Chapter 5 Tourism Industry
Learning Objectives
• Explain the interdependencies between the
different sectors of tourism industry.
• Identify the important sectors of hotels, food
services, transportation, and travel services
required for a tourism destination.
Overview
The sectors of tourism industry:
1. Hotels;
2. Food services;
3. Travel services;
4. Transportation;
5. Infrastructure.
Operating Sectors of the Tourism
Industry
1. Hotels — Accommodations Structure
Accommodations
Non-Commercial
Non-Profit
Commercial
Institutional
Hotels
Motels
(Chains/Independent)
Private
Homes
Hostels
College/
University
Resort
Hotels
Upscale
Home
Exchange
Shelters
Spas and
Health
Care
Facilities
Deluxe
Suite
Hotels
Luxury
Spa
Meetings &
Convention
Hotels
Extended
Stay
YM /
YWCA
Upscale
Economy
Mid Range
Mid
Range
Casino
Budget
Budget
Airport
Hotels
Bed &
Breakfast
Time Share
Facilities
hospitality and related services
Introduction
Providing overnight accommodations for travelers goes back
into antiquity—it is the world’s oldest commercial business.
Guest rooms were first part of private dwellings.then came
caravansaries and guest quarters provided in monasteries.today,
lodging and food service activities are enormous in economic
importance.many lodging places provides meeting rooms,
convention facilities and services,restaurant ,bars, entertainment,
gift shops, gaming, health clubs, and other accommodations
industry.
Hotels classifications
• Different systems are used to classify hotels.
• The five-star rating system is preferred.
–
–
–
–
–
Five stars;
Four stars;
Three stars;
Two stars;
One star.
• Grading criteria are given by national tourism
organization.
Top 10 hotel chains and brands by AHMA（2004）
Hotel chains
Brands
Inter-Continental Hotel Group（洲际）
Candlewood，Centra，Crowne Plaza，Forum Hotel， Holiday Inn，Holiday
Inn Express，Holiday Inn Garden Court，Holiday Inn Select，Inter
Continental，Parkroyal，Posthouse，Staybridge Suites by Holiday Inn，&
Sunspree Resorts
Cendant Corporation（圣达特）
Amerihost Inn，Days Inn，Days Serviced Apartments，Howard Johnson，
Howard Johnson Express，Knights Inn，Ramada，Ramada Limited，
Super 8，Thriftlodge，& Wingate Inn
Marriott International, Inc. （马里奥特）
Courtyard by Marriott，Fairfield Inn by Marriott，Marriott Conference
Centers，Marriott Executive Apartments，Marriott Hotels and Resorts，
Ramada Int'l Plaza，Ramada International Hotels & Resorts，
Renaissance Hotels & Resorts，& Residence Inn
Choice Hotels International, Inc. （精选国际）
Clarion，Comfort Inn，Hotel & Suites，Econo Lodge，MainStay Suites，
Quality Inn，Hotel & Suites，Rodeway Inn，& Sleep Inn
Hilton Hotels Corporation（希尔顿）
Conrad，Doubletree，Doubletree Club，Embassy Suites，Embassy
Vacation Resort，Hampton Inn， Hampton Inn & Suites，Hilton，Hilton
Gaming， Hilton Garden Inn，& Homewood Suites
Best Western International（最佳西方）
Starwood Hotels & Resorts Worldwide, Inc. （史达屋）
Accor International（雅高国际）
Carlson Hospitality Worldwide（卡尔森）
Accor North America（雅高北美）
Best Western
Four Points Hotel by Sheraton，Sheraton，St. Regis/Luxury Collection，
W Hotels，& Westin
Century，Coralia，Etap Hotel，Hotel Formule 1， Hotel Novotel，Hotel
Sofitel，Jardin，Libertel， Mercure Hotel，Pannonia，Parthenon， &
Suitehotel
Country Inns & Suites by Carlson，Park Inns & Suites，Park Plaza Suites，
Radisson，& Regent Hotels
Coralia，Hotel Novotel，Hotel Sofitel，Mercure Hotel，Motel 6，Red Roof
Inn，& Studio 6
Top 20 Hotel Chains (2000)
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Corporate Chain
Cendant Corporation
Bass Hotels & Resorts
Marriott International
Accor
Choice Hotels International
Hilton Hotel Corporation
Best Western International
Starwood Hotels & Resorts
Carlson Hospitality Worldwide
Hyatt Hotels/Hyatt International
Sol Meliá
Hilton International
Wyndham International
Compass Group (Forte Hotels)
Société du Louvre
FelCor Lodging Trust
TUI Group
MeriStar Hotels & Resorts
Extended Stay America
U.S. Franchise Systems
Rooms
Hotels
541,313
490,531
390,469
389,437
350,351
317,823
307,737
227,042
129,234
86,711
82,656
64,647
62,262
59,928
53,083
50,000
49,801
48,767
41,586
41,177
6,455
3,096
2,099
3,488
4,392
1,895
4,065
738
716
201
338
223
242
453
868
186
204
225
392
505
*Rankings are based on total rooms
Source: Hotels, July 2001. Hotels magazine, a Cahners Publication, 2000 Clearwater Drive, Oak Brook, IL, U.S.A. 605230
Trends
1) Merges and acquisitions. They have been in the lodging
industry for some time, but now are current merge mania. And
consolidation will continue to take place both domestically and
internationally.
2)Hotel chains.Chains can most effectively use training programs,
employee selection programs, major equipment with different
layout, prices, advertising, technology, marketing, and so on.
3) Franchisees. The advantage is that they receive a known
“name”,the knowledge,advice,and assistance of a proven
operator,and it also spreads the costs of promotion, advertising,
and reservation systems over all outlets, making the unit cost
much lower.
4) Management contracts.More large properties will be operated
under management contracts.
5) The increased use of central reservation system.
2. Food Services Structure
Food Services
Fast Food
Restaurants
Independent
Specialty
Ethnic
Local
Traditional
Restaurants
Cafeterias
Chain
Specialty
Broad Menu
Independent
In-Hotel
Minimal
Service
Ethnic
Local
Full Service
The Food Service Industry
Like the lodging industry ,the food service industry is a very
old business.Such a service came out of the early inns and
monasteries.In cities,small restaurants began serving simple
dishes such as soups and breads.
With the development of stagecoaches,taverns began providing
food and lodging along the early road and in small
communities .Some believe that these roadside taverns were
really the beginnings of the American hotel industry.As cities
grew so did eating establishments.Some names of historic
restaurants in the 1820s in New York City were Niblo’s
Garden ,the San Souci,and Delmonico’s.
Kinds of the food service
1)local restaurants . That include fast-food units,coffee
shops,specialty restaurants,family restaurants
cafeterias,and full-service restaurants.
2)travel food service. It contains food operations in hotel
and motels.
3) contract institutional food service.
4) vending
Fast food
Fast food chains have enjoyed great success in part .
Reasons:
1)limited menus.It gives customers purchasing power, less waste,
more portion control.
2)Lower operating costs.Most fast—food operations use disposable
paper and plastic,so incline the costs.
3)Specialization. The employees have becoming specialists ,and
they work efficiently.
4)Good reputation. Chain firms are house—hold words: like
McDonald’s, Kentucky Fried Chicken.
3 Travel services — Channels
Suppliers
Transportation providers, Accommodation Food Service Resorts
Recreation, Entertainment, Etc.
Specialty
Channeler
Direct
Tour
Specialty
Specialty
Channel
Wholesaler
Channeler
Channeler
Via
Retail Travel
Telephone
Agent
Suppliers
office
Tour
Specialty
Tour
wholesaler wholesaler
Wholesaler
Retail Travel
Tour
Retail Travel
Agent
Wholesaler
Agent
Retail Travel
Agent
Customers
Individuals Pleasure Groups, Business Groups, Etc
The ways of travel distribution channel
Travel agents
Internet
Consolidators
The tour wholesaler
Specialty channeler
Automated distribution
Travel Agents
The definition of travel agent:
A travel agent is a middleman --a business man or person selling the travel
industry’s individual parts or a combination of the parts to the consumer.
In marketing terms: a travel agent is an agent middleman, acting on behalf of the
client, making arrangements with suppliers of travel(airlines,hotels, tour operators),
and receiving a commission from the suppliers.
In legal terms: a travel agency is an agent of the principal—specifically,
transportation companies. The agency operates as a legally appointed agent,
representing the principal in a certain geographic area. The agency functions as a
broker( buyer and seller together) for the other suppliers , such as hotels, car
rentals, ground operators, and tour companies.
A travel agent is thus an expert , knowledgeable in the schedules, routing, lodging,
currency, prices, regulations, destinations, and all other aspects of travel and travel
opportunities. In short, the travel agent is a specialist and counselor.
Travel Agents
Types of Travel Arrangements Made
As would be expected, the most common type of travel arrangement made is for
air transportation. In 1997, 56 percent of the total dollar volume was for air travel.
Cruise sales accounts for 18 percent up from 14 percent in 1995. Much smaller
proportions of the total dollar volume are attributable to lodging, car rentals, and
miscellaneous arrangements; these activities accounted for 27 percent of total
agency dollar volume.
Air 56%
Cruise 18%
Hotel 11%
Car rental 8%
Misc 8%
Travel Agents
The future of travel agents
There is a question being raised today: Will there be a travel agent in the future?
Some so-called experts have been predicting for years that intermediaries would
disappear and that with the current level of education, technology, and communication,
consumers could conduct business directly with suppliers, and middlemen would
gradually disappear because they were no longer needed.
.
Some other reason why this question has being raised:
The Internet
Commission caps封顶:
The maximum dollar amount an airline, or other supplier, will pay as commission regardless of the actual price of the
ticket or the standard commission rate. (From: http://www.hometravelagency.com/dictionary/index.html)
Commission cuts
The changing world of travel
Travel Agents
What’s the fact?
Actually ,intermediaries are doing more business than ever before, while
in the same time there has been an increase in the direct selling. That’s
because travel agents are adapting to new ways of doing business. They
are shifting their revenue source from the airlines toward other suppliers,
they are increasing in size, they are charging fees. And travel agents are
joining consortiums. They are creating their own web sites. Despite
Internet is the rival of travel agencies, travel agencies can make use of it,
for example: agents can use Internet to research travel products or
destination, and through Internet travel agencies can greatly expand their
reach.
And the most important thing that make travel agents survive is they are
certificated by the client—they do really save time and money for the
customers.
Travel Agents
Travel Agency Organization
ASTA : The American Society of Travel Agents
ARTA: The Association of Retail Travel Agents
NACOA: The National Association of Cruise Only Agencies
ICTA: The Institute of Certificated Travel Agents
Travel Agents
The American Society of Travel Agents (ASTA)
Brief instruction of ASTA:
It is the largest association of travel and tourism professionals in the world with
26500 members in over 165 countries. It was established in 1931, ASTA continue to
serve the best interests of the travel industry and the travel public.
The purpose of ASTA:
•
•
•
•
•
•
•
•
To promote and encourage travel among people of all nation.
To promote and encourage the use of professional travel agents worldwide.
To promote and represent the views and interests of travel agents to all levels of government
and industry.
To promote professional and ethical conduct in the travel agency industry worldwide
To serve as an information resource for the industry worldwide.
To promote consumer protection and safety for the traveler.
To sponsor and conduct educational programs for travel agents on subjects related to the
travel industry.
To engage in any lawful activity that the members of the association shall deem fit and
appropriate for the promotion of their common welfare.
4. Transportation
A complete transportation system consists of four elements:
• Modes
– road, sea, air, and rail.
• The way
– roadways, seaways, airways, and railways.
• Terminals
– coordination between the three modes of air, rail, and bus.
• Technology
– Intelligent Transportation Systems (ITS) can help manage the
ground transportation.
Passenger Transportation Structure
Transportation
Air
Road
Bus
Auto
Motor
Bike
Other
Water
Rail
Inland
Vehicles
Used for Accommodation
Maritime
Motor
Home
Charter
Scheduled
Privately
Owned
Private
Scheduled
Charter
and
Tour
Operator
Rental
Foot
Truck
Camper
Private
Private
Travel
Trailer
Tent
Trailer
Other
Commercial
Snowmobiles
Private
Commercial
Commercial
Charter
Charter
Scheduled
Scheduled
Bicycles
Horse
Drawn
Vehicles
Aerial
Tramways
and Ski Lifts
Passenger transportation
Introduction
(一) The position of various mode of passenger transportation
•
Air travel dominates long—distance and middle—distance tourism.
•
The private automobile dominates for short trips and is the most popular means
of travel for most domestic journeys,and is the very important in region and
international tourism.
•
Rail travel plays a more limited role than it did in the past ,but it could increase
its market share ,especially in Europe.
•
Motor coach can reach many places that are not serviced by any other public
mode ,but it account for a very small percentage.
•
5) Cruises are becoming more popular and are the fastest—growing segment
of tourism,although it is still small quantitatively.
Passenger transportation
(二) The pressures on transportation putted by world tourism growth
Urgent Transportation Problems:
1. Congestion.
• Serious congestion affects most passenger transportation
modes,particularly on roads and at airports during peak
periods.
2. Safety and security.
• This is a basic requirement of tourism.
3. Environment.
• An increase in traffic may harm the environment if an area
does not have the carrying capacity for additional tourists.
4. Seasonality.
• Seasonal patterns of tourism demand create overcrowding
at certain times.conversely,low occupation and load factors
will occur at other periods.
Airline Industry
• World airline industry carries over 1 billion
passengers per year.
• The U.S. airline industry in 2000
* Employed 679,967 people
* Carried 1.6 million passengers each day
* Recorded revenues of $129.5 billion
However, during 1990 - 1993, U.S. carriers lost more than
$12.8 billion. A weak air transportation system affects the
rental car business, hotels, and attractions.
In 2001 carriers suffered record losses.
The Airline Industry
Important position
The world’s airline industry now carries over 1billion
passenger per year.There are about 800 air carriers in the
world,and they employ more than 3 million people and
fly from 14000airports,and recorded 109.5billion dollars
in revenues in 1997.
Guests
A 1997 surge of air travelers by the Gallup Organization revealed
that a record 80% of the entire adult population in the United States
had flown. Two out of every five U.S.citizens flew during 1997.
The surge found that 53% of airline trips during 1997 were for
pleasure or other personal reasons, and 47% were for business.
The Airline Industry
Advantages
• Rapidness. The airline revolutionized travel,and the range and
speed of jet travel has greatly expanded what tourist or
business travelers could accomplish with the equivalent time
and funds at their disposal.
• Convenience. The system is very efficient.You only need
make a call to an airline or a travel agent and purchase your
ticket,then all you have to do is go to the airport and check
your bags to your desired destination.
•
Safety. According to National Transportation Safety Board’s
date, U.S. air carriers provide scheduled service have an
enviable safety record.
The Airline Industry
Disadvantages
•
Some people fear of flying .
• Lacking of geographic accessibility—many communities in the
country era not serviced by air transportation.
• An additional problem is the length of time spent getting to and
from the airport.Frequently,this time exceeds that spent en route.
• It is a point to point travel,not a surface travel,so it must be
joined with other modes.
The Airline Industry
Deregulation and Alliances
Under deregulation, the airline industry has undergone
dramatic change. Looking back , we can see that it led to
significant consolidation, hub systems, low airfares in
competitive situations, and high airfares where competition is
lacking. (Airline Deregulation Act issued in 1978)
A wave of alliances. And it based on equity positions, to code
sharing, to frequent flyer programs reciprocity and other joint
marketing arrangements.
Rail Industry
• Reached its peak volume
in the U.S. in 1920.
• Major railroads want out of the passenger service
business (except commuter service). Passenger service
depends on Amtrak. The situation is similar in Canada
with passenger service dependent on VIA Rail.
• Passenger rail service is much more important outside of
North America. Efficient, economical, high speed trains
provide an alternative to air travel.
The Railway Industry
History and nowadays
Railway station transportation , once the major mode of travel
in the U.S., reached its peak volume in 1920. And today the
survival of service depends largely on Amtrak.
The Railway Industry
Amtrak
• It is the marketing name for the National railroad Passenger
Corporation, the controlling stock of which is owned by the
U.S. government through the U.S.Department of
Transportation. Amtrak’s business is providing rail passenger
transportation in the major intercity markets of the U.S..
• Although it receives financial support from the federal
government , Amtrak is not a government agency. It is a
corporation structured and managed like other large business
in the U.S. and competes with all other modes in the
transportation marketplace.
The Railway Industry
Amtrak
• Serving 44 states and 500 destinations on its 23000—mile route
system, Amtrak carried more than 20 million intercity passengers
in 1997. In addition, Amtrak carried more than 48 million
commuters on trains operated under contract. Amtrak employs
223000 people. Amtrak generated a record—making revenue of
1.67 billion dollars in fiscal year in 1997. About 22000 of its
employees are represented by 14 different labor organizations.
But threats are also here for Amtrak. Especially for the
competition with airline. This is what it does :
(1) modernize services.
(2) improve the speed of rail travel.
Motorcoach Industry
• Intercity bus passengers tend to be lower income nonbusiness travelers who are very price sensitive.
• Intercity bus service is becoming less important due to
increased auto ownership and aggressive airline pricing.
• Bus travel is characterized by:
• More travel to and from rural areas and small towns than
other modes of transportation.
• Lower average ticket revenues than other modes.
• Intercity bus industry is a small-business industry with a
great deal of flexibility.
• Many bus companies focus primarily or exclusively on
charter, tour or commuter operations.
The Motorcoach industry
Introduction
The American Bus Association reports that there are between
26000 and 28000 commercial buses in use for charters, tours ,
regular route service, and special operations in North American.
The amount of time that motor coach fleet buses spend in
charters is 66.6%, in tours 22.5%, and in regular route scheduled
service 10.9%.
According to the U.S.Department of Transportation, the 17
carriers in the U.S.reported 33.7million revenue passengers in
1996, and overall operating revenue for them was 835.8 million
dollars in 1996.
The Motorcoach industry
Advantage
1) Cheap and convenient.
2) Energy—efficient.As reported at the 1993 White House
Conference on the Globe climate Change ,intercity bus
service is the most energy—efficient passenger
transportation mode.
Two largest companies
Greyhound Line Inc. is the only nationwide bus carrier for
regular route service.
The Trailways National Bus System , is a federation of
independently owned bus companies , and covers a large
portion of the U.S..
The Motorcoach industry
Charters and Tours
Both domestic and international travelers are heavy users of
motor coach because coach travel gives them to see and experience
sights with a group of friends without having to deal with traffic and
road maps. About 1/3 of U.S. motor coach and tour operators polled
by ABA report an increase in overseas visitors. Sales of tours and
charters are expected to grow in the 3 to 5% range.
Trends
(1) merges and acquisitions
(2) improve service ,change the image
Automobile
• Most popular mode of travel in the world because of
affordability, flexibility, and convenience.
• In the U.S., the Travel Industry Association of America
reports that 80% of person- trips are made by auto.
• Rental car industry growing in importance.
* Grosses approximately $24 billion per year.
The Automobile
Position of auto
Most of the travel in the world takes place in the automobile.
The National Travel Surge reports that 80% of the person-trips
are made by auto (includes rental cars ,truck, and RVs) in 1996
in the U.S..
Advantages
(1) affordability
(2) flexibility
(3) convenience
The Automobile
Kinds of auto
(1) Recreation Vehicles
(2) Private Cars
(3) Rental Cars
(4) Taxi and Limousine Service
Cruise Industry
• Fastest growing segment of the travel industry.
• Since 1980 had average annual growth rate of 8.4%.
• Expanding fleets.
• Adding new ports of call.
• Seeing consolidation.
• Served by the Cruise Lines
International Association.
The Cruise Industry
The position of the cruise industry
Cruise Lines International Association states that cruising is
the currently the fastest—growing segment of the travel industry.
It is experiencing a surge of growth in passengers, ships, and ship
passenger capacity. Since 1980, the industry has had an average
annual growth rate of 7.6%.
Although ships have been a means of transportation since early
years, the cruise industry is young, and it is barely 20 years old.
Its purpose is really to provide a resort experience rather than
point—to—point transportation.
The Cruise Industry
Clientele
Historically, most of the cruise company have focused their
marketing efforts on North American clientele. However, with a
marked increase in recent years of European, South American,
and Asian vacationers taking American—style cruise, those
company have begun to par more attention to the international
markets, especially for European clientele.
Repeat business
No other vacation kind can touch a cruise for produce
satisfaction and repeat business. Of those who have cruised in the
last five years,the average number of cruise per person is 2.4, or
one cruise every two years.
5. Infrastructure
•
•
It consists of all the underground and surface
developmental construction of a region.
The important part of tourist infrastructure:
–
–
–
–
–
–
Water system;
Power sources;
Communication network – telephone and/or internet
access;
Drainage and sewage;
Health care – the type of health care facilities based
on the number of visitors, ages, the type of activities;
Security system.
The End !