What is perishability in travel and tourism?
Perishability in travel and tourism refers to the fact that tourism products cannot be stored for future sales or use. If a flight departs with empty seats or a hotel room stays vacant for a night, that revenue opportunity is lost forever. It's a unique characteristic of the tourism industry and it presents a significant challenge for businesses. They must balance supply with demand, predicting consumer behavior to minimize wasted opportunities. As a result, strategies like dynamic pricing and last-minute deals are often used to mitigate the effects of perishability.Read More