examples of perishable tourism products

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What Is Perishability In Tourism

Published: December 13, 2023

Modified: December 28, 2023

by Bliss Redding

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Introduction

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

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

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

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

Definition of Perishability in Tourism

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

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

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

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

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

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

Factors Affecting Perishability in Tourism

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

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

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

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

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

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

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

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

Impact of Perishability on Tourism Businesses

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

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

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

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

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

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

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

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

Strategies to Mitigate Perishability in Tourism

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

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

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

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

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

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

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

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

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

Case Studies on Perishability in Tourism

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

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

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

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

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

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

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

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

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

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

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

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

1. Kimes, S. E. (1989). The Perishability of Demand: Some Empirical Evidence. Marketing Science, 8(4), 345-354. doi:10.1287/mksc.8.4.345

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

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

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

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

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

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What is 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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Perishability in Marketing Explained with Examples

Perishability is key when it comes to marketing goods and services that don’t last long. Businesses must understand and handle this aspect well to stay ahead. This factor impacts how things are priced, how inventory is managed, and how customers make purchases.

Examples of perishability are seen in perishable foods like fruits and veggies. These items spoil quickly. Similarly, services such as hotel rooms and plane tickets lose value if not used timely. To reduce losses, companies use strategies like changing prices based on demand and hiring more staff during busy times.

Key Takeaways:

• Perishability is the characteristic of products and services that cannot be stored for future sale.
• It influences pricing strategies, inventory management, and marketing tactics .
• Perishable products, such as fruits and vegetables, have a limited shelf life and decay quickly.
• Services like hotel rooms and airline tickets can lose value if not used within a certain timeframe.
• Custom tactics, such as dynamic pricing and seasonal hiring, help mitigate the negative impact of perishability.

What is Perishability?

Perishability means some products can’t be saved for later sale or use. This is clear with items like fresh fruits and veggies. They only stay fresh for a short time. Perishability isn’t just about things you can touch; it also includes services like hotel stays and flights.

The reason fruits and vegetables go bad is because of their natural makeup. After they’re picked, certain processes make them spoil quickly. So, their journey from farm to table is planned carefully to keep them as fresh as possible.

Wholesalers and distributors watch how fresh the produce is. They manage how much they have in stock to reduce waste. They might lower prices as the produce gets closer to going bad. This encourages people to buy quickly.

Services like hotel and flight bookings also face perishability. Hotel rooms can’t wait empty forever. They need to be booked and used promptly. Flights work the same way. If these services aren’t used in time, they lose their value.

How Does Perishability Influence Services?

The perishability of services brings unique challenges in handling supply and demand, setting prices, and controlling costs. Since services can’t be stored like products, it’s vital for companies to balance their resources well.

Perishability greatly affects how businesses price their services. They often use dynamic pricing to adjust rates based on demand and timing. This method lets them maximize profits when demand is high and offer discounts when it’s low.

Many industries deal with perishability. For example, hotels and airlines discount rooms and seats during slow times to prevent losing money. Professional service firms might partner up to better handle busy times and satisfy more clients.

To tackle perishability, some service industries hire more workers during busy times. This ensures they can serve customers well and keep them happy.

In summary, knowing how perishability affects services helps businesses stay ahead. They need to manage supplies and demand smartly, use dynamic pricing, and adjust to busy and slow seasons. Doing so lets them run smoothly and keep customers coming back for more.

Perishability and Services Marketing

Perishability is one of four key aspects of services marketing. The others are intangibility, inseparability, and heterogeneity/variability. Perishability means services can’t be stored or sold again. This needs careful marketing strategies .

Services are intangible, unlike goods. They can’t be checked before buying. Businesses must show the value and quality of their services well.

Services are also inseparable. They happen at the same time they’re consumed. Customers play a part in this, affecting their satisfaction.

With services, quality can differ depending on who provides them. Being consistent in quality is essential to keep customers happy and build trust.

It’s vital to tackle perishability, intangibility, inseparability, and variability well. This helps in crafting successful marketing strategies. Firms need creative ways to show their service value, improve customer experience, and ensure steady quality.

Example of Perishability in Services Marketing

Take a hotel business, for example. Hotel rooms are perishable. They can’t be sold later if not used. An empty room means lost revenue.

Hotels deal with changing demand and market conditions. They must forecast demand and adjust prices. This helps avoid too many unsold rooms.

Below is a table showing how perishability affects room sales and income:

As the table shows, less occupancy means less money. For instance, Monday had 10 rooms free, making $4,000. But, Wednesday had 20 rooms free, earning less revenue of $3,000. Pricing changes according to demand and revenue management are key.

Understanding perishability helps businesses tailor their marketing. This improves their marketing efforts .

How is Perishability Used in Different Industries?

The concept of perishability impacts many industries like hospitality, tourism, retail, food, and agriculture. Each faces different challenges. They must manage perishable goods and services well.

Hospitality Industry

Perishability is key for hotels and restaurants. They manage room nights and food carefully to stay ahead. By predicting demand, they can fill rooms and adjust prices to meet what customers expect. Restaurants balance their supply with what customers want to avoid wasting food.

Tourism Industry

In tourism, perishability influences pricing and handling busy or slow seasons. Providers like airlines and hotels use it to set prices for flights and stays. They quickly change prices as market conditions shift, aiming for the best revenue and customer draw. They also hire more staff for peak seasons and scale down when it’s quieter.

Retail Industry

Retailers, both physical stores and online, tackle perishable stock issues. They monitor stock levels, gauge demand, and tweak prices as needed. This helps sell items like fresh produce and dairy before they go bad. Effective stock systems and demand forecasting let retailers sell more and waste less.

Food Service Industry

The food industry deals with perishables like meals and ingredients daily. Places like restaurants and cafes manage these goods closely. They might lower prices on items about to expire. This strategy increases sales, limits waste, and keeps profits up. Good inventory and quality control mixed with smart pricing tackle perishability well.

Agriculture Industry

Farming must factor in perishability in growing and sending out crops. Farmers work to keep their products fresh and meet demand. They plan when to grow, harvest, store, and ship their goods. Proper planning helps the agriculture sector supply quality products steadily.

Overall, perishability presents challenges across industries. From keeping hotel rooms filled, to pricing, inventory management, cutting food waste, or crop planning, it’s central to success. With good strategies and understanding market trends , companies can manage perishability and flourish.

Examples of Perishability

Perishability is a term used across different sectors. It shows that products and services are time-bound. It’s crucial to manage them well to meet customer needs.

Fast-Food Services

Fast-food places have to keep their food fresh. This means they use perishable ingredients and make food quickly. They aim for speedy delivery to keep customers happy.

Travel Services

Travel services like airlines and hotels face a fast-changing market. They must change prices fast to stay competitive. This need makes it essential to be quick and flexible with pricing.

Live Entertainment

Live shows and sports games also deal with perishability, but with their tickets. They must adapt quickly to changes in demand. Managing tickets well is key to making a profit.

Understanding perishability helps businesses in these areas to succeed. Good management of time-sensitive products and services boosts customer satisfaction. It also leads to success in various industries.

Perishability of Services

Perishability matters a lot in services marketing. It means services can’t be stored or saved for later use. Unlike solid products, you can’t touch services or check them out before buying. Also, services must happen at the same time they’re provided. This means their quality could change based on the provider’s skill.

For businesses, the perishability of services is a big challenge. They have to manage their resources well to keep up with changing demand. They must plan their schedules, staff, and resources carefully. This is to make sure they can offer services well and keep customers happy. It’s important to provide services quickly to satisfy customers fully.

To market perishable services well, companies need to understand how perishability affects customer happiness. They should aim for high-quality and consistent services to earn customer loyalty. Also, considering services’ intangibility, inseparability, and variability is key in marketing. This helps meet customer needs better.

Knowing about service perishability helps businesses make smarter marketing moves. They can use their resources better, provide services on time, and create great customer experiences. Handling service perishability well is crucial. It helps in meeting customer needs and staying ahead in the market.

How to Manage Perishability?

To manage perishability, companies should forecast demand accurately and use flexible pricing. It’s key to understand how perishable goods and services are. This helps set the right prices. The goal is to make the most profit and keep inventory just right.

Demand forecasting is crucial for managing perishability. Companies can use past sales, market trends, and customer studies to guess future demand. This planning helps prevent having too much or too little stock. It lowers the risk of losing money on perishable items.

Flexible pricing is another important strategy. Companies can change prices based on demand, competition, and stock. This way, they can attract more customers when demand is low and make more money when demand is high.

Offering extra services and unique experiences can also make a difference. These can put a company ahead of its competition. They boost customer loyalty and lessen the impact of perishability.

The Importance of Customer Experience

Customer experience is very important when managing perishability. Great service, easy purchases, and personal touches make customers happier. It makes them come back. Using technology can make processes smoother, improve efficiency, and offer a better customer experience.

In industries with unique products, managing perishability needs a customized plan. This includes strategies to reduce waste and optimize how things are made and stored. Watching market trends and knowing what customers want helps businesses make smart choices to stay profitable.

Businesses can thrive by managing perishability well. Adapting to market changes, forecasting demand, using flexible pricing, and focusing on customers are key. These steps are vital to stay ahead in today’s market.

Importance of Knowing About Perishability

Knowing about perishability is crucial for businesses. It helps them plan and make decisions that boost their product and service value. Perishability affects many parts of a business. It ensures food tastes fresh and meets the customer’s need for new experiences. It also requires quick delivery in some sectors and helps set the right prices for goods and services.

Understanding perishability helps keep food fresh and high in quality. In fields like agriculture and food service, products don’t last long. Companies must manage their supply chains and inventories well. This reduces waste and makes customers happy. By knowing how foods perish, companies can store and ship their products to be at their best when they reach you.

Perishability ties into novelty too. People love trying new and unique things. Businesses can use this to build excitement for their products. They can launch products timely, offer limited-time deals, and team up with others to draw customers in. All these efforts make people excited to buy.

Quick delivery is essential due to perishability. Fast food, grocery delivery, and fresh produce need efficient logistics. By focusing on this need, companies can deliver faster and more reliably. They use better delivery routes, real-time tracking, and manage their fleets well. This meets the customer’s expectations for speed and reliability.

Correct pricing is vital to stay competitive and earn profits. Perishability influences pricing strategies. Businesses with products that don’t last long can change prices based on demand and how soon the product will go bad. This approach maximizes revenue from perishable items. It reduces the chance of waste from items not sold in time.

Benefits of Considering Perishability in Business:

• Preserving the freshness and taste of perishable food items
• Capitalizing on customers’ desire for novelty and unique experiences
• Ensuring time-sensitive delivery in industries with perishable products
• Implementing effective pricing strategies for perishable goods and services

Knowing the role of perishability lets businesses handle their products better. They can respond to market changes and stay profitable. Using perishability strategically can satisfy customers and give businesses an edge in a fast-changing market.

Perishability is key in marketing for perishable items. It affects how companies price and manage inventory. They must adapt quickly to demand changes.

By handling perishability well, companies can make more money and keep customers happy. Knowing about perishability helps companies do better in their industries. They can adjust prices or hire more workers when needed.

Companies that think about perishability can beat their challenges. They find smart ways to deal with products that don’t last long. Taking action against perishability leads to happy customers and business success.

What is perishability?

How does perishability influence services, what is the relationship between perishability and services marketing, how is perishability used in different industries, can you provide examples of perishability in different sectors, what does perishability mean in the context of services, how can businesses manage perishability, what is the importance of knowing about perishability, what is the significance of perishability in marketing strategies, related posts.

Editorial Team

Perceptual map in marketing explained with examples, permission marketing explained with examples.

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What Is Perishability in Tourism and Hospitality Industry?

By Alice Nichols

Perishability is a common concept in the tourism and hospitality industry. It refers to the idea that services offered in this industry cannot be stored, saved or reused for future use. Once an opportunity to sell a service is lost, it cannot be regained, which makes it a crucial factor in the revenue management of hotels, travel agencies and other businesses.

What Does Perishability Mean?

Perishability refers to the fact that services offered by businesses within the tourism and hospitality industry are not able to be stored or saved for later use. Instead, they must be offered and sold at the time of availability. This means that if an opportunity to sell a service is missed, it cannot be regained at a later date.

Examples of Perishable Services

A hotel room is one of the most common examples of perishable services. If a hotel room remains vacant for one night, that opportunity to sell the room and generate revenue is lost forever. Similarly, airline seats and cruise ship cabins are also perishable services.

• Hotel rooms
• Airline seats
• Cruise ship cabins

Why Is Perishability Important?

Perishability is important because it affects how businesses within the tourism and hospitality industry manage their revenue streams. They must carefully balance supply and demand for their services in order to maximize revenue.

If there is high demand for hotel rooms during a particular time period, prices will increase accordingly. However, if demand drops suddenly due to unforeseen circumstances such as bad weather or a natural disaster, prices may drop in order to encourage customers to book rooms.

The Role of Revenue Management

Revenue management plays a critical role in helping businesses within the tourism and hospitality industry manage perishability. By using data analysis tools and forecasting techniques, businesses can predict demand for their services and adjust prices accordingly.

For example, a hotel may use revenue management software to predict the likelihood of a room being booked on a particular night. If they believe there is a high likelihood of the room being booked, they may increase the price in order to maximize revenue. Similarly, if they believe there is low demand for the room, they may lower the price in order to encourage bookings.

6 Related Question Answers Found

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Competitiveness.

• Market Intelligence
• Policy and Destination Management

Product Development

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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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Marketing for tourism services

Consider tangible products such as apparel, bags and shoes. Marketing professionals can rely on their usual tools (the oft-cited 4 Ps) when creating a marketing plan. But in the case of tourism services such as tour packages, we are selling not just individual products or services, but an entire experience. Our strategic marketing plan would have to account for these differences, as follows:

Tourism products are perishable.

By perishable, we mean product inventory cannot be carried forward to the next day. Hotel rooms not sold today are gone forever. Yield management is used as a strategic approach to manage perishability.

Tourism products are intangible.

Intangibility refers to the fact that tourism products and services cannot be subjected to scrutiny or sampling. Hence, reviews play a big role in influencing purchase. Actively engage your clients in social media.

The management of reviews, either on the company’s website or on popular sites such as TripAdvisor, is an essential task.

Tourism products are inseparable and variable.

Tourism products are inseparable to the consumer because the consumer and service provider should both be present for the consummation of the sale.

Examples are walking tours or city tours.

In this case, creative distribution strategies should be considered for efficient product execution.

As the experience is also variable, highly dependent on external factors, consistency of the service provider is key to ensure satisfaction.

Customer service during peak season should be the same as the service rendered during lean months.

The guest should be treated with same warmth and attention at all times regardless of the number of other customers.

For this week’s article, we consulted Maricel Badilla, a consultant for destination master planning, tourism and marketing trainer and author. She will be conducting a course titled “Tourism Marketing: Creating a Marketing Plan for your tourism and hospitality business” on Oct. 15.

There is also a course on “Operating and Maintaining Tourism Service Facilities: Standards, regulation, requirements and best practices” on Sept. 28, which is ideal for project management teams of hotels, condotels, resorts, dormitories, bed and breakfast and the like.

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How to develop sustainable travel products customers want

Many travellers want to buy sustainable travel products but don't because of limited availability, a price premium or low credibility, among other factors. Image:  Unsplash/Mantas Hesthaven

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David walfisch, natalie nehme, maksim soshkin.

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Stay up to date:, travel and tourism.

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• Travel and tourism firms are increasingly looking to develop sustainable travel products, but they need to be made more desirable to customers.
• Many travellers want to buy sustainable travel products but don't because of limited availability, a price premium or low credibility, among other factors.
• The How to Create the Sustainable Travel Products Customers Want report outlines what companies can do to create successful products.

Travel and tourism companies are increasingly looking to develop sustainable travel products to capitalize on growing consumer interest in environmentally and socially sustainable journeys, and address the industry’s role in meeting global climate and other environmental, social and governance (ESG)-related goals.

However, successful travel offerings will need to be made desirable to customers by bridging the ‘say-do gaps’ around limited availability, lack of awareness, low credibility, price premium, cumbersome purchasing experience and lack of rewards or acknowledgment.

These roadblocks are common reasons why customers may avoid purchasing sustainable travel offerings, thereby explaining the discrepancy between travellers’ stated intention to travel sustainably and actual booking behaviour.

Have you read?

Why these are the smartest and most sustainable cities, 11 climate leaders share their visions for saving the planet: sustainable development impact meetings, digital technologies can make the real world more livable and sustainable. here's how.

Overcoming the say-do gap roadblocks and further guidance on developing sustainable travel products are some of the main themes covered in the newly-released How to Create the Sustainable Travel Products Customers Want report.

Published in collaboration with Accenture, this World Economic Forum paper is backed by research on consumer travel behaviour and product portfolios of 50-plus travel and tourism companies and involved industry stakeholder consultations and case study interviews with representatives from the aviation, hospitality and car rental and ride-sharing ecosystem.

The resulting white paper provides an overview of existing sustainable travel products and configurations, includes recommendations for creating sustainable products, and presents the industry with a necessary call to action.

The sustainable travel products landscape

Typically, sustainable travel products touch on issues such as carbon reduction, water safeguarding, waste management, worker and community inclusivity, and the protection of natural and cultural heritage.

For the purpose of the report, travel products that address carbon emissions within the aviation, hospitality and car rental and ridesharing were analyzed, with 12 mainstream sustainability features found.

As shown in in the graphic below, these can be grouped into three main decarbonization levers spanning a scale of companies’ effort and integration levels. Sustainable travel products are built according to these categories, starting with a low effort level with compensation strategies, and passing through more robust reduction and zero-emissions strategies.

Under the compensation lever, carbon-offsetting services are a common choice offered to customers by most companies covered in the analysis of the white paper. These services help prevent (avoidance offset) or capture (removal offsets) carbon emissions through mechanism like reforestation and carbon capture, usage and storage.

Reduction products directly produce less carbon emissions and vary by industry. These include the use of more efficient latest-generation aircraft in aviation and optimizing energy efficiency of facility systems like ventilation and air-conditioning in hospitality.

For zero-emissions products, different maturity levels exist, depending on the segment. In aviation electric and hydrogen propulsion aircraft are still under development, while some hotel chains’ properties are already entirely powered by renewables. For car rental and ride sharing, a zero-emission product is also commercially available today in the form of battery-electric vehicles.

Lastly, visibility features such as carbon calculators, filters and green badges can serve as enablers for all the sustainable product types. These tools can help travellers identify sustainable travel offerings and the impact of their purchase decisions, thereby nudging them to make more sustainable choices.

Products can be configured in various ways

It is also important to mention that all of the above offerings can be configured in various ways. For instance, carbon offsets are often offered as an ancillary option during the purchase of an existing travel product or services (for example, as an extra purchase option at the end of booking a flight).

On the other hand, the use of more efficient latest-generation aircraft by airlines is an example of embedded products , as the composition of an airline’s fleet is not a customer choice, but the sustainability benefits of newer planes still become part of the core product.

Particularly for embedded products, the use of visibility tools is key to enabling customer decisions and competitive differentiation. For example, carbon calculators can help customers identify flights flown on the latest-generation aircraft and green certifications achieved through practices such as using renewable energy can help such offerings to stand out in the hospitality space.

How to build sustainable products that customers want

Addressing the say-do gap roadblocks will be key to improving the above sustainable products’ adoption by customers. Several strategies can be used for this purpose, thereby building the foundation for a cycle of sustainable product development.

These recommendations include increasing product availability, improving the customer experience, reducing the green premium and providing suitable product value and impact, focusing on customer incentives and recognition, and educating consumers through greater focus on product credibility and awareness.

• Develop sustainable products: Continually develop new sustainable products and refining existing one based on customer feedback and industry trends.
• Provide a frictionless experience: Simplify the booking process by adding filters and options to compare alternatives and select sustainable products to help travellers make informed decisions.
• Improve the value proposition: Improve the perceived and actual value delivered to travellers through the sustainable product by having lower prices or highlighting the sustainability and other benefits of the offerings in ways that help justify higher prices (i.e., competing on value, not price).
• Recognize and reward customers: Reward travellers’ sustainable choices through incentives and the opportunity to showcase their sustainable behavior.
• Increase awareness: Educate travellers about sustainable travel products, alternatives, and their environmental impact.
• Improve transparency and alignment: Provide clear information on calculation methodologies, underlying criteria, and clear traceability of environmental action.

In addition, investment in technology, data and analytics and related competencies will be critical factors in successfully creating sustainable travel products.

Moreover, sustainable travel product development challenges can’t be tackled in isolation and will require cross-industry and stakeholder collaboration and alignment.

In the report, we have outlined an industry wide call to action that will help overcome the existing roadblocks.

During COP26 the World Economic Forum and the Clean Air Fund launched the Alliance for Clean Air , the first global private sector initiative to tackle air pollution.

The Alliance for Clean Air brings together business leaders committed to measuring and reducing value chain air pollutant emissions, investing in innovation, and working with policy makers and peers to champion the social, economic and climate benefits of tackling air pollution.

Announced at COP27, the Alliance for Clean Air announced the release of a guide to help businesses deliver on their commitments to reduce air pollution across value chains and get ahead of sustainability reporting standards.

A Practical Guide For Business Air Pollutant Emission Assessment – developed by the Stockholm Environment Institute, Climate and Clean Air Coalition, and Inter IKEA Group – enables alliance members to quantify the air pollutant emissions along their value chains from key sectors, including electricity generation, transport, industrial processes, agriculture and waste. This has enabled them to consider the impact of their existing climate mitigation strategies on air pollution and ways to increase their ambition through specific air pollution mitigation measures. It is an important contribution that businesses can take to enhance their sustainability strategies.

Also announced at COP27, companies interested in learning more about the business case for tackling air pollution as part of their climate strategies can access a new business action toolkit launched in partnership with Accenture and the Clean Air Fund.

If your company is committed to improving air quality contact us to express interest in working with us.

Examples include sharing success stories about sustainable travel products, aligning across the industry on sustainability metrics and reporting standards, working with supply-chain partners and aligning with local governments and communities on local sustainability initiatives and needs.

Implementing products for more sustainable travel is possible, but stakeholders across the industry need to work together to create them.

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World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.

The views expressed in this article are those of the author alone and not the World Economic Forum.

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What are perishable goods? Storage and Transportation

The storage and transportation of perishable goods is a specialist area for order fulfillment , whether B2B or B2C. There are many legislative and cost implications to being responsible for items that can quickly be wasted if not treated with the correct care and attention. 

In this article, we will explore the types of products that are considered perishable and non-perishable, how to store them, what considerations you need to make about their storage to ensure best practice, and how to transport them. 

What is a perishable good?

Perishable vs non perishable, how to store perishable goods in a warehouse, transporting perishable goods, using mintsoft to help manage perishable goods inventory.

Perishable goods are defined as goods that have a fixed or specified shelf-life or expiry date - after which, they become unsuitable for consumption or use.

Additionally, some perishable goods need specialised storage as they’re subject to deterioration, spoilage or impairment over a period of time, if not chilled, refrigerated or frozen.

Usually, the term perishable goods refers to food and drink items that have characteristics that make them likely to deteriorate in a short period of time, however it can also refer to other types of products. Some examples of perishable goods include: 

• Dairy products
• Pharmaceuticals
• Cosmetic items
• Chemical materials

Non-perishable goods refers to products that have a long shelf-life and can be stored at room temperature for a long period of time, without them becoming unsafe for consumption or use, as long as their packaging remains intact and sealed. 

Unlike perishable goods, non-perishable means they can withstand a delayed delivery, and be stored without specialist arrangements.

Some examples of non-perishable goods are:

• Canned, jarred, dried or dehydrated food
• Instant coffee 
• Bottled water
• Cleaning products
• Personal hygiene products

To store perishable goods, your warehouse facilities need to offer the ideal conditions. There are multiple factors to consider as perishable goods are affected by temperature, humidity, light and atmospheric pressure. Therefore, specialised storage is required to ensure the products remain suitable for consumption or use.

In the UK, there are various legislative standards your facilities must adhere to, to be able to store perishable goods. These include The Food Hygiene (England) Regulations 2006 (or equivalent for other UK regions), as well as well-known industry standards such as the Regulation (EC) 852 of 2004 , BRGCS certification and The HACCP framework . Typically, you should go above and beyond these industry standards to deliver excellent service for the storage of perishables.

Temperature

As perishable goods quality and viability can be affected by temperature and humidity, maintaining the correct storage temperatures is crucial. The temperature at which you store perishables will depend on the types of goods. 

Some of the most commonly used warehouse storage solutions are cold stores and freezing chambers as these can hold large quantities of stock while ensuring the correct temperatures, and can have their temperatures set according to the type of goods being stored.

The hygiene with a perishable storage facility is paramount as these products need to be fit for human consumption or use. Due to this, the danger of outside contaminants rendering products unsafe is extremely high, meaning key areas will need to be kept at a high level of cleanliness. 

These areas include floors, walls, racking, trollies, any means of warehouse transportation and all other equipment used. The use of Personal Protective Equipment (PPE) is also crucial to minimise the chance of contamination passing from the staff members that work in these areas.

Traceability

Being able to track perishable goods at every stage of their supply chain journey is essential, and during their storage before transportation is a part of the journey. 

Both the suppliers and customers of perishables need full visibility of where and how goods have been stored, for the certainty of its quality for the end consumers. 

Inventory management software used, as well as barcode scanning technology (if you use it) should enable warehouses to keep detailed records of perishables, including when goods arrived, their batch numbers,, their best-by and expiration dates, where and how they are stored within the warehouse, any movements within the warehouse and their despatch, for full traceability which can be used should there be any discrepancy, quality issue, or recall of the products.

Expiration dates

A perishable products’ expiration date is a key piece of data which will influence its inventory and warehouse movements. The expiration dates will need to be closely monitored by staff members to make decisions about stock rotation to avoid stock becoming waste products unnecessarily. 

Stock rotation

Stock rotation is a core part of storing perishable products; there are two main inventory storage methods which can be used to avoid unnecessary waste. 

First In, First Out (FIFO)

This method means that the products first booked into the warehouse will be the first despatched to their final destination. This is to ensure perishables spend as little time in the warehouse as possible.

First Expire, First Out (FEFO)

This method relies on the products expiry date, and ensures that items with the earliest expiry dates are the ones to be picked and despatched first. This is to ensure minimal quantities of stock become waste products.

The transportation of perishable goods is as important as their storage, to ensure goods do not spoil in transit. 

Much like their storage, correct temperatures and transportation methods must be used to ensure their quality. For example, bulk or business to business (B2B) orders should be shipped using refrigerated trailers and hygiene must be maintained through their transfer from storage to transportation and during their journey.

Goods shipped directly to consumers (B2C) must also be transported in a method that will ensure their quality - a common example of this is food subscription boxes packaging their products with ice blocks and insulted materials to ensure the food remains frozen and/or fresh in-transit.

If you’re looking for a Warehouse Management Software (WMS) that can cope with the demands and methods required to store and despatch perishable goods, Mintsoft may be the WMS software for you. 

With inventory tracking capable of containing the critical information required for perishables, along with customisable workflows to support both FIFO and FEFO picking allocations.

If you’d like to explore Mintsoft’s cloud-based WMS software further, please book a session with one of our fulfillment experts for a personalised demonstration of the system and its capabilities for the fulfillment of perishable goods.

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Chapter 8. Services Marketing

8.2 Differences Between Goods and Services

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

• Heterogeneous
• Inseparable

The rest of this section details what these concepts mean.

Intangibility

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

Heterogeneity

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

Inseparability

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

Perishability

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

Untouchable: a characteristic shared by all services.

Variable: a generic difference shared by all services.

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

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

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

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

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What is Perishable Tourism Product

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Substitution, tourism

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The concept of substitution has its roots in economics and occurs if (and only if) x is a substitute for y , then y is a substitute for x (Newman 2008 ). Substitution in tourism follows when a particular product or service can be replaced by another comparable one. For example, rail service between Paris and London offers a close substitute to air and sea travel between the two cities.

Tourists have alternative options and regard different destinations, either national or international, as partial substitutes (Forsyth et al. 2014 ). For example, in the central European skiing market, Switzerland , Austria , and France are to some extent substitutes, and changes in relative prices will cause demand patterns to change (Tribe 2011 ). This effect is known as the substitution effect, which is the extent to which tourists will change from one destination , product, or service to another when the price of the former rises, ceteris paribus. If there are close substitutes for a given destination,...

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Baumol, W., and A. Blinder 2011 Microeconomics: Principles and Policy. Mason: South-Western Cengage Learning.

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Forsyth, P., L.Dwyer, R. Spurr, and T. Pham 2014 The Impacts of Australia’s Departure Tax: Tourism versus the Economy? Tourism Management 40:126-136.

Newman, P. 2008 Substitutes and Complements. In The New Palgrave Dictionary of Economics, S. Durlauf and L. Blume, eds., online reference (no page). London: Palgrave Macmillan.

Tribe, J. 2011 The Economics of Recreation, Leisure and Tourism. Oxford: Elsevier.

Stabler, M., A. Papatheodorou, and M. Sinclair 2010 The Economics of Tourism. London: Routledge.

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Honggen Xiao

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van der Veen, R. (2015). Substitution, tourism. In: Jafari, J., Xiao, H. (eds) Encyclopedia of Tourism. Springer, Cham. https://doi.org/10.1007/978-3-319-01669-6_341-1

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Tourism Guru

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.

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Perishability of Tourism Product

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

Multiple Uses

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

Variability

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

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What are examples of perishability of tourism product?

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Add your answer:

What are examples of inseparability of tourism product?

loans have to be given to tourists visiting the site

What are the characteristics of products and services?

Product / ServiceTangible / IntangibleSeperatable / InseperatableHomogeneous / HeterogeneityStore / Perishability

An example of tourism product?

example of tourism product for me is

What is meant by tourism perishability?

Tourism is a service that you are selling. Since it is a service and not a tangible good, it is perishable or in other words you can't stock up and save it. An example of perishability in tourism would be airline tickets. Say there are 100 seats on a flight at a certain time and only 70 of them are bought. You can't use the 30 empty seats and apply them to the next flight. Instead the 30 seats stay empty and are a loss to the company. The empty airline seats no longer count and are perishable.

What are the classification of tourism product?

business tourism leisure tourism domestic tourism

What are the classifation of product?

Why is it that the product of the tourism are not used up.

the product of tourism is not use up because it is a product to be junk or replace after you use it!!!

15 types of tourism and its definition and examples?

dark tourism

What are the product of tourist?

two types of tourism product

What is the definition of tourism product according to World Tourism Organization?

base to the world tourism organization the product of tourism is the one important in the world to have a good income the there country that the one fact that having a lot of tourism product is important because its give the country income tax and etc. to government

Tourism is generally a service rather than a physical product?

Tourism is generally considered a service. Tourism is not a physical product because you cannot take the environment home with you.

What are the examples to increase the opportunity cost in tourism?

the increased opportunity costs in tourism

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