Microeconomics 4. UTILITY. TOURISM DEMAND

 
 

Microeconomics 4. UTILITY.

TOURISM DEMAND

PROFIT is the degree of consumer satisfaction provided by the consumption of a good.

Distinguish between Total Utility and Marginal Utility (or additional utility).

The consumer will tend to maximize their utility in making consumption decisions, for which demand distributed so that each well to provide the same marginal utility weighted by its price. That is a good demand until the marginal utility of the last dollar spent on that either equal to spent on other goods.

Umx/Px=Umy/Py. This is the law of equal marginal utilities weighted

Question : If the weighted marginal utility of good X is greater than that of good Y, that changes will occur in consumer demand?

This law can be expressed in another way : Umx/Umy=Px/Py

The first term tells us how much a consumer is willing to give up a well to get additional units of another. This relationship is called the Marginal Rate of Substitution ( One might call psychological opportunity cost ).

The second term reflects the price ratio, relative prices, and could be called real opportunity cost or market.

In subsequent issues the system will be expressed consumer preference for other more practical ways.

The union of the two pillars that form the demand theory would tell us that the consumer what they want to MAXIMIZE PROFIT ( you can get in the demand for goods and services ) subject to its BUDGET CONSTRAINT.

Example : Be the utility function : You(X,And)= XY Y Balance Straight : 40= 4X 2 Y wondering : That amount would demand of X and Y? They reach utility assessment?

APPLICATION 1.: UTILITY AND TOURISM CONSUMPTION.

The population of developed countries tourism demand because its consumption will produce utility or satisfaction. These tourists tend to choose those who value tourism products and involves them more useful. The utility is the quality that have goods and services to provide tourist consumer satisfaction. Tourists try to maximize their utility for which distribute tourist consumption so that each well will provide marginal utility proportional to its price ( marginal utility being increased tourist obtains utility from consuming additional units of a good or tourist service ) This is called the LAW OF EQUAL WEIGHTED MARGINAL UTILITY.

Normally with increasing consumption of a good tourist the total profit is increasing, but from a certain point the utility derived from consumption of each additional unit decreases. This is another psychological law : THE LAW OF DECREASING MARGINAL UTILITY telling us that additional units of tourist consumption whenever we reported lower satisfaction.

This law may explain the current trend to fragment the holidays 3 the 4 trips a year and generally increase short tourism and weekend. The utility or preference with tourists must confront its real possibilities. That means taking into account the income available to them and the tourist market prices. That budget constraint tells us if they want to choose the tourists is accessible or not.

APPLICATION 2 : THE TOURIST MOTIVATION AND TYPES OF TRAVEL

1.RECREATIONAL MOTIVATION

2.CULTURAL GROUNDS

3.PROFESSIONAL REASONS

IMPORTANT TRAITS IN TOURIST BEHAVIOR :

Audacity

Hedonism

Variability

Dogmatism

Intellectualism

Resulting behaviors allocentrics , mesocéntricos the sicocéntricos

MAIN TOURIST ELECTIONS

1.TYPE OF TOURISM TO BE DOING

2.CHOICE BETWEEN DESTINATIONS

3.TRAVEL FORM

4.CHOICE OF ACCOMMODATION AND ATTRACTIONS

5.PURCHASE METHOD.

PACKAGE. EL ALL INCLUSIVE.

DIRECTAMENTE.ON-LINE. The PER AGENCY

YOU WHOLESALE. THAT AGENCY.

SELECTION CRITERIA BASIC

Comparability

Fidelity

Expectation

Perception

Information

VARIABLES AFFECTING TOURISM

1.AT SOURCE. Income and its distribution. Coin Values. Entitlement to leave. Government controls.

2.IN CONNECTION. Comparative prices of the area of ​​origin and destination. Promotion of the destination. Exchange rates. Time and cost of travel. Distancia cultural.

3.DESTINATION.. Competition in supply. Prices. Quality. Security. Taxes and regulation Desk. Weather. Characteristics of the season

MAIN TOURIST LIMITATIONS

1.MONEY. THE BUDGET CONSTRAINT. INCOME AND PRICES. Elasticities. Destinations lower and upper.

2.AVAILABLE TIME

3.Prices. Comparative prices. Exchange rates

SPECIAL VARIABLES AFFECTING DEMAND

1.FASHION

2.TAXES

3.LEISURE

4.THE SEASON

5.NEGATIVE FEATURES.

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