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What is Tourism Product? Definition, Types, Characteristics

  • Post last modified: 3 October 2021
  • Reading time: 14 mins read
  • Post category: Uncategorized

What is Tourism Product?

Tourism Products are a combination of goods and services demanded by a tourist during travel to and stay at a destination. These include natural, cultural and manmade attractions and facilities such as hotels, transport and ancillary services.

In this process, tourists derive an experience which varies from individual to individual. From a broader perspective, the sum total of experiences derived by the tourists during the entire trip can be considered as the product.

Table of Content

  • 1 What is Tourism Product?
  • 2 Definition of Tourism Product
  • 3.1 Natural Tourism Product
  • 3.2 Man-Made Tourism Product
  • 3.3 Symbiotic Tourism Product
  • 3.4 Event Based Tourism
  • 3.5 Site Based Tourism Product
  • 4.1 Intangibility
  • 4.2 Inseperatability
  • 4.3 Perishability
  • 4.4 Heterogeneity
  • 4.5 Essentially of Users Presence
  • 4.6 Complexity in Marketing
  • 4.7 Absence of Ownership

Definition of Tourism Product

Burkat and Medlik say tourism products to an array of integrated products, which consist of objects and attractions, transportation, accommodation and entertainment, where each element of the tourism product is prepared by individual companies and are offered separately to consumers (tourist/tourist).

The tourism “product” is not the destination, but it is about the experiences of that place and what happens there. – Chris Ryan

Economist M. Sinclair and Mike Stabler define the tourism product as a “composite product involving transport, accommodation, catering, natural resources, entertainment and other facilities and services, such as shops and banks, travel agents and tour operators.”

According to Suswantoro (2007:75) on substantially the understanding of tourism products “is obtained and the overall service felt or enjoyed by tourists since he left his residence to the tourist destination of his choice and to return home where she originally departed”.

Types of Tourism Products

Following figure describes the classification of Tourism Product:

Natural Tourism Product

Man-made tourism product, symbiotic tourism product, event based tourism, site based tourism product.

These are the products connected to the natural environment. Natural environment that constitutes natural resources which is related to area, climate and its settings, and the landscapes. These natural resources are the most important elements in a destination’s attraction. Such as countryside, climate, natural beauty, water, flora and fauna, wildlife, beaches, deserts, islands or any scenic attraction.

Some examples of natural tourism products in India are Marina beach- Chennai, Darjeeling hill station-West Bengal, Islands of Andaman & Nicobar- Andaman & Nicobar, Deserts of Thar-Rajasthan, etc

Something which is not natural, found in the destinations to attract the tourists. These are man-made creations. As per the tourism point of view they are made for pleasure, leisure or business.

Man-made tourism products are further divided into three subtypes:

  • Sites and areas of archaeological interest
  • Historical buildings and monuments
  • Places of historical significance l museums and art galleries
  • Political and educational institutions
  • Religious institutions
  • Fairs and festivals
  • Arts and handicrafts
  • Folklore l native life and customs
  • Amusement and recreation parks
  • Sporting events
  • Zoos and oceanariums
  • Cinemas and theatres
  • Night life l cuisines

Examples of Man-made tourism products are Ajanta and Ellora cave-Maharashtra (Cultural), Surajkund Craft Mela-Haryana (Traditional), Essel World-Mumbai, etc

This type of tourism product do not fall in any particular category because they are a blend of nature and man but the core attraction is nature. These are the natural resource that has been converted into a tourism product by maintaining and managing them.

In other words man has taken initiative to preserve the natural aspects of earth and also managed in a way to provide best possible services to the tourists who come for the visit, for example, accommodation, parking facilities, etc. Some examples are National Park or Wildlife Sanctuaries, Flower Festival, Marine Park, Aero and Water Sports, Botanical Garden etc.

In India, there are many national parks like Ranthambhore-Rajasthan, where tigers and many animals are preserved and tourists are given facilities like a jungle safari.

Product Here event is the main source of attraction. Tourist comes to observe and participate in the events. Events are temporary in nature and are often mounted in order to increase the number of tourists to a particular destination.

Some events are for a short time scale while other last for longer days. Sometimes events are mounted in those places where the tourist’s eye usually don’t reach such as unusual exhibitions.

Some examples of event-based tourism product include Camel Polo at Jaisalmer- Rajasthan, Kite flying in Ahmedabad-Gujarat, where tourists also participate and observes. In Snake boat race-Kerela, one can enjoy witnessing it. Short time scale event includes Republic day parade-New Delhi and long days event include Khajuraho dance festival-Madhya Pradesh.

It is a particular site or a place, permanent in nature which is the main source of attraction for the tourists. In India examples are like Taj Mahal, Beaches of Goa, Sunset at Kanyakumari, Temples of Khajuraho, etc.

Characteristics of Tourism Product

Following are the main characteristics of tourism products:

Intangibility

Inseperatability, perishability, heterogeneity, essentially of users presence, complexity in marketing, absence of ownership.

As discussed earlier in this chapter, tourism products are actually the services that are being sold to the tourists, and it’s not the goods. Services can’t be seen, smelled, felt or touched, it can only be experienced. What can be seen is their effect.

For example, a guide’s comments can be heard. A travel agents books a ticket from place A to B. The ticket is just a piece of paper, an entry pass for using the service. An airline provides the service of transportation, comfort and leisure. A thorough evaluation of the service before buying it is therefore impossible and leads customers to use other cues to help them assess the service like the interior of the restaurant, the appearance of the hotel entrance or the behaviour of the receptionist.

A service of a tourism product cannot be separated from the provider of the service. For most services, the producer and the seller are the same people. Services are manufactured and consumed at the same time. In the case of products, consumption takes place after production and often far away from the factory.

In the case of tourism products for example a guide has to be present to explain the attraction. A pilot has to be present to fly a plane. Both service providers and the service user have to be physically present for mutually satisfying the exchange of service. The visitor to a national park cannot experience counter service if the receptionist is not present, nor can the receptionist render the service is the visitor is absent.

The tourism product is highly perishable, which means it cannot be stored. For example, a hotel room or an aeroplane seat that is not sold on a particular day, is a lost sale. If the tourists don’t visit a particular place, the opportunity is lost. If the opportunity is lost, the moment is lost. This adversely affects the tourism business.

The demand has to be managed by the marketer in such a way as to ensure that as little capacity as possible is lost. The problem is unique for the tourism industry. Due to these reason sometimes heavy discount is offered by hotels or transport generating organization.

Services offered by most people are never the same. There is some degree of variability present in almost all types of services. This may be due to the extensive involvement of people in the production of service. This issue is not present when a machine dominates. Depending on the mood, behaviour, working style, efficiency and knowledge of the people variability exist.

For example, all air hostesses cannot provide the same quality service like the other. Yet again the same individual air hostess may not perform the same uniform service both in the morning as well as in the evening.

Even the tour package and the aircraft can’t be consistent of equal standards because an aircraft can de-shape the travelling pleasure into a nightmare and a holiday seaside is ruined by the prolonged rainy spell.

Another reason for variability of service is the involvement of customers in the process of product delivery and consumption system. For example, a musician performing at a program may not perform with uniformity. His performance will depend on the response and appreciation of the audience. Hence service varies from person to person, time to time and from situation to situation.

In travel and tourism businesses, service quality depends on uncontrollable factors and there is no sure way of knowing whether the service delivered matched what was planned or promoted, or what was expected by the customer.

Presence of the user is necessary to avail the service. The customer or the guest has to be personally present on the spot. It can’t be brought to the user. As in the case of other tangible goods, the buyer can avail the service from anywhere or from his home. But in the case of tourism products, it is not at all possible. The tourist has to go to the tourist attraction to experience the tour.

However the marketers here need an in-depth study of users behaviour, tastes, preferences, likes and dislikes so that expectations and realities coincide and satisfaction is made possible.

Tourism product involves complexity in marketing. It requires a lot of effort to convince a buyer. As in the case of travel agents. In order to sell their tour package they need to convince the customer by introducing various facilities, discounts and services. Product demonstration is bit difficult in the case of tourism product.

As in the case of tangible goods like television. As soon as we buy it, we become the owner of it. But this is not the case with tourism products. A tourism product when sold to the customer or tourist, he can only avail the service but can’t be its owner.

For example, while buying a hotel room, while buying a seat in an aircraft or a luxurious train, you can only take the facilities of the service for a certain time. You can’t be its owner for lifelong.

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As defined by UN Tourism, a Tourism Product is "a combination of tangible and intangible elements, such as natural, cultural and man-made resources, attractions, facilities, services and activities around a specific center of interest which represents the core of the destination marketing mix and creates an overall visitor experience including emotional aspects for the potential customers. A tourism product is priced and sold through distribution channels and it has a life-cycle".

Rural tourism

UN Tourism understands Rural Tourism as "a type of tourism activity in which the visitor’s experience is related to a wide range of products generally linked to nature-based activities, agriculture, rural lifestyle / culture, angling and sightseeing.

Gastronomy and Wine Tourism

As global tourism is on the rise and competition between destinations increases, unique local and regional intangible cultural heritage become increasingly the discerning factor for the attraction of tourists.

Mountain Tourism

Mountain Tourism  is a type of "tourism activity which takes place in a defined and limited geographical space such as hills or mountains with distinctive characteristics and attributes that are inherent to a specific landscape, topography, climate, biodiversity (flora and fauna) and local community. It encompasses a broad range of outdoor leisure and sports activities".

Urban Tourism

According to UN Tourism, Urban Tourism is "a type of tourism activity which takes place in an urban space with its inherent attributes characterized by non-agricultural based economy such as administration, manufacturing, trade and services and by being nodal points of transport. Urban/city destinations offer a broad and heterogeneous range of cultural, architectural, technological, social and natural experiences and products for leisure and business".

Sports Tourism

Tourism and sports are interrelated and complementary. Sports – as a professional, amateur or leisure activity – involves a considerable amount of traveling to play and compete in different destinations and countries. Major sporting events, such as the Olympic Games, football and rugby championships have become powerful tourism attractions in themselves – making a very positive contribution to the tourism image of the host destination.

Shopping Tourism

Shopping Tourism is becoming an increasingly relevant component of the tourism value chain. Shopping has converted into a determinant factor affecting destination choice, an important component of the overall travel experience and, in some cases the prime travel motivation.

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Products and Services

“Don’t give up and always keep on believing in your product. Because if you don’t, how can you make others believe in it?” − Niels Van Deuren, Founder, housinganywhere.com.

The tourism industry as a whole survives because of various tourism products and services. Tourism industry is flexible. The products of tourism cannot be easily standardized as they are created for the customers of varied interests and demands. As the tourism products are mainly the tourists’ experience, they can be stored only in the tourists’ memories.

Let us understand more about tourism products and services −

Types of Tourism Products

The tourism products are grouped into the following types −

Tourism Oriented Products (TOP)

These are the products and services created primarily for the tourists and also for the locals. These products need a great share of investments in private sector. A few of them are −

  • Accommodations; For example, Taj, ITC Hotels.
  • Transportation; For example, Owning taxis, luxury buses, and boats.
  • Retail Travel Agents
  • Tour Operators
  • Shopping Centers such as malls
  • Cinema Theatres such as PVR
  • Restaurants for Food and Beverages
  • Tourism Information Centers
  • Souvenirs Outlets
  • Museums, Temples, Gardens, and Theme parks

Residents Oriented Products (ROP)

Here, the products and services are created mainly for the local residents staying at a particular tourist destination. This category requires investment in public sectors more. Some of them are −

  • Public Parks
  • Banks and ATMs
  • Petrol Pumps
  • Postal Service

Intangible Products of Tourism

They include −

Bookings of accommodations, theatres, and at various sites.

Tourists’ experience by visiting a destination, eating at a restaurant, or performing an activity.

Tourists’ memory which is created by storing the details of events and experience on the tour. The high degree of satisfaction or dissatisfaction is often stored as a long term memory.

Transportation of tourists and their luggage from one place to another.

Tour Operator’s Products and Services

To realize the facilities and experience a tourism product offers, service is required by skilled and qualified staff. The tour operator provides the following typical products and services −

Accommodations

The tourist destinations are equipped with different types of accommodations. They cater for tourists’ stay at the destination.

Serviced − This type of accommodation is supported by skilled staff such as housekeepers, drivers, guides, and cooks.

Self-catering − This accommodation offers staying facilities but dining is required to be self-catered. It is equipped with cooking, fuel and facility, some basic supplies such as tea/coffee/sugar sachets, and a drinking water source.

Hotels − Budget rooms to 7* hotels with classy amenities. The hotels contribute a major share of imparting the experience to the tourists by providing best services and amenities.

Guest Houses − Owned by business or government organizations, which can be used by its staff and staff relatives.

Camping Sites − They are open sites often located in areas of lush greenery. They are equipped with clean place to pitch the personal tent, a water supply, and electric supply. Camp sites have common rest rooms.

Reservations

The tour operator is responsible for making reservations for special events or activities the tourists are interested in. At some places, the reservations are required to be done well in advance to avoid last minute hassles. The events or activities such as a music concert or a theatre show, visiting a theme park or a zoo, require people to secure seats or avail entry with prior reservations.

Guided Tours

The tour operators can arrange guided tours. Some qualified staff who can get access to the place, explain the importance of the place, support, and guide the participants through the entire visit. The guide is arranged to accompany the tour participants as a part of tour.

Transport Facilities

These facilities are for travelling from one place to another.

Surface Transport − It includes support of transport by road or water.

Air Transport − This is the support of transport by air, generally given for long distance travel. Many times the tours include a halt of a couple of hours at transit destinations. Today the airports are built and maintained as engaging tourist terminals by providing amenities such as spas, lounges, food joints, bars, and book shops, retail shops for selling authentic local food, clothes, and souvenirs.

Today the Airlines are no more backstage when it comes to caring for their customers. They offer loyalty programs to their customers under Frequent Flyer Program to encourage the customers to travel more and accumulate points and redeem them against travel or rewards.

Dining Facilities

The tour operators can book accommodation that provides dining facilities or it can tie up with the local restaurants which are ready to entertain groups. If the tour package is all inclusive, the tour operator pays for breakfast, lunch, and dinner. If not, the tourists need to pay from their own pocket.

7 Keys to creating a successful tourism product

crear un producto turístico

What is a tourism product?

Basic functions of a tourism product, keys to designing a tourism product, examples of tourism products.

Within the competitive tourism sector, innovation, and the offer of products to propose stands out as one of the real competitive advantages and differential elements to navigate with strength in this tough market.

The tourism product becomes an important resource to work to attract a different audience and diversify the philosophy and brand of our travel agency .

But… How do you create a successful tourism product? Let’s highlight the keys that will help you develop an optimal tourism product. Let’s start at the beginning…

The tourism product is defined as the total set of functionally interdependent tangible and intangible elements that allow the tourist to meet their needs and expectations.

From a marketing point of view, the tourism product is a resource that fulfills two very different tasks:

  • Each tourism product meets a need of its consumer through the benefits it incorporates. 
  • Tourism products are the means to achieve sales targets. The design of the tourism product itself is the claim to increase conversions. 

Also, it is necessary to point out the importance of knowing the type of customer we want to attract and whether we can offer a product that meets the unique expectations of the selected niche of customers . It is equally important when designing a tourism product to consider the special travel agency regime to know the fiscal responsibilities and also how each transaction should be accounted for.

Also, our travel agency must have a brand culture and philosophy that must be in line with the tourism products to design and sell.

Given that meeting the needs and expectations of the client is a key factor in creating a tourism product, we must look to the functions that this tourism product must perform.

It is, therefore, possible to list 6 priority functions to be resolved to outline our tourism product project:

  • Allows the tourist to participate in the main activity of the trip. 
  • Besides being a part of the main activity, it facilitates to live the total experience of the trip as the tourist wants. 
  • It facilitates transport to and from the destination , as well as within the destination itself. 
  • Enhance the social interaction of the tourist during the trip. 
  • Helps and simplifies travel preparation and management. 
  • It makes it easier for the tourist to remember and revive the trip , to share that trip and experience with other people. 

Note : The main activity can be defined as the objective to be carried out with this tourist package: ecological tourism, cultural tourism, etc…

Through these functionalities, it is already possible to have a basic outline of what our tourism product should contain.

It is time to show the main keys to consider in drawing a professional and highly competitive tourism product.

Keeping the tourist as the main axis of the tourism product, we will start with those keys related to the needs that urge a person to make a tourist trip.

Means and conditions for participating in the main activity of the trip 

Everything related to what is offered to the tourist to enjoy what he wants for the trip. 

Elements in the trip’s destination and the trip’s transportation, for example, luxury cruises, boats, or trains.

Natural, cultural conditions, people, socio-economic conditions of destination, events, facilities, equipment, goods, and services related to the main activity also come into play in this category.

Qualitative aspects to involve the tourist in the main activity

At this point, all those aspects that help establish how the tourist is to engage and interact in the journey are defined.

The issues can be very different:

  • Family trip or exotic destination 
  • Greater or less distance from the place of residence to destination. 
  • Luxurious or traditional atmosphere, etc… 

On the other hand, also, everything linked to all the comforts a tourist needs to visit a destination and consume its “attractions” must be covered.

Modes and other transport components

Clear and detailed definition of all transport systems enabling the transition from a place of residence to destination and vice versa, as well as within destination.

Elements for social interaction and tourist comfort

Everything related, and that allows the tourist to engage in leisure activities, communicate with others, socialize or simply keep informed and perform routine activities.

In this category, we can include accommodation, points of sale and/or shops selling food, public baths (outside accommodation), all kinds of services (communication, internet, etc…) sports and leisure facilities, cultural events, etc.…

These details are a priority and important as they strengthen the comfort and decision-making capacity of the client .

Preparation of the management and execution of the trip

In this section, all those aspects that facilitate and give transparency to everything related to the management of the trip come into the scene.

Everything here is important: All tourist information media such as travel guides, maps, national tourist organizations, travel-related websites, services provided by tour operators, travel agencies, companions, translators, certified travel guides vaccines, solar protection, medicine, and health services; passports, visas, travel insurance; credit cards and other financial services… up to the number of packages or suitcases to carry.

Practical details on participation in the main activity of the trip

The customer must leave nothing to the imagination, it must be all well presented.

Here, questions such as sale or rental of sports equipment, sports lessons, wine tasting, etc…

These are aspects that help the tourist in understanding the tourism product and in the benefits/experiences that he will draw from it .

Remember and relive your experiences

A tourism product must be a unique and remembered experience by the customer, to satisfy his wishes and leave a good note in our brand of a travel agency.

Thus, to stimulate sentimental or emotional value, it is interesting the idea of offering memories and gifts, usually with sentimental and symbolic values for tourists, is a point that adds value.

They allow tourists to remember and relive their experiences, thus prolonging the pleasure of the trip. They are also used to share the travel experience and to strengthen ties with others.

Tourism products are designed and adapted to the needs and desires of the selected audience. So, there are many possibilities. Here are some of the most popular tourism products:

Spiritual tourism

Spiritual tourism is tourism motivated by faith or for religious reasons . 

What is the tourist looking for? An experience based on a sacred pilgrimage, a journey led by faith, religion, and spiritual realization. The tourist seeks to satisfy some personal or spiritual need through tourism.

Therefore, the design of the spiritual tourism product must focus on these two points to find different forms and intensities of spiritual tourism motivated to a greater or lesser extent by religious or, on the contrary, cultural needs or in the search for knowledge.

Spiritual tourism provides the visitor with activities and/or treatments intended to develop, maintain, and improve the body, mind, and spirit . Many elements are incorporated that involve a learning experience.

A good example is the tourism products related to the Camino de Santiago. A product that offers everything the tourist/pilgrim wants:

  • Accommodations 
  • Transportation 
  • Support vehicles 
  • Guides 
  • Monitor… 

Wine tourism

Wine tourism or wine tourism is one of the most fashionable forms of tourism. It is the type of tourism around the culture and professions of wine and vineyards, being related to culinary and cultural tourism .

What is the wine tourist looking for? The main motivation is to experience wine tastings and buy products from the region, but also identify other very important issues: Socializing, learning about wines, entertainment, rural environment, relaxation…

The main activities are based on the visit to vineyards, wineries, wine festivals, and wine shows, for which the tasting of grape wine and/or the experience of getting to know the wine region.

For example, a well-known tourism product for wine lovers is that linked to the city of Haro , designed with such important elements as:

  • Hotels and other types of accommodation 
  • Round-trip transportation from the winery to the lodging location 
  • Visit wineries, wine libraries, restaurants. 
  • Activities are related to wine tasting, marriage… where the capacity to socialize and share experiences is encouraged. 

Ecotourism has grown in parallel with increasing society’s awareness of environmental protection.

Ecotourism is a type of tourism responsible for natural areas with special care in conserving the environment, sustaining the well-being of the local population, and involving knowledge and education .

What is the ecotourism tourist looking for? They are people with a great awareness of the environment, eager to know and be part of experiences that help the environment and others.

A good tourism product based on ecotourism should offer:

  • Activities that encourage cultural awareness by promoting respect for the place you travel and the community you visit. 
  • It will help to create cultural awareness by promoting respect for the place you travel and the community you visit (environmental education workshops, ecosystem observation…) 
  • Activities that promote the well-being of the local community, including the economy. Guided ecological tours with the consent and participation of residents. 

Ecotourism offers experiences that have a low impact on nature by preserving resources and protecting the environment.

A good example of ecotourism: Visit the local farmers’ fields in Chiapas, Mexico, learning how to make cocoa and supporting the conservation of their environment through product purchases on a guided tour.

Tour operators, travel agents, or travel agency management groups should consider these keys when creating and selling a successful tourism product. We must not forget that the tourism products respond effectively and attractively to the wishes, needs, and expectations of the selected type of customer , being a resource of great value to increase our brand image and customer loyalty.

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Cristóbal Reali, VP of Global Sales at Mize, with over 20 years of experience, has led high-performance teams in major companies in the tourism industry, as well as in the public sector. He has successfully undertaken ventures, including a DMO and technology transformation consulting. In his role at Mize, he stands out not only for his analytical and strategic ability but also for effective leadership. He speaks English, Spanish, Portuguese, and Italian. He holds a degree in Economics from UBA, complementing his professional training at Harvard Business School Online.

Mize is the leading hotel booking optimization solution in the world. With over 170 partners using our fintech products, Mize creates new extra profit for the hotel booking industry using its fully automated proprietary technology and has generated hundreds of millions of dollars in revenue across its suite of products for its partners. Mize was founded in 2016 with its headquarters in Tel Aviv and offices worldwide.

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Tourism Product Concept

Tourism Product Concept: Tourism product is usually as the amount of psychological and physical satisfaction it offers or delivers to the tourists when they are travelling to a new place or are on the way to a given destination it can be both domestic and international. Tourism products are more concerned towards services and facilities produced to fulfil the requirement of the consumers or the tourists.

world tourism day

Tourism product concept may be combined or amalgamated in nature i.e. the various attraction at a given destination, transportation facilities and other entertainment facilities result in full or 100% customer satisfaction. every element in tourism product is delivered by single supplier service or facilities like tour operator , airline companies, hotels and resorts etc. tourist products can be studied on the basis of four important elements viz. attraction, accessibility, accommodation and amenities.

Meaning of Tourism Product

Tourism product is a group of various components and elements which are combined together to satisfy the needs and wants of the consumers. The product in tourism industry is the complete experience of the tourist from the point of origin to the destination point and back to the origin point. The product in Tourism may be defined as the ‘sum total of physical and psychological satisfaction it provides to the tourist from the origin point to the destination and during their travelling route’.

Also read Tourism

The raw material in tourism industry is the natural beauty, Climate, History, Culture and people of the destination and some other important elements are the existing facilities or the infrastructure such as water supply, electricity, roads, transport , communication, services and other ancillary services. If any of these elements get missing, then it will completely destroy the whole experience of the tourist. Tourism products are offered in the market with some cost i.e. money. A Product could therefore be defined by its three characteristic: 

  • The product must be offered
  • It should satisfy some need or needs of the customers 
  • It should be exchanged for some value 

Also read more about Tourism Product Life Cycle

So, we can say that if the Tourism Product i.e. the sum total of a country’s tourist attractions, transport systems, hospitality , entertainment, and infrastructure is well designed and developed and then offered to the tourist this will ultimately result in consumer satisfaction. Tourism products are nothing but various services offered to the tourists, and falls under the category of service product. Tourism product is the prime reason for tourist to choose a destination. Tourism product helps in earning revenue for the destination. So all the tourism product should be properly preserved and promoted

A) Attraction

Attraction is the first and the most important element of tourism product, until unless there is an attraction, then only a tourist would be encouraged to visit a particular place. Attraction is a very important element as it determines the choice made by a tourist to travel to a particular place rather than another place or destination. An attraction can be of different types such as historical buildings and monuments, areas of archaeological interests, mountains, beaches, resorts, national parks, wildlife sanctuaries, Flora and Fauna, events like conferences, exhibitions, sports meet, world cups, music and art festivals etc.

You may may be interested to read about Aviation Industry

Demand for tourist products can be determined on the basis of upcoming trends in the market or current fashions. Present fashion in the market are helpful for analyzing and fulfilling the demand for different tourism products (which can include attractions, services and other amenities). Tourist visiting to hill stations for their natural beauty and panoramic views may choose to opt for some other destination due to current trends in the market and sometimes change in the fashion.

You may read History of Travel and Tourism

Peter has sketched up a list of the different attractions that are important in the tourism . Though, the attractions of tourism are, to a very large amount, geographical in character. Location and accessibility (whether a place or coastal or inland position and the ease with which a given place can be reached) are essential. Those who wish to seek wilderness and adventure may think of physical space at a destination.

Landscape or scenery is a mix of landforms; water and flora and has a beautiful and artistic value. Weather conditions, especially in relation to the amount of sunshine, temperature and precipitation (rain as well now), are of unique importance. Animal life might be a significant attraction, first in relation, to bird watching or viewing game in their natural habit and second, for sports purposes, e.g. hunting and fishing. Human’s influence on the natural landscape in the name of his settlements, archaeological remains and ancient monuments and is also a main attraction. Finally, a range of artistic elements folklore, artistic expressions, ways of life etc. offer valued attractions to large tourists.

B) Accessibility

Accessibility can be defined as means by which a person/tourist can travel or reach to particular place or destination. Tourist attractions can be of different types some may be accessible or some may be not by a mode of transportation . A tourist always looks up to a mode or means of transport in order to reach that particular place/attraction. Mode of transportation can be a coach, a car, an aeroplane, a ship or boat and a train that can enable or help a tourist to visit his desired destination. There are certain destinations which are not accessible by different modes of transport or inadequate transportation services, these destinations then turn into of a little value.  

Generally the tourist attractions that are situated close to a tourist generating area or market and are connected by a proper network of effective modes of transportation, experience a large number of tourist visits. Distance between the places of origin to the desired destination plays a crucial role in the movement of tourists and effect their choices in destination selection, proper connectivity between places or destination can act as motivation factor for tourists to visit a particular destination or place. Long distance destination increases the cost of travel for the tourists which somehow restricts the limits of different tourists travelling across places.

Time constraint and cost play a crucial role in the movement of tourists across the globe. An instance can be that of India. Almost two and half million tourist visitors for a country of the size of India may seem to be rather insignificant. Though, we see at certain things like the country’s distance from the affluent tourist markets of the world such as Europe, United States, Japan, Canada and Australia, one may determine that the long distance is one of the reasons liable for low tourist visits. It costs a tourist from these nations, quite a large amount, to travel to India for a vacation. It has been listed before that North America and Europe last to be major markets creating and getting areas for international tourist arrivals, accounting for as much as 70% and 20% respectively, of inbound tourist arrivals. Easy-going accessibility, thus is a main aspect for the development and growth of tourist arrivals.

C) Accommodation      

Lodging and other services balance the tourist attractions. Accommodation is very crucial and plays a central role and is very essential requirement of every tourist destination. As per the definition given by UNWTO, a person travelling to a new place from his place of origin must spend at least 24 hours at a particular destination so then only he/she would be considered a tourist. This tells about the importance of accommodation facilities at a different destination.

The demand for accommodation has always been there since ages. Therefore, the demand or the need for accommodation is met through variety of facilities. In the accommodation sector, the range and type of lodging is a bit wide-ranging and has experienced through different stages in the last couple of years. There is a decrease in the need for small hotels, boarding houses and other accommodation facilities. Large hotel chains have started to increase their share at famous tourist destinations and big metropolitans throughout the globe in more traditional holiday and sea- side resorts in Europe and elsewhere, large hotels are keeping their share of holiday resorts.

In the past few years, certain changes have arisen in the accommodation sector and the type of accommodation has totally transformed. The demand for non-traditional and informal types of lodging facilities have increased to a great extent. Holiday villages and concepts like home stays, condominiums and youth hostels are the current trends in the accommodation sector and popularity of these types of accommodations has increasing in the present times. Accommodation in itself has become an attraction in the modern times.

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In fact, a big group of travelers visit a specific town or destination simply since there is a first class luxury resort and hotel that offers outstanding facilities sand services for the entertainment of tourists. Few nations like Holland, France, Switzerland, Belgium and Austria have achieved a reputation for offering exceptional lodging with lavish food. Countless hotel companies away in different nations, specially the resort hotels have earned a status for their exceptional services, cuisines and other entertainment facilities. The French government for example, overlaid the way for tourist expansion of Corsica by introduction of a large hotel growth agenda. 

D) Amenities

Every tourist travelling to a new destination desires for world class facilities and services. In order to fulfill their demand huge efforts are made by the industry. High quality facilities are important aid to every tourist destination or center. For a coastal resort, services like swimming, boating, yachting, surf-riding and other amenities like recreation, dancing and other entertainment and amusement services are very essential for each and every tourist destination/center. Facilities can be of 2 kind’s natural, i.e. sea-bathing, beaches, possibilities of fishing, opportunities for trekking, climbing or viewing etc. and man-made, i.e. different kinds of entertainment facilities that can cater to the unique requirements of the various tourists. Outstanding beaches, sheltered from sunshine with palm and coconut trees and providing good bathing conditions makes a very goo the tourist center. Various other natural facilities like large water for the purpose of cruising or the chances for hunting and fishing are equally very significant.

Characteristics of Tourism Product 

Tourism products are mostly service goods that have different types or features. For instance, in business tourism management and planning are the services provided by different large convention centers and hotel chains. Various fair and festivals are the events that are provided for the entertainment and amusement only at a given time of the year and these are usually variable and perishable. In country like India numerous traditional/ancient attractions in the form of music and dance can be watched and experienced. There are different natural products which are been consumed by the tourist travelling to India like flora and fauna, wildlife. Following are some of the features and characteristics of tourism products:

Tourism Product

a) Intangibility of Tourism Product

Unlike a physical product, say, a train or television, there is no handover of ownership of products is included in tourism. The goods or products in tourism cannot be consumed or demonstrated before purchasing it. Instead, some installations, amenities, items of equipment are available for a certain or fixed period pf time and for a particular use. For instance, a hotel room is offered or provided for a given time frame or a seat in a train is provided for a couple of hours of the journey.

b) Psychological 

A tourism product is offered to provide or offer certain level of satisfaction to the consumers or tourist. A person/tourist acquires experience with the consumption of different tourist products. Experiences derived while interacting to new places, people and environments helps in the encouragement of potential customers and helps in attracting them to consume the products offered to the market.

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c) Highly Perishable

Usually a tour operator or a travel agent offer or sells various tourism products to the market, which are perishable in nature and cannot be stored or sustained for a longer time frame. Production of the products and services is only possible if there is a demand and the customers are actually present and if the customer buys the product it cannot be blocked, disturbed or customized. If the product is not consumed on time or is unused the chances are lost which means, if a tourist doesn’t buy the flight ticket on a given date, the chance at that time is lost or can say the validity of the seat is expired or is left unused. The reason can be heavy discounts or offers given by the airline company on the given date or during off season.

d) Composite nature of tourism Product

A tourism product is never offered or produced by a single enterprise there is an involvement of different parties (viz travel agent , hotels, airline company, tour guide etc.) when compared to a manufactured product. There is a involvement of various parties in providing or manufacturing a complete tourist product. The product shields broad experience of a holiday to a specific destination. And numerous suppliers and providers that supply to create this experience. For example, a hotel provides a food and rooms, travel agent makes booking for sightseeing and stay at different places, airline and rail provides seats etc.

e) Unstable Demand of Tourism Product

There is a problem or one can say a challenge for tourism products as tourism products are influenced by the seasonality, economic , political factors. For instance, there is a demand for the hill station in the summer season as people like to travel to cold places mostly places likes Manali, Shimla, Nainital, Mussorie etc. whereas the demand for coastal areas like Goa rises in the winters. There are different times of a year when there is a demand for a particular destination than other destinations. This is the time when there is a huge tension on the hotel bookings, transport system, the employment etc.

f) Fixed supply in the short run

Tourism product similarly as the factory-made products cannot be transported to the final consumers, the consumers have to go to the products offered to them. Product development is done on the basis of analysis of the taste and preferences, behavior, dislikes and likes of the consumers, so that the expectations and realities of the consumers. Therefore, the supply of the tourism product is limited in the short run and may be maximized on a long term basis depending upon the increasing demand pattern of the tourist product.

g) Absence of ownership in Tourism Product

Tourism products have absence of ownership. For instance, when you buy a product say a bike or a car, the possession of the same is reassigned to you, but when one rents a cab, he/she only buys the right to be transferred from one place to another, you neither own the driver nor the cab. Similarly, in case of tourism products like airline tickets, train tickets or a hotel room can be used for given time frame but not owned. Tourism products can only be purchased for using but the ownership of the same stays with the provider of the service or the product so, an Opera show can be watched but the performer cannot be kept.

 h) Heterogeneous nature of Tourism Product

Tourism is not a uniform product. Similarly, tourism product is not same, since they tend to change or vary in terms of quality and standard with the passage of time, unlike a television set or any other factory-made product. A flight or a tour package cannot be the same at all times. The reason behind the changing nature of the tourism products is a service and services are customers/consumer oriented. So there is variability in tourism products as all humans are not the same and vary in terms of their behavior, taste and preferences. For example, all workers working in a hotel cannot give the same excellence of facility and the same worker might not perform equally in the morning and evening. Therefore, the services cannot be uniforms or homogeneous.

Tourism products are first purchased and later on consumed that is why there is a high level of risk involved in purchasing before the consumption of the products. An element of chance of risk is always there in the process. For instance, a movie might not be as entertaining as it promises to be or a summer vacation in Goa may be disappointing due to bad weather or heavy rains.

j) Marketable

Tourism products are marketable at different markets. Firstly, both the regional and national organizations involve themselves in catering the potential customers/tourists to travel to different region/destinations across the country. Secondly, the individual firms are trying to market their own tourism products in order to cater potential customers.

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The future of tourism: Bridging the labor gap, enhancing customer experience

As travel resumes and builds momentum, it’s becoming clear that tourism is resilient—there is an enduring desire to travel. Against all odds, international tourism rebounded in 2022: visitor numbers to Europe and the Middle East climbed to around 80 percent of 2019 levels, and the Americas recovered about 65 percent of prepandemic visitors 1 “Tourism set to return to pre-pandemic levels in some regions in 2023,” United Nations World Tourism Organization (UNWTO), January 17, 2023. —a number made more significant because it was reached without travelers from China, which had the world’s largest outbound travel market before the pandemic. 2 “ Outlook for China tourism 2023: Light at the end of the tunnel ,” McKinsey, May 9, 2023.

Recovery and growth are likely to continue. According to estimates from the World Tourism Organization (UNWTO) for 2023, international tourist arrivals could reach 80 to 95 percent of prepandemic levels depending on the extent of the economic slowdown, travel recovery in Asia–Pacific, and geopolitical tensions, among other factors. 3 “Tourism set to return to pre-pandemic levels in some regions in 2023,” United Nations World Tourism Organization (UNWTO), January 17, 2023. Similarly, the World Travel & Tourism Council (WTTC) forecasts that by the end of 2023, nearly half of the 185 countries in which the organization conducts research will have either recovered to prepandemic levels or be within 95 percent of full recovery. 4 “Global travel and tourism catapults into 2023 says WTTC,” World Travel & Tourism Council (WTTC), April 26, 2023.

Longer-term forecasts also point to optimism for the decade ahead. Travel and tourism GDP is predicted to grow, on average, at 5.8 percent a year between 2022 and 2032, outpacing the growth of the overall economy at an expected 2.7 percent a year. 5 Travel & Tourism economic impact 2022 , WTTC, August 2022.

So, is it all systems go for travel and tourism? Not really. The industry continues to face a prolonged and widespread labor shortage. After losing 62 million travel and tourism jobs in 2020, labor supply and demand remain out of balance. 6 “WTTC research reveals Travel & Tourism’s slow recovery is hitting jobs and growth worldwide,” World Travel & Tourism Council, October 6, 2021. Today, in the European Union, 11 percent of tourism jobs are likely to go unfilled; in the United States, that figure is 7 percent. 7 Travel & Tourism economic impact 2022 : Staff shortages, WTTC, August 2022.

There has been an exodus of tourism staff, particularly from customer-facing roles, to other sectors, and there is no sign that the industry will be able to bring all these people back. 8 Travel & Tourism economic impact 2022 : Staff shortages, WTTC, August 2022. Hotels, restaurants, cruises, airports, and airlines face staff shortages that can translate into operational, reputational, and financial difficulties. If unaddressed, these shortages may constrain the industry’s growth trajectory.

The current labor shortage may have its roots in factors related to the nature of work in the industry. Chronic workplace challenges, coupled with the effects of COVID-19, have culminated in an industry struggling to rebuild its workforce. Generally, tourism-related jobs are largely informal, partly due to high seasonality and weak regulation. And conditions such as excessively long working hours, low wages, a high turnover rate, and a lack of social protection tend to be most pronounced in an informal economy. Additionally, shift work, night work, and temporary or part-time employment are common in tourism.

The industry may need to revisit some fundamentals to build a far more sustainable future: either make the industry more attractive to talent (and put conditions in place to retain staff for longer periods) or improve products, services, and processes so that they complement existing staffing needs or solve existing pain points.

One solution could be to build a workforce with the mix of digital and interpersonal skills needed to keep up with travelers’ fast-changing requirements. The industry could make the most of available technology to provide customers with a digitally enhanced experience, resolve staff shortages, and improve working conditions.

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Complementing concierges with chatbots.

The pace of technological change has redefined customer expectations. Technology-driven services are often at customers’ fingertips, with no queues or waiting times. By contrast, the airport and airline disruption widely reported in the press over the summer of 2022 points to customers not receiving this same level of digital innovation when traveling.

Imagine the following travel experience: it’s 2035 and you start your long-awaited honeymoon to a tropical island. A virtual tour operator and a destination travel specialist booked your trip for you; you connected via videoconference to make your plans. Your itinerary was chosen with the support of generative AI , which analyzed your preferences, recommended personalized travel packages, and made real-time adjustments based on your feedback.

Before leaving home, you check in online and QR code your luggage. You travel to the airport by self-driving cab. After dropping off your luggage at the self-service counter, you pass through security and the biometric check. You access the premier lounge with the QR code on the airline’s loyalty card and help yourself to a glass of wine and a sandwich. After your flight, a prebooked, self-driving cab takes you to the resort. No need to check in—that was completed online ahead of time (including picking your room and making sure that the hotel’s virtual concierge arranged for red roses and a bottle of champagne to be delivered).

While your luggage is brought to the room by a baggage robot, your personal digital concierge presents the honeymoon itinerary with all the requested bookings. For the romantic dinner on the first night, you order your food via the restaurant app on the table and settle the bill likewise. So far, you’ve had very little human interaction. But at dinner, the sommelier chats with you in person about the wine. The next day, your sightseeing is made easier by the hotel app and digital guide—and you don’t get lost! With the aid of holographic technology, the virtual tour guide brings historical figures to life and takes your sightseeing experience to a whole new level. Then, as arranged, a local citizen meets you and takes you to their home to enjoy a local family dinner. The trip is seamless, there are no holdups or snags.

This scenario features less human interaction than a traditional trip—but it flows smoothly due to the underlying technology. The human interactions that do take place are authentic, meaningful, and add a special touch to the experience. This may be a far-fetched example, but the essence of the scenario is clear: use technology to ease typical travel pain points such as queues, misunderstandings, or misinformation, and elevate the quality of human interaction.

Travel with less human interaction may be considered a disruptive idea, as many travelers rely on and enjoy the human connection, the “service with a smile.” This will always be the case, but perhaps the time is right to think about bringing a digital experience into the mix. The industry may not need to depend exclusively on human beings to serve its customers. Perhaps the future of travel is physical, but digitally enhanced (and with a smile!).

Digital solutions are on the rise and can help bridge the labor gap

Digital innovation is improving customer experience across multiple industries. Car-sharing apps have overcome service-counter waiting times and endless paperwork that travelers traditionally had to cope with when renting a car. The same applies to time-consuming hotel check-in, check-out, and payment processes that can annoy weary customers. These pain points can be removed. For instance, in China, the Huazhu Hotels Group installed self-check-in kiosks that enable guests to check in or out in under 30 seconds. 9 “Huazhu Group targets lifestyle market opportunities,” ChinaTravelNews, May 27, 2021.

Technology meets hospitality

In 2019, Alibaba opened its FlyZoo Hotel in Huangzhou, described as a “290-room ultra-modern boutique, where technology meets hospitality.” 1 “Chinese e-commerce giant Alibaba has a hotel run almost entirely by robots that can serve food and fetch toiletries—take a look inside,” Business Insider, October 21, 2019; “FlyZoo Hotel: The hotel of the future or just more technology hype?,” Hotel Technology News, March 2019. The hotel was the first of its kind that instead of relying on traditional check-in and key card processes, allowed guests to manage reservations and make payments entirely from a mobile app, to check-in using self-service kiosks, and enter their rooms using facial-recognition technology.

The hotel is run almost entirely by robots that serve food and fetch toiletries and other sundries as needed. Each guest room has a voice-activated smart assistant to help guests with a variety of tasks, from adjusting the temperature, lights, curtains, and the TV to playing music and answering simple questions about the hotel and surroundings.

The hotel was developed by the company’s online travel platform, Fliggy, in tandem with Alibaba’s AI Labs and Alibaba Cloud technology with the goal of “leveraging cutting-edge tech to help transform the hospitality industry, one that keeps the sector current with the digital era we’re living in,” according to the company.

Adoption of some digitally enhanced services was accelerated during the pandemic in the quest for safer, contactless solutions. During the Winter Olympics in Beijing, a restaurant designed to keep physical contact to a minimum used a track system on the ceiling to deliver meals directly from the kitchen to the table. 10 “This Beijing Winter Games restaurant uses ceiling-based tracks,” Trendhunter, January 26, 2022. Customers around the world have become familiar with restaurants using apps to display menus, take orders, and accept payment, as well as hotels using robots to deliver luggage and room service (see sidebar “Technology meets hospitality”). Similarly, theme parks, cinemas, stadiums, and concert halls are deploying digital solutions such as facial recognition to optimize entrance control. Shanghai Disneyland, for example, offers annual pass holders the option to choose facial recognition to facilitate park entry. 11 “Facial recognition park entry,” Shanghai Disney Resort website.

Automation and digitization can also free up staff from attending to repetitive functions that could be handled more efficiently via an app and instead reserve the human touch for roles where staff can add the most value. For instance, technology can help customer-facing staff to provide a more personalized service. By accessing data analytics, frontline staff can have guests’ details and preferences at their fingertips. A trainee can become an experienced concierge in a short time, with the help of technology.

Apps and in-room tech: Unused market potential

According to Skift Research calculations, total revenue generated by guest apps and in-room technology in 2019 was approximately $293 million, including proprietary apps by hotel brands as well as third-party vendors. 1 “Hotel tech benchmark: Guest-facing technology 2022,” Skift Research, November 2022. The relatively low market penetration rate of this kind of tech points to around $2.4 billion in untapped revenue potential (exhibit).

Even though guest-facing technology is available—the kind that can facilitate contactless interactions and offer travelers convenience and personalized service—the industry is only beginning to explore its potential. A report by Skift Research shows that the hotel industry, in particular, has not tapped into tech’s potential. Only 11 percent of hotels and 25 percent of hotel rooms worldwide are supported by a hotel app or use in-room technology, and only 3 percent of hotels offer keyless entry. 12 “Hotel tech benchmark: Guest-facing technology 2022,” Skift Research, November 2022. Of the five types of technology examined (guest apps and in-room tech; virtual concierge; guest messaging and chatbots; digital check-in and kiosks; and keyless entry), all have relatively low market-penetration rates (see sidebar “Apps and in-room tech: Unused market potential”).

While apps, digitization, and new technology may be the answer to offering better customer experience, there is also the possibility that tourism may face competition from technological advances, particularly virtual experiences. Museums, attractions, and historical sites can be made interactive and, in some cases, more lifelike, through AR/VR technology that can enhance the physical travel experience by reconstructing historical places or events.

Up until now, tourism, arguably, was one of a few sectors that could not easily be replaced by tech. It was not possible to replicate the physical experience of traveling to another place. With the emerging metaverse , this might change. Travelers could potentially enjoy an event or experience from their sofa without any logistical snags, and without the commitment to traveling to another country for any length of time. For example, Google offers virtual tours of the Pyramids of Meroë in Sudan via an immersive online experience available in a range of languages. 13 Mariam Khaled Dabboussi, “Step into the Meroë pyramids with Google,” Google, May 17, 2022. And a crypto banking group, The BCB Group, has created a metaverse city that includes representations of some of the most visited destinations in the world, such as the Great Wall of China and the Statue of Liberty. According to BCB, the total cost of flights, transfers, and entry for all these landmarks would come to $7,600—while a virtual trip would cost just over $2. 14 “What impact can the Metaverse have on the travel industry?,” Middle East Economy, July 29, 2022.

The metaverse holds potential for business travel, too—the meeting, incentives, conferences, and exhibitions (MICE) sector in particular. Participants could take part in activities in the same immersive space while connecting from anywhere, dramatically reducing travel, venue, catering, and other costs. 15 “ Tourism in the metaverse: Can travel go virtual? ,” McKinsey, May 4, 2023.

The allure and convenience of such digital experiences make offering seamless, customer-centric travel and tourism in the real world all the more pressing.

Hotel service bell on a table white glass and simulation hotel background. Concept hotel, travel, room - stock photo

Three innovations to solve hotel staffing shortages

Is the future contactless.

Given the advances in technology, and the many digital innovations and applications that already exist, there is potential for businesses across the travel and tourism spectrum to cope with labor shortages while improving customer experience. Process automation and digitization can also add to process efficiency. Taken together, a combination of outsourcing, remote work, and digital solutions can help to retain existing staff and reduce dependency on roles that employers are struggling to fill (exhibit).

Depending on the customer service approach and direct contact need, we estimate that the travel and tourism industry would be able to cope with a structural labor shortage of around 10 to 15 percent in the long run by operating more flexibly and increasing digital and automated efficiency—while offering the remaining staff an improved total work package.

Outsourcing and remote work could also help resolve the labor shortage

While COVID-19 pushed organizations in a wide variety of sectors to embrace remote work, there are many hospitality roles that rely on direct physical services that cannot be performed remotely, such as laundry, cleaning, maintenance, and facility management. If faced with staff shortages, these roles could be outsourced to third-party professional service providers, and existing staff could be reskilled to take up new positions.

In McKinsey’s experience, the total service cost of this type of work in a typical hotel can make up 10 percent of total operating costs. Most often, these roles are not guest facing. A professional and digital-based solution might become an integrated part of a third-party service for hotels looking to outsource this type of work.

One of the lessons learned in the aftermath of COVID-19 is that many tourism employees moved to similar positions in other sectors because they were disillusioned by working conditions in the industry . Specialist multisector companies have been able to shuffle their staff away from tourism to other sectors that offer steady employment or more regular working hours compared with the long hours and seasonal nature of work in tourism.

The remaining travel and tourism staff may be looking for more flexibility or the option to work from home. This can be an effective solution for retaining employees. For example, a travel agent with specific destination expertise could work from home or be consulted on an needs basis.

In instances where remote work or outsourcing is not viable, there are other solutions that the hospitality industry can explore to improve operational effectiveness as well as employee satisfaction. A more agile staffing model  can better match available labor with peaks and troughs in daily, or even hourly, demand. This could involve combining similar roles or cross-training staff so that they can switch roles. Redesigned roles could potentially improve employee satisfaction by empowering staff to explore new career paths within the hotel’s operations. Combined roles build skills across disciplines—for example, supporting a housekeeper to train and become proficient in other maintenance areas, or a front-desk associate to build managerial skills.

Where management or ownership is shared across properties, roles could be staffed to cover a network of sites, rather than individual hotels. By applying a combination of these approaches, hotels could reduce the number of staff hours needed to keep operations running at the same standard. 16 “ Three innovations to solve hotel staffing shortages ,” McKinsey, April 3, 2023.

Taken together, operational adjustments combined with greater use of technology could provide the tourism industry with a way of overcoming staffing challenges and giving customers the seamless digitally enhanced experiences they expect in other aspects of daily life.

In an industry facing a labor shortage, there are opportunities for tech innovations that can help travel and tourism businesses do more with less, while ensuring that remaining staff are engaged and motivated to stay in the industry. For travelers, this could mean fewer friendly faces, but more meaningful experiences and interactions.

Urs Binggeli is a senior expert in McKinsey’s Zurich office, Zi Chen is a capabilities and insights specialist in the Shanghai office, Steffen Köpke is a capabilities and insights expert in the Düsseldorf office, and Jackey Yu is a partner in the Hong Kong office.

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Characteristics of Tourism Products include intangibility, perishability, heterogeneity, inseparability, and lack of ownership.

5 Characteristics of Tourism Products| Best Notes

In this blog, I will be explaining the 5 Characteristics of tourism products which include Intangibility, Perishability, Inseparability, Heterogeneity, and Lack of ownership in detail. So stay tuned on this Blog.

Table of Contents

Characteristics of Tourism Products

Intangibility.

  • It is the most essential characteristic of the tourism industry. Things that we can see and touch tangible products such as mobile phones, cars, and consumer products are tangible products.
  • Things that can only be felt and experienced are intangible products. For example – In a classroom, a teacher is teaching English to 50 numbers of students, so while she is teaching every student has a different experience Some students may consider her teaching skills good, and some may consider her teaching skills average so the teaching skills of the teacher is an intangible tourism product as it can be only felt and experienced.
  • Another example of intangible product – if a person for the very first time is going to travel by flight, he is may not aware of what meals about on the flight, what are services provided on the flight, the behavior of the other passengers, interaction with the air hostess, using washroom in the flight, seats will be comfortable or not, how to wear seat belt in the flight so when he will travel he will experience these things so this is also called Intangibility.
  • Intangible tourism products include hospitality, sightseeing, relaxation, amenities, entertainment, etc. As these things can only be experienced and felt. It creates a feeling of excitement and gives a memorable experience. The tourist does the Intangibility promotion by giving positive reviews, referring to his friends or relatives by word of mouth, repetitive tourist, etc.
  • Tourism products include transportation, accommodation, sightseeing, tour package , etc. which depends on the interaction between the tourism service provider and the tourist. And good interaction can make the experience better.
  • There are some intangible barrier which includes communication barrier, trust, high price, customer satisfaction, quality assurance, etc. To overcome these problems the best way is online marketing and promotion, After the experience of the tourist ask him to write reviews, feedback, and ratings so that other people will read and trust will be created. Intangibility plays a very important role in the characteristics of tourism products.

Perishability 

  • It is the most crucial product of the tourism product. We know that products like milk, vegetables, dairy products, etc. are perishable products as they are lost very quickly and cannot reused or reclaimed. Likewise, in the tourism industry if the times have passed it cannot be resold, reclaimed, or reused.
  • For example – In a flight when all seats are booked except the one seat which remains unsold the same cannot be sold on the next flight as the revenue of that seat is lost forever. And the same goes for the train, To avoid this loss of unsold seats, At the last minute, airlines decrease the rates of unsold seats so that it pushes people to book that seat on a particular flight.
  • Another example – if in the hotel all rooms are booked only one room remains unoccupied for a night then the revenue for that room is lost forever.
  • Another example -if a tourist books a tour package through a travel agent and once the tour is started and in between he says that take this tour package back, then it is not possible at all as tourism services cannot be stored.
  • The rise of demand for tourism services fluctuates based on season, weather, fairs, festivals, events, holidays, etc. And once the opportunity is missed you have to wait for the next year and you have to face financial losses so try not to miss the opportunity as it will generate a lot of revenue.
  • There is some Perishability barrier which includes seasonal, demand forecasting, tourism infrastructure, and pricing factor and to overcome these problem concentrating decrease in developing new strategies, development infrastructure, proper management, and good pricing or costing should be done to attract tourist. And perishability plays a very important role in the characteristics of tourism products.

Inseparability

  • It is a most essential product of the tourism product. Inseparability means that it cannot be separated from the service provider as the product is being simultaneously consumed by the tourist.
  • For example – If a tourist is watching Burj Khalifa on tv doesn’t mean that he is experiencing that wonder, lightning sound, etc. as to experience the wonder of Burj Khalifa he needs to visit Dubai.
  • Guides are also considered the best tourism product in Inseparability as they provide information about the destination, monument, etc. which creates interest in the person to know more about the place and next again he might come and visit or may recommend to his friends or relatives.
  • The main ingredient of Inseparability is the production of tourism service products and consumption of tourism service products. Likewise, when a traveler visits a particular destination and checks in at the hotel the tourism service is produced and when he checks out from the hotel then the tourism service is consumed.
  • Tourist interaction with the service provider and their tourism experiences impact their satisfaction.
  • Service quality is an important factor in Inseparability if the tourist visits a particular destination and the service provided to him is not good then it will impact the tourist’s impression and satisfaction and may give bad reviews.
  • So it is very important that staff should take care of the services provided to the tourist so that in return he may be our repetitive client or may recommend to his friends or family and give a position review. And Inseparability plays a very important role in the characteristics of tourism products.

Heterogeneity/Variability

  • It is also called variability. Heterogeneity is the most crucial element of the tourism product. Heterogeneity includes the human element in the delivery of tourism services.
  • For example – A person is not aware of traveling on a flight so it is obvious that he is not aware of the behavior of passengers, air hostess, and crew, check-in and check-out from the airport, waiting for baggage, eating a meal in flight, etc. which all estates to the complete experience of flying in that particular airline.
  • In Heterogeneity the delivery of maintaining the product such as hotel industry, airlines, and tour operators is essential. In shaping the tourism experience cultural preferences play an important role.
  • Demand for seasonal fluctuations often affects the tourism destination. For example In winter because of snowfall, the place Shimla is crowded but in summer it is quiet.
  • Travel agent makes customized tour packages for tourists according to the needs and desires of tourists. The services provided by the hotel and travel agent leave an impact on the tourist experience. Infrastructure planning and development is done appropriately for the safety and satisfaction of the tourist. Heterogeneity plays a very important role in the characteristics of tourism products.

Lack of Ownership

  • Lack of Ownership is a crucial characteristic of the tourism product. It estates that the consumer is not the owner of the product only they purchase the service of the product. For example – A person has reached the restaurant and there he orders the meal but it doesn’t mean that he is the owner of the restaurant, as he is only paying for the meal and the services. Another example – A person buys a boarded air ticket for Dubai, so it doesn’t mean when he boards the flight he is the owner of the flight as he has only paid for tickets, meals, and as for the services provided in the airplane.
  • Lack of Ownership involves visitors’ experience and the services provided to tourists but tourists should be very clear that they are only paying for the services, and shouldn’t consider themselves as the owner. Lack of Ownership plays a very important role in the characteristics of tourism products.

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What are elements of tourism product.

The elements of tourism product include Accessibility, accommodation, infrastructure, tour package, services, safety and security.

What are the characteristics of tourism product psychological ?

The characteristics of tourism product psychological includes social interaction, cultural connection, sense of adventure and beautiful landscapes.

What are natural tourism product?

The natural tourism product includes beaches, islands, mountains, national parks, ecotourism, wild safari, lakes, etc.

What are man made tourism product?

The man made tourism product includes heritage sites, museum, art galleries, theme park, botanical garden and national park.

In today’s generation tourism has become the vast industry and it is very important for the tour professionals and tourist to understand the characteristics of tourism products. Characteristics of tourism products include Intangibility, perishability, heterogeneity, Inseparability and lack of Ownership. These tourism products are important in terms of tourism marketing, tourism business and tourism motivation to travel. These features make tourism product unique ,push tourist to travel and manages the challenge. And the main motive is to make customer’s trip memorable.

LuxuryTravelDiva

What Are the 5 A’s in Tourism?

By Anna Duncan

Tourism is a booming industry that contributes significantly to the global economy. To ensure sustainable growth in tourism, it’s essential to focus on the five A’s of tourism.

The 5 A’s of tourism are Attractions, Accommodation, Accessibility, Amenities, and Activities. In this article, we’ll discuss each of these elements in detail.

Attractions

Attractions are the primary reason why people travel to a particular destination. They can be natural or man-made and can include historical sites, cultural monuments, museums, parks, and wildlife reserves. Tourists are drawn to places that offer unique experiences that are unavailable elsewhere.

It’s important for destinations to have a variety of attractions that cater to different interests and preferences. For example, a beach destination can also have historical sites or adventure activities like surfing or scuba diving.

Accommodation

Accommodation is another crucial aspect of tourism. It refers to the places where tourists can stay during their visit.

Accommodations can range from budget hostels to luxury resorts and everything in between. It’s essential for destinations to offer a variety of accommodation options that cater to different budgets and preferences.

Types of Accommodation

  • Hotels: Hotels offer a range of services such as room service, housekeeping facilities and amenities such as swimming pools or fitness centers.
  • Resorts: Resorts offer additional amenities such as private beaches or spas.
  • Vacation Rentals: Vacation rentals include villas or apartments that tourists can rent out for an extended period.
  • Camping: Camping is an affordable way for tourists to stay close to nature.

Accessibility

Accessibility refers to how easy it is for tourists to reach a particular destination. Good accessibility is crucial for destinations to attract tourists. It includes transportation facilities, such as airports, railways, and highways.

Types of Accessibility

  • Air: Air travel is the most common mode of transportation for tourists traveling long distances.
  • Rail: Rail travel is an affordable and convenient way to travel within a country or region.
  • Road: Road travel is a popular mode of transportation for short distances or within cities.

Amenities are the facilities or services that make a destination more attractive to tourists. They can include restaurants, cafes, shopping centers, entertainment venues, and public restrooms.

It’s important for destinations to have adequate amenities that cater to different needs and preferences. For example, families with children might prefer destinations with playgrounds or childcare facilities.

Activities refer to the experiences that tourists can participate in while visiting a destination. They can include adventure sports, cultural events, shopping, or sightseeing.

It’s essential for destinations to offer a variety of activities that cater to different interests and preferences. For example, a mountain destination can offer hiking trails and skiing while a beach destination can offer water sports like surfing or paddleboarding.

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Future Changes and Challenges for Post-Covid-19 Tourism

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what are the 5 tourism products

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In conformity with the priorities established in the UNWTO’s global guidelines, today more than ever, the recovery of the tourism sector can contribute to the development and implementation of plans that serve the sustainable development objectives laid out in Agenda 2030. The new tourism sector will thus have a responsible vision of the objectives in terms of public health, social inclusion, conservation of biodiversity, climate safeguards, the circular economy, good governance and sustainable finance. The current vulnerability of tourism could thus create the conditions for a recalibration of the world economic structure, contributing to recovery plans on a broader scale. Like all crises, the current one also represents an opportunity, in this case to accelerate the creation of sustainable tourism models. The resilience of this tourism will depend on the sector’s ability to balance the needs of communities and the planet with the socio-economic advantages it generates.

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Trono, A. (2024). Future Changes and Challenges for Post-Covid-19 Tourism. In: Trono, A., Castronuovo, V., Kosmas, P. (eds) Managing Natural and Cultural Heritage for a Durable Tourism. Springer, Cham. https://doi.org/10.1007/978-3-031-52041-9_5

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what are the 5 tourism products

Thousands protest in Spain's Canary Islands over mass tourism

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At least 13 Palestinians killed in Israeli strikes on Rafah, medical officials say

Israeli air strikes on three houses in the southern Gaza city of Rafah killed 13 people and wounded many others, medics said on Monday.

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Venice tests 5-euro entry fee for day-trippers as the city grapples with over-tourism

Stewards check tourists QR code access outside the main train station in Venice, Italy.

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Under the gaze of the world’s media, the fragile lagoon city of Venice launched a pilot program Thursday to charge day-trippers a 5-euro entry fee that authorities hope will discourage visitors from arriving on peak days and make the city more livable for its dwindling residents.

Visitors arriving at Venice’s main train station were greeted with large signs listing the 29 dates through July of the plan’s test phase that also designated separate entrances for tourists, and residents, students and workers. The fee is equivalent to about $5.26.

“We need to find a new balance between the tourists and residents,’’ said Simone Venturini, the city’s top tourism official. “We need to safeguard the spaces of the residents, of course, and we need to discourage the arrival of day-trippers on some particular days.”

Not all residents, however, are persuaded of the efficacy of the new system in dissuading mass tourism, insisting that only a resurgence in the population will restore balance to a city where narrow alleyways and water buses are often clogged with tourists.

FILE-- In this Sept. 27, 2014 file photo a cruise ship transits in the Giudecca canal in front of St. Mark's Square, in Venice, Italy. Declaring Venice's waterways a “national monument,” Italy is banning mammoth cruise liners from sailing into the lagoon city, which risked within days being declared an imperiled world heritage site by the United Nations. Culture Minister Dario Franceschini said the ban will take effect on Aug. 1 and was urgently adopted at a Cabinet meeting on Tuesday. (AP Photo/Andrew Medichini)

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Hundreds of Venetians protested against the program, marching festively though the city’s main bus terminal behind banners reading, “No to Tickets, Yes to Services and Housing.” Protesters scuffled briefly with police in riot gear who blocked them from entering the city, before changing course and entering over another bridge escorted by plainclothes police. The demonstration wrapped up peacefully in a piazza.

Tourists arriving at the main station encountered almost as many journalists as stewards on hand to politely guide anyone unaware of the new requirements through the process of downloading the QR code to pay the fee.

Arianna Cecilia, a tourist from Rome visiting Venice for the first time, said she thought it was “strange” to have to pay to enter a city in her native country and be funneled through separate entrance ways for tourists.

She and her boyfriend were staying in nearby Treviso, and thus downloaded the QR code as required, but she was still caught off guard while taking in her first view ever of Venice’s canals by the sight of the entrance signs and her boyfriend telling her to get out the ticket.

On the other side of the entrance ways, workers in yellow vests carried out random checks at the train station. Transgressors face fines of 50 to 300 euros ($53 to $320), but officials said “common sense” was being applied for the launch.

A general view shows people walking across the flooded St. Mark's Square, by St. Mark's Basilica on November 15, 2019 in Venice, two days after the city suffered its highest tide in 50 years. - Flood-hit Venice was bracing for another exceptional high tide on November 15, as Italy declared a state of emergency for the UNESCO city where perilous deluges have caused millions of euros worth of damage. (Photo by Filippo MONTEFORTE / AFP) (Photo by FILIPPO MONTEFORTE/AFP via Getty Images) ** OUTS - ELSENT, FPG, CM - OUTS * NM, PH, VA if sourced by CT, LA or MoD **

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Nov. 15, 2019

The requirement applies only for people arriving between 8:30 a.m. and 4 p.m. Outside of those hours, access is free and unchecked.

Venice has long suffered under the pressure of over-tourism, and officials hope that the pilot project can help provide more exact figures to better manage the phenomenon.

The city can track the number of hotel visitors, which last year numbered 4.6 million and is down 16% from pre-pandemic highs. But the number of day visitors, which make up the majority of the crowds in Venice, could only be estimated until recently.

A Smart Control Room set up during the pandemic has been tracking arrivals from cellphone data, roughly confirming pre-pandemic estimates of 25 million to 30 million arrivals a year, said Michele Zuin, the city’s top economic official. That includes both day-trippers and overnight guests.

But Zuin said the data are incomplete.

“It’s clear we will get more reliable data from the contribution” being paid by day-trippers, he said.

Cruise ship MSC Orchestra passes in the Giudecca Canal in Venice, Italy, early Thursday, June 3, 2021. Early risers in Venice woke Thursday to the sight of a cruise ship traveling down the Giudecca canal for the first time since the pandemic, despite pledges by subsequent Italian governments to reroute the huge vessels due to safety and environmental concerns. (JC Viens via AP)

Cruise ships restart in Venice; protesters decry their risks

The first cruise ship leaving Venice since the pandemic is set to depart amid protests by activists demanding that it be rerouted from the lagoon.

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Venturini said the city is strained when the number of day-trippers reaches 30,000 to 40,000. On peak days, local police set up one-way traffic for pedestrians to keep the crowds moving.

Residents opposing the day-tripper tax insist that the solution to Venice’s woes is to boost the resident population and the services they need, limiting short-term rentals to make available more housing and attract families back from the mainland.

Last year, Venice passed a telling milestone when the number of tourist beds exceeded for the first time the number of official residents, which is now below 50,000 in the historic center with its picturesque canals.

“Putting a ticket to enter a city will not decrease ... even by one single unit the number of visitors that are coming,’’ said Tommaso Cacciari, an activist who organized a protest Thursday against the measure.

“You pay a ticket to take the metro, to go to a museum, an amusement park. You don’t pay a ticket to enter a city. This is the last symbolic step of a project of an idea of this municipal administration to kick residents out of Venice,” he said.

Venice officials expected paid day-tripper arrivals Thursday to reach about 10,000. More than 70,000 others had downloaded a QR code denoting an exemption, including to work in Venice or as a resident of the Veneto region. Hotels in Venice, including in mainland districts such as Marghera or Mestre, should provide a QR code attesting to their stay, which includes a hotel tax.

Travel & Experiences

New Laws in Venice Will Limit Tourists

The influx of tens of thousands of less-than-affluent day-trippers from Eastern Europe this summer has prompted city officials in Venice to institute new laws to cope with their tourist dilemma.

Sept. 16, 1990

Venturini, the tourist official, said that interest in Venice’s pilot program has been keen from other places suffering from mass tourism, including other Italian art cities, and municipalities abroad such as Barcelona, Spain, and Amsterdam.

But Marina Rodino, who has lived in Venice for 30 years, doesn’t see the fee as a cure-all. Neighboring apartments in her residential building near the famed Rialto Bridge once inhabited by families are now short-term apartment rentals.

The corner butcher shop closed. Yet she noted that the new entrance fee requirement will still allow young people to flood the city in the evening for the traditional aperitivo , which can grow rowdy.

She was passing out mock European Union passports for “Venice, Open City,” underlining the irony of the new system, and challenging its legal standing with citations from the Italian Constitution guaranteeing its citizens the right to “move or reside freely in any part of the national territory.”

“This is not a natural oasis. This is not a museum. It is not Pompeii. It is a city, where we need to fight so the houses are inhabited by families, and stores reopen. That is what would counter this wild tourism,’’ Rodino said.

Barry writes for the Associated Press.

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what are the 5 tourism products

In light of audit, Shelley Zumwalt faces difficult Senate confirmation for tourism secretary

S helley Zumwalt — the embattled executive director of the Oklahoma Tourism and Recreation Department and the governor's choice for tourism secretary — could face a difficult confirmation process in light of a newly released audit, the leader of the Oklahoma Senate said Thursday.

Speaking at his Thursday afternoon press conference, Senate Pro Tempore Greg Treat said he wasn't sure the Senate would advise and consent to Zumwalt's nomination. Zumwalt was harshly criticized in an audit released Tuesday by State Auditor and Inspector Cindy Byrd. Zumwalt has been named by Republican Gov. Kevin Stitt as his Cabinet secretary for tourism.

"That comes into question," Treat said. "I can't make any firm commitments either way."

Treat said the Senate wanted to make sure that Zumwalt was treated fairly during the confirmation process, but added that "we want to make sure we take the executive nomination process very serious."

May 1 is the deadline for the governor's office to send its list of nominations to the Senate.

Byrd's audit criticized the management of the Oklahoma Employment Security Commission and Zumwalt, who was the agency's executive director at the time. The audit questioned how Zumwalt approved $8.5 million in contract payments to Phase 2, a firm where her husband is employed.

"Subsequent contracting and payments were transacted by Oklahoma Employment Security Commission and signed by Shelley Zumwalt, who was appointed as the executive director of OESC in May 2020," Byrd said in a media statement accompanying the audit. "By April 2022, Zumwalt had approved additional contracts and change orders to P2 totaling $8.5 Million."

More: State audit critical of tourism director Shelly Zumwalt. AG calls for director's resignation

During this period, Byrd wrote, "Zumwalt failed to disclose the fact that her husband, John Zumwalt, was employed as the Vice-President of Phase 2."

Byrd said Zumwalt was required to complete annual forms attesting that no related party transactions existed in the performance of her duties regarding the expenditure of funds, and in three separate instances, Zumwalt checked "No" on those forms.

On Tuesday evening, Zumwalt denied any wrongdoing.

"The initial contracts and all agreements to begin work with Phase 2 were executed before I was appointed by the OESC Board of Commissioners on May 27, 2020," Zumwalt said. "I did not have any decision-making authority when OMES hired Phase 2 to work with OESC in May of, excuse me, in March of 2020."

Audit questions Communities Foundation of Oklahoma expenditures

The audit also raised numerous questions about how the state spent millions in federal COVID-19 funds and said new purchasing rules established by the Office of Management and Enterprise Solutions were not in the best interest of Oklahoma.

Byrd's audit — more than 200 pages long — reviewed $13 billion worth of expenditures of federal funds and questioned how more than $30 million of those funds were spent, including more than $276 million in Emergency Rental Assistant funds.

Those funds, sent to the state during FY 2021 and FY 2022, were earmarked to help Oklahomans with rental and utility assistance. Byrd said OMES contracted with the Communities Foundation of Oklahoma, a nonprofit entity, to receive $241 million of the funds and implement the program.

Among the audit's findings:

  • OMES advanced lump sum payments to CFO for its administrative costs to oversee the ERA grant without monitoring or requiring documentation for how much CFO actually expended for program and administrative costs.
  • Reports for the ERA program, which the OMES Director of Budget, Policy, and Gaming Compliance submitted to the U.S. Treasury, reflected 100% of the $241 million was expended. However, as of June 2022, since the start of the grant program, CFO withheld $10 million dollars in excessive management fees.
  • CFO also has $15 million in unexpended grant funds advanced by OMES.
  • CFO directed $6.5 Million to relocate refugees from Afghanistan into Oklahoma. This was not an allowable expense for this grant. The State of Oklahoma had other grants available for these types of services.

The audit also questioned CFO's spending, including:

  • $8,600,000 for excessive management fees.
  • $6,594,079 for Afghan refugee relocation.
  • $4,300,000 for subawards paid and no supporting documentation was obtained.
  • $834,521 for unallowable bonuses paid to subcontractors.
  • $41,391 paid to JGC without a contract.
  • $33,339 for inappropriate credit card expenditures including visits to entertainment venues, cooking class, succulent planting class, painting, and restaurants.

Federal funds provided for administrative costs are not intended for the nonprofit to make a profit, Byrd said. She said the CFO was only allowed to charge for actual administrative costs incurred during the execution of the grant.

"In last year’s Federal Single Audit, our office alerted the State about the excessive management fees from CFO and we recommended OMES take action. Our recommendations were ignored," Byrd said in a media statement. "Compounding this error, in an email to CFO, the OMES Director of Budget, Policy and Gaming Compliance gave incorrect guidance regarding the retention of administrative fees and seemed to give permission to CFO to keep the unused grant funds.”

On Thursday, Treat said Senate leaders were concerned by the findings in the audit. "It all deals with central purchasing at the core of the problem," Treat said. "That audit ... it causes me grave concerns."

Treat said he and other Senate leaders would continue to review the audit's findings before deciding on what action to take. The Second Session of the 59th Oklahoma Legislature ends at 5 p.m. May 31.

This article originally appeared on Oklahoman: In light of audit, Shelley Zumwalt faces difficult Senate confirmation for tourism secretary

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