The Nature and Characteristics of travel and tourism and the travel and tourism industry Definition of Tourism

You will need to know the accepted definition of tourism below: ..the short term movement of people to destinations away from the communities which they live and work, and their activities during their trip, including travel, day visits and excursions. Understand the nature of the industry in that it is perishable and intangible. Perishable A travel and tourism service can not be stored for later. Your seat on a plane or bed in a hotel are only available once at a set time. If they are not used they will perish. Intangible You can not touch or test a holiday or trip before you pay for it. Tour Operators and Travel Agents must convince the customer that a real product or service (tangible) will be provided. They do this by using brochures, virtual tours, ticket, receipt and confirmation e-mail

Types and Purposes of Tourism You must be able to describe each of the types of tourism below, give an example and understand differences between them. Tourism Type Incoming Description Travellers arriving in a different country than their own. Known as inbound tourism. Travelling around your own country. Known as internal tourism. Example Arriving on your annual holiday in Madrid, you would be an incoming tourist to Spain. A family from London going on a one week coastal holiday to Brighton. Travellers leaving their A British couple going

Domestic

Outgoing

own country to go abroad. Known as outbound tourism. Business Travellers go abroad for the purpose of work. Leisure travel can be as little as a day trip to a park or beach, or as much as world tour lasting 6 months. An excursion is simply a trip away to a tourist destination. Are usually for the purpose of challenge, exploration, skills development or thrills. Arranged by a tour operator and includes transport and accommodation. Opposite to package travel, where people book their holiday themselves. People have always travelled to visit friends and relatives.

Leisure

Excursions

Adventure

Package

Independent

Visiting friends and relatives (VFR)

on a long haul holiday to New York or short haul to the Spanish Costas An English businessman travelling to Munich for a business conference. Leisure tourism cuts across all types of tourism holidays, short breaks, long haul trips. A day trip on a coach for older people to Brighton. Ice climbing in the French Alps. White Water rafting in Wales. A family package holiday brought through a Travel Agent to the Costa Del Sol, Spain. Common with gap year university students inter-railing around Europe. Bank Holiday Monday visit to your cousins house in Manchester.

Characteristics of the Travel and Tourism Industry You should be able to give examples if these characteristics in the UK Travel and Tourism industry research into the operations of different types of organisation. 1. The industry is private sector led - Normally aim to generate a profit and increase market share - Provide customer with products and services - Often household names: Virgin Airways, P&O Ferries - Large companies hold 50% of market 2. The majority of businesses in the industry are small and medium sized but the industry is dominated by a number of large organisations. - Multiples name given to the largest companies which have multiple outlets such as Going Places Travel Agent, they tend to dominate the industry. This has made travel and tourism more affordable for customers but mass tourism can have negative impacts on the environment, local culture and smaller businesses who can not afford to compete. - Small and medium sized enterprises (SMEs) can trade globally from an internet site but tend to serve customers on a regional or local basis. Usually fewer than 250 employees. Tend to focus on niche markets such as adventure holidays. 3. The industry makes use of new technologies such as ICT (Information Communications Technology. - New technology has had a huge impact on the industry. - The internet has changed the way we book holidays. Independent travellers are now happy to book individual elements direct using online booking systems or via email with SMEs i.e. hotels abroad and low fare airlines. 2. The industry is vulnerable to external pressures Currency Fluctuations Government Legislation: Case Study National Park Act (1949) - the act created Britains National Parks. In National Parks development and impact of tourism is controlled, so that

negatives impacts on the environment are minimised often at an economic cost to tourism businesses. Climate Change: it is predicted that the paradise islands of the Maldives will be under water with 100 years from the possible impacts of Sea Level Rise. Sea Level Rise is caused via the melting of the polar ice caps from global warming. War and Civil Unrest: Case Study Sri Lanka - the ongoing Civil War in Sri Lanka has reduced tourism by up to 40% in 2007. As a result many airlines have suspended flight to Sri Lanka. Many tourist areas have been destroyed as the LTTE group try to destroy the economy of the country. Terrorism: This has been in the form of a drop in the amount of people flying due to fears for their safety and security. Economic Climate

The development of the travel and tourism industry You will need to know the key stages in the development of the travel and tourism industry with a particular focus on post Second World War developments and their effect of the industry. Since the end of the Second World War (1945) the Travel and Tourism industry it is regarded as the largest industry in the world. In 1998 it was estimated UK residents took over 60 million holidays both at home and abroad. This growth can be explained by the following factors: 1. Motivating factors are the reasons why we want to go on holiday. These can be two types intrinsic (from within) motivation, such as having a burning desire to see the world and Extrinsic (from outside) motivation such as being pulled towards a place that we may have seen on television. 2. Enablers are closely linked to motivating factors but are different. This factors allow us to travel: a. level of disposable income (money available for travel)

b. level of education (knowledge of the world) c. level of mobility (ability to get around e.g. car, airport location) 3. Socio-economic factors it is estimated that there are now 25 million cars on the road in the UK, which is nearly half the population. The increased popularity of the motorcar has led to a decline in the use of public transport: The impacts have been: 1. Congestion and pollution with no alternative as cost of public transport is high 2. New products emerged to suit car owners e.g. caravan holidays 3. Access- transport network has developed to allow access to countryside 4. Technological growth in 1969 the Boeing 747 was launched. The aircraft had the following impacts on the package market: 1. It was possible to fly further in less time, thus making long haul destinations more accessible 2. Increased capacity (400 seats) meant the price per seat was reduced this lowering prices 3. As jumbo jets were used more the smaller aircraft were available for charter operations. 4. Long haul travel was less exhausting and as a result business travel increased. 5. Product development and innovation in the 1970 the travel and tourism industry saw huge growth in the package holiday. Resorts on the Spanish coast needed new accommodation to support the tourist boom. That factors influencing this were: 1. lifting of government restriction allowed tourists to take more than 50 abroad 2. Longer paid holidays encouraged people to take a second holiday 3. Boeing 747 introduced reducing airfares further (see above) 6. Changing Consumer needs and expectations in the 1970s the demand for a second holiday grew This resulted in the 1980s of

the development of the short break, in 2000 Thomas Cook reported a 30% in short break holidays. The demand grew because: 1. Due to increases in leisure time 2. Due to rises in disposable income Budget airlines have made European destinations even more accessible for the traveller. There aggressive marketing approach, low costs and ticket less travel is changing the face of air travel today. The development has caused concern to major airlines such as British Airways who appear to be losing money.

Structure of the UK Travel and Tourism Industry You will need to know about the different sectors that make up the UK Travel and Tourism industry shown below. 1. 2. 3. 4. 5. 6. 7. Transport principals Tour Operators Travel Agents Attractions Accommodation providers Ancillary Service Providers Support Services

You will need to identify key organisations in each sector and describe the products and services they offer and their objectives and values. The industry is often divided up into the private and public sector. Private Sector Companies trade for a profit Dominate industry Range of scales from independent travel agent to International Tour Operator Public Sector Not profit orientated and provides a service Funded by local or national government e.g. DCMS (Department of Culture Media and Sport)

Transport Principals there are 4 main principal transport modes, aeroplanes, ships, trains and motor vehicles.

Air Travel There are two main types of airline travel charted and scheduled flights: Scheduled fly to a published timetable on fixed routes e.g. London to New York (British Airways). Ryanair and Easyjet offer no-frills scheduled flights to less busy airports giving the major airlines real competition. No-frills airlines offer less services, fly to airports with lower landing fees and turn aircraft around quicker which all helps reduce the prices of flights. Chartered fly to specific destination for tourism purposes e.g. holidaymakers to Spain from the UK. Therefore often seasonal in nature and belong to the larger airlines e.g. Monarch and Air 2000. As no set timetable often fly at unsocial times. Sea Travel Ferry Companies British ferries faced new competition when the Channel tunnel opened in 1994 and today by the budget airlines. Ferries have improved the quality of onboard products and services they offer, reduced prices and introduced faster vessels in order to compete. Cruise-ship companies cruises are no longer for the rich and famous. With mass market operators now owning many cruise operators it is one of the largest growing markets in the travel and tourism industry. http://news.bbc.co.uk/1/hi/uk/4552269.stm Rail and Road Car holidays in and from the UK tend to be to visit friends and relatives and the annual holiday trip to Europe. Many families now hire a car on holiday to give them independence when travelling around from companies such as Hertz and Avis. Rail use in the UK is in decline with a recent history of accidents, lateness and staff strikes. Much investment has come from the UK government to raise standards to compete with the rest of Europe.

Tour Operators Tour Operators are organisations that produce package holidays (transport, accommodation, transfers and ancillary services). The package is then sold directly to the public (direct sale) or via travel agents. Mass-market operators offer a wide range of products at a variety of locations e.g. TUI

Independent operators have created niche markets of special interest holiday packages. Often committed to a high level of customer service and selling the produce directly without using a travel agent, so the internet has helped their survival. Travel Agents Travel Agents sell travel products and services on behalf of others, and therefore do not produce anything. They receive commission for selling products from the principals e.g. tour operators. They also offer ancillary services such as car insurance, car hire, airport car parking, currency exchange to increase their commission levels (income). Technology has helped travel agents by giving them fast communications and reservation systems, but has hindered travel agents by the internet offering direct access to operators and transporters making travel agents redundant. Multiples a chain of travel agents with multiple outlets e.g. Going Places and Thomas Cook. Multiple travel agents dominate the sector and are often owned by a tour operator (integration). Independent often one shop, they do not have the purchase power of Multiples but may offer more choice as not tied to one agent, Attractions Attractions represent what a destination has two offer. There are two main types man made e.g. Thorpe Park and natural e.g. Grand Canyon attractions. The London Eye is UKs top paid attraction. Accommodation

There is a huge variety of accommodation available in the travel and tourism industry. These can be divided into two types commercial and non commercial: Non-commercial Youth hostels Local authority campsites Home exchanges Staying with friends University halls of residence Commercial Hotels and motels Guest houses Bed and Breakfasts Villa rentals Hired Caravans/motor homes

Hotels dominate the accommodation sector. There are now many chains of hotels such as Best Western who aim to provide the customer with a familiar environment at as consistent standard whatever hotel they stay in. Ancillary Service Providers When people book a holiday they may need to but extra services, these are called ancillary services: Travel agents selling travel insurance as part of a package holiday Airport car parking, provided by private companies Local taxi and minibus companies Limousine and chauffeur services for business travellers Car hire, whether arranged independently or via a travel agent Bureaux de Change in travel agents, city centres or airports

Support Services Support services are the extra services that are provided by the tourist organisations and the services provided by outside organisations to support the industry: local tourist boards providing training for hoteliers Marketing consultancies offering business advice to local tourist organisations

Employment agencies providing seasonal staff to a tourist attraction Laundry services for hotels Printing if leaflets, timetables and menus Entertainers for clubs, bars and hotels Technical support for computer systems

Chain of Distribution

The distribution chain above shows how travel and tourism services are distributed to the customer, it also shows how each area is interdependent and interrelates with each other. Direct Sale when products and services are sold directly from the tour operator to the customer.

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