1. Holloway, Humphreys and Davidson, The Business of Tourism, 8 th Edition, © Pearson Education Limited 2009 Slide 4.1 The demand for tourism Chapter 4

2. Holloway, Humphreys and Davidson, The Business of Tourism, 8 th Edition, © Pearson Education Limited 2009 Slide 4.2 The Tourist’s Needs and Wants People have certain physiological needs and satisfying them is essential to their survival: they need to eat, drink, sleep, keep warm and reproduce- all needs that are also essential to the survival of the human race. Beyond those needs, we also have psychological needs that are important for our well-being, such as the need to love and be loved, for friendship and to value ourselves as human beings and have others value and respect us. * Abraham Maslow conveniently grouped these needs into a hierarchy

3. Holloway, Humphreys and Davidson, The Business of Tourism, 8 th Edition, © Pearson Education Limited 2009 Slide 4.3 Maslow’s hierarchy of needs Figure 4.1 Maslow’s hierarchy of needs (From A. Maslow, Motivation and Personality, 1987. Reprinted by permission of Pearson Education, Inc.)

4. Holloway, Humphreys and Davidson, The Business of Tourism, 8 th Edition, © Pearson Education Limited 2009 Slide 4.4 The motivation process Figure 4.2 The motivation process Travel may be one of several means of satisfying a need and, although needs are felt by us, we do not necessarily express them and we may not recognize how travel actually satisfies our particular needs.

5. Holloway, Humphreys and Davidson, The Business of Tourism, 8 th Edition, © Pearson Education Limited 2009 Slide 4.5 Motivators and facilitators Motivators –Factors that prompt purchase E.g. advertising and promotion, recommendation, film or TV programmes and stress Facilitators –Factors that enable purchase E.g. money, time, good health, accessibility and exchange rates

6. Holloway, Humphreys and Davidson, The Business of Tourism, 8 th Edition, © Pearson Education Limited 2009 Slide 4.6 Decision-making Extensive problem-solving Seeking out and considering a wide range of alternative products Limited problem-solving ‘Satisficing’ – deliberately reducing choice to avoid excessive decision-making Routinized response behaviour Little variation in choice over time, buying familiar brands or products Impulse purchasing Buying on impulse, little consideration given to the purchase

7. Holloway, Humphreys and Davidson, The Business of Tourism, 8 th Edition, © Pearson Education Limited 2009 Slide 4.7 AIDA model Figure 4.6 The AIDA model Marketing managers aim to stimulate demand by moving customers through the AIDA process

8. Holloway, Humphreys and Davidson, The Business of Tourism, 8 th Edition, © Pearson Education Limited 2009 Slide 4.8 Segmenting the travel market Geographic variables –Continent, country and state or county Demographic variables –Age, gender, occupation and income Psychographic variables –Aspiration, attitudes to travel Behavioural variables –Frequent purchaser? Heavy user? Point of purchase? –E.g. on-line, direct and agent

9. Holloway, Humphreys and Davidson, The Business of Tourism, 8 th Edition, © Pearson Education Limited 2009 Slide 4.9 Growth of the grey market in Britain By 2017, there will be more over 65s than under 16s By 2020, seniors will be taking 5 million extra holidays per annum By 2050, 25% of the population will be over 65 (versus 15% in 2007) Source: Government Statistics

10. Holloway, Humphreys and Davidson, The Business of Tourism, 8 th Edition, © Pearson Education Limited 2009 Slide 4.10 Social classification by employment This model has been criticised as social class is less reflective of purchasing patterns Figure 4.5 Social classification by employment, previous version

11. Holloway, Humphreys and Davidson, The Business of Tourism, 8 th Edition, © Pearson Education Limited 2009 Slide 4.11 Social classification by employment (Continued) Class % of UK population OccupationsExamples include 18 Large employers, higher managerial and professional Doctors, clergy 219 Lower managerial and professional Writers, artists 39 Intermediate managerial and professional Medical, legal secretaries 47 Small employers and own account workers Hotel, restaurant managers 57Lower supervisory and technical Plumbers, mechanics 612Semi-routine occupations Sales assistants, chefs 79Routine occupationsWaiters, couriers Table 4.1 Social classification by employment, new version

12. Holloway, Humphreys and Davidson, The Business of Tourism, 8 th Edition, © Pearson Education Limited 2009 Slide 4.12 Social classification by neighbourhood 2.0%Multi-ethnic low-income areas 2.3%Council estates in areas of greatest hardship 2.8%Council estates in areas of high unemployment 10.8%Council estates, better-off homes 3.6%Older residents in less prosperous areasF Striving 4.0%White collar workers, better-off multi-ethnic areas 9.6%New home owners, mature communitiesE Aspiring 10.7%Skilled workers in home-owning areas 13.6%Comfortable middle-agers, mature, in home-owning areasD Settling 3.8%Better-off executives, inner cities 2.3%Prosperous professionals, metropolitan 2.5%Affluent urbanitesC Rising 8.0%Well-off workers, family areas 4.1%Affluent executives, family areasB Expanding 2.6%Prosperous pensioners 2.1%Affluent greys 15%Wealthy achievers, based in suburbsA Thriving % of PopulationCompositionAspiration Table 4.2 Social classification by neighbourhood Source: CACI Limited, 2002

13. Holloway, Humphreys and Davidson, The Business of Tourism, 8 th Edition, © Pearson Education Limited 2009 Slide 4.13 Personality and travel destination choices: the allocentric–psychocentric scale Figure 4.7 Personality and travel destination choices: the allocentric–psychocentric scale Source: Plog, S *allocentrics – seeking variety, self-confident, outgoing and experimental *psychocentrics – tend to be more concerned with themselves and the small problems of life

14. Holloway, Humphreys and Davidson, The Business of Tourism, 8 th Edition, © Pearson Education Limited 2009 Slide 4.14 The lifecycle of a resort Figure 4.8 The lifecycle of a resort

15. Holloway, Humphreys and Davidson, The Business of Tourism, 8 th Edition, © Pearson Education Limited 2009 Slide 4.15 Changes in demand for tourism products Factors which are not predetermined or forecast –E.g. war, terrorism, epidemics and natural calamities Factors which are predetermined or forecast –E.g. social, cultural or technological changes in society