1 HFT3003 100 12686

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Exploring the Hospitality Industry FOURTH EDITION

Chapter 2 Tourism

Learning Objectives (1 of 2)

• After completing this chapter, the students should be able to:  Explain the nature of tourism in today’s world.  Describe the economic impact of tourism.  Compare the different methods of tourist travel.  List the important international and domestic

tourism organizations.

Learning Objectives (2 of 2)

• After completing this chapter, the students should be able to:  Compare the major promoters of tourism and

how they promote tourism.  Compare and contrast the major types of travel.  Describe the sociocultural impact of tourism and

changing concepts in the industry.

Tourism Highlights • People have traveled for centuries. • Traces of travel date back to:

 776 B.C. and the early Olympic Games held in Greece.

• Religious travel grew in the 13th century.  Growth of inns to support travelers

What Is Tourism? • The world's largest industry • Dynamic and evolving • Stimulates economic growth and job creation

Tourism Highlights (1 of 4)

• 17th Century  Saw increased travel by horse and carriage.  Post houses were set up to accommodate riders

and their animals. • 19th Century

 Cruising becomes fashionable.  Rail travel gains in popularity.

Tourism Highlights (2 of 4)

• 20th Century  Automobile is invented and travel by car

increases.  Air travel gains in popularity in the mid-20th

century.  Cruising returns to popularity.

Tourism Highlights (3 of 4)

• 21st Century  Temporary decline in tourism during the early

part of the century due to: • Terrorist attacks (9/11) • SARS • Flu outbreaks • War

• Tourism begins increasing in the 2010s

Tourism Highlights (4 of 4)

• 21st Century  China's expenditures on travel abroad reached

$102 billion in 2012.  The UNWTO expects this segment to grow

substantially in the future.

UN World Tourism Organization (1 of 3)

• UNWTO is a specialized organization of the United Nations (UN) focused on global tourism.

• The UNWTO is the leading international organization in the field.

UN World Tourism Organization (2 of 3)

• Plays a key role in the following areas:  Developing sustainable tourism  Developing universally accessible tourism  Continued focus on economic development  Developing a global code of ethics for tourism

UN World Tourism Organization (3 of 3)

• UNWTO defines tourism as "the activities of persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business, and other purposes."

Tourism Benefits • These benefits include:

 Opening of borders across the globe  Increased disposable income  Increased vacations  Reasonably priced airfares  More people interested in travel

Tourism 2020 (1 of 3)

• Top three tourist receiving areas are projected to be Europe, East Asia, and Pacific and the Americas.

Tourism 2020 (2 of 3)

• Within the tourism industry, there is interdependence between the segments of tourism: travel, lodging, foodservice, and recreation.

• Each segment relies on the others for growth.

Tourism 2020 (3 of 3)

• Tourism growing at 3.1% a year • Contributes 7.6 trillion to the global economy • 1 in every 11 workers around the globe

The Multiplier Effect • When a tourist spends money (on travel, lodging,

food, etc.) the money is recycled into the local industry, so businesses can purchase more goods and services, generating more use of the money.

• This is known as the multiplier effect.

FIGURE 2–2 The Multiplier Effect.

Primary Modes of Travel • Air • Rail • Automobile • Bus

Air Travel (1 of 2)

• One of the greatest influences on modern travel • On any given day, more than 5,500 planes are in

the air over the United States. • Competition between airlines has significantly

increased air travel. • Business travelers are spending less.

Air Travel (2 of 2)

• Many air carriers are facing challenges from lowered costs and rising operating expenses.

• Major airlines are forming alliances that allow them access to "feeder" markets.  A "feeder" market is a market that provides the

source passengers for a particular destination.

Hub-and-Spoke System • A system that allows passengers to travel from

one smaller city to another via a hub or hubs • Benefits of the hub-and-spoke system include:

 Airlines can service more cities at a lower cost.  Airlines can maximize passenger loads between

smaller cities.

FIGURE 2–3 The Hub-and-Spoke System.

Rail Travel – U.S. (1 of 2)

• Made mass travel available to all • Began to decline in popularity beginning in the

1920s • Faced with a possible collapse of the industry,

Congress passed the Rail Passenger Service Act in 1970 (amended in 2001).

Rail Travel – U.S. (2 of 2)

• The National Railroad Passenger Corporation was established shortly after this act was passed.

• This entity began operation as a semi-public corporation establishing intercity rail service.

• This corporation is known as Amtrak.

Rail Travel – Abroad • Rail travel in other countries is far ahead of the

United States. • High-speed networks are well developed. • Trains have the capacity to travel in speeds in

excess of 250 mph. • Rail passes allowing travel in many countries are

available to purchase.

Future of Rail Travel • New technology causing changes

 Maglevs • Can travel at speeds over 300 mph • Travel on a cushion of magnets above the

ground • Very efficient

Automobile Travel (1 of 2)

• In 1895, the first "horseless carriages" were seen on the road.

• Changed America's way of life • Largest segment of ground transportation

Automobile Travel (2 of 2)

• Provides a convenient form of travel for short and medium-length trips

• Economical and provides revenues for local communities (tourists)

Rental Cars (1 of 2)

• Over 5,000 companies in the United States rent cars.  75% of rentals occur at airports.  30% of rentals are from leisure travelers.

Rental Cars (2 of 2)

• Four largest U.S. car rental companies are  Hertz  Avis  National  Budget

Bus Travel • Convenient and economical • Allows leisure travelers to relax and enjoy the ride • Different types of bus services include:

 Local  Charter/Tour  Airport  Commuter/Rapid Transit

Tourism Organizations • The UNWTO represents all national and official

tourism interests of its members. • Many other international and domestic

organizations • Each organization has a specific role/purpose.

International Organizations (1 of 3)

• International Air Transportation Association (IATA)  Regulates almost all international air travel  Maintains stability of fares and rates

• International Civil Aviation Organization (ICAO)  Coordinates the development of civil aviation

International Organizations (2 of 3)

• World Bank (WB)  Lends money for tourism development

• United Nations Development Program (UNDP)  Assists countries with development projects

including tourism

International Organizations (3 of 3)

• Organization for Economic Cooperation and Development (OECD)  Established in 1960  Designed to support sustainable economic

growth  Boost employment  Raise living standards  Contribute to growth in world trade

Domestic Organizations • National Tourism Organization (NTO)

 Found in many countries to coordinate tourism efforts

• Travel Industry of America (TIA)  Main body for promotion and development of

tourism in the United States

Promoters of Tourism (1 of 3)

• Tour Operators  Promote trips/tours that they plan and organize  Tours in the United States account for about

500,000 tours a year.

Promoters of Tourism (2 of 3)

• Travel Agencies  Act as a travel counselor  Use computerized reservation system to make

bookings  Provide personalized service  Paid by commission

• Decreasing use of services as more people book trips using Internet resources

Promoters of Tourism (3 of 3)

• Travel Corporations  Provides services, including foreign currencies,

traveler's checks, and gift checks  American Express Travel Services is the largest

provider of services.

Other Promoters of Tourism • Corporate Travel Manager • Travel and Tour Wholesalers • Certified Travel Counselor • National Offices of Tourism • Destination Management Companies

Pleasure Travel (1 of 2)

• Pleasure travel comprises about 79% of domestic travel.  Leisure  Recreation  Holiday  Visiting family and friends

Pleasure Travel (2 of 2)

• Travel is likely to increase in the coming years as we see:  Longer life spans  Flexible working hours  Early retirements  Greater ease of travel  Tendency to take shorter, more frequent trips  Increase in the standard of living

Business Travel • Business travel has declined in recent years. • Businesses are cutting back on their business

trips, yet business travelers are the most frequent guests of mid- to high-priced hotels and resorts.

Impact of Tourism (1 of 2)

• From a social and cultural perspective, tourism can leave both positive and negative impacts on communities.

• Tourism is a means of enhancing international understanding, peace, prosperity, and universal respect for, and observance of, human rights.

Impact of Tourism (2 of 2)

• Ecotourism is “responsible tourism.” • Cultural tourism is defined as visiting for historical,

artistic, scientific, or lifestyle/heritage reasons. • Tourism enhances the arts and crafts of a

destination by providing new markets for local artisans.

Sustainable Tourism • According to the International Ecotourism Society,

sustainable tourism is:  "responsible travel to natural areas that

conserves the environment and sustains the well-being of local people"

Trends in Tourism (1 of 2)

• Employment prospects will continue to improve. • Increased awareness in eco-tourism • Government recognition of the importance of

tourism • Increased marketing and corporate partnerships

Trends in Tourism (2 of 2)

• Increased Internet bookings and ticketless travel • Introduction of environmentally friendly vehicles • More cars equipped with Global Positioning

Systems (GPS)

Exploring the Hospitality Industry
Learning Objectives (1 of 2)
Learning Objectives (2 of 2)
Tourism Highlights
What Is Tourism?
Tourism Highlights (1 of 4)
Tourism Highlights (2 of 4)
Tourism Highlights (3 of 4)
Tourism Highlights (4 of 4)
UN World Tourism Organization (1 of 3)
UN World Tourism Organization (2 of 3)
UN World Tourism Organization (3 of 3)
Tourism Benefits
Tourism 2020 (1 of 3)
Tourism 2020 (2 of 3)
Tourism 2020 (3 of 3)
The Multiplier Effect
FIGURE 2–2 The Multiplier Effect.
Primary Modes of Travel
Air Travel (1 of 2)
Air Travel (2 of 2)
Hub-and-Spoke System
FIGURE 2–3 The Hub-and-Spoke System.
Rail Travel – U.S. (1 of 2)
Rail Travel – U.S. (2 of 2)
Rail Travel – Abroad
Future of Rail Travel
Automobile Travel (1 of 2)
Automobile Travel (2 of 2)
Rental Cars (1 of 2)
Rental Cars (2 of 2)
Bus Travel
Tourism Organizations
International Organizations (1 of 3)
International Organizations (2 of 3)
International Organizations (3 of 3)
Domestic Organizations
Promoters of Tourism (1 of 3)
Promoters of Tourism (2 of 3)
Promoters of Tourism (3 of 3)
Other Promoters of Tourism
Pleasure Travel (1 of 2)
Pleasure Travel (2 of 2)
Business Travel
Impact of Tourism (1 of 2)
Impact of Tourism (2 of 2)
Sustainable Tourism
Trends in Tourism (1 of 2)
Trends in Tourism (2 of 2)
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