Business and Life Cycles
Business cycles and life cycles have many similarities when it comes to travel and tourism. A business cycle is based on expand and contract. When the business expands there are more jobs, more money and more demand for the business. During the contract part of the cycle, business slows and there is less demand for the business. This means fewer jobs, and less money.
Life cycles of travel and tourism are similar in that there is growth and decline in the cycle. However, tourism is just that. People travel to destinations for a specific reason. They want to experience what the destination has to offer. A business does not always produce products that consumers will purchase. There are many variables in business. If a company has a failing product then they will enter a contract phase or decline. In tourism, the destination and attractions stay the same for the most part. For example, Disney Land is a major tourist attraction. This is a prime example of a business that is in the maturity stage. Disney Land has grown tremendously over the years to become one of the largest attractions in the world. Although this attraction has reached maturity, decline is a very long way away.
Another difference is how fast a business can go through a cycle compared to a tourist attraction. Again, Disney Land is in its maturity stage and has been there for some time. Take VCR’s for example. Once DVD’s were created, VCR’s have become practically non-existent. Now technology is expanding even further to Blue Ray disc players. Very soon DVD’s will become harder to find. This is a great example of a product that has run its course quickly.