ITH Chapter03

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Chapter 3Tourism


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After Reading and Studying This

Chapter, You Should Be Able to: Define tourism Outline the important international and

domestic tourism organizations Describe the economic impact of tourism Identify promoters of tourism

List reasons why people travel Describe the sociocultural impact of

tourism

Describe ecotourism


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Characteristics Year-round economic driver

Accounts for 10.2% of world GDP

7.8% of global workforce Employer of 200 million people or

7.8% of the global workforce

Spending on tourism is $72.3billion

Leading producer of taxrevenues


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Tourism Offers Greatest

Global Employment Prospects Trend factors

The opening of borders despite security

concerns An increase in disposable income and

vacations

Cheaper and more exclusive flights An increase in the number of people with

time and money to travel

More people with the urge to travel


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The World Tourism Organization

States:Tourism comprises the activities of

people traveling to and staying inplaces outside their usual

environment for not more than one

consecutive year for leisure,business, and other purposes.


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2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

Tourism Can Be Categorized by

the Following Factors: Geography

Ownership Function

Industry

Motive


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Airlines Change occurred in 1978

Purpose is to allow a free

market of competition(fare structures)

Change in companies and

the way airlines are doingbusiness


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Changes Seen Since September

11, 2001 Business travelers spend less Airlines fuel costs, pensions and

security costs are on the rise Major airlines are laying off employees Delivery of new jets is delayed Closing hubs, reservation and

maintenance centers to cut costs


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The Hub-and-Spoke System Enables passengers to travel from one

smaller city via another smaller city via a

hub Hubs are the centers for connections

around the world Benefits

Airlines can service cities at a lower cost Airlines can maximize passenger loads from

small cities, thereby saving fuel


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Figure 3-1

The Hub-and-Spoke System


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Figure 3-3

Passengers Taking a Cruise Longer Than 2 Days


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Cruise Market Segments Mass market

Middlemarket

Luxury

market


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World and Domestic

Organizations Click on the links below for more information:

World Tourism Organization International Air Transportation Organization International Civil Aviation Organization Organization for Economic Cooperation and

Development Pacific Asia Travel Association Travel Industry of America World Travel and Tourism Council
http://www.world-tourism.org/http://www.iata.org/http://www.icao.org/http://www.oecd.org/http://www.oecd.org/http://www.pata.org/http://www.tia.org/http://www.wttc.org/http://www.wttc.org/http://www.tia.org/http://www.pata.org/http://www.oecd.org/http://www.oecd.org/http://www.icao.org/http://www.iata.org/http://www.world-tourism.org/


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Economic Impact of Tourism International travelers spend about $72.3

billion on travel-related expenses in the USannually

20.8 million people are directly employed in theindustry

Travel generates $95.6 billion yearly in taxreceipts

Approximately 40 million internationaltravelers visit the US each year


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Multiplier Effect New money spent by tourists is then

re-spent by hotels and restaurants inthe community for goods and services

Leakage occurs when money must be

spent outside the community for goodsunavailable within the community


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Figure 3-5

The Multiplier Effect


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Travel Agencies Serve as a middle person

Agents use computer reservation systems

Make money on commissions charged tohotels and car rental bookings

Charge clients a fee for their services

What does the future hold for travelpromoters?


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Corporate Managers

Work within a large corporation

Can still work with travelagencies

Can also be the meeting planner


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Wholesalers Consolidated

services Airlines Other

transportationcarriers

Ground servicesuppliers Tours Sold to the public


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National Travel Offices National Offices

US now has an NTO

Private organization

Examples of other NTOs

Canada Germany

Australia


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Destination Management

Companies Service organizations Meet the needs of

their clients They sell destinations Meeting planners Incentive companies


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Reasons People Travel To experience new and different

surroundings To experience other cultures To rest and relax To visit friends and family To view, or participate in,sporting/recreational activities


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Reasons for Anticipated

Increase in Tourism Longer life span Flexible working hours Early retirement Greater ease of travel Tendency to take shorter, more

frequent trips Increase in standard of living


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Appeal of Travel Scenic beauty Pleasant attitudes of locals Suitable accommodations

Rest and relaxation Airfare cost Historic and cultural interests Cuisine Water sports Entertainment Shopping facilities Sports


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Trends in Business Travel Companies are requiring employees to take

the lowest reasonable airfare

37% of employees stay over a Saturdaynight when it will reduce the airfare 77% impose a size limit on rental cars, up

from 70%

14% regularly make employees stay ineconomy hotels such as Hampton Inn orCourtyard by Marriott


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Social and Cultural Impactof Tourism

Tourism pollution

Cultural awareness Higher levels of employment


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Ecotourism

Buzzword

Seeks to minimizethe impact oftourism

Natural environment

and native cultures


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Trends in Tourism

Ecotourism Number of tourist arrivals will

continue to increase Governments will continue to

recognize importance of tourism Increase in number of bi-lateral

treaties


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More Trends

Internet booking will increase Technology will continue to advance

Marketing partnerships and corporatealliances will continue to improve Ticket-less air travel will become commonplace Managing destinations has become a challenge Increase in number of boutique airlines Increase in use of automatic airport check-ins


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Introduction to Hospitality, Fourth Edition


Pearson Prentice Hall

Even More Trends

Continued expansion in the cruiseindustry

More alternate cruises Increased concern for health and

safety of travel and tourism

Increase in nature tourism

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