Design and development of touristic products Main author: Gábor Michalkó Szilvia Boros, János Csapó, Éva Happ, Pál Horváth, Anikó Husz, Mónika Jónás-Beri, Katalin Lőrinc, Andrea Máté, Gábor Michalkó, Erzsébet Printz-Markó, Krisztina Priszinger, Tamara


Table 4           Differences between the demand of leisure and business tourism



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Table 4           Differences between the demand of leisure and business tourism


 

Leisure tourism

Business tourism

But!

Who pays? (covering expenses)

Tourist

Employer or organization

Private travellers pay for their own trips

Who makes the decision about the travel?

Tourist

Organizer of the meeting/ conference/ exhibition/ incentive trip

The organizers often ask for the opinion of the participants about the next location

Timing of the travel

Longer trips in the peak season + weekend travels

All year long/ from Monday to Friday

MICE tourism is less intense in July and August

Timing of the reservation

A few months before the travel + in case of short stays, a few days before

Shortly before

Organization of large conferences is launched sometimes years before the event. In case of leisure tourism, last minute is typical

Travellers

Everybody who has discretionary income and leisure time

Assignee, member of the organization

In case of MICE tourism, there is often an accompanying person who travels for non-business purposes

Destination

All types (cities, coastal areas, mountain areas, villages etc.)

Centrally located cities of economically developed countries

In case of incentive tourism, places of leisure tourism are used Smaller conferences are organized in rural venues as well

Source: based on Davidson, 1994 own construction: Happ, 2010

The following factors influence the demand for business tourism in a given destination:

a.    state of the economy, level of economic development,

b.    value of the national currency,

c.    political stability,

d.   expenses of the travel,

e.    historical and/or cultural relation with other places,

f.     industrial structure,

g.    governmental policy.

Different types of segmentation can be related to the demand of MICE:

-          Direct or indirect (through travel agency) reservation

-          Motivation (participation in a conference, business trip etc.)

-          Nationality

-          Gender

-          Frequency of the travel

-          Age

-          Method of travel, transportation mean used

-          International or domestic

-          Short or long stay

-          Seasonality

Demand can be characterized based on the branch that it is associated with. The largest demand within MICE tourism can be experienced in IT, economic and medical sciences sectors.

Seasonality appears as demand characteristic as well, though it is often mentioned that one of the advantages of business tourism is that it is less dependent on seasons than leisure tourism. It is definitely true that the season is much longer and less characteristic, nevertheless there is a kind of seasonality in business tourism as well. Summer months of the year are less typical for travelling, and in case of weekly seasonality, the busiest period is from Monday to Friday.




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