Unit 1- The Travel and Tourism Industry
The Industry
The Industry
The travel and tourism industry is one of the most important in the world, it is one of the most
remarkable economic and social phenomena of the past century.
The industry has an annual growth of 6.6%, employing 231 million people and generating 10% of
the world’s GDP.
Terms
Long haul destination- flight duration more than 6 hours.
Short haul destination- flight duration less than 6 hours.
Tourist- any person who travels somewhere that is not their usual place of stay for more than a
day but not more than a year.
Tourism- the temporary short term movement of people to destinations outside places where
they usually live and work, and their activities during their stay.
Accommodation- any facility that provides an overnight stay.
Occupancy rate- the proportion of bed places in an establishment occupied for some period of
time.
Duration of stay- time spent from the receiving country’s standpoint.
Tourism receipts- expenditures of international inbound visitors.
The Tourist
A tourist is any person who travels somewhere that is not their usual place of stay for more than
a day but not more than a year.
Tourists can be international or domestic.
● International- people from overseas.
● Domestic- people from your own country.
Categories of Visit
Leisure
People visiting somewhere for pleasure, they are on holiday.
They make use of their time and money.
Business
Travel for business meetings such as sales trips, conferences, trade shows and government
business.
MICE is the growth in business tourism.
MICE- Meetings, Incentives, Conferences and Exhibitions.
Visiting Friends and Relatives (VFR)
People want to reunite from time to time.
It may be for leisure, recreation, holidays, family events…
Includes religious or cultural holidays or festivals.
Length of Stay
Day trippers
Excursions, only there for one day.
Overnight visitors
Only there for one or two nights, usually travelling somewhere close to their home.
Short break
Taking advantage of bank holidays.
Holiday takers
Are on vacation, 7 days to 2 weeks.
MICE
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, Meetings
Events that bring people together for exchanging information.
Incentives
Travel somewhere to increase or reward employee effort.
Conferences
Multi-day events for exchanging information.
Exhibitions
Bringing together people for viewing products or services.
Tourism is the whole mix of businesses and agencies that work together to serve the needs of
people who travel, the industry has various sub-sectors.
Travel Agents
Their main role is to sell holidays, ancillary products and to provide information and to advise
customers.
Commission- the money the agency receives by selling an item.
Travel agencies provide speed and flexibility in travel arrangements.
Multiples- agencies with branches throughout a country.
Miniples- smaller independent agents not part of a national chain.
Travel agencies are intermediaries.
Tour Operators
They combine tour and travel components to create a package holiday for one inclusive price.
The packages are convenient, economical and secure.
Packaging is combining inter-related tourism products and services at a lower price offering a
unique and appealing experience.
They need to do the following:
● Meet the customer’s needs, requests ● Assess and monitor facility and
and expectations. product quality.
● Assemble tourism products and ● Reduce customer risks.
reduce prices. ● Post marketing research.
● Issue and deliver travel ● Promote products or packages.
documentation. ● Handle complaints.
Accommodation Providers
Where tourists stay during their holiday.
Hotel- at least 10 rooms with high standards and dining services.
Motel- at least 10 rooms near a road, usually for car travellers.
Hostel- simple accommodation + dining or cooking facilities.
Guest house- at least 5 rooms + dining services.
Holiday village or camp- limited accommodation services with areas for tents or caravans +
parking sites.
Holiday home- for holiday makers, fully rented with cooking facilities.
Visitor’s apartment
Visitor’s apartment- with food-preparing facilities that is rented out.
Bed and breakfast- private accommodations including breakfast.
Accommodation can also be divided into:
Serviced accommodations
Staff members are available to provide services included in the price
Non-serviced accommodations
Don’t include services in the price.
Occupancy Rate
Occupancy rates are measured for many reasons.
To deal with seasonality, prices change according to seasonality.
Collecting data on how busy the destination is to watch out for overtourism.
Market research, to find out the target audience.
Catering Outlets
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, They are very important in satisfying tourists and in the development and promotion of tourist
facilities.
Some catering facilities fulfil the role of attractions and some cafes or winebars are attractive for
their historical value + menu.
Hospitality provision is important in tourist destinations.
Transport Providers
Improvements in transport stimulate tourism by making destinations accessible. Tourism
depends on access.
Air transport
Airlines- run scheduled flights on a published timetable, they attract businesses and leisure
passengers.
Charter flights- used by package holidays. Operate on routes, to airports without scheduled
service. They cause the traffic in the airports that depend on them. Doesn’t leave until its full.
Sometimes a single group will charter a flight.
Water transport
Includes ferrys and cruises.
They usually help link groups of islands togethers.
Rail transport
Services are scheduled and published.
They are safe, inexpensive and more convenient with no long check-ins and no extra charges for
baggage.
They are popular for independent travellers because they go straight into the city.
Coach transport
Express coach services, private hire services, tour and excursion operations and transfer
services.
Car transport
Can be hired independently or by reservation. It is very popular.
Fly-drive holidays- campervans are increasing in popularity. Even though they’re not cheap they
offer flexibility, independence, transport and accommodation.
Attractions
Attractions are changing and evolving, providing opportunities for relaxation, amusement,
entertainment and education.
Natural attractions- mountains, coastlines, lakes…
Built attractions- theme parks, museums, historic sights, sports facilities… To maximise profits and
generate funding they try to appeal as many visitors as possible.
Entertainment Venues
They are the main motivators for tourist trips and the core of a destination’s tourism product. Eg.
sports stadia, theatres…
Ancillary Tourist Services
Additional travel products and services offered to customers.
They can be a major source of income.
Eg. event tickets, car hire, luggage transport, tour guiding.
Tourist Information and Guiding Services
Tour guiding is accompanying tourists, giving them information and pointing out interests whilst
being responsible for the group.
TICs (tourist information centres) carry leaflets, brochures, guide books…
They are found at points of entry or central locations.
They also provide information on local guides.
Tourist Boards
NTOs (National Tourist Organisations) increase the value of inbound tourism to a particular
country.
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