Chapter 1 Introducing the World_s Largest Industry

Introducing the World’s
Largest Industry
Principles of Hospitality & Tourism
• Business of travel
• Dynamic group of industries that have
developed to serve the needs of travelers
• Has a significant economic impact on
almost every nation in the world
• Knows no political, ideological,
geographic, or cultural boundaries
Services & Tourism Industry
• Services & Tourism go hand in hand
• Services are growing at a faster rate than
all agricultural & manufacturing
businesses combined
• Leading Producers of jobs worldwide
• Prospects are great because people travel
for business & pleasure
• Even during times of recession, travel &
tourism expenditures continue to rise
What is tourism?
• Definition is emerging
• Tourism: the temporary movement of
people to destinations outside their normal
places of work and residence, the
activities undertaken during their stay in
those destinations and the facilities
created to cater to their needs.
Segments of Tourism
• Air Transportation
• Theme Parks
• Eating & Drinking Establishments
• Accommodations
• Museums
Travel Industry Association of
America (TIA)
• Tracks & reports tourism trends in an
effort to highlight the size, scope, &
impact of the industry grouping
• Promotes tourism
• Uses the following definition (statistics):
– Activities associated with all overnight trips
away from home in paid accommodations and
day trips to places 50 miles or more, one way,
from the traveler’s origin
Tourism Model
• Look at the Elephant on pg 6
– Each body part works together
– Notice how each segment is related to the
• Tourist is the focal point (Remember
customer service?)
• Individual tourists may deal with any of
the dealers/suppliers, but they may rely
on tourism promoters to assist them
– Travel agencies, tourism boards, other
marketing services
– Suppliers may sell/provide independently or
group them together (air, hotel, car rental)
• Gradual changes are noticed in
• Decrease in popularity
– Niagra Falls & Brighton
• Methods of travel also change in
– Steamships, airplanes, etc.
• Political & Economic Situations can affect
History of Travel & Tourism
• Empire Era
• Middle Ages & Renaissance Era
• Grand Tour Era
• Mobility Era
• Modern Era
History of Travel & Tourism
• In the beginning it was simple
– Seasons changed, animals migrated and so
did people
• History provides insights into the reasons
for travel
• Over the years, travel has become a
The Empire Era
• Tourism began to develop
• Egyptians to Greeks and ended with the
fall of the Roman Empire
• People began traveling in large numbers
for governmental, commercial,
educational, & religious purposes
• Travel for necessity & pleasure
• Roman currency helped make travel easier
Middle Ages & Renaissance Era
• Feudal system replaced Roman Rule
– Fragmented transportation systems,
currencies, and languages
– Travel became difficult and sometimes
• Crusades (conquest & war) led to the
desire of people being able to venture
• Desire to learn from & experience other
Grand Tour Era
• Marked the height of luxurious travel &
tourism activities
• Originated with the wealthy English and
• Travel became a status symbol
• Industrial Revolution began
– People became tied down
Mobility Era
• Growing economic prosperity
• Travel to new & familiar locations (near &
• Travel industry increased with new roads,
stagecoaches, passenger trains, & sailing
• 1914 Model T (Henry Ford)
Modern Era
• George Westinghouse created the paid
– Believed that annual breaks from work would
increase productivity
– Allowed working middle class were given the
financial means & time to travel
• Mass tourism received a boost after World
War II
– People were exposed to new & exotic
Modern Era
• Cars were produced in large numbers
• Gas was no longer rationed
• Credit card was born in 1950
• Internet opened doors
Bringing Tourism into Focus