Dedicated to supporting students studying Travel and Tourism
The types travel and tourism
Types travel and tourism customer
The types of travel + tourism organisations, their roles and the
products and services they offer to customers
Types of travel and tourism: natural + man-made
Impact of the travel and tourism industry
Factors affecting the travel and tourism industry
See Resources page for a comprehensive range of online resources - websites and YouTube clips.
Types of tourism
Teaching + learning resources for this topic feature more comprehensive notes and student activities
Additional resources on the 'Types of Tourism' can be found in the 'Destinations' section
Defintions
Types of Travel + TourismTourism is defined as the activities of visitors. A visitor is someone who is making a visit to a main destination outside his/ her usual environment for less than a year for any main purpose [including] holidays, leisure and recreation, business, health, education or other purposes....
(United Nations World Tourism Organisation )
(United Nations World Tourism Organisation )
Tourism is the temporary short movement of people to destinations outside places where they normally live and work and their activities during their stay at these destinations
(UK Tourism Society)
(UK Tourism Society)
Who are tourists?
Types of Travel + TourismInbound - visitors from overseas entering a country
Outbound - leaving the country for travel/tourist purposes
Domestic - holidays + trips within the same country
International – tourism to another country
Outbound - leaving the country for travel/tourist purposes
Domestic - holidays + trips within the same country
International – tourism to another country
Leisure travel
Different types of travelLeisure tourism
. visiting for pleasure, enjoyment, relaxation etc . going for a day visit – visitor attractions . staying overnight or short break – city, countryside, stag/hen . going on holiday - short break or longer
. special events – sports, music
. visiting for pleasure, enjoyment, relaxation etc . going for a day visit – visitor attractions . staying overnight or short break – city, countryside, stag/hen . going on holiday - short break or longer
. special events – sports, music
Visiting friends or relatives
Different types of travelVisiting friends or relatives (VFR)
. visiting for pleasure . staying overnight (usually at home of friends/relatives))
. domestic or international travel . visit for an occasion (wedding, birthday, etc)
. visiting for pleasure . staying overnight (usually at home of friends/relatives))
. domestic or international travel . visit for an occasion (wedding, birthday, etc)
Day trips
Different types of travelDay trips
– does not involve an overnight stay:
. visitor attractions . cities for specialist shopping or events . countryside for relaxation or activities.
– does not involve an overnight stay:
. visitor attractions . cities for specialist shopping or events . countryside for relaxation or activities.
Specialist travel
Different types of travelSpecialist travel – this is usually linked with the purpose of travel – a hobby, sport, interest,
or to meet specific needs of the type of customer: . adventure . health . education . heritage, culture . gap year . weddings/honeymoons. . conservation, sustainable tourism, responsible travel o special interests/hobbies/sports
or to meet specific needs of the type of customer: . adventure . health . education . heritage, culture . gap year . weddings/honeymoons. . conservation, sustainable tourism, responsible travel o special interests/hobbies/sports
Business travel
Different types of travelBusiness (corporate) travel – away from the work,
it may or may not involve an overnight stay.
. MICE – Meetings, Incentives, Conferences, Exhibitions
.Training – self or others.
. Short-term work contracts – elsewhere in the UK or overseas
it may or may not involve an overnight stay.
. MICE – Meetings, Incentives, Conferences, Exhibitions
.Training – self or others.
. Short-term work contracts – elsewhere in the UK or overseas
Types of travel + tourism customer
Individuals + couples
Types of travel + tourism customersIndividuals + couples
. Individuals: own their own or with a friend, often single supplement
charged and may join tours for company . Couples: may be on their own or join with other couples
. Individuals: own their own or with a friend, often single supplement
charged and may join tours for company . Couples: may be on their own or join with other couples
Families
Types of travel + tourism customersFamilies
. Many different types:
single parent; young children; teenagers; multi-generational etc
. Specific sets of needs
. Different budgets
. Many different types:
single parent; young children; teenagers; multi-generational etc
. Specific sets of needs
. Different budgets
Groups
Types of travel + tourism customersGroups
. Diverse groups: educational; special interest;
hen/stag/older people etc
. One group but a group made up of different individuals with different needs
. Diverse groups: educational; special interest;
hen/stag/older people etc
. One group but a group made up of different individuals with different needs
Specific needs
Types of travel + tourism customersCustomers with specific needs
. T+T organisations need to cater to specific customers needs – seen and unseen
. Language + Culture – different languages, food alternatives
. Mobility problems – wheelchair access, slopes, lifts
. Hearing + visual impairment – induction loops, well lit areas, large print
. Medical conditions – first aid available
. T+T organisations need to cater to specific customers needs – seen and unseen
. Language + Culture – different languages, food alternatives
. Mobility problems – wheelchair access, slopes, lifts
. Hearing + visual impairment – induction loops, well lit areas, large print
. Medical conditions – first aid available
Business travel
Different types of travelBusiness (corporate)
. Seen by the T+T industry as highly profitable as they
require convenience and will pay for it – company pays.
. Specific needs as corporate: high standard; business facilities . Many T+T companies have business sections to cater to their needs
. Seen by the T+T industry as highly profitable as they
require convenience and will pay for it – company pays.
. Specific needs as corporate: high standard; business facilities . Many T+T companies have business sections to cater to their needs
Types of tourism: Natural
Nature: mountain tourism
Types of tourismMountain tourism
Mountain tourism has boomed in recent years to over 50 million people p.a.
Traditional mountain holidays like skiing, climbing and walking have always been popular, but now many extreme sports have become very popular e.g. hang gliding, mountain biking.
. Mountain tourism is now year-round.
. Winter snow provides a range of activities, like skiing, snowboarding and tobogganing
. Summer activities include walking, mountain biking or more extreme sports as well as golf and tennis.
Mountain tourism has boomed in recent years to over 50 million people p.a.
Traditional mountain holidays like skiing, climbing and walking have always been popular, but now many extreme sports have become very popular e.g. hang gliding, mountain biking.
. Mountain tourism is now year-round.
. Winter snow provides a range of activities, like skiing, snowboarding and tobogganing
. Summer activities include walking, mountain biking or more extreme sports as well as golf and tennis.
Nature: volcanic + geothermal
Types of tourismVolcano and geothermal tourism
Volcanoes have attracted people for hundreds of years.
Geothermal features have been popular not just to view but also for improving health. Spas are often located here. These are examples of natural phenomena.
Volcano tourism can be individuals and groups doing it on their own
or
. Guided visits with experienced tour guides - often geologists or volcanologists
Volcanoes have attracted people for hundreds of years.
Geothermal features have been popular not just to view but also for improving health. Spas are often located here. These are examples of natural phenomena.
Volcano tourism can be individuals and groups doing it on their own
or
. Guided visits with experienced tour guides - often geologists or volcanologists
Nature: coastal tourism
Types of tourismCoast includes, beaches, cliffs, rocks, estuaries and coral reefs
Much of the costal tourism is based upon: sun, beaches, sea and scenic views
Beaches:
. sunbathing
. sand play
. volleyball
. tidal pools
. picnics & BBQs
. beachside restaurants
Water based activities:
. swimming
. Jet skiing
. windsurfing
. kite surfing
. sea kayaking
. boat rides
. fishing trips
. snorkelling & diving
Scenic views
. coastal location often offer scenic views which attract visitors
. cliff top walking
. bird watching
. wildlife watching
Nature: river tourism
Types of tourismRiver tourism
Rivers across the world attract people wanting to boat, fish and those interested in the riverside wildlife
. River cruises are common in many countries
. These may be day cruises or evening dinner cruises
. Along some of the longer rivers the cruise can be for several days or longer
. Tourists can hire their own boats to cruise the rivers
. River fishing can be day activity or a holiday
. Fishermen will travel for their own enjoyment or competition
. Different ways of getting down a river are popular tourist activities
. Rafting
. Kayaking
. Canoeing
. Boating
+ swimming
Rivers across the world attract people wanting to boat, fish and those interested in the riverside wildlife
. River cruises are common in many countries
. These may be day cruises or evening dinner cruises
. Along some of the longer rivers the cruise can be for several days or longer
. Tourists can hire their own boats to cruise the rivers
. River fishing can be day activity or a holiday
. Fishermen will travel for their own enjoyment or competition
. Different ways of getting down a river are popular tourist activities
. Rafting
. Kayaking
. Canoeing
. Boating
+ swimming
Nature: lake tourism
Types of tourismLake tourism
Lakes attract tourists especially in countries or areas many miles away from the coast
. Water-sports on lakes are common, sometimes motorised often not
. Sailing
. Kayak/canoeing
. Swimming
. Windsurfing
. Water skiing etc
Beaches & grass areas:
. sunbathing
. picnics & BBQs
. Lake fishing can be day activity or a holiday
. Fishermen will travel for their own enjoyment or competition
. Some lakes are specifically stocked with certain types of fish for competitions
. Tracks often go around the lake.
. Walking/running
. Cycling
. Wildlife opportunities
. Accommodation may be located lakeside
. Children’s activity camps particularly in the USA are often located by lakes
Lakes attract tourists especially in countries or areas many miles away from the coast
. Water-sports on lakes are common, sometimes motorised often not
. Sailing
. Kayak/canoeing
. Swimming
. Windsurfing
. Water skiing etc
Beaches & grass areas:
. sunbathing
. picnics & BBQs
. Lake fishing can be day activity or a holiday
. Fishermen will travel for their own enjoyment or competition
. Some lakes are specifically stocked with certain types of fish for competitions
. Tracks often go around the lake.
. Walking/running
. Cycling
. Wildlife opportunities
. Accommodation may be located lakeside
. Children’s activity camps particularly in the USA are often located by lakes
Nature: flora + forna
Types of tourismNature areas cover a large proportion of land, from World Heritage Sites and National parks to local parks and green spaces.
National Parks
. 9% of England/Wales = National Park
. 15 National Parks
. Created in 1950s/60s
. Areas of beauty & ecological interest
. Most land privately owned + National Trust
. Parks funded by the government
Areas of Outstanding Natural Beauty
. Area of beauty – important to protect
. 40 AONBs = 18% of countryside
World Heritage sites
. UNESCO designated sites
. Aim – to protect cultural & natural sites,
of outstanding value
. UK has 28 World Heritage Sites
Parks
. Parks in every town and city
. Botanical parks and Royal parks
. Parks often feature attractions
National Parks
. 9% of England/Wales = National Park
. 15 National Parks
. Created in 1950s/60s
. Areas of beauty & ecological interest
. Most land privately owned + National Trust
. Parks funded by the government
Areas of Outstanding Natural Beauty
. Area of beauty – important to protect
. 40 AONBs = 18% of countryside
World Heritage sites
. UNESCO designated sites
. Aim – to protect cultural & natural sites,
of outstanding value
. UK has 28 World Heritage Sites
Parks
. Parks in every town and city
. Botanical parks and Royal parks
. Parks often feature attractions
Types of tourism: Man-made (built)
Man-made: Cultural tourism
Types of tourismCultural destinations
Explore the culture of a country and its people – as the main aim of the trip or as part of a trip
The World Tourism Organisation (WTO) defines cultural tourism as:
‘persons who satisfy the human need for diversity, tending to raise the cultural level of the individual and giving rise to new knowledge, experience and encounters’.
Types of cultural tourist
1.Purposeful tourist
Main reason for travelling is for a cultural experience – immerse themselves e.g. travels to remote areas
2. Sightseeing tourist
Large part of experience is connected to local culture e.g. museums, religious sites and food
3. Occasional tourist
Doesn’t travel for cultural reasons but may take part in some cultural experiences e.g. museum and food
Explore the culture of a country and its people – as the main aim of the trip or as part of a trip
The World Tourism Organisation (WTO) defines cultural tourism as:
‘persons who satisfy the human need for diversity, tending to raise the cultural level of the individual and giving rise to new knowledge, experience and encounters’.
Types of cultural tourist
1.Purposeful tourist
Main reason for travelling is for a cultural experience – immerse themselves e.g. travels to remote areas
2. Sightseeing tourist
Large part of experience is connected to local culture e.g. museums, religious sites and food
3. Occasional tourist
Doesn’t travel for cultural reasons but may take part in some cultural experiences e.g. museum and food
Man-made: Religious tourism
Types of tourismReligious destinations
Religious tourism or faith tourism is where people travel for pilgrimage, to religious sites or for other spiritual reasons. According to World Tourism Organisation, up to 330 million people for religious reasons.
. Religious tourism often involves visiting mosques, temples, churches etc as part of a holiday experience. Often part of culture tourism
. Religious sites and shrines number in their hundreds around the world.
. Visitors to these may have holidays specific to these places or as part of holiday
. Religious camps, meetings and conferences happen all over the world
Religious tourism or faith tourism is where people travel for pilgrimage, to religious sites or for other spiritual reasons. According to World Tourism Organisation, up to 330 million people for religious reasons.
. Religious tourism often involves visiting mosques, temples, churches etc as part of a holiday experience. Often part of culture tourism
. Religious sites and shrines number in their hundreds around the world.
. Visitors to these may have holidays specific to these places or as part of holiday
. Religious camps, meetings and conferences happen all over the world
Man-made: Event tourism
Types of tourismEvents and entertainment
Events and entertainment. Covers a huge variety of activities and events around the world.
Sports
. Major sports – football & rugby
. Competitions - Commonwealth
. One-off events – F1
Festivals
. Variety inc. music, cultural, food etc.
Commemorative
. events – war, individuals etc
Theatre
. cultural
. plays + musicals
Music
. Festivals – Glastonbury, Reading etc
. Concerts
Seasonal
. Annual or one-off events
. Lapland, Winter Wonderland
. Summer activities
Religious
. services
. festivals
. parades
Events and entertainment. Covers a huge variety of activities and events around the world.
Sports
. Major sports – football & rugby
. Competitions - Commonwealth
. One-off events – F1
Festivals
. Variety inc. music, cultural, food etc.
Commemorative
. events – war, individuals etc
Theatre
. cultural
. plays + musicals
Music
. Festivals – Glastonbury, Reading etc
. Concerts
Seasonal
. Annual or one-off events
. Lapland, Winter Wonderland
. Summer activities
Religious
. services
. festivals
. parades
Man-made: Business tourism
Types of tourismBusiness destinations
. Purpose of visit - to meet for business reasons: MICE
Meetings, Incentives, Conferences, Exhibitions
. It is one of the fastest growing sectors of the tourism industry
Meetings
Meetings are usually a one or two day events held in hotel conference rooms or at convention centres. Example: small group of senior executives or annual shareholder meetings. 
The purpose is to bring together people from one company, industry, or project to address challenges, discuss plans, and set goals.
Incentives
Incentive travel includes all types of rewards a company offers to individual staff, teams, or partners. It’s a way of thanking people for their great performance, boost morale, or increase employee loyalty. 
Incentives can take many different forms – from 5 star luxury resorts to team building style activities or trips to sporting events.
Conferences
Conferences are supersized meetings. They often last one to three days and can vary in size and are about sharing, ideas, networking and research.
Conferences include:
Panels: Experts with questions from the audience. 
Presentations: Leaders may present key information e.g. financial results
Speeches: Speeches often mark the beginning or end of a conference.
Discussions: They can be part of a panel.
Workshops: A small group of participants works on a specific problem case or researches a certain topic.
Exhibitions
Know as trade shows, exhibitions are usually massive events that draw thousands of visitors and exhibitors from around the world. They can last anywhere from several days to a week. Exhibitions are usually very industry-specific and have a well-defined target market. 
Exhibitors go to trade shows to present and promote their product or service, drive business, and network
. Purpose of visit - to meet for business reasons: MICE
Meetings, Incentives, Conferences, Exhibitions
. It is one of the fastest growing sectors of the tourism industry
Meetings
Meetings are usually a one or two day events held in hotel conference rooms or at convention centres. Example: small group of senior executives or annual shareholder meetings. 
The purpose is to bring together people from one company, industry, or project to address challenges, discuss plans, and set goals.
Incentives
Incentive travel includes all types of rewards a company offers to individual staff, teams, or partners. It’s a way of thanking people for their great performance, boost morale, or increase employee loyalty. 
Incentives can take many different forms – from 5 star luxury resorts to team building style activities or trips to sporting events.
Conferences
Conferences are supersized meetings. They often last one to three days and can vary in size and are about sharing, ideas, networking and research.
Conferences include:
Panels: Experts with questions from the audience. 
Presentations: Leaders may present key information e.g. financial results
Speeches: Speeches often mark the beginning or end of a conference.
Discussions: They can be part of a panel.
Workshops: A small group of participants works on a specific problem case or researches a certain topic.
Exhibitions
Know as trade shows, exhibitions are usually massive events that draw thousands of visitors and exhibitors from around the world. They can last anywhere from several days to a week. Exhibitions are usually very industry-specific and have a well-defined target market. 
Exhibitors go to trade shows to present and promote their product or service, drive business, and network
Teaching + Learning resources
Teaching + learning resources for this topic feature more comprehensive notes and student activities
Over 50 pages of well laid out notes and student activities
Ownership + operating aims
Private sector
Ownership + operating aimsProfit making businesses
Aims to make a profit, grow market share, increase revenue, diversify products/services, create brand recognition etc.
Sole trader business is usually a small business, own by one person. No limited liability – so personally responsible for all debts.
Private limited company owned by shareholders. Shares bought + sold with permission of shareholders. Limited liability means not personally liable for debt. Finances reported to Companies House, but not made public.
Public limited company (PLC) is owned by shareholders. Shares can be bought and sold by anyone on the stock exchange. If the business makes a profit the shareholders receive a share of the profit – a dividend.
Aims to make a profit, grow market share, increase revenue, diversify products/services, create brand recognition etc.
Sole trader business is usually a small business, own by one person. No limited liability – so personally responsible for all debts.
Private limited company owned by shareholders. Shares bought + sold with permission of shareholders. Limited liability means not personally liable for debt. Finances reported to Companies House, but not made public.
Public limited company (PLC) is owned by shareholders. Shares can be bought and sold by anyone on the stock exchange. If the business makes a profit the shareholders receive a share of the profit – a dividend.
Public sector organisations
Ownership + operating aimsLargely owned and funded by the government – Department for Digital, Culture Media + Sports (DCMS)
Funding: central government grants, local government, lottery funding etc.
Government oversees directly or indirectly a large number of T+T organisations.
DCMS is responsible for national tourist boards + agencies – Visit Britain, Visit Scotland, Visit England, Visit Wales, Visit NI + local tourist information centres.
Government is also responsible for many of the most popular tourist attractions – major museums.
The government sets out the criteria that funded organisations must meet, including:
. operate to at least break-even point
. reinvest any profits back into their products/services
. provide value for money with the funds they receive
. provide the highest quality customer service
Most employees are paid but many have volunteers.
Funding: central government grants, local government, lottery funding etc.
Government oversees directly or indirectly a large number of T+T organisations.
DCMS is responsible for national tourist boards + agencies – Visit Britain, Visit Scotland, Visit England, Visit Wales, Visit NI + local tourist information centres.
Government is also responsible for many of the most popular tourist attractions – major museums.
The government sets out the criteria that funded organisations must meet, including:
. operate to at least break-even point
. reinvest any profits back into their products/services
. provide value for money with the funds they receive
. provide the highest quality customer service
Most employees are paid but many have volunteers.
Voluntary sector
Ownership + operating aimsAims of charities differ but may include:.
. reserve and protect the environment – landscape, buildings etc
. be sustainable – minimise impact
. promote arts, science, culture + heritage
. inform and educate visitors
. promote community development
Voluntary sector organisations are usually charities and get funding from:
. government (grants, loans etc)
. donations from the public
. entry fees, parking, merchandise etc
Charities are regulated by the Charity Commission. They are non profit – this means any profits are used for their cause, reinvested
. reserve and protect the environment – landscape, buildings etc
. be sustainable – minimise impact
. promote arts, science, culture + heritage
. inform and educate visitors
. promote community development
Voluntary sector organisations are usually charities and get funding from:
. government (grants, loans etc)
. donations from the public
. entry fees, parking, merchandise etc
Charities are regulated by the Charity Commission. They are non profit – this means any profits are used for their cause, reinvested
The key sectors of the travel + tourism industry - components of their role, and the products and services they offer to different types of customer
Transport principals
Transport gateways + hubs
Key sectors of the travel + tourism industry: Transport principalsRail terminals
Connecting from one train to another or on a corridor,
perhaps connecting with other land transport - taxi or bus
Air terminals - airports
Connecting from one flight to another (in transit) or one flight perhaps connecting with other land transportation
Ferry terminals
Connecting sea transport to land transport - road and rail
Cruise terminals
Connecting sea transport to land transport - road and rail
Connecting from one train to another or on a corridor,
perhaps connecting with other land transport - taxi or bus
Air terminals - airports
Connecting from one flight to another (in transit) or one flight perhaps connecting with other land transportation
Ferry terminals
Connecting sea transport to land transport - road and rail
Cruise terminals
Connecting sea transport to land transport - road and rail
Air transport
Key sectors of the travel + tourism industry: Transport principalsAir transport – types of flights
. domestic - within the country
. international - country to country
. direct flights – not stopping
. indirect flights – via other airports
National carriers
Scheduled flights
Chartered flights
Low cost airlines
Private jet
. domestic - within the country
. international - country to country
. direct flights – not stopping
. indirect flights – via other airports
National carriers
Scheduled flights
Chartered flights
Low cost airlines
Private jet
Airports
Key sectors of the travel + tourism industry: Transport principalsAirports
Terminals for all flights or for: domestic - within the country and international - country to country
Cater to inbound and outbound passengers
Airports not only provide a range of airline services
but also a variety of connected services
e.g. accommodation, transport and information
Services, to enhance the customer experience.
These associated businesses pay rent to the airport to operate there, adding the airport’s revenue.
Cater to inbound and outbound passengers
Airports not only provide a range of airline services
but also a variety of connected services
e.g. accommodation, transport and information
Services, to enhance the customer experience.
These associated businesses pay rent to the airport to operate there, adding the airport’s revenue.
Ferries
Key sectors of the travel + tourism industry: Transport principalsFerries
As a group of islands the UK has a large number of ferry services to a number of countries offering a service for passengers with and without vehicles.
As a group of islands the UK has a large number of ferry services to a number of countries offering a service for passengers with and without vehicles.
Ferry terminal
Key sectors of the travel + tourism industry: Transport principalsFerry Terminal is a location for the boarding,
departure, or arrival of a ferry service.
Ferry terminals cater to freight and passengers.
Passengers can either be walk on or with a vehicle
– car or coach.
Large ferry terminals have facilities similar to airports:
. Shops . Currency exchange. Food & drink
.Toilets/Showers/Baby changing. . First aid
. Internet access . Left luggage . Car charging points
Ferry terminals are part of an integrated transport system connected to taxis, buses, coach and train services
departure, or arrival of a ferry service.
Ferry terminals cater to freight and passengers.
Passengers can either be walk on or with a vehicle
– car or coach.
Large ferry terminals have facilities similar to airports:
. Shops . Currency exchange. Food & drink
.Toilets/Showers/Baby changing. . First aid
. Internet access . Left luggage . Car charging points
Ferry terminals are part of an integrated transport system connected to taxis, buses, coach and train services
Cruises
Key sectors of the travel + tourism industry: Transport principalsCruises
Oceans, sea, rivers and lakes
Ocean cruise facts:
. Passengers: 26.7 million
. Jobs: 109,000
. Revenue: $134 billion
Growing 4% pa with 19 new ships due to launch in 2020
Key benefits:
. All inclusive
. On board entertainment
. Visit a range of cities + countries (1 a day)
Cruises in creasing popular across the
age groups, themed cruises for target market
Oceans, sea, rivers and lakes
Ocean cruise facts:
. Passengers: 26.7 million
. Jobs: 109,000
. Revenue: $134 billion
Growing 4% pa with 19 new ships due to launch in 2020
Key benefits:
. All inclusive
. On board entertainment
. Visit a range of cities + countries (1 a day)
Cruises in creasing popular across the
age groups, themed cruises for target market
Cruise terminal
Key sectors of the travel + tourism industry: Transport principalsExample: Southampton Terminal
Southampton has 4 cruise terminals:
QEII, Ocean, City, and Mayflower
Deep water berths means it can accommodate
any size cruise ship
Southampton unusually has high water for 80% of
the time, meaning it has easy access for cruise ships
Cruise terminal handles 500 ships per year - 2 million passengers
Facilities
Hotels – some local hotels offer ‘cruise packages’, one night stay + breakfast + transfer to cruise terminal
Shuttle transfer from Heathrow etc, Car parking, Restaurant, Shops, Toilets, Internet – Shopping centre nearby
Southampton has 4 cruise terminals:
QEII, Ocean, City, and Mayflower
Deep water berths means it can accommodate
any size cruise ship
Southampton unusually has high water for 80% of
the time, meaning it has easy access for cruise ships
Cruise terminal handles 500 ships per year - 2 million passengers
Facilities
Hotels – some local hotels offer ‘cruise packages’, one night stay + breakfast + transfer to cruise terminal
Shuttle transfer from Heathrow etc, Car parking, Restaurant, Shops, Toilets, Internet – Shopping centre nearby
Coach + bus travel
Key sectors of the travel + tourism industry: Transport principals. Coach travel can be part of a package or as separate holiday or a mode of transport.
. Coach travel is often a multi-centre holiday, where people visit a number of places
. Coach day trips are popular to attractions and events.
. Coach trips can cheap travel option (or for those who do not like to fly) and are popular in the ‘grey market’.
. Coach travel between airports and cities and city to city is a cost effective way to travel
. Coaches have become more luxury with toilets, Wifi, onboard entertainment + refreshments.
Buses provide a cheap and convenient way to travel especially in large towns and cities where the service is regular. Rural areas have less frequent services.
Sightseeing tours – like Big Bus – provide ‘hop-on hop-off’ services as well as information about the city.
. Coach travel is often a multi-centre holiday, where people visit a number of places
. Coach day trips are popular to attractions and events.
. Coach trips can cheap travel option (or for those who do not like to fly) and are popular in the ‘grey market’.
. Coach travel between airports and cities and city to city is a cost effective way to travel
. Coaches have become more luxury with toilets, Wifi, onboard entertainment + refreshments.
Buses provide a cheap and convenient way to travel especially in large towns and cities where the service is regular. Rural areas have less frequent services.
Sightseeing tours – like Big Bus – provide ‘hop-on hop-off’ services as well as information about the city.
Coach + bus terminal
Key sectors of the travel + tourism industry: Transport principals. Coach travel may be domestic or international
. Waiting time tends to less at coach terminals than airports therefore less facilities are needed
. Facilities may include:
. Toilets
. Waiting rooms
. Wifi
. Shops – food and drinks
. Left luggage
. Bus terminals may have basic facilities like toilets, food and drinks outlets.
. People at bus terminal tend to only be there for short periods so require less facilities.
. Covered or indoor seating areas are provided
. Waiting time tends to less at coach terminals than airports therefore less facilities are needed
. Facilities may include:
. Toilets
. Waiting rooms
. Wifi
. Shops – food and drinks
. Left luggage
. Bus terminals may have basic facilities like toilets, food and drinks outlets.
. People at bus terminal tend to only be there for short periods so require less facilities.
. Covered or indoor seating areas are provided
Rail travel
Key sectors of the travel + tourism industry: Transport principalsNational and international networks
. rail networks link airports, sea ports etc with major towns and cities and include international routes (Eurostar runs from London to Paris
via tunnel)
Standards
. vary from country to country - often need government subsidy
or are totally owned by governments
. French TGV are high speed trains designed for tourists
. Different classes of seat
. Fast travel and cheap if booked in advanced
Scheduled rail operators
Short and long distance – many or few stops
Intercity: East Coast – West Coast – Midlands – Great Eastern – Great Western
Regional: Network South East – North East – North West - Scotland
Local: Docklands – Mersey rail – Wrexham & Shropshire
Rail tours & holidays
Short or long distance
Luxury (Orient Express)
Heritage (Tourist attraction)
Compass Tours
DPS Rail tours
Stobart Pullman
Pathfinder Tours
Scottish Railway Preservation Society
Venice-Simplon Orient Express
Vintage Trains
Retro Rail tours
Green Express Rail tours
Kingfisher Rail tours
. rail networks link airports, sea ports etc with major towns and cities and include international routes (Eurostar runs from London to Paris
via tunnel)
Standards
. vary from country to country - often need government subsidy
or are totally owned by governments
. French TGV are high speed trains designed for tourists
. Different classes of seat
. Fast travel and cheap if booked in advanced
Scheduled rail operators
Short and long distance – many or few stops
Intercity: East Coast – West Coast – Midlands – Great Eastern – Great Western
Regional: Network South East – North East – North West - Scotland
Local: Docklands – Mersey rail – Wrexham & Shropshire
Rail tours & holidays
Short or long distance
Luxury (Orient Express)
Heritage (Tourist attraction)
Compass Tours
DPS Rail tours
Stobart Pullman
Pathfinder Tours
Scottish Railway Preservation Society
Venice-Simplon Orient Express
Vintage Trains
Retro Rail tours
Green Express Rail tours
Kingfisher Rail tours
Rail terminal
Key sectors of the travel + tourism industry: Transport principalsSt. Pancras Station, London
Opened in 1868 – expansion and renovation in 2000s to include an International Terminus at a
cost of £800 million for the Eurostar – connecting the UK to France by rail via the Channel Tunnel.
Eurostar provides services to Germany, Italy, Netherlands and Spain.
Rail services via four railway companies to the Midlands and the South East.
Connections
Connected to King Cross station and connects to
all other London railway stations via the underground system.
Direct connections to London airports including Heathrow, London Gatwick, Luton and London City Airport.
Taxis and bus services available at the station.
Facilities
Hotels, Car parking, Restaurants, Bars, ATMs, Bicycle racks, Farmers’ market, Shops, Toilets + Showers, Left luggage, Internet, Bureau de Change
Departure lounge – including a dedicated Eurostar lounge
Opened in 1868 – expansion and renovation in 2000s to include an International Terminus at a
cost of £800 million for the Eurostar – connecting the UK to France by rail via the Channel Tunnel.
Eurostar provides services to Germany, Italy, Netherlands and Spain.
Rail services via four railway companies to the Midlands and the South East.
Connections
Connected to King Cross station and connects to
all other London railway stations via the underground system.
Direct connections to London airports including Heathrow, London Gatwick, Luton and London City Airport.
Taxis and bus services available at the station.
Facilities
Hotels, Car parking, Restaurants, Bars, ATMs, Bicycle racks, Farmers’ market, Shops, Toilets + Showers, Left luggage, Internet, Bureau de Change
Departure lounge – including a dedicated Eurostar lounge
Car travel
Key sectors of the travel + tourism industry: Transport principalsCar hire
Hire car (or rental) companies operate in most towns and cities. Some are local, others are national or international companies
. They offer:
. a range of vehicles to suit customer needs
. airport pickup and drop-off
. one way hire
. insurance cover
Taxis + Ubers
Taxis + Ubers are used primarily for short journeys. Tourists more likely to use taxis that they can hail in the road.
Taxis are also used for airport and railway station drop offs and pick-ups.
Private cars
Most domestic holidays + visits use cars as the primary mode of transport.
Private cars are the most convenient ways for most people but traffic congestion can be problem.
Hire car (or rental) companies operate in most towns and cities. Some are local, others are national or international companies
. They offer:
. a range of vehicles to suit customer needs
. airport pickup and drop-off
. one way hire
. insurance cover
Taxis + Ubers
Taxis + Ubers are used primarily for short journeys. Tourists more likely to use taxis that they can hail in the road.
Taxis are also used for airport and railway station drop offs and pick-ups.
Private cars
Most domestic holidays + visits use cars as the primary mode of transport.
Private cars are the most convenient ways for most people but traffic congestion can be problem.
Tour Operators + Travel Agents
Tour operators
Key sectors of the travel + tourism industry: Tour operatorsRole of the Tour Operator:
Tour operators create holidays by putting different components together:
. Accommodation
. Transport
. Activities
Different packages are combined to meet the customer needs. All the package holiday details are contained in their brochure – in travel agents of online.
There are over 2,000 UK tour operators
Package Holiday Directive (2018)
Defined what a package holiday is.
Previously packages were sold that had multiple contracts with different suppliers.
Tour operators create holidays by putting different components together:
. Accommodation
. Transport
. Activities
Different packages are combined to meet the customer needs. All the package holiday details are contained in their brochure – in travel agents of online.
There are over 2,000 UK tour operators
Package Holiday Directive (2018)
Defined what a package holiday is.
Previously packages were sold that had multiple contracts with different suppliers.
Tour operators: markets
Key sectors of the travel + tourism industry: Tour operatorsMass market
. Mass market tourism has dominated for many years. Tour operators sell similar packages in different destinations that appeal to a broad section of holiday makers.
. Mass market tour operators make their profit through sell large numbers of similar value for money holidays. Each holiday has a low profit margin.
Niche market
. Hundreds of tour operators offer specialised package holidays – often tailor-made to meet the customer needs.
. These holidays are considered to be in the niche market
. Niche can include:
. Specific destinations; adventure; safari; ski; eco etc
. Large tour operators may have niche brands selling specialist holidays e.g. TUI own Crystal Ski
. Other niche include Cox + Kings offer luxurious holidays that are created to meet individual needs
. Saga holidays cater for the over 50s market
Tailor-made + dynamic packages
. These types of holidays are growing in popularity as customers are becoming more experienced travellers and seek to customise their own holidays.
. Customisation can incorporate all aspects of the holiday; transport; accommodation; F+B; activities etc
. Travel agents specialise in offering this service
. Mass market tourism has dominated for many years. Tour operators sell similar packages in different destinations that appeal to a broad section of holiday makers.
. Mass market tour operators make their profit through sell large numbers of similar value for money holidays. Each holiday has a low profit margin.
Niche market
. Hundreds of tour operators offer specialised package holidays – often tailor-made to meet the customer needs.
. These holidays are considered to be in the niche market
. Niche can include:
. Specific destinations; adventure; safari; ski; eco etc
. Large tour operators may have niche brands selling specialist holidays e.g. TUI own Crystal Ski
. Other niche include Cox + Kings offer luxurious holidays that are created to meet individual needs
. Saga holidays cater for the over 50s market
Tailor-made + dynamic packages
. These types of holidays are growing in popularity as customers are becoming more experienced travellers and seek to customise their own holidays.
. Customisation can incorporate all aspects of the holiday; transport; accommodation; F+B; activities etc
. Travel agents specialise in offering this service
Tour operators: planning, contracts + selling
Key sectors of the travel + tourism industry: Tour operatorsPlanning
. Market research to find out requirements of potential market (use previous seasons data )
. Selection of resorts, accommodation, airports, transfers, tours etc
. Estimate number of customer for the package
. Negotiate with suppliers - quantity, quality and price
. Planning 12 - 18 month before offered on sale
Contracts
. Commitment/guarantee guarantee to pay for a certain amount of seats, rooms etc
. Allocation/release back beds booked but can be returned if not sold by a certain date
. Adhoc agree a discounted rate and book when needed
. Pricing pricing strategy based on many things eg. competition / differ
. Brochures produced - inc online - sometimes help from travel agents
. Sales tour operators and travel agents sell packages
Tour Operator Pricing
. Profits Tour Operators make on average 2-3%
. Pricing risks prices set 12 months before - exchange rates can change, fuel costs rise etc
. Disasters natural disasters, terrorism, exchange rates etc can make a destination unpopular
. Market research to find out requirements of potential market (use previous seasons data )
. Selection of resorts, accommodation, airports, transfers, tours etc
. Estimate number of customer for the package
. Negotiate with suppliers - quantity, quality and price
. Planning 12 - 18 month before offered on sale
Contracts
. Commitment/guarantee guarantee to pay for a certain amount of seats, rooms etc
. Allocation/release back beds booked but can be returned if not sold by a certain date
. Adhoc agree a discounted rate and book when needed
. Pricing pricing strategy based on many things eg. competition / differ
. Brochures produced - inc online - sometimes help from travel agents
. Sales tour operators and travel agents sell packages
Tour Operator Pricing
. Profits Tour Operators make on average 2-3%
. Pricing risks prices set 12 months before - exchange rates can change, fuel costs rise etc
. Disasters natural disasters, terrorism, exchange rates etc can make a destination unpopular
Tour operators: pricing
Key sectors of the travel + tourism industry: Tour operatorsTour Operator Pricing
. Profits Tour Operators make on average 2-3%
. Pricing risks prices set 12 months before - exchange rates can change, fuel costs rise etc
. Disasters natural disasters, terrorism, exchange rates etc can make a destination unpopular
Tour operators and holiday pricing
. Peak and Off-peak Packages sold as summer holidays (May to October)
and winter holidays (November - April)
In Europe the summer season is the busiest (best weather + school holidays)
. Pricing: higher demand = higher prices - lower demand = lower prices
. Flight times more efficient if aircraft are used more frequently - day and night
daytime = higher demand = higher prices (weekends more popular)
nightime = lower demand = lower prices (daytime less popular)
Accommodation supplements (extras)
Tour operators pay hotels per room - charge customers per person
Most rooms double rooms - single occupancy have to pay for two people (per room)
. Profits Tour Operators make on average 2-3%
. Pricing risks prices set 12 months before - exchange rates can change, fuel costs rise etc
. Disasters natural disasters, terrorism, exchange rates etc can make a destination unpopular
Tour operators and holiday pricing
. Peak and Off-peak Packages sold as summer holidays (May to October)
and winter holidays (November - April)
In Europe the summer season is the busiest (best weather + school holidays)
. Pricing: higher demand = higher prices - lower demand = lower prices
. Flight times more efficient if aircraft are used more frequently - day and night
daytime = higher demand = higher prices (weekends more popular)
nightime = lower demand = lower prices (daytime less popular)
Accommodation supplements (extras)
Tour operators pay hotels per room - charge customers per person
Most rooms double rooms - single occupancy have to pay for two people (per room)
Tour operators: exchange rates
Key sectors of the travel + tourism industry: Tour operatorsTour operators and exchange rates
. Exchange rates many products and services are bought in foreign currencies inc. fuel
Difference when bought and sold can see change in exchange rate - difference between profit and loss for tour operators
. Surcharges tour operators can charge customers extra after they have paid
(UK law says first 2% of cost increase not passed to the customer)
. Exchange rates many products and services are bought in foreign currencies inc. fuel
Difference when bought and sold can see change in exchange rate - difference between profit and loss for tour operators
. Surcharges tour operators can charge customers extra after they have paid
(UK law says first 2% of cost increase not passed to the customer)
Tour operators: consumer protection
Key sectors of the travel + tourism industry: Tour operatorsTour operators and consumer protection
. Tour operators can quickly go from profitable to bankrupt and customers can lose a lot of money
. Customer protection scheme many countries have schemes to protect customers.
So if a tour operator goes bankrupt customers get compensated - their money back.
ABTA (UK) has tour operators as members - if a member goes bankrupt their customers will get compensation (their money back). If they are on holiday they will get flown home.
. Tour operators can quickly go from profitable to bankrupt and customers can lose a lot of money
. Customer protection scheme many countries have schemes to protect customers.
So if a tour operator goes bankrupt customers get compensated - their money back.
ABTA (UK) has tour operators as members - if a member goes bankrupt their customers will get compensation (their money back). If they are on holiday they will get flown home.
Travel agents: role
Key sectors of the travel + tourism industry: Travel agentsTravel agents
Travel agents create and arrange holidays for their customers
. Most cater for the leisure market – package holidays, whilst some specialise or cater to the business market
. Travel agents can be on high streets and/or online
Role
. Provide advise + information on products and services
. Sell + book holidays
. Independents sell from a variety of providers
. Some agents linked to tour operators + sell own brands
. Travel agents receive a commission from the tour operators
. Customers can pay a fee for agents to put together a tailor-made package
Products + services
. Provide information on travel + holidays
. Book travel + holidays - package and specialist
-travel: flights; ferries; car hire + trains
-accommodation: hotels; self-catering; camping etc
-other services: airport parking; travel insurance; excursions; transfers etc
. Create tailor-made or dynamic package holidays
. Offer advise on passports, visa, health issues inc. vaccinations
Travel agents create and arrange holidays for their customers
. Most cater for the leisure market – package holidays, whilst some specialise or cater to the business market
. Travel agents can be on high streets and/or online
Role
. Provide advise + information on products and services
. Sell + book holidays
. Independents sell from a variety of providers
. Some agents linked to tour operators + sell own brands
. Travel agents receive a commission from the tour operators
. Customers can pay a fee for agents to put together a tailor-made package
Products + services
. Provide information on travel + holidays
. Book travel + holidays - package and specialist
-travel: flights; ferries; car hire + trains
-accommodation: hotels; self-catering; camping etc
-other services: airport parking; travel insurance; excursions; transfers etc
. Create tailor-made or dynamic package holidays
. Offer advise on passports, visa, health issues inc. vaccinations
Travel agents
Key sectors of the travel + tourism industry: Travel agentsTypes of travel agents:
. Miniple
. Multiple
. Independent
. Franchise
. Online
. Call centre
. Specialist
Travel agencies - terms and conditions
Travel agent sells tour operators’ products for a commission (a fee of 10-15%)
More for ancillary services - travel insurance & exchange (15-27%)
Agreements
. Travel agent follow policies and procedures:
. issuing tickets, vouchers and other documents
. cancellations and refunds
. displaying tour operators’ brochures
. taken customer payments
Consumer protection
Travel agents have scheme same as tour operators to protect customers
American Society Travel Agents (ASTA) professional body - reassure customers
International Air Transport Association (IATA) linked with travel agents and helps them with booking, payments, etc.
. Miniple
. Multiple
. Independent
. Franchise
. Online
. Call centre
. Specialist
Travel agencies - terms and conditions
Travel agent sells tour operators’ products for a commission (a fee of 10-15%)
More for ancillary services - travel insurance & exchange (15-27%)
Agreements
. Travel agent follow policies and procedures:
. issuing tickets, vouchers and other documents
. cancellations and refunds
. displaying tour operators’ brochures
. taken customer payments
Consumer protection
Travel agents have scheme same as tour operators to protect customers
American Society Travel Agents (ASTA) professional body - reassure customers
International Air Transport Association (IATA) linked with travel agents and helps them with booking, payments, etc.
Visitor attractions
Visitor attractions: natural
Key sectors of the travel + tourism industry: Visitor attractions. UK visitor attractions are important of domestic tourism + inbound tourists
Purpose: entertainment; education + recreation
Attraction facilities:
. Parking . Cafes/Restaurants
. Gift shops . Information (displays, apps etc)
Nature
. Include: national parks (15); AONB; coastlines; mountains; lakes; parks and beaches
Purpose: entertainment; education + recreation
Attraction facilities:
. Parking . Cafes/Restaurants
. Gift shops . Information (displays, apps etc)
Nature
. Include: national parks (15); AONB; coastlines; mountains; lakes; parks and beaches
Visitor attractions: man-made (built)
Key sectors of the travel + tourism industry: Visitor attractionsMan-made
. These sector covers a wide range of attractions from museums to theme parks.
. UK museums are world famous – British, V+A, Science, Natural History – and attract millions of visitors each year.
. UK famous for its historic buildings. National Trust and English Heritage oversee many of these including: Stonehenge; Blenheim Palace; Kenilworth Castle; Edinburgh Castle etc
. Sporting events in the UK and Globally attract visitors from around the world. The Olympics and Football World Cup are the biggest with Premier League, Wimbledon, Grand prix, Open Golf, London Marathon etc.
. Special events include festivals + parades which include: Notting Hill Carnival; Edinburgh Festival; Glastonbury, Reading music festivals
. These sector covers a wide range of attractions from museums to theme parks.
. UK museums are world famous – British, V+A, Science, Natural History – and attract millions of visitors each year.
. UK famous for its historic buildings. National Trust and English Heritage oversee many of these including: Stonehenge; Blenheim Palace; Kenilworth Castle; Edinburgh Castle etc
. Sporting events in the UK and Globally attract visitors from around the world. The Olympics and Football World Cup are the biggest with Premier League, Wimbledon, Grand prix, Open Golf, London Marathon etc.
. Special events include festivals + parades which include: Notting Hill Carnival; Edinburgh Festival; Glastonbury, Reading music festivals
Accommodation
Accommodation
Key sectors of the travel + tourism industry: AccommodationCatered
Hotels
Catered accommodation – business + leisure
Independent + chain hotels
Range of quality 1 – 5 stars + facilities
Different style of rooms (suite, double, twin)
Budget – Premier Inn
Luxury – Hilton
Facilities:
. Food + beverage (bars + restaurants)
. Swimming pool . Gym . Spa. . Toiletries
Business facilities:
. Meeting rooms. . Conference facilities
B+B - Guest houses
Most are family run and provide breakfasts – sometimes dinner.
Facilities limited.
Hotels
Catered accommodation – business + leisure
Independent + chain hotels
Range of quality 1 – 5 stars + facilities
Different style of rooms (suite, double, twin)
Budget – Premier Inn
Luxury – Hilton
Facilities:
. Food + beverage (bars + restaurants)
. Swimming pool . Gym . Spa. . Toiletries
Business facilities:
. Meeting rooms. . Conference facilities
B+B - Guest houses
Most are family run and provide breakfasts – sometimes dinner.
Facilities limited.
Accommodation
Key sectors of the travel + tourism industry: AccommodationSelf-catering
Motels
. Roadside (motorway service stations) for motorists, offering bed (perhaps breakfast)
Very popular in large countries (USA)
Apartments
Self catered mainly in cities for family or groups.
Air BnB
Provided by individuals - rooms or entire properties.
Usually self catered
Hostels
. For ‘backpackers’ basic, cheap and communal
Camping + Caravans
Self catering – cheaper. Family focused. Clamping: yurts + tepees
Sites have a range of facilities
Motels
. Roadside (motorway service stations) for motorists, offering bed (perhaps breakfast)
Very popular in large countries (USA)
Apartments
Self catered mainly in cities for family or groups.
Air BnB
Provided by individuals - rooms or entire properties.
Usually self catered
Hostels
. For ‘backpackers’ basic, cheap and communal
Camping + Caravans
Self catering – cheaper. Family focused. Clamping: yurts + tepees
Sites have a range of facilities
Trade associations, government departments and regulatory bodies
Trade Associations
Key sectors of the travel + tourism industry: Trade associationsABTA
Association of British Travel Agents
Tour operators + travel agents members follow code of conduct: accurate advertising; fair booking terms; customer complaints. Arbitration for customers.
ANTOR
Association of National Tourist
Office Representatives
Represents tourist offices – chance to share ideas through networking. Comments on issues that affect the T+T industry
AITO
Association of Independent Tour Operators
Represents tour operators – have a charter + code of business practice: truthful descriptions + get customer feedback to maintain standards
IATA
International Air Transport Association
Represents 265 world airlines. Creates and enforces safety measures for airlines. Travel agents have to sell tickets only for IATA airlines.
Association of British Travel Agents
Tour operators + travel agents members follow code of conduct: accurate advertising; fair booking terms; customer complaints. Arbitration for customers.
ANTOR
Association of National Tourist
Office Representatives
Represents tourist offices – chance to share ideas through networking. Comments on issues that affect the T+T industry
AITO
Association of Independent Tour Operators
Represents tour operators – have a charter + code of business practice: truthful descriptions + get customer feedback to maintain standards
IATA
International Air Transport Association
Represents 265 world airlines. Creates and enforces safety measures for airlines. Travel agents have to sell tickets only for IATA airlines.
Government depts + regularities bodies
Key sectors of the travel + tourism industry: Regularity bodies FCDO
Foreign Commonwealth + Development Office
Govt. department responsible for relations with other countries.
Gives travel advise – what the situation is in every country.
Where it is safe to travel. Responsible for bringing stranded citizens home.
CAA
Civil Aviation Authority
Regulates UK civil aviation. Statutory body that issues licences to fly. Tour operators must be members of ATOL and provide a bond. This bond is used if a company goes bankrupt to fly passengers home.
DCMS
Department Culture, Media + Sport
Govt. department responsible for tourism.
To promote UK tourism and T+T businesses
Foreign Commonwealth + Development Office
Govt. department responsible for relations with other countries.
Gives travel advise – what the situation is in every country.
Where it is safe to travel. Responsible for bringing stranded citizens home.
CAA
Civil Aviation Authority
Regulates UK civil aviation. Statutory body that issues licences to fly. Tour operators must be members of ATOL and provide a bond. This bond is used if a company goes bankrupt to fly passengers home.
DCMS
Department Culture, Media + Sport
Govt. department responsible for tourism.
To promote UK tourism and T+T businesses
Information + promotional service providers
Tourist boards
Key sectors of the travel + tourism industry: Information providersTourist boards - National
VisitBritain/England/Wales/Scotland/NI
. Aims of each is to promote tourism
. To promote and expand tourist economic activity
. Provide marketing materials (brochures, leaflets etc)
. Focus on special events
Example: Visit Britain promotes destinations outside of London
Tourist boards – Regional
Each region promotes its local destinations + attractions as partners as well as local authorities and businesses
Tourist boards – Local
Tourist information centres funded by local councils, provide information on local attractions, accommodation, F+B, tours etc
Destination management organisations
DMOs coordinate the different components in a destination by building partnerships with the range of organisations e.g. attractions, transport + marketing
VisitBritain/England/Wales/Scotland/NI
. Aims of each is to promote tourism
. To promote and expand tourist economic activity
. Provide marketing materials (brochures, leaflets etc)
. Focus on special events
Example: Visit Britain promotes destinations outside of London
Tourist boards – Regional
Each region promotes its local destinations + attractions as partners as well as local authorities and businesses
Tourist boards – Local
Tourist information centres funded by local councils, provide information on local attractions, accommodation, F+B, tours etc
Destination management organisations
DMOs coordinate the different components in a destination by building partnerships with the range of organisations e.g. attractions, transport + marketing
International bodies
Key sectors of the travel + tourism industry: Information providers United Nations World Tourism Organisations
UNWTO responsible for the promotion of
sustainable = accessible tourism.
Members = 158 countries
. encourage sustainable tourism to improve local economies
. promote tourism to improve economy and peoples’ standard of living
. educate local population to take advantage of tourism opportunities
. tourism research to support members
e.g. identifying trends
UNWTO responsible for the promotion of
sustainable = accessible tourism.
Members = 158 countries
. encourage sustainable tourism to improve local economies
. promote tourism to improve economy and peoples’ standard of living
. educate local population to take advantage of tourism opportunities
. tourism research to support members
e.g. identifying trends
Tourist information
Key sectors of the travel + tourism industry: Information providersTourist information Centres
. giving information - leaflets, guides, brochures + online
. offer advice + book accommodation, transport etc.
. local guides
Guiding services
. tour guide showing visitors around sites, town or region
. explain history, geography, culture, traditions of the area etc
Other services offered to tourists:
. ticket sales
. travel insurance
. currency exchange
. local souvenirs
. giving information - leaflets, guides, brochures + online
. offer advice + book accommodation, transport etc.
. local guides
Guiding services
. tour guide showing visitors around sites, town or region
. explain history, geography, culture, traditions of the area etc
Other services offered to tourists:
. ticket sales
. travel insurance
. currency exchange
. local souvenirs
International bodies
Key sectors of the travel + tourism industry: Information providers United Nations World Tourism Organisations
UNWTO responsible for the promotion of
sustainable = accessible tourism.
Members = 158 countries
. encourage sustainable tourism to improve local economies
. promote tourism to improve economy and peoples’ standard of living
. educate local population to take advantage of tourism opportunities
. tourism research to support members
e.g. identifying trends
UNWTO responsible for the promotion of
sustainable = accessible tourism.
Members = 158 countries
. encourage sustainable tourism to improve local economies
. promote tourism to improve economy and peoples’ standard of living
. educate local population to take advantage of tourism opportunities
. tourism research to support members
e.g. identifying trends
Interrelationships and interdependencies in the travel and tourism industry
Distribution channels
Key sectors of the travel + tourism industry: Distribution channelsDistribution channels
Getting products and services to customers. This can be done direct to the customer or via travel agents
. The variety of distribution channels is in part to meet different customer needs. Some still seek the knowledge of a travel agent whilst others are confident to book themselves.
Traditional distribution channel
Principals - Tour operators - Travel agencies - Customers
Getting products and services to customers. This can be done direct to the customer or via travel agents
. The variety of distribution channels is in part to meet different customer needs. Some still seek the knowledge of a travel agent whilst others are confident to book themselves.
Traditional distribution channel
Principals - Tour operators - Travel agencies - Customers
Distribution channels
Key sectors of the travel + tourism industry: Distribution channelsTraditional distribution channel
Principals - Tour operators - Travel agencies - Consumer
Variations of the distribution channels
Principals - Internet - Consumer
Principals - Call centre- Consumer
Principals - Tour operators - Advertisers - Consumer
Principals - Tour operators - Travel agencies - Consumer
Variations of the distribution channels
Principals - Internet - Consumer
Principals - Call centre- Consumer
Principals - Tour operators - Advertisers - Consumer
Interrelationships + interdependencies
Key sectors of the travel + tourism industry: interrelationships + interdependenciesInterrelationships
Organisations working together for mutual benefit.
Hotels work with tour companies
Rail companies promote destinations
Tesco Clubcard offers discounts for attractions
Interdependencies
Interdependent sees organisations relying on each other for success.
Airlines and airports work together to create a mutually beneficial business relationship.
Organisations working together for mutual benefit.
Hotels work with tour companies
Rail companies promote destinations
Tesco Clubcard offers discounts for attractions
Interdependencies
Interdependent sees organisations relying on each other for success.
Airlines and airports work together to create a mutually beneficial business relationship.
Horizontal + vertical integration
Key sectors of the travel + tourism industry: horizontal + vertical integrationHorizontal integration
When an organisation joins (merges) with another of the same type – airline with airline
Vertical integration
When a business merges or buys another that has a different role in the same industry – airline buys a travel agency
When an organisation joins (merges) with another of the same type – airline with airline
Vertical integration
When a business merges or buys another that has a different role in the same industry – airline buys a travel agency
Technology in travel + tourism
Technology for communication, booking and promotion
Key sectors of the travel + tourism industry: technology Websites + ebrochures
Fundamental to all businesses
Reviews, blogs, virtual tours + video
These are an increasingly important part of the T+T decision making process.
Adverts + Pop-up adverts
Web adverts are increasingly linked to your browsing preferences – via cookies – to target ads to your personal likes.
Mailshots
Promotional materials are sent by mail or email Apps
T+T organisations are increasingly using apps to communicate and inform with customers
Bookings
T+T online bookings has grown in the last 10 years to over 50% of all bookings
Ticketing
Ticketing is increasing done via email or on smartphones across the T+T industry.
Fundamental to all businesses
Reviews, blogs, virtual tours + video
These are an increasingly important part of the T+T decision making process.
Adverts + Pop-up adverts
Web adverts are increasingly linked to your browsing preferences – via cookies – to target ads to your personal likes.
Mailshots
Promotional materials are sent by mail or email Apps
T+T organisations are increasingly using apps to communicate and inform with customers
Bookings
T+T online bookings has grown in the last 10 years to over 50% of all bookings
Ticketing
Ticketing is increasing done via email or on smartphones across the T+T industry.
Technology: visitor attractions
Key sectors of the travel + tourism industry: technologyVisitor attractions
Technology is extensively used by attractions to improve the visitor experience and help differentiate them from their competitors.
Animatronics – lifelike robots are used by the NH Museum to bring dinosaurs to life!
Virtual tours - introduced during COVID allow people to view exhibits from their own homes.
Smell – is used by the Imperial War Museum in their WWI trench exhibit
Holograms – recreate people and objects to bring them to life
Virtual reality – recreate scenes for total immerse experience, often historical settings
Technology is extensively used by attractions to improve the visitor experience and help differentiate them from their competitors.
Animatronics – lifelike robots are used by the NH Museum to bring dinosaurs to life!
Virtual tours - introduced during COVID allow people to view exhibits from their own homes.
Smell – is used by the Imperial War Museum in their WWI trench exhibit
Holograms – recreate people and objects to bring them to life
Virtual reality – recreate scenes for total immerse experience, often historical settings
Technology: transport
Key sectors of the travel + tourism industry: technologyTransport hubs + gateways
Technology is widely used for ticketing, check-in and boarding.
Advanced scanning devices are employed at airports to check baggage. Full body scanners are now used with metal detectors to screen passengers.
Hubs and gateways offer Wifi and electronic beacons that send relevant information to passengers including departure information and available facilities.
Transport + tour operators + travel agent
Website technology needs to be comprehensive to provide the necessary information – availability of flights, seats, latest prices etc.
Travel agents and tour operators use global distribution systems – an IT system that allows T+T businesses to access airlines and hotels and book in real time.
E-tickets are issued via email and smartphone – Ryannair insists on passengers printing their own boarding passes (or charge £110 at the airport).
Technology is widely used for ticketing, check-in and boarding.
Advanced scanning devices are employed at airports to check baggage. Full body scanners are now used with metal detectors to screen passengers.
Hubs and gateways offer Wifi and electronic beacons that send relevant information to passengers including departure information and available facilities.
Transport + tour operators + travel agent
Website technology needs to be comprehensive to provide the necessary information – availability of flights, seats, latest prices etc.
Travel agents and tour operators use global distribution systems – an IT system that allows T+T businesses to access airlines and hotels and book in real time.
E-tickets are issued via email and smartphone – Ryannair insists on passengers printing their own boarding passes (or charge £110 at the airport).
Technology: accommodation
Key sectors of the travel + tourism industry: technologyAccommodation
Online bookings are the norm for the full range of accommodation.
Many budget hotels have self check-in – particularly ‘after hours’. Some allow to choose your own room at booking.
Others allow rooms to be accessed via a smartphone.
WIFI access is the norm in all accommodation.
Online bookings are the norm for the full range of accommodation.
Many budget hotels have self check-in – particularly ‘after hours’. Some allow to choose your own room at booking.
Others allow rooms to be accessed via a smartphone.
WIFI access is the norm in all accommodation.
Impact of tourism
Impact of tourismTourist activities have advantages (positive) and disadvantages (negative)
Recent years tourism been positive for Less Economically Developed Countries (LEDC)
Improved transport means anywhere in the world is accessible - including areas of poverty
Between 2001-2010 LEDCs tourism grown by 48%, rest of the world 17%
Growth of tourism in More Economically Developed Countries (MEDC) also increasing, with new attractions or improving attractions already there.
Recent years tourism been positive for Less Economically Developed Countries (LEDC)
Improved transport means anywhere in the world is accessible - including areas of poverty
Between 2001-2010 LEDCs tourism grown by 48%, rest of the world 17%
Growth of tourism in More Economically Developed Countries (MEDC) also increasing, with new attractions or improving attractions already there.
Positive impacts of tourism
Impact of tourism. Tourism provides opportunities for international and local businesses
. Tourism needs a lot of workers (labour intensive)
. Tourism can encourage businesses in other areas of the economy
. 83% of countries get most of their foreign currency (money) from tourism
. US$ 800 billion in tax from tourism around the world
. 10% of workers involved in tourism
. Multiplier effect of tourist development
. Tourism needs a lot of workers (labour intensive)
. Tourism can encourage businesses in other areas of the economy
. 83% of countries get most of their foreign currency (money) from tourism
. US$ 800 billion in tax from tourism around the world
. 10% of workers involved in tourism
. Multiplier effect of tourist development
Negative impact of tourism
Impact of tourismOften richer countries benefit more than poorer ones
LEDCs often need financial & management expertise from outside their country
From package holidays 80% of travellers’ money goes to international airlines,
hotels and others, this is known as leakage
Import leakage
Imported goods - equipment, food & drink etc (eg Coca Cola)
Much of the money therefore goes out of the country
Export leakage
Building tourist infrastructure - resorts, hotels etc can be very expensive - can be too expensive for many LEDCs
Large multi-national companies often use their money (capital) to build the tourist facilities
Much of the profits are then taken by these companies
All inclusive holidays
All inclusive holidays, mean everything is included for a fixed price - food, drinks, entertainment etc
These holidays are popular on cruise ships and in resorts.
BUT local businesses loss out eg bars and restaurants.
Infrastructure spending
Local government & local taxpayers often have to improve airports, roads and other services - this can be very expensive and because of leakage they may not get their money back.
Inflation
With the arrival of tourists, prices of goods can rise (inflation), badly effecting locals.
The price of land and property can increase with tourist facilities meaning locals cannot afford land in the area.
Tourist dependency
A local tourist economy can suffer if tourism goes in decline through natural disaster or terrorism etc.
LEDCs often need financial & management expertise from outside their country
From package holidays 80% of travellers’ money goes to international airlines,
hotels and others, this is known as leakage
Import leakage
Imported goods - equipment, food & drink etc (eg Coca Cola)
Much of the money therefore goes out of the country
Export leakage
Building tourist infrastructure - resorts, hotels etc can be very expensive - can be too expensive for many LEDCs
Large multi-national companies often use their money (capital) to build the tourist facilities
Much of the profits are then taken by these companies
All inclusive holidays
All inclusive holidays, mean everything is included for a fixed price - food, drinks, entertainment etc
These holidays are popular on cruise ships and in resorts.
BUT local businesses loss out eg bars and restaurants.
Infrastructure spending
Local government & local taxpayers often have to improve airports, roads and other services - this can be very expensive and because of leakage they may not get their money back.
Inflation
With the arrival of tourists, prices of goods can rise (inflation), badly effecting locals.
The price of land and property can increase with tourist facilities meaning locals cannot afford land in the area.
Tourist dependency
A local tourist economy can suffer if tourism goes in decline through natural disaster or terrorism etc.
Positive environmental impacts of tourism
Impact of tourismNatural and man-made environments are important to locals and tourists.
Tourists and tourism aren’t always good for the environment - building etc
Conservation of the natural environment
. tourists often want the environment to be
unspoilt
. encourages environmental protection,
conservation and restoration
. destroying the
environment will lead to
less tourists
. wildlife parks & reserves
. protection of endangered
species
Money from tourists
. money that tourism brings to a country
allows governments to spend on the protection of the environment
. environmental friendly holidays are increasingly popular
- eco tourism
Restoration of the urban environment
. increasingly tourists are seeking out the old rather than the new
. many ‘old’ areas of towns & cities have been restored & now attract tourists
Eco Tourism
. tourism that has minimal negative impact on the environment
. some destinations are now rated according to their environmental impact for destinations being eco friendly and sustainable is both good for the
environment and good for business
Tourists and tourism aren’t always good for the environment - building etc
Conservation of the natural environment
. tourists often want the environment to be
unspoilt
. encourages environmental protection,
conservation and restoration
. destroying the
environment will lead to
less tourists
. wildlife parks & reserves
. protection of endangered
species
Money from tourists
. money that tourism brings to a country
allows governments to spend on the protection of the environment
. environmental friendly holidays are increasingly popular
- eco tourism
Restoration of the urban environment
. increasingly tourists are seeking out the old rather than the new
. many ‘old’ areas of towns & cities have been restored & now attract tourists
Eco Tourism
. tourism that has minimal negative impact on the environment
. some destinations are now rated according to their environmental impact for destinations being eco friendly and sustainable is both good for the
environment and good for business
Negative environmental impact of tourism
Impact of tourismTourism has a negative impact on the environment, when it harms the environment.
This can be done in a number of ways
Loss of habitat
. building tourist facilities - hotels, golf
courses etc, can destroy natural habitat
. loss of plants and animals cannot be
replaced
. soil erosion is common
problem
. tourists & vehicles can
destroy fragile habitat &
scare animals
Pollution
. with the growth of tourism comes the growth of pollution:
. waste increases & local waste plants struggle to cope with it
. increase in litter on land & sea
. air pollution increases with
more vehicles on the road
. noise pollution increases with tourist events & activities
. sea pollution from boats plus litter
Resources
. natural resources come under pressure with locals & tourists needing them
. water shortages can occur with things like golf courses needed huge amounts of water
. land becomes more expensive & too expensive for locals
This can be done in a number of ways
Loss of habitat
. building tourist facilities - hotels, golf
courses etc, can destroy natural habitat
. loss of plants and animals cannot be
replaced
. soil erosion is common
problem
. tourists & vehicles can
destroy fragile habitat &
scare animals
Pollution
. with the growth of tourism comes the growth of pollution:
. waste increases & local waste plants struggle to cope with it
. increase in litter on land & sea
. air pollution increases with
more vehicles on the road
. noise pollution increases with tourist events & activities
. sea pollution from boats plus litter
Resources
. natural resources come under pressure with locals & tourists needing them
. water shortages can occur with things like golf courses needed huge amounts of water
. land becomes more expensive & too expensive for locals
Positive socio-cultural impacts of tourism
Impact of tourismTourism development
. improvements in infra-structure eg roads
. new opportunities for hosts eg jobs, higher incomes
. jobs in rural areas, stop people leaving the countryside
. tourist facilities used by locals eg restaurants, sports & health facilities
Cultural
. improve traditional industries eg arts & crafts as tourists wants
souvenirs
. local festivals improved with tourist interest
. improve cultural sites (for tourists)
Tourist-host relations
. improve understanding of each other’s traditions/culture/religion etc
. reduce prejudice
. local guides act as information hubs & give positive image
. improvements in infra-structure eg roads
. new opportunities for hosts eg jobs, higher incomes
. jobs in rural areas, stop people leaving the countryside
. tourist facilities used by locals eg restaurants, sports & health facilities
Cultural
. improve traditional industries eg arts & crafts as tourists wants
souvenirs
. local festivals improved with tourist interest
. improve cultural sites (for tourists)
Tourist-host relations
. improve understanding of each other’s traditions/culture/religion etc
. reduce prejudice
. local guides act as information hubs & give positive image
Negative socio-cultural impacts of tourism
Impact of tourismTourism development
. too many tourists can cause congestion/overcrowding
. local prices can go higher with tourists
. many jobs created for locals are lower paid - foreigners have higher paid jobs
. money from businesses can go out of the country
Cultural
. cultural areas can be ruined with
tourists arriving in large numbers
. locals can be ‘westernised’ and lose own their language, traditions etc
. cultural activities can be fake
Tourist-host relations
. tourist behaviour can be rude
. tourists not respect local customs/religion
. increase in crime as tourists arrives
. sex tourism can exploit young women and children
. too many tourists can cause congestion/overcrowding
. local prices can go higher with tourists
. many jobs created for locals are lower paid - foreigners have higher paid jobs
. money from businesses can go out of the country
Cultural
. cultural areas can be ruined with
tourists arriving in large numbers
. locals can be ‘westernised’ and lose own their language, traditions etc
. cultural activities can be fake
Tourist-host relations
. tourist behaviour can be rude
. tourists not respect local customs/religion
. increase in crime as tourists arrives
. sex tourism can exploit young women and children
Links
Liverpool City of Culture
Impact of mass tourism
in Thailand
Toxic tourism
Impact of terrorism
on tourism
Impact of mass tourism
on Venice
Factors affecting the travel + tourism industry
Teaching + learning resources for this topic feature more comprehensive notes and student activities
Product development + innovation
Product development: Transport
Factors affecting the travel + tourism industryAirline industry
Developments in transport have made it more efficient, comfortable and cheaper and therefore more appealing to travellers.
Transport hubs have improved to offer a full range of facilities and services.
. EU regulations mean budget airlines can operate across borders using regional airports to reduce costs and as a consequence improved regional airports
Rail industry
. Train networks around the world are being improved to offer speedy and more convenient travel – the French TGV connects Paris with many destinations across France
. The Eurostar connects London to Europe offering fast and value for money transportation
Cruise industry
. Super cruise ships like the new Icon of the Seas by Royal Caribbean caters for 5610 passengers
. Cruise terminals like Southampton now offers a full range of facilities
. Ferries offer more facilities as they compete with the Eurostar and low cost airlines
Developments in transport have made it more efficient, comfortable and cheaper and therefore more appealing to travellers.
Transport hubs have improved to offer a full range of facilities and services.
. EU regulations mean budget airlines can operate across borders using regional airports to reduce costs and as a consequence improved regional airports
Rail industry
. Train networks around the world are being improved to offer speedy and more convenient travel – the French TGV connects Paris with many destinations across France
. The Eurostar connects London to Europe offering fast and value for money transportation
Cruise industry
. Super cruise ships like the new Icon of the Seas by Royal Caribbean caters for 5610 passengers
. Cruise terminals like Southampton now offers a full range of facilities
. Ferries offer more facilities as they compete with the Eurostar and low cost airlines
Product development: Visitor attractions
Factors affecting the travel + tourism industry. Huge range of attractions – as such its very competitive and attractions have to develop and innovate to survive.
. Use of technology is at the forefront of innovation at a range of attractions
. Theme parks invest heavily in developing rides to be the fastest, highest etc.
. Attractions like museums have innovated with VR and other tech to engage with visitors
. Online engagement is becoming the norm
. Use of technology is at the forefront of innovation at a range of attractions
. Theme parks invest heavily in developing rides to be the fastest, highest etc.
. Attractions like museums have innovated with VR and other tech to engage with visitors
. Online engagement is becoming the norm
Product development: Accommodation
Factors affecting the travel + tourism industry. There are more types of accommodation than ever before. All customer needs are met.
. Different catering options are available from self
catering, to bed and breakfast, to half board, full
board and all-inclusive.
. AirBnB is relatively new, whereby people
privately rent out a room or an entire apartment
or house.
. Holiday parks have developed over time from
Butlins in the 1950s to Centre Parcs today.
. Accommodation apps – booking.com, hotels.com
make booking easy
. Accommodation have their own websites and booking platforms
. Different catering options are available from self
catering, to bed and breakfast, to half board, full
board and all-inclusive.
. AirBnB is relatively new, whereby people
privately rent out a room or an entire apartment
or house.
. Holiday parks have developed over time from
Butlins in the 1950s to Centre Parcs today.
. Accommodation apps – booking.com, hotels.com
make booking easy
. Accommodation have their own websites and booking platforms
Product development: Media
Factors affecting the travel + tourism industry. News coverage – often negative (terrorism + natural disasters) can have significant impact on destinations, and travel + tourism organisations.
. Tour operators/airlines etc will have public relations (PR) specialists trained in disaster management to oversee such events
. PR staff at large T+T organisations or specialist companies will work with the media to promote new products and services and perhaps get interviews as well as coordinate publicity events and exhibitions.
They will have input into the social media posts
. Tour operators/airlines etc will have public relations (PR) specialists trained in disaster management to oversee such events
. PR staff at large T+T organisations or specialist companies will work with the media to promote new products and services and perhaps get interviews as well as coordinate publicity events and exhibitions.
They will have input into the social media posts
Product development: Reservations + bookings
Factors affecting the travel + tourism industry. Computerised Reservation Systems (CRSs) for many years handled the complexity of reservations and bookings
. Now Global Distribution Systems (GDSs) can view multiple suppliers in real time.
. These systems (Amadeus, Galileo, Sabre) include:
. Administration tasks
. Reservation management + bookings
. Inventory management (products + services)
. Analytics – analyse booking trends
Booking systems have to compatible with users technology – computers, laptops, mobiles etc. and show ‘live’ information.
Price comparison websites – Trivago, Skyscanner, Travelsupermarket - allow customers to compare and book.
. Now Global Distribution Systems (GDSs) can view multiple suppliers in real time.
. These systems (Amadeus, Galileo, Sabre) include:
. Administration tasks
. Reservation management + bookings
. Inventory management (products + services)
. Analytics – analyse booking trends
Booking systems have to compatible with users technology – computers, laptops, mobiles etc. and show ‘live’ information.
Price comparison websites – Trivago, Skyscanner, Travelsupermarket - allow customers to compare and book.
Product development: Social media
Factors affecting the travel + tourism industry. Social media is used by billions of people worldwide, to relay their
. Travel experiences can trend and be seen by millions of people
. T+T organisations also have a social media presence to communicate with their followers:
. Provide up-to-date information for travellers (Twitter - X)
. Engage with customers – likes + comments
. Promote products + services
. Travel experiences can trend and be seen by millions of people
. T+T organisations also have a social media presence to communicate with their followers:
. Provide up-to-date information for travellers (Twitter - X)
. Engage with customers – likes + comments
. Promote products + services
Product development: Film + TV shows
Factors affecting the travel + tourism industry. TV + film locations have become increasingly influential in attracting tourists to destinations around the world.
Examples: Lord of the Rings (New Zealand), Game of Thrones (Northern Ireland), Mission Impossible (Dubai).
. Tourist boards will often use this in their promotions
Product development: Media
Factors affecting the travel + tourism industry. News coverage – often negative (terrorism + natural disasters) can have significant impact on destinations, and travel + tourism organisations.
. Tour operators/airlines etc will have public relations (PR) specialists trained in disaster management to oversee such events
. PR staff at large T+T organisations or specialist companies will work with the media to promote new products and services and perhaps get interviews as well as coordinate publicity events and exhibitions.
They will have input into the social media posts
. Tour operators/airlines etc will have public relations (PR) specialists trained in disaster management to oversee such events
. PR staff at large T+T organisations or specialist companies will work with the media to promote new products and services and perhaps get interviews as well as coordinate publicity events and exhibitions.
They will have input into the social media posts
Other factors affecting travel +tourism organisations and the response to these factors by travel +tourism organisations
Teaching + learning responses for this topic feature more comprehensive notes and stduent activities
External factors: Economic
Factors affecting the travel + tourism industryEconomy
The state of economy impacts all businesses – how much money people have to spend
. Recession - when the economy is not growing
(people are less optimistic and spend less)
. Inflation - the rate at which prices rise
(increased prices means people can buy less)
. Interest rates – the amount a bank charges to
borrow money (mortgage)
(high interest rates means mortgages repayments cost more – less to spend)
. Unemployment – number of people without a job
(high unemployment less money to spend)
. Economic growth – rate the economy is growing
(people optimistic for the future – likely to spend more)
. Disposable income – amount of money you have left after paying your bills
. Currency exchange rates
A country’s exchange rate is linked to its economy
(a strong growing economy has a currency that is worth more)
- A weak pound makes the country popular with inbound tourist but more expensive for outbound tourists
. Oil prices
-The price of oil directly effects transport principals like airlines
(higher oil prices can lead to more expensive airline tickets – indirectly all the prices of goods can increase as transport costs increase)
The state of economy impacts all businesses – how much money people have to spend
. Recession - when the economy is not growing
(people are less optimistic and spend less)
. Inflation - the rate at which prices rise
(increased prices means people can buy less)
. Interest rates – the amount a bank charges to
borrow money (mortgage)
(high interest rates means mortgages repayments cost more – less to spend)
. Unemployment – number of people without a job
(high unemployment less money to spend)
. Economic growth – rate the economy is growing
(people optimistic for the future – likely to spend more)
. Disposable income – amount of money you have left after paying your bills
. Currency exchange rates
A country’s exchange rate is linked to its economy
(a strong growing economy has a currency that is worth more)
- A weak pound makes the country popular with inbound tourist but more expensive for outbound tourists
. Oil prices
-The price of oil directly effects transport principals like airlines
(higher oil prices can lead to more expensive airline tickets – indirectly all the prices of goods can increase as transport costs increase)
Response to economic factors
Factors affecting the travel + tourism industryResponses to economic factors
T+T organisations need to respond to events
(during a recession they may need to reduce prices or discounts to be competitive – but profits will be reduced)
Airlines can fuel hedge – buy oil at a fixed price – but the price of oil can rise and fall so this can be risky.
A fuel surcharge can be added but customers do not like this
Increase in energy prices affects:
Spend on fuel:
Cruise companies (11%)
Airlines (30%)
Hotels (5%) more for a/c
Airlines may impose a surcharge on its customers if the fuel increases
Organisations response:
. Increase prices
. Reduce costs:
cheaper suppliers - reduce quality – reduce portion size – less staff
more efficient use of energy – technology (auto off for a/c)
. Special offers/discounts may need to be used to
attract customers
T+T organisations need to respond to events
(during a recession they may need to reduce prices or discounts to be competitive – but profits will be reduced)
Airlines can fuel hedge – buy oil at a fixed price – but the price of oil can rise and fall so this can be risky.
A fuel surcharge can be added but customers do not like this
Increase in energy prices affects:
Spend on fuel:
Cruise companies (11%)
Airlines (30%)
Hotels (5%) more for a/c
Airlines may impose a surcharge on its customers if the fuel increases
Organisations response:
. Increase prices
. Reduce costs:
cheaper suppliers - reduce quality – reduce portion size – less staff
more efficient use of energy – technology (auto off for a/c)
. Special offers/discounts may need to be used to
attract customers
External factors: Social
Factors affecting the travel + tourism industryDemographics
Use of demographic data is widely used in businesses:
age; gender; income; employment etc
Grey market
Many of these now retired people are the grey market and have good pensions and improvements in health care means they have the time, money and desire to travel.
Millennials (Gen Y)
Born between 1980 and 2000 they are the children of baby boomers, and often grew up holidaying abroad with the parents. With such a background they are the ones looking for different experiences; eco; adventure; new destinations; culture + history etc.
Family structures
. Family structures have changed over time with 2 million single families – T+T businesses look to cater to their needs.
Changing working patterns
. Flexible Working (2003) – allowed parents to have more flexible working hours if looking after children/disabled. This may include flexi-time, enabling employees to accrue time off and be more flexible when taking holidays.
. The trend of working from home also gives greater flexibility and many countries offer ‘nomad’ visas to workers, so travelling and working is more commonplace.
Holiday allowances
. Paid holiday was introduced in the UK in 1938. Every full time worker is entitled to a minimum of 28 days per year. (Part time workers can pro rata holidays).
Some companies offer more holidays the longer you have worked and others offer more as a way of attracting employees.
Use of demographic data is widely used in businesses:
age; gender; income; employment etc
Grey market
Many of these now retired people are the grey market and have good pensions and improvements in health care means they have the time, money and desire to travel.
Millennials (Gen Y)
Born between 1980 and 2000 they are the children of baby boomers, and often grew up holidaying abroad with the parents. With such a background they are the ones looking for different experiences; eco; adventure; new destinations; culture + history etc.
Family structures
. Family structures have changed over time with 2 million single families – T+T businesses look to cater to their needs.
Changing working patterns
. Flexible Working (2003) – allowed parents to have more flexible working hours if looking after children/disabled. This may include flexi-time, enabling employees to accrue time off and be more flexible when taking holidays.
. The trend of working from home also gives greater flexibility and many countries offer ‘nomad’ visas to workers, so travelling and working is more commonplace.
Holiday allowances
. Paid holiday was introduced in the UK in 1938. Every full time worker is entitled to a minimum of 28 days per year. (Part time workers can pro rata holidays).
Some companies offer more holidays the longer you have worked and others offer more as a way of attracting employees.
Response to social factors
Factors affecting the travel + tourism industryGrey market
Match products + services
. F+B – tea shops, ‘traditional food’
. Accommodation – single occupancy
. Transport – coach holidays
Single parent families
Multi generational
Match products + services
. Variable pricing strategies
. Self catering accommodation
. Kids deals (room + F+B)
Increase range of products + services
. Meet needs of diverse groups
. Special events
. Meet trends/fashion
Pricing
. Competitive pricing to match competition
. Variable pricing – single parents, grey market
Flexible working
Match products + services
. Long weekends
. Short breaks
Increase range of products + services
. Meet needs of diverse groups
. Special events
. Meet trends/fashion
Match products + services
. F+B – tea shops, ‘traditional food’
. Accommodation – single occupancy
. Transport – coach holidays
Single parent families
Multi generational
Match products + services
. Variable pricing strategies
. Self catering accommodation
. Kids deals (room + F+B)
Increase range of products + services
. Meet needs of diverse groups
. Special events
. Meet trends/fashion
Pricing
. Competitive pricing to match competition
. Variable pricing – single parents, grey market
Flexible working
Match products + services
. Long weekends
. Short breaks
Increase range of products + services
. Meet needs of diverse groups
. Special events
. Meet trends/fashion
External factors: Government
Factors affecting the travel + tourism industryRaft of government legislation and regulations affect T+T organisations
. Health Act 2006
. Town + Country Planning (Advertisements) 2007
. Consumer Protection Regulations 2008
. Health + Safety at Work Act 1974
. Management od Health + Safety at Work Regulations 1999
. Adventure Activities Licensing Regulations
. Air passenger duty
. Airport taxes
. The Data Protection Act 2018
. Development of Tourism Act 1969
. The Package Travel Regulations 2018
. Tourism Action Plan 2016-2017
. Discover England Fund 2016-2021
. Health Act 2006
. Town + Country Planning (Advertisements) 2007
. Consumer Protection Regulations 2008
. Health + Safety at Work Act 1974
. Management od Health + Safety at Work Regulations 1999
. Adventure Activities Licensing Regulations
. Air passenger duty
. Airport taxes
. The Data Protection Act 2018
. Development of Tourism Act 1969
. The Package Travel Regulations 2018
. Tourism Action Plan 2016-2017
. Discover England Fund 2016-2021
Response to government action
Factors affecting the travel + tourism industryResponses to legal factors
T+T organisations must comply with all appropriate legislation in the UK and the destination location.
T+T trade associations will lobby government with regard to legislation – taxes are particularly disliked by T+T as higher prices discourages business.
Ryanair pulled out of Rygge airport when the Norwegian govt introduced an airline seat tax, the airport later closed down.
T+T organisations and the govt. work hard to establish visa free travel to as many countries as possible to encourage cheaper and hassle free tourism
T+T organisations must comply with all appropriate legislation in the UK and the destination location.
T+T trade associations will lobby government with regard to legislation – taxes are particularly disliked by T+T as higher prices discourages business.
Ryanair pulled out of Rygge airport when the Norwegian govt introduced an airline seat tax, the airport later closed down.
T+T organisations and the govt. work hard to establish visa free travel to as many countries as possible to encourage cheaper and hassle free tourism
External factors: Environment
Factors affecting the travel + tourism industryClimate change
Climate change is still uncertain but T+T organisations are starting to see the impact:
. Ski season snow is unreliable
. Higher temperatures
. Changing weather patterns
Extreme weather events and natural disasters
Extreme weather takes many forms:
. Hurricanes + typhoons
. Earthquakes + tsunamis
. Extreme heat
. Floods
. Wild fires
. Volcanic eruptions
Sustainability
Sustainability is becoming increasingly important in the T+T industry as organisations look to reduce their use of natural resources in part as a response to customer expectations and government pressure.
Climate change is still uncertain but T+T organisations are starting to see the impact:
. Ski season snow is unreliable
. Higher temperatures
. Changing weather patterns
Extreme weather events and natural disasters
Extreme weather takes many forms:
. Hurricanes + typhoons
. Earthquakes + tsunamis
. Extreme heat
. Floods
. Wild fires
. Volcanic eruptions
Sustainability
Sustainability is becoming increasingly important in the T+T industry as organisations look to reduce their use of natural resources in part as a response to customer expectations and government pressure.
Response to environmental factors
Factors affecting the travel + tourism industryClimate change
. Ski resorts at lower altitude seeing reduced bookings
. More artificial snow makers
. Destination choices and time of year to visit being re-considered
. Tour operators implement emergency incident plan
. Government responds immediately to reduce effects of the extreme weather
. After the event marketing to increase to promote and convince visitors to return
. Long term action plans to alleviate extreme weather if possible – snow machines, flood defences etc.
. Ski resorts at lower altitude seeing reduced bookings
. More artificial snow makers
. Destination choices and time of year to visit being re-considered
. Tour operators implement emergency incident plan
. Government responds immediately to reduce effects of the extreme weather
. After the event marketing to increase to promote and convince visitors to return
. Long term action plans to alleviate extreme weather if possible – snow machines, flood defences etc.
External factors: Safety + security
Factors affecting the travel + tourism industryTerrorism
Terrorism has a very real effect on travel + tourism.
The 9/11 attacks on the Twin Towers in New York, resulted in a decline in people wanting to fly. It took 6 years for number of people flying to the USA to return
to pre 2001 levels. Airlines lost money in that time and employees were made redundant. United Airlines one
of the biggest airlines in the USA went bankrupt.
Immediate consequences of 9/11 was an increase in airport security – no liquids and air marshals on some US flights.
Terrorist attacks across Europe, and in Tunisia and Egypt
Have badly effected tourism on those countries for a number of years afterwards.
The UK government foreign office (FCO)gives travel advise on all countries including those who have suffered terrorist attacks.
War and civil unrest
Civil wars and unrest in countries can arise unexpectedly and tourists can get caught up in it.
The FCO will advise on such events when they are known. Airlines and tour operators will usually suspend flights/holidays until the FCO advise it is safe.
France saw civil unrest in June- July 2023 and tourists were advised to avoid large towns and cities.
Ethiopia has civil unrest in 2023 as two parts of the army are fighting each other. No travel is advised to the country.
Health
The COVID-19 pandemic closed down the travel + tourism industry for many months at a time.
What limited travel there was during this time was complicated with different regulations in different countries making arrangements difficult.
Terrorism has a very real effect on travel + tourism.
The 9/11 attacks on the Twin Towers in New York, resulted in a decline in people wanting to fly. It took 6 years for number of people flying to the USA to return
to pre 2001 levels. Airlines lost money in that time and employees were made redundant. United Airlines one
of the biggest airlines in the USA went bankrupt.
Immediate consequences of 9/11 was an increase in airport security – no liquids and air marshals on some US flights.
Terrorist attacks across Europe, and in Tunisia and Egypt
Have badly effected tourism on those countries for a number of years afterwards.
The UK government foreign office (FCO)gives travel advise on all countries including those who have suffered terrorist attacks.
War and civil unrest
Civil wars and unrest in countries can arise unexpectedly and tourists can get caught up in it.
The FCO will advise on such events when they are known. Airlines and tour operators will usually suspend flights/holidays until the FCO advise it is safe.
France saw civil unrest in June- July 2023 and tourists were advised to avoid large towns and cities.
Ethiopia has civil unrest in 2023 as two parts of the army are fighting each other. No travel is advised to the country.
Health
The COVID-19 pandemic closed down the travel + tourism industry for many months at a time.
What limited travel there was during this time was complicated with different regulations in different countries making arrangements difficult.
Response to safety + security
Factors affecting the travel + tourism industryResponses to safety + security factors
Safety and security is a major concern for travellers and is
therefor a priority for all T+T organisations.
This is the responsibility of government, security
services, the police and individual organisations.
Trade associations often provide security advise and
training for their members.
Safety + security measures include:
. Security risk assessments
. Providing security staff for screen visitors, manage crowds, secure the building, outside areas and car parks
. Train all staff in evacuation procedures + other emergencies
. Use technology like CCTV to monitor visitors
T+T organisations ought to have emergency crisis or incident plans prepared, with employees trained in their assigned roles.
Crises
Whilst crises can take many forms and be unexpected T+T organisations should plan for all eventualities.
Incident plans include:
. Designated roles for management
. Media liaison – who speaks and when
. Emergency procedures
. Evaluate plan
Repatriation
During a crisis abroad – terrorism, civil unrest etc. – the immediate priority of the tour operator is to make sure everyone is safe.
Along side that the tour company will be managing its PR to reassure relations in the UK that the situation is being well manged.
Tour operators will repatriate their customers and other travellers should be flown home via their insurance provider. Depending on the circumstances the FCO may get involved with repatriation.
Safety and security is a major concern for travellers and is
therefor a priority for all T+T organisations.
This is the responsibility of government, security
services, the police and individual organisations.
Trade associations often provide security advise and
training for their members.
Safety + security measures include:
. Security risk assessments
. Providing security staff for screen visitors, manage crowds, secure the building, outside areas and car parks
. Train all staff in evacuation procedures + other emergencies
. Use technology like CCTV to monitor visitors
T+T organisations ought to have emergency crisis or incident plans prepared, with employees trained in their assigned roles.
Crises
Whilst crises can take many forms and be unexpected T+T organisations should plan for all eventualities.
Incident plans include:
. Designated roles for management
. Media liaison – who speaks and when
. Emergency procedures
. Evaluate plan
Repatriation
During a crisis abroad – terrorism, civil unrest etc. – the immediate priority of the tour operator is to make sure everyone is safe.
Along side that the tour company will be managing its PR to reassure relations in the UK that the situation is being well manged.
Tour operators will repatriate their customers and other travellers should be flown home via their insurance provider. Depending on the circumstances the FCO may get involved with repatriation.
External factors: Sustainability
Factors affecting the travel + tourism industrySustainability is becoming increasingly important in the T+T industry as organisations look to reduce their use of natural resources in part as a response to customer expectations and government pressure.
Air travel in particular is under increasing pressure to be more sustainable.
Sustainable tourism includes:
. Reduce and minimise the negative impacts of tourism on a destination – economic, environmental and cultural
. Promote the conservation of the local environment and culture
. Tourism should benefit the local population in terms of improving their quality of life
. Promote local culture and traditions to tourists
Air travel in particular is under increasing pressure to be more sustainable.
Sustainable tourism includes:
. Reduce and minimise the negative impacts of tourism on a destination – economic, environmental and cultural
. Promote the conservation of the local environment and culture
. Tourism should benefit the local population in terms of improving their quality of life
. Promote local culture and traditions to tourists
Response to substainability
Factors affecting the travel + tourism industry. Host countries are more aware of the benefits of sustainable tourism
. Individual T+T businesses are embracing sustainability
. Global Sustainable Tourism Council encourages tour operators to adopt sustainable tourism development
Culture
. Share culture with tourists
. Opportunity to invest in culture/history through money from tourism
Environmental
Transport:
public transport: hydrogen buses, trams, cycles
electric vehicles, safe walking
. Energy:
solar panels, wind turbines
, Government, local or individual level
. Building:
use local building materials - sustainable
less concrete
. Recycle, reuse, reduce
all T+T organisations adopt 3 Rs
Conversation
. Habitats
. Wildlife
. Culture and history
. Individual T+T businesses are embracing sustainability
. Global Sustainable Tourism Council encourages tour operators to adopt sustainable tourism development
Culture
. Share culture with tourists
. Opportunity to invest in culture/history through money from tourism
Environmental
Transport:
public transport: hydrogen buses, trams, cycles
electric vehicles, safe walking
. Energy:
solar panels, wind turbines
, Government, local or individual level
. Building:
use local building materials - sustainable
less concrete
. Recycle, reuse, reduce
all T+T organisations adopt 3 Rs
Conversation
. Habitats
. Wildlife
. Culture and history
Links
Tourism Board promotion
for London (2014)
Tourism Board promotion
for Jamaica (2021)
Tourism Board promotion
for Philippines (2017)
Tourism Board promotion
for Tanzania (2015)
Links
Useful for:
. Tourism database for all countries
- domestic, inbound/outbound, income and expenditure
Useful for:
. Role of UNWTO
. T+T statistics
Travel + Tourism
Travel + Tourism Industry
Destinations
Visitor attractions
Marketing for Travel + Tourism
Transport
MICE
Produtcs + services
Customer services
Websites
Resources for other subjects including Business, History and PSHE
Website by:
