CHAPTER 2:
UNDERSTANDING
THE TOURISM
INDUSTRY
RULES:
- The quiz has 20 hidden questions, and each
group chooses one from 1 to 20.
- 1 point for each correct answer and there are 4
special questions that give 2 points for a
correct answer.
- At the end, the top three groups will win based
on their total scores.
Blind box game
1 2 3 4 5
1
6 7 8 9 0
Blind box game
1 1 1 1 1
1 2 3 4 5
1 1 1 1
20
6 7 8 9
Which of the following are considered
Q key aspects of tourism supply?
1
Food and beverage
Tour operators and intermediaries
Hotel and resort
Economic conditions
Expl
ain
Key aspects of tourism supply: tour operators and
intermediaries, attractions, activities, accommodation,
transportation, and other tourist facilities and services.
• A: Food and beverage -> attraction
• B and C: part of the aspects
• C: Hotel and resort -> accommodation
• D: related to factors that affect the supply.
On a tour visit the pagoda and museum
Q that paid no fee. Which types of business
forms are associated with this situation?
2
The public and private sectors
The public and non-profit sectors
The private and non-profit sectors
None of the above
Explai
n
• Pagoda and museum: can be public and non-profit
sectors.
• Besides that, “paid no fee” is the keyword to eliminate
the private sector
Tourism supply is the result of productive
Q activities that involve the provision of _____
and _____ required to meet tourism demand
3 and which are expressed in tourism
consumption.
goods, services
money, time
people, places
experiences, memories
Q
4 First-line manager has the highest level
in an organization.
True False
Explai
n
• The first-line manager has the lowest level of
management.
• CEO or general managers are at the top of an
organization.
Q What does B2B and B2C stand for ?
5
Big to Big, and Best to Consumer
Business to Business, and Business to
Consumer
Business to Buyer, and Buyer to Consumer
Bank to Bank, and Bank to Consumer
Explai
n
Two types of tourism supply chains: B2B and B2C
• B2B: Business to business -> It serve as supplier from this
business to another business and does not work directly
with customers.
• B2C: Business to consumer -> A transaction between a
business and a customer.
How many components are in a typical
Q tourism supply chain?
6
1
4
Explain
There are four components in a typical tourism supply
chain:
• A Tour Supplier
• A Tour Operator
• A Travel Agent
• A Customer
How many forms of supply systems are
Q in tourism?
7
1
4
Explain
Three forms of supply system:
• The public sector
• The private sector
• The non-profit sector
The supply chain may also help operators to
understand where _____ gains, cost saving, and
Q investment may be needed to add value to the
8 customer’s experience of tourism.
profitability
effectiveness
efficiency
adaptability
In 4 components in a typical tourism supply
chain, which are creating tours, operating
Q tours and taking responsibility for
9 customers?
Tour supplier
Tour operator
Customer
Travel agent
Explain
• A: tour supplier -> provides the underlying services
and products
• B: tour operator -> creates, operates tours and takes
responsibility for customers. Selling their tours to travel
agents.
• C: customer -> experience service from tour
• D: travel agent -> Does not have the function of
organizing tours and only has the function of distributing
and selling tours to travelers.
…. is one of the most important factors
Q1 which determines the success or failure
0 of tourism businesses.
A plan
A ploy
Profitability
Strategy
According to the function managers
Q1 perform, they are grouped as?
1
Functional managers, Area managers, Produce
managers
Business unit, Area managers, Project managers
Functional managers, Divisional managers,
Business managers
Functional managers, Business unit, Project
managers
Explain
Managers can also be classified according to the function they
perform:
• Functional managers: oversee specialized functions
(accounting, research, sales, and personnel)
• Business unit, divisional, or area managers have general
management responsibilities at a lower level in an organization,
covering a group of products or diverse geographical areas.
• Project managers handle specific short-term projects,
coordinating different functions within a set time frame.
Online travel agencies (OTAs) such as
Q1 Agoda and Booking.com that allow
2 customers to book hotels, flights, and car
rentals online belong to the B2B business
model
True False
Explain
Agoda and Booking.com are online travel agencies
that connect with companies providing services
(hotels, airplanes,...) and customers.
🡺 B2C business model
Which one is NOT in the management
Q1 process?
3
Testing
Leading
Organizing
Planning
Explain
There are four implements in the management
process:
• Planning
• Leading
• Organizing
• Controlling
What is the management process which
Q1 is responsible for goals are set out and
means of achieving the goals are
4 recognized?
Planning
Organizing
Leading
Controlling
Explain
Planning is one of four implements of the management
process which is related to setting out detailed goals
and means of achieving the goals.
All the goods and services that go into
Q1 the delivery of tourism products to
consumers. It includes all suppliers of
5 goods and services whether or not they
are directly contracted by tour operators
or by their agents…or suppliers.
True False
How can we achieve cost-effectiveness in
Q1 tourism?
6
By increasing spending
By minimizing inputs and expenditure
By raising prices
By reducing quality
Explain
The goals of managers: Efficiency -> to reduce
expenditure and inputs to a minimum to achieve more
cost-effective outputs.
Studying supply issues helps tourism
Q1 organizations understand how the tourism
industry is both _____ and _____
7 geographically.
organized, distributed
profitable, sustainable
diverse, competitive
growing, declining
Q1 The provision of goods and services is a
core component of tourism supply.
8
True False
Explain
Tourism supply is the result of those productive
activities that involve the provision of goods and
services required to meet tourism demand and which are
expressed in tourism consumption.
Business strategies consist of: a plan, a
Q1 ploy, a pattern of behavior, a position in
relation to someone else or….
9
a perspective
view
segment
niche market
Q2 Profitability can be achieved when your
0 business retains stable customers and
consistently sells services every month.
True False
Explain
Profitability can be achieved through higher output,
better service, attracting new customers, and by cost
minimization
