Introduction to the UK Travel &

Tourism Industry

What is Travel and Tourism??

What do you think the following mean?

Travel Being transported to one destination to another

Tourism Provision of services to tourists

A tourist Someone who travels from their environment to

another for more than 24h.

Different types of TourismInbound TourismOverseas tourists visiting the UKe.g. Singh family from UAE visiting London for a weekIn 2013 29.6 million visitors came to the UK from other

countries, spending £16.7 billion!!!

Outbound TourismUK residents going on holiday aboarde.g. Sarah and John from Wales going to Greece

Domestic TourismUK residents going on holiday in the UKe.g. The Ernest family from Southampton going to Edinburgh

Different types of TouristsLeisure TouristsPeople generally going on holiday. Could include, single people, groups, families, people with special needs, educational etc.

Business TouristsMain purpose of trip is for business e.g. attending aconference or meeting

Visiting Friends and Relatives (VFR)The main purpose of trip is to visit friends and relatives but they still undertake normal activities e.g.visiting attractions

Organisations that operate in Travel and

Tourism

In your groups, can you name the many types of organisation that are part of

the UK Travel and Tourism Industry???

Different types of organisations

• Public sector - Organisations run/owned by the government for profit (e.g. Visit Britain)

• Private sector – Organisations that are run by individuals and companies for profit (to make money). They are not owned or operated by the government (e.g. Virgin Atlantic)

• Voluntary sector – Organisation that are run by individuals and companies not for profit. May also be run/funded by government (Tourism Concern)

Different types of organisations

• Local – Organisations operating ‘locally’, in your town or city (e.g. Fareham or Portsmouth)

• Regional – Organisations operating within you county (e.g. Hampshire) or area of UK (e.g. South East)

• National – Organisational that operate within the UK

• International – Organisations that operate overseas

Call Centre

Transport – the many forms

Airports • Heathrow Airport Holders (HAH) is the major

organisation in airport ownership. E.g. Southampton, Aberdeen, Southampton

• Running an airport is complex but profitable. It provides products and services for groups of people and businesses:– Airlines provided with infrastructure and services to

operate flights– Customers provided with facilities e.g. shops– Other businesses provided with location where they can

operate from e.g. car hire

How many UK airports can you name???

Airlines • All UK airlines are privately owned

• British Airways is one of the world’s most famous

• Largest in UK and flies to more than 200 destinations

• It has 4 different categories of cabin and its main bases are at Heathrow and Gatwick

How many airlines can you name???

Airlines – 2 different types

Scheduled•Run to a regular timetable like a bus•This is only changed for winter and summer seasons•Flights depart even if not all seats are booked•E.g. Virgin Atlantic, BA•Can also be a low cost or budget airline•They aim to keeps costs as low as possible by charging for extras e.g. luggage•E.g. Ryanair, Easyjet

Charter •Usually contracted for a season and run to a timetable set my tour operator•It’s the flight that forms part of the package holiday •They will try to fill every single seat and may even cancel flights if they are 75% full•Major tour operators have their own airlines e.g. Thomson •May use other airlines e.g. Monarch

Accommodation • Many different types, serviced (meals are offered and your room cleaned), or non-

serviced you look after yourself e.g. do your own cleaning)

• Hotels may be independently owned or part of a large chain. Chains tend to be more impersonal, but provide consistency of quality throughout the world

• Offer many product and services, catering for different customer types e.g. leisure and business

• For example a business guest may require WiFi access and conference facilities, where as a leisure guest might prefer a spa and a child’s play area.

Accommodation • Guest accommodation includes bed and breakfast and guesthouses, which is

generally in a large converted house

• A B&B would be fully serviced whereas a guest house would not offer meals

• Also have self catering accommodation such as lodges, caravans, tents, apartments, villas and cottages

How many hotels in the local area can you think of???

Attractions• Natural attractions – Not built just formed! E.g.

coastlines, mountains, woodland. Often they are protected, for example National Parks and AONB (areas of outstanding natural beauty).

• Heritage attractions – Not all created for tourism originally. E.g. historic houses, castles, museums, historic dockyard. Heritage attractions are often looked after and run by English Heritage and The National Trust.

• Purpose built attractions – Built purely for tourism. E.g. theme parks, museums, experiences (e.g. Madam Tussauds).

• Events – E.g. Notting Hill Carnival, Isle of Wight Festival, Glastonbury Festival, Boat show, Ideal Home Exhibition.

Ancillary ServicesThis refers to organisations that do not have

a direct role in travel and tourism, but play a supporting role, perhaps offering related

products and services.

Examples include:• Insurance companies providing holiday insurance• Foreign exchange bureaus • Car parks• Shops • Restaurants, cafes

Tour OperatorsRole to put together all different components that make up a holiday

and sell them as a package to consumer.

They make contracts with hoteliers, airlines and other transport companies.

Domestic tour operators – Only sell package holidays within the UK

Outbound tour operators – Sell packages from the UK to go abroad

Inbound tour operators – Sell packages to come to the UK

What is a package holiday???

Accommodation + Transport = Package Holiday

• Sold for an inclusive price

• Be offered for sale

• Must include transport and accommodation

• May also include services including holiday representative, transfers, excursions etc.

Tour OperatorsMass Market• Considered ‘mass market’ as they sell similar package holidays that

appeal to majority of holidays makers

• Major outbound tour operators include Thomson, First Choice and Thomas Cook

• ‘Big Two’ dominate the market and own many of the UK’s most popular tour operators, travel agencies etc

• Also sell ancillary products and services to increase revenue e.g. car hire, insurance, foreign currency and excursions

Tour OperatorsSpecialist• Becoming more popular as people want more than the usual package

holiday

• They tend to specialise in a particular thing like a destination or product e.g. Greece or diving

• They respond well to trends e.g. tailor made holidays

• An example could be Anatolian who specialise in holidays to Turkey

Call Centre

Travel Agents

• Role is to give advice and information, and sell and administer bookings for a number of tour operators, accommodation and transport providers

• Also sell flights, ferry bookings, car hire, insurance, foreign currency, excursions and accommodation (ancillary products and services)

• Can operate through the following:• Retail shops• Call centre• Over the internet

Travel AgentsLeisure Travel Agents• Most are part of a multiple chain and dominate market e.g. Thomas Cook and Thomsons

• These can be linked to tour operators and may prioritise their own company’s products

• Been slight reduction in number of agency branches in past few years.

Why is this????• Ideally located on high street or in

shopping centres for convenience, to attract customer attention and passing trade

Travel AgentsBusiness Travel Agents• Specialise in the business market

• Aim to handle all travel arrangements for large companies http://www.waytetravel.co.uk/

• ‘Implants’ are travel agents located within another business. They set up office within a company so that they are on hand to deal with travel requirements of company’s personnel

Direct Sale

What is direct sale???

Selling direct to the customer on the internet or over the telephone.

This can also mean ‘missing out the middle man’?!?

Chain of distribution Principles

Hotels, airlines, transfer

companies, attractions

Wholesaler

Tour operator

Retailer

Travel agent

Customer

E.g. Thomas Cook airline

E.g. Thomas Cook tour operator

E.g. Thomas Cook travel agent

Direct Sale

???

Vertical integration

When two or more organisations owned by the same parent company are at different levels of

the chain of distribution

Airline Tour operator

Travel agent

Fly Thomas Cook

Thomas Cook

Thomas Cook Travel

Agency

Horizontal integration

When two or more organisations owned by the same parent company are at the same level of

distribution

tour operator tour operator tour operator

Thomas Cook Airtours Club 18-30

Direct Sale

On-line • Websites are most up to date means of distributing travel and

tourism products

• May only operate over the internet, do not have shops on the high street www.travelsupermarket.com

• All major tour operators have websites where you can book

Direct SellCall Centres• Increasingly people prefer to book over the phone and internet

• Some call centres are tour operator or airline owned and sell their own products and service

• Some are not owned by a tour operator but just sell their products and services http://www.icelolly.com/

• Call centres rely on high staff productivity to be successful. They motivate staff through incentives such as bonuses on sales targets reached

• Call answering time, call durations, sales and complaint ratios are closely monitored

Government & Tourist Boards

What is a tourist board?An official organisation that encourages people to visit an area, city, or country,

and that provides information about travel, places of interest, where to stay etc.

http://dictionary.cambridge.org/dictionary/business-english/tourist-board

Government & Tourist BoardsGovernment Department

Department for Culture, Media and SportDepartment for Transport

Department for Children, Schools and FamiliesDepartment for the Environment, Food and Rural Affairs

UK Tourist BoardVisitBritain

National Tourist Boards Enjoy England Visit Wales Visit Scotland Discover Northern Ireland

Local Tourist BoardsVisit Hampshire Visit Portsmouth

TIC’s (Tourist Information Centres)

Trade Associations & Regulatory Bodies

TASK - Who are they and what do they do???

• AITO – Association of Independent Tour Operators

• ABTA – Association of British Travel Agents

• CAA – Civil Aviation Authority

An association of people or companies in the travel and tourism industry. You can

become a member and it is organised to promote

common interests

An authority who exercise power over areas of the

travel and tourism industry. They may issue licenses and control how organisations

operate.