Products and services in leisure, travel and tourism: the difference between products (physical things a customer pays for and takes away) and services (everything else an organisation provides), with examples from across the industry.

What this dot point is asking

You need to be able to tell the difference between the products and the services that leisure, travel and tourism organisations provide, and give examples of each. CCEA defines a product as a physical thing a customer pays for and can take away, and a service as everything else an organisation provides. Examiners reward precise definitions, accurate examples, and the ability to look at one organisation, such as a hotel or leisure centre, and list both its products and its services.

Products and services defined

The industry sells two kinds of thing.

Most of what the leisure, travel and tourism industry sells is service, because the value is in the experience, the journey, the stay or the activity, rather than in a physical object.

Products and services across the industry

It helps to see both in real organisations:

• A leisure centre. Products: drinks and snacks from the cafe, swimming goggles or sportswear to buy. Services: swimming sessions, fitness classes, coaching, locker hire and bookings.
• A hotel. Products: meals, drinks, toiletries and souvenirs. Services: the room and stay, reception, housekeeping, room service and a concierge.
• A visitor attraction. Products: souvenirs, food and drink, guidebooks. Services: entry to the attraction, guided tours, talks and events.
• A travel agent. Products: brochures and travel accessories. Services: advice, bookings, payment handling and after-sales support.

Why services dominate

The industry is mostly service-based, which has important consequences:

• Services cannot be stored: an empty seat on a flight or an unsold hotel room tonight is income lost forever.
• Services depend heavily on people and customer care, because the staff are part of the experience.
• Quality is harder to guarantee than for a physical product, so good customer service matters enormously (the topic that follows).

Worked example: sorting products from services

A common exam task gives a list and asks you to classify each item.

Why this matters

Telling products from services is a basic skill that runs through Unit 1. It helps you describe what any organisation actually sells, and it sets up the next topic, customer service, because a service-based industry lives or dies on how well it looks after people. It also connects to components (each component offers its own mix of products and services) and to organisations (private, public and voluntary providers sell different mixes). In the exam, be ready to define both terms and to list the products and services of a named organisation.

Try this

Q1. Define the term product in leisure, travel and tourism. [2 marks]

• Cue. A physical item a customer pays for and can take away, such as a meal, drink or souvenir.

Q2. Give two services a travel agent provides. [2 marks]

• Cue. Any two: advice, making bookings, handling payment, after-sales support.

Q3. Explain why the industry is described as mostly service-based. [2 marks]

• Cue. Most of what it sells is an experience (a journey, stay or activity) rather than a physical object, and services cannot be stored.