Briefly describe what is the elasticity of tourism supply

Tourism supply elasticity is the price elasticity of tourism supply, which is the range of changes in tourism supply with respect to tourism product prices. Since tourism supply and tourism product prices change in the same direction, the price elasticity coefficient of tourism supply is generally positive. According to the value of the price elasticity coefficient of tourism supply. When the tourism supply elasticity is greater than 1, it means that the change rate of tourism product supply is greater than the change rate of tourism product price. When tourism supply is elastic, it means that small changes in the price of tourism products will cause large changes in the supply of tourism products.

Extended information:

Different price strategies:

1. When the elasticity coefficient of tourism supply is 1, it means that the change rate of tourism product supply is the same as that of tourism. The product price change ratios are equal, that is, tourism supply has unit elasticity. The supply price elasticity coefficient at point B in the figure is unit elasticity. When tourism supply has unit elasticity, it means that changes in tourism product prices will cause tourism product supply to change at the same rate. In this way, whether the price increase or price reduction strategy is adopted, it will directly affect the corresponding increase or decrease in tourism supply.

2. When the elasticity coefficient of tourism supply is 0, it is said that tourism supply completely lacks price elasticity, so the tourism supply in the figure remains basically unchanged. This situation is mainly manifested in some monopolistic tourism products. Therefore, price increase strategies can be adopted flexibly according to changes in tourism demand in the tourism market, but price reduction strategies cannot be adopted.