Perishability is a key concept in the tourism industry. It refers to the fact that tourism products, such as hotel rooms, airline seats, and tour packages, cannot be stored or inventoried like physical goods.
Once the moment has passed, they are gone forever. This makes perishability an important consideration for both tourism businesses and customers alike.
Impact on Tourism Businesses:
For tourism businesses, perishability can have both positive and negative impacts. On the one hand, it creates a sense of urgency among customers to book their travel plans as soon as possible.
This can lead to higher demand and prices during peak seasons. For example, hotels in popular tourist destinations may charge more during school holidays or public events.
On the other hand, perishability also means that tourism businesses must manage their capacity carefully to avoid overbooking or underbooking their services. Overbooking can result in dissatisfied customers who are turned away at check-in, while underbooking can lead to lost revenue for the business.
Impact on Customers:
For customers, perishability can mean missing out on travel opportunities if they do not plan ahead or act quickly enough. For example, they may not be able to get a seat on a sold-out flight or find a room at their desired hotel during peak season.
However, perishability can also create a sense of exclusivity and excitement for customers who do manage to secure their travel plans in advance. They may feel like they have access to something that others do not – such as front-row seats at a concert or a private tour of an attraction.
Managing Perishability:
To manage perishability effectively, tourism businesses must use strategies such as revenue management and yield management. Revenue management involves setting prices based on demand forecasts and adjusting them in real-time to optimize revenue. Yield management is similar but involves managing capacity by allocating resources based on demand patterns.
Tourism businesses also need to be flexible and adaptable in their approach to managing perishability. They must be able to respond quickly to changes in demand or unexpected events, such as weather disruptions or political unrest.
Conclusion:
In conclusion, perishability is an important concept in the tourism industry that affects both tourism businesses and customers. It creates challenges and opportunities for businesses, and requires them to use effective management strategies to optimize revenue and capacity.
For customers, it means being aware of the importance of planning ahead and acting quickly to secure travel plans. By understanding the concept of perishability, both businesses and customers can make informed decisions that lead to successful travel experiences.