UNIT 1

Tourism: The temporary short term movement of people to destinations outside places where
they normally live and work, and their activities during their stay at these destinations.

Three major categories of visit:

Leisure tourists: people who are visiting somewhere for pleasure. They are on holiday. They
can be further divided into whether they are day trippers, overnight visitors, short break or
holiday takers.
Business tourists: MICE (Meetings, Incentives, Conferences and Exhibitions) is the recent
growth area in international tourism and relates to various forms of business tourism.
Meetings - Events designed to bring people together for the purpose of exchanging information.
Incentives - They include travel to a foreign country or domestically as a part of a motivational
incentive scheme to increase or reward the employee effort.
Conferences - Multi-day events having at least 100 delegates attending the event with the
purpose of exchanging information.
Exhibitions - The bringing together of people for the purposes of viewing products and services.
VFR (Visiting Friends and Relatives): May be for the purpose of leisure, recreation and
holidays, family occasions which are not traditional vacations or holidays.
Nationality of a visitor is that of the government issuing his/her passport or other identification
document, even if he/she normally resides in another country.
Occupancy rate refers to the proportion of the rooms or bed places in a tourism establishment
that is occupied over some period of time, such as night, month or year.
Tourism receipts refers to the expenditures of inbound visitors including their payments to
national carriers for international transport.

Components of travel and tourism industry:

Transportation, Catering and Accommodation, Attractions, tourist information and guiding
centers, tour operators, travel agents.

Travel agents sell holidays, ancillary products (insurance, car hire, foreign currency, etc.),
provide information and advise customers. They vary in size and scale of operation.
Multiples: Agencies that have branches throughout a country and often abroad as well.
Miniples: Smaller independent travel agents that usually have one retail outlet but may have a
number of shops in the specific area.

Supply chain / Chain of distribution:

Providers of travel products (principals such as accommodation, attraction, transport, local
tours, etc.)
↓
Wholesalers (Tour Operators) ↘
↓
Retailers (Travel Agencies) Direct sell e.g. via Internet
↓ ↙
Customers
Tour guiding refers to accompanying a group of visitors around a particular site, town or part of
a region, giving information on the history and geography of that area, pointing out items of
interest, and generally being responsible for conducting that group efficiently.
IMPACTS OF TOURISM:
Positive economic impacts of tourism:
 Employment is created for the unemployed people in the economy.
 Local businesses are supported.
 The income generated through tourism goes back to the host economy, through the
multiplier effect, as it is spent over and over again.
 High foreign exchange earnings.
Negative economic impacts of tourism:
 Due to increased demand for basic necessities from tourists, inflation will occur.
 Import leakage: This happens when local products do not meet the standards of the
tourists, and when tourism establishments have to import products from other countries.
 Export leakage: This happens when only overseas investors have enough capital to
invest in the building of hotels, restaurants, etc. and they take the profits generated back
to their own country.
 Usually fewer local people are employed to do jobs, and this would mean a smaller
multiplier effect is felt in the economy.
Positive environmental impacts of tourism:
 Encourages further wildlife preservation and protection efforts for nature loving tourists.
 Encourages sustainable use of natural resources more to appeal to more tourists.
 Can generate additional resources to invest in environmental infrastructures and
services (e.g. sewer pipes, water distribution pipes, reservoirs, etc.)
Negative environmental impacts of tourism:
 Pollution. Due to tourists moving around in many vehicles, littering on the streets,
beaches, mountains, etc.
 Loss of natural habitat.
 Increased pressure on endangered species and more vulnerability to forest fires.
 Soil erosion.
 Traffic
Positive socio-cultural impacts of tourism:
 Revival of indigenous cultures and traditions.
 More people will find out about the cultures and traditions.
 Improved infrastructure, sewage systems, transportation, etc. for the local people. Can
bring higher living standards for the local people.
Negative socio-cultural impacts of tourism:
 Culture clash (Sometimes tourists often fail to respect local customs and moral values)
 Globalization (When tourists look for well knows hotels and familiar food brands)
 Commodification (Reducing local cultures to meet the tourists’ needs and expectations)
 Crime
 Loss of authenticity or staged authenticity
 Changing attitudes
Tourism carrying capacity: The number of visitors that can visit a tourist destination at the
same time without destroying the economic, environmental and socio-cultural aspects of the
country, and without lowering the quality of visitors’ satisfaction.

Intra-regional travel: Travel within the same country, but different parts (domestic travel).
Inter-regional travel: Travel between different countries (outside the country - international
travel).
Intra-regional travel is more popular as people wouldn’t have to exchange currencies, there
wouldn’t be a language barrier, and it is much cheaper, with higher accessibility to travel
domestically.
CASE STUDIES UNIT 1

The city Liverpool was the European Capital of Culture in 2008

The Kruger National Park in South Africa
The Victoria and Albert Waterfront in Cape Town, South Africa
Machu Picchu Reserve and the Inca Trail in Peru
Bimini Island in the Bahamas
Maori tourism in New Zealand
The Banaue Rice Terraces in the Philippines

UNIT 2

Product life cycle - suggested by Canadian Geographer R.W. Butler in 1980 - the stages that a
destination goes through.
 Exploration: very small tourist numbers and few tourist facilities.
 Involvement: small number of tourist with some local facilities.
 Development: visitors numbers rising rapidly, upgrade of local infrastructure, increase in
foreign owned facilities.
 Consolidation: further increase in the number of tourists, carrying capacity limit is
approa
 Stagnation: tourist numbers reach peak and facilities show signs of age
 Rejuvenation/decline: either tourists numbers rise again or tourists numbers fall

The northern hemisphere has most land & the southern hemisphere has most of the water area.
For an urban area to be classified as a major city, it simply requires a large population.
Heathrow - London’s Airport.
The First International Conference on Climate Change and Tourism was held successfully in
Djerba, Tunisia, 2003.

Tropic of Cancer - above the equator

Tropic of Capricorn - below the equator
Latitude: Indicates distance away from the equator, in the northern or southern hemisphere.
Longitude: Shows a location’s position east or west of the Greenwich.

Canadian Sir Sanford Fleming proposed the system of worldwide time zones in 1878. The world
has 24 time zones, each spaced 15 degrees of longitude apart. Since the earth rotates once
every twenty four hours and there are 360 degrees of longitude, each hour the earth rotates
one-twenty-fourth of a circle or 15 degrees of longitude.

UTC - Coordinated Universal Time - based on the time running at 0 degrees longitude at
Greenwich. Also referred to as GMT (Greenwich Mean Time).
Daylight saving time (DST) - clocks are set forward by an hour during winter months.
International Date Line (IDL) - An imaginary line on the surface of the Earth opposite to the
Prime Meridian or Greenwich Meridian, where the date changes as one travels east or west
across it.

Wide/High Catchment Area: the name given to a location attracting a large number of tourists,
due to its intriguing facilities, food, location, etc. For example, Dubai has a wide catchment area
since it is in a very accessible area, does not take a long time to go to from other major cities,
has a lot of facilities, food, attractions that intrigue a number of leisure tourists, is the home of
Emirates, and is also a major business trading and commercial center. A lot of business tourists
come to Dubai each year due to its very suitable facilities for business tourists.

Climatic conditions of the earth vary with latitude:

Equatorial latitudes - between 5 degrees North and South of the equator.
Tropical latitudes - anywhere between 23.5 degrees North and South of the equator.
Sub-tropical latitudes - between 23.5 and approximately 30 degrees North and South of the
equator.
Temperate latitudes - between approximately 30 and 50 degrees North and South of the
equator.
Arctic latitudes - around 66.5 degrees North and South of the Equator.
Polar latitudes - anywhere between the Poles and 66.5 degrees North and South.

Equatorial such as Brazil’s Amazon region - hot, wet and humid all year.
Tropical such as African Savannah - no cold season but heavy summer rains.
Tropical monsoon such as India - no cold season but heavy summer rains.
Tropical Desert such as North African Sahara - no cold season and negligible rain.
Warm Temperate such as Mediterranean - hot dry summer, cool wet winter.
Cool Temperate such as USA/Canada border - cold winter, hot summer, even rainfall.
Arctic such as Scandinavia - harsh cold winter with snow, cool summer with rain.
Polar such as Greenland - snow and ice prevail for most of the year.

A destination is perishable. Overcapacity & overuse could lead to the decline of tourist facilities,
natural disasters could lead to the destruction of tourist destinations, political instability and wars
could lead to the decline, global pandemics, competition from other destinations.

Destination outlook scale: The scale from which a rating could be given to a particular
destination.
1 to 2: catastrophic
3 to 4: in serious trouble
5 to 6: in moderate trouble
7 to 8: minor difficulties
9: authentic, unspoiled and likely to remain so
10: enhanced

Other specialized reasons for international travel such as:

 Pilgrimages or other religious journeys to destinations like Jerusalem, Lourdes & Mecca
 Sporting trips such as following a cricket or rugby team in a competition abroad or
attending an international event like the Olympic games or Formula 1 Grand Prix
 Educational trips to study centers for courses or visits to important sites
 Medical treatment visits

Cultural appraisal: The idea wherein an individual’s final choice of destination is strongly
influenced by the values or attitudes they are exposed to.

General infrastructure: roads, energy, water supply, telecommunications, post offices, banks,
etc.
Social and cultural infrastructure: Local traditions, manners and customs, historical and
archaeological sites, language, religion, cultural shows, etc.
Tourist infrastructure: Local transport, skiing sites, casinos, sport sites - in order to fulfill the
needs of visitors.

Features attracting tourists to a particular destination:

 Weather and climate of the area.
 scenery and landscape
 vegetation and wildlife
 historical and cultural attractions
 modern built attractions
 indoor/outdoor activities
 accommodation options
 events and festivals
 food/drink and entertainment facilities
 accessibility and gateways in the area.

Backpackers: 18 to 24 years of age. Well educated and very cost conscious.

DINKY (Dual Income No Kids Yet): Younger couples between 25 and 35 years of age, having
no children, relatively affluent.
Empty Nesters: Parents whose children have left the house. Between 45 to 55 of age, usually
quite well educated, high disposable income.
Grey Market/Boomers: Members of the baby boom generation in the 1950s now retired and
have disposable income from pension and savings.
Youth Market: Between 18 and 25 of age, less well-educated, lower disposable income, used
to traveling and have a varied nightlife.

The tourism product is a series of goods and services that individual tourist consumers use or
buy after they have compared them with the other two as products and services that are
available using criteria such as location, accessibility, infrastructure, quality and price.

Cultural tourism: Individuals and groups of people who travel to visit and experience things like
heritage, religion, art and customs to develop knowledge of a different community’s way of life
and tradition.

Sustainable tourism: The environmental, economic and socio-cultural aspects of tourism

development, and how a suitable balance must be established to guarantee its long term
sustainability.

Sustainable tourism should:

 benefit the local economy.
 ensure that tourism development benefits both the environment and community.
 meet profitability and viability.
 become part of the local culture.
 reinvest in the local region.

CASE STUDIES UNIT 2

Kampong Ayer - Brunei (unique water village).

Business tourism in Dubai
Coastal tourism in Mauritius (a volcanic and mountainous island in the Indian Ocean, which lies
2000 km off the southeastern coast of Africa).
Mountain tourism in Petra, Jordan.
Inland Tourism in Dubai Creek (14 km).
Waterfall Tourism in Victoria Falls (world’s biggest waterfall) between the Zimbabwe and
Zambia border.
Cave tourism in Sudwala caves, Mpumalanga, South Africa.
Volcano tourism in Costa Rica’s Arenal National Park - home to the most active volcano in the
country.
Centara Grand Island Resort and spa in Maldives, on South Ari Atoll.

UNIT 3
Customer service refers to all the elements of customer organization contact. It includes the
concept of customer care that is, all the related aspects in looking after customers when they
interact with the organization. Customer service includes all direct and indirect contact with the
customer (e.g. giving advice, providing info, receiving and passing messages, keeping records,
providing assistance, dealing with problems and dissatisfied customers, offering extra services).

Moment of truth: When a customer interacts with a travel and tourism organization and
experiences any of its operational procedures.

The aim of any customer service policy will be to make customers feel satisfied and valued so
that they will want to return.

Operational standards: Specify what has to be done or said.

Competence standards: Describe the action an individual needs to follow to perform a task
competently (they specify the ‘how’).

Travel and tourism organizations have introduced team working to:

 improve productivity
 improve quality of products and services
 improve customer focus
 speed the spread of ideas
 respond to opportunities and threats and to fast-changing environments
 increase employee motivation
 introduce multi-skilling and employee flexibility.

Guests expect to see room attendants looking well turned out, who would greet them pleasantly
and to deal with their enquiries helpfully.
All staff requires training and some organizations deliver these themselves on an in house basis
or send their employees on appropriate courses. A typical customer service course would
combine trainer presentations and interactive sessions where attendees share ideas and their
personal experience.

Important for butlers:

 Personal presentation and demeanor
 social skills, tolerance, telephone skills, body language and movement
 team work and communication
 systems and procedures
 all necessary paperwork
 related departments with emphasis on communication
 pre-arrival preparations for all guests
 recording preferences - likes and dislikes
 key tasks - from unpacking and packing, treatment of clothes, shoes, valuables, etc. to
shopping, presentation of rooms and flower arranging.
 other service tasks - from serving early morning tea to formal dinners.
 security issues.

Stages of the guest cycle: reservation, registration/check-in, occupancy, check-out and

history.
The receptionist is likely to be the first person to greet the guest on arrival at the hotel. A good
first impression can be created by the welcome the guest receives, the business-like
appearance of visible front line staff and the appearance of the reception area itself. The ability
to speak a foreign language will be of great importance when dealing with international guests.
Reception/front desk staff need to have good administrative skills so that they are able to deal
with reservations accurately and efficiently.

A proper check-out occurs when the guest: vacates the room, receives an accurate statement of
the guest account and pays an outstanding amount, returns room keys and leaves the hotel.

How to deal with complaints:

1. Listen carefully to the customer.
2. Apologize in general terms for the inconvenience caused.
3. Never argue with the customer.
4. Agree the solution with the customer.

Qualities a tour guide must have:

Good communication skills, knowledge, continuing professional development, organization,
competence, confidentiality, being welcoming, and ethics. (pg 112)

Interpersonal skills are sometimes referred to as communication skills, people skills and/or soft
skills. Good communication skills are important for all staff because of the many daily
interactions that will take place with both customers and colleagues. Communication is a two
way process which can require the basic elements of speaking, listening, reading or writing.

Personal presentation (type of clothes you wear, clean hair, clean shoes, etc.) is important
because it will reflect on the customer’s impression of the organization.

Clear speech: In order to provide a service to customers, there has to be communication. They
need to be able to provide information to the customers clearly, so that they would have a good
experience with the organization. A well spoken person will attract the attention of the
customers and the use of good grammar, vocabulary help to reflect the degree of
professionalism that is required for the work.

Numeracy skills: Important to have in order to see outstanding amounts of guests, times at
which they’re supposed to check-out, etc. Employees are supposed to be able to read numbers
so that in situations such as wake up calls, make telephone calls, etc., they are able to provide a
satisfactory service to them.
Literacy skills: Employees should be able to read and write because they would need such
skills to fill special requests from customers, read booking details, carry out administration tasks,
etc.

Barriers to effective communication:

1. Language problems (such as accents or slangs)
2. Prejudice (the sender may have pre-set views and doesn't want to listen)
3. Cultural differences (the receiver may receive the message correctly worded but
interpret it to have a diff meaning)
4. Complexity (if the message is too long/technical it may not be properly understood)
5. Concentration (if the receiver has their mind on other matters, the message may not be
properly understood).
An itinerary refers to a detailed plan for a journey, giving details of dates and timings, methods
of travel, accommodation, etc.

Computerized Reservation Systems (CRS), also known as Global Distribution Systems

(GDS) are used globally within the travel industry to book a range of travel products such as
flights, hotels, car hire, etc. For example: Worldspan, Sabre and Galileo.

Promotion of travel products and services is important to make potential customers aware that
such items are readily available. Hence, there is a need for the effective presentation and
promotion of such items.
A sale is made when a customer undertakes to spend money in exchange for a promise to
deliver a product.

Qualities of an employee selling a product/service:

 enthusiasm, honesty, intelligence, initiative and friendliness
 knowledge of the industry and the product
 good judgement
 consistency

Factors to consider before choosing a promotional method:

 What is the promotional campaign trying to achieve?
 Who is the target market?
 What promotional materials will be used?
 How will the success of the campaign be monitored and evaluated?
 The marketing budget
 The stage of the destination life cycle the destination is at.

Advertising usually has either strategic or tactical objectives.

Strategic advertising is concerned with creating awareness of markets, and of products, of
developing an organization’s identity and image. This takes a more long term view.
Tactical advertising is aimed at specific market segments and persuading them to go to a
particular place or buy a certain service, sometimes at a particular time or season. This takes a
more short to medium term view.

CASE STUDIES UNIT 3

The word concierge has French origin meaning ‘keeper of the keys’.
Jumeirah Hotels and Resorts from Dubai

UNIT 4

The inter-relationship of different providers within the travel and tourism industry is the reliance
on one another’s products and services.

Three main types of tourism products:

1. Package product. It comprises at least two of these components - transport,
accommodation, other tourist services (such as car rental, recreational activity, entrance
tickets to a major theme park, etc.). It is usually put together by a tour operator and
marketed and sold to customers through a travel agent.
 2. An independent product. These are purchased directly from the provider by individual
customers. This could be a rail ticket/hotel booking made directly with the supplier on the
Internet, or sightseeing excursion booked face to face with the tour company.
3. The ‘all inclusive’ product. This refers to a package in which flights, transfers,
accommodation and all meals and unlimited drinks are included together with snacks
such as ice cream and activities such as kids clubs or sports. They often provide buffet-
style breakfasts, lunches, evening meals and local alcohol only. Some activities may
carry an additional cost such as snorkeling, etc. Cruise holidays tend to be all-inclusive.

Ancillary services: Any additional service offered by travel and tourism providers beyond the
main product or service. An ancillary service is one way in which providers may be distinctive
over their competitors. (e.g. travel insurance, foreign currency exchange, car hire, airport
transfers, passport and visa information, coach and rail tickets, hotel bookings, tickets to theme
parks/theaters/etc., guidebooks and guiding services).

Travelers need to ensure that they have exchanged/converted their travel money from their own
currency into the one being used in the destination they are visiting. Travelers’ cheques were
once considered the only alternative to carrying large quantities of cash. However, now, with
new technology, and use of credit/debit cards, individuals have more flexibility in traveling
without needing to exchange currencies.

A large number of travel and tourism organizations are involved in the marketing of products
and services within the industry, either directly or indirectly.

A tour operator typically combines tour and travel components to create a package holiday.
Tour operators are responsible for arranging the transport, accommodation and leisure activities
that make up a typical package holiday. They bundle all these products from travel and tourism
providers as a package and make it available to customers by marketing and distributing the
package to customers in their own country.

Types of tour operators:

1. Mass market tour operators: Operate within the mainstream of the travel and tourism
industry and offer sun, sea and sand packages. They tend to be the most recognized
names in the industry.
2. Inbound tour operators: A type of organization that produces packages aimed
specifically at bringing overseas visitors into a destination (their home country).
3. Outbound tour operators: One based in the tourist’s home country offering holiday
packages to destinations overseas.
4. Domestic tour operators: Specializes in putting together packages for the home market -
they appeal to people living in that country.
5. Specialist tour operators: Specialize by destination, activity, theme, transport, or by age
group.

Tour operators are profit seeking, and need to make money to survive. The main trends in the
industry are economies of scale, horizontal and vertical integration.

Horizontal integration: when companies join together to remove competition, increase

economies of scale, and to increase their purchasing power. Happens with mergers at the same
level in the tourism supply chain.
Vertical integration: Take-over of businesses at different levels of the distribution chain. It can
be backward integration and/or forward integration. The main advantages are control over
supplies in terms of quality, availability, access and price, and the ability to reach consumers.

Tour operators have to put together a holiday package/tour; this involves planning, organizing
and selling tours or packages.
The initial stage of the process involves research and planning. Tour operators estimate how
many customers are likely to require each type of product, in order for the capacity of the
package to be calculated. Once this has been decided, accommodation and flight arrangements
are considered. The planning process also involves market research, to determine the
requirements of the potential market as precisely as possible. Tour operators then begin
negotiating with providers in the resorts and with travel principals. The role is often carried out
by senior managers and will result in contracts being drawn up.

Main components affecting tour operators prices:

1. Peak and off peak pricing (Seasonality) - During school and factory holidays prices are
more expensive due to high demand
2. Flight times
3. Single room and other accommodation supplements - Most tour operators’ contracts
with hotels and apartment owners are based on price per room, however their brochures
are sold price per person. As a result, the price per person for a single traveler includes
the whole room cost.

As holiday prices are advertised a long time before the tour operator has to pay hotels, airlines
etc., variations in exchange rates (of currencies) could have a major impact on the profit a tour
operator makes.

Three main types of contracts used in these ‘deals’:

1. Commitment/guarantee - this is where the tour operator guarantees to pay for a certain
number of bed spaces.
2. Allocation/release back - a number of bed spaces is agreed but any bed space not sold
by an agreed date is ‘given back’ to the accommodation provider to be sold elsewhere.
3. Ad hoc/consignment - this is a flexible arrangement where the tour operator agrees on a
discounted rate with the hotelier and makes the bookings as and when required.

Flight arrangements also have to be made - usually by chartering a plane. This means that a
tour operator makes a block-booking of all the seats on certain flights.
The tour operator then decides on a price for the package before marketing and selling the
finished product. Brochures are produced, and once packages are released for sale, tour
operators and travel agents are involved in the sales of the product and reservation processes.
Tour operators are in the private sector and have low profit margins and being a tour operator is
risky. For example, the unexpected loss of popularity of a country where the tour operator has
made contracts with hotels, tour companies, etc., or fluctuation in exchange rates/rise in costs of
aviation fuel.

Consumer protection is an essential part of a tour operator’s role. The aim of regulations is to
give customers access to compensation when things go wrong with their holiday.

Travel agencies act as a selling agent for a variety of principals. The main role of a retail travel
agent is to sell holidays, to offer ancillary products, to provide information and to advise
customers. They act as the intermediary between the customer and the tour operator/principals.
The agent represents the interests of both the customers and suppliers.
Travel agents do not necessarily ‘buy-in’ stock in advance to sell to customers. Instead, they
tend to react to the demands of the customers and contact the suppliers, on behalf of the
customer, to seek out the availability of the desired product.

Travel agents, along with the main product which is the overseas holiday package, offer other
products and services such as short breaks, cruise holidays, flights, coach, rail and ferry
bookings, accommodation bookings, travel insurance, theater bookings, car hire, foreign
exchange, passport and visa applications, information on health requirements, airport parking,
etc.

Travel agents need to know the terms and conditions under which they serve the interests of the
suppliers, whose products and services they are selling. The most common type of agreement
is made with tour operators, whereby the travel agent agrees to sell the packages offered by the
tour operator in exchange for an agreed amount of commission. The travel agent will also make
agreements with all the individual principals it represents such as ferry companies, coach
companies, hotel chains, etc.
These agreements set out the policies and procedures that the travel agent should follow
in relation to:
 issuing tickets, vouchers and other travel related documents.
 cancellations and refunds
 racking of tour operator’s brochures
 accounting for the payment of deposits and balances

Travel agents are in the private sector and profit seeking. They are located in areas with high
visibility to attract passing trade. However, with advances in technology, people now use the
services of online travel agents due to convenience and 24/7 availability.
There is also the competition from direct sales by some tour operators, which means that travel
agents need to be more flexible in their approach. They offer high levels of customer service
and don’t only sell the traditional sun, sea and sand packages. They are now offering more
tailor-made packages, to cater to specific needs and wants of leisure tourists.

There are a number of small, independent travel agencies, which are privately owned with a
single retail outlet. There are also miniples, travel agencies with a small number of outlets in one
geographical area. However, the market is dominated by multiples, companies which operate a
large number of retail outlets under a single brand name. They are often part of a large chain as
a result of the vertical integration of tour operators.

In the same way as tour operators, travel agents are also licensed/bonded to ensure that
customers are protected in the event of the financial failure of any component part of package
holiday.

IATA = International Air Transport Association

Infrastructure - features of the built environment that are required in order to serve the
developmental and operational needs of a community. This includes basic facilities such as,
services and installations - utilities, roads, telecommunications, education and health facilities.
Travel and tourism infrastructure - the provision of transport facilities, including airports,
seaports and railway networks.
Once the infrastructure in a destination is developed, it is better able to support a wide range of
tourism activities and destinations will benefit from the foreign exchange earnings.

Hotels and other forms of short term accommodation are described as being the superstructure
of tourism.

Accommodation: Any establishment that provides overnight lodging for a traveler in a room.
It can either be serviced, which means the price you pay includes the provision of meals and for
the cleaning of the room, or self-catering, which means that meals are not provided but cooking
facilities are available for guests’ use.

Main types of accommodation:

1. Hotel: Most common forms of serviced accommodation. Some hotels are small,
privately owned establishments with a small number of rooms and limited facilities;
others are part of an international hotel chain with hundreds of rooms and a broad
product/service mix.
2. Guesthouse: Also known as boarding house, B&B or Pension. It is a small owner-
managed establishment offering serviced accommodation. Facilities are limited and cost
less than staying in a typical hotel, service is more personal and friendly.
3. Hostel: Offers inexpensive accommodation and offers the option of serviced/self-
catering facilities. They target groups of travellers looking for budget accommodation.
Offer dormitory style accommodation as well as private rooms.
4. Camping site: Places used for overnight stays in the outdoors where campers can pitch
their own tent/rent one and use other amenities on the site. Camping offers a cheap form
of accommodation, and camping sites are usually privately owned.

Accommodation should be refurbished approximately every 5-7 years to ensure visitor

satisfaction.
Occupancy rate - the number of beds/rooms that have been occupied against the number of
beds/rooms available over a given period of time.
The most common classification scheme which has some international recognition is the hotel
star rating scheme. Each hotel is visited by a team of inspectors and assessed against pre-
determined grading criteria. Hotels are usually given a rating of from one to five stars - the more
the stars, the higher the quality and the greater the range of facilities and level of services
provided.

In some countries such as the UK, a grading scheme for guesthouse provision has been
developed, which works the same way as the star rating except diamond symbol is used in
place of the star.

An effective public transport system improves the accessibility of destinations and meets the
needs of domestic and international visitors.
 Rapid transit systems provide improved accessibility for tourists as well as for local
residents, with the aim of reducing overcrowding and traffic congestion.

THREE MAIN TYPES OF TRANSPORT:

1. Air transport: flights can either be domestic or international. National airlines offer
scheduled services, which is a regular service between two destinations operated
according to a published timetable, available for use by any member of the public. There
 are also chartered services available from airlines (e.g. Monarch Airlines in the UK and
TUIFly in Germany). This is when all the seats for a particular flight have been pre-
booked by a tour operator, for example. It is also possible for a business to charter a
flight.

Hub: Occurs where a network of airline routes pass through a major airport with many
connecting services to and from the outlying airports. Travellers use a hub airport to
transfer from one flight to another usually with the same airline, in order to reach a
destination not served by a direct flight.

Gateway - the name given to any destination/main point of access to a country or region
because of its location and its transport links

The busiest airport in the world is Hartsfield-Jackson Atlanta International Airport

(ATL).

The demand for air transport is closely linked to economic development - the industry
creates over 29 million jobs globally - both indirectly and directly. The economic impact
of air transport is considerable; however, the industry is susceptible to fluctuations in the
global economy (with rising oil prices).
Other expenses, excluding labour and crude oil, that airlines face include aircraft
insurance premiums, maintenance costs, landing fees, advertising and promotion costs,
air navigation service charges, food and beverage supplier costs and travel agency
commission and ticketing costs.

Regulation is the term used to describe the measures and controls that exist over
industry practices. De-regulation is the term used to describe the situation in which
organizations within a given industry or market become self-regulating, i.e. airlines
assume responsibility for the routes they offer and the prices they charge.
Deregulation has increased the level of competition between airlines and has helped to
keep the cost of air fares lower.

An airline alliance is an agreement formed between several airlines to establish co-

operation in the global aviation industry. Members of airline alliances work together to
share everything from flight routes to airport lounges, ground crews, and even their
booking systems. An alliance benefits the airlines financially (sharing of resources,
lounge space, terminal space, ground handling services and maintenance bases,
common promotion and marketing techniques and same IT system), but it also benefits
travelers by providing routes to more places in the world without having to book separate
flights, lower airfares, increasing options of departure times, ability to earn and redeem
miles across all member airlines.

2. Sea Transport: Many countries still rely on ferry crossings for everyday travel and
tourism business. Water taxis and buses also play a significant role in destinations such
as the Maldives and Bora Bora. Ferries are a major form of transportation, cruises have
become increasingly popular over recent years offering an all-inclusive holiday
experience.
 The majority of ferry and cruise companies operate within the private sector. However,
there is also government and public sector involvement in the passenger shipping
industry.

3. Rail and road transport:

Car travel - this is the world’s most dominant form of transportation for tourism purposes,
especially within domestic tourism. Car travel offers more flexibility and convenience
than many other forms of transport as it allows door-to-door transport and is considered
beneficial for the privacy it offers to travelers. However, there is the rising cost of fuel
and the negative environmental impacts that car travel brings. A fly-drive package is
where a traveler flies into a destination, picks up a car and drives around the area/region
staying at different places along the way. At the end of the holiday, the tourist eventually
returns to the airport, drops the car off and flies home. This is also known as a self drive
holiday/road trip holiday/multi-centre holiday.

Coach travel - Holidays with coach travel as an integral part of it are often popular with
the grey market - seniors often prefer the leisurely pace of a holiday by coach.

Rail travel - Cheap form of transportation and runs frequently. However, it is not as
popular as air/car travel because trains become easily congested (you can buy tickets
without booking a seat). The main tourist market for rail travel is the younger generation.
High speed rail networks such as the EuroStar offer a real alternative to air transport.

CASE STUDIES UNIT 4

Martin’s lodge in Sinharaja Forest Reserve, Sri Lanka

The Empire Hotel and Country Club, Brunei Darussalem
ICE - International Currency Exchange
ASTA - The American Society of Travel Agents
The Cliffe Hotel in London, England (small, friendly family-run hotel)
Villa Sunrise - Bali (guesthouse)
Kathmandu HI Thamel Hostel (Kathmandu, Nepal)
Water taxi in Male, Maldives
SkyBus shuttle bus service between Melbourne airport and the city centre.
SMRT in Singapore (offers an extensive network of trains, buses and taxis)
United Airlines has the Chicago O’Hare International airport (ORD) as its main base.
British airways uses London Heathrow (LHR) as its base.
Qantas, the national carrier for Australia, uses Sydney’s Kingsford Smith Airport (SYD) as its
base.
ATAG - The Air Transport Action Group
Three main international air alliances: Oneworld, SkyTeam and Star Alliance
The ZON Ferry Terminal in Johor Bahru, Malaysia
Port of Dover, England. It is known as the gateway to Europe.
TGV rail network in France has considerable government support and is used extensively for
tourism purposes.
Abela luxury rail product offered to tourists in Egypt.
Blue Train in South Africa
Trans-Siberian Express in Russia
Hudson Bay Train in Canada
1. The tourism sector declined due to the epidemic happening in the world today. It is really
hurting destinations that are over-dependent on the tourism industry. List and explain two more
reasons why destinations should not be over-dependent on the tourism industry.
- because then the government would care more about the needs / interests of the tourists
instead of the local people
- because if there is a war/terrorism, people would be afraid to go and the economy would
struggle due to no tourists

6. Give two advantages and two disadvantages of going direct via the internet and bypassing
traditional intermediaries in the chain of distribution?
Internet :
Advan : - quicker and easier
- cheaper
Disadvan : - seller may be scammer
- can get hacked

Traditional :
Advan : - face to face conversation to avoid misunderstanding
- can select product/ services
Disadvan : - company may be fraud
- more expensive, have to pay for transport

7. List all the 6 components of the Travel and Tourism industry.

 Accommodation and catering
 Transportation
 Attractions
 Tour operators
 Travel agents
 Tourist information and guiding services
 Shopping as a reason for travel
For many tourists shopping has become an important reason for travel. Tourists used to go on
vacation to sightsee. By plane, train or car, tourists set out to explore what the destination had
to offer. North America is home to some impressive natural sights, world-class museums and
galleries, dining, festivals, events and more. Though these attractions still appeal to tourists, a
new trend has emerged: shopping. Shopping tourism in New York City (NYC) New York City
receives 10 million international tourists each year: the most of any city in the USA. NYC &
Company, the city’s official tourism marketing organization, estimates that almost 25 cents out
of every dollar spent by visitors in New York City is spent on shopping. Travelers spend
approximately $8 billion (USD) in the city’s stores and shops, generating $750 million (USD)
annually in sales taxes for the city.
[Link] the following:
a. The number of international tourists to New York City each year - 10 million
b. The amount spent on shopping - $8 billion
c. The continent that New York City is in - north america
d. The amount of sales taxes generated from shopping each year - $750 millon

2. Explain three ways in detail how the national government can encourage the growth of
tourism.
 Have a tourism policy plan
 Highlight areas for development/development planning.
 Fund NTOs to support and develop the industry.
 Protection laws for tourists and locals
 Maintain political stability
 Have a website with options of different languages and 24/7 availability. Can promote
climate figures, traditions and cultures, etc. here.
 Create partnerships
 Fund public transportation to increase accessibility

3. There might be negative effects of growth of tourism as well. List two negative impacts that
might occur for each of the following.
- Economic negative impacts : import leakage, export leakage
- Environmental negative impacts - pollution, loss of natural habit
- Socio-cultural negative impacts - crime, globalitsation

Tourism in Japan
Tourism in Japan The Japan National Tourism Organization (JNTO) has announced that the
number of inbound tourists visiting Japan has grown by 47.1%. This year visitor numbers
reached 19.7 million, the highest number since 1964. For the first time since 1970, the number
of overseas visitors to Japan has exceeded the number of Japanese outbound travelers. Sales
of domestic tours have continued to grow.
1. Identify the following :
a. The capital of Japan - Tokyo
b. If local time in Japan is ahead or behind the UK - Japan is ahead of UK
c. The number of inbound tourists to Japan - 19.7 million

2. State two services that tour operators provide for their customers when at a destination.
 Provide a resort representative
  Advice for enjoying holiday
 Transfer tourists to airport
 Provide information through representative/information board
3. Assess the likely factors that have contributed to the growth of inbound tourism in Japan.
 Visa rules relaxed
 Political instability/war/terrorism somewhere else (Japan perceived to be safer)
 Growth in personal wealth in Asia - more people can afford travelling
 Growth in cultural tourism
 Depreciation in its currency - becomes more affordable
State four likely positive impacts of extending the opening hours of visitor attractions.
 Increased income
 Greater multiplier effect
 More jobs created
 Greater customer satisfaction
 Less overcrowding
 Attracts new markets
 share/learn history/culture further
 Destination becomes more successful

Explain three ways visitor attractions can manage large crowds.

 Make the price more expensive
 Hire security guards
 Make queue system
 Extend opening hours
 Only allowing online reservations / pre-booking tickets
 Hire more employees to combat the increasing visitors
 Timed tickets / limit the amt of time people can be there

Explain one reason why each of the following are important in creating a successful destination:
1. Transport: A good transport system attracts more tourists, and will increase accessibility.
They will be able to easily move around in the country, and will have higher customer
satisfaction.
2. Attractions: Tourists will not go to a place where they will not be entertained. Attractions
need to be present in order for tourists to have something to do while they are at that
destination. They will cause tourists to stay a longer time in the destination, thus
spending more. They can also be a pull factor for the tourists to come and visit the
country.
3. Accommodation: so that tourists have a place to stay, and if people enjoy the
accommodation facility, they will stay for a longer time in the destination.

Explain three benefits to destinations of developing local tourism products.

 Less leakage from imports
 Creates jobs for local people
 Promotes local culture/heritage, and spreads awareness of it
 Improves local destination brand, increasing its appeal and competitiveness.

Why do accommodation providers measure their occupancy rate?

 Track/montior performance (growth/decline)
 To report to national tourist boards to monitor performance of tourism in the country.
 To evaluate if changes made have caused improvement
  To compare with competitors (See how well it is doing)
Explain three factors tour operators must consider before creating package holidays.
 Estimated amount of sales
 Customer wants and needs. must conduct market research and planning.
 Safety concerns at destination
 The price at which the package will be set