What are the problems associated with tourism?
Although customers are gearing up for travel this summer, there are many who still hesitate. There are many reasons why a customer may delay booking a vacation. The four major reasons are:
Taxation: In many countries, tourism is a heavily taxed industry. Every service from tour operators, hotels, airplanes, luxury goods, etc. all carry their own tax fee with fees changing from one location to another. At the end of the day, it's the traveller who must foot the bill for all these taxes.
Marketing: Marketing takes two approaches, both carry the same implication. A customer who is unable to engage with a business, especially on social media, becomes suspicious about the legitimacy of the business. Similarly, a customer who feels that what a business markets compared to negative reviews or negative engagement with said business results in a loss of trust.
Infrastructure issues: Sometimes the lack of access to an accommodation can lose a customer. If the customer cannot gain access to accessibility devices, a specific meal plan, access to transportation, etc., they are more likely to go for another business that can offer these services. Every customer has differing needs which makes it difficult for businesses to accommodate for everyone, however, this further emphasizes the need for collaboration among businesses.
Security and Regulatory border issues: Security is every traveller's topmost concern. Novice, infrequent travellers put this up high on their list while more experienced traveller have experience to help guide them. Regardless security is the make or break for travellers. Issues like political unrest, terrorism, economic instability, improper law and order have adverse effects on foreign tourists and few people are willing to take the risk regardless of whether the risk is real or perceived. In addition to security, border regulations can also cause issues for travellers. If a border crossing has long and/or difficult visa procedures, or if businesses (and their partners) lack transparency in their legitimacy (i.e. valid licenses, business registration numbers), travellers will be quick to pass up the business. Even if the business is legitimate, any plausible risk to a traveller's security or finances breaks any faith from the traveller's perspective.
Although some of these problems seem to be out of your hands, awareness of these issues will help any business.
One final issue to be aware of is COVID-19 issues. It 2020, The World Tourism Organization anticipated a drop in tourism revenue of 300 to 500 billion dollars. Although COVID-19 had a short-term negative impact on the tourism industry, recovery will take a long time. Travellers are wary about travelling, especially to crowded areas. If they do end up catching COVID-19, access to medical care, quarantining, and visa expiry are big hurdles. If anything, the virus draws attention to issues in the toursim industry like poor management. It is important for every business to consider how COVID-19 can impact the traveller, because their experiences will effect your business.
Comments
Post a Comment