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1. Labour Intensive
It is highly labour intensive. As many as possible People are required to work in this kind of industries to provide their services. The service cannot be offered by machines, like a waiter has to be present to serve guests in the tourism industry which a good example of a service industry.
2. Highly Seasonal
Its demand fluctuates or keeps on changing from one time to another. It may be due to the climatic condition dependent.
3. Capacity Constraints
It is capacity constraint or facilities cannot be expanded over a short period of time. It needs maximum consideration of time.
4. Income elastic
Service consumers can only travel to the service providing destination when there is high income and thus unable to do so when the income is reduced. Example, when prices are high like in the tourism industry , people will buy less and buy more when the prices go down.
5. Use of discretionary income
People can only involve themselves into he service production and consumption activities after they have satisfied the basic needs: Food, clothing and shelter.
6. Immobility Nature
The service industry facilities cannot be carried from one place to another like in the tourism industry, wildlife that we can only move to the resources to get satisfaction but those resources cannot travel or move to us to satisfy us.
vindori answered the question on March 20, 2018 at 08:10
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