INTRODUCTION TO

TOURISM PRODUCTS
Designing and Development of Tourism Product
H55T001M06
Week 01

H.S.F. Wijewickrama
Senior Executive (Tangerine Tours Pvt. Ltd)
Visiting Lecturer (MSU, UCM)
Certified Trainer & Coach
LECTURE
ANNOUNCEMENTS

• Be on time
• Active participation
• Breaks
• Raise questions
• Switch on the videos
CONTENT

• Tourism Definition
• Tourism Industry Umbrella
• Product Vs Service
• Types of products
• Product Classification
• Tourism Product Definition
• Levels of Product
• 5A’s in Tourism
• Tourism Product Characteristics
• Types of New Products
• Importance of Tourism Products
• Types of Tourism Products
WHAT ARE 3 UNIQUE
WORDS THAT COME TO
YOUR MIND WHEN YOU
HEAR “TOURISM”?
INTRODUCTION

• Tourism is one of the world’s fastest-growing industries and a

major foreign exchange and employment generation for
many countries.

• It is one of the most remarkable economic and social

phenomena.

• Seasonality is a common phenomenon in the tourism

industry, with peak travel periods varying by destination,
climate, holidays, and events.

• Tourism plays a crucial role in promoting cultural exchange,

economic development, and environmental conservation.
TOURISM - DEFINITIONS

Tourism is a social, cultural and economic phenomenon which

entails the movement of people to countries or places outside their
usual environment for personal or business/professional purposes.
These people are called visitors (which may be either tourists or
excursionists; residents or non-residents) and tourism has to do
with their activities, some of which involve tourism expenditure.
UN Tourism

visit to a country other than one’s own or where one usually resides
and works
Rome Conference 1963
WHY?
TOURISM IS A UMBRELLA INDUSTRY
Tourism is often referred to as an umbrella industry because it
encompasses a wide range of sectors and activities that contribute to the
overall travel experience and its impact on economies and societies.

• Interconnected Sectors: Transportation, accommodation,

entertainment, etc.
• Economic Impact: Boosts industries, creates jobs, and revenue.
• Stakeholder Collaboration: Involves government, businesses,
communities.
• Global Reach: Connects people worldwide, fosters cultural exchange.
• Supply Chain Complexity: Involves suppliers, service providers,
distributors.
• Diverse Consumer Base: Caters to varied traveler preferences.
• Interdisciplinary Study: Draws from economics, marketing, sociology,
etc.
WHAT IS A PRODUCT?

“A product is the item offered for sale. A product can be a

service or an item. It can be physical or in virtual or cyber form.
Every product is made at a cost and each is sold at a price. The
price that can be charged depends on the market, the quality,
the marketing and the segment that is targeted.”

• Product: Item offered for sale; can be service or

physical/virtual item.
• Cost and Price: Every product made at a cost, sold at a
price.
• Price Determinants: Market, quality, marketing, targeted
segment influence price.

The Economics Times

 Tangible or intangible item offered
for sale to satisfy a need or want. It
PRODUCT
can be a physical object or a
digital entity.

products like software and apps.

VS
Intangible offering provided to
fulfill a need or desire. It involves
actions, performances, or
experiences rather than tangible
goods.
SERVICE
Hospitality, consulting, healthcare,
and transportation services.
CONSUMER PRODUCTS

Purchased by individuals and households for personal use or

consumption.

Categorized based on consumer buying behaviour:

• Convenience - Frequently purchased with minimal effort.

• Shopping - Items bought after comparing alternatives.
• Specialty - Unique items with specific characteristics.
• Unsought - Goods that consumers do not actively seek
out.
BUSINESS PRODUCTS

Goods or services purchased by organizations for operations

or resale.

• Purchased in larger quantities, involve longer decision-

making processes, and may require customization.

• Raw materials
• Components
• Machinery & Equipment
• Supplies
• Services
INDUSTRIAL PRODUCTS

Subset of business products used directly in the

production process.

• Essential for manufacturing and construction

industries, driving economic growth and productivity.

• Raw materials: Iron ore, cotton, petroleum.

• Components: Microchips, bearings, wires.
• Capital equipment: CNC machines, 3D printers,
industrial robots.
WHAT IS A TOURISM PRODUCT?

• A tourism/tourist product can be defined as the sum of the

physical and psychological satisfaction it provides to
tourists, during their traveling and temporary stay and on
the way to the destinations.

• A tourism product is a good, a service, or a package of

goods and services for people to purchase while visiting a
new destination.

• .Tourism products and services help visitors explore the

destination
5 A’S CONCEPT

• Attraction
• Accessibility
• Accommodation
• Amenities
• Activities
ATTRACTIONS

Attractions are the primary motivators for travel

and tourism. They are the points of interest that
draw visitors to a destination. Attractions can be
natural (e.g., beaches, mountains, wildlife),
cultural (e.g., museums, historical sites, festivals),
or man-made (e.g., theme parks, landmarks,
monuments).
ACCESSIBILITY

Accessibility refers to the ease with which travelers can

reach and navigate a destination. Good accessibility
involves well-developed transportation networks,
including airports, roads, railways, and public transit
systems. Accessibility also encompasses factors like
visa regulations, ease of obtaining travel information,
and language barriers.
ACCOMMODATION

Accommodations are the facilities that provide lodging

and hospitality services to travelers. These include
hotels, resorts, motels, hostels, bed and breakfasts,
vacation rentals, and campgrounds. Accommodations
vary in terms of price, amenities, location, and style to
cater to different traveler preferences and budgets.
AMENITIES (Ancillary)

Ancillary services encompass the additional facilities and

services that support the tourism experience. These may
include transportation services (e.g., rental cars, taxis, tour
buses), dining options (e.g., restaurants, cafes, food stalls),
entertainment venues (e.g., theaters, nightclubs, amusement
parks), tourist information centers, souvenir shops, and tour
operators. Ancillary services enhance convenience and
comfort for travelers during their stay at a destination.
ACTIVITIES

Activities refer to the experiences and recreational

opportunities available to travelers at a destination. These can
include sightseeing, adventure sports, cultural performances,
culinary experiences, shopping, eco-tourism activities, and
wellness retreats. Activities contribute to the overall tourism
experience and play a significant role in shaping visitor
satisfaction and engagement.
CHARACTERISTICS OF TOURISM PRODUCTS

• INTANGIBLE
• PSYCHOLOGICAL
• HIGHLY PERISHABLE
• COMPOSITE PRODUCT
• UNSTABLE DEMAND
• FIXED SUPPLY IN THE SHORT RUN
• ABSENCE OF OWNERSHIP
• HETEROGENEOUS
• RISKY
• MARKETABLE
INTANGIBLE

Tourism experiences are intangible, meaning they cannot be

touched or held like physical goods. Instead, they involve
sensory perceptions, emotions, and interactions with people
and environments.

Examples: Guided tours, cultural performances, adventure

activities.
PSYCHOLOGICAL

Tourism experiences often create emotional connections and

psychological impacts on travelers. Positive emotions and
memorable experiences contribute to customer satisfaction
and loyalty.

• Tourism experiences often evoke emotions and perceptions

that influence traveler satisfaction.
HIGHLY PERISHABLE

Tourism products have limited shelf life and cannot be stored

for future use. For example, unsold hotel rooms for a night
cannot be sold the next day, leading to revenue loss.
COMPOSITE PRODUCT

Tourism products are composed of multiple elements such as

attractions, accommodations, transportation, and activities.
These components work together to create a complete tourism
experience.
UNSTABLE DEMAND

Demand for tourism products can fluctuate due to various

factors such as seasonality, economic conditions, weather,
geopolitical events, and changing consumer preferences.

Businesses must adapt their marketing and pricing strategies

to manage demand fluctuations.
FIXED SUPPLY IN THE SHORT RUN

The capacity of tourism products, particularly

accommodations and attractions, is often fixed or limited in
the short term. Once capacity is reached, additional units
cannot be added immediately.
ABSENCE OF OWNERSHIP

Tourism products vary in quality, characteristics, and

experiences due to differences in providers, destinations,
cultural contexts, and customer preferences.
HETEROGENEOUS

Tourism products vary in quality, characteristics, and

experiences due to differences in providers, destinations,
cultural contexts, and customer preferences.

Customization and personalization are key strategies to

meet diverse traveler needs.
RISKY

Tourism involves inherent risks such as safety concerns,

health issues, natural disasters, political instability, and
economic downturns. Travelers and tourism businesses
must manage these risks effectively.
MARKETABLE

Tourism products can be packaged, promoted, and sold

through various marketing channels to target different
market segments. Effective marketing strategies enhance
visibility, attract customers, and generate demand for
tourism products.
3 LEVELS OF PRODUCT

• CORE PRODUCT
• ACTUAL PRODUCT
• AUGMENTED PRODUCT
CORE PRODUCT

• The core product represents the fundamental benefit or

solution that addresses the customer's underlying need
or desire. It is the essence of what the product does for
the consumer.

• Example: The core product of a smartphone is

communication and connectivity.
ACTUAL PRODUCT

• The actual product refers to the tangible features,

attributes, and specifications of the product that deliver
the core benefit to the consumer. It includes the
physical product itself along with its design, quality,
brand name, and packaging.

• Example: For a smartphone, the actual product includes

the device itself, its design, screen size, camera quality,
brand logo, and packaging.
AUGMENTED PRODUCT

• The augmented product encompasses additional

features, services, and experiences that augment or
enhance the core and actual product. These added
elements provide extra value to the consumer and
differentiate the product from competitors.

• Example: The augmented product for a smartphone

may include after-sales services such as warranties,
technical support, software updates, and bundled
accessories like headphones or phone cases.
IMPORTANCE OF TOURISM PRODUCTS

• ECONOMIC BOOST: TOURISM PRODUCTS DRIVE REVENUE AND JOB CREATION ACROSS
VARIOUS SECTORS.
• Differentiation: They distinguish destinations and attract diverse travelers.
• Cultural Preservation: Showcase heritage, fostering appreciation and understanding.
• Infrastructure Development: Spurs investment in transportation, accommodation,
and amenities.
• Community Empowerment: Provides entrepreneurship and engagement
opportunities.
IMPORTANCE OF TOURISM PRODUCTS

• ENVIRONMENTAL SUSTAINABILITY: PROMOTES RESPONSIBLE PRACTICES AND

CONSERVATION EFFORTS.
• Revenue Diversification: Lessens dependence on seasonal or volatile industries.
• Promotion of Understanding: Facilitates cultural exchange and peace-building.
• Improved Quality of Life: Enhances infrastructure and public services for residents.
BEST PRACTICES OF TOURISM
PRODUCT DEVELOPMENT
• A PERSONAL AND BUSINESS PHILOSOPHY FOR WHY YOU ARE DEVELOPING A TOURISM
PRODUCT (E.G. YOU ARE A CULTURAL KNOWLEDGE KEEPER AND WANT TO FIND RESPECTFUL
WAYS TO SHARE YOUR COMMUNITY’S STORIES)
• AN UNDERSTANDING OF INDUSTRY TRENDS AND MARKET DEMAND (E.G. THE CHINESE
MARKET IS GROWING AND YOU WANT TO INCLUDE A MANDARIN-LANGUAGE TOUR TO YOUR
OFFERING);
• THE ABILITY TO SEIZE OPPORTUNITIES AS THEY ARISE (E.G. YOU ARE A RETAIL STORE
OWNER AND AN OPERATOR WOULD LIKE TO BRING A BIG GROUP OF VISITORS ON A SUNDAY
AFTERNOON WHEN YOU’RE NOT USUALLY OPEN);
BEST PRACTICES OF TOURISM
PRODUCT DEVELOPMENT (CONT.)

• KNOWLEDGE OF VISITOR NEEDS AND BUYING PATTERNS (E.G. YOUR MARKET RESEARCH
SHOWS THAT MILLENNIALS USE THEIR PHONES TO RESEARCH A DESTINATION SO YOU
UPDATE YOUR WEBSITE TO BE MOBILE-FRIENDLY); AND

• FAMILIARIZATION WITH COMPETITORS’ PRODUCTS AND PRICING (E.G. YOUR STANDARD

FISHING TRIP IS SIMILAR TO OTHER TOURISM OPERATORS SO YOU PRICE YOURS SLIGHTLY
LOWER TO BE MORE ATTRACTIVE TO COST-CONSCIOUS VISITORS.)
NEW TO THE WORLD

These are entirely new products that create a new market or significantly
alter existing markets. They represent groundbreaking innovations and
often involve pioneering technology or concepts.
NEW PRODUCT LINES

New product lines are extensions of existing brands or product portfolios.

They leverage the brand's reputation and customer base to introduce
related products that cater to different needs or segments.
PRODUCT LINE ADDITIONS

Product line extensions are variations or enhancements of existing

products within the same category or brand family. They offer new features,
flavors, sizes, or formulations to meet evolving consumer preferences.
IMPROVEMENTS AND REVISIONS

Improvements or revisions involve enhancing existing products by

upgrading features, functionalities, or design elements. These changes aim
to address customer feedback, stay competitive, and maintain product
relevance.
REPOSITIONED PRODUCTS

Repositioned products involve changing the target market or positioning

strategy of existing products to appeal to different consumer segments or
address emerging trends.
LOWER PRICES PRODUCTS

Products may be repositioned to align with evolving consumer preferences,

lifestyle changes, or societal trends. By staying attuned to market
dynamics, companies can adapt their products to remain relevant and
meet the evolving needs of consumers.
THANK YOU