The Tourism Business Back to Table of Contents. The Tourism Business 2 Chapter 5 The Tourism Business Travel and Tourism Transportation Providers

The TourismBusinessThe TourismBusiness

Back to Table of Contents

The Tourism BusinessThe Tourism Business

2

Chapter 5


Travel and TourismTravel and Tourism

Transportation ProvidersTransportation Providers


3

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.


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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


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The Growth of Tourism

Trends contributing to the growth of tourism are:

disposable income the money left from a person’s gross income after taking out taxes

Section 5.1

Dual family income– Disposable income

Baby boomers

Health


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Leisure time

New transportation options

The Internet


Trends contributing to the growth of tourism are:

niche market a new market in tourism that bases travel on specific interests, such as ecotourism

Section 5.1

Niche markets


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Examples of niche markets are:

Section 5.1

Travelfor the

disabled

Adventuretravel

Geotourism Agritourism


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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

Reasons for Travel

Section 5.1

Reasons for Leisure Travel

Visiting family and friends

Natural and constructed attractions

Religious attractions

Fairs and festivals

Cultural attractions

Sports events

Shopping

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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


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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


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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


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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

Section 5.1

charter tour a tour in which a tour operator buys all the seats on an airplane, train, or bus and resells them to travelers


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Types of Tours

The three types of package tours are:

Section 5.1

Independenttours

Independenttours

Hostedtours

Hostedtours

Escorted orGuided toursEscorted or

Guided tours


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Types of Tours

A customized tour may include accommodations, transportation, and sightseeing.

customized tour a tour that is more expensive than a package tour and is designed specifically for an individual tourist

Section 5.1


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Tour Benefits

For tourists, the benefits of tours include:

Section 5.1

Volume discounts

Guaranteed sightseeing entrances

Prepayment options

Stress-free travel

For retailers, the benefits of tours include:Ease of booking

Maximum earning potential


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Tour Positions

The growing travel and tourism industry offers a variety of career options in four positions:

Section 5.1

Tour escort

Tour guides

Tour hosts

Other tour positions– Reservationists, sales, accounting, product

managers, assistant managers, administrative assistants


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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


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Operating an e-tail business on an electronic channel—the Web—can be costly, due to design, delivery, returns, and operating expenses.

Though Many larger dot-com companies crashed in the 1990’s, small stores like Harris Cyclery of West Newton, Massachusetts, actually increase sales using a basic Web site. Today, a third of Harris’s bicycle business rides in on the Web to get hard-to-find parts and personal service.

Describe an e-business’s home page to your class after viewing one through marketingseries.glencoe.com.

Tourism is an international business. Professionals who work in tourism need to understand and adapt to the cultural and language differences of their business partners in order to work and negotiate effectively.

Electronic Etiquette

For example, it may be acceptable to call business associates in the United States by their first names, but in Japan, such informality is reserved for close friends and family members. Many businesspeople are turning to the Internet to stay up-to-date on key aspects of international business etiquette.

Section 5.1

For more information, go to marketingseries.glencoe.com.19


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What three factors many contribute to the growth of tourism?

What are two reasons that people travel?

What are three types of package tours?

1.

2.

3.

Section 5.1

5.15.1


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Modes of Transportation

Passenger transportation is intermodal, which means that it relies on air and ground as well as water transportation methods.

Section 5.2

The different modes of transportation include:

Airtransportation

Groundtransportation

Watertransportation


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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


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Air Travel 1945

Section 5.2

The International Air Transport Association (IATA) reorganized to promote cooperative agreements for passengers traveling across international borders.


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Air Travel 1958

Section 5.2

Congress enacted the Federal Aviation Act to create the Federal Aviation Administration (FAA).


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Air Travel 1978

Section 5.2

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.


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Air Travel 1978 hub-and-spoke system an effective network for an airline formed by a hub, or large airport, connected to other smaller airports called spokes

Section 5.2

Large carriers adopted the hub-and-spoke system.

Airlines created the frequent-flyer program.

frequent-flyer program a program in which an airline offers free travel, upgrades, and discounts to program members


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Air Travel 1990s

Section 5.2

Point-to-point service by regional low-cost airlines offered an alternative to the hub-and-spoke system.


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Air Travel 2000

Section 5.2

Many airlines formed partnerships with other carriers for non-competing or international routes.


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Airline Careers

Onboard positions include:

Section 5.2

Pilot

Copilot

Navigator

Purser

Flight attendant

Ground positions include:

Ground crew

Security personnel

Gate agents

Reservation agents


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Ground Transportation

Types of ground transportation include:

Section 5.2

Rail

Automobile

Motor coach

Ground transportation takes longer and costs less than other modes of transportation.


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In the 1970s, the National Railroad Passenger Corporation was founded, now known as Amtrak.

Amtrak a company that operates a railroad system with combined passenger and rail service throughout the continental United States

Section 5.2


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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 20th century.

Section 5.2


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Types of automobile transportation include:

Section 5.2

Automobile rentals

Limousines

Vans and shuttles


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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


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Careers in ground transportation include:

Section 5.2

Car rental agents

Sales

Reservations

Drivers

Dispatchers

Chauffeurs

Conductors

Engineers


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Water Transportation

Types of water transportation include:

windjammer a sailing ship that offers passengers the opportunity to sail privately and work with a crew

Section 5.2

Ferry boats

Freighters

Riverboats

Yachts

Windjammers

Cruise ships


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Five factors that affect the price of a cruise ship are:

Section 5.2

1. The ship

2. The season of sailing

3. The length of stay

4. The cabin location

5. The itinerary


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Cruise-ship positions include:

Section 5.2

Sales

Reservations

Purser’s office

Recreation

Shore excursions

Entertainment


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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


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What are three significant events that affected the airline industry?

What are three forms of ground transportation?

What five factors affect the price of a ship cruise?

1.

2.

3.

Section 5.2

5.25.2


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1. List the factors affecting the growth of travel and tourism.

The factors that affect the growth of travel and tourism are trends toward dual family incomes; baby boomers who enjoy travel; health consciousness; available leisure time; new transportation options; increased Internet use; and niche travel markets such as adventure travel.

1. Niche markets include travel for the disabled, adventure travel, geotourism, and agritourism.

2. Reasons for leisure travel include visiting family and friends, seeing natural and constructed attractions, visiting religious attractions, attending fairs and festivals, visiting cultural attractions, attending sports events, and shopping.

3.

continued

Checking Concepts

2. Identify the niche markets in tourism.

3. Describe the reasons for leisure travel.


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4. Explain the impact of tourism in the United States.

Tourism’s impact on the United States includes its positive effect on the economy: One out of every eight people in the United States is directly or indirectly employed in the travel and tourism industry.

4. Types of tours include tour packages, such as independent, hosted, and escorted or guided tours; and customized tours, which are tours that are more expensive than package tours and are designed for individual tourists.

5. Travel and tourism would not be possible without efficient transit programs and state-of-the-art transportation systems.

6.

continued

Checking Concepts

5. List the types of tours and tour packages.

6. Discuss the importance of transportation for the travel and tourism business.


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8. Explain why cruise-ship tourism has become popular.

Critical Thinking

Checking Concepts

Modes of transportation include: air transportation (planes); ground transportation (rail, car, and motor coach); and water transportation (passenger and cruise vessels).

7.7. Identify the three modes of transportation, giving examples of each.

Cruise ships have become popular because they offer luxury appointments, accommodations, and amenities. Some cruise lines offer reasonable rates as well.

8.

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The Tourism Business Back to Table of Contents. The Tourism Business 2 Chapter 5 The Tourism Business Travel and Tourism Transportation Providers