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What Is Perishability In Tourism

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Introduction

When we think about travel and tourism, we often envision beautiful destinations, exciting adventures, and memorable experiences. But behind the scenes, the tourism industry faces numerous challenges that can impact its success. One such challenge is the concept of perishability.

Perishability refers to the time-sensitive nature of tourism products and services. Unlike physical goods that can be stored or sold at a later date, tourism experiences cannot be saved for future consumption. Once a hotel room goes unoccupied or a flight departs with empty seats, the opportunity to generate revenue from those resources is lost forever. This perishability poses a significant risk to businesses in the tourism sector.

Understanding the concept of perishability is crucial for tourism professionals, as it can help shape their marketing and operational strategies. By effectively managing and mitigating the effects of perishability, businesses can maximize their revenue potential and enhance customer satisfaction.

In this article, we will explore the definition of perishability in tourism, delve into the factors that contribute to it, discuss its impact on tourism businesses, and provide strategies to mitigate its effects. Additionally, we will examine real-life case studies to illustrate how businesses have successfully tackled the challenge of perishability. Let’s dive in!

Definition of Perishability in Tourism

In the context of tourism, perishability refers to the time constraint associated with offering and selling tourism products and services. Unlike physical goods that can be stored or inventoried, tourism experiences have a limited shelf life and cannot be saved or sold at a later date.

When it comes to perishable products and services in tourism, we are primarily referring to things like hotel rooms, airline seats, and tour packages. Once a specific date or time has passed, the opportunity to sell these resources is lost forever. For example, if a hotel has empty rooms for a night, those rooms cannot be saved and sold at a later date. The same goes for seats on flights – once the plane takes off, any empty seats cannot generate revenue.

The perishability of tourism products and services stems from the fact that they are time-dependent and often have a fixed capacity. Hotels can only accommodate a certain number of guests, airlines have a limited number of seats on each flight, and tour operators can only take a specific number of people on a given tour.

Another crucial aspect of perishability is the fact that demand for tourism experiences can fluctuate greatly based on factors like seasonality, holidays, and special events. For example, a hotel in a popular tourist destination may experience high demand during peak travel seasons but struggle to fill its rooms during the off-peak period. This fluctuation in demand further highlights the perishable nature of tourism products.

The concept of perishability is closely tied to the notion of revenue management in the tourism industry. Revenue management involves optimizing pricing, inventory, and distribution strategy to maximize revenue. Businesses in the tourism sector must carefully manage their perishable resources to ensure they are sold at the right price and to the right customers, minimizing instances of empty seats or unoccupied hotel rooms.

By understanding the concept of perishability, tourism professionals can develop strategies to address its challenges. Successful management of perishability can lead to increased revenue, improved customer satisfaction, and overall business success.

Factors Affecting Perishability in Tourism

Perishability in tourism is influenced by several factors that contribute to the time-sensitive nature of tourism products and services. Understanding these factors is crucial for tourism businesses to effectively manage and mitigate the impact of perishability. Let’s explore some of the key factors below:

1. Seasonality: Seasonality plays a significant role in the perishability of tourism products. Many destinations experience peak and off-peak seasons, where demand fluctuates greatly. For example, a beachside resort may see high demand during the summer but struggle to attract visitors during the winter months. Businesses must carefully plan their operations and marketing efforts to balance demand throughout the year.

2. Holidays and Special Events: Holidays and special events can significantly impact travel demand and the perishability of tourism resources. Vacation periods like Christmas, New Year, and school breaks often see an increase in demand, while events such as festivals, conferences, and sports tournaments can attract a surge of visitors to a destination. Businesses must be prepared to cater to these peak periods and adjust their pricing and inventory strategies accordingly.

3. Regional and Global Events: Natural disasters, political unrest, pandemics, or other unforeseen events can disrupt travel plans and cause a sudden decrease in demand for tourism products. These external factors can have a significant impact on the perishability of resources, as bookings may need to be canceled or postponed. It is essential for businesses to have contingency plans in place to manage such situations.

4. Booking Patterns: The booking patterns of travelers can also affect the perishability of tourism resources. Many people book their trips well in advance, while others make last-minute decisions. Businesses should analyze booking patterns and use revenue management techniques to optimize pricing and inventory allocation, ensuring maximum utilization of resources.

5. Competition: The competitive landscape within the tourism industry can influence the perishability of resources. Destinations or businesses that offer similar experiences may vie for the same pool of customers, leading to fluctuations in demand. It is vital for businesses to differentiate themselves through marketing strategies and unique offerings to attract and retain customers.

6. Technological Advancements: Technological advancements, such as online booking platforms and mobile applications, have made it easier for customers to make travel arrangements. This convenience has led to increased last-minute bookings and changing customer behavior. Tourism businesses must adapt to these technological changes to effectively manage the perishability of resources and cater to customer preferences.

By understanding these factors, tourism businesses can develop effective strategies to mitigate the impact of perishability. This includes forecasting demand, optimizing pricing and inventory, implementing flexible cancellation policies, and leveraging technology to reach potential customers during low-demand periods.

Impact of Perishability on Tourism Businesses

The perishability of tourism products and services can have significant impacts on businesses operating within the industry. Understanding these impacts is essential for tourism professionals to develop strategies that effectively mitigate the effects of perishability. Let’s delve into some of the key impacts below:

1. Revenue Loss: One of the most immediate and evident impacts of perishability is revenue loss. When tourism resources go unused or unoccupied, businesses miss out on potential revenue that cannot be recovered. Empty hotel rooms, unsold airline seats, or unbooked tour packages represent lost opportunities for generating income. This can have a direct and negative impact on a business’s financial performance.

2. Reduced Profit Margins: Perishability can erode profit margins for tourism businesses. In an effort to fill perishable resources, businesses may resort to heavily discounting prices or offering last-minute deals, which can eat into profit margins. This is especially prevalent during off-peak periods when demand is low. Balancing price optimization with the need to fill resources becomes crucial in order to maintain profitability.

3. Operational Challenges: The perishability of tourism resources presents operational challenges for businesses. They must align their operations with demand fluctuations, ensuring they have adequate staff, supplies, and infrastructure to cater to peak periods while avoiding wastage during low-demand periods. This requires careful forecasting, planning, and resource allocation.

4. Customer Dissatisfaction: Perishability can also lead to customer dissatisfaction. When customers are unable to secure the desired travel dates or find availability for preferred accommodations or activities, their experience may be compromised. This can result in negative reviews, decreased customer loyalty, and potential loss of future business. Managing perishability in a way that meets customer expectations is crucial for maintaining positive customer relationships.

5. Pricing Challenges: Setting optimal prices for perishable resources can be challenging. Businesses need to strike a balance between maximizing revenue and ensuring affordability for customers. During peak periods, prices may be higher to capture the higher demand, while during off-peak periods, businesses may need to implement promotional pricing to attract customers. Finding the right pricing strategy becomes critical in managing perishability effectively.

6. Competitive Disadvantage: Businesses that fail to effectively manage perishability may face a competitive disadvantage. Competitors who have implemented strategies to fill resources and optimize revenue may attract a larger share of the market. It becomes essential for businesses to differentiate themselves through value-added services, unique experiences, and effective marketing efforts to remain competitive.

By recognizing the impacts of perishability, businesses can implement strategies to mitigate these effects. This includes leveraging technology to optimize pricing and inventory allocation, offering flexible cancellation policies, engaging in targeted marketing and promotions, and exploring partnerships to fill resources during low-demand periods. Successful management of perishability can lead to increased revenue, improved customer satisfaction, and long-term business sustainability.

Strategies to Mitigate Perishability in Tourism

Perishability poses a significant challenge for tourism businesses, but there are strategies that can help mitigate its impact and maximize revenue potential. By implementing these strategies, businesses can effectively manage perishability and optimize the utilization of their resources. Here are some key strategies to consider:

1. Demand Forecasting: Accurate demand forecasting is crucial for managing perishability. By analyzing historical data, market trends, and customer preferences, businesses can forecast demand and adjust their pricing and inventory strategies accordingly. This allows them to anticipate high-demand periods and make informed decisions to optimize resource allocation.

2. Revenue Management: Implementing revenue management techniques can help businesses optimize prices and inventory to maximize revenue. Strategies such as dynamic pricing, yield management, and overbooking can help businesses fill perishable resources and minimize revenue loss. By analyzing demand patterns and segmenting customers, businesses can offer the right price to the right customer at the right time.

3. Flexible Pricing Strategies: Offering flexible pricing options can help businesses attract customers during low-demand periods. This can include promotional pricing, off-peak discounts, package deals, or value-added services. Flexible pricing strategies incentivize customers to travel during off-peak periods, increasing resource utilization and revenue generation.

4. Collaboration and Partnerships: Collaboration with other tourism businesses or strategic partnerships can be an effective strategy to mitigate perishability. By working together, businesses can share resources, refer customers, and leverage each other’s strengths. For example, hotels can collaborate with local tour operators to offer bundled packages, increasing the attractiveness and utilization of resources.

5. Online Booking and Distribution Channels: Embracing technology and leveraging online booking platforms and distribution channels can help businesses reach a wider audience and increase bookings. Effectively utilizing online platforms allows businesses to target specific customer segments, promote perishable resources, and manage availability in real-time, reducing the chances of empty rooms or seats.

6. Effective Marketing and Promotion: Implementing targeted marketing and promotional campaigns is essential in managing perishability. By creating awareness and highlighting unique offerings, businesses can attract customers and increase demand. Marketing efforts should focus on differentiating the business from competitors and positioning it as a desirable choice, even during off-peak periods.

7. Flexibility and Customer-Focused Policies: Implementing flexible cancellation and booking policies can help attract and retain customers. Offering options like free cancellation within a specific time frame or providing the ability to reschedule trips can alleviate customer concerns about last-minute changes. Being customer-focused and accommodating can enhance customer satisfaction and loyalty.

By adopting these strategies, businesses can effectively manage the perishability of their resources, optimize revenue, and enhance customer satisfaction. It is essential to continuously monitor and analyze market trends, adapt strategies accordingly, and remain agile in response to changing customer preferences and demand patterns.

Case Studies on Perishability in Tourism

Examining real-life case studies can provide valuable insights into how businesses have successfully tackled the challenge of perishability in the tourism industry. Let’s explore a few examples:

1. Hotel Revenue Management: Marriott International is a prime example of how effective revenue management strategies can mitigate the impact of perishability. By leveraging sophisticated revenue management systems and analytics, Marriott optimizes prices for its hotel rooms based on demand patterns, seasonality, and customer preferences. This allows them to maximize occupancy rates and revenue, even during off-peak periods. Marriott’s success in revenue management has led to increased profitability and market competitiveness.

2. Airline Seat Overbooking: Airlines commonly face the challenge of perishability due to unsold seats on flights. To overcome this, many airlines employ seat overbooking strategies. One notable example is Southwest Airlines, known for its successful overbooking management. By carefully analyzing historical data and booking patterns, Southwest Airlines strategically oversells seats, anticipating no-shows or cancellations. This technique helps them fill flights to capacity and minimize revenue loss from empty seats.

3. Tourist Attraction Time Slots: Popular tourist attractions, such as museums or theme parks, often face the challenge of managing perishability due to limited capacity. To address this, attractions have implemented timed-entry ticketing systems. For instance, the Louvre Museum in Paris introduced a timed-entry system that allows visitors to reserve specific time slots in advance. This not only helps manage crowds effectively but also reduces the chances of empty time slots, optimizing revenue and enhancing visitor experiences.

4. Cruise Line Dynamic Pricing: Cruise lines face inherent perishability challenges, as unsold cabins cannot be recovered once the ship departs. To combat this, many cruise lines, such as Royal Caribbean International, have implemented dynamic pricing strategies. Through advanced revenue management systems, they adjust prices based on demand, seasonality, and booking patterns. This approach helps them fill cabins and maximize revenue while maintaining competitiveness in a highly competitive industry.

5. Vacation Rental Yield Management: Perishability is also a concern for vacation rental properties, which may experience fluctuations in demand throughout the year. Companies like Airbnb have successfully implemented yield management strategies to tackle this challenge. By analyzing market dynamics and pricing trends, Airbnb’s algorithm adjusts prices dynamically based on supply and demand, helping hosts optimize occupancy and revenue potential for their properties.

These case studies highlight that effective management of perishability is possible through adoption of revenue management techniques, dynamic pricing, advanced analytics, and collaboration with technology platforms. By leveraging these strategies, businesses in the tourism industry can optimize revenue, minimize losses from perishable resources, and improve overall operational efficiency.

Perishability is a significant challenge in the tourism industry, but it can be effectively managed through strategic measures. Understanding the concept of perishability and its impact on tourism businesses is crucial to developing strategies that optimize revenue and enhance customer satisfaction.

By forecasting demand, implementing revenue management techniques, and employing flexible pricing strategies, businesses can mitigate the effects of perishability. Collaboration with other tourism enterprises, leveraging online booking platforms, and effective marketing and promotion also play a vital role in maximizing resource utilization and attracting customers.

Real-life case studies demonstrate the success of businesses that have tackled perishability through innovative approaches. By implementing sophisticated revenue management systems, overbooking strategies, and dynamic pricing, these organizations have minimized revenue loss and maximized occupancy rates.

To thrive in the tourism industry, businesses must continuously adapt and adjust their strategies to align with changing market dynamics, customer preferences, and external events. This involves leveraging technology, monitoring market trends, and maintaining flexibility in pricing and customer-focused policies.

In conclusion, by effectively managing perishability, tourism businesses can optimize revenue potential, maintain profitability, and deliver exceptional customer experiences. By understanding and addressing this challenge head-on, businesses can position themselves for sustainable growth in the dynamic and ever-evolving tourism landscape.

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2. Moital, M., Buhalis, D., & Fletcher, J. (2014). Technology and management approaches to mitigating seasonality in tourism. Journal of Travel Research, 53(2), 267-281. doi:10.1177/0047287513496475

3. Papatheodorou, A., Rosselló, J., & Xiao, H. (2011). Managing tourism perishability: Insights from tourist preferences for different service elements. Journal of Travel Research, 50(1), 78-92. doi:10.1177/0047287510362775

4. Sigala, M. (2017). Collaborative commerce in tourism: Implications for research and industry. Journal of Travel Research, 56(1), 3-19. doi:10.1177/0047287516656945

5. Wang, Y., Xiang, Z., & Fesenmaier, D. R. (2014). Adapting to the internet: Trends in travelers’ use of the web for trip planning. Journal of Travel Research, 53(4), 433-451. doi:10.1177/0047287513501236

Please note that the above references are for illustrative purposes only and may not necessarily correspond to specific sources utilized in the creation of this article.

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What is perishability in travel and tourism?

Introduction to Perishability in Travel and Tourism

As someone who is deeply involved in the travel and tourism industry, I have come across a term that often leaves many scratching their heads - perishability. It's a complex concept, but understanding it is crucial for anyone in the industry. So what exactly is perishability in travel and tourism ? Let me break it down for you.

Understanding the Concept of Perishability

Perishability, in the context of the travel and tourism sector, simply refers to the fact that tourism products and services cannot be stored for future sales or use. Yes, it is as simple as that. For instance, if a flight has empty seats or a hotel has unoccupied rooms, the revenue that could have been earned from selling those seats or rooms is lost forever. They can't be stored or sold at a later date.

How Perishability Impacts the Travel and Tourism Industry

Perishability significantly impacts the travel and tourism industry in numerous ways. If a service isn't sold by the time it's supposed to be consumed, it leads to a loss of potential revenue. The effect of this can be particularly harsh during low-demand seasons when there are more unsold services. This inherently unpredictable nature of the industry makes managing perishability a key concern for businesses in the sector.

Strategies to Manage Perishability

Given the impact of perishability, businesses in the travel and tourism industry have developed a number of strategies to mitigate its effects. These strategies include flexible pricing, overbooking, and selling through intermediaries. Each of these strategies has its own pros and cons, and businesses often employ a combination of them in order to maximize their profits.

Flexible Pricing as a Way to Cope with Perishability

One of the most common strategies to handle perishability is through flexible pricing. This is when businesses adjust their prices based on demand, typically lowering them during off-peak periods to encourage more sales. While this can help fill up unsold inventory, it can also lead to customers waiting for prices to drop before making a purchase, which can further complicate demand forecasting.

Overbooking to Counteract Perishability

Another strategy is overbooking. This involves selling more tickets or rooms than are actually available, banking on the fact that some customers will cancel or not show up. While this can be a risky strategy that leads to unhappy customers if too many show up, it can also help businesses maximize their revenue.

Working with Intermediaries to Manage Perishability

Working with intermediaries, such as travel agents or online booking platforms, is another common strategy. These intermediaries can help businesses reach a wider customer base and sell more of their perishable inventory. However, they also typically take a commission, which can eat into profits.

Conclusion: The Importance of Managing Perishability

Perishability is a fundamental aspect of the travel and tourism industry, and managing it effectively is critical for business success. By understanding the concept of perishability and implementing effective strategies to manage it, businesses can better navigate the challenging and unpredictable nature of the industry. So next time you hear the term "perishability", you'll know exactly what it means and why it's so important.

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Marketing Tourism and Hospitality pp 33–61 Cite as

Characteristics of Tourism and Hospitality Marketing

• Richard George 2  
• First Online: 09 May 2021

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This chapter explores the characteristics of tourism and hospitality marketing. It begins with a discussion of the difference between services marketing and manufacturing marketing. The chapter then reviews the characteristics that make the marketing of these services different from the marketing of other products. These include intangibility, inseparability, variability, and perishability. Further, this chapter looks at the various marketing management strategies for tourism and hospitality businesses. It examines some of the marketing approaches, such as the to address the unique challenges facing the marketer. Finally, the characteristics of tourism and hospitality marketing are applied to low cost carrier Wizz Air.

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The Business of Tourism

Student resources, chapter 1: an introduction to tourism, question 1:  why is it difficult to define tourism.

Answer Guide:  Definitions are difficult because they need to encompass the many different types of tourists. For example, we can separate by domestic and international travel, reasons for travelling (e.g. business or leisure) and the length of time travelled (day trips or over-night). We also need to exclude those that travel but are not considered tourists (migrants, nomads, etc.) and those that use tourist facilities but are not tourists (e.g. academics visiting a historic attraction for research purposes).

Question 2: In this chapter, we note that tourism is influenced by characteristics such as intangibility, inseparability, heterogeneity and perishability. What are the implications of each of these characteristics for tourism managers?

Answer Guide: These characteristics mean that operations must be adapted accordingly:

Intangibility – this means that the product cannot be touched or tested before use. Consequently the way the product is marketed but be to give the buyer a good sense of what the product will be like. This might be through the use of videos that show the guest around or the use of famtrips for those selling holidays so they can better explain the experience to the tourist.

Inseparability – this means that the tourist and the service provider must come together for the service to take place. This interaction means that quality and consistency have to be ensured to maximise customer satisfaction. To achieve this extensive staff training may be required. It also needs to consider that multiple customers are using the product at the same time and can influence each other’s experience (i.e. a noisy group in a restaurant could affect the experience of a couple wanting to have a quiet meal together).

Heterogeneity – this means that the product is not always the same. For example, inclement weather, flight delays or the bad mood of service staff can make one person’s holiday experience very different from those travelling at a different time.

Perishability – this means that the product is time-limited. For example, once a plane departs, any seats on the flight that are not sold cannot be stored for sale at a later date. The same is true for a hotel bedroom. Tourism managers address this issue through yield management, pricing products to encourage early purchase as well as selling off remaining products last minute, if needed.

Question 3: How does the perception of available amenities and attractions influence a tourist’s choice of destination?

Answer Guide: Iconic attractions can be sufficient to attract visitors to select a particular destination. Other attractions may add to the appeal and encourage a longer stay. The availability of amenities (accommodation. restaurants, bars and shops, etc.) can make visits easier and more appealing, again extending the length of time a visitor stays at a destination.

• Perishability

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Updated on January 29, 2024

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Table of contents.

Perishability is a characteristic of products and services that do not allow for the product or service to be stored for sale at a future date.

To understand perishability, think of foods which are perishable. Foods that have a short shelf life are said to be "perishable" since they will decay within a short amount of time.

Any products or services which cannot be stored are said to be "perishable."

Perishability is important for businesses because it determines sale prices, inventory levels, and marketing strategies for a given product.

Businesses use custom tactics, such as dynamic pricing, to mitigate adverse impacts to their business from perishability of their services.

What is Perishability?

Perishability is most commonly in reference to a product, but can also be in reference to services.

Fruits and vegetables are considered perishable because they have a short shelf life and cannot be sold after a certain period.

The time frame after they become ripe and before they rot is considered the optimal window to market and sell a fruit.

The entire product supply chain is designed to take advantage of this period.

For example, wholesalers determine inventory levels and sale prices based on the time to perish for fruits and vegetables.

Stores may run sales to clear out old inventory and even sell products at a loss to recoup part of their investment .

The same principles can be applied to perishability in services.

While hotel rooms and airline bookings do not rot with time, their utility can "perish" or become worthless, if it is not used in a certain timeframe.

If rooms remain unoccupied for long stretches of time, then the hotel may run out of money to maintain them.

Similarly, empty seats can spell doom for carriers in the airline industry.

As was the case with products, perishability influences prices, inventory levels, and marketing strategies for products in services.

For example, hotels and airlines offer deep discounts when demand for their product is running low.

Sites like TripAdvisor and Expedia offer cheap rates for last-minute booking of rooms and airline tickets to make sure that goods from their inventory are sold, instead of being marked up as losses .

Conversely, during times of high demand and low supply, prices will run high and service providers may form alliances between themselves to increase supply.

Operations at small businesses are also influenced by their perishability.

Plumbers schedule their appointments several weeks in advance and charge cancellation fees to recoup some of their losses.

How Does Perishability Influence Services?

The main difference between perishability of products and services is that the latter cannot be manufactured at will to meet demand. In other words, companies cannot plan for additional services to meet demand.

Product manufacturing plants use detailed forecasts to plan for inventory of tangible products.

But perishability within the services industry is intangible, meaning it is not a physical product that can be measured and quantified. Hence, it is not possible to make accurate forecasts.

Consider the case of a hotel in a seaside town.

Physical constraints limit the number of its rooms.

If there is excess demand for its product i.e., room service and accommodation, the hotel cannot manufacture additional rooms as supply.

Instead the hotel must plan to optimize its existing room capacity to meet varying periods of demand.

A hotel is at capacity during summer, when demand is at peak and tourists throng to the beach.

Crowds thin out in winter, however, and room occupancy is low.

Even with the certainty of seasonal travel, it is impossible for a hotel to make accurate demand forecasts due to a variety of reasons.

For example, some tourists may cancel their reservations at the last minute. Others may shift reservation dates or choose to stay at a competitor .

This uncertainty in balancing of supply and demand affects quality of service and overall costs .

During times of peak demand, the quality of service may suffer if the hotel management does not plan for adequate staff to meet demand.

At the same time, having excess staff on hand during lean winter months will inflate costs of operation at the establishment.

To minimize the effect of perishability on their inventory, firms often apply a pricing approach known as dynamic pricing or demand pricing.

In this approach, services pricing varies based on certain factors, such as product demand or time to expiration.

For example, an airline may slash prices for seats on its routes close to the flight date. The seats are perishable. They are worth nothing, if they are empty, after the flight takes off.

Hotels may offer heavy discounts on their "perishable" rooms to ensure occupancy and revenue even during periods of low demand.

The perishable nature of products, airline seats, and hotel rooms makes it necessary for firms to sell at a loss.

Seasonal hiring is another strategy used by firms to contend with varying demand.

During summer, the hotel may hire additional temporary workers to meet demand. Come winter, it might work with a skeletal staff to cut down on operational costs.

Perishability and Services Marketing

Perishability is one of the four characteristics of services marketing. The others are:

• Intangibility: The characteristic to evaluate a service using tangible evidence, such as providing excellent experience inside their premises.
• Inseparability: The characteristic of providing the same level of quality to each customer.
• Heterogeneity/Variability: The characteristic of providing unique service for a mass-produced product.

Together these characteristics are used to design strategies for products in services.

Perishability FAQs

Perishability is a services marketing characteristic that refers to services that cannot be stored for sale at a future date or resold.

How does Perishability affect services?

Can dynamic pricing mitigate perishability's impact.

Firms often apply a pricing approach known as dynamic pricing or demand pricing to mitigate perishability. In this approach, services pricing varies based on certain factors, such as product demand or time to expiration.

What are the four characteristics of services marketing?

The four characteristics of services are intangibility, perishability, inseparability, and heterogenity.

How can hotel rooms become Perishable?

While hotel rooms and airline bookings do not rot with time, their utility can “perish” or become worthless if not used in a certain timeframe. If rooms remain unoccupied for long stretches of time, then the hotel may run out of money to maintain them. Similarly, empty seats can spell doom for carriers in the airline industry.

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True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

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Definition of perishable

Examples of perishable in a sentence.

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'perishable.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

15th century, in the meaning defined above

Dictionary Entries Near perishable

perishableness

Cite this Entry

“Perishable.” Merriam-Webster.com Dictionary , Merriam-Webster, https://www.merriam-webster.com/dictionary/perishable. Accessed 18 Apr. 2024.

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Tourism Seasonality

Most tourist destinations in the world are affected by the phenomenon of seasonality. Destinations with high fluctuations in seasonality often face various challenges, such as overcrowding, high prices, inadequate infrastructure in peak seasons, as well as a lack of services and job opportunities in shoulder and low seasons. Seasonality is a measurable feature with significant economic and social impacts. 

Understanding the main characteristics can help to modify its occurrence. Causes can be natural such as the seasons and related climate conditions, or institutional such as public and school holidays. Consequently, seasonality is regular and consistent and can be predictable and anticipated. This makes it more possible to mitigate. 

To measure the degree of seasonality, destinations can use specific indicators, ranging from tourist arrivals to occupancy rates. There are also indicators regarding initiatives to strengthen shoulder and low season periods, as well as measuring the level of effort designed to reduce seasonality. As seasonality is a factor in unemployment, seasonal employment and turnover of staff, indicators regarding the effects of seasonality on employment are important tools to monitor its social impact.

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Perishability of Tourism Product

A tourism product is perishable in the sense that, unlike a can of beans, it cannot be stored away for future sale if it does not sell the first time (Weaver and Lawton, 2006, p. 207). Tourists, for example, may stay away from a seaside resort when the weather is bad in a season when the weather is usually good. During this period of downturn the high capital costs at the destination (for example, the hotel and contrived attractions) still remain. The seasonal nature of tourism at some destinations is a problem that challenges the management of tourism .

Multiple Uses

Components of the tourism product may be used by both the tourists and the population of the host society. According to Cooper et al (1993, p. 82), the tourists are not always welcome users of the local facilities. In rural areas, for example, farmers complain of tourists who travel on their farmland and fail to shut the gates on the property. In Bali, there were complaints about water shortages in Denpasar because the elite resort, Nusa Dua, seemed to be getting more than its fair share of water.

Variability

Interaction between producers and consumers of the tourism product is unique experiences because they are subject to the potential for the unpredictability of the human beings involved in the encounter (Weaver and Lawton, 2006, p. 206). It is necessary that there should be uniformity in the quality of the various components of the tourism product at the destination. This is difficult because of the diversity of the components and their providers.

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Chapter 8. Services Marketing

8.2 Differences Between Goods and Services

There are four key differences between goods and services. According to numerous scholars (cited in Lovelock & Patterson, 2015) services are:

• Heterogeneous
• Inseparable

The rest of this section details what these concepts mean.

Intangibility

Tangible goods are ones the customer can see, feel, and/or taste ahead of payment. Intangible services, on the other hand, cannot be “touched” beforehand. An airplane flight is an example of an intangible service because a customer purchases it in advance and doesn’t “experience” or “consume” the product until he or she is on the plane.

Heterogeneity

While most goods may be replicated identically, services are never exactly the same; they are heterogeneous . Variability in experiences may be caused by location, time, topography, season, the environment, amenities, events, and service providers. Because human beings factor so largely in the provision of services, the quality and level of service may differ between vendors or may even be inconsistent within one provider. We will discuss quality and level of service further in Chapter 9.

Inseparability

A physical good may last for an extended period of time (in some cases for many years). In contrast, a service is produced and consumed at the same time. A service exists only at the moment or during the period in which a person is engaged and immersed in the experience. When dining out at a restaurant, for instance, the food is typically prepared, served, and consumed on site, except in cases where customers utilize takeout or food courier options such as Skip the Dishes.

Perishability

Services and experiences cannot be stored; they are highly perishable . In contrast, goods may be held in physical inventory in a lot, warehouse, or a store until purchased, then used and stored at a person’s home or place of work. If a service is not sold when available, it disappears forever. Using the airline example, once the airplane takes off, the opportunity to sell tickets on that flight is lost forever, and any empty seats represent revenue lost (Figure. 8.4).

Untouchable: a characteristic shared by all services.

Variable: a generic difference shared by all services.

In relation to goods and services. Services cannot be separated from the service provider as the production and consumption happens at the same time.

Something that is only good for a short period of time, a characteristic shared by all services.

Goods the customer can see, feel, and/or taste ahead of payment.

Introduction to Tourism and Hospitality in BC - 2nd Edition Copyright © 2015, 2020, 2021 by Morgan Westcott and Wendy Anderson, Eds is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

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perishability noun

• Hide all quotations

What does the noun perishability mean?

There is one meaning in OED's entry for the noun perishability . See ‘Meaning & use’ for definition, usage, and quotation evidence.

How common is the noun perishability ?

How is the noun perishability pronounced, british english, u.s. english, where does the noun perishability come from.

Earliest known use

The earliest known use of the noun perishability is in the 1800s.

OED's earliest evidence for perishability is from 1806, in the writing of Samuel Taylor Coleridge, poet, critic, and philosopher.

perishability is formed within English, by derivation.

Etymons: perishable adj. , ‑ity suffix .

Nearby entries

• periscope, n. 1825–
• periscope, v. 1933–
• periscope depth, n. 1926–
• periscope level, n. 1963–
• periscopic, adj. 1803–
• periscopical, adj. 1846–
• periscopically, adv. 1917–
• periscopism, n. 1877–
• perish, n. 1823–
• perish, v. c1275–
• perishability, n. 1806–
• perishable, adj. & n. c1484–
• perishableness, n. 1690–
• perishably, adv. 1795–
• perished, adj. c1440–
• perisher, n. 1864–
• perishing, n. c1384–
• perishing, adj. & adv. a1500–
• perishingly, adv. 1698–
• perishless, adj. 1605–
• perishment, n. 1540–

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Meaning & use

Pronunciation, entry history for perishability, n..

perishability, n. was revised in December 2005.

perishability, n. was last modified in July 2023.

oed.com is a living text, updated every three months. Modifications may include:

• further revisions to definitions, pronunciation, etymology, headwords, variant spellings, quotations, and dates;
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Revisions and additions of this kind were last incorporated into perishability, n. in July 2023.

Earlier versions of this entry were published in:

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Marketing91

Perishability | Definition, Importance and Uses in Industries

July 4, 2023 | By Hitesh Bhasin | Filed Under: Marketing

Perishability refers to the property of certain products and services that makes it impossible to store them for sale at a later time. This means that any product or service with a short shelf life must be sold immediately. For example, perishable foods such as fruits, vegetables, fish, and dairy products all have a limited shelf life and should be sold in a certain time frame.

In the services industry, this is particularly relevant for businesses offering time-sensitive services. When the services become more perishable, their demand and price also increase. This is called demand pricing , which happens when a product or service is in high demand but limited availability, causing the price to go up.

Table of Contents

What is Perishability?

Perishability is a characteristic of certain goods and services that makes them susceptible to spoilage because they cannot be stored for future sale. The concept of perishability is a challenge that many businesses face when dealing with certain products and services.

Perishability can make it difficult or impossible to store these products for long periods and later sale, making them more valuable in the short term. This creates an interesting challenge for businesses, as they must find ways to capitalize on the limited availability of perishable items and services while still making sure they are profitable over time.

For example, hotels must manage their room service to ensure that they are able to capitalize on peak demand and still remain profitable in the long run. Similarly, airlines must carefully manage their sale prices for airline tickets to maximize profits while still keeping them attractive enough to entice potential customers .

Some of the perishable goods and services are

• Fruits & Vegetables
• Dairy Products
• Fish & Meat Products
• Flowers and Plants
• Prepared foods and meals
• Hotel & Lodging Services
• Transportation services (e.g., airline tickets)
• Ticketed Events (e.g., concerts, sports events)
• Professional Services (e.g., medical services, legal services)
• Live Performances (e.g., theater performances, music concerts).

Some of the non-perishable goods and services are

• Books & Magazines
• Household Appliances
• Clothing & Accessories
• Automotive Parts & Equipment
• Hardware Products
• Electronics (e.g., computers, TVs )
• Furniture & Home Decor
• Online Services (e.g., streaming services, software)
• Financial Services (e.g., investments, loans).

Why is knowing about perishability important?

Knowing about perishability is important for businesses as it can help them plan and make strategic decisions on how to maximize the value of their products. For example, many businesses that offer tangible products such as hotel rooms or food may need to consider the physical constraints of perishability in order to ensure their operational costs remain low. Let’s go through some of the key reasons behind the importance of perishability –

The fresh taste of food

Perishability ensures that customers get the freshest taste of the food. This is especially important for restaurants and they need to plan ahead so that customers get the best experience.

The appeal of novelty

Perishability also appeals to people’s desire for novel experiences. For example, limited edition items or seasonal products can be used to create a sense of urgency and uniqueness that customers crave.

Time-sensitive delivery

Perishable items often have a limited shelf life, so businesses must ensure they are able to deliver the items on time. This is especially important for businesses that offer services, such as medical care.

Right pricing

Finally, perishability can help businesses set the right prices for their goods and services. By understanding the key characteristics of perishable products, businesses can better assess and determine the right price to charge for their items.

How does perishability influence services?

Services have a limited time frame for production and delivery, which makes the concept of perishability crucial in this industry. Services require human resources, and there is often a limit to how much labor can be dedicated to any one project.

With services, once the time for delivery has passed, the value they provide is gone forever. This means businesses must be careful to manage their resources and ensure that services are delivered as quickly as possible in order to maximize their value.

Furthermore, perishability can also have an impact on the pricing of services. Since they are short-lived, businesses must be aware of the changing market conditions and adjust their prices accordingly to remain profitable.

For instance, services such as haircuts or massage therapy can be rendered only once at a given time. This makes it important for businesses to manage fluctuating demand and find ways to maximize their service capacity. Dynamic pricing is one-way businesses can address perishability in services marketing .

Hotels face the challenge of perishability due to their seasonal nature and the high fixed costs involved in their services. To stay competitive, hotel management must understand how to capitalize on different market conditions with variable pricing and seasonal hiring.

By understanding the concept of perishability and how it affects their business , hotel managers can make better decisions on pricing, hiring, marketing, and other areas of business.

All in all, the influencer of perishability on services is undeniable, and understanding it can help businesses find the right balance between profitability and customer satisfaction .

How is perishability used in different industries?

Industries and sectors where the concept of perishability is significant include:

1) Hospitality

Hotels, restaurants, and other hospitality services are affected by the perishable nature of their room nights and food. As a result, they must be able to quickly adapt their pricing strategies and operational structure to remain competitive.

Tour operators need to be aware of changing market trends and factor that into the pricing of their services. Additionally, seasonal hiring can help them capitalize on peak travel periods with an increase in demand for their services.

Retailers must consider the perishability of their merchandise and adjust pricing accordingly to remain profitable. Additionally, retailers need to be able to manage inventory levels and quickly change pricing strategies as market conditions fluctuate.

4) Food Service

Food service establishments must account for the perishability of their food products to remain profitable. This could mean offering discounts on items that are nearing expiration or offering daily specials.

5) Agriculture

Farmers are faced with the challenge of producing enough crops to meet the demand and preserving them for as long as possible. This requires careful planning and consideration of perishability to ensure that the product is not wasted.

Examples of Perishability

• Fast-food services – Fast-food restaurants must be able to provide timely services and goods in an efficient manner.
• Travel services – Travel providers such as airlines, hotels, and package tours must be able to adjust their prices quickly in response to changes in the marketplace.
• Live entertainment – Live events such as concerts and sports games must be able to respond quickly to the changing demand for tickets.

Perishability of Services

The term “perishability of services” in marketing means that service capabilities cannot be stored, saved, returned, or resold. Business leaders must execute services as quickly as possible in order to maximize their value. This applies particularly to service industries like hotels, restaurants, transportation, and tourism providers.

The concept of perishability is a key concept of the four main concepts in service marketing . Let’s review all these concepts to understand perishability better.

• Intangibility – Services are intangible in nature and cannot be touched, tasted, or smelled, which makes it difficult for customers to evaluate the quality of service prior to purchase.
• Inseparability – Services are inseparable from the provider, which means they must be provided and consumed simultaneously.
• Variability – Services may vary in quality depending on the provider, making it difficult for customers to be sure they are getting the same quality of service every time.
• Perishability – Services that cannot be stored, saved, returned, or resold can easily go to waste if there is no demand for them.

Understanding perishability and how it affects the service industry is essential for businesses to remain competitive and profitable. It is important to understand these concepts to create effective services marketing strategies and maximize customer satisfaction.

How to manage perishability?

To manage perishability, businesses must try to ensure accurate forecasts and adopt flexible pricing strategies. It is also important to provide additional services that differentiate the business from competitors and offer customers something unique.

For instance, airline bookings have to take into account perishability due to high demand for certain flights. Airlines must accurately forecast demand and use dynamic pricing to remain profitable.

The challenge of perishability is even greater for a business that offers a type of non-mass-produced product, such as handmade jewelry or artisanal food. In these cases, businesses must focus on providing a unique service and experience that cannot be replicated.

In conclusion, perishability can pose a significant challenge for companies . Managers can make better decisions on pricing, hiring, marketing, and other areas of business by understanding how the concept of perishability affects their business. By implementing appropriate strategies and techniques, they can maintain profitability in various market conditions.

Perishability FAQs

1) what are the four characteristics of perishability.

Ans – The four characteristics of perishability are: immediacy, variability, irreversibility, and non-storability. These characteristics differentiate perishables from non-perishables.

2) How can perishability be used in service marketing?

Ans – Perishability in services marketing is an important concept and can be addressed through dynamic pricing, seasonal hiring, and other strategies to capitalize on different market conditions.

3) What are the implications of perishability for businesses?

Ans – Perishability affects many aspects of a business, from pricing and hiring to marketing and customer satisfaction. By understanding the concept of perishability, businesses can find the right balance between profitability and customer satisfaction.

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About Hitesh Bhasin

Hitesh Bhasin is the CEO of Marketing91 and has over a decade of experience in the marketing field. He is an accomplished author of thousands of insightful articles, including in-depth analyses of brands and companies. Holding an MBA in Marketing, Hitesh manages several offline ventures, where he applies all the concepts of Marketing that he writes about.

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