The Tourism Business Back to Table of Contents

The Tourism Business Back to Table of Contents

Chapter 5 The Tourism Business Travel and Tourism Transportation Providers 2

The Tourism Business Chapter Objectives Identify factors that contribute to the growth of tourism. Discuss the reasons that people travel. Describe the different types of tours. Explain the importance of transportation providers. Identify the different types of transportation. Discuss the impact of the cruise industry. 3

The Tourism Business Introduction to Travel and Tourism The travel and tourism industry includes businesses and government agencies that service travelers. In 2004, overall spending by domestic and international visitors in the United States increased more than 4 percent to $568 billion. Section 5. 1 4

The Tourism Business The Growth of Tourism Trends contributing to the growth of tourism are: Dual family income – Disposable income disposable income the money left from a person’s gross income after taking out taxes Baby boomers Health Section 5. 1 5

The Tourism Business The Growth of Tourism Trends contributing to the growth of tourism are: Leisure time niche market a new market in tourism that bases travel on specific interests, such as ecotourism New transportation options The Internet Niche markets Section 5. 1 6

The Tourism Business The Growth of Tourism Examples of niche markets are: Travel for the disabled Section 5. 1 Adventure travel Geotourism Agritourism 7

The Tourism Business Reasons for Travel There are two main reasons for travel—business and leisure. Business travel could be motivated by meetings, conventions, or other general business reasons. Leisure travel involves travel for pleasure. Section 5. 1 8

Reasons for Travel Reasons for Leisure Travel Visiting family and friends Natural and constructed attractions Religious attractions Fairs and festivals Cultural attractions Sports events Shopping Section 5. 1 9

The Tourism Business Tourism’s Economic Impact In the United States, one out of every eight people is either directly or indirectly employed in the travel and tourism industry. The travel industry is one of America’s largest retail industries. Section 5. 1 10

The Tourism Business Tourism’s Economic Impact The travel industry is one of the largest employers in 29 states. Travelers in the United States spend about $17, 000 per second, $1 million per minute, $60 million per hour, and $1. 4 billion per day. Section 5. 1 11

The Tourism Business Types of Tours A tour can include accommodations, transportation, food service, and entertainment. Tours that include all services for one price are called all-inclusive tours. Section 5. 1 12

The Tourism Business Types of Tours A tour operator or company may develop a package tour as a charter tour. package tour a prearranged tour that offers value, guaranteed sightseeing, and a quality product charter tour a tour in which a tour operator buys all the seats on an airplane, train, or bus and resells them to travelers Section 5. 1 13

The Tourism Business Types of Tours The three types of package tours are: Independent tours Section 5. 1 Hosted tours Escorted or Guided tours 14

The Tourism Business Types of Tours A customized tourmay include accommodations, transportation, and sightseeing. Section 5. 1 customized tour a tour that is more expensive than a package tour and is designed specifically for an individual tourist 15

The Tourism Business Tour Benefits For tourists, the benefits of tours include: Volume discounts Guaranteed sightseeing entrances Prepayment options Stress-free travel For retailers, the benefits of tours include: Ease of booking Maximum earning potential Section 5. 1 16

The Tourism Business Tour Positions The growing travel and tourism industry offers a variety of career options in four positions: Tour escort Tour guides Tour hosts Other tour positions – Reservationists, sales, accounting, product managers, assistant managers, administrative assistants Section 5. 1 17

The Tourism Business Growth of Tourism Travel and tourism is one of the largest and fastest-growing industries in the world. Other vital segments of the tourism business include the transportation providers. Section 5. 1 18

The Tourism Business Electronic Etiquette Operating e-tail business on an Professionals electronic channel—the Tourism is anan international business. who work Web—can betocostly, due to and design, delivery, returns, and in tourism need understand adapt to the cultural operating expenses. language differences of their business partners in order to work and negotiate effectively. Though Many larger dot-com companies crashed in the small stores Harris Cyclery of West Newton, For 1990’s, example, it may be like acceptable to call business associates Massachusetts, salesbut using a basic Web in the United Statesactually by theirincrease first names, in Japan, such site. Today, a third offor. Harris’s bicycleand business in on informality is reserved close friends family rides members. the Web to get hard-to-find parts and personal service. Many businesspeople are turning to the Internet to stay up-todate on key an aspects of international business etiquette. Describe e-business’s home page to your class after viewing one through marketingseries. glencoe. com. For more information, go to marketingseries. glencoe. com. Section 5. 1 19

The Tourism Business 5. 1 1. What three factors many contribute to the growth of tourism? 2. What are two reasons that people travel? 3. What are three types of package tours? Section 5. 1 20

The Tourism Business Modes of Transportation Passenger transportation is intermodal, which means that it relies on air and ground as well as water transportation methods. The different modes of transportation include: Air transportation Section 5. 2 Ground transportation Water transportation 21

The Tourism Business History of Air Transportation The Wright brothers’ first successful airplane flight took place in 1903. Passenger service on airplanes traveling short distances began in 1919. In 1927, Charles Lindbergh crossed the Atlantic Ocean in the first long-distance flight. Section 5. 2 22

The Tourism Business History of Air Transportation Air Travel 1945 The International Air Transport Association (IATA) reorganized to promote cooperative agreements for passengers traveling across international borders. Section 5. 2 23

The Tourism Business History of Air Transportation Air Travel 1958 Congress enacted the Federal Aviation Act to create the Federal Aviation Administration (FAA). Section 5. 2 24

The Tourism Business History of Air Transportation Air Travel 1978 The Airline Deregulation Act allowed new competitors to offer services in new markets to create a more efficient national airline system. Price competition became more common. Many airlines were unable to compete. Section 5. 2 25

The Tourism Business History of Air Transportation Air Travel 1978 Large carriers adopted the hub-and-spoke system. Airlines created the frequent-flyer program. Section 5. 2 hub-and-spoke system an effective network for an airline formed by a hub, or large airport, connected to other smaller airports called spokes frequent-flyer program a program in which an airline offers free travel, upgrades, and discounts to program members 26

The Tourism Business History of Air Transportation Air Travel 1990 s Point-to-point service by regional low-cost airlines offered an alternative to the hub-andspoke system. Section 5. 2 27

The Tourism Business History of Air Transportation Air Travel 2000 Many airlines formed partnerships with other carriers for non-competing or international routes. Section 5. 2 28

The Tourism Business Airline Careers Onboard positions include: Pilot Copilot Navigator Purser Flight attendant Section 5. 2 Ground positions include: Ground crew Security personnel Gate agents Reservation agents 29

The Tourism Business Ground Transportation Types of ground transportation include: Rail Automobile Motor coach Ground transportation takes longer and costs less than other modes of transportation. Section 5. 2 30

The Tourism Business Ground Transportation In the 1970 s, the National Railroad Passenger Corporation was founded, now known as Amtrak. Section 5. 2 Amtrak a company that operates a railroad system with combined passenger and rail service throughout the continental United States 31

The Tourism Business Ground Transportation Internationally, rail service is extremely popular as a means of ground transportation. In the United States, rail service has not been as popular as it was in the first half of the 20 th century. Section 5. 2 32

The Tourism Business Ground Transportation Types of automobile transportation include: Automobile rentals Limousines Vans and shuttles Section 5. 2 33

The Tourism Business Ground Transportation Motor-coach transportation can be categorized as charter-tour transportation. The motor-coach industry was deregulated in 1982. Motor-coach travel is popular in major cities as an alternative to rail service, car rental, or taxis. Section 5. 2 34

The Tourism Business Ground Transportation Careers in ground transportation include: Car rental agents Sales Reservations Drivers Section 5. 2 Dispatchers Chauffeurs Conductors Engineers 35

The Tourism Business Water Transportation Types of water transportation include: Ferry boats Freighters Riverboats Yachts Windjammers Cruise ships Section 5. 2 windjammer a sailing ship that offers passengers the opportunity to sail privately and work with a crew 36

The Tourism Business Water Transportation Five factors that affect the price of a cruise ship are: 1. 2. 3. 4. 5. The ship The season of sailing The length of stay The cabin location The itinerary Section 5. 2 37

The Tourism Business Water Transportation Cruise-ship positions include: Sales Reservations Purser’s office Section 5. 2 Recreation Shore excursions Entertainment 38

The Tourism Business Integrated Tourism Systems Air, ground, and water transportation services and providers are significant contributors to the travel and tourism industry. Without a reliable system of transportation, the travel and tourism industry could not be successful. Section 5. 2 39

The Tourism Business 5. 2 1. What are three significant events that affected the airline industry? 2. What are three forms of ground transportation? 3. What five factors affect the price of a ship cruise? Section 5. 2 40

The Tourism Business Checking Concepts 1. List the factors affecting the growth of travel and tourism. 2. Identify the niche markets in tourism. 3. Describe the reasons for leisure travel. continued Reasons factors forthat leisure affect 1. The 2. 3. Niche markets the travel growth include of travel visiting include travel forand tourismand family arefriends, trends the disabled, toward natural seeing dual family and adventure travel, incomes; baby constructed attractions, geotourism, and boomers visiting religious who enjoy travel; attractions, health attending agritourism. fairs and festivals, consciousness; available visiting cultural leisure time; new transportation attractions, attending options; sports events, increased and Internet use; and niche shopping. travel markets such as adventure travel. 41

The Tourism Business Checking Concepts 4. Explain the impact of tourism in the United States. 5. List the types of tours and tour packages. 6. Discuss the importance of transportation for the travel and tourism business. continued of tours Tourism’s impact on 4. Types 5. 6. Travel and tourism include tourbe the United States would not packages, such as includes positive possible its without independent, effect on transit the hosted, efficient and escorted or out economy: One programs and state guided of everytours; eightand -of-the-art customized tours, people in the United transportation which are tours that States is directly or systems. are more expensive indirectly employed than package tours in the travel and are designed for tourism industry. individual tourists. 42

The Tourism Business Checking Concepts 7. Identify the three modes of transportation, giving examples of each. Critical Thinking 8. Explain why cruise-ship tourism has become popular. 7. Modes 8. Cruise ships of have transportation become popular include: air because they offer transportation luxury (planes); ground appointments, transportation (rail, accommodations, car, and amenities. motor coach); cruise Some and water lines transportation offer reasonable (passenger rates as well. and cruise vessels). 43

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The Tourism Business 45