Chapter 8

Transportation in
Hospitality and
Tourism Industry
Learning Outcomes:

Upon complete this chapter, students should be able to :

• Understand the role of transportation in the tourism industry
• Recognize milestones in the development of the air industry and explain how
profitability is measured in this sector
• Report on the historic importance of rail travel and challenges to rail operations
today
• Describe water-based transportation segments including cruise travel and
passenger ferries
• Recognize the importance of transportation infrastructure in tourism destinations
• Specify elements of sightseeing transportation, and explain current issues
regarding rental vehicles and taxis
• Identify and relate industry trends and issues including fuel costs, environmental
impacts, and changing weather
 Overview of Transportation in
Hospitality and Tourism Industry

Tourism industry needs transports in other to

take tourists from one place to another
because the aim of the tourist is to reach the
destination.

Different modes of transports which consist of

air, rail, road and water.

There are many reasons to choose modes of

transport; tourists might look at the following -
speed, safety, price and convenience.
 Overview of Transportation in
Hospitality and Tourism Industry

Modern times
• Horse
• Horse carriage
• Motor cars
• Hand driven carriage
• Railways
• Boat
• Buses
• Airways
• Private automobiles
Ancient times
 Overview of Transportation in
Hospitality and Tourism Industry

Land marks in Transport sector

• Great eastern ship in 19th century by Isambard Kingdom Brunel
• First Airplane was invented by wright brothers in 1903
• Grand trunk road was constructed in 1540-45 by Shershah Suri
• First steamship invented in 1775 by JC Pierrier
• Cook transported 570 passengers from Leicester to Loughborough in 1841
• In 1841 Henry wells started as a Shipper for tourists – Wells Fargo
• Mass excursion started by Thomas Cook 1845 tourists travelled to Liverpool by train
• Cook executed a tour to Europe in 1862
• In 1894, first turbine ship called Turbinia was developed by Charies Parsons
• Luxury sea liner Titanic sank on Apr 16, 1912, 1600 died
• First ever single rotor Helicopter was made in 1939 by Igor Sikorsky
 Mode of Travel

Automobiles are still the most widely

used mode of transportation for travel
(representing 90% of all trips taken).

Airlines (a function of cost and distance)

Ships/boats/ferries

Trains

Other (bicycles, motorcycles)

 Air Transportation

It is the fastest mode of transport. But the

cost of its operation is very high and thus it
is suitable for only rich passengers, mails
and light and costly cargo Fastest

According to the International Air Transport

Association (IATA), in 2014, airlines
transported 3.3 billion people across a
network of almost 50,000 routes generating
58 million jobs and $2.4 trillion in business
activity (International Air Transport
Association, 2014a).
History of Air Transportation

In December 1903, Wright In 1909 Wright Brothers -

In 1908 Wright Brothers
Brothers flew the first plane contract - US military, to build
airborne for 1½ hours.
with a person the first military plane.

November 16, 1909 DELAG,

In 1911 first flight across the The 5 oldest airlines that still
was the worlds first airline –
United States, from exist are Netherlands KLM,
government assistance -
Sheepshead Bay (NewYork) to Colombias Avianca, Australias
operated airships by Zeppelin
Long Beach (California), was Qantas, Czech Republics Czech
Corporation -headquarters
made by Calbriath Rodgers. Airlines, Mexicos Mexicana.
were in Frankfurt

KLM first flew in May 1920.

Air Transportation

• Only the rich (and daring) flew in the 1920s

• Air travel increased through the 1970s

• Deregulation (1978) brought more carriers, increased competition and lower

fares

• Air travel is increasing despite the recent problems that carriers have
experienced

• Airlines had a very difficult years but 2006 has been positive

• Airlines have attempted to cut costs by raising fares and partnering with other
carriers

• Airlines have challenges associated with high capital costs, high labor costs,
high fuel costs (25%), maintenance costs and high levels of uncertainty
Types of Air Transportation

Trunk carriers
• The large airlines with long
distances routes were
designed as trunk carriers

Regional carrier
• served large areas with in
a certain part of the
country
Types of Air Transportation

Commuter airlines
• Commuter airlines serve the many smaller
communities that large airlines can’t service
economically, linking small airports with
major hubs

Charter airlines
• A charter flight operates under rules
different from those governing scheduled
flights. Planes may be chartered from airlines
that offer scheduled service or from a
company that operates charters only.
 Air Transportation
Airline companies
• Highly capital intensive
segment of transport
services.
• Labor intensive, with limited
room to lessen those labor
requirements.
• Around 900 airlines operating
11,600 commercial aircrafts.
• Average number of 200 seats
per plane.
• Dominant share of the traffic
is assumed by large
passengers and freight
carriers.
Strategic alliances
• Joint booking systems,
exchange of shares, and a
reorganization of their
services in order to minimize
redundancy.
• Increased market dominance
but also increased
competition between major
markets.
 Air Transportation

• Segment of the atmosphere that is under the jurisdiction of a nation or under

an international agreement for its use.
• Two major components:
• Land-based; take offs and landings.
• Air-based; composed of air corridors.

• Air corridors can superimpose themselves to altitudes up to 22,500 meters.

• Limited to the use of predetermined corridors.
• Air space use.
• Air space exclusively belongs to the country under it.
• Access to the land and air-based components is dependent on agreements
between nations and airline companies.
• Air freedom rights.
 Air Freedom Rights

•The first freedom is the right to fly over a foreign country without landing
•It grants the privilege to fly over the territory of a treaty country without landing
First freedom

•The second freedom allows technical stops without the enplaning or deplaning of passengers or cargo.
Second •It is the right to stop in one country solely for refueling or other maintenance on the way to another country.
freedom

•The third freedom is the right to carry passengers or cargo from ones own country to another.
•The third freedom was the first commercial freedom
Third freedom

•The right to carry passengers or cargo from another country to ones own
•Third and fourth freedom rights are almost always granted simultaneously in bilateral agreements between countries.
Fourth •The right of an airline from one country to land in a different country and board passengers travelling to the airline’s
freedom own country.
 Air Freedom Rights
•This freedom is also sometimes referred to as beyond rights.
•It is the right of an airline from one country to land in a second country, to then pick up passengers and fly on to a third country
where the passengers then deplane.
Fifth •An example would be a flight by American Airlines from the US to England that is going on to France. Traffic could be picked up in
freedom England and taken to France.

•The right to carry traffic from one state through the home country to a third state.
Sixth •Example: traffic from England coming to the US on a US airline and then going on to Canada on the same airline

freedom

•The right to carry traffic from one state to another state without going through the home country.
Seventh •Example would be traffic from England going to Canada on a US airline flight that does not stop in the US on the way

freedom

•This is also called Cabotage and almost no country permits it.

•Airline Cabotage is the carriage of air traffic that originates and terminates within the boundaries of a given country by an air
carrier of another country.
Eighth
•The unofficial eighth freedom is the right to carry passengers or cargo between two or more points in one foreign country
freedom
 Air Freedom Rights
First Second Third

Home
Country B

Country A

Fourth Fifth Sixth

Seventh Eight Ninth

Development of Air
Transportation

Technical improvements:
Jet engine considerably reduced distances, namely Almost every part of the world can be serviced in
because of greater speeds and improved ranges. less than 24 hours.

Linked with income and economic
output growth.
Rising affluence:
International tourism and air
Disposable income available for
transportation are mutually
leisure.
interdependent.

Trade networks established by
multinational corporations.
Globalization:
About 50% of the value of
About 40% of the value of global
American overseas - non-NAFTA -
manufactured exports.
exports.
Main Commercial Passenger
Aircraft, 1935-2006

Aircraft Year of First Speed Maximum Range Seating

Commercial (km/hr) at Full Payload Capacity
Service (km)
Douglas DC-3 1935 346 563 30
Douglas DC-7 1953 555 5,810 52
Boeing 707-100 1958 897 6,820 110
Boeing 727-100 1963 917 5,000 94
Boeing 747-100 1970 907 9,045 385
McDonnell Douglas DC-10 1971 908 7,415 260
Airbus A300 1974 847 3,420 269
Boeing 767-200 1982 954 5,855 216
Boeing 747-400 1989 939 13,444 416
Boeing 777-200ER 1995 905 13,420 305
Airbus A340-500 2003 886 15,800 313
Airbus A380 2006 930 14,800 555
Early Intercontinental Air Routes,
1930s
Eyeries London
Amsterdam
Paris
Botwood Toulouse
Lisbon Marseilles
New York
Azores
Alexandria
Cairo Gaza

Wadi Halfa
Khartoum
Juba

Nairobi
Mbeya

Harare

Johannesburg

Cape Town
Imperial Airways African Route (c1933)
Imperial Airways/Quantas Australian Route (c1934)
Aeropostale (1930)
KLM Amsterdam – Jakarta (1935)
Pan American Transatlantic Route (1939)
Malaysia Air Transportation
Domestic Route
Advantages & Disadvantages of
Air Transportation
Advantages
• It have high speed
• The fastest mode of transport
• Comfortable and quick services
• Offers a steady, relaxed, and
well-organized
• Can be used to carry goods and
people to the areas which are
not accessible by other means of
transport.
Disadvantages of air transport
• Very costly
• Air transport is uncertain and
unreliable as it is controlled
based on the level of weather
conditions. Unfavourable
weather such as fog, snow or
heavy rain etc may cause
cancellation of scheduled flights
and suspension of air service.
• Small carrying capacity
Land transportation : Train

• This type of transportation is considered the oldest one.

• In 19th century the railways were frequently used. Currently in many
countries the railways are used for transportation of loads.
• The reason for this is tourist choice of air or automobile transportation.
• But nowadays application of technology and technological innovation
gave birth to fast trains which compete with air and automobile
transportation modes.
• Serves as one of the major transport services in many countries. –
Includes: India, Japan, China and South Korea.
• To date, this mode of transportation still attracts travellers as they
continue to offer : – Comfort – Reasonable fares and; Less travel time
Riding the Rails: History of
Railroads

• Developed in the 1800’s

• Importance of George Pullman and Fred Harvey in
increasing long-distance rail travel
• Passenger rail service began to decline in 40’s
• Increase in auto ownership and highway systems
• Increase in Airlines
• Railroads did not maintain/improve track and
customer service
 Undersea Railway Tunnels

The Chunnel
– Connects France and Britain
– Stretches around 49.89 kms
– The Longest Tunnel underneath the sea.
– Consists of three tunnels. The first 2 tubes
serve rail traffic. The third is an emergency
escape route.
 Undersea Railway Tunnels

• The Seikan Tunnel

• Located in Japan
• The longest
seabed tunnel in
the world.
• Passes by the
Tsugaru strait to
the Honshu and
Hokkaido islands
 High-Speed Rail

• High-Speed Rail TGV

(Train à Grande
Vitesse)
• A French high-speed
train
• TGV holds the world
record hitting a top
speed of 574.8km/hr.
• However, its
operational speed is
300-320 kmph.
 Land transportation :
Automobile

• Most of the travel in the world takes place in the

automobile.
• The real inventor of the automobile was Car Benz,
of Mannheim, Germany.
• Brought decline of the train’s popularity in most
developed countries.
• Auto travel is the most inexpensive and convenient
form of travel.
 Land transportation :
Automobile

Automobile Traveling

• Is usually an independent mean of transport where the

traveller decides the route and the length of the trip.
• Cheaper since roads fees are not directly paid and
provided as a public.
• It is the only transportation mode that does not require
transfers, in the sense that the whole journey, from door
to door can be achieved.
• Along major highway corridors, service activities such as
restaurants, gas stations and hotels have agglomerated to
service the traffic, many of which touristic.
• Car transport is the dominant mode in world tourism
(77% of all journeys), notably because of advantages such
as flexibility, price, and independence.
• Tourists will often rent cars to journey within their
destinations, which has triggered an active clustering of
car rental companies adjacent to main transport
terminals (airports, train stations) and touristic venues.
 Land transportation :
Automobile

Coach Traveling

• Uses the same road network as

cars.
• Coaches are well suited for local
mass tourism but can be perceived
as a nuisance if in too large
numbers since they require a large
amount of parking space.
• They can be used for short
duration local tours (hours) but
also can be set for multi-days
journeys where the coach is the
conveyance moving tourists from
one resort to another.
Other Transportation