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138 demand, recreational
Airline demand management is known as yield
management �yield equals unit revenue per seat
kilometre). Airlines define market segments by level
and elasticity of demand. Consumers with relatively
high, inelastic demands �such as business
travel) do not require a discount to induce them to
fly. Segments with a lower level, more highly elastic
demand �such as leisure tourists) require discounts
to induce them to travel.
The classification of business and leisure travellers
into highly inelastic and elastic segments is now
questioned. Corporate travel budgets are shrinking,
video conferencing technology is improving, and
the Internet is spreading rapidly. With fewer
dollars to spend and available substitutes increasing,
corporate travel is more elastic today. Leisure
tourists, with increasing income and education, are
beginning to demonstrate that vacations may be
perceived as a necessity rather than as a luxury;
thus, this demand is becoming less elastic. Those
who forecast air travel demand face an unending
challenge �see forecasting).
Further reading
Goeldner, C.R. �1997) `The 1997 travel outlook',
Journal of Travel Research 35�3): 61±5. �Describes
projected changes in travel industry sectors,
including demand trends.)
Kinnock, N. �1996) `The liberalisation of the
European aviation industry', European Business
Journal 8�4): 8±13. �Examines competition
changes as a major demand determinant.)
Stephensen, F.J. and Bender, A.R. �1996) `Watershed:
the future of U.S. business air travel',
Transportation Journal 35�3): 14±32. �Discusses
changing patterns in business travel demand.)
Wells, A.T. �1994) Air Transportation:A Management
Perspective, 3rd edn, Belmont, CA: Wadsworth.
�Chapter 10 contains a discussion of airline
pricing and demand.)
demand, recreational
KEVIN B. BOBERG, USA
There are two broad categories of recreational
demand. Manifest demand refers to exhibited
recreational behaviour unconstrained by limiting
factors. Data about this can be gained from such
sources as national park visitation statistics, sales
of recreational equipment, questionnaire surveys
�either site-based or residence-based), or structured
observation. Latent demand has to do with the
potential demand that may exist in a given
population or area to visit a particular site or
enjoy a particular recreational activity, but which
remains unsatisfied because of one or more limiting
factors. Latent demand can only be identified
through detailed social science surveys. Constraints
can be of a personal nature �too poor, young or old,
physically handicapped, ethnic-related or
gender-related), or they can be caused by a lack
of suitable facilities or sites �facility-deferred
demand) or by inadequate transport or publicity
�linkage-deferred demand). For example, a person
may wish to visit a certain kind of tourism site or
pursue a specific recreational activity but does not
do so because they are unaware that the opportunity
exists.
Manifest demand reflects supply. If natural or
human-made recreational opportunities are available
and accessible, they will be used. However, it is
also the case that if they become too heavily visited
or there is a deterioration in environmental quality
�see quality, environmental), then demand can
fall or there will be a significant change in the
market segment. Conversely, if opportunities are
not physically available they cannot be used; the
demand will be non-existent or latent. Technological
capability now exists to create virtually any kind
of recreational opportunity anywhere and thus
generate demand. Lakes with artificially produced
surfing waves can be constructed in the desert,
artificial rock climbing walls can be built inside the
buildings, new access routes can be made and so
on. Exhibited demand often varies dramatically on
a seasonal basis in line with school and public
holidays and weather variations. This means that
expensive infrastructure in the form of hotels,
ski tows, caravan parks and the like is often idle for
much of the year, but is stretched to capacity at
other times of the year. In many countries and
regions, deliberate attempts are presently being
made to even out these visitation discrepancies by a
variety of measures like diversifying the tourism
product, extending the length of the tourism