History and Structure of the Travel and Tourism Sector
|Lo 1. History And Structure Of The Travel And Tourism Sector |3 |
|Lo1.1 Key Historical Developments In The Travel And Tourism Sector |3 |
|1.2 Early Travel |3 |
|1.3 The Egyptians |3 |
|1.4 The Persians |3 |
|1.5 The Greeks |3 |
|1.6 The Romans |4 |
|1.7 Renaissance And Grand Tour (Ad 1763-1773) |4 |
|1.8 Milestone |4 |
|1.9 Earliest Tourism |4 |
|2.0 Social Change In Victorian Society |4 |
|2.1 Steamships |5 |
|2.2 Late 19th Century Developments |5 |
|2.3 Early 20th Century Developments |5 |
|2.4 After World War2 |5 |
|2.5 1960s TO 1980s |5 |
|2.6 1980s TO 1990s |6 |
|2.7 END OF 1990s |6 |
|2.8 2000 Onwards |6 |
|2.9 FATHER OF TOURISM AND TRAVEL |6 |
|Lo1.2 Structure Of The Travel And Tourism Sector |8 |
|Four Major Modes Of Transport In Tourism |8 |
|The Tourist’s Choice Of Transport Mode Is Dependent On Several Factors |8 |
|Advantages Offered By Coach Services To The Older Market Include |9 |
|The Key Activities Of Tour Operating |10 |
|LO2: Influence Of Local And National Government And International agencies On The Travel And Tourism Sector |11 |
|LO2.1 – Analyse The Function Of Government, Government Sponsored Bodies And International Agencies In Travel And |11 |
|Tourism | |
|Government Policy On Tourism |11 |
|Visit Britain (Formerly The British Tourist Authority) |12 |
|Visit Scotland (Formerly Known As The Scottish Tourist Board And Also Incorporating The Former Area Tourist Board |13 |
|Network) | |
|Tourist Information Centres (Tics) |14 |
|Tourist Information Centres Can Be Established For Many Purposes: |14 |
|Local Government Involvement In Tourism |14 |
|LO2.2 Local And National Economic Policy Influences The Success Of The Travel And Tourism Sector |14 |
|LO2.3 The Implication Of Political Change On The Travel And Tourism Sector In Different Countries |15 |
|Lo3. Understand The Effects Of Supply And Demand On The Travel And Tourism Sector |16 |
|LO3.1 Factors Affecting Tourism Demand |16 |
|How Can These Factors Have An Impact? |16 |
|Lo3.2 How Supply Has Changed To Meet The Effects Of Demand |17 |
|Shift Factors Of Demand |17 |
|Important Shift Factors Of Demand Include |17 |
|Supplies That Shift Factors Of Demand Which Are Follows |17 |
|Lo4. Understand The Impacts Of Tourism |18 |
|Lo4.1 Evaluate The Main Positive And Negative Economic, Environmental And Social Impacts Of Tourism |18 |
|Lo4.2 Strategies That Can Be Used To Minimize The Negative Impacts While Maximizing The Positive Impacts |20 |
|Conclusion |21 |
|Bibliography |21 |
LO 1. History and structure of the travel and tourism sector
LO1.1 Key historical developments in the travel and tourism sector
1. History of tourism
2. New grange, pyramids, Stonehenge
4. Grand tour
5. 20th Century (Mass tourism + Package holidays)
6. 21st Century (Tourism today)
7. Structure = public sector
8. Structure = private sector
9. Future of Tourism (Positive + Negative impacts)
1.2 EARLY TRAVEL
* Earlier travel was essentially to seek food or to escape danger.
* Travel was also undertaken for trade.
* Growth of cities along fertile river banks like Nile etc encouraged water travel.
* Ancient empires like the Romans helped shape modern travel.
1.3 THE EGYPTIANS
* At its spoken the travel for business and pleasure flourished.
* Travel to outlining cities was necessary.
* Various amenities were offered to travellers.
* They travelled for pleasure and festivals where held every year.
* People used to travel to attend these festivals.
1.4 THE PERSIANS
* They started travel initially for military use.
* Later facilities earlier used for military were transformed to facilitate travel.
* Roads were built, markers were established to indicate distances.
* Safety of travellers was given importance.
* Models of transport like wagons, donkeys/mules were introduced.
1.5 THE GREEKS
* Greeks were the first who shaped the modern day travel.
* Pleasure travel was popular.
* Travel was advanced by two developments (currency exchange + communication)
* They provided all the amenities required.
1.6 THE ROMANS
* The prosperity of the Roman Empire was reflected in the development of travel.
* The Romans included a large group of middle class who had money and time to travel.
* They built excellent roads, transportation and communication system.
* They built rest houses.
1.7 RENAISSANCE AND GRAND TOUR (AD 1763-1773)
* The rise of Italy as intellectual capital of Europe.
* Grand-tour: a tour to the principal cities and places of interest in Europe, formerly said to be an essential part of the education of the young man of "good birth" and "fortune". Main travellers were diplomats, business people and scholars.
* 4000 BC-invention of money by Sumerians (Babylonia)
* 5th-15th century-dark era of tourism
* AD 1763-1773-renaissance stage of tourism
* 1820-introduction of regular steamboat services
* 1830-first passenger train service begins
* 1841-thomas cook began running a special excursion train from Leicester to Loughborough (England)
* 1867-thomas cook introduced hotel voucher
* 1872-thomas cook first organized "the round the world trip"
* 1873-"circular note" was introduced by Thomas cook
* 1888-1889-the Savoy, Claridges and Carlton hotels were opened in London
1.9 EARLIEST TOURISM
* Greek Romans
* Development of spas (Bath, Leamington spa, Harrogate Rome)
2.0 SOCIAL CHANGE IN VICTORIAN SOCIETY
* Sea bathing
* More importance of the family and going on holiday with family
* Development of "resorts" in Europe
* Desire to escape every day restricted moral environment
* Establishment of "day trips"
* led by growth in worldwide trade
* Establishment of P&O shipping line
* Opening of Suez Canal in 1869 enables routes to India and beyond
2.2 LATE 19TH CENTURY DEVELOPMENTS
* Desire for healthier outdoor life
* Development of bicycle
* Money orders + travellers cheques developed by Amex in USA
* Increased interest in photography as a hobby
* Invention of guidebooks (Baedeker)
2.3 EARLY 20TH CENTURY DEVELOPMENTS
* Ongoing expansion of travel for pleasure
* increased wealth, curiosity and outgoing attitudes
* Increasing ease of movement
* Word war1 led to introduction of passports
* Post ww1 led to large scale migration boosting international travel
* New forms of mass communication (cinema, radio then T.V.)
* increased use of private motor cars for travel
* Decline in rail travel
2.4 AFTER WORLD WAR2
* Advances in aircraft technology
* Surplus aircraft after the war ended
* Commercial jet services started in early 1950s
* Charter air services started in 1950-to Corsica
* Boeing 707 jets introduced in 1968
* Demise of ocean liners by 1957
* By 1960s mass market package tours were launched
* Re-emergence of holidays by car as cars became affordable
* Mid 1960s cruise lines introduced fly cruises
2.5 1960s TO 1980s
* Changing social patterns
* Introduction of special interest holidays
* People provided with annual paid leave
* Rise in popularity of self-catering holidays
* Annual family holidays became a habit
2.6 1980s TO 1990s
* Increasing prosperity and declining inflation
* Availability of money
* Late 1980s civil unrest around the world slowed tourism growth (e.g. Iran, Iraq, Fiji...)
* Crash of New York stock market in 1987 had detrimental effect on world tourism
2.7 END OF 1990s
* By 1990 world spending on tourism 13% of worlds consumer spending
* 1993 the European Community (12 nations) removed border controls resulting in free flow of goods/people
* 1995 Middle East had dramatic increase in tourism
* 1990-2000 international tourism grew at 4.4% per annum despite
2.8 2000 ONWARDS
* 9/11 attacks in USA in 2001 led to dramatic drops in travel
* Personal safety concerns
* Foot + mouth outbreaks
* NZ perceived safer resulting in 6.9% increase in international visitor arrivals
* A return to confidence by 2002
2.9 FATHER OF TOURISM AND TRAVEL
* Thomas cook is the father of tourism
* His first organized trip was Leicester to Loughborough in 1841
* It covered a distance of 22km for 571 members
* He acted as an agent by buying tickets in bulk and selling it to others on a non profit basis
* This gave him an idea to package tours in a profitable manner
* He organized the travel arrangements, accommodation, transport at the destinations and return to the homeland
* He organized the first "inclusive tour" to Paris exhibition in 1855
* "hotel voucher" was introduced by Thomas cook in 1867 and "circular note" in 1873 which made travel easier
* First "round the world tour" in 1872
Lo1.2 structure of the travel and tourism sector
Tourism can be said to involve three stages of activity:
1. Setting up travel and holiday arrangements
2. Getting people to their destination
3. Helping them enjoy themselves once they are there
What is a tourist?
‘Someone who travels to see something different then complains when he find things are not the same!’ (Holloway – The Business of Tourism)
International and domestic tourism can be defined as:
Travel for business or pleasure reasons within the home country, including day visitors.
Travel for business or pleasure reasons, across national boundaries, whether one or more countries are visited.
Forms of international tourism are inbound and outbound tourism.
Inbound: Tourists entering a country from their country of origin.
Outbound: Tourists who leave their country of origin to travel to another country.
There are four major modes of transport in tourism:
The tourist’s choice of transport mode is dependent on several factors:
• Distance and time involved
• Status and comfort
• Choice and competition between services
Advantages offered by coach services to the older market include:
• Competitive prices
• Convenience of door-to-door travel
• No baggage or transfer problems
• Courier assistance
• No problems of language and handling documentation (in foreign tours)
• Convenient local departure points
• Feeling of security at being part of a group
The appeal of the cruise includes:
• All-inclusive nature (easy for the customer)
• High-quality food
• Pleasant ambience
• High levels of security
• Making friends with similar people
• No constraints on baggage
• A way around the fear of flying
• Variety of destinations
• Variety of entertainment and leisure options
• Range of escorted or independent shore excursions to meet client needs
Possible solutions to overcrowding might include:
• Improved ticketing technology (e.g. e-tickets)
• Building new airports
• Building more runways at existing airports
• Bigger aeroplanes
• More flights at night and/or flight scheduling on a 24-hour basis
• Reduce demand (e.g. by raising prices)
Some of these options will impact the environment and may therefore be unpopular. Safety must also be a major consideration.
The key activities of tour operating include:
• Market research – to help decide what products are in demand
• Product development – using research data to determine size of programme, destinations, hotels, travel arrangements, etc.
• contracting – drawing up contracts with the providers
• Brochure production and distribution
• Sales and promotion – including point-of sale material, travel agency parties, Familiarisation tours, etc.
• Reservations – taken by telephone
• Administration – including staff recruitment and training, finance and legal matters
• Operation – operational staff prepare flight manifests, rooming lists, etc.
• Customer Services – handling queries and complaints from the public
The skills and competences required of the tour operator include:
• Negotiation skills
• Organisation skills
• Knowledge of the developments in supply (accommodation, transport, etc.)
• Knowledge and experience of purchasing
• The ability to cost and price tours
• Organisation of brochure design, production, distribution and control
• Sales skills
• Marketing skills
• Product knowledge (including knowledge of specialist areas, e.g. golf packages, etc.)
LO2: Influence of local and national government and international agencies on the travel and tourism sector:
LO2.1 – Analyse the function of government, government sponsored bodies and international agencies in travel and tourism
Governments are involved in tourism for a variety of reasons.
• Tourism has an impact on the economy of a country (it brings in foreign currency, impacts on the balance of payments, increases employment and aids regional development.
• Tourism involves movement across national frontiers – governments have to control and monitor this.
• Tourism is often used to enhance national image – governments are
Keen to ensure that outsiders have a positive perception of their country.
• The tourism product may need protection as well as development through government aid. Many core tourist attractions are public property (landscapes, natural and built heritage).
• Government provides or has an interest in the infrastructure upon which tourism exists – public services, roads, railways, etc., although it should be remembered that very little infrastructure is provided solely for tourism.
• The industry is very diverse and government involvement is necessary to regulate and coordinate activities and provide consumer protection.
• Taxation – many governments use tourism as a source of tax revenue. In the UK we are taxed on accommodation and meals, air travel, car rental and package holidays.
Government policy on tourism
In this country, government has delegated responsibility for tourism to the Statutory Tourist Boards, created under the 1969 Development of Tourism Act.
There are four statutory National Tourist Organisations (NTO) which are as follows
• The British Tourist Authority (BTA)
• The English Tourist Board (ETB)
• The Wales Tourist Board (WTB)
• The Scottish Tourist Board (STB)
Visit Britain (formerly the British Tourist Authority)
The British Tourist Authority (BTA) was established as a result of the Development of Tourism Act of 1969. Now known as Visit Britain, its role is to market Britain to the rest of the world and England to the British. Its aim is to build the value of tourism by creating destination brands and marketing campaigns. Visit Britain also builds partnerships with other organisations that have a stake in British and English tourism.
Visit Scotland (formerly known as the Scottish Tourist Board and also incorporating the former Area Tourist Board network)
Visit Scotland is the National Tourism Organisation for Scotland. Formerly known as the Scottish Tourist Board, in 2003 it adopted the name of its website Visit Scotland.
Visit Scotland was commissioned by the Scottish Executive in March 2004 to deliver an integrated tourism network by April 2005. This single national tourism network will be developed through the integration of Visit Scotland and 14 Area Tourist Boards.
Currently, local authorities provide grants to Area Tourist Boards. These will be replaced by partnership agreements between local authorities and Visit Scotland based on the area tourism partnership plans. This is designed to ensure that local authorities can see what they are getting for their money and also to clarify what they are expected to deliver.
Tourist Information Centres (TICs)
In almost all countries with a tourism industry of any size, you will find Tourist Information Centres. These can take many forms and can offer varying levels of service. Tourist Information Centres were often originally opened by individual tourist destinations seeking to advice Visitors upon arrival of activities, and to give directions.
Tourist Information Centres can be established for many purposes:
• To provide a welcoming reception service for visitors to the area
• To provide information on things to see and do in the area
• To enhance the public’s enjoyment of the area and encourage them to stay longer and spend more
• To encourage passing traffic to stop in the area
• To influence the pattern of visitor movement
• To assist the spread of tourism throughout the region
• To generate income for the local economy.
TICs offer a range of services for visitors including:
• Accommodation booking service
• Transport bookings
• Tickets for events
• Sale of maps, guides, souvenirs etc.
• Bureau de change.
Local government involvement in tourism
In Scotland the local authorities are heavily involved in tourism as part of their economic development role. We have already seen how they are major participants in the tourism network.
They are responsible for development and maintenance of a wide range of facilities and infrastructure which make up an important part of the tourism product, but are also for the use of the local community: theatres, parks, sports centres, museums etc.
In addition, as land and property owners and local planning authorities, Local government is in an ideal position to ensure that local needs are reflected in any tourism initiatives and that local communities obtain the maximum benefit.
LO2.2 Local and National Economic policy influences the success of the travel and tourism sector
The size and importance of tourism in the UK’s overall economy is often underestimated. It’s our third highest export earner behind Chemicals and Financial Services. It generates £90bn of direct business for the economy each year, contributes £115bn to GDP when you include the supply chain and £52bn directly and is one of our biggest employers, with over 200,000 businesses providing 1.36 million jobs or 4.4% of all employment.
Tourism is particularly labour intensive compared to many other sectors of our economy, so the industry is very effective at creating more than its fair share of jobs as it expands. British tourism is expected to employ 1.5 million people directly by 2020 and 2.9 million if indirect employment (mainly amongst suppliers to the industry) is included.
Finally, tourism provides something extra which few other industries can offer: an opportunity to showcase our country’s great heritage and national assets in a way which doesn’t just delight our visitors but also improves our everyday quality of life. It’s not just that a good place to visit is usually a great place to live.
Even though tourism is a large and important sector of our economy already, it has plenty of untapped potential too. It offers one of the fastest and most efficient ways to deliver rapid economic growth.
For example; Welcome To Yorkshire recorded 6.6% increases in tourism spend during 2008, and 10% growth in visitor numbers in 2009 too. In the current economic climate, with growth an essential element of the Government’s strategy to repair the national balance sheet, these performances make the tourism sector a particularly important part of the UK economy.
LO2.3 the implication of political change on the travel and tourism sector in different countries
Directly or indirectly, Tourism is all set to change business propositions in manufacturing as well as services sector. There is no doubt that the tourism activities will boom manifold over the coming years. The increase in global tourism highlights the need for innovative marketers and the marketing strategies.
Changes, particularly the social, political and economic taking place in merging markets of the world and also the anticipated rise in the standard of living of many in the developing world are likely to reinforce the growing demand for foreign tourism in coming years a head.
Demographic changes, social, educational and work patterns, increasing leisure time, rising real incomes and the falling cost of long distance travel are also likely to increase both the desire and the ability of an expanding number of people to explore the far flung tourist destinations known for beautiful beaches, waterfalls, small islands, wildlife, flora and many other attractions.
Political factors consist of the laws, regulations and governmental policies that facilitate or hinder direct marketing (Wilkinson et al, 2007). Political factors influence Tourism Industry of any country in many ways. Political factors can create advantages and opportunities for tourism industry. Conversely they can place obligations and a duty on industry.
The political environment includes critical issues such as management, strategic planning, adapting to restructuring, globalization, the creation of social capital, and sustainability. This also comprises all laws, government agencies, and lobbying groups that pressure or limit individuals or organizations in the society (Kotler & Armstrong 2006, p.85;Kotler & Bowen 2003, p.135). Therefore, Political environment has direct impact on the marketing of the tourism industry.
LO3. Understand the effects of supply and demand on the travel and tourism sector
LO3.1 Factors affecting tourism demand
There are many factors that affect tourism supply and demand, which are as follows;
(e.g. from BIP over exchange rates to perceived risk of loosing the job)
(e.g. the enlargement of the EU, taxation, environment)
• Crisis and threats
(e.g. terrorism, epidemic diseases, earth quakes)
• Demographic Change
(e.g. age structure, migration, educational level)
(e.g. transport, communication, information)
Finally the tourism industry itself influences the demand side of tourism (e.g. standardization of products, information channels, (over) Capacities and price strategies).
How can these factors have an impact?
Holiday demand is driven by needs, motives, and expectations. Its realization depends on the individual economic situation and the freedom to travel.
External factors may have an impact on tourism demand by affecting the ability to travel (freedom, time, money, fitness) and the motivation to do so.
Consumer Behaviour is not a reaction on a single factor but on the whole set of influencing external factors. In addition it is driven by internal factors (e.g. motives, abilities etc.). Thus, the impact of a change in a single external factor is limited.
How supply has changed to meet the effects of demand
Shift Factors of Demand
Shift factors of demand are factors that cause shifts in the demand curve. A change in anything besides a good’s price causes a shift of the entire demand curve.
Supply is the mirror image of demand. Individuals control the factors of production—inputs, or resources, necessary to produce goods. Individuals’ supply of these factors to the market mirrors other individuals’ demand for those factors.
Important shift factors of demand include:
1. Society’s income.
2. The prices of other goods.
Supplies that shift factors of demand which are follows;
Income: We classify normal goods as goods whose demand increases with an increase in income. If the demand for good decreases as income increases, we call this good an inferior good.
Price of Goods: Because people make their buying decisions based on the price of related goods, demand will be affected by the prices of other goods.
When two goods are complements, an increase in the price of one good will reduce the quantity demanded of it and the good whose price remained fixed.
Expectations: Expectations will also affect demand. Expectations can cover a lot. If you expect your income to rise in the future, you’re bound to start spending some of it today. While economists agree these shift factors are important, they believe that no shift factor influences how much is demanded as consistently as does price of the specific item. That’s what makes economists focus first on price as they try to understand the world.
Population: Finally, population will also affect demand. If there is an increase in population, there will be a higher quantity demanded at every price. If population falls, as it did in Newfoundland’s outputs in the mid-1900s, demand falls.
In summary, tendency for prices to rise when the quantity demanded exceeds the quantity supplied and for prices to fall when the quantity supplied exceeds the quantity demanded is a central element to understanding supply and demand. So remember:
When quantity demanded is greater than quantity supplied, prices tend to rise.
When quantity supplied is greater than quantity demanded, prices tend to fall.
LO4. Understand the impacts of tourism
LO4.1 Evaluate the main positive and negative economic, environmental and social impacts of tourism
Socially tourism has a great control on the host societies. Tourism can be both a source of international friendship, peace and understanding and a destroyer and corrupter of indigenous cultures, a source of ecological destruction, an assault of people’s privacy, dignity, and authenticity.
Here are possible positive effects of tourism:
• Developing positive attitudes towards each other
• Learning about each other’s culture and customs
• Reducing negative perceptions and stereotypes
• Developing friendships
• Developing pride, appreciation, understanding, respect, and tolerance for each other’s culture
So, social contacts between tourists and local people may result in mutual appreciation, understanding, tolerance, awareness, learning, family bonding respect, and liking.
On the other side, tourism can increase tension, hostility, and suspicion. Claims of tourism as a vital force for peace are exaggerated. Indeed there is little evidence that tourism is drawing the world together (Robinson 1999). In most all-inclusive package tours more than 80% of travellers’ fees go to the airlines, hotels and other international companies, not to local businessmen and workers.
There are also both negative and positive impacts of tourism on the local ecology. Tourism often grows into mass-tourism. It leads to the over consumption, pollution, and lack of resources.
The impact of tourism on local communities can be both positive and negative, whether it comes to economic, social, or environmental effects. It depends to which extent tourism is developed in a particular region.
If we overcome that limit negative impacts of tourism will follow.
Here is a figure which shows the dynamics between people, resources, and tourism in successful tourism: each makes a positive contribution to the others.
All the three elements in this model are in co-interaction. Local communities use the natural resources but they also protect them. Tourists come to enjoy the nature and get knowledge about it, but they also can pollute and destroy it, or on the other side help to protect it by drawing attention to unique natural resources in the area.
In order to decrease the negative effects on local societies we can check the following points when arranging a tourism activity in a region or taking part in it (Fennell1999, lecture notes):
• Are local people involved in the tourism industry as employees?
• Does the organization cooperate with the local businesses?
• Does it have a respectful attitude to the local culture?
• Is there respect to nature and how is it protected?
• How much economic benefit will the local population get from tourism?
• Are tour operators concerned about ecological hotels, transport, and restaurants?
LO4.2 Strategies that can be used to minimize the negative impacts while maximizing the positive impacts
The impact of tourism can be both positive and negative but we can implement strategies to minimize the negative impacts while maximizing the positive impacts.
Negative impacts can be reduced or avoided by effective use of implementation of, for example the tool of Environmental Assessment.
Several effective ways or measures in order to reduce the negative impacts of tourism are:
1. Diversification of product range
2. Reduce the tourists numbers in some areas
4. Implementation of strict law
5. The need fro management and stewardship
1. Diversification of product range
Diversify their product range by opening up new adventures and to reduce the environmental issue create a tourism hotspot
2. Reduce the tourists’ numbers in some areas
Put limitations in some areas to reduce tourist numbers, the government should also double the entry fees and this can maintain the income from these areas.
Putting and increased focus on eco-tourism so that they can help to preserve the wildlife and the environment and this also help in reducing social conflict between authorities and other groups such as tribal people and farmers
4. Implementation of strict law
The marine environments and its natural resources should be managed more efficiently in order to minimize the environmental effects on coral reefs, mangroves and all other threatened habitants
5. The need for management and stewardship
The pressure from the growth of tourists have increased the need for management everywhere
Effective management only begins after tourism has begun and some damage has already occurred
If we follow the above strategies effectively, we can minimize the negative impacts and on the other side it will obviously maximize positive impacts.
If we see the key historical developments and structure of travel and tourism sector and analyse the function of government and their bodies and international agencies we find the success in travel and tourism if the influence of local and national economic policies are on right approach and positive approach.
1. International Journal of marketing, financial services & management research: Vol. 1 No. 6, June, and ISSN 2277 3622
2. Political environment and its impact on tourism marketing:
3. Government tourism policy 2001.pdf