Podcast
Questions and Answers
What is capacity in the context of service-oriented tourism?
An organization's ability to render or provide services to its customers.
What is demand in the tourism industry?
The volume of goods and services customers require at a given time.
What happens when there is excess demand?
Balanced demand at optimum capacity means the organization is overworked.
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What is the primary objective of managing demand?
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What defines a predictable cycle in demand?
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What can cause random demand fluctuations?
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What is one approach to managing demand?
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Study Notes
Demand and Capacity in Tourism
- Demand: The volume of goods and services customers want.
- Supply: The number of goods or services available for customers.
- Capacity: An organization's ability to provide services to its customers.
- Productivity: An organization's ability to make goods and services efficiently.
Managing Demand
- Excess Demand: When demand exceeds maximum capacity, leading to lost opportunities and profit.
- Demand Exceeding Optimum Capacity: Crowded, leading to lower service quality and customer dissatisfaction.
- Balanced Demand and Supply: Ideal situation where capacity is full but not strained, and customers receive good service without delays.
Understanding Demand
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Market Segment Demand Pattern: Identify customer profiles and analyze demand patterns.
- Predictable Cycle: Regular increases and decreases in demand at specific intervals (hourly, daily, weekly, monthly, or seasonal).
- Random Demand Fluctuation: Demand is unpredictable, influenced by factors like weather, health incidents, natural disasters, and terrorism.
Approaches to Demand Management
- Leave Demand and Take No Action: No management interference, leading to potential quality issues.
- Reduce Demand During Peak Periods: Increase prices to encourage customers to use less busy times, increasing profitability during low periods.
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Description
This quiz explores the concepts of demand, supply, capacity, and productivity within the tourism industry. It highlights how to manage demand effectively, aiming to balance customer satisfaction with organizational capabilities. Understanding market segment demand patterns and their implications is crucial for successful tourism management.
