The Supply side of Business Tourism
hello everyone and now we have come to the last session of this week we will conclude the discussion on concept meaning types and significance of business tourism today first first let us quickly reminisce what is demand and supply side of business tourism the market price at which the supply of an item equals the quantity demanded development at a tourism destination is shaped by the demand for tourism in that country thus the demand for tourism in any country is shaped by tourism opportunities and tourism opportunities represent a mix of attractions what is the very first thing that comes to your mind while considering a business venture the very first thing that one needs to consider is whether there will be any demand for the product or service being planned to offer and will that demand be enough to financial and otherwise survival of the business before answering this question one needs to understand what is demand in economic sense demand is supposed to be there when there is the desire among the potential customers for the product or service being on offer along with the willingness and ability to pay in more technical sense demand is the quantity or volume of product or services that the potential buyers are willing and able to pay at a given price in a given time frame in this present unit we shall apply the concept of demand to tourism business and understand various facets of Tourism Demand on the other hand supplier refers to the availability of goods and services it refers to the availability of goods and services as a given price in the given time frame imagine a scenario you are trying to book a flight and it is shown that on a particular price no seats are available but on the next higher price seats are available this explains the relevance of price and Supply at One Price there was no supply of air seeds but on the higher price Supply was available present unit will also discuss the concept of Tourism Supply and various factors affecting it the supply side of the business tourism the supply of business travel and tourism is a complex phenomena because of the different types of business business tourism each with their own specific supply chain tourism Supply can also be online and offline depending upon the mode of purchase of Tourism products tourism Supply involves following Provisions number one tour packages number two tour components number three supplementary services including Visa facility number four creative tourism products however we can produce a generalized clarification ific ation that can divide the supply side into four overall categories which are Illustrated as follows business travel and tourism supply side have been categorized in four categories number one buyers number two suppliers number three intermediaries and specialist agencies and number four miscellaneous services for the business travel and tourism industry buyers categories are as follows they could be corporate they could be associate or could be public sector buyers who are corporate buyers as a corporate buyer you are a purchasing agent for your organization your primary responsibilities are the research and procurement of products that your business needs the corporate buyer is someone employed by a private sector Enterprise buying business travel Services can be the main or total role for an employee or it may be an occasional task within a much broader job description the main industries which organize business tourism events include energy medical Computing engineering and financial services for example research has shown that people involved in purchasing in the corporate sector can have a wide variety of different job titles and may have received little or no formal training in business travel and tourism it is clear that personal assistants and secretaries play a major role in buying business travel services in the corporate sector sales and marketing staff are also heavily involved in this activity several other characteristics of corporate buyers the leading or planning time for many corporate events is measured in days and weeks rather than months or years 71% of corporate buyers would return to a venue if they were happy with it 55% of buyers said they would like to see a classification or grading system for venues more than 80% of buyers were satisfied with the venue they had used most recently corporate buyers made relatively little use of trade fairs and Publications to obtain information well-prepared buyers are not myopic they know that the only good deal is the one in which everyone wins who is an associate buyer as an associate buyer you are part of the supply chain and Logistics Department of a company your primary Duties are to help manage inventory and purchase high quality products at the lowest price for your employer associate buyers is a term that covers a multitude of different types of Association Rogers in 1998 identifies six types number one professional and trade associations whose members join because of their Employment Number Two voluntary associations and societies whose members join to further an interest belief or hobby it could be for charity for religious organizations for political parties or for trade unions most of these organizations are nonprofit making but they normally have to cover their costs they usually therefore have very clear budgets for business tourism events which they must not exceed public sector buyers a public sector buyer is an individual or organization that purchases goods or services for the government the term can also refer to the process of procuring these items the role of the public sector buyer is critical in ensuring that the government entity they work for obtains the best possible value for the taxpayers money in order to do this they must have a thorough understanding of the procurement process and be skilled in negotiation and contract ract management public sector buyers Central and local government statutory agencies are often operating on very tight budgets the health and education sectors are two important public sector activities which are heavily involved in organizing business tourism events in general public sector buyers are employees for whom buying business tourism Services is only a minor part of their job most events are organized by buyers but increasingly private companies associations and public sector bodies are using specialist intermediaries to plan and manage their event now who are the suppliers what is the role of Tourism suppliers the role is creating travel packages preparing tickets and confirming bookings contacting leads prospects and customers buying or reserving products in bulk to resell to businesses or Travelers the suppliers are Airlines hotels Cruise companies car rentals Excursion providers travel insurance companies tour operators and wholesale companies destinations venues transport accommodation and ancillary Services what is the importance of d destinations in business tourism system the tourism destination serves as the vital element of the business tourism system as they serve as the geographic location where tourists travel to experience numerous attractions and activities conference organizers attach greater importance to location than to any other single Criterion When selecting their sites location may be expressed in in terms of town city region or country the widely accepted term to describe each of these is destination a destination is usually a discrete area with identifiable boundaries each destination must contain a range of venues facilities attractions Supply services and infrastructure destinations are usually marketed by public sector bodies or joint public private partnership agencies but most of the elements of the destination are in private ownership venues venues are the places where business tourism events actually take place whether they are conferences meetings exhibitions training courses incentive travel packages or product launch sites hotels are perhaps the best known venues for meetings and conferences in particular but there are different types of hotel venue including City Center hotels motels located on major roads Coastal Resort Hotels Country House hotels in rural locations Etc organizers are increasingly looking for more unusual venues to make their events special these may include the following like sporting venues example golf courses football grounds and race courses which offer high-profile venues historic buildings example castles and stately homes theme parks transport venues example cruise ships faeries and trains museums the right venue for any business event will have stunning structure elegant and luxurious Furnishings remarkable views and a pleasant Ambience these ensure the guest can have an excellent experience and transform their impression of your company to a positive fun they will be more willing to utilize your products and services increasing sales and expanding your market share if your business operates in a highly aggressive industry this can give you an edge over your competition over your competitors a positive impression will also increase your negotiating ability with suppliers and business associates secure better deals and reduce production costs your Revenue will increase and your company will have adequate income to invest in areas that require more funding such as marketing and Human Resource Management transport clearly is vital to business tourism in that it moves the business traveler to their desired destination and then moves them around the destination corporate transportation services benefit business events by providing convenience professionalism time efficiency and reduce stress for attendees enhancing the overall event experience all forms of Transport are used in business tourism industry like Air transport scheduled and charter flights private aircraft air taxis chartered helicopters then rail transport like scheduled Railways and steam Railways Road Transport like private cars scheduled buses chartered coaches Car hire and Taxi Seas water transport like fairies and cruise ships let's just imagine this attendees arriving in style relaxed and ready to engage That's The Power of a wellth thought out transport plan it sets the tone for the event offering a glimpse into the organization's attention to detail and care for its guests remember one thing transportation isn't just a logistical detail it's a key player in the event success it's about making every Journey memorable safe and impactful accommodation is clearly required for all residential business tourism most of that used is commercial accommodation although some business Travelers stay with friends and relatives there are several aspects of the link between accommodation and business tourism including the following number one accommodation establishments can be both venues and places to sleep and delegates can meet in one hotel but sleep in another number two organizers can meet the needs of different delegates by offering different types of accommodation at varying price levels number three some accommodation establishments can encourage people to attend conferences because of their Fame and high quality reputation if they are the conference venue number four is accommodation just accommodation does not just mean hotels it can also include time share developments self-catering complexes University Halls of residents youth hosts cruise ships and sometimes on Wilderness Based training courses or incentive travel packages no formal accommodation may be provided as participants will be expected to survive in a different atmosphere alog together alternatively they may simply be accommodated in tents accommodation together with travel is usually the largest element in the budget for a conference delegate accommodation providers notably hotel chains have provided an increasing variety of facilities to attract the business tourist from in room computer access to business centers to a wide variety of meeting rooms for many hotels business tourism of all types is the source of the majority of their revenue ancillary Services business travel in tourism requires a range of other ancillary services including internet developers audio visual equipment suppliers interpreters and translators badge makers lighting Specialists caters Marque hire computer hire mobile conveniences corers photographers designers public relations Consultants direct marketing agencies recruit recruitment agencies and event Personnel providers entertainment research organizations exhibition Constructors security exhibition display makers sign makers fireworks suppliers speaker groups florists ticket agencies gift and souven suppliers training Specialists graphic artists video conferencing Specialists Insurance Services Freight forwarders and Furniture hire sometimes the existence in a destination of a particular ancillary Services May influence an organizer's decision about destinations for business tourism events for example a company arranging a high-tech product launch may choose a destination which has expert information which has expert information technology and audio visual companies located there while we have divided these suppliers into five categories it is important to recognize that there is a great interdependence between all five elements the business tourism product and experience utilizes all five of these and there is also interdependency between these suppliers the intermediaries and the buyers what are travel intermediaries the simplest definition of a travel intermediary is a distribution agent that participates in the sale or brokerage of travel and tourism related products and services there are a number of types of specialist intermediary performing different roles in different sectors of business travel and tourism which are listed below types of intermediaries in business tourism professional conference organizer organizing a whole meeting conference or aspects of it such as venue funding Financial arrangements or social program organization venue finding service finding rooms for the conferences and meetings is another task conference Production Service they specialize in actual staging of the event including lighting special effect and sound systems incentive travel agency they organize incentive travel packages for clients destination management companies specialist ground handlers who handle practical Arrangements in destinations corporate hospitality company they focus on organizing corporate hospitality and entertainment events either as Standalone events or as part of other events business travel agency they provide travel agency services for business miscellaneous services for the business travel and tourism industry they are the trade media industry trade fairs professional bodies Consultants National tourism organizations Education and Training providers we can also split the supply site into compulsory supplies that is those Services which are required for all business travel namely transport then sectoral supplies are those Services which are specific to particular business tourism sector such as exhibition venues for the exhibition sector then optional suppli Services which may be used to enhance the product or experience but which are not an essential part of it such as bars and entertainment conclusion as this week's talks end we pause to consider the in-depth examination of three critical topics related to business tourism our investigation has been thorough and and informative covering everything from comprehending the complexities of its definition nature and types to dissecting the structural complexities that support prosperous business tourism initiatives the knowledge gained in this week opens doors to a more profound comprehension of the dynamic interactions between supply and demand providing insightful viewpoints for the next business tourism Endeavor the following weeks will cover other significant and informative discussions for you [Music]
2025-03-28 15:15
