The Tourism
Business
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Chapter 5
The Tourism Business
The Tourism Business
Travel and Tourism
Transportation Providers
2
The Tourism Business
Chapter Objectives
Identify factors that contribute to the growth of
tourism.
Discuss the reasons that people travel.
Describe the different types of tours.
Explain the importance of transportation
providers.
Identify the different types of transportation.
Discuss the impact of the cruise industry.
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The Tourism Business
Introduction to Travel and
Tourism
The travel and tourism industry includes
businesses and government agencies that service
travelers.
In 2004, overall spending by domestic and
international visitors in the United States increased
more than 4 percent to $568 billion.
Section 5.1
4
The Tourism Business
The Growth of Tourism
Trends contributing to the
growth of tourism are:
Dual family income
– Disposable income
disposable income the
money left from a person’s
gross income after taking
out taxes
Baby boomers
Health
Section 5.1
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The Tourism Business
The Growth of Tourism
Trends contributing to the
growth of tourism are:
Leisure time
niche market a new
market in tourism that
bases travel on specific
interests, such as
ecotourism
New transportation
options
The Internet
Niche markets
Section 5.1
6
The Tourism Business
The Growth of Tourism
Examples of niche markets are:
Travel
for the
disabled
Section 5.1
Adventure
travel
Geotourism
Agritourism
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The Tourism Business
Reasons for Travel
There are two main reasons for travel—business
and leisure.
Business travel could be motivated by meetings,
conventions, or other general business reasons.
Leisure travel involves travel for pleasure.
Section 5.1
8
Reasons for Travel
Reasons for Leisure Travel
Visiting family and friends
Natural and constructed attractions
Religious attractions
Fairs and festivals
Cultural attractions
Sports events
Shopping
Section 5.1
9
The Tourism Business
Tourism’s Economic
Impact
In the United States, one out of every eight
people is either directly or indirectly employed
in the travel and tourism industry.
The travel industry is one of America’s largest
retail industries.
Section 5.1
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The Tourism Business
Tourism’s Economic
Impact
The travel industry is one of the largest
employers in 29 states.
Travelers in the United States spend about
$17,000 per second, $1 million per minute,
$60 million per hour, and $1.4 billion per day.
Section 5.1
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The Tourism Business
Types of Tours
A tour can include accommodations,
transportation, food service, and entertainment.
Tours that include all services for one price are
called all-inclusive tours.
Section 5.1
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The Tourism Business
Types of Tours
A tour operator or company
may develop a package
tour as a charter tour.
package tour a
prearranged tour that
offers value, guaranteed
sightseeing, and a
quality product
charter tour a tour in
which a tour operator
buys all the seats on an
airplane, train, or bus
and resells them to
travelers
Section 5.1
13
The Tourism Business
Types of Tours
The three types of package tours are:
Independent
tours
Section 5.1
Hosted
tours
Escorted or
Guided tours
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The Tourism Business
Types of Tours
A customized tour may
include accommodations,
transportation, and
sightseeing.
Section 5.1
customized tour a tour
that is more expensive
than a package tour and
is designed specifically for
an individual tourist
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The Tourism Business
Tour Benefits
For tourists, the benefits of tours include:
Volume discounts
Guaranteed sightseeing entrances
Prepayment options
Stress-free travel
For retailers, the benefits of tours include:
Ease of booking
Maximum earning potential
Section 5.1
16
The Tourism Business
Tour Positions
The growing travel and tourism industry offers a
variety of career options in four positions:
Tour escort
Tour guides
Tour hosts
Other tour positions
– Reservationists, sales, accounting, product
managers, assistant managers, administrative
assistants
Section 5.1
17
The Tourism Business
Growth of Tourism
Travel and tourism is one of the largest and
fastest-growing industries in the world.
Other vital segments of the tourism business
include the transportation providers.
Section 5.1
18
The Tourism Business
Electronic Etiquette
Operating
e-tail business
on an Professionals
electronic channel—the
Tourism
is anan
international
business.
who work
Web—can
beto
costly,
due to and
design,
delivery,
and
in tourism
need
understand
adapt
to the returns,
cultural and
operating
expenses.
language
differences
of their business partners in order to
work and negotiate effectively.
Though Many larger dot-com companies crashed in the
small
stores
Harris Cyclery
of West Newton,
For1990’s,
example,
it may
be like
acceptable
to call business
associates
Massachusetts,
salesbut
using
a basic
Web
in the
United Statesactually
by theirincrease
first names,
in Japan,
such
site. Today,
a third offor
Harris’s
bicycle and
business
in on
informality
is reserved
close friends
familyrides
members.
the Web to get hard-to-find parts and personal service.
Many businesspeople are turning to the Internet to stay up-todate
on key an
aspects
of international
business
etiquette.
Describe
e-business’s
home page
to your
class after
viewing one through marketingseries.glencoe.com.
For more information, go to marketingseries.glencoe.com.
Section 5.1
19
The Tourism Business
5.1
1.
What three factors many contribute to the
growth of tourism?
2.
What are two reasons that people travel?
3.
What are three types of package tours?
Section 5.1
20
The Tourism Business
Modes of Transportation
Passenger transportation is intermodal, which
means that it relies on air and ground as well as
water transportation methods.
The different modes of transportation include:
Air
transportation
Section 5.2
Ground
transportation
Water
transportation
21
The Tourism Business
History of Air
Transportation
The Wright brothers’ first successful airplane flight
took place in 1903.
Passenger service on airplanes traveling short
distances began in 1919.
In 1927, Charles Lindbergh crossed the Atlantic
Ocean in the first long-distance flight.
Section 5.2
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The Tourism Business
History of Air
Transportation
Air Travel 1945
The International Air Transport Association
(IATA) reorganized to promote cooperative
agreements for passengers traveling across
international borders.
Section 5.2
23
The Tourism Business
History of Air
Transportation
Air Travel 1958
Congress enacted the Federal Aviation Act to
create the Federal Aviation Administration
(FAA).
Section 5.2
24
The Tourism Business
History of Air
Transportation
Air Travel 1978
The Airline Deregulation Act allowed new
competitors to offer services in new markets to
create a more efficient national airline system.
Price competition became more common.
Many airlines were unable to compete.
Section 5.2
25
The Tourism Business
History of Air
Transportation
Air Travel 1978
Large carriers adopted
the hub-and-spoke
system.
Airlines created the
frequent-flyer program.
Section 5.2
hub-and-spoke system
an effective network for an
airline formed by a hub, or
large airport, connected to
other smaller airports
called spokes
frequent-flyer program
a program in which an
airline offers free travel,
upgrades, and discounts
to program members
26
The Tourism Business
History of Air
Transportation
Air Travel 1990s
Point-to-point service by regional low-cost
airlines offered an alternative to the hub-andspoke system.
Section 5.2
27
The Tourism Business
History of Air
Transportation
Air Travel 2000
Many airlines formed partnerships with other
carriers for non-competing or international
routes.
Section 5.2
28
The Tourism Business
Airline Careers
Onboard positions
include:
Pilot
Copilot
Navigator
Purser
Flight attendant
Section 5.2
Ground positions
include:
Ground crew
Security personnel
Gate agents
Reservation agents
29
The Tourism Business
Ground Transportation
Types of ground transportation include:
Rail
Automobile
Motor coach
Ground transportation takes longer and costs less
than other modes of transportation.
Section 5.2
30
The Tourism Business
Ground Transportation
In the 1970s, the National
Railroad Passenger
Corporation was founded,
now known as Amtrak.
Section 5.2
Amtrak a company that
operates a railroad system
with combined passenger
and rail service throughout
the continental United
States
31
The Tourism Business
Ground Transportation
Internationally, rail service is extremely popular as a
means of ground transportation.
In the United States, rail service has not been as
popular as it was in the first half of the 20th century.
Section 5.2
32
The Tourism Business
Ground Transportation
Types of automobile transportation include:
Automobile rentals
Limousines
Vans and shuttles
Section 5.2
33
The Tourism Business
Ground Transportation
Motor-coach transportation can be categorized as
charter-tour transportation.
The motor-coach industry was deregulated in 1982.
Motor-coach travel is popular in major cities as an
alternative to rail service, car rental, or taxis.
Section 5.2
34
The Tourism Business
Ground Transportation
Careers in ground transportation include:
Car rental agents
Sales
Reservations
Drivers
Section 5.2
Dispatchers
Chauffeurs
Conductors
Engineers
35
The Tourism Business
Water Transportation
Types of water
transportation include:
Ferry boats
Freighters
Riverboats
Yachts
Windjammers
Cruise ships
Section 5.2
windjammer a sailing
ship that offers passengers
the opportunity to sail
privately and work with a
crew
36
The Tourism Business
Water Transportation
Five factors that affect the price of a cruise ship are:
1.
2.
3.
4.
5.
The ship
The season of sailing
The length of stay
The cabin location
The itinerary
Section 5.2
37
The Tourism Business
Water Transportation
Cruise-ship positions include:
Sales
Reservations
Purser’s office
Section 5.2
Recreation
Shore excursions
Entertainment
38
The Tourism Business
Integrated Tourism
Systems
Air, ground, and water transportation services and
providers are significant contributors to the travel
and tourism industry.
Without a reliable system of transportation, the
travel and tourism industry could not be successful.
Section 5.2
39
The Tourism Business
5.2
1. What are three significant events that
affected the airline industry?
2. What are three forms of ground
transportation?
3. What five factors affect the price of a ship
cruise?
Section 5.2
40
The Tourism Business
Checking Concepts
1. List the factors affecting
the growth of travel and
tourism.
2. Identify the niche
markets in tourism.
3. Describe the reasons
for leisure travel.
continued
Reasons
factors
forthat
leisure
affect
1. The
2.
3.
Niche
markets
the
travel
growth
include
of travel
visiting
include
travel
forand
tourismand
family
arefriends,
trends
the
disabled,
toward natural
seeing
dual family
and
adventure
travel,
incomes; baby
constructed
attractions,
geotourism,
and
boomers
visiting
religious
who enjoy
travel;
attractions,
health
attending
agritourism.
fairs and festivals,
consciousness;
available
visiting
cultural
leisure time;
new transportation
attractions,
attending
options;
sports
events,
increased
and
Internet use; and niche
shopping.
travel markets such as
adventure travel.
41
The Tourism Business
Checking Concepts
4. Explain the impact of
tourism in the United
States.
5. List the types of tours
and tour packages.
6. Discuss the importance
of transportation for the
travel and tourism
business.
continued
ofand
tours
Tourism’s
impact
on
4. Types
5.
6.
Travel
tourism
include
tourbe
the United
States
would
not
packages,
such
as
includes
positive
possible its
without
independent,
effect
on transit
the hosted,
efficient
and
escorted
or out
economy:
One
programs
and
guided
of
everytours;
eightand
state-of-the-art
customized
tours,
people
in
the
United
transportation
which
are
tours that
States
is
directly
or
systems.
are
more expensive
indirectly
employed
than package tours
in the travel and
and are designed for
tourism industry.
individual tourists.
42
The Tourism Business
Checking Concepts
7. Identify the three modes
of transportation, giving
examples of each.
Critical Thinking
8. Explain why cruise-ship
tourism has become
popular.
7. Modes
8.
Cruise ships
of
have
transportation
become
popular
include: air
because
they offer
transportation
luxury
(planes); ground
appointments,
transportation (rail,
accommodations,
car, and
and
amenities.
motor
coach);cruise
Some
and water
lines
transportation
offer
reasonable
(passenger
rates
as well.
and
cruise vessels).
43
End of
The Tourism
Business
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The Tourism Business
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