Tourism Market, Functions and Classification of Tourism Market

Tourism is a comprehensive business and has the following characteristics:

- Tourism is an industry that depends on tourism resources. Any tourist, with any motive and form of tourism, has a common requirement to be able to visit, have fun, learn and enjoy the natural, historical, cultural, social values of a country. These are sunny beaches, waterfalls, amazing mountains and caves, rare species of flora and fauna, citadels and castles, temples and pagodas with many ancient architectures and festivals; large economic and cultural centers; national forests, relic sites... Tourism resources are created by nature but also by the historical development process through many generations of humans. This is the objective basis for forming tourist routes and destinations.

- Tourism is a comprehensive business serving the diverse consumption needs of tourists. Tourists, regardless of their group or personal or collective financial resources, often spend more during their travel than the average consumption of the majority of the population. Not to mention a large part of international tourists are upper class: wealthy merchants, businessmen, intellectuals, politicians, etc. Therefore, the tourism industry must be a comprehensive business serving the needs of rest, travel, food, sightseeing, entertainment, shopping and other services of tourists in a way that is convenient, safe, luxurious, polite and capable of meeting high-level service needs.

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- Tourism is an industry that, in addition to business and services, must also ensure security, political needs and social order and safety for tourists, for localities and countries receiving tourists.

- The tourism industry is an economic - social - service industry whose mission is to serve the needs of sightseeing, entertainment, and relaxation, with or without combining with medical activities, sports, scientific research and other types of needs. Thus, this is a special industry with many characteristics and properties mixed together to form a whole.

very complex. Tourism activities have the characteristics of both an economic sector and a socio-cultural sector.

1.1.2. Tourism Market, Functions and Classification of Tourism Market

1.1.2.1. General concept of tourism market

For tourism, tourism market research is a very important issue. Some authors believe that: "The market is a group of consumers who have unmet needs and purchasing power and want to be satisfied" or "The market is the total demand (or set of needs for a certain type of goods) where buying and selling of goods with money takes place" [50]. This is a buyer-oriented concept, taking consumer needs as the main basis for defining the market. Some other authors, when emphasizing the role of the market in the operations of enterprises, have affirmed: "The market is a business environment for any enterprise in the market economy" and "is a concise expression for the process in which all decisions of families on the consumption of goods and services, of enterprises on what and how to produce, and of workers on how much to work and for which enterprises are adjusted by price fluctuations" [55]. In general, the above authors stand on different perspectives to define the market. Market definition. In the most general sense, an author defines: "The market is a place to buy and sell goods, a meeting place to conduct buying and selling activities between buyers and sellers". But when the exchange of goods develops, the market is not only a special place for sellers and buyers to meet and exchange face to face, but there are also other forms of markets, for example: the function of the market is carried out through the phone, media, newspapers... Therefore, the above definition seems to no longer be comprehensive enough.

We agree with the general concept of product market of modern economics, according to which: "The market is a process in which sellers and buyers interact to determine the price and quantity of goods to be exchanged". Thus, the market contains total supply, total demand and the structure of total supply and demand.

about a certain type of goods in a specific space and time.

According to the characteristics of different products bought and sold in the market, people divide the market into goods market and service market. Tourism market is a type of service market.

Like the market in general, there are currently many different understandings and definitions of the tourism market, depending on different perspectives.

From the perspective of the "buyer", people define "The tourism market is the set (total) of needs for a certain type (need for beach tourism, need for mountain tourism, need for medical tourism...)".

From the perspective of "sellers" or tourism businesses, the author defines: "The tourism market is a group of customers who have a desire and purchasing power for tourism products but have not been met".

The above definitions generally focus on the buyer because he is the decisive voice in the market. However, from the perspective of economic research, when studying the tourism market, it is not enough to only focus on consumers (demand), but at the same time, it is necessary to study the factors of supply capacity (supply) and put it in the conditions of the operation of market laws, especially the law of competition, so there must be a more general definition of the tourism market.

In the most common and simple understanding: "The tourism market is where the buying and selling of tourism products takes place" [55].

In our opinion, the tourism market is also part of the general commodity market and has some unique characteristics. From the market concept of modern economics presented above, we define: "The tourism market is a process in which tourists and tourism businesses interact with each other to determine the price and volume of tourism goods and services that need to be exchanged".

1.1.2.2. Functions of the tourism market

- One is the function of performing and recognizing goods.

In the tourism market, goods express their value through prices. The price of tourism products reflects the production costs required to produce the product. When the product is realized through buying and selling, the market price of the product expresses its attractiveness as an indicator for businesses about business.

- Second is the economic information function.

The tourism market will show tourists and businesses tourism products in terms of price, variety, quality, satisfaction and their reception of the product. In an economy where information is based on honesty, market information will make tourists decide on their trips.

- The third is the regulatory and forecasting function.

The tourism market is an economic system in which factors such as price, profit, interest rate, exchange rate, etc. affect the producer, making the production process of tourism products more suitable, reasonable prices make customers accept. Competition makes production costs and profit margins in tourism markets different. Therefore, the movement of capital to invest in other jobs will appear. The tourism market appears new tourism products, more attractive to tourists, making the tourism market richer and more diverse. The law of competition in tourism as well as other markets makes businesses always have to innovate, adapt to new markets. Therefore, the tourism market with its forecasting function will reduce losses and risks for producers and consumers. In a market economy, the tourism market can balance supply and demand, however, the role of the state with a visible hand in planning macroeconomic policies and development strategies, in promoting economic tools, is always a decisive factor in the effectiveness of tourism business.

1.1.2.3. Classify the tourism market according to some common criteria

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The tourism market is never homogeneous but consists of many types, each

have different characteristics. To have a basis for understanding the role and characteristics of each

Market classification is very necessary and important to help research, analyze the tourism market and build the right and appropriate marketing strategy and business activities.

- Classification by geographical - economic - political criteria

From a national perspective based on geographical and political space, the tourism market is divided into international tourism market and domestic tourism market.

+ International tourism market

It is a market where supply belongs to one country and demand belongs to another country. In this market, tourism businesses of one country combine with businesses of another country to meet the tourism needs of foreign citizens, thereby forming and implementing money-goods relations that transcend national borders.

For example, Vietnam currently has 103 international travel companies that combine with other foreign travel companies to provide services according to their needs.

+ Domestic tourism market

It is a market in which supply and demand are within the territory of a country. In the domestic market, the relationship arising from the implementation of tourism goods and services is an economic relationship within a country. It depends on the economic development of that country and the money-commodity relationship only moves from one area to another.

- Classification according to market situation

Based on the actual situation and untapped potential, we have the actual tourism market and the potential tourism market.

+ Real tourism market

It is a market where tourism goods and services can be realized and in this market all the needs of tourists can be fully met.

+ Potential tourism market

It is a market where there are still some conditions lacking to be able to implement some types of tourism goods and services. For example, there is a lack of types, types, and quality of tourism products that do not meet the needs of customers or prices that exceed the ability of consumers to pay.

- Classification by tourism services

Based on tourism services, we can divide the types of tourism markets associated with the organization to create and consume those services. And according to this division, there will be as many tourism markets as there are types of tourism services.

+ Accommodation market: hotels, resorts…

+ Transportation market: Airplane, train, bus…

+ Entertainment market…

If it can be further divided, people classify it according to the characteristics of the travel business.

Classification by travel business: Inbound market (foreign inbound), Outbound market (outbound outbound).

In short, markets can be classified in many different ways by combining the above criteria and market classification is not limited to any standard depending on the researcher's perception or point of view.

1.1.3. Concept of tourists, types of tourism

1.1.3.1. Tourists

Visitor: The United Nations Conference on International Travel and Tourism held in Rome, Italy, in 1963, proposed a general term for visitor: "Any person who visits a country other than the country in which he or she is residing for any reason other than to engage in remunerated activity in the country visited".

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Visitors are divided into two types: tourists and sightseers.

- Tourist: is a visitor staying in a country.

another country (or a regular place) for more than 24 hours and staying overnight for the purpose of the trip which can be classified under one of the following names: leisure, recreation, holiday, sport, health, study, religion, family, mission, meeting…

- Ecursionist: also known as day visitor. Is a visitor who stays in an area for less than 24 hours. People who travel to another country or another place by cruise ship are also called visitors. Crew members or aircrew who do not stay in that area are also called visitors (except when they stay at a hotel).

International tourists: According to Article 34, Chapter V of the 2005 Vietnam Tourism Law, those who are counted as international tourists must have the following basic characteristics:

- Foreigners, Vietnamese people residing abroad coming to Vietnam for tourism (Inbound tourists)

- Vietnamese citizens and foreigners residing in Vietnam traveling abroad (Outbound visitors).

- The purpose of their trip is sightseeing, visiting relatives, attending conferences, going on business trips, market research, sports, medical treatment, pilgrimage, relaxation...

International Excursionist: A person who meets the above criteria but does not stay overnight is called an international visitor.

Domestic tourist: Any person residing in a country, regardless of nationality, who travels to a place other than his usual place of residence within the country for a period of 24 hours or one night and for any reason other than the exercise of an activity remunerated from within the place visited.

Domestic Excursionist: A person who meets the standards of a domestic tourist but does not stay overnight is called a domestic visitor.

1.1.3.2. Type of tourism

a. Based on geographical characteristics:

Tourist destinations can be located in different geographical areas. Classification according to geographical characteristics of tourist destinations allows us to orient the planning, construction, organization and implementation to serve the needs of tourists. According to this criterion, there can be the following types of tourism:

- Coastal tourism

The main purpose of tourists is to return to nature, participate in sea tourism activities, sports and games on the sea (diving, surfing, jet skiing, parachuting, beach volleyball...). Favorable conditions for coastal tourism are in the summer, with temperatures above 20 degrees Celsius. In addition, conditions of sea water quality, beaches and seabed slopes are also essential factors for marine tourism.

- Mountain tourism

This type of tourism meets the tourist needs of visiting scenic spots in the mountains, sports activities and the tourists' relaxation needs.

- Urban tourism

Cities and administrative centers are also attractive because of their