Web view · 2017-06-25Tourism is a complex and diverse industry. As a multi-industry phenomenon, it depends on a number of other industries such as accommodation, transport,

Generic Tour Operations

INTRODUCTION TO THE TOURISM INDUSTRY

TIN-110 The tourism industry and role-players

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LEARNING UNIT 1: INTRODUCTION TO THE TOURISM INDUSTRY

Tourism is a complex and diverse industry. As a multi-industry phenomenon, it

depends on a number of other industries such as accommodation, transport,

catering, liquor and communication industries to function and prosper. In order to

render the services required by tourists it demands a wide range of specialized

service providers. Tourism can be described as the total experience that originates

from the interaction between tourists, employers, employees, government systems

and communities in the process of attracting, entertaining, transporting and

accommodating tourists.

There are different types of tourism, for example, cultural tourism, ecotourism,

sports tourism and many more. “Tourism” is associated with people who travel and

make use of accommodation, catering and attractions.

Generic Tour Operations TIN-110 2017-06 © MGTcourses 2017

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TOURISM =TOURISTS + ATTRACTIONS + TRANSPORT + ACTIVITIES + ACCOMMODATION + HOST COMMUNITY + CATERING + GOVERNMENT

The tourism industry includes the supply of products and services to tourists.

Tourism contributes 6% to the economy and is growing at a rate of 2% per year.

The tourism industry includes the following:

Both domestic and international tourism can create employment; it is a relatively

labour intensive industry and it employs a multiplicity of skills from accountants and

hairdressers to tourist guides and trackers. Tourism can provide very good skills

development opportunities for local communities.

In fact, the formal tourism sector provides major opportunities for the informal

sector. Tourists travel to the ‘factory’ to consume the product; they travel to the

destination to enjoy their holiday. Tourism is a ‘final goods’ scenario, all the final

touches have to be provided in South Africa and so the value is captured here. The

value of a taxi ride from the airport, wildlife viewing and restaurant meals all accrue

to the local economy the challenge is to maximize it by reducing leakages and

developing the multiplier effect. Tourist enterprises attract domestic and

international tourists and create opportunities for small entrepreneurs and

economic linkages, for example agriculture, hunting, handicraft production and a

wide range of service industries which tourists are likely to consume in the

destination.

Definition of tourism, travel and trips

Tourism

Some definitions offered by a variety of dictionaries

the practice of touring/travelling, especially for pleasure

the business of attracting, accommodating, and entertaining

tourists


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the business of operating tours

the promotion of tourist travel

The common perception of tourism is that it is limited to a holiday

activity only.

According to the United Nation’s World Tourism Organization

(UNWTG) it is defined as people “travelling to and staying in places

outside their usual environment for not more than one consecutive

year for leisure, business and other purposes’.

World Tourism

Day

27 September

Since 1980, the United Nations World Tourism Organization

(UNWTO) has celebrated World Tourism Day on September 27. This

date was chosen as on that day in 1970, the Statutes of the UNWTO

were adopted. The adoption of these Statutes is considered a

milestone in global tourism.

Destination

A place that people will make a special trip to visit.

The main destination of a trip is the place visited that is central to the

decision to take the trip!

Tourism product

Represents a combination of different aspects (characteristics of the

places visited, modes of transport, types of accommodation, specific

activities at destination, etc.) around a specific center of interest such

as nature tours, life on farms, visits to historical and cultural sites,

visits to a particular city, the practice of specific sports, the beach,

etc. It is used by professionals in the tourism business to market

specific packages or destinations.

It is also possible to speak of specific types of “tourism products”,

such as culinary tourism, eco-tourism, city tourism, sun-and-sand


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tourism, agritourism, health tourism, winter tourism, etc.

Travel and travellers

Travel refers to the activity of travellers. A traveller is someone who

moves between different geographic locations, for any purpose and

any duration.

Trip A trip refers to the travel by a person from the time of departure from

his usual residence until he/she returns: it thus refers to a round trip.

A trip is made up of visits to different places.

Inbound trip

An inbound trip will correspond to the travel between arriving in a

country and leaving.

Outbound domestic

trip

A domestic trip or an outbound trip will correspond to the travel

between leaving the place of residence and returning.

A domestic trip has a main destination in the country of residence of

the traveller, while an outbound trip has a main destination outside

this country.

Long haul trips

Occurs outside of the world region (continent) where the traveller

resides, or beyond a given number of flying hours.

Short haul trips

Occurs within the world region where the traveller resides (within a

continent). Also see regional tourist.

Transit Stopping at a place without any specific purpose other than being en

route to another destination


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Definition of tourism, travel and trips

Tourism

Some definitions offered by a variety of dictionaries

the practice of touring/travelling, especially for pleasure

the business of attracting, accommodating, and entertaining

tourists

the business of operating tours

the promotion of tourist travel

The common perception of tourism is that it is limited to a holiday

activity only.

According to the United Nation’s World Tourism Organization

(UNWTG) it is defined as people “travelling to and staying in places

outside their usual environment for not more than one consecutive

year for leisure, business and other purposes’.

World Tourism

Day

27 September

Since 1980, the United Nations World Tourism Organization

(UNWTO) has celebrated World Tourism Day on September 27. This

date was chosen as on that day in 1970, the Statutes of the UNWTO

were adopted. The adoption of these Statutes is considered a

milestone in global tourism.

Destination

A place that people will make a special trip to visit.

The main destination of a trip is the place visited that is central to the

decision to take the trip!

Tourism Represents a combination of different aspects (characteristics of the


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product places visited, modes of transport, types of accommodation, specific

activities at destination, etc.) around a specific centre of interest such

as nature tours, life on farms, visits to historical and cultural sites,

visits to a particular city, the practice of specific sports, the beach,

etc. It is used by professionals in the tourism business to market

specific packages or destinations.

It is also possible to speak of specific types of “tourism products”,

such as culinary tourism, eco-tourism, city tourism, sun-and-sand

tourism, agritourism, health tourism, winter tourism, etc.

Travel and travellers

Travel refers to the activity of travellers. A traveller is someone who

moves between different geographic locations, for any purpose and

any duration.

Trip A trip refers to the travel by a person from the time of departure from

his usual residence until he/she returns: it thus refers to a round trip.

A trip is made up of visits to different places.

Inbound trip

An inbound trip will correspond to the travel between arriving in a

country and leaving.

Outbound domestic

trip

A domestic trip or an outbound trip will correspond to the travel

between leaving the place of residence and returning.

A domestic trip has a main destination in the country of residence of

the traveller, while an outbound trip has a main destination outside

this country.

Long haul trips

Occurs outside of the world region (continent) where the traveller

resides, or beyond a given number of flying hours.

Short haul trips

Occurs within the world region where the traveller resides (within a

continent). Also see regional tourist.

Transit Stopping at a place without any specific purpose other than being en


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route to another destination

Classification of a tourist The use of terminology referring to tourists or visitors can be very confusing. It is

important to be aware of the differences in order to analyse tourism statistical

reports. “Travellers” are composed of passengers in transits, arrivals into and

departures from South Africa regardless of residency status.

In 1963, the United Nations Conference on Travel and Tourism (Rome) proposed

the following definitions of visitor, tourists and excursionist.

(Also see Figure 1.1 Classification of inbound travellers for clarification)

Visitor A traveller taking a trip to a main destination outside his/her usual

environment, for less than a year, for any main purpose (business,

leisure or other personal purpose) other than to be employed by a

resident entity in the country or place visited. These trips taken by

visitors qualify as tourism trips. Tourism refers to the activity of

visitors.

Tourist Tourists are the visitors staying at least twenty-four hours in the

country/place visited and the purpose of whose journey can be

classified under one of the following headings:

leisure (recreation, holiday, health, study, religion and sports)

business, family, mission, meeting

ExursionistTemporary visitors staying less than twenty-four hours in the

country visited (including travellers on cruise).

They are also referred to as “day visitors”.


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Foreign tourist

Foreign tourist Any person who visits a country other than his/her home.

This could include people from other continents, the same

continent, or from countries in the same region (e.g. SADC) as the

country visited.

Foreign versus International - Anything that belongs to a country

other than one’s own is termed ‘foreign” while anything that

involves more than one country is termed as ‘international’.

(http://www.differencebetween.com/difference-between-foreign-

and-vs-international accessed on 12 July 2016).

Overseas and abroad - As adverbs meaning “out of one’s own

country”

Regional tourist

A foreign tourist coming from a neighbouring country in the same

region as the country they are visiting.

They came for the same reasons classified under ‘Tourist’.

They stay for more than 24 hours using commercial or private

accommodation.

Domestic tourist

South Africans (local people) travelling within their own country.

They travel for the same reasons classified under ‘Tourist’.

Local people who travel from one province or area within a country

to another province or area for vacation, business, educational

reasons etc., staying for more than 24 hours. For example a

friend of yours that travels from Gauteng to visit you in the

Western Cape.

Reasons why people travel This will help you in the development of the right packages to meet the needs and

expectations of the tourists.

The following are all considered as reasons why people travel:

Pro-fessional

or

People travel for business reasons to attend meetings, conferences,

trade fairs and exhibitions; giving lectures, concerts, shows and plays;


http://www.differencebetween.com/difference-between-foreign-and-vs-international

http://www.differencebetween.com/difference-between-foreign-and-vs-international

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business promoting, purchasing, selling or buying goods or services on behalf

of non-resident producers (of the country or place visited).

Figure 1.1 Classification of inbound travellers - Laimer, P. (2010)

Personal reasons

Friends and family (VFR)

VFR travel includes visits to family and friends in other towns

or countries.

Health and medical

Tourists visit places for health reasons that differ from person

to person. It includes, for example, receiving services from

hospitals, clinics, convalescent homes and, more generally,

health and social institutions, visiting thalassotherapy and

health and spa resorts and other specialized places to receive

medical treatments when they are based on medical advice,

including cosmetic surgeries using medical facilities and

services. In spite of what appears to be a very expensive

alternative to us South Africans, the overseas market find our

plastic surgeons, etc. plus the recuperating period at a lodge


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cheaper than their own country’s alternative.

Curiosity People hear of places of the radio or television or read about

them in magazines and then visit such places for example

presidents’ residences.

Sport South Africans love sport and therefore tend to travel the world

to see their sportsmen and women in action. Sporting events

such as the Olympic Games attract visitors/tourists from

countries around the world.

Pleasure One of the strongest motivating factors for tourists is that they

travel for pleasure. They not only travel to enjoy places, but

also the journey; that is why there are so many forms of travel.

Religion Religions, like people differ. Most religions set certain

expectations or requirements. These expectations or

requirements can motivate people to visit specific places like

Jerusalem, Mecca or Polokwane (ZCC gatherings) in South

Africa.

Origin syndrome Many South African are descendants of other nations and wish

to visit their country of origin, for example European

descendants. Many Portuguese people that stay in S Africa

travel to Portugal once or twice a year.

Status Some people visit exotic destinations because other people

have already been there or are on their way to them (keeping

up with the Jones’s). It is usually exotic places like Mauritius or

the Seychelles.

Cultural motivations and

traditions

People travel because they want to experience the culture of

the destination. This can include the following: art, festivals,

handcraft, music/dance, customs/lifestyles, language and

science.


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Climate Certain parts of the world are associated with certain natural

environments like snow in Switzerland and tropical jungles in

Central Africa. These attract tourists who practise activities

(like skiing) for which the environment is ideally suited.

Sights worth seeing

Places like the Fish River Canyon, the Drakensberg and Table

Mountain are large attractions. International attractions include

the Eiffel Tower, Great Wall of China and many more.

Wildlife Animals and their habits are probably the biggest attraction to

South Africa. This refers to the Big Five, birds, whales, sharks

as well as various plant species like fynbos.

Amusement /entertainment

This category includes the following: sport and recreation,

amusement parks theatres, nightlife, catering, gambling and

resorts. Visits to The Lost City, Gold Reef City etc fall into this

category.

Educational School and university groups, both local and from a foreign

country as well as Farmers, teachers etc. coming to learn our

‘procedures’,

Clubs, Associations,

etc.

Round Table for instance invite members from other parts of

the world and every second year a different country acts as

hosts for the gathering.

Pink Travel This group of people are demanding and expect only the best

– they are willing to pay, but will not settle for second best.

This is the gay market which can be very viable.

Impact of tourism

The impact of tourism can be divided into three categories, namely economic,

environmental and socio-cultural. Ensuring that all these impacts are positive is the

focus of Responsible Tourism, the triple-bottom line approach, and is supported by


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the Department of Environmental Affairs and Tourism in the 1996 White Paper on

Tourism as the basis for National Tourism Policy for South Africa.

Economic impact – Tourism impacts on the economy of a country in terms of job

creation, foreign currency and development of infra and super structures, to name

but a few. Tourism thus has economic value. When a tourist visits the country,

they pay for their accommodation, activities and food. This brings money to that

specific area.

Environmental impact – When development takes place in terms of infra and

supra structures it impacts on the fauna and flora as well as the environment in

general. When a new hotel is built they destroy the fauna and flora for the new

construction. This is to the disadvantage of the environment. When a park is being

developed they conserve the fauna and flora of that area. This is to the advantage

of the environment. It is important to analyse the impact of tourism and the

development of tourism products on the environment.

Socio-cultural – Tourist visiting destinations bring with them a new culture which

the people at the destination might not be aware of. The tourists and the local

community influence each other in terms of culture, lifestyle and needs. The

influence can be positive or negative. Planners and marketers need to take these

aspects into consideration to ensure that the culture and lifestyle of the destinations

does not change because of tourism.

Advantages and disadvantages of tourismTourism creates certain advantages and disadvantages. We need to be aware of

the advantages and make sure that we focus on that in the development of the

tourism industry. We also need to be aware of the disadvantages in order to

prevent them.

Advantages Disadvantages


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Creates job opportunities immediately Seasonality

Is labour intensive Economic dependence

Offers entrepreneurial opportunities Over development

Develops infrastructure Unbalanced development

Builds cross-cultural relationships Employment

Builds National pride Importation of services and supplies

Generates foreign currency Property prices

Has a multiplying effect Intensive use of facilities

Stimulates other trades Limiting of development

Is a final product Neglect of property

Broadens education Price increases

Promotes international peace Cultural threat

Breaks down racial and cultural barriers Ecological threat

Reinforces preservation of heritage and

traditions

Enhances an appreciation of cultural

traditions


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LEARNING UNIT 2: HISTORIC DEVELOPMENT OF THE TOURISM INDUSTRY

AND TRENDS

The history of the global tourism industry

As seasons changed and animals migrated, people travelled to survive. These

early travellers moved on foot, they were limited to quite small geographical areas.

In this time, travel may have remained a localized experience, but people by

nature are interested. Travelers climbing a mountain and crossing rivers to satisfy

their own sense of adventure and curiosity as they sought a glimpse of the

unknown Phoenicians, early Chinese, and others travelled for trade and military

control as civilizations became established and spread geographically, travel

become a necessity.

The Empire Era

Started from the time of the Egyptians to the Greek and finally came

to an end with the fall of the Roman empire. During this time, people

began traveling in large numbers for governmental, commercial,

educational and religious purpose. As centres of governmental

activities, the city-states become attractions in themselves. The

Greeks were the first who shaped the modern-day travel.

Pleasure travel was popular. The Romans included a large group of

middle class who had money and time to travel. They built rest

houses, excellent roads, and transportation and communication

systems. Factors that influence people to travel during the Empire

Era:

affluent population with time and money to travel

safe and easy travel

widely accepted currencies

widely used languages

legal system which protects personal safety

The Middle Travel almost disappeared during the Middle Ages where travel


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Ages (5th to 14th centuries)

became dangerous and sporadic. The *feudal system that

eventually replaced Roman rule resulted in many different

autonomous domains.

Feudal system A peasant or worker known as a vassal received a piece of land in

return for serving a lord or king, especially during times of war.

Vassals were expected to perform various duties in exchange for

their own fields, or areas of land. Adapted from

https://www.vocabulary.com/dictionary/feudal%20system accessed

on 11 July 2016.

During the Middle Ages, there was a breakdown in a previously

organised and controlled society. This resulted in the fragmentation

of transportation systems, currencies and languages making travel

a difficult and sometimes dangerous experience. Crusades to

retake the Holy land took place during this time. Merchants, such as

Marco Polo who travelled to territories well beyond that of the

Crusaders, intensified the interest in travel and trade from the 13th

century onwards.

Factors that influenced travel during the Middle Ages:

transportation and safety declined

less acceptance of currencies and less knowledge of common

languages.

The Renaiss-ance Era

(14th – 16th centuries)

The rebirth in travel emerged slowly during the Renaissance Era.

The Merchants began to venture farther from their villages as the

church and the kings and queen brought larger geographical areas

under their control. Trade routes slowly began to reopen as

commercial activities grew and the merchants ventured into new

territories. Increased interest in travel for commerce and pleasure. A

desire to learn and experience increased, and led to the Grand Tour

Era.

The Grand Tour Era

The trend of luxurious travel started by wealthy English. Developed

as a status symbol and spread throughout Europe. The goal was to


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(1613 to 1785 A.D.)

experience the “civilized world” and study the arts and sciences.

These travels often lasted for several years.

Industrial Revolution (started in

1750s)

Economic growth and technological advances led to more efficient

forms of transportation, the integration of markets across

geographic and international boundaries, and higher incomes.

Travel now became important as a business, and leisure activity.

Tourism suppliers develop to assist with the growing need of

travellers. Extended travellers to gain cultural experiences

decreased as fewer people could partake in this time-consuming

practice.

The Mobility

Era (1800-1944)

During this era, there were growing economic prosperity and is

characterised by increased travel to new familiar locations, both

near and far. Thomas Cook developed tour packages for mass

travel. In 1841, Thomas Cook organised the first tour for a group of

570 to attend a temperance rally (teetotalism) in Leicester, England.

The trip was complete with a picnic lunch and brass band. The

immediate success of the first venture and the demand for more

assistance in making travel arrangements led Cook into the full-time

business provided travel services. In 1872, he organised ‘the round

the world trip.’

Factors that influenced travel during the Mobility Era:

the invention of automobile and airplane expanded freedom to

travel

increase in systems, modes, and speeds of travel (roads,

railroads, steamships).

The Modern

Era (1945 to present)

Leisure travel

Mass travel

An industrialist, George Westinghouse, introduced paid

vacations in the early 1900’s. This made leisure travel possible

for working and middle classes. Millions of people were

introduced to international travel during World War II as they

were posted in new, different and even exotic destinations as

part of their military assignments. Back home they shared their

experiences.


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Factors that influenced travel during the Modern Era:

post-war prosperity made mass ownerships of automobiles

possible

introduction of jet travel shortened travel time

time, money, safety and interest in travel led to unparalleled

growth of tourism

Other milestones

The International Air Transport Association (IATA) was

established in 1945. It is a trade association of the world’s

airlines. IATA supports airline activity and helps formulate

industry policy and standards.

International Union of Official Travel organisations (IUOTO) was

established in 1947. This organisation represented over 100

National tourist offices of various countries as full members and

88 National & International members as associates. IUOTO was

only organisation which grouped together the

Governmental/private tourist organizations all over the world.

http://codis4u.wikifoundry.com/page/IUOTO+

(International+Union+of+Official+Travel+Organisation).

Diners Club introduced the first credit card in 1950. This enabled

travellers to make purchases anywhere in the world without the

risk of having to carry cash.

The United Nations World Tourism Organization (UNWTO) was

established in 1957. Responsible for the promotion of

responsible, sustainable and universally accessible tourism. It

encourages the implementation of the Global Code of Ethics for

Tourism.

Boeing 707 (generally pronounced as the “seven oh seven”) was

introduced in 1958 leading the Jet Age.

In 1966 the United Federation of Travel Agent’s Associations

(UFTAA) was established.


http://codis4u.wikifoundry.com/page/IUOTO+(International+Union+of+Official+Travel+Organisation)

http://codis4u.wikifoundry.com/page/IUOTO+(International+Union+of+Official+Travel+Organisation)

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Tourism statistics

Resources for local tourism statisticsThe following documents provide official statistics on tourism and can be

downloaded from www.statssa.gov.za

Domestic tourism survey (annual)

Tourism and Migration (monthly)

Tourism (annually)

TAKE NOTE OF THE TERMINOLOGY:

FOREIGN ARRIVALS = VISITORS and NON-VISITORS

VISITORS = SAME DAY and OVERNIGHT VISITORS OR TOURISTS

Example According to the 2013 Tourism (Annual Report)

A total of 9 616 964 tourists came to South Africa in 2013, an increase of 4.7%

from the previous year. The performance was just below the global average of

5%.

MGT 71.6% of these were residents of SADC countries (mostly from Zimbabwe,

Lesotho, Mozambique, Swaziland and Botswana).

The top African tourist arrival by air was from Nigeria, followed by Angola,

Tanzania, Kenya, Democratic Republic of Congo and Ghana.

MGT Most overseas visitors came from the United Kingdom, followed by the

United States of America and Germany. Other important source markets

included China, France, Australia, the Netherlands, India, Brazil, Canada and

China.

The primary purpose of visits to South Africa was leisure (57.9%), followed by

business (30.1%).

Resources for global tourism statisticsUNWTO - World Tourism Organization http://www.e-unwto.org/

The latest and most up-to-date tourism statistics for all the countries and regions

around the world. Data on inbound, domestic and outbound tourism is available, as

well as on tourism industries, employment and complementary indicators. All

statistical tables available are displayed and can be accessed individually.


http://www.e-unwto.org/

http://www.statssa.gov.za/publications/statsdownload.asp?PPN=P0351&SCH=4744

http://www.statssa.gov.za/publications/statsdownload.asp?PPN=P0352.1&SCH=4702

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Documents:

UNWTO World Tourism Barometer offer short term results

STATISTA - The Statistics Portal http://www.statista.com/topics/962/global-

tourism/

Current trends in the global and local tourism industry

As a worldwide export

category tourism ranks

third after fuels and chemicals.

In many developing countries, it ranks first.

International travel and

most visited regions

A record 1.184 million (1.2 billion) tourists travelled abroad in

2015, a 4.4% increase over the previous year.

The United States, China, Spain and France remain the

world’s top tourism destinations.

UNWTO World Tourism Barometer 2015


http://www.statista.com/topics/962/global-tourism/

http://www.statista.com/topics/962/global-tourism/

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Tourism source marketsTourism source market

Most tourists are from China, the United States and the United

Kingdom because of their strong currencies and economies.

UNWTO World Tourism Barometer 2015

Shopping safaris

Almost a third of Chinese tourist abroad spend more on

shopping when travelling than on anything else.

International travellers on vacation want to shop at stores

featuring locally made goods

Euromonitor International; China Outbound Tourism Research

Institute; 2015 Resonance Report: Portrait of the U.S.

International Leisure Traveller.

Internet Internet access is the most important hotel amenity for both

leisure and business travellers.

Mobile internet affects not only the way travel is distributed

and sold, but how we consume and experience the

destination.

PwC Global Entertainment & Media Outlook: 2013-2017.

Millennial travellers

1.8 billion out of 7 billion people worldwide belong to the

Millennial generation (age 18-34; born between 1980’s -

2000’s).

‘Experiencing everyday life in another country’ and ‘increasing

their knowledge’ are top travel motivations for Millennial


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travellers.

WYSE Travel Confederation Millennial Traveller Report; 2015

Resonance Report: Portrait of the Millennial Traveller; U.S.

Census.

Social media and

marketing

Travel reviews have a significant influence on travel decisions

of Millennials.

More than 50% of U.S. Millennial travellers post pictures,

comments and/or updates on Facebook, Twitter or other social

media networks hourly or daily while on vacation.

Free Wi-Fi throughout city centres and tourist corridors will be

key to enhancing visitor experience while leveraging potential

of social media as a marketing channel.

SERIOUSLY SOCIAL 14 WYSE Travel Confederation

Millennial Traveller Report 15 2015 Resonance Report:

Portrait of the U.S. Millennial Traveller.

BleisureMixing

business with pleasure

94% of younger travellers are ‘more than’ or ‘equally’ likely to

take a bleisure trip in the next five years – significantly higher

than the worldwide average

Bridgestreet Global Hospitality Bleisure Report 2014; 2015

Resonance Report: Portrait of the U.S. Millennial Traveller.

Older travellers

In the U.S., 66% of Senior travellers define retirement as a

“time to travel and explore new places.”

Retirees are an attractive market in non-peak seasons – most

likely to take longer vacations.

Accessibility is key as a third of the market has some form of

physical disability. United Nations, Department of Economic

and Social Affairs, World Population Prospects: 2012

Revision, June 2013; 2015 Resonance Report: Portrait of the

U.S. Senior Traveller; World Health Organization.

Accessible adventure

The Adventure Travel Trade Association (ATTA) defines

adventure tourism as a trip that includes at least two of the

following three elements: physical activity, natural


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environment, and cultural immersion.

71% of U.S. Millennials want “to participate in adventure

activities that take me out of my comfort zone when on

vacation.

25% of U.S. international travellers are ‘Active Adventurers’.

Engaging with nature is one of the most popular vacation

activities for U.S. Seniors (73%).

Chinese and South Asian travellers are more likely to ‘sit back

and enjoy’ rather than immerse themselves in outdoor

activities.

Adventure Travel Trade Association; 2015 Resonance Report:

Portrait of the U.S. Millennial Traveller; 2015 Resonance

Report: Portrait of the U.S. International Leisure Traveller.

Foreign demand in

lifestyle cities

Shift in vacation home ownership from sun/resort destinations

to top global cities.

Lesbian, gay, bisexual, and transgender

(LGTB) spending.

Global LGBT spending on travel estimated to be more than

USD $200 billion per year.

17 countries have legalized same-sex marriage and two,

Mexico and the U.S., allow it in some jurisdictions.

Russia anti-gay law passed in advance of Sochi Olympics

spawned global protests, negative publicity and state

department travel warnings.

Intangible culture

Traditional cultural tourism involves built heritage (architecture,

monuments, etc.), but there is growing interest in ‘intangible

heritage’ – popular culture, traditions and storytelling.

Higher levels of interest in active/creative cultural participation

rather than passive observation.

Cities with a ‘creative class’ population and culture attract

travellers from developed markets while built heritage

continues to resonate with emerging markets.

Greg Richards, 2014 43, 44 2015 Resonance Report:


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Portrait of the U.S. International Leisure Traveller.

Other trends within the industry Travellers prefer to visit less crowded destinations and seek special-interest

activities.

Niche markets, such as ecotourism, are developing and there is a trend to move

away from mass tourism.

More and more travellers tend to make their own travel arrangements online

before arriving at a destination, thus bypassing the tour operator.

Factors influencing growth South Africa is a tourist paradise and is often referred to as “a world in one

country”. This is due to its amazing diversity of wildlife, scenic beauty, cultures and

endless opportunities to explore the outdoors through sport and adventure

activities. Furthermore, we have friendly people and a pleasant climate. Other

reasons include affordability, world-class facilities and great weather!

(adapted from http://www.southafrica.net viewed on 23 October 2010).

Additional positive factors

Exchange rate - the weak rand makes it cheaper for tourists from other countries.

Gay-marriages legalisation – promotes LGBT tourism.

The main negative factors

Although South Africa has a lot to offer the tourist, the following are some of the

factors that could have a negative effect on the industry:

Poor service


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Insufficiently trained and incompetent tourist guides.

Low standard of service delivery at hotels, restaurants, sites and attractions.

Tour operators (“fly by night”) who are only interested in money.

Crime

Negative reporting in the media will influence decisions.

Legislation

The legislation pertaining to travellers with children had a negative impact and

was adjusted to accommodate.


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LEARNING UNIT 3: ROLE-PLAYERS AND ORGANISATIONS

Sectors involved in services delivery

The major sectors involved in the supply of services with the support of other

industries (supply of customized hotel or resort towels, catering for in-flight meals,

entertainment on board, etc.

Except for international airfare, most segments of the tourism value change

comprised of a variety of operational businesses and structures including large

corporations, medium, small and microbusiness.

Requires coordination and marketing to reach tourists based in various regions of

the world.

Represented by the government sector, Department of Tourism, regional,

provincial or local government tourism offices.

Formulates tourism policies, sets the standards, regulates the industry,

provides guidelines, etc.

Coordination of services.

These are Companies that contract and purchase separate travel components

and assembles them into one package.

Meaning these companies are the ones who put together all the components of

a tour package – they contract the accommodation, transportation and site

operators.

It appeared so, but it is the tour operator that is actually “on the floor”, she has

the bunch of tour guides, the transportation contacts, the ones that were

actually on the road and knows how to get around.

Plays the most important role and includes air, water or land transportation

All entities that provide accommodation and lodging, from the most

sophisticated five-star hotels to the simplest bed and breakfasts or even

homestays.

Companies which serve the “attraction and activities” sector are of course part


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of the chain. Examples – theme parks, shopping malls, night clubs,

restaurants, museums, cultural villages, fast food centres, bars, experiences,

events, activity shops and clubs, craft stores, practically anything that offers

attractions and provide entertainment to the travellers.

The tourism industry consists of the following sectors

Travel Organisers Sector Tour operators inbound and outbound

Incentive travel organisers

Retail Travel Agents

Conference organisers

Tour wholesalers and tour brokers

Commercial Sector Informal business services

Curios and souvenir shops

Restaurants and shopping malls

Arts and craft manufacturers

Entertainment centres

Attractions Sector Theme parks

Museums

National parks

Wildlife parks

Nature parks

Historic and heritage sites

Cultural destinations

Sport events national or international

Accommodation Sector


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Hotels

Bed & Breakfast

Guesthouses

Apartments/villas

Time-share

Exhibitions and conference centres

Outdoors like camping and sleeping in a caravan

Transport Sector Airlines

Railways

Shipping/cruises

Bus/Coach operators

Car Rental operators


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Statuary and industry organisations

There are several different statutory and industry organizations that exist in the

tourism industry and you need to have a grasp on who they are and their roles and

functions within the industry. These organizations can provide you with valuable

information and they regulate the industry. This refers to various organizations

including the government, education and industry associations.

Role of the government

In most countries, the national government plays a particularly prominent role in

policy, regulation and promotion of tourism.

The typical role of socialist governments (Communist countries) Everyone in the tourism industry is a government employee.

The government controls all aspects of inbound tourism - research, marketing,

and operations.

Tourist guides are prescribed and restricted in their commentary and

interpretation.

No competition.

In South Africa, there are numerous National acts and regulations that impact on

the tourism industry and guiding.

It covers aspects such as

The provision of transport, accommodation and services

Health and safety

Labour / employment issues

Conservation and protection of heritage

Rights of the tourist /guide


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Tourism legislation and regulation also exist on provincial level, regulating tourism

in each province. The above and more regulations will be discussed in Module

LEG-110 Tourism and guiding legislation.

Tourism Act of 2014

To provide for the development and promotion of sustainable tourism for the benefit

of the Republic, its residents and its visitors; to provide for the continued existence

of the South African Tourism board; to provide for the establishment of the Tourism

Grading Council; to regulate the tourist guide profession; to repeal certain laws; and

to provide for matters connected therewith (Government Gazette, 7 April 2014).

In layman’s terms, it means that it makes provision for the promotion of tourism to

and in the Republic. It provides regulations for the enhancement and maintenance

of the standards of facilities and services utilised by tourists; and co-ordinates the

activities of those who are active in the tourism sector.

Direct providerThere are many government-owned attractions, accommodations, publications,

and services, such as visitor information services and national park facilities.

Support servicesCreating tourism jobs.

Providing funding.

Providing legislation that is conducive to the industry.

Reviewing existing legislation.


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Tourism developmentIn most countries, the national government plays a particularly prominent role in

policy, regulation and promotion of tourism.

The National Department of Tourism (NDT) is mandated to create conditions

for the sustainable growth and development of tourism in South Africa.

Local economic development (LED) was introduced in South Africa after 1994

when the government realised that it was important to transfer economic

functions to local municipalities.

Other statuary organisations

Department of Education (DoE)

They ensure access to lifelong education and training opportunities in the

tourism industry.

Department of Labour (DoL)

Reduces unemployment, poverty and inequality in the tourism industry

through policies and programmes.

National Department of Transport (NDoT)

The objectives that they aim to achieve in providing a policy framework,

regulation and implementation models are:

Competitive transport costs;

Safety and security improvements;

Reduce infrastructure backlogs;

Improve access; and

Reduce time in transit.


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South African Revenue Services (SARS)

Involved in the training and development of the travel, tourism and

hospitality industries by providing learning material. Organizing courses and

development of operations skills in the SMME sector.

South African Qualifications Authority (SAQA)

Ensure the quality of qualifications.

Culture, Arts, Tourism, Hospitality + Sports Sector Education Training Authority (Cathsseta)

A SETA’s main function is to contribute to the raising of skills – to

bring skills to the employed, or those wanting to be employed, in their sector.

Cathsseta ensures that people learn skills that are needed by employers and

communities in the tourism industry, and that training is according to the agreed

standards.

South African TourismResponsible for marketing South Africa, provides information, and

conducts research.

Provincial Tourism Authority

Responsible for the development and marketing of the industry on a

provincial level and oversee the registration of tourist guides. There are one for

each province.


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The Tourism Business Council of South Africa (TBCSA)

This is a non-profit, member driven organisation serving the needs of its members

and focusing on the growth and the sustainability of the travel and tourism sector

in South Africa. The TBCSA was established in February 1996. It brings industry

stakeholders together to face and manage issues affecting the industry. The

TBCSA does not replace the trade associations. Trade associations, representing

their members’ interests are members of the TBCSA.

Tourism Grading Council of South Africa (TGCSA)

Established in the year 2000. Operates as a business unit of

South African Tourism, and is the only recognised and globally credible quality

assurance body for tourism products in South Africa. Hotels, B&B’s, guest

houses, exhibitions and meeting venues are graded annually according to a ‘star’

system.

Regional Tourism Organisation of Southern Africa (RETOSA)

It is a Southern African Development Community (SADC) institution responsible

for tourism growth and development. In part, the aims of RETOSA are to increase

tourist arrivals to the region through sustainable development initiatives, improved

regional competitiveness, and effective destination marketing.

RETOSA Member States are Angola, Botswana, D R Congo, Lesotho,

Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa,

Swaziland, Tanzania, Zambia and Zimbabwe. The organisation works together

with Member States’ Tourism Ministries, Tourism Boards and private sector


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partners.

Airports Company South Africa

All South Arica’s airports used to be owned and operated by the state

until 1993 when nine airports were reassigned to ACSA. The state was initially the

only shareholder, but the first shares were transferred in 1998 when 20% of the

shares were bought by Aeroporti di Roma which was sold again in 2005 at double

the original amount paid.

The following international airports are operated by ACSA:

OR Tambo International Airport

Lanseria International Airport

Cape Town International Airport

Durban International Airport

Pilanesberg International Airport

The following local airports are operated by ACSA:

Bloemfontein Airport

East London Airport

George Airport

Kimberley Airport

Port Elizabeth Airport

Upington Airport


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Associations / organisations that impact on the tourism Industry

The wholesale industry

It is advisable for tour operators to join a trade association. The benefits include

marketing assistance, access to information on new trends in the market and liaison

with authorities. Trade associations have set codes of conduct that govern the

relationship between their members and the consumers. An application and annual

membership fee is usually payable.

Association of South African Travel Agents

ASATA was formed in 1956 to promote professional service

with security for members and clients. ASATA’s emphasis is

on free trade without violating rules and regulations according to the constitution and

code of conduct. ASATA has a membership of about 750 with the majority being

retail travel agents, wholesale tour operators, inbound tour operators and tourism

associations. ASATA is the only national affiliate member of the universal federation

of travel agent’s associations (UFTAA) seated in Geneva.

While membership is open to all those organizations whose business includes the

provision of travel and tourism services, there are basically four categories of

membership, these include:

Retail travel agents

Tour operators, involving two groups:

- wholesale tour operators

- general sales agents

Incoming tour operator members

Associate members

http://www.asata.co.za/

Southern Africa Tourism Services Association


http://www.asata.co.za/

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SATSA is the leading body representing the private sector of the tourism industry.

SATSA represents almost all the major players and principals, including airlines,

coach operators, accommodation establishments, vehicle hire companies, tourism

attractions, conference organizers and related marketing organizations. The

appearance of the SATSA logo is a sign of commitment to service excellence for the

tourist. During the past 31 years, SATSA has established a reputation for integrity

and professionalism with continued support from the growing membership base,

these standards are assured for years to come.

There are four different levels of membership:

National membership is for people who have more than three years’ experience

in the tourism industry and/or who participate in international marketing

Chapter membership is for people with less than three years’ experience in the

industry and no need to participate at international workshops or exhibitions

International/associate membership is aimed at people wishing to keep a close

link with the current tourism trends in South Africa and SATSA members.

Friends of SATSA is a category which was formed in 1966 and is aimed at

people who have a direct or indirect link to tourism.

www.satsa.com

International Air Transport Association

The international air transport association is the world body responsible

for co-ordinating all matters related to air travel for scheduled airlines. Its members

carry the bulk of the world’s international and domestic air traffic under the flags of

more than 80 nations.

Travel agencies and tour operators wishing to sell air tickets of airlines that are

members of IATA and to earn commission for such sales are obliged to become


http://www.satsa.com/

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members of IATA. For an agent to be considered for inclusion as an IATA approved

passenger sales agent, certain requirements have to be met. These relate to:

MGTMGT Minimum staff requirementsMGTMGT Financial requirements and guarantees as determined by IATAMGTMGT Minimum security standards pertaining to the premises and access and exit

doors as well as specific safety requirements for the safekeeping of standard

traffic documents and carrier identification plates.MGTMGT Suitable premisesMGTMGT Requirements relating to the selection of the name of the travel agencyMGTMGT Adherence to ethical business practices. www.iata.org

South African Vehicle Renting And Leasing Association

SAVRALA is the industry body representing the car rental, leasing and

fleet management industries in southern Africa. The car rental section comprises of

20 members who represent the country’s largest international and local car rental

companies. SAVRALA aims to ensure that its members maintain the highest

standards of service, professionalism and ethical trading practices at all times, and

has a strict code of conduct and standards which members are expected to adhere

to. SAVRALA is an industry body that invests significantly in the development of

training programs for staff and independent students who seek career opportunities

in the car rental and tourism industry. SAVRALA believes that this investment will

reap long-term benefits for the tourism industry. http://SAVRALA.co.za

The Federated Hospitality Association Of South Africa

Promote and enhance the development of an open, equitable, stable

and sustainable South African hospitality industry. They protect the

interests of all stakeholders in the industry and serve as a watchdog of

legislation. http://www.fedhasa.co.za


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Southern African Bus Operators Association

SABOA has become known and respected as the voice of the bus industry and

represents its members at national and provincial level with government, fulfils a

watchdog function regarding policy and legislation, facilitates training for its SMME

members and negotiates benefits for its members. SABOA was formed in 1980 by

the five leading bus companies operating at the time. Since then, SABOA has gone

through a three-phase transformation that has resulted in its representation today of

about 76 per cent of the public transport bus fleet. http://www.SABOA.co.za

Event Greening Forum

The aim of the event greening forum (EFG) is to

promote and embrace sustainable and ethical

business practices within the events industry in

South Africa, with an initial focus on meetings, incentives, conferences, exhibitions

and events (hereafter called events industry). The EFG was established through the

dedication and support of the industry associations who are recognised as founding

members. http://eventgreening.co.za

Fair Trade Tourism

Fair trade tourism (FTT) is a non-profit organisation that promotes

responsible tourism in southern Africa and beyond.

The aim of FTT is to make tourism more sustainable by ensuring that the people who

contribute their land, resources, labour and knowledge to tourism are the ones who

reap the benefits.


http://eventgreening.co.za/

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This is done by growing awareness about responsible tourism to travellers; assisting

tourism businesses to operate more sustainably; and by facilitating a fair-trade

tourism certification programme across southern Africa.

Tourism businesses that adhere to the FTT standard use the FTT label as a way of

signifying their commitment to fair and responsible tourism. This includes fair wages

and working conditions, fair purchasing and operations, equitable distribution of

benefits and respect for human rights, culture and the environment.

By selecting an FTT-certified business, travellers are not only assured that their

holiday benefits local communities and economies, and that the business is operated

ethically and in a socially and environmentally responsible manner, but they will also

have a more fulfilling holiday experience. http://www.fairtradetourism.org.za/

National Accommodation Association of South Africa

Is a network of mainly smaller accommodation providers around South

Africa – from B&B’s in country towns offering comfortable personal service to

luxurious boutique city lodges with those extra special touches – you're sure to find a

suitable place, and at the same time feel confident that your stay at a NAA-SA

member's establishment will meet your requirements? http://www.naa-sa.co.za/

Guest House Accommodation Of South Africa (GHASA)

GHASA was established in 1992 when a group of establishment owners

got together to promote the guest house industry. In 2000, GHASA

became a private company, known as guest house association of SA (Pty) limited,

also incorporating the self-catering registry of SA which has its own website

(www.selfcateringsouthafrica.com).

Over the past 19 years, GHASA has become well known as experts in quality guest


http://www.selfcateringsouthafrica.com/

http://www.naa-sa.co.za/

http://www.fairtradetourism.org.za/

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house accommodation, offering many benefits, assistance and valued advice to

members, as well as booking opportunities for travellers.

More recently, in order to improve bookings for members, the name was changed to

Guest house accommodation of South Africa (acronym still GHASA).

To that end the website was geared for "real time online availability", making the

process of booking at a participating guest house so much easier for the traveller or

agent. Look out for the online availability button. http://www.GHASA.co.za/

Proudly South African

Proudly South African is an exciting campaign to promote

South African companies, products and services which are helping to create jobs

and economic growth in our country. Companies that meet the standards set by

proudly South African can use the logo to identify themselves, their products and

services. http://www.SABOA.co.za

Southern African Association for the Conference Industry (SAACI)

SAACI is dedicated to maintaining and improving the standards of

efficiency and professionalism for the conference and events industry in southern

Africa. http://www.saaci.co.za/


http://www.saaci.co.za/

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Some role players are directly involved with tourism, such as the tour operator,

tourist guide, airlines, accommodation providers etc.

Other role players are indirectly involved with tourism, such as banks, retail

shops, petrol stations etc.

Whether they are directly or indirectly involved, each of the role players plays

an important part in tourism.

The tour operator

Typically combines tour and travel components to create a package holiday.

Designs and costs itineraries to suit the needs of people, bringing together a

range of related tourism services.

Contracts with hotels, restaurants, attractions, airlines, coach operators and

other transportation companies to deliver services, and tour packages.

They advertise and produce brochures to promote their products, holidays and

itineraries.

Quotes for the work – either direct to an overseas agent or direct to the

potential tourist.

Agrees the cost of services with the client as well as details and terms of

payment. (It is unacceptable to under quote and then later attempt to increase

the agreed price.)

Makes all the necessary bookings and reservations (hotels, transport,

sightseeing etc.).

Operates the tour, i.e. provide the necessary accommodation, transport, tourist

guide(s) etc.

Some tour operators perform only a selection of the above services, e.g.

provide the transport and guide. This is often the case with local operators who

do regular day tours of tourist areas. Such operators obtain many of their

clients from other operators, tour brokers, hotels etc.


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Inbound tour operator

Caters for the needs of the foreign visitor to South Africa.

They market their packages directly or use overseas travel

agents.

They employ a tour leader/manager or tourist guide to oversee

the smooth running of the tour.

They often send a tour leader/manager/conductor/escort along.

Outbound tour

operator

Takes groups of people from South Africa to other countries.

Local tour operator

The local tour operator provides services to domestic clients for

tours within his homeland, city or area. This person takes South

Africans (or independent foreign travellers) to tour through or

experience the country or city.

Other functions of tour operators

A “wheels” operator

Arranging tour itineraries, game safaris and accommodation.

They own their vehicles and carry the necessary road carrier

permits, cross border permits, national parks, passenger and

public liability cover.

One can be a Tour operator without wheels – meaning you

would still package tours for tourists but would sub-contract the

wheels.

In this instance, it is your responsibility to check whether the

service provider is legally compliant – e.g. correct permits and

insurance.

Tour broker Does not operate own vehicles but sub-contracts services.

A Tour Broker acts as a co-ordinator between the client and the

service provider/tour operator by arranging tour itineraries,

game safaris and accommodation.

These operators do not own their own vehicles but hire them

instead from vehicle and bus hire companies.

Part of the tailor-made tours may be a scheduled tour of


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another Tour operator, or it can be a combination of the client’s

ideas and other exiting programmes.

Tour wholesaler

The term tour operator and tour wholesaler are often used

interchangeably to designate agencies that design and pull

together all aspects of a tour, including transportation,

accommodation, meals and activities.

In truth, they have an important distinction.

The tour wholesaler sells tours exclusively to retailers (mainly

travel agents), and delegates most of its operations to a

network of suppliers. Often the corporate names of tour

wholesalers are unknown to consumers.

Tour operators, on the other hand, sell tours to travel agents

and directly to the public. Some tour operators are also called

ground operators/ground handlers or receptive operators and

are more involved in the daily operations of a tour. Tour

operators may also create custom tours, whereby affinity

groups such as clubs, schools and associations have tours

designed specifically for them.

Tour operators increasingly by-pass travel agents and sell

tours directly to individuals and affinity groups.

Travel agent This is a walk-in business where individuals, groups or

companies can find out about destinations and make travel

arrangements.

They reserve seats on tours that are organized by tour

operators.

They can also assist in obtaining visas and issue travel

insurance.

They often act as a liaison between the traveller and a tour.

The travel agent is the person who does the activities


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mentioned above.

Destination management

An incentive organiser or a destination management company

(DMC) is a local service organisation that provides consulting

services, creates events and exemplary management of

logistics based on an in-depth knowledge of the destination

and the needs of the incentive and motivation market.

These are companies who give their employees an incentive to

achieve certain goals within the company and if those are

achieved they will be treated to a local; or overseas vacation.

These groups are usually very big, from 50 –450 plus.

Conference organisers

They will organise an entire conference for a client, the venue,

the equipment, the sponsors, the accommodation, transport to

and from the conference venue, airport transfers, day tours for

delegates and their wives /husbands, pre-and post conference

tours and gala dinners.

Conference organizers can be divided into different sectors.

Some organizers will not be involved with the tourism aspect

but only with the conference.

It is at this point where the Tour operators can be of value.

Do not get involved in the actual arrangements of the

conference if you don’t have the knowledge, it will cost you

money and be an embarrassment.

The tourist guide and tour leader

Tour leader / tour

manager / tour escort

/tour director

Manages a group over a multi-day tour and looks after every

need of the tourist.

They act as liaisons and sometimes serve as translators.

They may not conduct tours.

Role of the tourist guide

They play a key role in the experience of the tourist.

Their main function is to interpret information, sites or


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attractions.

They also need to perform a variety of other tasks that can

include leading, managing the group, communicating, setting a

good example, boosting the morale of the group and

entertaining the visitors.

They need to ensure the safety and security of the group at all

times.

They often need to fulfil administrative and business skills.

The role of the Tourist guide will vary depending on various

factors for example, the expectations of the employer, the

purpose and setting for the tour.

Guides can be employed in the following capacity

Tourist guide Delivers information in an accurate and engaging fashion, as well

as managing a group’s movement.

Site guide Conducts tours of one or several hours at a specific attraction.

Step-on guide

Tour groups coming from other provinces can hire them as

freelance specialists who come aboard coaches to conduct the

tour in a city, region or site.

Hop-on guide

Accompany self-drive tourists in a reserve or heritage site, in a

city or region.

Meet-and-greet guide

Meets individuals or groups arriving at the airport. Help visitors

get their luggage and may even accompany or drive them to

their hotel.

Driver guide Personal or private guide acting as the driver as well.

Specialised guide

Someone whose expertise or skills are highly unique.

Educational guide

Acting for educational tours.

Suppliers Suppliers are companies that provide services to tour operators.

Good relationships with the suppliers will enable the tour operator to


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provide better products as well as reasonably priced packages. The

most common suppliers include hotels, airlines, cruise lines, bus

companies, restaurants and attractions. For each tour, one should

have a list of all suppliers that will service the particular trip, with

addresses, phone numbers and the names of contact persons.

As a tour operator, you will have to collect as much information as

possible on different suppliers. You can develop a supplier filing

system on the computer or a hard copy filing system.


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LEARNING UNIT 4: THE TOURISM PRODUCT AND TOURISM VALUE CHAIN

It is important to

understand the tourism

product. This will

assist develop better

packages for the

tourists.

Main components of the tourism product

Transportation

Accommodation

Restaurants and

food outlets

Attractions

Entertainment

Shopping

The three elements of a tourism product

Physical or tangible

This part of the tourism product can be seen and touched.

The physical part of the product can be used in photos and

people can evaluate the quality of the product when they see it.

The product owners need to look after the physical component

and maintain high quality.

Includes vehicles, buildings, and food.

Service The service is part of the product that is delivered.

It is intangible - cannot be kept for later use, touched or seen

The employees are involved in the delivering of service.

They need to be trained and able to work with people to ensure a

good service.


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The experience

This aspect cannot function without the other two, but it is most

probably the most important of all.

We can also refer to it as the emotion that the tourist experienced

(joy, disappointment, satisfaction and so on) when they used the

product.

The physical, service and experience components will determine

whether the tourist enjoyed his/her holiday.

The tourism products will be discussed in detail in the following modules

TIN-111 Product knowledge: Transport

TIN-112 Product knowledge: Accommodation and restaurants

The whole “value-added-chain” including airlines, hotels, tour operators, travel and

incoming agencies.


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Tourism product and interdependence of role-players

Tourists purchase travel services from a retail travel agent or directly from the

suppliers of travel services. The tour wholesaler’s role is that of consolidating the

services of airlines and other transport with the ground services needed in one

package which can be sold through the travel agents to consumers.

The wholesale travel sector consists of intermediaries (middlemen) that put

together the various services of tourism suppliers into packages. These are then

sold to the public through a sales channel, such as a travel agent.

Adapted from

http://www2.amk.fi/digma.fi/www.amk.fi/opintojaksot/050809/1184649944500/1184

650138999/1184654475398/1184654873172.html accessed on 10 July 2016.


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Distribution in the travel industryDistribution enables products and services to be transferred to the potential

tourists. Through distribution the tourists can become aware of the tourism

products, packages, tour operators, travel agents and many more.

The diagram below shows the general distribution chain on a normal consumable

product – for example food items such as bread, cool-drink, crisps etc.

The distribution of the tourism product is difficult because the product consists of

the physical product, service and experience. You cannot give the tourist a sample

of your tour, after which he/she can decide whether they want to buy the product

or not. They first buy the product and then use the product. Since we cannot give

a sample of the product to the tourist we must make use of other means to make

the tourist aware of the existence of the product. A distribution system currently

exists in the group travel industry but a tour operator can develop his/her own

distribution strategy as well. You need to ensure that the distribution process is

successful.


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Advantages of effective distribution to the tourist / traveller

If the distribution was successful the product/service is easily available for the

tourist/traveller;

An effective distribution system provides better personal service;

The tourist/traveller has a greater choice when faced with a large variety or

products or services.

Advantages of effective distribution to the supplier or producer The product/service of the supplier is widely available through the distribution

channel – increases the market;

Since the product/service is distributed through various channels there is not

such a huge financial risk for the supplier.

The advantages of effective distribution to the retailer/wholesaler The retailer and wholesaler have various options available for the

tourist/traveller. There are various kinds of packages to offer to the tourists;

Can be seen as a one-stop-shop. The tourist knows that he/she can get all the

information needed at the wholesaler.

Distribution This is the first segment.


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Tourist decide where and how they will purchace the

components of their trip.

Involves the tour operators / wholesalers selling it via travel

agents.

Transport International and regional.

Lodging Wide variety in luxury and scale.

Excursions Local activities and natural assests of the destination.

Beach tourism include sailing, surfing, snorkeling

Cultural tourism – guided tour around a city, cultural village

or a wine tour.

Retail like visiting a aritisan centre e.g. pottery or local

market (bazaar)

Excursions are sold by the tour operator and excencuted by

guides taking the role of are experts or activity gurus.

Entering into the value chain

Occurs when developing countries become a destination for

international tourists (for example South Africa).

Entry enables firms or individuals that were not previously

part of the industry to join in. E.g. a township restaurant who

catered for locals now cater for international tourists.

Upgrading Local guides are at the lowest stage of tour operators.


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through the tour operator

segment

They work as independent contractors (free lance).

Excursion operators include a local guide, but the latter also

have the capability to open a business for a particular tourist

activity e.g. bike rental, safari excursions.

Excursion operators ugrade to become local arrangers when

they start selling tours of other excursion operators and

arrange regional travel for the clients. E.g. Gauteng operator

selling a package for Cape Town.


Page 56 of 59


Page 57 of 59

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