07 Future in Tourism

Chapter 7
Future in Tourism
7.1 Introduction
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It is quite obvious that tomorrow’s tourists and tour operators will tend to rely more on
technology. With the introduction of the next generation apps and online services, tourism is
going to get further accessible and enjoyable.
According to Ari Steinbuerg, the founder of a travel startup Vamo, the tourists will tend to spend
less time planning in advance. Efficient booking services and apps will enable the tourists to
create versatile itineraries with reasonable price. Future tourists would not prefer to be confined
to packaged tours. With the availability of large number of options, the tourists would prefer to
realize every possible wish regarding tourism.
A driverless future in travel and tourism.

With more flight connectivity, travelling modes and accommodations introducing more comfort,
technology helping mankind progressively, the tourism will continue to bring momentum in its
sector.
Review Question
1. What is future tourist?
7.2 Future of Travel and Tourism in Bangladesh

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Bangladesh is a huge tropical country and is well known for its diverse climatic features.
Bangladesh has become one of the world’s promising tourist destination with large number of
visitors each year. It has a dramatic growth of tourism over the last 25 years and it is one of the
most remarkable economic changes. Tourism activity has long lasting socio-economic impacts
376 Fundamentals of Tourism and Hospitality Management
on the host economy and community. Bangladesh is the most attractive tourist destination in the
Asia-Pacific by the report of world economic forum.
The future of Bangladesh Tourism industry is increasing year by year. Bangladesh offers many
tourism packages to the visitors. Bangladesh is the only country that offers different categories of
tourism. The Bangladesh government took efforts to encourage different kinds of tourism in
Bangladesh. Bangladesh shows an exponential growth in tourism industry because of the support
given by the government.
Review Question
1. Write notes on ‘Future of Travel and Tourism in Bangladesh’.
7.3 Trends in Future of Tourism

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Here are six trends making their mark on the future of tourism:
1. Going green: eco-friendly holidays: From
its roots in the 1980s, ecotourism has
become a movement that is catching on. It
involves visiting fragile, pristine natural
areas in a way that is small scale with less
impact than mass tourism. Travellers not
only seek to avoid damaging the natural
environment, but also aim to make sure that
their spending benefits the local people. But
ecotourism does not equate to austerity. You
can find luxury ecotourist resorts across the
globe, many surrounded by the most outstanding areas of natural beauty.
Conservationists, on the other hand, use ecotourism as a valuable tool to protect pristine
habitats and wildlife. Untouched wildlife populations and unspoiled habitats attract tourists
who spend money locally. Seen this way, they can be a valuable assets to local communities.
2. Expanding your skill set: learning
something new: Where are the best places in
the world to learn a new skill or brush up an
old one? The days of functional but austere
classrooms are over. You can combine
learning with pleasure at a fast-expanding
range of courses in lovely places.
Celebrity chefs have made us all aspiring
cooks and cookery schools can be found
everywhere. Specialist courses teach you
Future in Tourism 377
about everything from cordon bleu to seafood, based everywhere from Sicilian villas to
Scottish castles, with teachers ranging from Michelin-starred chefs to polished amateur
enthusiasts.
Language schools are another favourite. But they are not as they were. For instance, you can
combine Mandarin with tai chi in China. Or mix Hindi and yoga in Jaipur. For the cooler
customers there is Spanish and DJing in Ibiza.
3. Non-flight travel: low-carbon holidays: In Sweden they say flygskam; the Dutch say
vliegschaamte; the Germans Flugscham. The words all mean “fly shame”, summarising the
guilt that many travellers feel when they
take a flight in full knowledge of its carbon
footprint. But staying on the ground while
travelling does not mean you can’t travel.
Instead, you may travel to neighbouring
countries by rail or choose a staycation
within your own country. The staycation
took off in the US during the financial crisis
of 2007-2009. Feeling the pinch, Americans
cut back on foreign travel, saving their last
discretionary dollar.
At a time when you may be modifying the way you live to mitigate climate change, as there
are many holidays that do not involve a plane. Growing numbers of Britons, for example, are
taking the train for their annual summer odysseys to the south of Europe rather than a cheap
flight. And others are electing to holiday even nearer to home.
4. Making an impact: volunteering during your holidays: For many, the gap between
holidays and volunteering is shrinking. At the same time, the scope of volunteer holidays is
widening. There is a wide range of ways you
can make a positive difference – from
football coaching Brazil’s favelas, to helping
protect coral reefs in Belize, rehabilitating
orphaned monkeys in South Africa or
volunteering with bears in Romania.
Whether you are interested in teaching,
environmental conservation or animal care,
there are an increasing number of specialist
companies set up to help you make a
difference.
5. Intrepid journeys: adventures to remember: Want to do something more exciting? To mix
things up in Africa? Travel the Karakorum Highway in northern Pakistan? Camp on the
Tibetan plateau? Or track pumas in Patagonia?
If so, then these intrepid adventures are for you. There are organised events like the Mongol
Rally, an intercontinental car rally that starts in the United Kingdom and ends in Russia. Then
there are marathons like the 165 km Oman
Desert Marathon. For the less active, a host
of specialist travel companies have sprung up
offering to take you to the least explored
corners of the world.
Finally, as familiarity with foreign travel
grows, and digital technology improves
access to maps and local knowledge,
adventurers are choosing to organise these
journeys themselves.
6. Family gap years: nomadic sabbaticals: With lives getting busier every year, it’s becoming
more common for families to take a year out to embark on year-long adventures. Taking the
kids out of school, they travel the world
together, experiencing the unknown,
passing through new cities and countries.
The family gap year is taking off. Children
experience an “eventure” where education
comes from the wider perspective of travel
and adventure. Instagram is awash with
pictures of families snorkelling the reefs of
Belize, hopping the Greek islands, or
working on community projects in Nepal.
As companies become more flexible about
work, more people freelance and more people run their own businesses, there is increasing
freedom.
Review Question
1. Explain six trends making their mark on the future of tourism.
7.4 Tourism and Technology

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Technology has played an important role in achieving economic growth by garnering economic
means for consumers to travel. The development and contribution of air travel as a means of
transporting tourists to different locations is an important contribution of technology to the
tourism and travel industry. The significant development of low cost carriers is another means of
successful technological applications to the tourism and travel industry.
The tourism industry is often defined as the sectored system of innovation and production. This
sectored system in tourism is extremely complex; given the fact that the tourism products and
actors changes due to changes in the external forces. The evolvement and progress of information
technology has therefore had a tremendous impact in tourism.
The travel and tourism industry suffered a setback post 9/11 terrorist attack. Airlines were forced
to change their marketing strategies and give more emphasis to ecommerce. Most airlines started
including special applications like content
management, personalization software and
business intelligence paraphernalia, internet
technology gained importance as it became the
major force to work safely and effectively. This
technology also helped airlines to reduce costs
and get closer to the customers. Let us find out
some of the major features which gained
momentum due to the information technology
revolution.
The travel and tourism industry suffered a setback post 9/11 terrorist attack. Airlines were forced
to change their marketing strategies and give more emphasis to ecommerce. Most airlines started
including special applications like content management, personalization software and business
intelligence paraphernalia, internet technology gained importance as it became the major force to
work safely and effectively. This technology also helped airlines to reduce costs and get closer to
the customers. Let us find out some of the major features Which gained momentum due to the
information technology revolution.
Review Question
1. Explain the relation between tourism and technology.
7.5 Technology and Future Global Tourism

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The development in the field of IT and ICT has deeply influenced the ways in which tourism
businesses perform their activities. Service standards have rose quite high and customers expect
to be served 27/7 around the year and service is not confined to only office hours. Leading to the
birth of online portals, the travel business was revolutionized forever as these portals have be
successful in effectively organizing and distributing distressed tourism inventories to the clients.
Various hotel chains, amusement parks, luxury trains and most certainly the leading airlines have
all be using IT in order to reach out to customers and allowing them to directly access their
reservation system.
Such application of IT or ICT has only helped these companies in getting better understanding
about the needs of their customers and also helped them in offering them the freedom of choice.
ICT Is critical for strategic management of organizations as they allow –
 Expansion into new market

 Empowerment of employees
 Lowering of costs
 Enhancing distribution
Following are some of the many uses of IT/ICT in the field of Travel and Tourism –
1. E-Tourism: E Tourism or Travel Technology is the digitisation of all the processes and value
chains in the tourism, travel, hospitality and catering industries that enable organisations to
maximise their efficiency and effectiveness. The scope of e-tourism includes not just
computer reservation system, but also incorporating the broader tourism sector as well as its
subset the hospitality industry. Travel technology, includes all business functions such as –
 E-commerce and E-marketing
 E-finance and E-accounting
 E-HRM
 E-Procurement
 E-Strategy
 E-Planning
 E-Management
Application of E- Tourism:
a) Flight Tracking System: Travel technology is used to monitor as well as manage travel,
and also includes flight tracking system. Global aviation software such as Plane Finder,
RadarBox24, Flight Stats.com, etc., are useful in tracing the activities of flights from
across the world.
b) Dynamic Packaging: The freedom offered to customers in order to create their own
travel package by choosing the transportation services, flight tickets, accommodation
types, activities to get involved in, rental services, etc. instead of choosing a package
predefined by the agent is called dynamic packaging. This type of packaging witnesses
the real time sourcing of flights, trains, hotels, cars, etc. as per the requirement of the
customer.
c) Computer Reservation System: CRS is famous for the ability to store the information
and retrieve it when required. It is also used for conducting transactions related to hotel
books, air tickets, car rental, etc. Some of the most widely used CRS around the world
are Amadeus, Abacus (currently owned by Sabre), KIU, Mercator, Navitaire, Sabre,
Travel Technology Interactive, Travel Sky, Travelport, etc. Global Distribution System
is a CRS which sells tickets for major airlines across the globe.
d) Global Distribution System: GDS forms a is a linkage between the service providers in
the travel industry, such as airlines, hotels, car rental companies and enabling automated
transaction between travel service providers and the travel agencies. It is mainly through
GDS, that the travel agency is able to alter to its needs for various tourism related services,
to the end users, which is the customer. It concentrates across three main domains of the
industry, viz., accommodation (hotel reservations), ticket reservation in airlines and car
rentals. It not only links the bookings, but also the rates in which each of the services are
available. Famous GDS are Amadeus, Galileo, Sabre, Worldspan, etc.
e) Extensible Markup Language: Extensible Markup Language based technologies are of
great importance in the travel and tourism industry. As the support the reservation of
tickets for airlines, or in implementing merchandising functions and optional services in
the booking process. Another important application of XML is the establishing of direct
connections between Airlines and Travel Agencies. In order to create a generally
accepted XML-standard, the Open Axis Group was founded.
f) Customer Relationship Management: CRM is famous for the convenience it brings in
when it comes to managing an organization’s interaction, not just with current customers,
but also future customers. CRM helps in analyzing customer data and pulls out the history
when need be which helps the company in understanding the needs of the customer and
what to cater to. This plays a role in the retention of the customer by maintaining ideal
business relationships with customers and ultimately driving sales growth.
g) Audio Tours: Another interesting development in the world of Information technology’s
integration into tourism is the Audio Tours. An audio tour is a pre-recorded message or
commentary which includes the details of the places the tourist visits. Usually fed into a
handheld device with headsets, the commentary provides the background information
and other context related to the place of visit. Usually used in historical sites and
museums, Audio Tours are also available of outdoor tours at selected locations.
h) GPS Tours: A GPS Tour, similar to an audio tour includes pre-recorded audio
commentary through a handheld device, for mobile applications such as trains, walking
tours, buses, boats, trolley, etc. GPS tours uses the visitor’s location via satellite
technology and provides the relevant information to them. These tours are available in
multiple language simultaneously which can be downloaded in the cell phones and makes
it possible to mine the common interest location of the visitors using the data from
multiple users.
i) Biometric Passport: Also known as E-Passport, contains the biometric information that
can be used for identification of the traveller. It combines paper passport along with
electronic biometric information of the owner. Biometrics is all about the analysis of
physical characteristics that are unique to a person. It can include fingerprints, retinal
scans and signatures. It uses contactless smart card technology, including a
microprocessor chip and antenna which is installed in the front or back cover, or center
page, of the passport. Document and chip characteristics are documented in the
International Civil Aviation Organization's (ICAO) Doc 9303.India has recently initiated
first phase deployment of Biometric EPassport for Diplomatic passport holders in India
and abroad.
j) Virtual Tour: A virtual tour is an online media presentation that represents a real location
in the most realistic form possible. It comprises of videos as well as sill images and may
include sound effects, text, narration and music. Virtual Tours are famous in the tourism
industry. Especially hotel chains provide a 360 degree view of not just the room buy also
the amenities and property in general as well.
2. Mobile Technology: Cutting edge developments such as Global Positioning System service,
Geo Tagging, search based on location, and online mapping facility, which has become
possible through mobile service, has so much more to offer to the traveler at their respective
travel destinations. Personal assistant in travel is yet another advancement which is
revolutionizing the industry of travel and tourism. These applications assist the traveller in
having a smooth and safe travel. They also contribute largely on the distribution of resourceful
information including great offers and important deals.
3. Social Networks: The development of social networking sites related to travel and tourism
allow travellers to build a network of other travellers and share their travel stories and
experiences. The reviews and feedback left by other travellers gives a realistic picture of the
destination or service provider. Sites such as Trip Advisor, Matador, Tripsay, Couchsurfing,
GeckoGo, Travbuddy, etc are all example of such sites.
4. Space Tourism: One of the latest advancements in the field of travel and tourism is the
concept of taking regular people to space. For the purpose of leisure, recreation or business.
As an alternative tourism, Space Tourism is promoted by organisations such as Commercial
Spaceflight Federation, Russian Space Agency, etc. Remarkable research is still going on in
this domain. A name worth mentioning is Elon Musk from SpaceX who aims at flying two
space tourist around the moon in 2018.
 Conclution: ICT plays a critical role in acquiring information, processing of that information,
as well as storing the information for further use. In such cases, information could be in the
form of texts, numeric, pictorial or even vocal. Information technology has deep impact on
the development of the economy and society. One of its major contribution lies with the
increase in the supply of information to be shared with a larger audience. Secondly, IT helps
in reducing the cost inculcated in the dissemination of knowledge. It has also reduced the
inefficiencies pertaining to the spread of information. Thirdly IT has greatly helped in the
reduction of barriers caused by distance and time.
Review Question
1. Explain the uses of IT/ICT in the field of Travel and Tourism.
7.6 Trends in Tourism

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Below you find thirteen of the most significant tourism trends right now and in the future.
1. Solo Travel: Leisure travel used to be a family affair or something that couples undertook
together. While that’s still the case for many, more and more
people are choosing to strike out on their own. Enjoying a solo
trip is no longer so unusual and tourist trends increasingly
reflect this. The needs of solo travellers are diverse. Some
simply want to travel without the distraction of a companion.
Others are young singles looking for social activities or to find
a partner. Some widowed seniors even use long-term hotel
stays or cruises as a luxurious alternative to conventional elder
care. These tourism trends are set to grow and grow.
2. Eco Travel: Tourism trends are heavily influenced by the
concerns and mores of the customer base. As a new generation
becomes increasingly relevant in the marketplace, the ideals
driving their purchasing decisions create new tourism trends.
Eco travel is just one example of these tourism trends,
reflecting a growing concern among today’s travellers for
ethical and sustainable tourism options. Eco travel includes
simple changes, such as the availability of carbon credits when booking a flight or the option
to rent an electric instead of a conventional vehicle. More sophisticated examples might
include tourism with a volunteer element, perhaps working on a nature reserve or engaging
in conservation work.
3. Local experience: Today’s tourists don’t want to be insulated from the places they visit
inside a cultural bubble. They want to engage with and
participate in the local culture. From enjoying local cuisine to
celebrating regional festivals and holidays, local experiences
are set to become some of the top tourist trends to watch. One
example of a popular local experience would be visiting Japan
during a major festival, renting formal Japanese clothes to
wear, consuming regional delicacies and engaging in
traditional games or cultural activities. Another might be a long stay with a host family in the
destination country as a means to learn more about the local culture.
4. Personalisation: You’re probably familiar with those ads that pop up on social media and
certain other websites, ads related to things
you’ve looked at or purchased online. This is just
one example of personalisation. As well as in
marketing tourism more effectively,
personalisation can apply to every aspect of the
tourist experience. Today’s consumers expect
experiences that closely match their personal
preferences, from destinations to accomodation
and the kinds of activities they’ll engage in. The
more closely an experience can be tailored to a client’s desires and expectations, the more
likely they are to return and to use the same service again.
You can read more detailed information and examples about personalisation marketing in
tourism in the article “5 Ways Personalisation Marketing is Used in the Tourism Industry”.
5. Bleisure Travel: The concept of combining leisure and tourism with travel for business is
hardly new: “bizcations” have been popular for
many decades. As the tourism sector attempts to
woo a more frugal customer base, however, the
concept of bleisure travel has become increasingly
relevant among tourism trends. Bleisure travel
tourism can take many forms. Sometimes a client
who is travelling for work decides to engage in
tourism on their downtime; in other cases, a
company may arrange for tourist activities on
work trips as a perk. Another increasingly popular set of tourism trends relate to the “digital
nomad” phenomenon where online workers engage in travel.
6. Robots, chatbots and automation: One of the more eye-catching examples of these
particular tourism trends is Connie, the Hilton
Hotel chain’s robot concierge. Other hotels have
also got in on the robot-staff trend, installing
interactive robots to handle certain reception
duties or even having them serve food and drink to
visitors. This kind of novelty application,
however, is far from the only one. Many customers
now book their travel and accommodation with the
help of internet chatbots, specifically tailored AI
who can handle queries and assist customers with useful information when human operators
are unavailable.
Find more detailed information about how to use robots in the tourism industry in the article
“Robots in the Tourism Industry: 8 Real-World Examples”.
7. Artificial intelligence: As well as the aforementioned chatbots, artificial intelligence is
becoming increasingly important to the tourism
industry. Machine learning technology is now
firmly entrenched in the marketing of the tourism
sector, with AI helping to personalise the
experience of finding and booking tours and trips.
AI is also increasingly valuable in contexts such as
smart hotel rooms, identifying the likely needs of
guests and fine-tuning the environment and
services to fit the guest’s needs and preferences. Artificial intelligence is finding applications
everywhere, from customer service to security. Future AI tourism trends to watch out for
might include self-driving vehicles and virtual guides for tourism.
Find more detailed information and examples about artificial intelligence use cases in the
tourism industry in the article “How Artificial Intelligence is Changing the Travel Industry”.
8. Recognition technology: Recognition technology is one of those increasingly important
travel and tourism trends that’s starting to creep
into a multitude of different areas. One of the most
familiar applications of recognition technology
for a frequent traveller is the bank of automatic
gates at some borders. The gates are capable of
reading the data on the traveller’s passport or ID
card and matching it to their face using a camera
and facial recognition technology. Recognition
technology is one of the big tourism trends in the
hospitality industry too, with voice recognition becoming more and more popular as a method
of control in smart hotel rooms.
Find more detailed information about Recognition technology in the tourism industry in the
articles “How Can Voice Control Benefit the Tourism Industry?” and “4 Ways Facial
Recognition Can Be Used in the Travel Industry”.
9. Internet of things (IoT): The IoT is relevant to many tourism trends. IoT devices are gadgets
equipped with a microprocessor and some form
of digital connectivity, allowing them to connect
to, and be controlled from, the internet. IoT
devices include heating and cooling systems,
entertainment systems and other items often
found in a hotel room, giving rise to “smart”
hotel rooms. The IoT is also used to integrate
services in a hospitality setting, for example by
allowing guests to book activities (a session in the hotel’s spa, swimming in the pool, training
in the gym etc) or request such things as room service or extra linen via a hub or a smartphone
application.
Find more detailed information about the ‘Internet of Things’ in the tourism industry in the
article “How the Internet of Things (IoT) can Benefit the Tourism Industry”.
10. Virtual reality: Virtual reality (VR)
technology offers many opportunities for
tourism management. Tourism trends
involving VR include high-end entertainment
applications, some of them combining
physical elements like controllers or movable
seating and platforms. Sports simulators are
increasingly popular, ranging from virtual
baseball and other familiar sports to extreme
sports such as skiing or snowboarding. Many extreme activities can also be simulated using
VR, such as hang-gliding and other adventures. VR can also allow tourists to “visit”
destination that are too fragile for physical tours, such as archeological sites: structures can
be recreated in VR and tourists can enjoy the experience of walking around them unimpeded.
Find more detailed information and examples about how virtual reality can benefit your
business in the article “How Virtual Reality is Transforming the Travel Industry”.
11. Augmented reality (AR): Where VR simulates entire environments and experiences,
augmented reality combines real-world
experiences and virtual elements. A familiar
example would be the smartphone game
Pokémon Go, where imaginary creatures are
superimposed on real-time footage of the
player’s environment. In the tourist
industry, this is obviously very useful:
instead of fantasy monsters. AR smartphone
apps can show tourists information about
the area they’re exploring. This could be historical details about buildings and landmarks, or
listings and menus for entertainment venues and local eateries. Museums make increasing
use of AR, allowing visitors to view artefacts with their original appearance as a virtual
overlay. Other augmented reality applications might include internet-enabled virtual maps.
Find more detailed information and examples about how augmented reality can benefit your
business in the article “How Augmented Reality is Revolutionising the Travel Industry”.
12. Healthy and organic food: Healthy food and the kind of fare consumed by tourists used to
be antonyms in the minds of many travellers,
with holidays traditionally representing a
chance to break one’s diet and indulge in
forbidden treats. Today’s travellers know that
delicious and nutritious are not exclusive
concepts. Demand for excellent cuisine with a
view to better nutrition is driving new tourism
trends. The modern tourist wants to know that
the food they’re eating is as healthy as it is
delicious. The organic food movement is also affecting tourism trends, with more eateries
and hotels offering organic options. Other special diets are also represented.
13. Customer Experience: Of course, the customer experience has always been central to the
tourist industry. With new technologies and an
ever-broadening array of options for tourists,
enhancing the customer experience has never
been more vital. In the final analysis, customer
experience is what will make or break your
business. Fine-tuning the experience can make
the difference between creating a loyal repeat
customer who boosts your business via word of
mouth, and one who drops out at the booking stage. Everything from the web interface where
your clients book their trips to the very last day of their journey needs to be as enjoyable as
possible.
Review Question
1. Explain the most significant tourism trends right now and in the future.
7.7 Sustainable Tourism

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Sustainable tourism is the forms of tourism which meet the needs of tourists, the tourism
industry, and host communities today without compromising the ability of future
generations to meet their own needs. According to The World Tourism Organization (WTO),
sustainable tourism should:
 Make optimal use of environmental resources that constitute a key element in tourism
development, maintaining essential ecological processes and helping to conserve
natural heritage and biodiversity.
 Respect the socio-cultural authenticity of host communities, conserve their built and
living cultural heritage and traditional values, and contribute to inter-cultural
understanding and tolerance.
 Ensure viable, long-term economic operations, providing socio-economic benefits to
all stakeholders that are fairly distributed including stable employment and income-
earning opportunities and social services to host communities, and contributing to
poverty alleviation.
The relationship between sustainable tourism and other terms.

1. The World Tourism Organization defines sustainable tourism in the following manner:
“Sustainable tourism development meets the needs of present tourists and host regions while
protecting and enhancing opportunities for the future. It is envisaged as leading to
management of all resources in such a way that economic, social and aesthetic needs can be
fulfilled while maintaining cultural integrity, essential ecological processes, biological
diversity, and life support systems.”
While tourism is welcomed almost universally for the benefits and opportunities it creates,
there is a growing recognition of the need to see tourism in its environmental context, to
acknowledge that tourism and the environment are interdependent, and to work to reinforce
the positive relationship between tourism, the environment and poverty reduction.
Sustainable tourism means tourism which is economically viable but does not destroy
the resources on which the future of tourism will depend, notably the physical
environment and the social fabric of the host community.
2. According to Richards, “Sustainable tourism is tourism which develops as quickly as
possible, taking account of current accommodation capacity, the local population, and the
environment. The development of tourism and new investment in the tourism sector should
not detract from tourism itself. New tourism facilities should be integrated with the
environment.”
3. Butler defines environmentally sustainable tourism as, “tourism which is developed and
maintained in an area (community, environment) in such a manner and at such a scale that it
remains viable over an infinite period and does not degrade or alter the environment (human
and physical) in which it exists to such a degree that it prohibits the successful development
and well being of other activities and processes.”
Review Question
1. Explain the terms ‘sustainable tourism’.
7.8 Sustainable Tourism Development

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The World Commission on Environment and Development (The Brundtland Commission)
brought the term ‘sustainable tourism development’ into common use in its seminal report (1987)
called ‘Our Common Future.’
“Sustainable Development is the development that meets the needs of the present without
compromising the ability of future generations to meet their own needs.”
The definition has within it two concepts:
 The concept of ‘needs’, especially the needs of the poor.
 Ability to meet the present and future needs.
Basically, when we talk about sustainable development, the easiest definition is what we, the
present generation, have inherited a certain amount of ecology and environment surrounding in
terms of land, water, and air; when we leave it to the next generation, we should leave it at least
in the same condition, of not in a better condition than what we inherited. This is the sum and
substance if sustainable development, putting it in elementary terms.”
Review Question
1. Explain the terms ‘Sustainable Tourism Development’.
7.9 Need for Sustainable Tourism Development

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Until the beginning of last decade tourism was seen as a profitable sector of business with no
obvious constraints to growth, few barriers to entry to the market, an almost, universal welcome
from governments and, for the most part, entailing few effective regulatory requirements to take
the environment into account.
Commercial organizations, large and small, act on the Dawkin’s principle of self-interest. They
do not make significant changes to the way they do business, which could be because of
exhortations or out of good intentions, except in response to the pressure of external factors that
cannot be avoided or to seize a competitive advantage.
International tourism has brought in a phase in which the opportunities of making quick profits
from exploiting what was regarded as freely available natural resources dazzled the eyes of
government and businessmen, as well as many local residents.
As there are many economic, social, ecological and political limits to tourism development,
sustainable strategies are necessary to eradicate these problems.
Review Question
1. Explain the need for sustainable tourism development.
7.10 Principles of Sustainable Tourism

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Tourism Concern, 1991 in association with the Worldwide Fund for Nature(WWF) gives 10
principles for sustainable tourism. These are following as:
1) Using resources sustainably. The conservation and sustainable use of resources- natural,
social and cultural – is crucial and makes long-term business sense.
2) Reducing over-consumption and waste. Reduction of over-consumption and waste avoids
the costs of restoring long-term environmental damage and contributes to the quality of
tourism.
3) Maintaining biodiversity. Maintaining and promoting natural, social and cultural diversity
is essential for long-term sustainable tourism and creates a resilient base for the industry.
4) Integrating tourism into planning. Tourism development which is integrated into a national
and local strategic planning framework and which undertake environmental impact
assessments increases the long-term viability of tourism.
5) Supporting local economies. Tourism that supports a wide range of local economic activities
and which takes environmental costs and values into account, both protects these economies
and avoids environmental damage.
6) Involving local communities. The full involvement of local communities in the tourism
sector not only benefits them and the environment in general but also improves the quality of
the tourism experience.
7) Consulting stakeholders and the public. Consulting between the tourism industry and local
communities, organizations and institutions are essential if they are to work alongside each
other and resolve potential conflicts of interest.
8) Training staff. Staff training which integrates sustainable tourism into work practices, along
with recruitment of personnel at all levels, improves the quality of the tourism product.
9) Marketing tourism responsibly. Marketing that provides tourists with the full and
responsible information increases respect for the natural, social and cultural environments of
destination areas and enhances customer satisfaction.
10) Undertaking research. Ongoing research and monitoring by the industry using effective
data collection and analysis are essential to help solve problems and to bring benefits to
destinations, the industry, and consumers.
Review Question
1. Explain the principles for sustainable tourism.
7.11 Different Dimensions of Future Tourism

fwel¨Z ch©Ub wewfbœ gvÎv
Tourism has environmental, economic and social impacts. Sustainable tourism is about
maximizing the impacts which are positive and minimizing the negative ones.
It seems that the environmental impacts are negative, the economic effects positive, and the social
impacts a combination of both. However, it is also important to recognize that there are clear links
between the three aspects of tourism – the environmental, economic, and social dimensions – and
these are below
Three dimensions of sustainable tourism are:

1. Environmental
2. Economic
3. Social
Review Question
1. What are the three dimensions of sustainable tourism?
7.12 Environmental Dimension of Tourism

ch©Ub cwi‡e‡ki gvÎv
To many people, sustainability is about the environment, primarily the natural, physical
environment, and its protection. However, there is far more to the environment than just the
natural landscape.
Let us now move on to look at the five aspects of the environment:
1. The Natural Resources: Tourism makes use of a range of natural resources, and in many
cases, the core attraction of a destination’s product may be natural resources such as clean
air, land, mineral waters, and the water in lakes and seas.
2. The Natural Environment: There are few natural landscape or wilderness areas left in the
world. Almost all natural landscapes have been affected to some extent by the actions of man
through the centuries. Tourism is only one industry or activity which changes landscapes.
3. The natural landscape represents the core of the tourism product in many areas including
natural forests, mountains, and regions which attract tourists because of their rivers and lakes.
4. The Farmed Environment: The farmed environment can cover a diverse range of
agricultural systems including agriculture landscapes, man-made forests, and fish farms.
5. Wildlife: Wildlife has a number of dimensions such as land-based mammals and reptiles,
flora, birds, insects, fish, and marine mammals. Tourism can clearly be very harmful to
wildlife through the destruction of habitats, affecting feeding habits, disrupting breeding
patterns, fires in woodlands and people picking rare plants.
6. The Build Environment: We also need to recognize that, in term of tourism, there are several
dimensions to the built environment such as individual buildings and structures, villages and
townscapes, transport infrastructure, dams, and reservoirs.
Review Question
1. Explain environmental dimension of sustainable tourism?
7.13 Economic Dimension of Tourism

ch©U‡bi A_©‰bwZK gvÎv
In the debate over sustainable tourism, the economic dimension is often given relatively scant
attention compared to the environmental issues. Tourism is an economic phenomenon because:
1. It is a major industry and foreign currency earner.
2. It is the basis of the growth of many transnational corporations.
3. It accounts for a significant proportion of the annual disposable income.
 Economic Benefits of Tourism
Tourism contributes to the economy of a country in various ways. Economic benefits of
tourism are following as:
 Job creation
 Injection of income into the local economy through the multiplier effect.
 Helping keep the local business viable.
 Infrastructure development.
 Attracts the foreign direct investments.
 Economic Costs of Tourism
There are many economic benefits of tourism as well as costs. Economic costs of the tourism
are following as:
 Many jobs are low paid and seasonal.
 Opportunity costs.
 Congestion.
 The need to invest in expensive infrastructure which may only be required for part of the
year.
 Over-dependence on tourism makes the host economy vulnerable.
Review Question
1. Explain economic dimension of sustainable tourism?
7.14 Social Dimension of Tourism

ch©U‡bi mvgvwRK gvÎv
The social dimension of tourism has been given less attention in the sustainable tourism debates,
than the environmental impacts of tourism. This is because the socio-cultural impacts of tourism
usually occur slowly over time in an unspectacular fashion. They are also largely invisible and
intangible.
The social impact of tourism is usually permanent with little or no opportunity to reverse the
changes once it has taken place. When the social impact of sustainable tourism has been
considered the focus has normally been upon the host community.
There are a number of factors that determine whether or not the balance of socio-cultural impacts
will be positive or negative in a particular location including:
 The strength and coherence of the local society and culture.
 The nature of tourism in the resort.
 The level of economic and social development of the host population in relation to the tourists.
 The measures were taken by the public sector in the destination to manage tourism in ways
which minimize the socio-cultural costs of tourism.
Review Question
1. Explain social dimension of sustainable tourism?
7.15 Tourism Forecasting

ch©Ub c~e©vfvm
Forecasting method is highly important for the tourism industry, which needs accurate predictions
of demand so that it can plan effectively from year to year, season to season. If a bad year for
tourist arrivals is predicted, then a tourism/ tourist operator may want to reduce casual staff and
reduce the scale and extent of his operation. When a good year is expected, she/he may want to
hire more new staff, make more rooms/beds available and increase the frequency of excursions.
Accurate tourism demand forecasts improve the efficiency of businesses, increase earnings and
strengthen economies.
But important issue, how can one predict the future demand for tourism in a world that is so
complicated and when there are so many factors that can influence the number of tourists visiting
a country, a town, a region, a resort, or even a hotel. Ideally, in a year when everything else is
stable, (which never happens), a single chance event like a tsunami or a terrorist attack can have
a strong influence on tourism demand. Luckily, even though the world is an uncertain, and
sometimes dangerous, place people still want to go on holiday, and experience has shown that it
is often possible to make quite accurate forecasts about many important components of tourism
demand.
We need functional method to evaluate tourism demand forecast and nature of functional method
take some input and produce some useful outputs based on concept used.
Review Question
1. What do you mean by tourism forecasting?
7.16 Elements of Tourism Demand Forecast

ch©Ub Pvwn`vi c~e©vfv‡mi Dcv`vbmg~n
Every method must accept some input(s) and produce some useful outputs. The elements of
tourism demand that are forecasted are known as ‘factors’ because their quantities vary in space
and time. The essence of forecasting is that these factors (e.g. visitor numbers, visitor pay out,
hotel residence rates, etc) are dependent upon other factors and that it is the consistent relationship
between these factors that allows to makes a forecast.
Tourism demand forecast depends on two factors as shown in following figue. Tourism demand
forecast is ‘Depends on’ on Dependent Factors (what is forecasted) and Independent Factors
(what is used to help the forecasts).
Elements of Tourism Demand Forecasting

The factor that one is interested known as the dependent factor and the factors used to predict the
value of the dependent factor are known as independent or predictor factors. Examples of these
factors are shown in the following table.
Table: Tourism demand forecast factor

Predictor Independent Factor Dependant Factor
Economic Variables Hotel Occupancy Rate
Demographic Variables Total Arrivals
Cost of Travels International Tourist Arrivals
Political Variables Domestic Tourist Arrivals
Market Variables Overnight Stays
Climate Same-day Visitors
Time Excursions Sold
Tourist Taxes Visitors pay out
Income Toursim Contribution to GDP (Gross Domestic Products)
Marketing Expenditure Passengers seats occupied
All forecasting methods are just different ways to make predictions about the value of dependent
factors using one or a number of independent factors. The number of techniques range from
applying very simple mathematical techniques using standard spreadsheets, all the way through
to the application of advanced and highly sophisticated commercially available software.
Review Question
1. What are the elements of tourism demand forecast?
7.17 Tourism Demand Measurement Categories

ch©Ub Pvwn`v cwigvc wefvM
We have seen broadly four categories for tourism demand measurements as shown in the
following table.
Table: Categories for Tourism Demand Forecast
S.No. Category Examples
1. A time-consumed tourist-days, tourist-nights, etc.
2. A pecuniary' the amount of tourist expenditure (receipt), share of expenditure
(receipt) over income, etc;
3. A doer number of tourist arrivals, number of visits, visit rate, etc;
4. A distance-travelled distance travelled in mile or kilometer, etc.
These categories play an important role during tourist demand forecasting to select appropriate
tourist demand forecasting method.
7.18 Tourism Demand Forecasting Classification

ch©Ub Pvwn`v c~e©vfvm ‡k«wYweb¨vm
A number of tourism forecasting techniques can be described in many dimensions. We have seen
the following categories classification as shown in the following Figure and described in the
same section.
But, we have concentrated only two dimensions in this paper as described in following sub section
and remaining dimensions out of scope in this paper due to limited space.
Figure. Classification of Tourism Demand Forecasting

Review Question
1. Show the classification of tourism demand forecast?
7.19 Qualitative/ Technological and Quantitative Forecasting

¸Ygvb / c«hyw³MZ Ges cwigvYMZ c~e©vfvm
Qualitative and quantitative forecast are considering the data information available. Both
forecasting can use to make predictions about dependent factors and the choice of method often
depends upon exactly what one is trying to predict (the dependent factor), the level of accuracy
required, and occasionally the timeframe of the forecast. We have identified different criterions
for the modeling of qualitative or quantitative forecast method as shown in the following table.
Table. Criterions for the modeling of qualitative or quantitative forecast method
Qualitative / Technological Forecasting Quantitative Forecasting
 Require: It require the use of historical  Require: It does not necessarily require
data in conjmiction with niathernatical the existence of historic data since they
models and are aimed to identify rely on pooled expert opinions.
relationships and patterns of future
tourism demand and its determinants.
 Interest: to quantify risks of complicated  Interest: interested in numbers and precise
or unpredictable events such as terrorism predictions about tourism demand
or changes in the global economic
markets.
 Nature: Simple, not necessary" cheaper,  Nature: More Typical, relatively cheaper,
not necessary easier relatively easier
 Conditions/ Preferred Situations:  Conditions/ Preferred Situations:

a) Data are insufficient or are known to be a) Sufficient information about the past is
unreliable: available;
b) It is not possible to construct a suitable b) This information can be quantified m
numerical model; the form of numerical data;
c) Time is insufficient to initiate and c) It can be assumed that some aspects of
operate a quantitative analysis. the past pattern will repeat in the future.
 Foundation: In need of no mathematical  Foundation: the objective numerical

rules, qualitative forecasting relies on measurements are consistent over the
intuitive flunking, judgment and historical period, and statistical principles
accumulated experience from the experts.
 Consider : a) Begin with the past and  Consider: for short-term forecasts, as the
present as the starting point and move relationships between factors are likely to
toward the future m a heuristic way, with remain reasonably constant over this short
all available possibilities being examined time period.
b) Begin with the future by specifying
future aims & objectives, and then work
backwards to investigate whether these
can be achieved based on available
resources, technologies and constraints.
 Drawback: Data insufficiency, difficult to  Drawback: When the time period of
model in absence of data, difficult to prediction lengthens, the relationships
define time tend to be less and less constant, and the
accuracy of quantitative forecasting may
decline.
 Sub categories: Exploratory and  Sub categories: Casual and non-casual
Normative methods methods
Though, in real-life, a combination of both qualitative and quantitative forecasting, if possible, is
advantageous. We have found number of applications on combinations of both in a real-world for
domestic as well as international tourism to investigate the improvement of forecasting accuracy.
Review Question
1. How will you identify different criterions for the modeling of qualitative or quantitative
forecast method?
7.20 Casual and Non-Casual Forecasting

‰bwgwËK Ges A-‰bwgwËK c~e©vfvm
As mentioned above, two major approaches to quantitative forecasting are identified. They are
based on different philosophical premises and serve different purposes. These depend on whether
they try to establish cause and affect relationships or not. Casual forecasting with random noise
and non-casual forecasting with random noise are shown in Fig.3 and Fig.4 respectively.
Figure 3. Casual Forecasting Method Figure 4. Non-Casual Forecasting Method
But, they consider Casual and effect relationship or simply generating process. These can be
dividing further in number of methods as shown in Figure 5. In reality, these forecasting methods
are divided into many sub categories does not necessarily imply that one chosen method
disqualifies the others.
We have concentrated towards Casual and non-casual methods modeling selection criterion as
shown in Table 4. We can found number of research papers which described the individual casual
methods like Neural Network Method, Multivariate Regression, Gravity & Trip Generation etc.
and/ or noncasual methods like Native Time Series, Smoothing Method, Classical Decomposition
method etc.
But, we found rarely to describe the selection of casual or non-casual methods in the literature.
Description of sub methods of casual or non-casual methods: criterion, characteristics, analysis,
case study is completely out of scope in this paper.
Table 4. Criterions for the modeling of Casual and Non-casual forecast method
Casual Methods Non-Casual Methods
Alternate Name: Econometric Alternate Name: Universal Time-Series,
Extrapolative
User/ Situation: planers strategists and User/ Situation:Fluctuations in the factors to
marketers be measured are caused by non-economic
ii) to do a “what if” forecasting, by examining factors but rather by political events
the relationship between demand variables. (terrorism, special events), seasonality or the
weather
Assume Assume:
i) A cause and effect relationship between i) To use past values of tourism demand in
the inputs to the system and its output order to extrapolate future ones.
ii) Assuming a constant relationship exists ii) To treat the system as a "black box" and the
between inputs and the output, any change prediction of the future output only depends
of inputs is to affect the output in a on the pattern of the input data and
predictable way randomness.
Role: Play roles in both forecasting the future Role: Play roles in both forecasting the future
trends and interpreting the existing trends
relationship between demand and its
determining forces.
Advantage: Advantage:
i) It has explanatory power. i) It allows for an understanding of the
relationships among factors, for the reason
that it models the degree of influence
exerted upon the demand by each of
several factors.
ii) Implement in shorter period of time
iii) limited data requirement
Disadvantage: Disadvantages:
i) The insufficient data on tourism demand lack of data, inadequate information or limited
and on explanatory factors could be a user understanding on casual structure, cost
possible reason for the poor performance and time constraints.
ii) involve cost and time requirements in
order to gather and analyze the data
Review Question
1. Explain Casual and Non-Casual Forecasting Method.
7.21 Tourism Distribution Systems

ch©Ub weZiY wm‡÷g
The link between tourism suppliers and the customers is known as the distribution system. The
purposes of the system of distribution are twofold: to give potential travelers the information they
need to make a vacation choice, and to allow them to make the necessary reservations once they
have decided on their choice. The various types of distribution systems are diagrammed in Figure
11.1.
A. Direct distribution system: The distribution system may be direct or indirect. A direct
system of distribution is one where the supplier (destination, airline, hotel, etc.)
communicates directly with the customer. An individual, for example, may call a specific
hotel or airline, or write to them requesting a reservation for a specific date. The supplier then
answers over the phone or writes back confirming the reservation. The transaction is direct.
Suppliers have experimented with other, less traditional forms of communicating with the
traveler. Larger companies provide toll-free 800 telephone numbers that they advertise to the
public. This allows the traveler to call the supplier without charge. In a few cases, automated
ticketing machines have been opened at airports. These machines connect directly with the
computer reservations system of an airline and allow the traveler with a credit card the
availability of receiving flight information, making a reservation and receiving both ticket
and boarding pass on the spot. These machines have limited exposure at airports, for the
airline runs the risk of upsetting the retail travel agents who are being bypassed. If successful,
it is likely that automatic ticketing machines will be installed in hotels and elsewhere.
Figure 11.1 Tourism distribution systems.

Technology is available to sell travel through home computers. Mass outlets for selling travel
have been utilized in Europe with travel being sold through supermarkets. For simple
transactions these direct methods of selling travel can be expected to grow.
For the supplier, the system is simple, profitable and offers control over the sale. The system
is simple in that buyer and seller have direct communication with each other; it is profitable
in that all the revenue paid by the customer goes to the supplier; control comes from the fact
that the sales representative is an employee of the supplier.
B. Indirect distribution system: An indirect distribution system is one where there are one or
more intermediaries between the supplier and the customer. The most common intermediaries
are discussed in the sections that follow.
1. Retail travel agents. These are people who sell tours for wholesalers and operators in
addition to hotel rooms, car rentals, and transportation tickets. The retailer acts as agent
for the supplier and is paid on a commission basis by the supplier for sales made.
2. Tour operators or tour wholesalers. These are people who create a package that might
include a variety of tourist products such as transportation, lodging, meals, transfers,
sightseeing, etc. Wholesalers buy these "products" in bulk from the supplier at a reduced
price and make money by marking up the package. They can sell the package directly to
the tourist (tour operator) or through retailers (tour wholesaler). In the latter case, they
would pay a commission to the retail travel agent.
Retail travel agents can package their own tours and sell them to the public and/or through
other retailers.
3. Specialty chandlers. People who are intermediaries between the retailer and the
customer are known as specialty chandlers. They may represent either the customer or
the supplier and include incentive travel firms, meeting and convention planners,
association executives, and corporate travel offices. Incentive travel firms put together
and sell travel as an incentive to increase sales. They sell their ability to design, promote,
and manage incentive travel programs. Other specialty channelers are employees who
buy travel services at efficient costs for their organizations.
4. Supplier choice. Why would a supplier choose to give up control of the sale while paying
a commission by distributing the product indirectly?
The major reason is cost. For many companies the cost of maintaining a sales network is
prohibitive. To set up national and regional sales offices is very expensive and is a fixed
cost; the salaries and rents must be paid irrespective of the sales volume produced. By
contrast, the cost of selling through intermediaries is variable; a commission is paid only
if a sale is made.
Additionally, the intermediary assists the supplier by checking customer credit, taking
various individual payments, and paying the supplier in one sum.
5. Customer choice. Numerous reasons exist why the customer would wish to deal with an
intermediary. In theory, the middleman offers unbiased professional assistance in
selecting from a variety of travel products. For customers calling United Airlines by
telephone, the reservationist at United will try to sell United products. A travel agent, on
the other hand, will have access to and will be paid a commission on selling a variety of
airline flights. The customer is offered a better selection and may find a less expensive
and/or more convenient flight.
Both the knowledge and the experience of the intermediary are generally available to the
traveler free of charge. In unusual situations where the cost of putting together an
individualized itinerary involves a fee, travel agents, for example, will spend time
advising clients on where to go, how to get there, what to see and even how to pack.
The intermediary can often negotiate options for the traveler that the individual tourist
cannot get. Because they deal in larger numbers of travelers, intermediaries have clout
with suppliers to provide difficult-to-get theater tickets or special discounts, for example.
Review Question
7.22 Tourism / Travel Distribution Channel

ch©Ub / ågY weZiY P¨v‡bj
The distribution channels link the customers with the businesses. The tourism channel of
distribution is an operating structure, system, or linkage of various combinations of
organizations through which a producer of travel products describes, sells, or confirms travel
arrangements to the buyer. For example, it would be impractical for a cruise line to have a sales
office in every market city of five thousand or more people. The most efficient method is to
market through over twenty thousand retail travel agencies in the United States and pay them a
commission for every cruise sold. The cruises could also be sold through such intermediaries as
tour wholesalers (who would include a cruise in a package vacation), through corporate travel
offices, via the Internet, or by an association such as an automobile club. Thus, the cruise line
uses a combination of distribution channel organizations to sell cruises. Figure 7.1 extracts the
operating sectors from Figure 1.2 and shows that travel trade is one of the important sectors of
the tourism industry. Tourism distribution channels are similar to those of other basic industries
such as agriculture or manufacturing (see Figure 7.2).
Figure 7.1 Operating sectors of the tourism industry: travel trade.

Their products flow to the ultimate consumer through wholesalers, distributors, and middlemen.
While there are similarities with other industries, the tourism distribution system is unique.
Tourism produces mainly services that are intangible. There is no physical product that can be
held in inventory to flow from one sales intermediary to another. Instead, the “product” is, for
example, a hotel room that is available on a certain day, which is very temporal. If the room is
not sold, that revenue is lost forever.
Figure 7.2 Tourism distribution channels.

The travel industry landscape is constantly changing, and nowhere is this more true than in travel
distribution. Powered by advances in technology and the growth of e - commerce, travel
distribution has changed dramatically. The impact on travel agents and consumers brought about
by the Internet and airline commission cuts are examined in this chapter.
Review Question
1. What is tourism channel of distribution?
7.23 Types of Tourism Distribution Channels

ch©Ub weZiY P¨v‡bj¸wji c«Kvi¸wj
A distribution channel is the way that your services get to your customer, and how they pay for
it. It can either be a direct transaction (for example, through your website), or involve third party
resellers.
For tour operators, there are 5 third-party distribution channels that can’t (or at least shouldn’t)
be ignored.
1. OTAs (Online Travel Agencies): Online travel agencies will list your tour or activity on
their site and allow their users to search for and click through to book with you. Usually this
is through a pay-per-click format. Make sure that they have what they need to promote your
business in a good light.
2. Government Websites: Destination-focused government websites are a good channel to

leverage. For tours and activities, you will usually be required to meet certain criteria. For
example, Destination NSW requires that you offer regular organised excursions with
scheduled departures, a personal guide or host and commentary.
3. VICs (Visitor Information Centres): VICs will organise accommodation, tour, and
transport bookings for visitors. Because travelers often go to these centres to seek information
on what to do at a particular destination, it would be wise to contact your local VIC and see
how you can partner with them.
Some VICs don’t ask for commission for bookings that they send to you, while others have
a pricing structure to list on their site. It really depends on the VIC.
4. Daily Deal Websites: Vouchers and coupons are the perfect channel for filling your capacity
during slower periods. A daily deal site can boost awareness of your business without
spending thousands on marketing. It’s also a good way to upsell by selling extras along with
your deal. Just remember to set a logical limit to the number of coupons sold, and not to offer
a discount that is too high.
5. Concierge Services: Concierges at hotels assist their guests with tasks that will help them
get the most out of the destination. This means they make reservations for restaurants, spas,
transport, events, tours and activities. Drop off your brochures at nearby hotels and convince
your concierge that it’s a good idea to resell you.
Interested in learning more about equipping your tour and activity business with the latest
tips and trends? Why not download our latest Industry Survey eBooks today:
Review Question
1. Explain about different types of tourism channel of distribution?
7.24 Travel Agent

Uª¨v‡fj G‡R›U
Travel agent is a person who has a full knowledge about tourists product – destinations, modes
of travel, climate, accommodation and other areas of the service sector. He acts on the behalf of
product providers/principles and in return get a commission. Technically, a travel agent is an
owner or manager of an agency, but other employees are responsible for advising tourists and
selling packages tours/individual components of travel products.
A travel agent may be an individual /firm or corporation which is commonly known as a travel
agency. An agency means the office of travel agent or organization where all travel goods and
services are assembled and coordinated for the smooth conduct of travel agency business.
Travel agency is one of the most important organization in the tourism private sector which plays
a significant and crucial role in the entire process of developing and promoting tourism in the
country or at a destination. It is a travel agency which packages and processes all the attractions,
accesses, amenities and ancillary services of a country and present them to tourists. That’s why
travel agency is known as ‘image builder‘ of a country.
A prospective travel agency is one which makes arrangements of travel tickets (air, rail, road, and
sea); travel documents (passports, visa and other documents required to travel); accommodation,
entertainment, and other travel-related services from principle suppliers. It may also secure travel
insurance, foreign currency for traveling people.
Review Question
1. Who is a travel agent?
7.25 History of Travel Agency

Uª¨v‡fj G‡RwÝ Gi BwZnvm
The first Travel Agency of the world was established by Thomas Cook in 1845 in England. The
use of the term travel trade dates back from the early years of the 19th century, but this should
not obscure the fact that what we today describe as travel trade (travel agency and tour operation
business) was taking place much earlier in history.
Throughout the history, there was travel middleman who helped the merchants traveling for trade
and other who traveled for religious purposes.
In 1841 a fortunate day comes in the history of travel trade when Thomas Cook, as secretary of
South Midland Temperance Association, organized a trip by a train for 570 members for his
association to the distance of 22 miles. He bought railway tickets in bulk to sell them to people.
The experiment was successful and everybody was exultant. Mr. Cook had done his job on a no
profit basis. But, incidentally, It gave him a new idea and turned it into a tour business.
Four years later in 1845, he set up a ‘World’s First Travel Agency‘ to organize excursions. Due
to this innovative approach, Mr. Thomas Cook is known as the Father of Travel Agency
Business. He co-ordinated railway and steamship excursions throughout England, Scotland and
Europe.
However, the railways only gave him 5% commission which was not enough to meet his
overheads, so he decided to diversify this business into tour operation.
In 1855 Mr. Cook started operating package tours. He conducted the world’s first international
tour from England to the Paris.
Review Question
1. Give a brief history of travel agency?
7.26 Types of Travel Agency

Uª¨v‡fj G‡RwÝ c«Kvi
Travel agencies are basically categories in two types-: Retail Travel Agency and Wholesale
Travel Agency.
1. Retail Travel Agency: A retail travel agency sells tourists products directly to the public
on the behalf of the products suppliers and in return get commissions. Some package tour is
sold in two ways i.e., on a commission basis and mark up the price.
When a travel agency sells a tour on the marked-up price it means that first, it markup the
cost of the tour and then sell it at a higher rate. The markup price is the difference between
retail price and wholesale cost.
Definitions
 According to Airlines Reporting Corporation (ARC) a retail travel agency is defined as
” a business that performs the following functions: quotes fares, rates, make
reservations, arrange travel tickets and accommodation, arrange travel insurance,
foreign currency, documents and accepts payments.”
 According to SARC (1967), ” retail travel agency business consists of the activities
involved in selling tourism products/services directly to the tourists and performs
normal functions such as issuing air tickets, making accommodation and transportation
reservation, providing specialized services, and accepting and making payments.”
The main source of the revenue for the travel agency is the commission received from the
vendors. However, the rate of the commission differs from organization to organization an
travel component to the travel component.
A travel agency receives appx. 95% of their revenue from the commission, and the
remaining 5% from consultancy services and others.
2. Wholesale Travel Agency: These agencies are specialized in organizing package tours, which
are marketed to the customers/tourists through the network of a retail travel agency or directly
to the prospective clients ( if wholesale travel agency has a retail division). A wholesale travel
agency purchases tourists product components in the bulk and designs tour package.
Sometimes, a wholesale travel agency buys travel components from the vendor in bulk and
resell them to another travel business originations.
Wholesale travel agencies assemble package holidays and sell them to the clients through
retail travel agencies. A typical package tour includes – air tickets, accommodation, and
something other services may also be included in it such as entertainment, sightseeing, and
sports activities etc.
These packages are referred to as ‘package tours’ most of these tours include the services of
escorts but a few are sold to people who wish to travel independently.
Now a question arises – How a wholesale travel agency generates profits?
Generally, a wholesaler receives volume discounts from the principal suppliers because a
wholesaler might agree to purchase a large number of seats from a particular airline or reserve
a large number of room at a particular hotel or resorts.
Practically, a wholesaler who sells package vacations/tours is called a Tour Operator.
However, technically there is a difference between a wholesaler and a tour operator. A
wholesaler who sells tourists product individually without assembling them into a package
tour is called as a Consolidator.
Mostly, these are specialized in particular product components such as air tickets,
accommodation, and conference, and conventions etc.
Review Question
1. Writes notes on
a) Types of Travel Agency
b) Retail Travel Agency
c) Wholesale Travel Agency
2. How a wholesale travel agency generates profits?
7.28 Difference-Wholesale Travel Agencies and Tour operators

cv_©K¨-cvBKvwi ågY ms¯’v Ges U¨yi Acv‡iUi¸wj
Difference between Wholesale Travel Agencies and Tour operators are given below:
1. The wholesale travel agencies may offer or operate the package tours or may specialize in
developing tours for inbound as well as outbound travelers. They are often referred to as tour
operators, but these two essentially different:
2. Wholesale travel agency does not sell directly to the public, while tour operators do sell
directly to clients.
3. A wholesale travel agency usually combines, assembles and contacts for existing travel
services to formulate a new travel product she has his own one or more components of travel
product i.e. ‘ inclusive tours.’
4. Wholesale travel agencies are less inclined than tour operators to perform ground services i.e.
handling agency or ground operators.
5. A wholesale travel agency may deal with one component of travel product while a tour
operator offers a variety of tour programmes.
6. The size of the business is large in the case of tour operators in comparison to a wholesale
travel agency.
Review Question
1. What are the difference between Wholesale Travel Agencies and Tour operators?
7.29 Features and Importance of the Travel Agency

‰ewkó¨ Ges Uª¨v‡fj G‡RwÝ Gi ¸iæZ
Travel agency plays an important role in travel sector business. Some most important features
and importance of the travel agency business are following as:-
1. An important link between the clients and principal suppliers.
2. Image-Builder.
3. Ensures rapid travel services.
4. Provider of an authentic and reliable travel information.

5. A social a continuous process.
6. Establishes a good relationship with clients and vendors.
7. These are the most important features of the Travel Agency Business.
Review Question
1. What are the features and importance of the travel agency?
7.30 Functions and Services of Travel Agency

Uª¨v‡fj G‡RwÝ Gi Kvh©vw` Ges cwi‡levw`
Today, Travel Agencies have been recognized as a vital component of travel and tourism and
have become an integral part of the travel and tourism industry at global. They account for more
than 90% of international and 70% of domestic tourist traffic
Further, more than 60% of all travel agency revenues are derived from business travel. Most
travel agencies sell both commercial and leisure travel but there are many travel agencies which
only specialized in one sector or the other.
The operation of each travel agency is based on the scope of its activities and organizational size.
Here we discuss the functions of a large scale travel agency that performs all types of activities
such as Retail travel agency, wholesaling and tour operations etc. The main function of large-
scale travel agency are:
1. Travel Information: Whatever the size of a travel agency, it has to provide necessary travel
information to tourists. A travel agency must give up-to-date, accurate and timely information
regarding destinations mode of travel, accommodation, sight-seeing, shopping, immigration,
passport, visa, customs clearance and procedure, health and security rules and about various
permits required to travel in particular areas etc.
2. Itinerary Preparation: The term tourists itinerary is used to identify the origin, destination
and all the stopping points in a traveler’s tours. It is a composition of various elements and
designed after a detailed study of the market. Travel agencies prepare an itinerary for tour
packages.
3. Airline Ticketing and Reservation: A travel agency sells a variety of tourism products.
Airline ticketing and reservation is still a major source of revenue. Travel agencies perform
a function of airline ticketing and reservation on the behalf of various airlines.
4. Tour Packaging and Costing: Travel agencies prepare tour package and sell them to
tourists. The coasting and pricing of tour packages depend to a large extent on the ability of
travel agent as to how effectively he is able to negotiate with the principal suppliers.
5. Reservation: It is a very important function of all types of travel agencies. A travel agency
consistently makes linkage with the accommodation sector, transport sector and other
entertainment organizations to reserve rooms, and seats in the cultural programmes and
transportation.
6. Travel Insurance: Some large-scale travel agencies perform additional functions to serve its
clients. Travel insurance protects the travelers against the personal as well as baggage losses
resulting from a wide range of travel related happenings and problems.
7. Currency Services: Approved travel agency authorized by Govt. body provides currency
exchanges services to tourist.
8. Organisation of Conference/Conventions: Large-scale travel agencies offer a complete
convention/conference package which includes registration of the participants at the venue to
be picked up for dropped to the airport/hotel, overhead projectors, slide projectors, TV, VCR,
information counter, sightseen etc.
9. Travel Agency Linkages and Integration: Basically, a travel agency serves two type of
clients: business travelers and leisure travelers. Incidentally, the requirements of these tourists
are different and an agency has to assemble or purchase related components from the principal
suppliers to cater to their needs.
Essentially, travel agencies maintain close ties with Airlines, hotels, car rentals, banks, insurance
companies, railways, government, trade associations, foreign tour operators and travel agents,
ground operators, cruise companies and tourism educational institutes.
Review Question
1. What are the main function of large-scale travel agency?
7.31 Tourism in the Third Millennium

Z…Zxh় mnm«v‡ã ch©Ub
The purpose of this book has been to provide the student with a basic understanding of the
principles, practices, and philosophies of tourism as they relate to the industry of today. To
understand the present, it has, of course, been necessary to review the evolution and historical
development of the field. Clearly, the tourism industry of today is the product of many forces that
have shaped both its structure and the manner in which it functions. As has been pointed out on
several occasions, the growth and development of tourism has been particularly rapid over the
past half century:
 Since 1950, when international travel started to become accessible to the general public,
tourist activity has risen from 25 million to 842 million arrivals in 2006. International tourism
receipts have risen from US $ 2.1 billion to US $ 735 billion in 2006.
 International tourism receipts grew faster than world trade in the 1980s and now constitute a
higher proportion of the value of world exports than all sectors other than crude
petroleum/petroleum products and motor vehicles/parts/accessories.
The result is that tourism as we entered the third millennium was a very large and dynamic sector
of the economy. Because of the rapid growth and change of the past, one might be inclined to
believe that tourism has now reached a mature phase of its development in which the rate of
change and expansion will decrease.
On the other hand, a realistic assessment of the probable future suggests that despite the
challenges it faces (and has always faced), tourism is likely to continue to grow and develop more
rapidly and more dynamically than many other sectors for many years to come.
Review Question
1. Write note on Tourism in the Third Millennium.
7.32 The World of Tourism in 2020

2020 mv‡j ch©Ub wek¦
Forecasts, 2005 – 2020: As shown in Table 20.1 , international tourist arrivals are forecast to top
1 billion in 2010 and reach more than 1.6 billion in 2020. These volumes represent an overall
average annual rate of growth between 1995 and 2020 of 4.3 percent, with no slackening of
growth over the period (i.e., 1995 – 2000, 4.2 percent per annum [p.a.]; 2000 –2010, 4.2 percent
p.a.; 2010 – 20, 4.4 percent p.a.).
 Europe will remain the largest receiving region, though its below - global average rate of
increase will result in a decline in market share from 59 percent to 45 percent. East Asia
and the Pacific, increasing at 7.0 percent per annum, will pass the Americas as historically
the second largest receiving region, holding a 27 percent market share in 2020 against 18
percent by the Americas. The respective shares of Africa, the Middle East, and South
Asia will all record some increase to 5 percent, 4 percent, and 1 percent by 2020.
 Most significantly, World Travel and Tourism Council (WTTC) research shows that
some 296.2 million people around the globe will be employed in jobs that exist because
of demand generated by travel and tourism by 2018.
The bottom line is that travel and tourism is driving, directly and indirectly, more than 10 percent
of employment today, globally, regionally, and nationally.
In addition to the Aeroscraft, the tourists of tomorrow will be offered experiences

that are “out of this world.” These experiences will be realized in such facilities as
the Space Resort
Table 20.1 Forecasts of International Tourist Arrivals Worldwide and by Region 2010 – 2020
Tourist Arrivals (millions)
Regions 2000 2010 2020
Europe 390 527 717
East Asia/Pacific 116 231 438
Americas 134 195 284
Africa 27 46 75
Middle East 19 37 69
South Asia 6 11 19
World 692 1047 1602
Review Question
1. Write an essay on World of Tourism in 2020.
7.33 The Nature of Future Growth

fwel¨‡Zi e…w×i c«K…wZ
As we have seen, tourism is expected to continue to grow. However, the nature of this growth
and development may in many ways be quite different from that of the previous five decades. As
has become abundantly clear over the past several years, the period of the 1990s proved itself to
be dramatically different from that of the previous three decades. As a global community we are
living through widespread changes whose scope and significance are barely perceptible at this
point in time. Yet somehow, we understand that what came to be known as the New World Order
of the post – Cold War era is evolving in some very fundamental ways as we passed the magical
year 2000 and moved into the third millennium of Western history. And even though the Cold
War now belongs to history, the reality of war is still with us. The wars in Afghanistan and in
Iraq, and the ongoing war on terrorism that is being fought in our own lands, have more than
replaced the Cold War as a negative influence on people’s desire and willingness
to venture far from home. Until the threat of war is diminished, and until we adequately address
the issue of climate change, tourism managers will have to develop a comprehensive destination
policy, strategy, and management framework that adapts to and accommodates the reality of long
- term terrorism and climate change.
Some of the dimensions of this adaptation and accommodation are already recognizable, and
indeed, some are even predictable. Others are as yet but stirrings of anxiety or discontent. These
stirrings are possibly the most disconcerting for the mature adults of the so - called developed
nations — adults whose well - being and prosperity have improved constantly over their lifetime.
For perhaps the first time, the fundamental changes occurring around them threaten to leap out of
control and to undermine
the foundations of their secure and attractive lifestyles. Others, in less fortunate circumstances,
see these same changes as possibly the only glimmer of hope for what they view as a more
equitable distribution of all the opportunities that life has to offer.
Ironically, they may see these same changes as irrevocably condemning themselves to a life of
endless poverty.
7.34 Ways of Ensuring Future Growth of Tourism in Bangladesh

evsjv‡`‡k ch©U‡bi fwel¨Z e…w× wbwðZKi‡Yi Dcvh়
Following measures are necessary for the development of tourism sector in Bangladesh:
1. Up-date the present tourism policies in Bangladesh compare to the world tourism market.
2. Tourism spot and related organization should run by the private sector.
3. Tourism related discipline like hotel and tourism management should be start at the all
university in Bangladesh.
4. Infrastructures around the tourism sector should be built and maintained. Rail connection
between Cox’s Bazaar and Chittagong is necessary. Because, present communication system
is not enough for tourist attraction.
5. Political stability should be maintained to attract the foreign tourist.
6. Government should take the actions about the security system at the tourist place.
Review Question
1. What are the measures necessary for the development of tourism sector in Bangladesh?
7.35 Tourism and Globalization

ch©Ub I wek¦vh়b
Globalization and tourism are very dependent on each other. Today, thanks to globalization,
people from across the world can easily exchange ideas and values whether they are political,
environmental, technological, cultural, or economic settings. Consequently, this exchange has
enabled the circulation of massive knowledge amongst the people of the world. People now
understand each other better regardless of language, religion, or cultural differences and this has
boosted tourism in a huge way.
One of the greatest barriers to the growth of the global tourism industry is political
misunderstanding amongst different territories. And apparently, the same barrier has hindered
globalization for over five decades now. But the good thing is that citizens from different
countries are now exiting from their racial, tribal, religious, and political cocoons and embracing
humanity. Many people are continuously realizing the great potential that lies in pulling together
as people instead of antagonizing each other for imaginary conflicts. This trend has really helped
both globalization and tourism.
Globalization Has Affected the Tourism Industry in the following ways:
A. Positive effects
1. Increased global mobility: Globalization has made it easier to travel the world. There
are cheaper flights, interpreting companies are opening offices everywhere, there are
international credit card companies across the world, and changing currencies is easier
and more convenient than during any other time in history. This has aided tourism in a
big way.
2. Free flow of information: Globalization has made it easy for travel enthusiasts to
discover hidden travel destinations and to learn about different cultures before making
their traveling decisions. There are more senior citizens in the developed countries today
and due to the increased circulation of information, this non-working population is
making more international trips than ever before.
B. Negative effects
1. Terrorism: Increased globalization comes with some negatives too. Terror groups such
as Boko Haram, ISIS, and Al-Qaeda are able to send their terror messages easily and
faster thanks to social media. Deaths resulting from terrorism are also on the rise because
globalization has made it easier for weapons and criminals to move freely between
different countries. This hurts tourism in a big way.
2. Culture erosion: The richness of a given culture determines whether or not visitors will
be attracted to it. But with globalization sweeping across continents, many people are
losing their cultures and adapting to foreign traditions. This is killing the tourism sector.
Review Question
1. Write short notes on Tourism and Globalization. 2018 (13.c)
Exercise Part A & B

1. What is future tourist?
2. Write notes on ‘Future of Travel and Tourism in Bangladesh’.
3. Explain six trends making their mark on the future of tourism.
4. Explain the relation between tourism and technology.
5. Explain the uses of IT/ICT in the field of Travel and Tourism.
6. Explain the most significant tourism trends right now and in the future.
7. Explain the terms ‘sustainable tourism’.
8. Explain the terms ‘Sustainable Tourism Development’.
9. Explain the need for sustainable tourism development.
10. Explain the principles for sustainable tourism.
11. What are the three dimensions of sustainable tourism?
12. Explain environmental dimension of sustainable tourism?
13. Explain economic dimension of sustainable tourism?
14. Explain social dimension of sustainable tourism?
15. What do you mean by tourism forecasting?
16. What are the elements of tourism demand forecast?
17. Show the classification of tourism demand forecast?
18. How will you identify different criterions for the modeling of qualitative or
quantitative forecast method?
21. What is tourism channel of distribution?
22. Explain about different types of tourism channel of distribution?
23. Who is a travel agent?
24. Give a brief history of travel agency?
25. Writes notes on
a) Types of Travel Agency
b) Retail Travel Agency
c) Wholesale Travel Agency
26. How a wholesale travel agency generates profits?
27. What are the difference between Wholesale Travel Agencies and Tour operators?
28. What are the features and importance of the travel agency?
29. What are the main function of large-scale travel agency?
30. Write note on Tourism in the Third Millennium.
31. Write an essay on World of Tourism in 2020.
32. What are the measures necessary for the development of tourism sector in
Bangladesh?
33. Write short notes on Tourism and Globalization. 2018 (13.c)

07 Future in Tourism

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07 Future in Tourism

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Chapter 7

A driverless future in travel and tourism.

7.2 Future of Travel and Tourism in Bangladesh

7.3 Trends in Future of Tourism

7.4 Tourism and Technology

7.5 Technology and Future Global Tourism

 Expansion into new market

7.6 Trends in Tourism

7.7 Sustainable Tourism

The relationship between sustainable tourism and other terms.

7.8 Sustainable Tourism Development

7.9 Need for Sustainable Tourism Development

7.10 Principles of Sustainable Tourism

7.11 Different Dimensions of Future Tourism

Three dimensions of sustainable tourism are:

7.12 Environmental Dimension of Tourism

7.13 Economic Dimension of Tourism

7.14 Social Dimension of Tourism

7.15 Tourism Forecasting

7.16 Elements of Tourism Demand Forecast

Elements of Tourism Demand Forecasting

Table: Tourism demand forecast factor

7.17 Tourism Demand Measurement Categories

7.18 Tourism Demand Forecasting Classification

Figure. Classification of Tourism Demand Forecasting

7.19 Qualitative/ Technological and Quantitative Forecasting

 Conditions/ Preferred Situations:  Conditions/ Preferred Situations:

 Foundation: In need of no mathematical  Foundation: the objective numerical

7.20 Casual and Non-Casual Forecasting

Figure 3. Casual Forecasting Method Figure 4. Non-Casual Forecasting Method

7.21 Tourism Distribution Systems

Figure 11.1 Tourism distribution systems.

7.22 Tourism / Travel Distribution Channel

Figure 7.1 Operating sectors of the tourism industry: travel trade.

Figure 7.2 Tourism distribution channels.

7.23 Types of Tourism Distribution Channels

2. Government Websites: Destination-focused government websites are a good channel to

7.24 Travel Agent

7.25 History of Travel Agency

7.26 Types of Travel Agency

7.28 Difference-Wholesale Travel Agencies and Tour operators

7.29 Features and Importance of the Travel Agency

4. Provider of an authentic and reliable travel information.

7.30 Functions and Services of Travel Agency

7.31 Tourism in the Third Millennium

7.32 The World of Tourism in 2020

In addition to the Aeroscraft, the tourists of tomorrow will be offered experiences

7.33 The Nature of Future Growth

7.34 Ways of Ensuring Future Growth of Tourism in Bangladesh

7.35 Tourism and Globalization

Exercise Part A & B

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