even irrespective of existing cultural differences (Werthner & Klein, 1999, p. 40). In fact, the tastes of post modern tourists are such that they can never prefer tour operators over undefined ones. Some of the major factors which have actually accelerated the pace with which the nature of tourists are fast changing have been depicted underneath – Technological Progress Post modern tourists often cater to the information base available to them from the virtual medium such as internet and travel shows aired on television. These media tend to provide them with a huge and reliable source of information unlike tourism operators (Smith, MacLeod & Robertson, 2010, p. 130). Moreover, post modern tourists who generally prefer to travel independently are found to rely highly over marketing and distribution networks being popularised and advertised through the internet. Internet is one of the few sources which provide consolidated information on various tourist spots at a particular place. Its importance could actually be summarised under the following points – Use of information technology prior to making travel decisions tend to improve the level of transparency for the customer. In other words, it helps to retain symmetry of information between the two parties. Apart from assisting in booking their tours and travels, technological progress has also facilitated assorting them in the best possible way so as to provide them with electronic guides leading to “edutainment” (Werthner & Klein, 1999, p. 1). It is information technology based on which it is possible to create an idea about the place of visit. Internet and television largely plays the role of acquainting between the two parties involved in the scenario (Hall & Page, 2006, p. 142). It is because of the growing importance of information technology that it is highly recommended that various innovative models of tourism based on technological progress be revised. Such a measure could actually assist in the development of products and services for the ultra-modern post modern tourists (Jafari, 2003, p. 242). Low cost of travel Low cost of travel is yet another factor which has accomplished the dream of the independent traveller. Given mass tourism, per unit travel expense borne by the tour operators has plummeted down substantially, which is actually reflected through cheaper cost of availing their services. However, technological advent has actually facilitated a sharp decline in the cost of individual travelling as well. Furthermore, airlines companies have also introduced frequent flights to some selective destinations which have actually helped them gain advantages of large scale operations and thus, reduce the cost of air fares (Lumsdon & Page, 2004, p. 11). Large scale operations of airlines also assist in implementation of various fringe benefits for tourists as had been witnessed when a low cost airline, Ryanair instructed the authorities at Carcasonne airport to develop the existing infrastructure for the benefit of tourists flying in from London (Knowles, Diamantis & El-Mourhabi, 2004, p. 256). Change in consumer tastes and preferences The independent post modern tourist often cannot distinguish between the apparent impression and the actual reality of a particular spot. They are very difficult to appease given their individualistic tastes and preferences, which necessitate high end development. Rarely are post modern tourists found to value tourism products popularised by globalisation. There are certain aspects which the post modern tourist seeks out or rather prioritise unlike the traditional ones. For instance, the independent tourist often counts environmental and sustainability factors highly unlike their traditional counterparts. Some examples of post modern tourism are heritage tourism, green or eco-tourism, etc. In other words, the independent tourists highly assess realistic tourist experiences over conducted ones. In fact, it had been anticipated in the past that traditional methods of standard mass tourism will almost get extinct by 2010 leading the tourism departments of various governments to invent new ideas to attract tourists (Swarbrooke & Horner, 2007, p. 197). The fundamental features of tourists have shifted dramatically over time. While traditional tourists were inclined more towards sighting the artificial spots of sight-seeing in their list, the post modern tourists have added natural and authentic places of attraction. Hence, there has been a shift in the nature of leisure that tourists prefer these days (Tucker, 2002, p. 144). In other words, independent tourists are found to be more prone towards originality in their choice of tourist spots, varying between untouched geographical objects to those which are capable of influencing people towards betterment in some way (Smith, 2009, p. 201). Responses by Traditional Tour Operators The tour operators have a huge problem at hand given the massive demand for independent tourism at present. In such a scenario, the tour operators need to identify their stronghold and invent measures to attract even the post-modern tourist of today. Some such strategies have been illustrated underneath. Firstly, it is necessary for modern day tour operators to sell holiday packages and figure ways to make them more attractive for the independent tourist. They must be aware that a fully conducted tour is preferred only by the less adventurous group who are fast receding in number. In a conducted tour, tour operators often stress more upon the vertical integration of various industries ranging from airlines to hospitality to bind the entire trip in a regime (Page, 2009, p. 151). To be precise, it is necessary to diversify the range of products for various kinds of customers. Independent tourists are rarely found to be unwilling to pay more provided they are guaranteed of their independence. In fact, many a times they are ready to compromise their accommodation in lieu of a trip matching their demands. In addition, it is equally important to advertise their products effectively in a medium which is likely to attract the most amount of attention, for instance through internet (Tourism Queensland, n.d., p. 3). Post modern tourists are guided by their interests in the originality of various spots of tourist attraction. In addition, these tourists are sternly against any environmental harm. Hence, a second point that tourism operators must be aware of is that they should stress more upon the cultural and environmental aspects in the trip even if that requires a greater expense. Private tour operators are still rarely found to employ such means and instead prefer to advertise their schedule of trip. Such differentiation is more common among the national tour operators who explicitly advertise the uniqueness of a particular tourist destination. Not only do they cater to the needs of the independent traveller, they also take advantage of the electronic medium, which is more frequented by the post modern tourist. One out of many examples is that of Bulgaria, whose tourism site holds the caption – “Culture Bulgaria. Just Unique” (Dann, 2000, p. 339). One example is that of European Flower introduced by the Euro, which targets environmental tourism preferred by the contemporary tourists (Honey, 2008, p. 47). Conclusion The present paper discussed the current challenges being faced by tourism operators after the influx of contemporary tourists within the tourism industry. They are growing faster in numbers which is why they are often posing threats to the businesses of traditional tour operators. The latter had been the first players in the business and had introduced the concept of mass tourism with the help of the governments of respective nations. Mass tourism actually helped in sharply reducing the cost of travelling and hence, commercialisation of the same. However, conducted tour packages implemented a certain degree of rigidity in the vacation schedule which was actually not much preferred by many adventure-seeking potential tourists. Actually the contemporary travellers not only detested the rigid travel regimes but also put some significance upon the environmental and originality aspects of their trips. 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