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The products of the business are very different from those of other businesses in a number of ways. Tour business involves the selling of intangible…
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Download file to see previous pages... It involves the selling of a discretionary product which may not be bought by the clients in situations of financial hardships unlike fuel and food stuffs. The products in this nature are heterogeneous and perishable since they best sell only up to the time of departures. Those that are packaged are often inseparable.
However, the tour industry is in most cases highly structured with high degrees of specialization in the businesses within it in functions that are driven by the core business. Its structure is largely a function of consumers travel abilities and their selection of travel products that they choose to buy. The travel industry is structured into different forms including; inbound and outbound which refer to offering services to clients from other regions as well as serving clients from the same regions.
Short haul and long haul; referring to the type of a market that a client comes from whether near or far away. Operators and resellers; referring to whether the company is moving its own products or the products of others in the market by either taking a commission or charging a mark up. Package Travel, Group Travel, and Independent Travelers; Involves selling the services in a package, this may be spread into package holidays for the group travelers, or personal travelling for certain clients who do not prefer group travel. It is further structured into travel operators which include; travel agencies, outbound tour operators, ground operators, local service providers and travel resellers and portals (Osterwalder, 2009).
Tourism industry is one of the leading employment creation world-wide and is among the top-five leading industries in terms of employment creation. It provides a broad scope of support to businesses and service provision across the industry sector. In many countries in Europe and America, tourism business is mainly small to medium in size. Irrespective of size, tourism ...Download file to see next pagesRead More
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