The size of the tourism market depends on the number of consumers, the number of days they spend in the country, area or resort, and the amount of their daily expenses. As a result, in order to expand the efficient market, it will be necessary to increase the number of tourists, increase the average length of stay and average daily expenses.
The two relevant sides of the tourism market, supply and demand, contribute in parallel to the expansion of the tourism market. A higher capitalization of the tourist potential, the extension of the season, the development of the material and technical base and the diversification of tourist services, on the one hand, attract more tourists and increase tourist consumption until the potential supply is reached, on the other hand, lead directly to the expansion of the real tourist market.
The main elements by which the size of the tourism market is measured are the number of customers, market capacity and market potential, market size and market position of the tourism product. When calculating them, you should always specify the geographical location of the market, as well as the time period under consideration (usually one year).
Quantitative measurement or evaluation of the tourism market can be performed using the following indicators:
a). the capacity of the tourism market, which expresses the number of needs for a particular tourism product that is displayed on the market at any given moment.
Market capacity is expressed by its size in terms of the total number of products or services that can be sold, in physical units. In the case of a tourist market, capacity can be expressed in the number of overnight stays at a hotel, the number of meals at a restaurant, the number of museum visits, the number of vouchers or trips purchased, and others.
The market capacity is calculated as the product between the average consumption capacity (K) and the number of potential consumers (N) using the formula C = K x N without taking into account the income level of consumers or the price of a tourist product.
b). The potential of the tourist market, which expresses the demand of all consumers for a certain tourist product, depending on their income and the price charged for this product.
c). the market volume of a tourism product, which refers to the amount of commercial transactions concluded for a particular product during a certain period of time. If the volume of the tourism market is equal to its potential, we say that the market is saturated.
d). a place on the market of a tourist product, which refers to that part of the volume of the tourist market that is covered by the sale of this tourist product.
As for the number of customers, we can talk about the following components of the market:
a common market represented by the total population of the corresponding geographical region. In this group, however, there are a number of people who, for various reasons, are assumed to never be clients of a travel company (they cannot move, they lead a life at or below the subsistence level). This group of people forms absolute non-consumers. They should be excluded from the calculations when estimating the size of the market.;
The theoretical tourist market, which is obtained after removing non-consumers from the total population. And there is a category of non-consumers in this market, this time called relative non-consumers. These are people who, for one reason or another, do not travel or do it very rarely (they do not like to travel, do not have enough income, are too busy, etc.);
a valid or effective travel market represented by individuals who were actually clients of the travel company during the period under review. The size of this market is obtained by removing relative non-consumers from the theoretical market;
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