Measuring and Forecasting Demand - Tourism: Principles, Practices, Philosophies - page 298

E QUESTIONS FOR REVIEW AND DISCUSSION E

1. Why are demand data so important? Give examples.

By whom are demand data used?

6. A state tourism director wants to convince the legis-

lature to increase the promotion budget for the next
fiscal year. What measure of demand should be used?
How might these data be obtained?

2. Explain why resistance to make a trip is inversely

related to demand. Are there situations with which you
are familiar? Explain.

7. How much faith should be placed in mathematical

models of demand projection? What characteristics of
input data affect the degree of reliability?

3. Describe in detail the three factors that determine

propensity to travel. Create an example using all three
of these major elements. 8. A national lodging chain is planning expansion. What

are the best methods for estimating future demand?

4. What determines the degree of resistance to travel

experiences? Considering the five factors described in
this chapter, give an example involving: (1) an irresistible
travel offer, and (2) a seasonal travel product.

9. How valuable is trend analysis?

10. What is the Delphi method?

5. Using the three measures of demand presented,

describe a situation in which each one of these would
be the most meaningful.

E CASE PROBLEMS E

1. Assume that the federal government has imposed an

increase in the gasoline tax of 50 cents per gallon, effective
in three months. How might a motel franchise
headquarters organization estimate the effect on demand
that this new tax would have for their member motels,
which are located in all parts of the country? How could a
restaurant chain organization operating turnpike food
services make such an estimate? How could a regional
airline?

in resort-type overnight and longer-stay accommodations.
The new suites will possess an exciting array of electronic
entertainment features, including a large screen, stereo
sound, movies, and DVDs. Understandably, these suites are
quite expensive to build. Thus, reasonably accurate
demand forecasts are essential. Byron C. has tentatively
selected your city as a location for the first of these new
suite concepts. As executive vice president of your city's
convention and visitors bureau, what method would you
use to assist Mr. C. in making these crucial demand
estimates?

2. Byron C. is director of development for a major hotel

systems firm. His company has formulated a new concept