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INTRODUCTION TO TRAVEL TOURISM AND HOSPITALITY

What is Tourism? Although many of us have been "tourists" at some point in our lives, defining

what tourism actually is can be difficult. Tourism is the activities of persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business or other purposes.

Tourism can also be defined as the sum of the processes, activities and outcomes arising from the interactions among the tourists, tourism suppliers, host government, host communities, origin governments, universities, community colleges and non-governmental organisations, in the process of attracting, transporting, hosting and managing tourists and other visitors.

Tourism is a dynamic and competitive industry that requires the ability to constantly adapt to customers' changing needs and desires, as the customer’s satisfaction, safety and enjoyment are particularly the focus of tourism businesses.

TypesTourism could either be international or domestic.International tourism are classified into outbound and inbound tourism

Outbound TourismOutbound tourism is what you may be most familiar with. It involves the business of

people going from one province to other provinces, territories or countries. For example, going to Scotland from London or going from the UK to Africa or USA is considered outbound tourism.

Inbound TourismUK competes in a global market to attract tourists from the United States, Japan, Germany and many other countries. We also implement marketing campaigns aimed at attracting travellers from other parts of Europe. The tourists coming to the UK from other places are called inbound tourists.

Domestic tourismThis type of tourism is also called internal tourism. It involve staying in your own country but visiting a different city in which you do not live in.

Diference between Tourist and Excursionist

Usually excursionists spend an overall of 24 hours in a place and that is because when he/she needs to sleep goes back to his/her town, hotel or residence that it is different from the visited destination. A tourist is one that makes a tour for pleasure or culture.

An excursionist is a person who goes on an excursion. That is a same day traveller

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An excursion is a usually short journey made for pleasure; an outing etc. Excursion is dominated by two main types of activities. These are:

Cruise ship e.g in geographical region like Caribbean and Mediterranean basinsCrossborder Shopping e.g Canada/ U.S.A, U.S.A/Mexico and Western Europe.

MIGRANT

All persons moving to a new place of residence including all one-way travellers such as emigrants, immigrants, refugees, domestic migrants and nomads

SectorsThe tourism industry is divided into five different sectors:

Accommodation Food and Beverage Services Recreation and Entertainment Transportation Travel Services

Leisure

Leisure can be accurately defined as some measure of time from which a person is released from those responsibilities which normally or routinely pertain to the duties they are compelled to perform. This is most often used as an expression referring to the periods of time in which a person is freed from paid work at a job. However, leisure can also include times one is temporarily released from other compulsory, but unpaid duties, such as child care, home or other maintenance, or personal obligations and matters.

Recreation

Recreation may be defined as those activities which an individual is not compelled to do, but rather which are chosen based upon the establishment of their value as being enjoyable, satisfying, interesting, diverting, or otherwise capable of sustaining pleasure for that individual, the exact method or application of recreation varies greatly from individual to individual

The key or core elements being that the activity is beneficial by way of being amusing, stimulating, refreshing, or relaxing in some form, either physical, mental, or the combination of the two.

Common areas of recreation and leisure include:

Sports (Team sports, Individual sport)

Camping and ecologic pursuits Exercise

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Food and dining Festivals and fairs Art, crafts, and sewing Social clubs Shopping Media entertainment (Books, Magazines, Movies, Television, Music and

Theater & Drama) Collecting, antiques, and hobbies Gaming (Casinos, Computer/interactive, Gaming systems) Literature Family activities Vacations Volunteering

Most visited countries by international tourist arrival

The World Tourism Organization reports the following ten countries as the most visited in between 2006 and 2008 by number of international travelers. When compared to 2006, Ukraine entered the top ten lists, surpassing Russia, Austria and Mexico, and in 2008 surpassed Germany. In 2008 the U.S. displaced Spain from the second place. Most of the top visited countries continue to be on the European continent.

Rank   Country  UNWTORegional

Market  

Internationaltouristarrivals

(2008)[7]  

Internationaltouristarrivals

(2007)[4][7]  

Internationaltouristarrivals

(2006)[8]  

1  France Europe 79.3 million 81.9 million 78.9 million

2  United StatesNorth America

58.0 million 56.0 million 51.0 million

3  Spain Europe 57.3 million 58.7 million 58.2 million

4  China Asia 53.0 million 54.7 million 49.9 million

5  Italy Europe 42.7 million 43.7 million 41.1 million

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6 United

KingdomEurope 30.2 million 30.9 million 30.7 million

7  Ukraine Europe 25.4 million 23.1 million 18.9 million

8  Turkey Europe 25.0 million 22.2 million 18.9 million

9  Germany Europe 24.9 million 24.4 million 23.5 million

10  MexicoNorth America

22.6 million 21.4 million 21.4 million

International tourism receipts

In 2008, there were over 922 million international tourist arrivals, with a growth of 1.9% as compared to 2007. International tourism receipts grew to US$944 billion (euro 642 billion) in 2008, corresponding to an increase in real terms of 1.8% on 2007. When the export value of international passenger transport receipts is accounted for, total receipts in 2008 reached a record of US$1.1 trillion, or over US$3 billion a day.

The World Tourism Organization reports the following countries as the top ten tourism earners for the year 2008. It is noticeable that most of them are on the European continent, but the United States continues to be the top earner.

Rank   Country  UNWTORegional

Market  

InternationalTourismReceipts

(2008)[7]  

InternationalTourismReceipts

(2007)[4][7]  

InternationalTourismReceipts

(2006)[8]  

1  United StatesNorth America

$110.1 billion $96.7 billion $85.7 billion

2  Spain Europe $61.6 billion $57.6 billion $51.1 billion

3  France Europe $55.6 billion $54.3 billion $46.3 billion

4  Italy Europe $45.7 billion $42.7 billion $38.1 billion

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5  China Asia $40.8 billion $37.2 billion $33.9 billion

6  Germany Europe $40.0 billion $36.0 billion $32.8 billion

7 United

KingdomEurope $36.0 billion $38.6 billion $33.7 billion

8  Australia Oceania $24.7 billion $22.3 billion $17.8 billion

9  Turkey Europe $22.0 billion $18.5 billion $16.9 billion

10  Austria Europe $21.8 billion $18.9 billion $16.6 billion

International tourism expenditures

The World Tourism Organization reports the following countries as the top ten biggest spenders on international tourism for the year 2008. For the fifth year in a row, German tourists continue as the top spenders

Rank   Country  UNWTORegional

Market  

InternationalTourism

Expenditures(2008)[7]  

InternationalTourism

Expenditures(2007)[7]  

InternationalTourism

Expenditures(2006)[9]  

1  Germany Europe $91.0 billion $83.1 billion $73.9 billion

2  United StatesNorth America

$79.7 billion $76.4 billion $72.1 billion

3 United

KingdomEurope $68.5 billion $71.4 billion $63.1 billion

4  France Europe $43.1 billion $36.7 billion $31.2 billion

5  China Asia $36.2 billion $29.8 billion $24.3 billion

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6  Italy Europe $30.8 billion $27.3 billion $23.1 billion

7  Japan Asia $27.9 billion $26.5 billion $26.9 billion

8  CanadaNorth America

$26.9 billion $24.7 billion $20.5 billion

9  Russia Europe $24.9 billion $22.3 billion $18.2 billion

10  Netherlands Europe $21.7 billion $19.1 billion n.a.

Most visited cities

Top 20 most visited cities by estimated number of international visitors by selected year

City CountryInternational

visitors(millions)

Year/Notes

Paris  France 15.62007 (Excluding extra-muros visitors)[10]

London United

Kingdom14.8 2008[11]

Bangkok  Thailand 10.842007 (External study estimation)[12]

Singapore  Singapore 10.1 2008[13]

New York City

 United States 9.5 2008[14]

Hong Kong  China 7.94 2008 (excluding Mainland

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China)[15]

Istanbul  Turkey 7.05 2008[16]

Dubai United Arab

Emirates6.9 2007[17]

Shanghai  China 6.66 2007[18]

Rome  Italy 6.122007 (External study estimation)[12]

Seoul  South Korea 4.992007 (External study estimation)[12]

Barcelona  Spain 4.72 2008[19]

Madrid  Spain 4.64 2008[20]

Mecca  Saudi Arabia 4.5 2007[21]

Kuala Lumpur

 Malaysia 4.42007 (External study estimation)[12]

Beijing  China 4.4 2007[22]

Moscow  Russia 4.1 2008[23]

Prague  Czech Republic 4.1 2008[24]

Amsterdam  Netherlands 3.66 2008[25]

Vienna  Austria 3.53 2008[26]

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Class/ Group work

Students should consider factors affecting global tourist flows from one region toanother making reference to the characteristics of the region and the factors whichthey consider importance when determining the level and type of tourism. Compareand contrast your findings and justify your conclusion

DEMAND SIDE OF TOURISM

Tourism Demand

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This can be defined as :1) The total number of persons who travel, or wish to travel, to use tourist

facilities and services at places away from their places of work or residence.2) the relationship between individuals’ motivation to travel and their ability to

do so.

Element of Tourism Demand

1) Effective or actual demand – number of people participating in tourism, commonly expressed as the number of travellers. This is usually measured by tourism statistics e.g departures from countries and arrivals at destination

2) Suppressed Demand – this is the proportion of the population who are unable to travel because of circumstances e.g lack of purchasing power or holiday entitlement.

3) No Demand – this is a distinct category for those members of the population who have no desire to travel and those who are unable to travel due to family commitment or illness.

Determinant of Tourism Demand

1) Economic Determinant-Disposable Income-GNP per capita income-Private Consumption-Cost of living-Tourism prices-Transportation cost-Cost of living in relation to destinations-Exchange rate differentials-Relative prices among competing destinations-Promotional expenditures-Marketing effectiveness-Physical distance

2) Social- psychological determinantAttitude about destinationTravel preferenceBenefit soughtAmount of leisure timePaid vacationLife spanCultural similaritiesAffiliationsPast experience

3) Exogenous Determinant

Economic growth and stability

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RecessionTechnological advancementRestrictions, rules and lawsBarriers and obstaclesWar and terrorismEpidemicPolitical and social environment

WHY DO PEOPLE GO ON HOLIDAY? Motivation

What is Motivation?Is a state of need, a condition that exerts a push on the individual towards certain type of action that are seen as likely to bring satisfaction.This means that demand is about using tourism as a form of consumption to achieve a level of satisfaction for an individual. It also involve understanding of their behaviour and actions and what shape these human characteristics

MASLOW’S HIERARCHY OF NEEDS

Best fitted for you (TOURISM) – SELF ACTUALIZATIONSelf-fulfillment: doing what is Self-respect, prestige, status – EGO NEEDS(TOURISM)

SelfActualization)

- Ego-needs

Belonging/Social

Safety

PhysiologicalNeeds

Maslow’s Hierarchy of Needs

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Affection, belonging to a group, being accepted- SOCIAL NEEDS(TOURISM)

Savings, good wages, stability, personal security, insurance – SAFETY NEEDS

Food, drink, love Shelter - PHYSIOLOGICAL NEEDS

CLASSIFICATION OF TOURISTS

THERE ARE VARIOUS CLASSIFICATION GIVEN BY MANY RESEARCHERS. However, we shall be looking at classification by Cohens (1972) and Plog

Cohen (1972) Classification

• The recreational tourist for whom the emphasis is on physical recreation• The diversionary tourist who seeks ways of forgetting their everyday life at home• The experiential tourist who looks for authentic experiences• The experimental tourist where the main desire is to be in contact with local people• The existential tourist who wants to totally immerse themselves in the culture and lifestyles of their vacation destination.

Plog (1977) Classification

Plog sought to link personality traits directly with tourist behaviour, and dividedpeople up into psychocentrics, and allocentrics.

Psychocentric Are less adventurous, inward-looking people. They tend to prefer the familiar and have preference for resorts that are already popular. Allocentrics, on the other hand, are outward-looking people who like to take risks and seek more adventurous holidays.

Class Discussion

1) Discuss relationship between Tourist classification, Tourism Flows, and Geographical location

2) Recognise the imbalance of tourist flow pattern between developed and developing countries

Leiper’s Model

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There are 5 key elements of a tourism system (depending on which model you use): Leiper's (2004) model consists of:

1. Departing Travellers

2. Traveller Generating Region

3. Transit Route Region

4. Tourist Destination Region

5. Returning Travellers

The first is the tourist (the human component), the next 3 components are geographical and organisational. This relate to transport, tourist activities and the tourism industry which offers services, goods and facilities for tourists. The last is is also the tourist

Traveller Generating Regions

According to Leiper, "TGRs are the places where trips begin, where people who will later be described or counted as tourists start their journey. The TGRs for the tourism system of the Americas are countries of the same Americas, mainly from North America (United States, Canada and Mexico) and South America (WTO, 2000). This kind of travel is called intraregional by the World Tourism Organization.

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Intraregional tourism "refers to arrivals of residents of any country of a particular region to any other country of the same region" (WTO, 2000, p. 77).

The second biggest TGR to the Americas is Europe with 15,901,000 international tourist arrivals. The most significant sub regions were Western, Northern and Southern Europe with 7,161,000, 5,064,000, 2,236,000 international tourist arrivals respectively (WTO, 2000). The WTO calls this kind of tourism long-haul travel.

Long-haul travel "refers to arrivals of residents of countries of one particular region to any country of any other region than their own" (WTO, 2000, p.77).

Leiper presents the following factors that determine the size and characteristics of a traveller flow from a TGR:

Population size Gross economic prosperity, Distribution of income and wealth, Spare time, Demographic characteristics, Motivations as tastes and preferences, Constraints on travel Transport facilities, fares and other prices, Exchange rates, Promotion

Transit Routes This is an intermediate zone where the principal travel activity of tourism occurs, distinct from visit activity in destinations. The factors that contribute to the growth of a TR must increase its efficiency. An efficient TR is a path where access is easy for large numbers of travellers"

Leiper mentioned the following factors which contribute to the growth of TR:

Travel time, Fares and other travel costs, Availability of a carrier and other transport facilities, Capacity, Frequency of services on public carriers, Changes in transit, Discomfort, Reliability, Attractions around the way, and Stopover points

The mentioned factors by Leiper for the growth of tourism flows in TRs relate more to the infrastructure and technology environments at the region, rather than to the social and political to mention a couple. There are some other environments can be inferred such as geography, which affect the travel time. Nowadays another two environments are relevant to consider in TRs:

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Security (terrorism threats) Health (SARS in Singapore, Swine flu etc)

Tourist Destination Regions

TDRs according to Leiper are places where "a person chooses to stay a while in order to experience some feature or characteristic hence become temporarily, tourists and as a consequence, counted in statistical surveys or estimates as tourists.

Some features and conditions are presented by Leiper on how TDRs become popular such as:

Attractions, Accessibility, Tolerance, Security, Life-support and comfort systems, Cost and benefit advantage Information diffusion

As it can be observed some factors relate to the normal service and product offering of tourism enterprises or the infrastructure and uniqueness of the destination. On the other hand, it is observed that environments are mentioned such as security. Security can cover such issues like health, terrorism, crime and political stability.

According to the WTO the main TDRs for the Americas were North, Caribbean and South America with 73.9%, 12.9% and 10.8% respectively for 1995 international tourist arrivals (2000). As mentioned before the international tourist arrivals are through intraregional travel mainly, 76.9%, and only 23.1% from long-haul travel (WTO, 2000).

Class/ Group Work

1) To what extent are types of tourists attracted to different destinations, considering variety of destinations to underpin your answer and to demonstrate social, economic and environmental impacts which different types of tourists have on a variety of locations.

2) Students , working in pairs, should compare and contracst different needs of both leisure and business travel. Comment on the impact of each category on a destination

SUPPLY SIDE OF TOURISM

Tourism supply components are classified into four broad categories as follows:

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1) Natural Resources and environment: The natural resources that any area has available for the use and enjoyment of visitors. This include air, climate, landforms, terrains, bodies of water, beaches, natural beauty, water supply for drinking, sanitation etc. These constitute attraction to the visitors

2) The Built Environment : This is human created. It include the infrastructures and SuperstructuresInfrastructures consist of all underground and surface developmental construction such as water supply systems, sewage disposal systems, gas line, electrical lines, drainage systems, roads, communication networketcSuperstructure include facilities constructed primarily to support visitation and visitor activities e.g airports, railroads, roads, drives, parking lots, parks, clock facilities, stores, placers of entertainment, shopping centres, museums, places of entertainment etc.

3) Operating Sector: This include transportation sector- airlines, cruise lines etc accommodation sector and food service sector, attractions etc

Types of AccommodationsHotelsResort Hotels – situated in attractive surroundings. It provides mix of services like entertainment and recreational activities for travellers and vacationersCommercial Hotels are usually downtown for the business traveller and vacationersMotor Hotel is primarily for tourist travelling by car. It is very popular in USA, Canada, Mexico etc.Other examples are Marina Hotels, Airport Hotels etcCondominium Apartments

Is a multiunit building with units owned by individuals. It is used by their owner for their enjoyment or rent it to tourists for all or part of the year

TimesharingIs a technique for multiple ownership and/or use of resort and recreational properties

Types of Transportation

AirMotor coachShip and BoatRailTaxis

3) Hospitality and Cultural Resources – The finest physical facilities will be worthless if the tourist feels unwelcome Therefore, the following are suggestions on how to improve hospitality:

Welcoming signs and reception area for visitors at the airport Public enlightment programme for the citizen on tourism Structured courses on tourisms in schools, stores, hotels, stations etc Good attitude e.g greeting of visitors, providing information, being

helpful and cooperative etc

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Butler’s destination LifecycleIn discussing tourism, the term destination becomes ubiquitous; however, it is not always clear what a destination is.  Is it a hotel, a city, a region, or a country?  Bierman (2003, P.2) defines a destination as “a country, state, region, city or town which is marketed or markets itself as a place for tourists to visit.”  Regardless of what geographic scope one assigns to the term destination, a destination is a product that must be marketed to its consumers. 

Like most products, destinations have a lifecycle. Butler proposed a widely-accepted model of the lifecycle of a tourist destination.  The basic idea of Butler’s 1980 Tourism Area Life Cycle (TALC) model  is that a destination begins as a relatively unknown and visitors initially come in small numbers restricted by lack of access, facilities, and local knowledge, which is labeled as Exploration in Figure below.

As more people discover the destination, the word spreads about its attractions and the amenities are increased and improved (Development).  Tourist arrivals then begin to grow rapidly toward some theoretical carrying capacity (Stagnation), which involves social and environmental limits.  The rise from Exploration to Stagnation often happens very rapidly, as implied by the exponential nature of the growth curve.  The possible trajectories indicated by dotted lines A-E in Figure 1 are examples of a subset of possible outcomes beyond Stagnation.   Examples of things that could cause a destination to follow trajectories A and B toward Rejuvenation are technological developments or infrastructure improvements leading to increased carrying capacity.  Examples of things that could cause a destination to follow trajectories C and D are increased congestion and unsustainable development, causing the resources that originally drew visitors to the destination to become corrupted, or no longer exist.  The trajectory in Figure 1 of most interest to this research is trajectory E, which is the likely path of a destination following a disaster or crisis. 

It is also important to point out that the Law of Diminishing Returns could cause a destination to follow trajectories similar to those of C or D, and that the concepts and practices of destination recovery, as applied to destinations recovering from a disaster, could easily be applied to a destination in Decline as a result of the Law of Diminishing Returns. 

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Sustainable Tourism Development

At the local level, sustainable development is achieved by steering local development activities to simultaneously achieve three objectives:· Increased local social welfare;· Greater, and more equitably distributed, local economic wealth; and· Enhanced integrity of local ecosystems.· Heritage preservation requirements for site developments and building designs;· Programs to exchange land and development rights from non-suitable to suitabledevelopment areas;· Private heritage and green space stewardship programs;· Tax benefits accruing to property owners exercising sustainable development practices;· Tourism taxes and development fees to support construction and maintenance ofrequired infrastruct Tourist businesses can make a significant voluntary contribution to resolving the socialcosts of tourism by:· Providing local resident employment and training opportunities, including in traditionaltrades and crafts;· Establishing purchasing guidelines that favor local goods and services procurement;· Making donations and investments in local recreational facilities, parks, culturalfacilities and security operations (which also serve to improve local tourist amenities aswell);· Establishing local profit-sharing arrangements. ure.

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Class/Group work

Students should identify and examine a location and discuss the level of development in relation to the main component of destination. Trends of development should be identified and how these may impact on future development. The destination life cycle should be used to demonstrate the answer

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TRANSPORT FOR TOURISM

AIR TRAVEL

Benefits: There are a huge range of both social as well as economic benefits to flying but possibly the main thing that makes flying more advantageous and favorable to any other mode of transport is the amount of time it saves.  

o    The valuable resource - Time: Time has become one of our most treasured resources, mainly in business, however if you have a limitation on time factor while holidaying then flying should be a preferred choice of traveling to and from your destination.

o    Experience all the highlights: Most of the times tourists have to suffer long and                           mostly dull journeys in order to experience the highlights of a place. This entire time is a complete wastage and we all are very well aware of the fact that time is money. Best is to travel by air and save the time for later entertainment.  

o    Get the full picture from above: Flying mainly in helicopters allows tourists to experience place in its totality. In mountainous areas like Himalayas, Western Cape, Alps and KwaZulu Natal, the views from above are tremendously beautiful and unbeatable in their magnificence.

o    Added Comfort: One of the best advantages of flying is comfort that it offers. It gives enough space to stretch oneself. Also it's possible to move freely around large airplanes.

o    Cheap modes of Transport: Because of the competitive nature of aviation world, cheap flights tickets or discounted flights are on the rise. Because of these inexpensive flights at certain times of the year flying has become much cheaper than driving by a huge margin.

o    Helps maintain long distance relationships: Flying is the only real option to keep in touch with those who live on the other end of the world. Imagine how painful it would have been if there was no way of seeing our loved ones in far off places!

o    Trustworthy: All flights obey strict operational schedules so they are generally considered as one of the most trustworthy and reliable modes of transport in today's world.

o    Great economic advantages: Aviation sector generates an almost 32 million jobs annually and contributes almost 7.5% of the world's GDP, which is a huge profit. Also, it being the fastest worldwide transport system is mandatory for global tourism and business, the key factors of economic growth.

So, these are some of the few great benefits of air travel. The invention of plane by Wright Brothers will take such a long journey was never thought by anyone. At last, its wonderful and magnanimously fantastic effort by human.

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Charter and Schedule Flights

Charter flights are organised by tour operators to supply cheap available transport to their holiday destinations. Charter flights tend to run for short seasons, summer months to the summer sun holiday destinations and winter months to Ski or winter sundestinations. They also tend to operate on a weekly rotation and are generally only sold as one or two week durations, however some operators will sell odd durations and one ways close to thedeparture date depending upon their availability. The seats they sell are the operators excess availability or spare seats.The rules for charter flights are very strict once booked they can't be changed amended or canceled without a charge or cancellation charge of up to 100 percent.

Charter airlines are like bus companies who supply the equipment and staff to the tour operators who organise the route and also the selling of the seats on the aircraft. Small operators that can't afford to charter a whole plane will often group together with other small operators and share the chartering of an aircraft for their chosen route.

Charter fares tend to vary depending on supply and demand, to keep the costs to a minimum tour operators will always try and fill their aircraft and will discount to the extent of selling belowcost to fill their allocations. Prices can soar at certain times of the year when many people want or need to travel e.g.. school holidays, Bank holidays and Christmas are all popular times. Operators that have availability when most are full will increase their prices.

Scheduled flights are organised by Scheduled airlines who look after the whole process . A scheduled flights operate throughout the year and are given fixed or "scheduled" departure times. The cost of a scheduled ticket is calculated over the year and will take into consideration factors such as time of year and demand, because scheduled flights run all year the don't expect to fly full all year, this means that scheduled fares must be higher to pay for the empty seats.

Scheduled airlines do not discount last minute like charter flights but will tend to offer restricted fares or advance purchase special offers. They also supply a proportion of their seats to "consolidators" who take on the administration from the airlines and impose heavy restrictions in exchange for fares below those the airlines publish. These fares are known as consolidated fares.

Travel Options: Car, Air, Sea, or Rail?Once you've narrowed down where to go for your romantic getaway, you need to decide how to get there, based on how much time you have, your budget, and your interests.

Travel by Car: Enjoy the journey, not just the destination! Travelling by car has several benefits: in addition to being relatively economical, it also gives you the flexibility to stop when you like. You can take in a romantic picnic by a lake, stop to gaze at spectacular vistas, or drop in for a snack at a little roadside cafe. You might

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even decide that you don't want to make solid plans... you'll take your chances and stay at cosy inns you find along the way! The disadvantages of car travel are primarily the time it takes to get anywhere, plus the fact that someone's going to have to do the driving! Some people simply find that long car trips aren't to their liking. Travel by Air: Can't wait to get to your destination? Flying is usually the fastest way to get there, so that you can maximize your "vacation time" and get right down to relaxing. Disadvantages include cost, limited flexibility with regards to flight times and dates, restrictions on the amount of luggage you may carry, and potential issues such as lost luggage or delayed / cancelled flights.

Travel by Sea: If you have the time and enjoy a leisurely holiday, a cruise is something to consider. Cruise ships are usually outfitted with all sorts of amenities to hold your attention. These may include restaurants, golfing, a pool & gym, various entertainment venues, and a variety of shops. Some of the disadvantages of sea travel include limited flexibility (you can't just hop off the ship and go exploring!); perhaps less privacy than some couples may want if they're seeking a romantic getaway; and cost.

Travel by Rail: The disadvantages include being restricted by the train schedule (both date / times as well as where the train travels); plus cost can be a factor. However, breathtaking scenery is often why people choose to travel by train. You can sit back and relax in each other's company, dine, read, take a nap... and then disembark at various stops along the way to explore different cities, towns, and attractions. Some rail tours or trips include overnight accommodation, whether it's a sleeping bunk on the train or a night at a hotel. Ask for details.

Class/Group Work

Students should compare and contrast the changes that have taken place within a charter and a scheduled airline operation, using examples to underpin their findings.

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TOUR OPERATIONS

WHAT ARE INTERMEDIARIES?

The term intermediaries can be defined as any dealer who acts as a link in the chain of distribution between the company and its customers.In the tourism industry, travel agents, tour operators etc. are considered the intermediaries (distributors). Their main task is to bring buyers and sellers in the field together and reduce transaction and supply/ownership costs between buyer and seller, instead of completely eliminating an intermediary (such as a distributor).

Benefits of Tourism Intermediaries

For the producer:

They are able to sell in bulk (for example: hotels) and might be able to transfer a certain risk to the tour operator

Depending on the contracts made reduce promotion costs

For the Consumer: Avoids search and transaction costs (by purchasing inclusive tour) Gain from specialist knowledge of tour operator Often gain most from lower prices

Disadvantages of Tourism IntermediariesUse of intermediaries by producers, such as hotels, will result in the loss of margins and in the loss of influence in the distribution process.

For the consumerChoice may be reduced and prices increase, especially with the further concentration and consolidation of tourism intermediaries.

Types of tour organizer

Tour wholesalerA tour wholesaler can be defined as intermediaries between supplier in the travel industry and consumers that puts together the services of airlines or other transport carriers, ground service suppliers and other travel needs into a tour package which is sold through a sales channel, such as a retail agent, to the public. The tour wholesaler is involved in developing, preparation, marketing and reservations of inclusive tours and individual travel packages. They provide the retailer with a wide selection of tours to a large number of destinations at varying costs, for varying duration and in various seasons. (Lubbe 2000)Tour wholesaler can be divided into three kinds: (Lubbe 2000)

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The independent tour wholesaler> combines both transportation and ground services into tours or packages and sells them through travel agencies to individual or group travellers. The airline working in close co-operation with tour wholesaler> Some airlines have wholesaling divisions that put together tours.example: British Airlines The retail travel agent who packages tours for its clients> Some retail travel agents prepare individual or/and group tours which they market themselvesexample: DesigNZ on travel

Tour operatorIs a company or person that purchases the different items that make up an inclusive holiday in bulk, combines them together to produce package holidays and then sells the final products to the public either directly or through travel agencies. The price of the package is usually lower than when the customer would have purchased the individual components directly from the supplier.In the chain of distribution, tour operator can therefore be seen as the wholesaler of the travel industry, buying from its principles and reselling through its retailers, the travel agencies. The main distinction between tour wholesaler and tour operator can be seen in the fact that an operator may actually own the vehicles used on a tour, employ the driver and escort and own some of the facilities. A wholesaler leaves the operation of the tour to individual suppliers such as the bus or coach company. (Lubbe 2000)

Tour operators can be divided into two main kinds:

1. Mass market tour operatorsArrange travel for the majority of holidaymakers travelling on inclusive tours They can sell holidays very cheaply because they buy services in volume from the suppliers Mass market tour operators produce holiday packages with wide public appeal usually visiting well-known and highly developed resorts A typical product selection might be the following: >Summer sun (Mediterranean); >Winter sun (Canary Islands);>Ski (Three Valley in France);>Long haul (Florida);>Short breaks (Rome); examples: (http://www.airtours.co.uk) (http://www.tui.de)

2. Specialist tour operatorsDeal with niche products and markets focus might be on a particular activity, travel to a geographic area or a certain type of holiday maker Specialist tour operators prefer regular flights to charter flights; try to keep the groups small and don’t compete with the price example: Olympia Lentomatkatoimisto in Finland

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A comparison of mass and specialist operators

Objectives and activities

Mass tour operatorSpecialist/ alternative tour operator

Product 

>standardised product>highly packaged offering>many resort activities pre-arranged

>offer “unique” locations>independent activities on individual basis offered in resort

Price 

>low to medium price range>based on high level of sales>frequent sales promotions

> higher prices  

Promotion 

>use of brochure to appeal to target market> company brand and actual holiday product promotion> information tightly organized, uniform for all destinations

> use of brochure to promote the company product, the country>differentiating aspects of a unique image> more general resort information

(Lubbe 2000)page up Vertical integration strategies

Integration strategies as means of expansion strategiesTour wholesaler or tour operator can strengthen their market position by integration. Integration takes place whencompanies merge or one company buys another. There are two main forms of integration:

1. Vertical integrationIt takes place when two companies of different levels on the distribution chain merge. Examples could be, when a supplier merges with a wholesaler/tour operator or a tour wholesaler merges with a retail agent.We speak of backward vertical integration, when a wholesaler merges with or buys an airline or with a hotel. With this move a greater control over the source of supply is desired. We speak of forward vertical integration, when a tour wholesaler merges or buys a travel agency. In this case greater control over the distribution network is wanted.(Lubbe 2000) 2. Horizontal integrationIt means that tour wholesalers/ tour operator merges on the same level of distribution. For example a tour wholesaler buys another tour wholesaler to improve their market share and reduce competition. In general, horizontal integration always leads to economics of scale, in functions such as human resources, purchasing, and thus to cost savings and price reductions. Through cost savings an organisation may become more cost effective, allowing them to develop a better range of products and to achieve better quality control.(Lubbe 2000)

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Types of toursTours can be classified into a number of categories:package tours escorted tours hosted tours all-inclusive tours Segmentation of the inclusive tour market

By mode of transport (air/rail/sea) By distance tothe destination (long haul/ short haul By length of holiday (short break/ long holiday) By travel season (summer/ winter)

The package tourA pre-arranged combination of not fewer than two of the following tourism services when sold or offered for sale at an inclusive price and when the service covers a period of more than 24 hours or includes overnight accommodation:transportation – air, sea, road, rail etc to/from destination accommodation – hotels, guest houses, cottages etc. other tourism services such as transfers between air/sea port and accommodation at destination, accounting for a significant portion of the tour package Often package holiday can include the following additional elements:meals – breakfast, half board or full board (bb; hb; fb) Supplementary services – events, city sight seeing, theme evenings Entertainment – animation etc. Insurance – and other ancillary services

Advantages of a package tour:

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Locating information about a destination reduced, consumer selects a tour from a brochure created by tour wholesaler

Transaction costs of making reservations with different suppliers are reduced Passed on benefits and discounts through bulk buying from tour wholesaler to

final customer “No hassle” element, everything is arranged for the traveller Legally the tour operator adheres with his name (EU consumer protection

policy)

Disadvantages of a package tour: Overwhelming choices and varieties of tour may cause difficulties to find the

“right” tour for customers Having to cope with a fixed itinerary Some tour wholesaler now allow tourists to customise their packages, either

by designing shorter tours and allowing travellers to combine them together in various ways.

Escorted toursThis kind of tour is a group tour which uses the services of a professional tour manager. The escorted tour is a structured programme of sightseeing, meals, transportation and accommodation. The professional tour manager is in charge of all arrangements. Special-interest tours are generally escorted tours.

All-inclusive toursAn all-inclusive tour includes the coverage of all costs in the unit price except for personal items. This usually means the coverage of all air and land arrangements such as transportation, accommodation, meals and sight seeing.

Incentive tripJourney for the staff of an enterprise or for the members of a professional group to reward or encourage them. The costs of incentive trips are largely or partially borne by the hosts.

Other toursThere exist many other types of tours, for example study tours or sales tours just to mention a few.

The 10 biggest European tour wholesaler/ operator in 2002

Ranking Companycountry of origin

Turnover ( in Mio Euro)

clients(in thousand)

1. Germany 12416 n.a.

2. Germany / UK 8062 12233

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3. UK 7017 4800

4. Germany 4660 4440

5. UK 3471 3600

6.Switzerland/ France

2542 n.a.

7. Spain 2027 n.a.

8. France 1744 1534

9. Switzerland 1435 2372

10. Germany 1115 1290

(source: fvw documentation “European tour operator 2002”)

THE ROLE OF THE RETAIL TRAVEL AGENCY

The main task of travel agents is to supply the public with travel services. They do it on behalf of their suppliers, also called principals. Basically we can say that a travel agency operates as a broker, bringing buyer and seller together, for the other suppliers of travel such as hotels, car rentals, ground operators and tour companies.

Travel agents can be categorized in several ways with the usual distinction being drawn on the basis of size:

Multinationals with offices worldwide: Thomas Cook National multiples with offices throughout a country: Suomen matkatoimisto ; Area, ; Regional multiples or miniples with a number of offices but concentrated in one region of a country: Töölön matkatoimisto; Independents with anything from one to a handful of outlets: Helin Matkat . A travel agency may offer every possible service or specializes in a certain type of business. In that sense travel agencies can be divided into different types according to the services they offer. Here are some examples:

Full-service travel agencyOffering all services and products related to international and domestic travel

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is equipped to handle all types of travel such as holiday and business travel on individual or group based. Smaller agencies situated in residential areas tend to concentrate on leisure travel and larger agencies serving commercial areas will concentrate on business travel

Corporate/ Business travel agencySpecialize solely in servicing the travel needs of the business or corporate clients, in that sense they deal with work-related and incentive travel

In-house travel agencyDiffers from the corporate travel agency in the sense that they work with only one corporate account doing mainly business travel but also handling the leisure side for corporate clients

Speciality agenciesresult of specific market needs, serving the needs of market segments such as senior citizens, incentive groups or adventure travellers

Travel agencies and the use of technology

The following technology systems can be used in travel agencies depending on their size and structure:

Reservations systems (front-office systems): refer to systems used to confirm the sale of travel products electronically. The computerised reservations systems (CRS) are used here. Examples:Computerized reservation systems (CRS`s)Its mainly a travel suppliers own computerised reservation system It was used first by airlines and later by tour operators as a means of distribution, monitoring, and control of back office operations

Global distribution systems (GDS) were developed from CRS`s is a system used by travel agents to book airline seats and accommodation for their customers and which connect several CRS`s There are four dominant GDS`s – Amadeus, Sabre, Worldspan, and Galileo Sabre and Worldspan originating in the US, Amadeus and Galileo are owned by numerous European airlines

Class/Group Work

Using organization of your choice, examine the roles of the tour operator and the travel agent, considering the advantages and disadvantages of the type of distribution channels used. Examine the role of tour operator on destination

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PUBLIC SECTOR INVOLVEMENT IN TOURISM

The World Tourism Organization (UNWTO), based in Madrid, Spain, is a United Nations agency dealing with questions relating to tourism. It compiles the World Tourism rankings. The World Tourism Organization is a significant global body, concerned with the collection and collation of statistical information on international tourism. This organization represents public sector tourism bodies, from most countries in the world and the publication of its data makes possible comparisons of the flow and growth of tourism on a global scale. The official languages of UNWTO are Arabic, English, French, Russian and Spanish.

] Organizational aims

The World Tourism Organization plays a role in promoting the development of responsible, sustainable and universally accessible tourism, paying particular attention to the interests of developing countries.

The Organization encourages the implementation of the Global Code of Ethics for Tourism, with a view to ensuring that member countries, tourist destinations and businesses maximize the positive economic, social and cultural effects of tourism and fully reap its benefits, while minimizing its negative social and environmental impacts.

UNWTO is committed to the United Nations Millennium Development Goals, geared toward reducing poverty and fostering sustainable development

Structure

General AssemblyThe General Assembly is the supreme organ of the Organization. Its ordinary sessions, held every two years, are attended by delegates of the Full and Associate Members, as well as representatives from the Business Council. It is the most important meeting of senior tourism officials and high-level representatives of the private sector from all over the world.

Regional Commissions Established in 1975 as subsidiary organs of the General Assembly, the six Regional Commissions normally meet once a year. They enable member States to maintain contact with one another and with the Secretariat between sessions of the General Assembly, to which they submit their proposals and convey their concerns. Each Commission elects one Chairman and its Vice-Chairmen from among its Members for a term of two years commencing from one session to the next session of the Assembly.

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Executive Council The Executive Council's task is to take all necessary measures, in consultation with the Secretary-General, for the implementation of its own decisions and recommendations of the Assembly and report thereon to the Assembly. The Council meets at least twice a year. The Council consists of Full Members elected by the Assembly in the proportion of one Member for every five Full Members, in accordance with the Rules of Procedure laid down by the Assembly with a view to achieving fair and equitable geographical distribution. The term of office of Members elected to the Council is four years and elections for one-half of the Council membership are held every two years. Spain is a Permanent Member of the Executive Council.

Committees World Committee on Tourism Ethics Programme Committee Committee on Budget and Finance Committee on Market and Competitiveness Committee on Statistics and the Tourism Satellite account Sustainable Development of Tourism Committee Committee on Poverty Reduction Committee for the Review of Applications for Affiliate Membership

SecretariatThe Secretariat is led by Secretary-General ad interim Taleb Rifai of Jordan, who supervises about 110 full-time staff at UNWTO's Madrid Headquarters. He is assisted by the Deputy Secretary-General. These officials are responsible for implementing UNWTO's programme of work and serving the needs of Members. The Affiliate Members are supported by a full-time Executive Director at the Madrid Headquarters. The Secretariat also includes a regional support office for Asia-Pacific in Osaka, Japan, financed by the Japanese Government.

Functions of National Tourism Organization (NTO):

To promote and develop tourism.To establish tourism infrastructures in Bangladesh.To provide facilities to undertake measures and carry out all kinds of activities connected with tourismTo acquire, establish, construct, arrange, provide and run hotels, restaurants, rest houses, picnic spots, camping sites, theatres, amusement parks and facilities for water skiing and entertainment.To establish institutes for instruction and training of potential tourism personnel.To bring out tourism publication.

Class/ Group Work

Identify the structure, aims and objectives of your government’s involvement in tourism and assess the role of the NTO in achieving these objectives

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