Characteristics of Travel and Tourism » Products and Services

What you'll learn this session

Study time: 30 minutes

The different types of travel and tourism products
The range of services offered in the travel and tourism industry
How products and services are bundled together
The difference between tangible and intangible products
How products and services meet different customer needs

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Introduction to Travel and Tourism Products and Services

The travel and tourism industry offers a huge variety of products and services designed to meet the needs of different travellers. Understanding these offerings is essential for anyone studying travel and tourism. In this session, we'll explore what these products and services are, how they're bundled together and why they matter to customers.

Key Definitions:

Products: Physical items or experiences that tourists can purchase or consume.
Services: Activities performed by tourism providers that benefit tourists.
Tangible products: Physical items that can be touched, seen and used.
Intangible products: Non-physical experiences or services that can't be touched but can be experienced.

🏦 Tangible Products

These are physical items tourists can touch, see and take with them:

Souvenirs and merchandise
Travel guides and maps
Food and drinks
Luggage and travel accessories
Photographs and postcards

🎫 Intangible Products

These are experiences and services that tourists can't physically touch:

Guided tours and excursions
Entertainment shows and performances
Customer service
The atmosphere of a destination
The feeling of relaxation at a spa

Core Travel and Tourism Products

The travel and tourism industry revolves around several key product categories that form the backbone of most holiday experiences. Let's explore each of these in detail.

🏨 Accommodation

Accommodation is where tourists stay during their travels and comes in many forms to suit different budgets and preferences:

Budget Options

Hostels, campsites, budget hotels and guesthouses offer affordable places to stay with basic amenities.

Mid-range Options

Three-star hotels, bed and breakfasts and holiday rentals provide comfortable stays with more amenities.

Luxury Options

Five-star hotels, resorts and boutique hotels offer premium experiences with top-quality service and facilities.

✈ Transportation

Transportation products get tourists to, from and around their destinations:

Air travel: Commercial flights, charter flights, private jets
Rail travel: Regular trains, high-speed trains, luxury trains like the Orient Express
Road travel: Coaches, buses, car hire, taxis
Sea travel: Ferries, cruise ships, yacht charters
Local transport: Public transport, hop-on-hop-off buses, bike rentals

🌏 Attractions and Activities

These are the experiences that often form the main reason for travel:

Natural attractions: Beaches, mountains, national parks, waterfalls
Cultural attractions: Museums, art galleries, historical sites, monuments
Entertainment: Theme parks, water parks, zoos, theatres, concerts
Adventure activities: Skiing, scuba diving, hiking, bungee jumping
Wellness activities: Spas, yoga retreats, thermal baths

Case Study Focus: The London Eye

The London Eye is a prime example of a successful tourism product. Built for the millennium celebrations in 2000, it was only meant to be temporary but became so popular it's now a permanent fixture on London's skyline. It offers:

A tangible product: The physical experience of riding in a capsule
An intangible product: The views and the feeling of seeing London from above
Added services: Fast-track tickets, champagne experiences, private capsules

The London Eye attracts over 3.5 million visitors annually, showing how a well-designed tourism product can become an iconic attraction.

Essential Travel and Tourism Services

Services are just as important as physical products in the travel and tourism industry. They enhance the tourist experience and often make or break a holiday.

💬 Information Services

These help tourists plan and navigate their trips:

Tourist information centres
Travel guides and apps
Destination websites
Concierge services
Maps and signage

📅 Booking and Reservation Services

These help tourists secure their travel arrangements:

Travel agencies (online and high street)
Booking websites and apps
Airline and hotel reservation systems
Ticket booking for attractions
Tour operator services

🍽 Food and Beverage Services

These cater to tourists' dining needs and can be a key part of the travel experience:

Restaurants: From fast food to fine dining
Cafés and coffee shops: For quick refreshments
Bars and pubs: For drinks and socialising
Food tours: Exploring local cuisine
All-inclusive meal plans: Common in resorts and cruises
Room service: In-room dining at hotels

👓 Ancillary Services

These additional services enhance the overall travel experience:

Currency exchange: Converting money into local currency
Travel insurance: Protection against travel risks
Luggage services: Storage, transfer and delivery
Wi-Fi and connectivity: Staying connected while travelling
Childcare and kids' clubs: For family-friendly holidays
Translation and interpretation: Overcoming language barriers

Product and Service Bundles

In the travel and tourism industry, products and services are often bundled together to create complete experiences for travellers. These bundles can offer better value and convenience.

🎓 Package Holidays

Package holidays combine multiple travel components into one purchase:

Basic packages: Typically include flights and accommodation
All-inclusive packages: Include flights, accommodation, meals, drinks and some activities
Tailor-made packages: Customised combinations of travel components
Special interest packages: Focused on specific activities like skiing or golf

Case Study Focus: TUI Group

TUI Group is the world's largest travel and tourism company and a master at bundling products and services. They own:

Airlines (like TUI Airways)
Hotels and resorts
Cruise ships
Travel agencies

This vertical integration allows TUI to create seamless package holidays where they control the entire customer journey. For example, a TUI customer might fly on a TUI plane to stay at a TUI hotel with TUI-operated excursions. This bundling creates convenience for customers and higher profits for TUI.

Meeting Different Customer Needs

Travel and tourism products and services must cater to diverse customer needs and preferences. Understanding these needs is crucial for businesses in the industry.

👪 Family Travellers

Need family-friendly accommodation, kids' activities and convenient meal options. Products like family rooms, kids' clubs and child discounts are essential.

💼 Business Travellers

Need efficient transport, good Wi-Fi, meeting facilities and convenient locations. Services like express check-in and business lounges are important.

🏠 Luxury Travellers

Seek exclusive experiences, personalised service and high-quality amenities. Products like private tours, butler service and fine dining are key.

🌍 Accessible Tourism

An increasingly important area is accessible tourism, which caters to travellers with disabilities or specific access needs:

Accessible accommodation: Rooms with wheelchair access, visual or hearing aids
Adapted transport: Vehicles with ramps or lifts
Accessible attractions: Museums with audio descriptions, tactile exhibits
Specialised services: Sign language guides, assistance animals policies

The accessible tourism market is worth billions of pounds globally and is growing as the population ages and awareness increases.

The Future of Travel and Tourism Products and Services

The travel and tourism industry is constantly evolving to meet changing customer demands and technological advancements:

Personalisation: Increasingly tailored products and services based on customer data
Sustainability: More eco-friendly options like carbon-neutral hotels and low-impact tours
Technology integration: Virtual reality previews, AI concierges and contactless services
Experience-focused offerings: Shift from traditional sightseeing to immersive experiences
Wellness tourism: Growing focus on health and wellbeing products and services

Key Takeaways

Remember these important points about travel and tourism products and services:

Products can be tangible (physical) or intangible (experiences)
Core products include accommodation, transport and attractions
Services enhance the tourist experience and often make it complete
Bundling products and services creates convenience and value
Different customer segments have different product and service needs
The industry is constantly evolving to meet new demands and technologies

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