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TS- 1 FOUNDATION COURSE IN TOURISM
(TUTOR MARKED ASSIGNMENT)
Course Code: TS-1 Programme: BTS
‘otal Marks: 100 Assignment Code: TS-1/ TMAJ 2023
Note: This TMA consists of ten questions, out of which you have to attempt any five.
‘The question carries 20 marks each and should be answered in about 600 words each.
Send your TMA to the coordinator of your Study Centre.
1. What are the essential features of a tour? Why isa package tour a popular phenomenon? 20
2. Briefly explain the different forms of tourism, 20
3. Define the following:- (SX4-20)
(@)_—Altemative Tourism
(6) Sustainable Tourism
© VER
(@ Business and Incentive Travel
4, Discuss the importance of the Silk Route& Grand Tour in the history of tourism. 20
Discuss the fundamental aims and objectives of UNWTO. 20
6. Define the followin (Sx4-20)
(TAAL
() FHRAL
© 1ATO
@ PATA
7. How seasonal festivals can become outlets of handicrafts, handlooms as well as destination of
attraction for the tourists. Explain with examples. 20
8. What are the different parameters to be considered by Tour Operators while working on a tour
programme. Illustrate with the help of Examples. 20
9, What are the different types of Maps? What is the importance of Salva Sutra and Arthashastra in
the history of map making in India? 20
10, What do you mean by product in Tourism? What are the five major characteristics of service
product? 20Copyright with Kunj Publication only Not for resale Ph. 8006184581 (Call Us)
TS-1 FOUNDATION COURSE IN TOURISM
Course Code:
Programme: BTS
Assignment Code: TS-1/ TMA/2023
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Note: This TMA consists of ten questions, out of which you have to attempt any.
five. The question carries 20 marks each and should be answered in about 600
words each, Send your TMA to the coordinator of your Study Centre.
2. Briefly explain the different formsofitourism.
The socioeconomic phenomenon known as tourism is comprised of the activities and
experiences that tourists and visitors have while they are away from the surroundings
of their homeenvironment. These activities and experiences are serviced by the travel
and tourismindustry as well-as the hostdestination; [Link] consider this\whole
package of activities, experiences, and services to be an example of a tourism product.
‘The tourist industry-can be conceptualized in terms of the supply and demand that it
experiences. Planning for tourism should work toward striking a healthy balance
between supply and demand. This involves knowledge not jiist of the characteristics
and tendencies of the market, but also of the planning process that is used to satisfy
the requirements of the market.
‘Typically, tourists from key generating markets are considered to be part of the
demand side, whereas the supply side is comprised of any and all facilities, programs,
attractions, and land uses that have been created and are being managed specifically
for visitors. These elements on the supply side may be under the jurisdiction of the
government, commercial businesses, or even groups that are not for profit. Also, the
formation of novel and forward-thinking types of collaborations is taking place in
order to guarantee the sustainable growth and administration of tourism-related
resources.
Flows of resources such as capital, labour, goods, and tourist expenditures into the
destination can be seen to be linked to the supply and demand side of the equation.
Likewise, flows of marketing, promotion, tourist artifacts, and experiences from the
destination back into the tourist generating region can also be seen to be linked to this,
side of the equation.Copyright with Kunj Publication only Not for resale Ph, 8006184581 (Call Us
In addition, there is a possibility that some of the money spent by tourists will find its
way back into the regions that are responsible for bringing in those tourists. This c:
happen when foreign tourism investors repatriate their profits or when tourists pay
more for upgraded goods and services at their destination. The journey to and from the
destination is significantly aided by various modes of transportation.
FORMS
Several kinds of tourism can be distinguished from one another according on the
reasons for the trip and the activities that are undertaken, ‘They are then broken down
even further into a wide variety of categories based on the characteristics of each type.
‘The following are examples of forms of tourism:
Recreational: A person can escape the monotony of their regular existence through
the practice of recreational or leisure tourism, In this scenario, people spend their free
time in various locations, such as on beaches, hills, ete.
Cultural: The goal of cultural tourism is to sate a traveller’s intellectual and cultural
curiosities, and it typically entails trips to historic landmarks, important religious sites,
and other such locations.
Sports/Adventure: This category ificludes vacations that people have taken with the
intention of participating in activities such as golfing, skiing, or hiking,
Health: Those who travel for the sake of medial treatment or to visit locations that
offer potential curative benefits, such as hot springs. spasy yoga retreats, etc:, fall
under this group of travellers.
Tourism for Conventions: Itis turning into an increasingly essential part of the
traveling experience, Conventions linked to people's businesses, professions, or
interests often require them to travel either inside a country or beyond to attend.
Tourism Encouraged by Incentives: Large corporations often provide their dealers
and salesmen with holiday trips as a form of reward if they accomplish high
benchmarks in sales. This is a new phenomenon that is rapidly growing in the tourism
industry. These experiences are given in place of monetary incentives or present
Currenily, incentive tourism is a business that is worth three billion dollars ju
United States.
3. Define the following:
(a) Alternative Tourism
Alternative tourists enjoy engaging in non-traditional activities. They desire to spend
less time with other tourists and more time interacting with the locals and their living
cultures. They want to stay away from utilizing any "tourist" accommodations, modes
of transportation, and other services. They would rather use the services provided byCopyright with Kunj Publication only Not for resale Ph, 8006184581 (Call Us
the local populace or share them. They have high hopes that this will allow them to
experience some facet of their lives.
Many travellers opt for other types of vacations because they are concerned about the
detrimental effects that mass tourism might have on a particular location. It is possible
for tour operators to specialize in such forms by putting an emphasis not on the
provision of artificial luxuries but rather on the people and the cultures they visit
‘These kinds of vacations can last for a somewhat longer period of time and may be
more affordable than the typical two-week trip, but they can also be rather pricey.
The goal of the travel is to better one’s awareness of the political, social, and religious
traditions of the area, and it is done in conjunction with "local friends." The
destinations are remote villages and mbal hamlets, as well as palaces that belonged to
former maharajas. Hotels and private residences both have warm, inviting
environments and meticulously maintained spaces. Locals taking their items to market
on camels or donkeys, boats in backwaters, or treks in the highlands pack every
available mode of transportation to capacity,
One of the most common alternate vacation spots is India. It is a "subtle combination
of ancient and modern, ceremonial and urban," as the author describes it. vibrant and
brimming with the local colour and life
(b) Sustainable Tourism:
Sustainable tourismis a concept that encmpasses the entire travel experienie, paying
regard to economic, social, and environmental concerns as wellas-the needs of host
communities and tourists’ experiences, Sustainable tourism should take into account
issues of environmental preservation, social fairness, and quality of life, as well as
cultural diversity and [Link], healthy economy that provides opportunities for
employment and wealth for all, Although there is considerable misunderstanding
about what “sustainable tourism" actually implies, it has its roots in sustainable
development. The idea that tourism should be sustainable is now widely accepted. All
types of tourism, in fact, have the potential to be sustainable with the right planning,
development, and management. To lessen the adverse effects of tourism's expanding
influence, such as its environmental implications, tourist development groups are
encouraging sustainable tourism practices,
‘Through initiatives like the International Year for Sustainable Tourism for
Development in 2017, the United Nations World Tourism Organization highlighted
these practices by promoting sustainable tourism as a component of the Sustainable
Development Goals. Sustainable tourism and several of the 17 Sustainable
Development Goals are closely related (SDGs). Tourism for SDGs focuses on the role
that tourism plays in achieving SDGs 8 ("decent job and economic growth"),
(‘responsible consumption and production"), and 14 ("life below water"). However.
improvements are anticipated to be gained from appropriate management aspects and
including sustainable tourism as part of a larger sustainable development strategy.Copyright with Kunj Publication only Not for resale Ph. 8006184581 (Call Us)
According to World Travel & Tourism Travel, tourism generated $1.7 trillion in
export earnings and contributed 10.3 percent of the global gross domestic product in
2019, International tourist arrivals reached 1.5 billion marks (a growth of 3.5 percent)
in 2019.
(C)VFR
‘The regulations that control how aircraft are to be operated in visual meteorological
conditions (VMC) are known as visual flight rules (VFR) (conditions in which flight
solely by visual reference is possible). A VFR aircraft may be subject to restrictions,
depending on whether and when it is allowed in controlled airspace, because of the
limited communication and/or navigation equipment needed for VER flying. In
national Aeronautical Information Publications, any conditions are described in depth
(AIP).
Visual flight rules (VFR) in aviation are a collection of rules that a pilot must follow
when flying an aircraft in weatherthat is typically clear enough for the pilot to see
where the aircraft is heading, As indicated under the regulations of the appropriate
aviation authority, the weather must specifically be better than basic VFR weather
minima, ic, in visual meteorological conditions (VMC). The pilot must be able to
control the aiteraft while keeping an eye on the ground and keeping a visual distance
from/obstacles and other aiferaft.
Pilots must utilize instrument flight rules and operate the/aireraft primarily by using
the instruments rather than visual reference if the weather is less than VMC: A VFR’
flight may request permission from air traffie control to operate as-Special VFRsin-a
control zone.
(d) Business and Tncentive Travel
Needs of business travellers and vacationers frequently overlap. The only distinction
is that the demand for business travel is focused on diplomatic or trade hubs rather
than resorts or scenic destinations. They could want specialized services like meeting
and convention rooms, secretarial and communication facilities, etc. Although
swimming pools and health clubs are now common amenities, there is more of an
‘emphasis on car rental and lodging.
Conferences, Fairs, and exhibits are of particular appeal to tourist destinations. Several
businesses today believe that their CEOs work better and more creatively in a resort
setting. As a result, there are more corporate conventions. Trade unions, political
parties, associations and professional bodies are among the groups that use convention
center complexes.
Annual meetings of associations and professional bodies are now held as a result of
the need for communication and specialization. At these meetings, new ideas andCopyright with Kunj Publication only Not for resale Ph. 8006184581 (Call Us)
strategies are discussed, as well as new products, services, or product lines are
showcased.
Fairs and exhibitions offer visitors a chance to sample some of the regional tourism
offerings while also reflecting the health of the local economy. Incentive travel, or
travel of a touristic type as a reward, for some unique achievement or service of an
employee to the company, is an area of rising importance to the tourism industry. The
majority of workers view paid holidays as a desirable benefit because they have a
quality of living that they cannot or do not want to sacrifice,
4. Discuss the importance of the Silk Route& Grand Tour in the history of
tourism.
SILK ROUTE
‘The Silk Road was arguably the most fascinating link in the East-West migration of
people. This started in the year 2000'B.C, and changed over time as moderniza
and natural forces demanded, The Silk Road is proof that travellers ignore
inconveniences wher traveling across continents.
Travel eliminates people's ignorance and superstitions, which is amazing.
‘The Silk Way is mentioned in travelogues, kingly chronicles, courtly histories, and
pilgrims’ accounts, The participants in the emporium trade, who came together to
trade silky muslin, fine glass, tea, rice, and spices, also exchanged ideas and moved.
production processes from one region of the world to another. Similar to other modes
of transportation, the Silk Route:
‘* » Stages of the journey were short
Due to the route’s harsh topography and environment, which made it one of the
most dangerous and lucrative in terms of income, it was typically done in the
winter.
When the stars weren't charting the paths of a stream or river, navigation was
done by the stars.
As a resource for the state, money was taken in from the traveller. Because
travellers brought wealth, larger communities enticed travellers with lodging
and other amenities while also lowering taxes to encourage wealthy individuals
to visit their bases, towns, and cities.
Along this East-West axis, new technologies emerged with money and ideas.
For instance, the Silk Road also helped spread irrigation, vegetation, flowers,
printing, paper, and gunpowder to various nations.Copyright with Kunj Publication only Not for resale Ph, 8006184581 (Call Us
‘© The traveller’s experience revealed a mind-set that could be categorized as
touristic because it involves learning about new places, people, and cultures as
well as experiencing the novelty of the globe.
“Trade and commerce suffered with the demise of the empires." The person's
movement was also significantly limited. Yet we find the travellers, the pilgrim and
the artisan going to the fair. During the early medieval period, the seaside resorts, hill
stations, and baths that were centers of pleasure and relaxation had become obsolete.
Nonetheless, a multifaceted aspect of tourism has undoubtedly developed as a result
of the growth of tourist activities throughout the years:
1) Rather of emerging as a single or singular orientation, tourism developed as an
amalgam of phenomena and practices and their relationships as a result of the
complexity of motivations, wants, and satisfaction
These interactions result from people traveling to and staying in different
places, which adds a dynamic element tothe development of tourism.
Activities associated with tourism are distinet from those associated with the
working and resident populations
4Y Thal twist thoves af€ brief aiid 6f @temipordty ature, With HE purpose of
returning to the place of residence once the journey is finished.
5) Loeations aré selected for a’panietilar attraction, which may be related to
business, employment, or leisures
GRAND TOUR
‘The phrase is Commonly used to refer to a cultural, educational, and recreational tour
of Western
Europe by a wealthy social elite. It frequently comes up when discussing the
development of tourism in Europe. The majority of contemporary studies portray the
Tour in a conventional light, failing to acknowledge that it was the first significant
tourist movement for which we have primary sources like traveller’s letters, journals,
and diaries. These sources suggest that each large-scale movement of tourists is
influenced by a specific social and cultural setting, and that each nation can establish
its own understanding of the grand tour.
The effects of such a journey on literature, social and economic history, and art and
intellectual life suggest that the aristocracy was perhaps most evident, While the
artisan has passed on his specialty and skill in pursuit of a master, the middle class,
including both merchants and scribes, have documented the travels of the tourist.
‘There are various contested claims made about the Grand Tour, including that it took
a moderate pace and adhered to a predetermined path. We now have proof that no
predetermined pattern is being followed, and that speed is also being maximized. It isCopyright with Kunj Publication only Not for resale Ph. 8006184581 (Call Us)
also debatable whether the Grand Tour served as a crucial component of diplomatic
preparation or served to conclude a semester at Oxford or Cambridge. Was that the
outcome of religion being secularized? Was the tour's demise brought on by the
arrival of the railroads or by a shift in cultural values brought on by the growth of the
middle class? All of these elements played a role in the formation of the concept of the
Grand Tour, a lengthy itinerary that tourists can follow. The following are some traits
of the Grand Tour to note:
1) Class can be used to define the Grand Tour, which would then dictate the
locations and manner of transportation, For instance, the nobility might
accompany the court to resorts near lakes, the ocean, or hills. The nobility and
top officials would imitate this behaviour and attend renowned educational
institutions.
The locations on the itinerary can be used to define the Grand Tour, but doing
so would restrict the classes that can take part in lengthy travel.
According to the Oxford English Dictionary, the Grand Tour is a journey to the
main cities and tourist destinations in Europe, which was once considered to be
a crucial component of the education of young men of "good birth” and
“wealth.”
There were many different motivations for joining the Grand Tour, including
career, education, culture, literature, health, science, business, and economics.
Depending on the social position, Cultural setting, and trends in travel and
lodging at the time, one or more of these reasons may have been the main-one.
The Grand Tour schedulé was highly correlated with the accessibility of
tourism resources, particularly those pertaining to facilitation and fashion
trends, The date was also influenced by seasonal variations, as well as by the
actions and events of the relevant parties. The length of stay varied by location
but was influenced by similar tends.
In the 19th century, an emerging tourism sector also started to influence
tourism, as commercial facilities were needed to support the informal and
formal arrangements that merchants, pilgrims, and travellers had previously
frequently used. As a result, lodging in inns, taverns, and hotel rooms spread,
especially in urban areas.
The Grand Tour turned travel into a family activity, and women tourists soon
started to travel. There is a lot of evil in this period of tourism history. The only
issue is how to choose and analyze it such that it can be found in one location
for any time period or location.
6. Define the following:Copyright with Kunj Publication only Not for resale Ph. 8006184581 (Call Us)
(a) TAAL
‘Twelve of India’s top travel brokers decided in 1951 that it was time to "found an
Association to control the travel industry along organized lines and in conformity with
strong business principles." The Travel Agents Association of India was founded as a
result. The main objective was to
‘© safeguard the interests of industry participants,
‘* encourage its systematic development and expansion, and
‘* protect the traveling public from being taken advantage of by dishonest and
untrustworthy operators.
In actuality, the travel and tourist industry is represented by TAAL, a "professional
coordinating body.” It is acknowledged as the primary organization that represents the
travel sector in India.
Its objectives as a nonpartisan, non-commercial, and non-profit organization are:
In order to protect the interests of travellers,
upholding high standards of ethies in the tourism industry,
advancing the travel industry by enhancing visitor services and corporate
operations,
fostering cross-membership among TAAI members, and
‘© Contributing to the industry's sound development and expansion.
By 1993, TAAT had more than 600 members, including members from several
categories.
The TAAI Active Members are expected to:
understanding of travellers’ demands
Make reservations for many airlines both domestically and internationally.
plan vacations, and
Guarantee a hassle-free, reliable trip.
(b) FHRAICopyright with Kunj Publication only Not for resale Ph. 8006184581 (Call Us)
‘The Federation of Hotel and Restaurant Association of India, established in 1954, was
registered as a company on December 7, 1955, in accordance with the Indian
Companies Act. The Hotel & Restaurant Association of Eastern India, Calcutta; Hotel
& Restaurant Association of Northern India, New Delhi; Hotel & Restaurant
Association (Western India), Bombay; and the South India Hotels & Restaurants
Association, Madras, came together to form the Federation.
‘These are the Federation's main goals:
‘* assemble the four Regional Associations into a national organization that is
representative,
Assemble all of the hotels and restaurants in India into a national brotherhood.
Ponder and make judgments regarding all issues affecting the hotel and
restaurant sector.
Serve as a hub for knowledge on the hotel and restaurant sector, publish
statistics about it, and offer advice to its members on issues that pertain to
them.
market and advertise the hospitality sector
Coordinate and communicate with the Ministry of Tourism and other relevant
Departments and Agencies of the Central and State Governments in order to
accelerate the growth of the hotel and restaurant sector by securing incentives,
that are appropriate for this sector. You should also take into consideration all
issues related to the hotel and restaurant sector and, if at all possible, work to
have industry grievances resolved.
(©) IATO
In1981, the Indian Association of Travel Operators was founded. To "promote
worldwide understanding and goodwill to the greatest possible benefit" has been the
goal. The Association, a grouping of tour companies, supports and encourages the
growth of tourism in India. Either directly or through conversations and meetings with
other organizations and agencies, this is accomplished.
Organizations having a good professional reputation and standing that have been
sociated with the tourism and/or travel business for at least one year are eligible to
join. As with the type of membership, there are also a few other requirements:
i) Active Members
The following items qualify for this category:Copyright with Kunj Publication only Not for resale Ph. 8006184581 (Call Us)
a business or organization with a permanent presence in India
tour operator or travel agent who has been acknowledged by the Department,
of Tourism as such for at least one year,
Its key substantial portion of activities is promoting tourism, and its annual
minimum foreign exchange revenues are Rs, 10,00,000.
ii) Members of the Ally
Any business or organization recognized by the state or federal government, their
trade association, or both that regularly engages in or is connected to the tourism and
travel sector, including carriers, hotels, caterers, excursion agents, transportation
providers, forwarding and clearing agents, shipping firms, state tourism organizations,
and trade publications
iii) Other member categories include:
‘* Members of the Allies Abroad,
Member Associates, and
‘© Special Members
@PATA
A membership organization, the Pacific Asia Travel Association (PATA) works to
encourage the development of travel and tourism in the Asia Pacific area responsibly
In order to promote travel to the mostly unexplored region of Asia Pacific, Pan
American Airways’ William, Mullahey set out to organize the inaugural Pacific
region travel conference,
According to Lorrin P. Thurstin, the gathering was held to “discuss cooperation
among Pacific countries that would result in a greater exchange of visitors to their
mutual advantage, and to develop methods of presenting the Pacific area to the world's
travelers and the travel trade by easing travel restrictions, addressing accommodation
shortages, and telling the Pacific story in advertising and publicity."
Invitations were sent out by the office of Hawaii's territorial governor, Ingram
Stainback, in March 1951 for the conference, which was scheduled to take place the
first week of June. Sadly, a lot of the responses were received too late, therefore the
conference had to be postponed.
Then, in October 1951, Thurstin sent Mullahey the now-famous cable: "Proceed to
send invitations to governments and carriers to attend Pacific Area Travel conference
for the purpose of establishing permanent Pacific Travel Association and determine
most convenient date during first three months 1952." Thurstin was in Paris at the
time, attending a European travel conference.Copyright with Kunj Publication only Not for resale Ph. 8006184581 (Call Us)
10. What do you mean by product in Tourism? What are the five major
characteristics of service product?
PRODUCT IN TOURISM
The requirements of a tourist relate to comfort and enjoyment during travel, lodging,
meal preparation, and visits to points of interest and attractions. Thus, a traveller
anticipates that they will:
be taken care of and looked after,
be able to go to interesting places, spend enough time there, and take part in
activities that interest them,
not waste time waiting for transportation or at inconvenient locations due to
bad weather or other circumstances,
not rush or hustleadway from the desired location,
be proyided with delicious food that is good for their health and tastes,
if you're in a group, find some decent company,
[Link] able to choose how one wants to experience local life styles, culture,
food, etc. in new areas, and
pose no risk to one’s persofi, possessions, etc.
‘Three Key components ensure that these tourist expectatior
© Attractions
Facilities, and
© Accessibility.
‘These three characteristics make up a tourism product:
© The things to view and enjoy are called attractions, and they might be anything
from beaches to mountains, flora and fauna, historical and cultural sites,
entertainment, etc.
‘© The comfort is taken care of by facilities, which include lodging, food,
communications, guides, and more.Copyright with Kunj Publication only Not for resale Ph, 8006184581 (Call Us
‘© Accessibility is concerned with obtaining resources—such as lodging,
exchange, and transportation—without hurry or damage—as well as formalities
associated with getting to those resources, such as visas, customs, reservations,
ete.
‘The tourist offering is intricate. It is made up of a number of components that different
people contributed. You read about the consumers of the tourism industry. Some of
them are situated at tourist sites (hotels, shops, attractions, guides), while others are
situated at the tourist's point of origin (consular offices for visas, travel agencies, or
tour operators), and some are situated along the way (customs, transport. exchange).
Several of these services have a physical connection, Ltansportalion and Bold hotels
both make use of many tangibles. The comfort of a hotel stay is an experience that is,
influenced by the effectiveness of the equipment, including the noise it creates and the
outside disturbances during quiet times. It also depends on the quality of the
furnishings and fittings within. For some folks, noise and interruptions might be quite
unpleasant.
MAJOR CHARACTERISTICS OF SERVICE PRODUCT
A product is Something that a producer creates and makes available to customers in
OfdeF 6 meet theif needs. Specifically | Service products differ frown Bdods in five key
ways:
1. Intangibility
Services are intangibles, whereas things are tangible irrthe sense that they have
physical attributes, dimensions, and can be seen, touched, or tasted. Consider a school
as an illustration. The building in which it is located, the amenities within, etc., may
be seen or verified, Yet, none of these factors affect the kind and level of education
that institution offers. The product (of education) should be evaluated in terms of how
well the undergraduate's knowledge, intellect, and character have developed.
Although this progress cannot be quantified, it can be felt. So, this important
component that makes up education and the institution's output is intangible.
2. Inseparability
A physical good is created in a factory, purchased in a store, and then consumed at the
customer's convenience on his property. Yet, when one purchases a service, such as a
doctor or courier, both the service's creation and consumption occur simultaneously.
Since the service product is an intangible that the client experiences, it can only be
created, consumed, or used during the experience. The waiter is responsible for
providing the service in a restaurant. The waiter's interactions with the customer are
where courtesy is displayed, not in other situations. The customer's perception of
courtesy is that it occurs at the time of behavior, not before or after. It isCopyright with Kunj Publication only Not for resale Ph. 8006184581 (Call Us)
multaneously created by the server and consumed by the customer. Because of this,
the two cannot be distinguished.
3. Heterogeneity
It is not possible to produce a service in advance in accordance with predetermined
standards because of the incomparability factor. The fact that humans produce and use
services means that the quality of the end product may vary. What one person may
deem "great" may not be so to another.
The behaviour of the group members can affect the level of service in a guided tour or
restaurant. Yet, the blame for the unhappiness is sometimes placed on the service
providers rather than the company members.
4. Perishability
During the Diwali season, there isa hiige demand for fireworks. A cracker producer
produces them well in advance of the holiday season, stores them in various locations,
and sells the entire inventory once the season arrives. The products can stay in stock
till the consumers are available if they are not consumed as they are being made.
During storage, the crackers do not deteriorate. They keep all of their value. Although
perishable over time, vegetables can still’be stored for later consumption using
techniques like canning and refrigeration, But it is impossible to store the supply of
services. An advertisement expires if itis not seen or read. It's been wasted. A movie
theatre’s available seats cannot be added to the following performance if they are not
used during the current show. The supply expires if it snot in US-curreneys In the
same way, if not used when available, all of the seats in an airplane or train, the rooms
in ahotel, the space in a ship, the services of a tour guide, the time of a consultant, etc.
perish, The revenue lost cannot be recovered. It is not possible to carry over unsold
items as stocks to be sold the next day or at another time.
5, Ownership
Ina service, no ownership is transferred from seller to buyer. Just certain benefits of
what the seller offers are granted to the buyer. The right to use a hotel room or a
railroad bed may be granted for a brief time, but the ownership of the space or bed
remains with the hotel or the railroads. A doctor provides similar services. He does not
create or provide any material goods. He leverages incomprehensible knowledge to
prescribe potentially rewarding treatments. Medicines may or may not be used in the
treatment. The doctor retains ownership of his or her information; but, the patient
(client) is entitled to the advantages of that knowledge. Yet, in the case of products,
the buyer becomes the new owner.