TOURISM TOURISM INDUSTRYINDUSTRYTOURISM TOURISM INDUSTRYINDUSTRY

CHAPTER 6CHAPTER 6

Learning Outcome

1. Understand the travel and tourism industry

2. Elaborate differences between travel agent and tour operator

WHAT IS TOURISM?

Activities of person traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes”

(World Tourism Organization, 2004)

“Tourism is a composite of activities, services, and industries that delivers a travel experience: transportation, accommodations, eating and drinking establishments, shops, entertainment, activity facilities, and other hospitality services available for the individuals or groups that are traveling away from home”

McIntosh et. Al(2000, pg 14)

4 Different perspectives of tourism

1. The tourist2. The businesses providing tourist

goods & services3. The government of the host

community or area4. The host community

4 Different perspectives of tourism1. The tourist Seeks various physic and physical experiences and

satisfactions. determines the destinations chosen and the

activities

2. The businesses providing tourist goods and services

Businesspeople – tourism as an opportunity to make a profit by supplying the goods and services that the tourist market demands.

4 Different perspectives of tourism3. The government of the host

community or area Politicians – tourism as a wealth factor in the

economy of their jurisdictions Related to incomes their citizens can earn Foreign exchange receipts (tax receipts collected

from tourist expenditures)

4. The host community Local people – tourism as cultural and employment May be beneficial or harmful

Types of tourism

1. International tourisma) Inbound tourismb) Outbound tourism

2. Internal tourism3. Domestic tourism4. National tourism

Types of tourism

1. International Tourism a) Inbound tourism: visits to a country by non- residents. E.g. Australian to Malaysia b) Outbound tourism: visits by residents of a country to another country. E.g. Malaysian to

China

2. Internal Tourism• Visits by residents of a county to their own

country • E.g. Kuching to Kuala Lumpur

Types of tourism

3. Domestic Tourism• Internal + inbound• E.g. Kuching to Kuala Lumpur (Malaysian)• E.g. Australian to Malaysia

4. National Tourism• Internal + outbound• E.g. Kuching to Kuala Lumpur (Malaysian)• E.g. Malaysian to China

Definitions of Tourists

1. Visitor Same-day visitors? Tourists?

2. International tourists

3. Excursionists

4. Domestic tourists

Definitions of Tourists

1. Visitor• Same day visitors – visitors who do not spend the

night in a collective or private accommodation in the country visited. E.g. a cruise ship passenger spending for hours in a port or day trippers visiting an attraction

• Tourists – visitors who stay in the country visited for at least one night. E.g. a visitor on a two week vacation

2. International Tourists - Temporary visitors staying at least 24 hours in the

country & purpose of journey can be classified: leisure (recreation, holiday, study, religion, sport) or business (family, mission, meeting)

Definitions of Tourists

3. Excursionists temporary visitors staying less than 24 hours,

including passengers on cruise ships

4. Domestic Tourists referring to tourists who do not go outside their

country of residence

Nature of Tourism

movement of people to and stay in various places of destinations

outside usual environment or normal place of resident and work

temporary periods and short term

visited for purposes other than permanent employment and residence

Nature of Tourism

1. Travelthe action and activities of people taking trips to a place or places outside their home communities for any purpose except daily commuting to and from work

2. Leisurea combined measure of time and attitude of mind to create periods of time when other obligations are at a minimum – free time

3. Recreationthe action and activities of people engaging in constructive and personally pleasurable use of leisure time

COMPONENT OF TOURISM & TOURISM MANAGEMENT

1. The tourist2. Catalyst, planning, development &

promotion organizations3. Operating sectors (spirit of hospitality)4. Natural resources & environment5. The process, activities & outcomes of

tourism6. Careers in tourism

COMPONENT OF TOURISM & TOURISM MANAGEMENT

1. Tourist

2. Catalyst, planning, development & promotion organization - Public sector and private sector

3. Operating sectors (Spirit Of Hospitality) - Accommodation, tourism services,

transportation, entertainment, food services, adventure &

outdoor recreation, attractive, events, travel trade.

COMPONENT OF TOURISM & TOURISM MANAGEMENT

4. Natural resources and environment - Physiographic, climate, people - Built environment (information, culture, technology,

government, superstructure, infrastructure)5. The processes, activities and outcomes of

tourism - Organization – Philosophy – Research – Policy – Vision

– Strategy – Planning – Development – Marketing – Visitation – Behaviors – Experiences – Impacts –

Monitoring - Evaluation - Stewardship6. Careers in tourism - Lodging, Food n Beverage, Travel & Tourism Industry

Basic Structure of the U.S travel industry

GovernmentsIATA,ATA

other

Suppliers

Any Tour Wholesaler

Retail TravelAgent or OtherRetail Outlet

Public

Airlines & Other

Carriers

Hotels

OtherDestination

Services

A. TOUR OPERATORS

A. TOUR OPERATORS

Put together a tour & all of its components, sells the tour through his/her own company through retail outlets &/or through approved retail travel agenciesOffer vacation packages to the traveling public at prices lower than individual traveler can arrangeBecause wholesalers can buy services

( transportation, hotel rooms, sightseeing services, airport transfers & meals) in large quantities at discounted prices

A. TOUR OPERATORS

Planning, preparing & marketing a vacation tour including making reservations & consolidating transportation & ground services into a tourTour sold to the public through retail outlets (travel agents & airline ticket offices)Provide the retailer & the public with a wide selection of tours to a large number of destinations at varying cost, durations & various seasons

A. TOUR OPERATORS

Supply advance notice & increased assurance of future passenger volumes to suppliersConsolidating the services of airlines & other carriers with the ground services needed into one package, can be sold through travel agents to the consuming public

A. TOUR OPERATORS

ORGANIZATIONS:

1. NTA2. USTOA3. ASTA4. PATA5. CTO6. TIA

A. TOUR OPERATORS

NTA (National Tour Association) Interest in the packaged travel sector Promoting partnering & networking among

members, suppliers & destinations Focuses on development, promotion & increased use

of packaged travel Consumer advocate through code of ethics,

membership requirement & education Provides marketing assistance, educational

programs, governmental representation & communication for membership and produces (NTA Convention and Tour & Travel Exchange)

A. TOUR OPERATORS

USTOA (United States U.S. Tour Operators Association)

Ensure consumer protection & education Inform the travel industry, government agencies &

public about TO activities & objectives Maintain high level of professionalism Members required to represent all information about

tours, maintain high level of professionalism, state clearly all cost & facilities in advertising & promotional materials

B. TRAVEL AGENTS

B. TRAVEL AGENTS

Middleman – a business / person selling the travel industry’s individual parts / combination of the parts to the consumerAgent middleman, acting on behalf of the client, making arrangement with suppliers of travel (airlines, hotels, tour operators) & receiving commission from suppliers / fee from client

B. TRAVEL AGENTS

Agent of the principalLegally appointed agent, representing the principal in a certain geographic areaAs broker (bring buyer & seller together) for the other suppliers (hotels, car rentals, ground operators & tour companies)Expert, knowledgeable in schedules, routing, lodging, currency, prices, regulations, destinations & other aspects Specialist & counselor , save client both time & money

B. TRAVEL AGENTS

The Changing World of the Travel Agent

1. Tangible factor contribute decline2. Internet3. Airlines now attempt to bypass travel agents

B. TRAVEL AGENTS

ORGANIZATIONS

1. ASTA

2. ARTA

3. NACOA

4. ICTA

5. CTC

6. CTA

B. TRAVEL AGENTSASTA (American Society of Travel Agents)1. Promote & encourage travel among people of all nations2. Promote the image & encourage the use of professional TA3. Promote & represent the views & interests of TA to all

levels of government & industry4. Promote professional & ethical conduct in the TA industry5. Serve as an information resource for the industry

worldwide6. Promote consumer protection & safety for the traveling

public7. Conduct educational programs for members on subjects

related to the travel industry8. Encourage environmentally tourism worldwide