Toursim management #3
Overview of Tourism
Transportation
Operating Sectors of the Tourism Industry
Other
Transportation
Road
Rail
Water
Motor
Bike
Auto
Bus
Vehicles
Used for Accommodation
Inland
Maritime
Air
Charter
Private
Scheduled
Charter
and
Tour Operator
Scheduled
Rental
Privately
Owned
Truck
Camper
Motor
Home
Travel
Trailer
Tent
Trailer
Other
Commercial
Private
Commercial
Private
Private
Snowmobiles
Foot
Bicycles
Horse
Drawn
Vehicles
Aerial
Tramways
and Ski Lifts
Charter
Scheduled
Commercial
Charter
Scheduled
Passenger Transportation Structure
Urgent Transportation Problems
1. Congestion
2. Safety and security
3. Environmental damage
4. Seasonality
Airline Industry
World airline industry carries over 2.4 billion passengers per year.
The U.S. airline industry in 2010:
Employed 550,000 people
Records revenues of over $150 billion
From 2001-2005 and 2008, U.S. carriers suffered large losses. A weak air transportation system affects the rental car business, hotels, and attractions.
Low-cost carriers were growing.
After Covid-19, airlines are struggling with occupancy
Rail Industry
Reached its peak volume in the U.S. in 1920
Major railroads want out of the passenger service business (except commuter service).
Passenger service depends on Amtrak.
The situation is similar in Canada with passenger service dependent on VIA Rail.
Passenger rail service is much more important outside of North America.
Efficient, economical, high speed trains provide an alternative to air travel.
Very common way of transporting in Europe
Motor coach Industry
Intercity bus passengers tend to be lower income non-business travelers who are very price sensitive.
Intercity bus service is becoming less important due to increased auto ownership and aggressive airline pricing.
Bus travel is characterized by:
More travel to and from rural areas and small towns than other modes of transportation.
Lower average ticket revenues than other modes.
Intercity bus industry is a small-business industry with a great deal of flexibility.
Many bus companies focus primarily or exclusively on charter, tour or commuter operations.
Automobile
Most popular mode of travel in the world because of affordability, flexibility, and convenience
In the U.S., the United States Travel Association reports that 80% of person-trips are made by auto.
Rental car industry growing in importance
Grosses approximately $25 billion per year
Cruise Industry
Fastest growing segment of the travel industry
Since 1980 had average annual growth rate of about 7.2%
Expanding fleets
Adding new ports of call
Seeing consolidation
Served by the Cruise Lines International Association
Other related areas of Hospitality
Operating Sectors of the Tourism Industry
Accommodations Structure
The Lodging Industry
World hotel room inventory grows about 2.5%/year.
Occupancy rates average about 65% overall.
72% of the world’s hotel rooms are located in Europe and North America. Europe has 45% of rooms.
In 2009, the U.S. lodging industry generated $127.2 billion in sales, numbered 50,800 properties, 4.76 millions rooms, and recorded profits of $16.0 billion.
You can check www.ahla.com for more details
Situation during and after Covid 19 is questionable
Resorts and Timesharing
31% of the world’s timeshare units are located in North America.
There are 7.2 million U.S. timeshare owners.
Timeshare resorts are located in 95 countries
Timeshare owners reside in more than 95 nations.
Major companies such as Disney, Hilton, Marriott, and Hyatt have become involved in timeshare.
Food Services Structure
Meetings and Conventions
Industry worth $263 billion
Supports $1.7 million direct jobs
Convention centers are expanding
With cancelled meeting during the pandemic will be a big hit.
Organizations in the Distribution Process
7
Operating Sectors of the Tourism Industry
Suppliers
Transportation Providers Accommodations Food Service Resorts
Recreation, Entertainment, etc.
Customers
Individuals Pleasure Groups Business Groups, Etc.
Tour
Wholesaler
Specialty
Channeler
Retail Travel
Agent
Specialty
Channeler
Specialty
Channeler
Specialty
Channeler
Tour
Wholesaler
Tour
Wholesaler
Tour
Wholesaler
Retail Travel
Agent
Retail Travel
Agent
Retail Travel
Agent
Direct
Channel
via
Internet
Telephone
Suppliers
Office
Host Retail Travel Agent
Home-based Travel Agent
Tourism Distribution Channels
Attractions, Entertainment, Recreation, and Other Tourist Draws
8
Operating Sectors of the Tourism Industry
Overview of Attractions
Attractions
Historical
Sites
Cultural
Attractions
Natural
Attractions
Events
Recreation
Entertainment
Attractions
Archeological
Sites
Architecture
Cuisine
Monuments
Industrial
Sites
Museums
Ethnic
Concerts
Theatre
Landscape
Seascape
Parks
Mountains
Flora
Fauna
Coasts
Islands
Mega-Events
Community
Events
Festivals
Religious
Events
Sports
Events
Trade
Shows
Corporate
Sightseeing
Golf
Swimming
Tennis
Hiking
Biking
Snow Sports
Theme Parks
Amusement
Parks
Casinos
Cinemas
Shopping
Facilities
Performing
Arts Centers
Sports
Complexes
Why do People Travel?
What motivates people to travel?
Reasons for travel?
Source: Valene Smith, Hosts and Guests, 1977.
Six Categories of Tourism
Ethnic Tourism
Cultural Tourism
Historical Tourism
Environmental Tourism
Recreational Tourism
Business Tourism
Tourist Appeals
Fine Arts
Music and Dance
Handicraft
Industry and Business
Agriculture
Education
Literature and Language
Science
Government
Religion
Food and Drink
History and Prehistory
Other Aspects of Tourism
Social and Cultural
Sustainable Tourism
Quality
Continuity
Balance
Over tourism? Overcrowd?
Less demand and excess capacity leading to……..?
Socio Cultural Impacts of Tourism
Both Positive and Negative Impacts
“Culture” as a tourist Destination
Direct contact between residents and tourists
Changes in Jobs and Economy vs Social Roles
Development of Tourist Facilities
Increased Population
Cont’d
Competition
Economic Inequities
Languages
Facilities Development
Quality of Life
Crowd, congestion and crime rates
More for tourists less for residents ??
Cultural Changes
Tourists effect on Traditions
Conflicts in Community
Perception Differences
Creation of Opportunities
Individual Perceptions of Tourism
Factors related to size and nature
How to manage those social cultural impacts
“Culture Shock”
Culture and tourism relationship
Shaping outbound
Shaping inbound
Urban tourism
Ethnic tourism
Interpretation of Sustainable Tourism
To make it effective in interpretation through:
Education
Experiences
Story Telling
How supply and demand works in tourism?
How to make it in equilibrium?
Components of Tourism Supply
NATURAL RESOURCES AND ENVIRONMENT
BUILT ENVIRONMENT
OPERATING SECTORS OF THE TOURISM INDUSTRY
Travel Trade
Sector
Catalyst, Planning, Development, and Promotion Organizations
Accommodation
Sector
Events Sector
Transportation
Sector
Adventure & Outdoor
Recreation Sector
Food Services
Sector
Attractions Sector
Entertainment
Sector
Tourism
Services
PEOPLE
CLIMATE
PHSYIOGRAPHY
INFORMATION
SUPERSTRUCTURE
INFRASTRUCTURE
CULTURE
Industry -- Residents -- Visitors
TECHNOLOGY
GOVERNANCE
SPIRIT OF HOSPITALITY
Tourism Supply Components
Can be classified into four main categories:
Natural resources
Built environment
Operating sectors
Spirit of hospitality & cultural resources
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Role of Tourism Policy
Tourism Policy: A Definition
Tourism policy can be defined as:
A set of regulations, rules, guidelines, directives, and development/promotion objectives and strategies that provide a framework within which the collective and individual decisions directly affecting tourism development and the daily activities within a destination are taken.
Areas Addressed by Tourism Policy
Roles of tourism within overall socio-economic development of destination region
Type of destination that will most effectively fulfill the desired roles
Taxation – types and levels
Financing for tourism sector – sources and terms
Nature. direction of product development/maintenance
Transportation access and infrastructure
Regulatory practices (e.g., airlines, travel agencies)
Environmental practices and restrictions
Industry image, credibility
Community relationships
Human resources and labor supply
Union and labor legislation
Technology
Marketing practices
Foreign travel rules
General Economic & Social Policies Affecting Tourism
Taxation – affects costs and profitability
Interest Rate Policy – affects costs and profitability
Bilateral Air Agreements – determine foreign visitor access
Environmental Policy – limits growth and access to attractive, but sensitive areas
Customs and Immigration Policy – can facilitate or hinder international visitation
Communications Policy – can restrict use of certain advertising media
General Economic & Social Policies Affecting Tourism (continued)
Minimum Wage Policy – can affect labor markets
Welfare Policy – can influence nature, behavior of work force
Education Policy – can affect quality of workforce
Cultural Policy – can affect preservation and promotion of national heritage
Foreign Investment Policy/Regulations – can affect availability of investment capital
Local Zoning Policy/By-Laws – can restrict or encourage tourism facility development
General Economic & Social Policies Affecting Tourism (continued)
National/Provincial/Local Policy re: funding support for major public facilities (e.g., stadiums, convention centers, museums, parks) – can drastically affect destination attractiveness
Infrastructure Policy – can make destination safer for visitors, or restrict resident travel to foreign destinations
Currency/Exchange Rate Policies – directly affects destination cost competitiveness
Legal System – determines consumer/visitor protection legislation (e.g., liability for failing to deliver advertised facilities/tours/experiences)
For your reference please watch the below clips from SFSU library’s website
http://fod.infobase.com.jpllnet.sfsu.edu/p_ViewVideo.aspx?xtid=52781
http://fod.infobase.com.jpllnet.sfsu.edu/p_ViewVideo.aspx?xtid=128791#
TourismServices
Travel Trade
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Accommodation
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Events Sector
Transportation
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Adventure & Outdoor
Recreation Sector
Food Services
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Attractions Sector
Entertainment
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Travel Trade
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Accommodation
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Events Sector
Transportation
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Adventure & Outdoor
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Food Services
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Attractions Sector
Entertainment
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Graphics/Components(B&W2003)
Travel Trade
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Transportation
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Recreation Sector
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Entertainment
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Travel Trade
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Transportation
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Recreation Sector
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Graphics/Components(B&W2003)
Travel Trade
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Recreation Sector
Food Services
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Entertainment
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Graphics/Components(B&W2003)