The increases in demand were at a l

The increases in demand were at a lower rate than the rises in supply and production. In tourism, this culminated in an oversupply of accommodation in specific locations, and of aircraft seats on important routes as well as too many inefficient companies in the marketplace who could not survived with low level of demand. The increase in competition and the risks associated with the tourism marketplace led to the realization of the benefit of an increased use of marketing. In more graphic terms, the business system can be viewed as an organization that is concerned with survival and proliferation. Following this argument when a business system is threatened it needs to take functional steps to improve the situation. As marketing can be provide for tactical change and modification of the system, in times of risk where there is oversupply and market saturation, marketing assumes a much more important role.
A number of consumers became more affluent in terms of discretionary income and therefore it was possible to develop products that could be sold using the range of non-price-sensitive attributes. This required the development of methods designed to create or change consumer attitudes and behavior. An example of this is American Airlines development of a loyalty scheme-its Advantage scheme of frequent flying rewards – in 1981 in order to build repeat business, which was then copied by many other different tourism-based companies from hotels to restaurants.
The distance between the tourism product provider and the tourist has been continually increasing due to increasing the size of the organization. This led to a need for marketing research related to the gathering of information on market trends, evaluating levels of satisfaction and understanding consumer behavior.
New tourism and hospitality products were being launched which required more emphasis on marketing. For example, the large attractions that have been developed in different countries and the setting-up of low-cost airlines have required high levels of demand to make them viable.
As society developed, the mass market splintered into a number of sub-markets, while at the same time the mass market became increasingly difficult to reach. This was due to the increase in specialist media and the potential for a whole range of alternative leisure pursuits. The changes required improved expertise in the segmentation of market and the provision of different marketing mix strategies which would maximize demand for individual segments.