TITLE : MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

AUTHOR : Lurhen T. Cortes, MBA,CTP

Course Description: This course presents the operation, management and integrative
activities of major stakeholders in the tourism and hospitality. It covers travel motivations
and external influences which are vital factors in creating strategic management,
planning, marketing and aligning tactical solution to a customer- oriented industry. The
topics cover the trends and types of operation of various tourism sectors. It features real-
life situation case studies which will gauge the in-depth understanding about the factors
involve in the micro environment of tourism and hospitality. The course also enumerates
the job opportunities and qualification available in every sector.

Unit I THE PSYCHOLOGY OF TRAVEL

Unit Objectives:
1. Be familiar with theories and approaches to tourist motivations.
2. Identify the range of ideas on travel motivation, including historical and
psychological theories.
3. Be aware of the classifications of travelers according to personality and purpose.
4. Adopt a professional approach to recognize travel constraints and identify
solutions.
Unit Topics:

1. Theories of Tourist Motivation

2. Factors of Motivation
3. Classes of travel motivators and de-motivators
3. Classification of travelers
4. Holiday market variable

Micro level capture the way that single organizations in the industry modify their
structures to take account of contingencies originating in their individual task considering
the external environments which influence the management and operation.
According to Pearce (2005) as cited by Page (2009), the tourist behavior before they
travel is influenced by two factors: motivation and image of the destination. The motivation
of the tourist is influenced by culture, demographics ,social networks, personality, values,
experience and attitudes. On the other hand, the choice of the destination of tourist is
influenced by the image of the destination that includes activities/attractions, setting,
facilities, service, host, other tourists and management.

THEORIES OF TOURIST MOTIVATION

Tourist motivation can be defined “as the global integrating network of biological and
cultural forces which gives value and direction to travel choices, behavior and
experience”. (Pearce, Morrison & Rutledge, 1998) as cited by Allan R. Rhodes Espinoza.
According to Seaton (1997) motivation is a state of arousal of a drive or need which impels
 people to activity in pursuit of goals. Once the goals have been achieved the need
subsides and the individual returns to the equilibrium-but only briefly because new
motives arise as the last one is satisfied.

Travel motivation cannot be understood by concentrating on one of the factors as

mentioned before in the case of needs. It requires a complete knowledge of “the
processes whereby these needs are transformed into motivated behavior and, in
particular, of the way in which people’s expectations give motivated behavior its direction”
(Witt & Wright, 1992).

Motivation according to Needs and Wants

The Maslow motivation theory is one of the best known and most influential theories on
business workplace.
Psychologist Abraham Maslow first conceptualized his famous theory of individual
development and motivation in the 1940’s. He suggested that human beings have a
hierarchy of needs. According to him, all humans act in a way which will address their
basic needs, before moving on to satisfy other, so-called higher level needs.

Self-actualization Needs
(realizing your full potential)

Self-esteem Needs(feeling good

about ourself)

Social Needs(sense of
belongingness,friendship,love)

Safety Needs (feeling safe and

secure)

Physiological Needs(basic needs

such as food,water, shelter and
air)
Fig 1 Maslow’s Hierarchy of Needs

The Maslow motivation theory is typically represented by 5 steps:

 Physiological needs – such as hunger, thirst and sleep
 Safety needs – such as security, protection from danger and freedom from pain.
 Social needs – sometimes also referred to as love needs such as friendship, giving
and receiving love, engaging in social activities and group membership.
 Esteem needs – these include both self-respect and the esteem of others. For
example, the desire for self-confidence and achievement, and recognition and
appreciation.
 Self-actualization – This is about the desire to develop and realize your full potential.
To become everything you can be.

Motivation according to Personality

One of the best known models in the travel and tourism field is one proposed by Stanley
Plog. According to Plog, destinations rise and fall in popularity because they appeal to
specific types of tourists over time, and follow a pattern of growth and decline in
popularity.Plog’s model was published in 1974.In Plog’s psychographic typology, tourists
are classified based on personality traits along a continuum, with Allocentric –the
venturers,psychocentrics-the dependables and midcentic –a combination of both traits.

Allocentrics are individuals who feel that what happens to them is largely under their own
control. They are comfortable making choices that involve high degree of risk and
adventure.

Psychocentrics are tourists who believe that what happens to them is beyond their control
They consider strict safety precautions, less activity and consistent on their choices by
preferring popular things familiar to them.

Midcentrics are those travelers that have a combination of both psychographic and
allocentric traits. tourist may bend to some extent to either direction but without falling
completely into the extreme types.
Fig 2 Theories of Motivation based on Travel Career Ladder
Fig 3 Needs and Motivations at Different Levels

Motivation of Travel

Factors of Motivation

Internal Factors of Motivation

Internal factors integrate a person’s behavior and influence his decisions for travelling.
 Intrinsic Motivation − The intrinsic motivations pertain to assuring one’s
capabilities on different emotional fronts. Intrinsic motivation drives the tourists to
opt for tourism for intangible rewards such as fun, assurance, and other emotional
needs. It is a way of satisfying their psychological needs such as travelling,
performing leisure activities, exploring novelty and capabilities, self-expression
and self-assurance, creativity, competition, need for relaxation, and
belongingness. The other intrinsic factors of motivation are
o Attitudes of Tourist − Knowledge of a person, place, or object + Positive
or negative feelings about the same.
o Tourist’s Perception − By observing, listening, or getting knowledge, a
tourist forms the perception about a place, person, or an object.
o Values or Beliefs − A tourist believes or values a specific mode of conduct
which is acceptable personally or socially.
 o Personality of the Tourist − The nature and physique of a tourist plays an
important role towards motivation in tourism.

External Factors of Motivation

There are external motives in tourism that can influence tourists and pull them towards
a certain motivation and subsequent decision.
 Extrinsic Motivation − Here, a tourist gets motivated by external factors such as
money and the need to feel competent on the scale of expenditure and
performance.
 Place of Origin − The grooming of the tourist depends upon the place of its origin.
For example, for the Indian married women, the tourism might come last in the
list of preferential things they wish to do whereas for American ladies, tourism
would acquire much higher rank.
 Family and Age − The family matters when it comes to the structure and the
income. Today, the families with nuclear structure and double income tend to opt
for long distance, extravagant tourism more than joint families or families with
single earning member who are interested in visiting domestic places. The tourists
also have different preferences of places according to their age. For example,
tourists in the age group of 5 to 45 years might enjoy visiting destination in the
USA such as Disneyland more than the senior citizens.
 Culture or Social Class − Tourists of different cultures prefer different places,
events, and different types of tourism. In addition, if friends and families who have
visited a place earlier spread the first hand information that motivates the others
to visit the place too.
 Market − Ever-changing market variables alter tourism. Changes in value of
currency, political situations, and economic well-being of the country influence the
decisions of a tourist.

Classes of travel motivators:

1. Physical Motivator –push factors involving body and health example: beach
recreation,sports activities and yoga classes in the resort. Which are related to
physical relation, rest, specific medical treatment etc. All these activities are
connected with individuals broadly health and wellbeing. The spas during the
Roman empire was the result of people’s desire to see good health. Many tourists
visit resorts and spas for medical treatment and corrective path. Sports
participation is also popular. There has been increasing participation in a variety
of sporting activities such as skiing, boating, trucking etc.

2. Cultural Motivator- factors which are related to

arts,literature,folklore,dances,paintings and religion. People visits different land
 especially those spaces having important historical and cultural events. Places
holding special art festivals, music festivals attract many travelers.

3. Interpersonal Motivator – factors which involves desire to meet new friends,interact

with different people ,visit friends and relatives.

Ethnic&Family

Every year thousands of American visits European countries. They feel that they
are visiting their home land and it is an ethnic motivation. Visiting ones relatives
and friends and making new peoples also as a personal motivation

Religious
Travel for spiritual reasons like visiting religious places is also a personal
motivation. For Christian a visit to Jerusalem or to Rome and for the Muslims a
visit to Mecca are many auspicious. In India there are many pilgrims centers and
holy places of all major religions of the world where every year large number of
pilgrims from all over the world come.

4. Status and Prestige motivator- factors related to self upliftment and personal
development which would enhance one’s recognition.
Conventions,exhibits,education and business trips are some of the exapmles
included in this group.
Attending concessions and conference related to the profession is very common.
Businessmen make extensive travel connected with their profession missionaries
of different religions are also making travel connected with their profession

Travel Barriers
In choosing a destination, a traveler must overcome a number of obstacles. If the
motivation to travel is strong enough, the obstacles will be overcome but they may still
affect the choice of destination. Time and cost, for example, are the obstacles that
most immediately come to mind. We must plan trips around our vacation time and our
budgets. If both are limited, we may choose a destination close to home. Some of the
major travel barriers include the following:
1. Cost of travel . Travel is dependent on disposable income.An individual
or a family with limited income cannot afford to travel.

2. Lack of time. People who are busy and lacks time to engage in leisure
activities will not be able to travel.

3. Health. People with disability and impairment will need assistance to

travel.Person with poor health condition may be restricted to travel.
 4. Family Stage. The family having young children often do not travel
because of the inconvenience.

5. Lack of interest. There are people who lacks pleasure in traveling.

6. Fear and Safety.The fear and anxiety of traveling due to psychological

and emotional factors limit the persons ability to travel.Weather and bad
publicity about the destinations are also deterrent to travel.

CLASSIFICATION OF TRAVELERS

Classification of traveler according to Phase

A British Consultancy of Futurology,Henley Center has divided the tourists into four
phases namely :Bubble Travelers,Idealized Experience Seekers,Seasoned Travelers
and Complete immersers.

Phase I –Bubble Travelers

Bubble Travelers are travelers who do not have much money as well as knowledge about
the destination.They prefer package tours or arranged travel.They long to obseve
different cultures without being part of it .They travel mostly out of curiosity.
Phase II – Idealized Experience

Seekers refer to confident tourists with the experience of international tours.They are
more flexible,comfortable and prefer offers made for individuals.

Phase III – Seasoned Travelers

They are the travelers who are more affluent than the Idealized Experience seekers.They
are more confident to experience and experiment different places and environments.They
are more adventurous and prefer individualistic tours.

Phase IV – Complete Immersers

These tourists have an intention of immersing completely into foreign cultural heritage
experiences,culinary and language.Their holiday is well structured and well-planned.
Classification of Traveler according to Purpose

The Figure 4 shows that tourists can travel for variety of reasons in addition to recreation
and leisure. Both the person who travels to a nearby city for medical treatment and the
business traveler in a foreign country are tourists. They may take part in tourism activities
during their visit. They will need food and accommodation. They may visit places of
interest or sample local culture. They may even buy mementos and take photos to
remind them of their trip. Any of these activities may be described as tourist behaviour,
though the reasons for the trip may be quite different.

Fig. 4
The following variables divide the market into distinct groups with different needs,
behavior and other characteristics that may need separate approaches when selecting
destinations for leisure travel.

1. Socio-Economic and Demographic Variables. Age plays important role in choosing

a destination. The level of education must also be considered to achieve the
satisfaction base on the level of tourists’ knowledge and understanding. Income
shall indicate the range of disposable income an individual is willing to spend for
leisure. Gender and civil status distinguish the scope of leisure activities to be
made available at a destination. Social class, race, religion is important in choosing
the food to be served, rules to be implemented during the travel and dress codes.
The profession will also be an indicator to travelers’ financial stature.
2. Product-Related Variables. The travelers’ desired length of stay should help
determine a suitable destination. The travelers’ expectation and experience
preference will determine the activities and attractions while in the destination.
Product satisfaction will depend on the traveler’s interest and willingness to
participate and consume tangible and intangible products during the tour.
3. Psychographic Variables. Personality traits and lifestyles should be considered
when searching for suitable destination. Figure below shows a classification
needs, motives and aspirations that are determined by the travelers’ motivators for
travel.

Need Motive Aspirations

Physiological Relaxation Escape from the everyday
work environment,
relaxation, relief from
tension and stress.
Safety Security A sense of well-being,
health, recreation
Belonging Love Family bonding,
companionship, social
interaction, personal and
family ties.
Esteem Achievement Prestige, social
recognition, ego
enhancement, personal
development
Self-actualization Knowledge of self Exploration and evaluation
of self, self-discovery,
satisfaction of inner needs
Learning Knowledge Cultural, education and
interest in other areas
Aesthetics Appreciation of beauty Environment, scenery, arts
and sciences.
Fig IV. Traveler’s Psychographic Variables
 4. Geographic Variables. The travelers’ home country, region of residence (urban,
suburban or rural) and population density, if available, will also help in the selection
of suitable destination. Travelers from urban areas have higher level of expectation
while country folks are less demanding. Tourists from highly industrialized
countries will expect more from tourism facilities of third-world countries.

Activity 1

Find a partner to brainstorm with. With a given scenario, suggest a suitable destination
for the tourists. Present your answer to the class and give corresponding reasons why
your suggestion is ideal.

1. Beatrice and Wilson are newly-wed couple. Both are adventurous and loves
exciting activities. Beatrice 25 years old and Wilson 30 years old, both have stable
jobs in Metro Manila.
2. Anna seeks better opportunity after the resignation. She wants to rejuvenate from
the stressful and busy city life. Being alone and reflect on the things she missed in
her life will give her fresh start to her new plans in life after 5 years being an
accounting officer in the multi-level marketing business.
3. Susan wants to take new challenges and explore. She is trying to elevate her
career to new level and expand her connections in advertising business. This travel
will help her find people who can help her achieve this goal.

Unit Exercises

Questions for review and discussion:

1. Differentiate intrinsic and extrinsic motivation. How do these factors of motivation

contribute in preparing tourist’s profile?

2. Which of the aforementioned theories are helpful in your decision to select a

destination?
3. Personal travel motivators change through time. List the main reasons you would
travel at this point in time. Then think about your future and identify the travel motivators
that will:
a. Decrease in importance as you age
b. Increase in importance as you age
c. Remain important to you throughout your life.

Definition of Terms:

1. Allocentric________________________________________________________
________________________________________________________________
2. Psychocentric_____________________________________________________
________________________________________________________________
3. Psychographic
Variable__________________________________________________________
________________________________________________________________
4. Intrinsic
Motivation________________________________________________________
________________________________________________________________
5. Extrinsic
Motivation________________________________________________________
________________________________________________________________

Research Activity:

Watch a video https://www.youtube.com/watch?v=AcahkhwllNo

Create a summary and a reaction paper about the video.

REFERENCES

Claravall,Bienvenido G.(2013) ,Travel and Tour Operation in the Philippines (3 rd

ed.),Accumicro I.T.Solutions
Cruz,Zenaida L (2005). Principles of Tourism Part II Updated Edition, Rex Bookstore,Inc.
Page,J.S., & Connell, J.(2006).Tourism :A Modern Synthesis(2nd ed.) Thomson
Learning.London
Pearce, P.; Morrison, A.M. and Rutledge, J.L. (1998). Tourism: Bridges across continents.
Sydney: McGraw-Hill, Chapter 2, 'Motivational influences in tourism demand'.

Internet Website

https://getawaytips.azcentral.com/classification-of-travelers-according-to-purpose-
12495569.html
https://ncst.ucdavis.edu/project/evaluation-travel-constraints-and-travel-burdens-us-and-
rural-zero-car-households
https://www.researchgate.net/publication/331315044_Plog%27s_Model_of_Typologies_
of_Tourists
https://www.researchgate.net/figure/General-behavior-leisure-behavior-and-travel-
behavior-theories-explaining-needs-and_fig1_285384220
https://www.researchgate.net/publication/249701181_Understanding_Travel_Constraint
s_Application_and_Extension_of_a_Leisure_Constraints_Model/
http://samquackenbush.weebly.com/uploads/1/4/9/5/14956724/travel_motivators__barri
ers_article__questions.pdf
http://www.seasonaltrip.com/motivation-travel
https://www.slideshare.net/gorismerijn/slides-mastercourse-brown-gerbarg-cip2012
https://www.tutorialspoint.com/tourism_management/tourism_management_motivation_
factors_of_tourists.htm
https://the-happy-manager.com/tips/maslow-motivation-theory/
https://vidasilvestre.org.uy/wp-content/uploads/2012/08/Motivation-of-NAture-
Tourism.pdf
UNIT II Sociology of Tourism

Unit Objectives:

1. Appreciate the social impact that travel experiences make to every

individual, family or group and society as a whole.
2. Become familiar with the concept of the accessible tourism and dark tourism
3. Discover the social influences that affects the tourism an hospitality industry

Unit Topics:

1. Sociology defined
2. Effects of Sociology
3. Negative effects of social tourism
4. Security and Crime Issues
5. Sex Tourism
5. Changing population and travel interest
6. Life Characteristics and Travel
7. Accessible Tourism
8. Group Travel Arrangement
9. Health issues in tourism

Sociology is the study of human social behavior, society, patterns of social relationships,
social interaction, and culture that surrounds everyday life. It is a social science that uses
various methods of empirical investigation and critical analysis: 3–5 to develop a body of
knowledge about social order and social change.
The sociology of tourism is an emergent specialty concerned with the study of touristic
motivations, roles, relationships, and institutions and of their impact on tourists and on
societies and of their impact on tourists and on the societies who received them.
SOCIOLOGY  Is the science of society, social institutions, and social relationships.  Is
the scientific study of human society and its origins, development, organizations, and
institutions. It is a social science which uses various methods of empirical investigation
and critical analysis to develop a body of knowledge about human social activity,
structures, and functions.

The Social Effects of Tourism

Tourism is concerned with the movement and contact between people in different
geographical locations,.In sociological terms,this involves the following:

1. Social relations between people who would not normally meet;

2. The confrontation of different cultures,ethnic groups,lifestyles,language,levels of
properity,and the like;
 3. The behavior of people released from many of the social and economic constraints
of everyday life;and
4. The behavior of the host population which has to reconcile economic and benefits
with the costs of living with strangers.
The degree to which conflict will occur between host and guest depends upon the
similarity in their standards of living,the number of tourists at any time,and the extent to
which the tourists adapt to local norms.

The rapid expansion of the tourism industry has provided many economic benefits and
affected every facet of contemporary societies including employment, government
revenue and cultural manifestations. However, tourism can also be considered a
problematic phenomenon, promoting dependency, underdevelopment and adverse
sociocultural effects, especially for developing countries

EFFECTS ON THE INDIVIDUAL

Someone who travels, particularly to a strange location, finds an environment that is

unfamiliar, not only geographically but also personally, socially, and culturally. Thus the
traveler faces problems for which a solution must be found if the trip is to be fully enjoyable
and rewarding. Travelers must manage their resources of money and time in situations
much different from those at home. They also manage their social interactions and social
relations to obtain shelter, and other needs and possibly to find companionship.
Determining the extent of the cultural distance, they may wish to maintain results in
decisions as to just how unfamiliar the traveler wants his or her environment away from
home base to be. Regardless of the degree of local participation, the individual traveler
must at least superficially study the country to be visited and reach some level of decision
on how these problems in environmental differences. Travel experiences have a profound
effect on the traveler as well as on society, because travel experiences often are among
the most outstanding memories in the traveler's life.
EFFECTS ON THE FAMILY

As a FAMILY is growing and the children are maturing, the trips taken as a family are
highlights of any year. The excitement of preparation and anticipation and the actual travel
experience are memorable occasion of family life. Travels with a measure of adventure
are likely to be the most memorable. Family travel may also be educational. The more
purposeful and educational a trip becomes, the more beneficial it is.

EFFECTS ON SOCIETY

Travel has a significant influence on national understanding and appreciation of other

people. The presence of visitors in a country affects the living patterns of indigenous
peoples. The way visitors conduct themselves and their relationships with citizens of the
host country often has a profound effect on the mode of life and attitudes of local people.
SECURITY AND CRIME

Unfortunately, tourist can be easy prey for criminals. Tourist do not know about
dangerous areas or local situations in which they might be very vulnerable to violent
crimes. They become easy marks for robbers and other offenders because they are
readily identified and are usually not very well equipped to ward off an attack. Crimes
against tourist result in bad publicity and create a negative image in the minds of
prospective visitors. Thus, tour companies tend to avoid destinations that have the
reputation for crimes against tourists.

Prostitution and sex tourism •

The commercial sexual exploitation of children and young women has paralleled the
growth of tourism in many parts of the world. Though tourism is not the cause of sexual
exploitation, it provides easy access to it. Tourism also brings consumerism to many
parts of the world previously denied access to luxury commodities and services. The lure
of this easy money has caused many young people, including children, to trade their
bodies in exchange for T-shirts, personal stereos, bikes and even air tickets out of the
country. In other situations, children are trafficked into the brothels on the margins of the
tourist areas and sold into sex slavery, very rarely earning enough money to escape.

RESENTMENT

Resentment by the local people toward the tourist can be generated by the apparent gap
in economic circumstances, behavioral patterns, appearance and economic effects.
Resentment of visitors is not uncommon in areas where there is conflict of interests
because of tourists.
Host-Visitor Interactions
Tourism causes more interaction between peoples particularly between the tourists or
visitors and the local residents or host. To understand the social impact of tourism on the
area, the characteristics of various types of visitors and the level of interaction with the
hosts should be explained. The interaction between the local residents(host) and the
visitor(tourists)shall be describe based on the type of visitor. The classifications are as
follows:

1.Explorer – Interested in being active participant, easily adjust on the local lifestyles and
does not need tourist accommodation.

2. Elite – This type of tourist can afford to pay for the unusual vacation. The tourist is well-
traveled and usually known as the “jet-set”. This tourist prefers comfortable and pre-
planned arranged tour.

3. Off-beat- This tourist adapts to simple accommodations and services provided for
the unusual destinations.
4. Unusual Tourist- This tourist loves sub-exotic cultural sites, the unusual or primitive
as long as he can quickly and safely return to more familiar place.
5. Incipient Mass Tourist- This type of tourist looks for amenities of Western Societies in
hotels and other travel-related facilities. A combination of leisure and business traveler.
6.Mass Tourists – This tourist belongs to middle class and arrives in a destination with
other tourists.
7. Character Tourist-The character tourist comes “en masse” with others of his kind
creating an extremely high amount of business and receiving a high degree of
standardizataion in services and products.

CHANGING POPULATION AND TRAVEL INTERESTS

People change, group attitudes change, and populations changes. Travel interests also
do change. Some countries grow in travel popularity; others wane. World events tend to
focus public attention on particular countries or regions of the world. There's an old saying
among travel promoters that “mass follows class”. This has been proven beyond a doubt.
Travel-page publicity concerning prominent persons visiting a particular area inevitably
produces a growth of interest in the area and subsequent increases in demand for travel
to such well-publicized areas. The growth of communication systems, particularly network
and cable television, has broadened the scope of people's interests in other lands and
other places. As communication resources grow, awareness and interest also grow.

Rising standards of living, changes in the population age composition, the increasing
levels of educational attainment, better communication, increased social consciousness
of people relating to the welfare and activities of other people throughout the world, and
the psychological shrinking of the world by the jet plane have combined to produce an
interest among nations in all other nations.

1. TRAVEL PATTERNS RELATED TO AGE

With age, the traveler may become more passive. Family recreation patterns are
associated with life stages of the family. The presence of young children tends to
reduce the number of trips taken, whereas married couples with no children are
among the best travel prospects.

2. INCOME
Income is the consumption and savings opportunity gained by an entity within a
specified timeframe, which is generally expressed in monetary terms. Buying power
is another factor for the tourism manager to consider. People must have buying power
to create a market. There is no question that a large and increasing percentage of the
population today has sufficient discretionary income to finance business and pleasure
travel, although families may be limited to inexpensive trips. The frequency of travel
and the magnitude of travel expenditures increase rapidly as income increases. Travel
expenditures historically have been income elastic; consequently, as per capita real
incomes continue to rise. Consumers should spend an increasing proportion of their
incomes on travel. Besides making trips in the future, increasing numbers of
consumers can be expected to choose air travel over other modes of travel. Income
and education are closely correlated.
3. EDUCATION
Another factor deserving attention from tourism managers is education, because it
tends to broaden people's interests and thus stimulate travel. People with college
educations take more pleasure trips than those with high school educations, and those
with high school educations take more trips than do those with grade school
educations. Educators are forecasting continued increases in the average educational
level, which would result in a continued positive impact on pleasure travel.
4. TRAVELAND THE HANDICAPPED
In the United States alone, there are about 50 million physically handicapped people-
more than twice the total population of Australia. This group constitutes an excellent
potential market for travel if the facilities and arrangements are suitable for their use
and enjoyment. Many households reported little difficulty in using accommodations,
because of careful planning before making the trip. The majority of difficulties
encountered seemed to be at recreational facilities. Historically, individuals with
disabilities have been categorized by either their medical conditions or their level of
self-sufficiency. Severe, moderates, or minor are the common disability
classifications. Of the three subgroups, the more severe mobility disability, the more
special attention is needed. The severely disabled are seeking a quiet and peaceful
destination that allows them to be independent and that provides easy access. Travel
suppliers should know that the moderately and severely disabled use only two modes
of transportation: car or van and air. Mobility-disabled consumers are very loyal to
destination hotels, motels and resorts that are sensitive to their needs while not being
patronizing.
NEW TRAVEL PATTERNS

A. TRAVEL CLUBS

These are groups of people, sometimes with a common interest, who have formed
travel organizations for their mutual benefit.

B. LOW-PRICED GROUP TRAVEL

Many tour companies cater to common-interest groups, such as the members of a

religious group or professional or work group. A tour is arranged often at reasonable
cost, and is promoted to the members of the group.

C. PUBLIC CARRIER GROUP RATES AND ARRANGEMENTS

Airlines and other public carriers make special rates available for groups; a common
number is10 or 15 at discounted rates. A free ticket is issued to the groups escort or
leader. Chartering all or part of a public transportation vehicle, aircraft, or ship is also
special effort on the part of the carrier to accommodate other groups.

ACCESSIBLE TOURISM

“Accessibility is a central element of any responsible and sustainable tourism policy. It is

both a human rights imperative and an exceptional business opportunity. Above all we
must come to appreciate that Accessible Tourism does not only benefit persons with
disabilities or special needs; it benefits us all.”

Taleb Rifai, UNWTO Secretary-General

If we analyze the background to the term “Accessible Tourism” we find that there was an
initial conceptual line of thought that approached the integration of persons with
disabilities on the following basis: – The participation of people with disabilities in tourism;
and – The removal of existing barriers in different, environments, services and products
in the tourism industry.

Accessible Tourism is a form of tourism that entails strategically planned collaboration

processes between stakeholders that “enable people with access requirements, including
mobility, vision, hearing and cognitive dimensions of access, to function independently
and with equity and dignity through the delivery of universally designed tourism products,
services and environments.”
This definition adopts a whole-of-life approach to tourism. The benefit of accessibility in
tourism is evident for every person throughout the whole of their lives. This would include
people with permanent and temporary disabilities, people with specific medical
conditions, seniors and families with small children.8

Accessible tourism is the ongoing endeavor to ensure tourist destinations, products

and services are accessible to all people, regardless of their physical
limitations, disabilities or age. It encompasses publicly and privately owned tourist
locations. The term has been defined by Darcy and Dickson (2009, p34) as:
Accessible tourism enables people with access requirements, including mobility, vision,
hearing and cognitive dimensions of access, to function independently and with equity
and dignity through the delivery of universally designed tourism products, services and
environments. This definition is inclusive of all people including those travelling with
children in prams, people with disabilities and seniors.

http://travability.travel/

Activity 2

1. Write a one page essay about the effect of pandemic to the social tourism.
2. Conduct a survey among different classifications of tourist. Ask how many among
them spent vacation with friends, family or alone. Conduct interview about the
experience interacting with local host.

Unit Exercises
Questions for review and discussion:

1. What are the most significant travel pattern that brings development in group
travel?

2. What are the negative effects of social tourism? What are your recommendations
to minimize the negative effects of social tourism?

3. How does income and social status ,education and age affects the socioeconomic
status of the country?
Definition of Terms

1. Sociology________________________________________________________
________________________________________________________________
2. Elite
Tourist___________________________________________________________
________________________________________________________________
3. Off beat
Tourist___________________________________________________________
________________________________________________________________
4. Travel
Clubs____________________________________________________________
________________________________________________________________
5. Accessible
Tourism__________________________________________________________
________________________________________________________________

Research Activity:

Study the preferences of International Tourists who experienced pandemic. How

does the pandemic affects their travel choices. Show 3 pictures and explain it to the
class.

References:

Cruz,Zenaida L .(2019),Microperspective of Tourism and Hospitality,Rex Bookstore

Cruz,Zenaida L.(2005). Principles of Tourism Part II (Updated Edition),Rex Bookstore

www.routledge.com/The-Sociology-of-Tourism-Theoretical-and-Empirical-
Investigations-1st/Apostolopoulos-Leivadi-Yiannakis/p/book/9780415271653
www.britannica.com/topic/sociology
https://en.wikipedia.org/wiki/Accessible_tourism
https://www.slideshare.net/angielynlaquian/sociology-of-tourism-23619173
https://www.unwto.org/accessibility
UNIT 3 THE TOURISM SUPPLY SECTORS

Unit Objectives:

1.
To trace the evolution of the transportation
2.
To discuss the role of transportation in the development of tourism
3.
To recognize the significance of lodging industry and its management
4.
To identify the types of recreation and make an overview of the challenge
facing recreation and leisure service
5. To enumerate the types of MICE events, it’s key players and its procedure in
planning
Unit Topics:

1. Transportation Sector
1.1 Transportation Defined
1.2 Seven fundamental points regarding the provision of transport facilities
for tourism
1. 3 Mode of Transportation
1. 4 History of transportation
1.5 Role of Road and Rail Transportation to tourism
1.4 Impact of Waterborne Transportation tourism
1.5 Growth of Airline Industry
2. Accommodation
2.1 History of Lodging Industry
2.2 Types of accommodation
2.3 Management Styles in lodging industry
2.4 Hotel Profitability and Profitability Ratio
2.5 Accommodation Marketing and Promotion
3. Recreation, Leisure and Attractions
3.1 Types of Organized Recreation
3.2Theme Park
3.3 Attractions
3.4 Sports and Fun Centers
3.3 Challenges Facing Recreation and Leisure Services
4. Mice Sector
4.1 History
4.2 Types of Events
5. Food and Beverage
5.1 Definition
5.2 Terminologies

TRANSPORTATION SECTOR
Transport is a highly competitive sector which includes every conceivable option from the
rickshaw ride to an extensive international network of scheduled flights. The main forms
of transport are listed below:

1. Walking and cycling: Sustainable transport options; walking is important for visitors
where exploring most destinations. There are horse-drawn carriages and
rickshaws.
2. Private vehicles: The car is the most important form of transport for short to
medium distance journeys (also includes car hire)
3. Road Passenger Transport: This ranges from local buses to long distance
coaches. This is declining importance in tourism. Taxis are included in this
category.
4. Rail transport and fixed track: This includes trams and metros in cities, local
rail,inter-uban and long distance trains. Not important in tourism for short distances
but gains in importance over medium to long distances.
5. Water: Ferries and water buses for local journeys. Cruise liners.
6. Air: Scheduled and charter flights.

There are seven fundamental points regarding the provision of transport facilities for
tourism:

 Most transport provisions are not geared solely for tourism and in many
instances local transport system are designed for residents or freight transport.
 Without transport tourism could not exist, for it is a movement of people away
from their daily existence at their home and in the neighborhood that is a
distinguishing feature.
 Transport infrastructure is essential for most transport system to function. The
infrastructure is primarily in public ownership although there has been a
sweeping tide of privatization and deregulation across the globe in recent
years.Thus,many rail systems have been privatized,including the rail track,and
in some countries highways are being financed in partnership with private
sector companies
 The marketing of transport system is similar to other tourism sectors,in that the
main task is to manage the peaks and troughs of demand and to segment the
market with painstaking accuracy.Like the accommodation sector,competition
from other modes and between modes is intensifying.
 Despite privatization government involvement is likely to remain,given that the
free market approach to transport continuous to generate unacceptable levels
of congestion and pollution.This is a worldwide problem fueled partly by
tourism.
 Deregulation of airline will continue as governments review protectionist
policies (Wheatcroft,1994:3)
 There is a sector which markets the transport facility primarily as a tourism
attraction. The steam railways of Britain and the mountain railways of
Switzerland are classic examples.
Historical Development of Transport System

Year Mode of Transport Speed(miles per hour)

6000 BC Caramel Caravan 8
1600 BC Chariot 20
AD 1784 First English mail coach 10
1825 First steam locomotive 13
1890 Improved steam 100
locomotive
1931 Land Speed Record 350
(Bluebird :Sir Malcolm
Campbell)
1938 Land Speed record(Napier-
Railton car:John Cobb)
1938 Piston aircraft 400
1952 United States Liner from 41
New York to Le Harve
1958 Jet fighter aircraft 1,300
1958 Boeing 707 and DC-8 600
aircraft
1961 Spaceship(Vostok 1 17,560
orbiting)
1967 Rocket plane 4,534
1970 Fighter bomber(Mirage IV) 1,450
1970 Commercial 1,320
aircraft:Concorde
1970 Boeing 747 626

Fig.5
Source:Reason, James. Man in Motion: The Psychology of Travel, London: George
Weindenfield and Nicolson Limited,1996

Rode and Rail Transport

The Automobile

To better understand the history of the automobile, it could be helpful to look at a time line
and see how all the pieces fit together. This time line describes the invention of the
automobile and its development with a focus on American automobiles in the twentieth
century.

1478 – Leonardo da Vinci invents the self-propelled car. This happens many years before
anyone else is even thinking about automobiles. However, the car remains a sketch on
paper and is never actually made. This self-propelled car is not a car like the ones we see
today. It is more similar to a cart and does not have a seat. In 2004, a replica of da Vinci’s
car is finally crafted. It can be seen on display at the Institute and Museum of the History
of Science in Florence, Italy.

1769 – Nicolas-Joseph Cugnot builds the first self-propelled road vehicle in France. This
vehicle is a tractor for the French army. It has three wheels and moves at about 2.5 miles
per hour.

1789 – American Oliver Evans receives the first US patent for a steam-powered land
vehicle.

1801 – In Great Britain, inventor Richard Trevithick builds a steam powered road carriage.
It is considered to be the first tramway locomotive. It is designed for use on road, not
railroad.

1807 – An internal combustion engine which uses a mixture of hydrogen and oxygen is
invented by Francois Isaac de Rivaz in Switzerland. He also designs a car for the engine,
the first automobile powered by internal combustion. However, his design turns out to be
very unsuccessful.

1823 – English engineer and inventor Samuel Brown invents an internal combustion
engine. It has separate combustion and working cylinders, and is used to power a vehicle.

1832 – Robert Anderson invents the first crude electric carriage in Scotland. It is powered
by non-rechargeable primary power cells.

1863 – Belgian engineer Jean-Joseph-Etienne Lenoir invents the “horseless carriage.” It

uses an internal combustion engine and can move at about 3 miles per hour. This is the
first commercially successful internal combustion engine.

1867 – German Nikolaus August Otto improves on the internal combustion engine. His
engine is the first to efficiently burn fuel directly in a piston chamber.

1870 – Julius Hock, of Vienna, builds the first internal combustion engine running on
gasoline.

1877- Otto builds the four-cycle internal combustion engine, which is the prototype for
modern car engines.

August 21, 1879 – American inventor George Baldwin files the first U.S. Patent for an
automobile. This invention is more similar to a wagon with an internal combustion engine.

1885 – German engine designer Karl Benz builds the first true automobile powered by a
gasoline engine. It has three wheels and looked similar to a carriage.

1886 – In Michigan, Henry Ford builds his first automobile.

1886 – Gottlieb Wilhelm Daimler and Wilhelm Maybach invent the first four-wheeled, four-
stroke engine in Germany. It is known as the “Cannstatt-Daimler.”

1876 – American George Baldwin Selden invents a combined internal combustion engine
with a carriage. It is never manufactured.

1893 – Brothers Frank and Charles Edgar Duryea invent the first successful gas-powered
car in the United States.

1896 – The Duryea brothers start the first American car manufacturing company in
Springfield, Massachusetts. It is called Motor Wagons.

1900- A steering wheel is designed to replace the steering tiller.

1906 – Alabama sets a state maximum speed limit of 8 miles per hour.

1913 – Ford’s Model T production rockets from 7.5 cars per hour to 146 cars per hour,
thanks to the utilization of the assembly line.

1924 – The car radio is introduced.

1940 – The first four-wheel drive, all-purpose vehicle is designed for the U.S. Military. It
becomes known as the Jeep.

1956 – The Interstate Highway Act creates a network of highways which connects all
parts of the United States.

1962 – Wisconsin becomes the first state to create a seat belt law. It calls for the seatbelt
to be a standard requirement in automobiles.

1974 – Air bags become a new car safety option.

1984 – New York state becomes the first state with a law requiring the use of seatbelts.

1995 – The car Global Positioning System, or GPS, is introduced.

1996 – Due to the rising cost of gasoline and impact of global climate change, zero-
emission electric vehicles come back to auto showrooms. The first electric vehicles had
been designed in the early 1800s.

1997 – The first Toyota Prius is sold in Japan.

Late 2000s – Many vehicle manufacturers begin to abandon once popular gas-guzzling
SUVs for more efficient vehicles due to environmental concerns and the recession.
Fig.6
Source: https://www.timetoast.com/timelines/cars-past-present-and-future--2

The car is is still widely neglected in tourism studies because it is now such an accepted
part of everyday life that in impact and use in tourism is taken for granted and overlooked.

The car offers considerable flexibility in the way people can travel and access tourism
resource and sites outside urban areas. The car transform the tourist’s ability to organize
and develop their own itineraries and activity patterns, no longer dependent upon existing
transport provision. The essential problem posed by the car is that its use is subject to
the whim of individual and its user cannot be controlled.

Coach and bus transport

The term coach is used to describe any form of publicly or privately operated road service
for passengers, other than local scheduled bus services. It embraces a wide range of
tourist services that are sold to the public, both directly and through other sectors of the
travel industry
In the road-based transport sector (excluding the car) a number of different forms of the
passenger transport serve the needs of tourists. These can be classified into:

1. Express scheduled coach service (domestic and international services)

2. Private hire services for group travel
3. Packaged tours on coaches
4. Urban and rural bus services to tourist locations
5. Airport taxi and shuttle services
6. Excursions, daytrip, sightseeing tours in urban and rural areas
The main reasons for selecting bus travel over other modes of travel are flexibility,
convenience and economy. Charter and tour service is the fastest growing segment of
the bus or motor coach industry. Travel agents arrange package tours including charter
services.

Rail Transportation

Rail transport was one of the motivations of leisure travel during Victorian and Edwardian
times, linked with the rise of the sea side resorts since it offers efficiency and large volume
of passengers from city to coastal destination.

Britain first organized train tour in 1841 when Thomas Cook organized an excursion
between Leicester and Loughborough. In 1851c three million Englishmen boarded the
train to see the Great Exhibition in London.
The first transcontinental route in the United States was completed in 1869.With the
advent of the steam locomotive in 1825 until after World War II, travel by train became
the primary means of movement within the United States. The train connections between
resorts in Niagara Falls, Long Beach, Saratoga, New Jersey and Las Vegas during 1800
to 1900 gives way to a more accessible and fast transport .The dependence of tourists to
rail transport is shown in the development of hotels in Las Vegas.

George Pullman built a luxury first-class sleeping and dining facility called Pullman Coach
in 1863.In 1868, the diner car was introduced on the Chicago and Alton Line. This idea
was adopted 10 years later b other rail companies. After World War II the invention of car
became more popular for working class. Due to rapid growth of private cars, the
passenger traffic on rail declined by 46% by 1950.In an effort to save the Railroad Industry
the Rail Passenger Act was created on On October 1970.The act created the National
Railroad Passenger Corporation now commonly known as Amtrak which operated in May
1971.Canada’s equivalent of AMTRAK is VIA Rail Canada which was created in 1977.
Eurail Group GIE was established in 2001.This group owned 27 European Railway
Companies and Shipping Lines, referred to as Eurail Members. This famous rail
transportation provides transport to 25 different countries such as
Austria,Belgium,Bulgaria,Croatia,Czech Republic,Denmark,Finland,France,Germany
Greece,Hungary
,Ireland,Italy,Luxembourg,MontenegroNetherlands,Norway,Poland,Prtugal,Romania,Ser
bia,Slovenia,Spain,Sweden and Switzerland.

Based on survey,the following are passengers’ reason why they favored the train :

1. Safety;
2. Ability to look out of the train and see the interesting things en route;
3. Ability to get up and walk around;
4. Arriving at the destination rested and relaxed; and
5. 5.Personal Comfort
The negative factors of rail travelers are slowness in reaching the destination,
inflexible departure times, and lack of quality in food service.

Waterborne Transportation
Within the water-based transport sector, there are three main forms namely:
cruising, ferries and pleasure craft. A cruise ship is considered as “floating hotel and
resort” because it offers products and services similar to the land based hotels and resort.
Cruise ship provides accommodation, meals and entertainment which include charm
classes, language lessons, dance classes, sports and fun activities, aerobics and health
and wellness programs. The opportunity of passengers to socialize on cruise vacation
with the combination of food, activities and visit to exotic places are reasons why many
passengers are attracted to cruising.
The cruise liner sector is growing fast as the market image is changing to meet the
lifestyle of more moderate income earners. Carnival Cruises in USA, for example,
repositioned to provide lower cost, shorter and more fun-based cruises. In contrast, other
major companies, such as P&O and Fred Olsen Lines, have invested heavily in a new
fleet to meet the needs of an affluent client base.
The United States dominates the international cruise market by supplying more
than 70% of total passengers followed by Europe with 17%.

The ferry market is increasingly moving away from being a provider of transport to
becoming a visitor attraction in its own rights. Both Stena an P&O have introduces
imaginative campaigns to hold patronage against the Channel Tunnel, but they are losing
share despite price discounting on a heavy basis Throughout the world, many ferry
operators have repositioned to meet the needs of the tourism sector by increasing
facilities on board and stopping at more destinations en route. The ferries to the Greek
Islands, or those serving the Western Isles of Scotland, fall into this category.

Growth of Airline Industry

The birth of airplane had created a revolutionary impact to tourism industry. On December
17,1903,the Wright Brothers took a flight on a beach in North Carolina which lasted 12
seconds with distance of 120 feet.Government sectors helped in subsidizing air
companies for its regular routes.
In the United States,almost all early airline started by carrying mail for the post
office. One of the first was Varney((later became United Airlines )began in April
1926.Western Airlines began its passenger service on April 17,1926when it carried a
woman passenger along with the mail.Pan American Airways had the first flight in 1927
when it carried mail from Key West,Florida to Havana,Cuba.

Just twenty-four years after the first flight, “Lucky Lindy,” or Charles Lindbergh, flew solo
across the Atlantic. Naturally, this made headlines around the world and the world saw
that international flight was possible. Soon afterward, two women pilots also traveled
across the Atlantic – Amelia Earhart in 1932 (going from America to Ireland), and Beryl
Markham flew from England to America in 1936.

Naturally, the outbreak of World War I brought with it the need for better weapons and
ways to deliver them – and the aircraft was to become the primary delivery vehicle of
choice. This led to faster growth and development, and aircraft soon had two or four
engines on them to increase their ability to carry heavier payloads. Most aircraft during
this time period had two wings and engines that either pushed the plane (behind the wing)
or pulled it from in front of the wing. Airmail was started around this time, as well. The
airline industry grew tremendously during WWII, and commercial airlines were able to
move more than 3.3 million people just in 1941 – the year that the United States entered
the war. The number of airline jobs exploded, going from about 190,000 to more than
450,000 in that year alone. During the war, many different designs of aircraft were being
mass-produced for the military, having even greater requirements for cargo and speed.

The year 1947 – just two years after WWII, marked the first supersonic flight, and 1951
introduced the traveling public to the first turbo-jet airliner company, aptly named Comet
Airlines. By 1976, France had developed the SST Concorde. This sleek-bodied jet was
making regularly scheduled commercial supersonic transatlantic flights in just a couple of
hours. Soon, wide-body jets carrying 400 passengers or more would become the staple
of the industry.

Deregulation
In the mid-1970s, Alfred Kahn, an economist and deregulation advocate, became
chairman of the CAB. Around the same time, a British airline began offering
exceptionally inexpensive transatlantic flights, awakening a desire for U.S.-based
airlines to lower their fares. These influences led to Congress passing the Airline
Deregulation Act of 1978, ushering in an era of unencumbered free market competition.
The CAB disbanded a few years thereafter.
Late 20th Century
Post-deregulation, new carriers rushed into the market, and new routes directly
connected cities previously accessible only via a string of layovers. Fares dropped as
competition and the number of customers increased. A 1981 air traffic controllers strike
brought a temporary setback to the growth, which continued throughout the 1980s.
Some of the major carriers who had dominated the skies during the middle portion of
the century, such as Pan American and TWA, began to collapse in the wake of
competition. Such carriers disappeared completely following the Gulf War and
subsequent recession of the early 1990s. Surviving airlines rode out the recession and
returned to record profitability by the late 1990s.
21st Century
In 2001, the industry dealt with the effects of another economic downturn, as business
travel decreased substantially while labor and fuel costs increased. The events 9/11
greatly magnified the airlines' issues, leading to a sharp decline in customers and
significantly higher operating costs. Losses continued for years; the industry as a whole
didn't return to profitability until 2006. A relatively stable period followed, although
controversies arose over service quality and passenger treatment in terms of flight
delays, particularly those involving planes waiting on the runway. In 2010 and 2011, the
U.S. Department of Transportation issued a series of rules mandating that the airlines
provide adequate modifications for passengers in extenuating circumstances.

The terrorist attacks on September 11, 2001 shook the United States in a profound way,
deeply upsetting the national perception of safety within U.S. borders. No industry or
sector of the economy felt the impacts of these events more than the airline industry.
Both the immediate reaction to the attacks and the long-term repercussions have
negatively affected the industry.
CoVid-19 Effect on Aviation

One effect of those limitations on travel is the reduction in the number of commercial
flights.

The average number of commercial flights per day fell from more than 100,000 in January
and February this year to around 78,500 in March and 29,400 in April, according to data
by Flightradar24, a website that tracks flights globally.

Such a decline has led airlines to ground a large proportion of their fleet, resulting in many
running into financial difficulties.

Some governments have stepped in to offer a lifeline for those struggling. They include:
 The U.S. Treasury Department reaching an agreement with
airlines including American, Delta and United for billions of dollars in government grant;
 French and Dutch governments saying they would provide up to 11 billion euros ($12.03
billion) in financial aid to Air France-KLM;
 Singapore's government working with the private sector to provide up to 19 billion
Singapore dollars ($13.42 billion) of funding to flagship carrier, Singapore Airlines.

Activity:

1. Conduct a study on how the CoVid 19 affects the safety and security of the tourists
in riding any of the transportation.
2. Make a study on the impact of pandemic to the cruise industry.

ACCOMMODATION AND LODGING SECTOR

History

The lodging industry developed because of the need to provide accommodations for
travelers .Early roadside inns were mentioned in several instances in both the Old and
New Testaments. According to the historians, the origin of the lodge is not very clear.
However, it believes that the Christian bible cites Christ’s birth in the first of an early inn.
Between the 11th and 13th centuries knowing as taverns (inns) serviced the travelers on
the roads of the Roman Empire. Providing service to the relatively large number of
Crusaders . The traditional formula of an "Age Faith", providing we remember that the
Middle Ages were many other things as well. Those of us who are fascinated by the
growth of national cultures and theirs contribution to the composite pattern of Western
civilization can not fail to notice that Europe was born in the Middle Ages. The word of
Christ, coming from Jerusalem, added prestige to the Asiatics provinces of Roman
Empire. At the opening of Middle Ages, however, the Germans overthrew the Roman
barrier which had been cutting Europe in two. Sooner a number of missionaries, soldiers
and merchants began to fan out toward the outlying of the European north and northeast.
That is in fact, made it, and the Middle Ages, great.

Men are the basic raw material of history. What matters, however, is the way raw material
is put to use. Commerce among the various sections became the leading force in
economic development. Industry made slower but significant gains. The foundations of
modern banking, public finance and accounting were laid. Economic growth and
intellectual achievements proceeded side by side, lending support to each other. The
thinkers in the first universities; medieval traders and preachers ventured all the way of
China and tropical Africa. Commercial travel in Europe was an outgrowth of British
commerce, which carried over to the American colonies in the 1700’s. The Industrial
Revolution and the development of spas helped the growth of the hotel industry. By 1750,
Brighton,Blackpool,Southern,and other English seaside resorts were attracting bathers.
America’s first hotels were seaport inns. An example of an early American inn is
Manhattan’s Fraunces Tavern.Also,pre-revolutionary boarding houses are preserved in
Guildfored,Connecticut,Colonial Williamsburg, Virginia and elsewhere.

By the middle of 17th century, public stagecoach had appeared. Coach service was
established by innkeepers to attract business. The inn was used not only as boarding
house but also as a booking office, waiting place, eating establishment, and as center of
the town’s socia0l activities.
A different kind of hotels were established because of the rapid growth of railways. The
growth of automobile led to establishment of roadside hotel. Motel was constructed near
the highways and expressways.
After World War II, advances in air transportation led increase in demand of hotels.
Airport, downtown and resort areas were in demand for the business travelers. Although
hotel industry is booming, family-owned hotels could not compete. Ellsworth Statler was
y International the first hotel chain pioneer. His hotels were established at Buffalo,
Cleveland, St.Louis,Detroit,Boston and New York. The famous deluxe hotels owned by
Hilton Corporation. Conrad Hilton built an empire that includes the Waldorf Astoria in New
York and the largest hotel in the United States, the Conrad Hilton Hotel in Chicago with
3,000 room. Another fast growing hotel was Sheraton chain founded by Ernest
Henderson. The chain is now owned by International Telephone and Telegraphy
Company(ITTI).Holiday in was founded by Kemmons Wilson in 1952.The famous sun
vacation in the 1960 brought the development of resort hotel. Changes in the architectural
design was adapted to cater the modern travelers. The atrium concept in hotels was
introduced by architect John Portman. This boosted the popularity of Hyatt.
American hotels expand as hotels met the international standards. Hilton International
opened its first hotel in San Juan, Puerto Rico in 1949.In addition, it opened a hotel in
Berlin in 1958followd by the countries in Europe. Intercontinental opened many hotels in
Latin America. At present it has 109 properties in 49 nations. Sheraton opened its first
hotel in Canada in 1949.Holiday Inn opened its first property in Montreal in 1960.At
present, it has 221 international hotels in 52 countries outside the United States.

Classification of Hotels

Hotels can be classified according to location, type of guest and price. Under classification
of location, hotels may be at the airport, suburban, seaside and center-city. With regards
to guest type, hotels are classified as commercial, conventions, or resort. Base on price,
hotel categories are economy, standard, first class or deluxe.

Management Method

1. Franchising

Hotels that are franchised are owned and operated by the same person or company. The
hotel operator or franchisee signs a contract with the franchisor to maintain certain
operating standard and to use the franchise name on the hotel or motel. The franchisee
receives benefits such as extra business as a result of the franchisor’s national or
international advertisements, the use of the franchisor’s operating and accounting
system, and a line into the franchise chains reservation system. In return for these
benefits, the franchisee will pay a royalty and an advertising fee plus a percentage of
annual room sales or a specified number of dollars for each room sold.

2. Management Contracts

Hotel management contract was signed in 1946by the International Hotels; it was only in
1970s that management contract became widespread.
Under management contract, the hotel management company does not have financial
interest in the hotel’s land and building. He landlord owns the property but does not have
any interest in managing it.In return for operating the property for the landlord, the
management company receives basic annual management fee, plus an incentive, which
is based partly on total sales.

Under a management contract, the investment rent is transferred from the operator to the
property owner. The management contract also allows hotel-operating companies to
widen their investment base by increasing the number of rooms managed, thereby
increasing their profits. Developers who do not have experience in hotel management
usually build large hotels and then turn them over to the hotel management companies
to run them. It was the management contract that enabled hotel companies such as Hilton
International to expand rapidly around the world. The expansion was due to its ability to
get capable management teams.

Room Rates

The maximum rate of the hotel depends on the number of people occupying. This
is called rack rates. Hotels offer special discounts to travel agents and airlines. The
revenue that is obtained for a guest is gone and cannot be recovered. Thus,hotels offer
discounted rates to special classes of people to encourage them to stay in the hotel.For
example,there are special rates for business travelers,government employees,airline
employees or group of people attending conventions and conferences.

Hotel Profitability

Room Occupancy

What Is the Occupancy Rate?

Occupancy rate is the ratio of rented or used space to the total amount of available
space. Analysts use occupancy rates when discussing senior housing, hospitals, bed-
and-breakfasts, hotels, and rental units, among other categories. In a call center,
occupancy rate refers to the amount of time agents spend on calls compared to their
total working hours.
 A simple measure of hotel’s profitability is its room occupancy. It is obtained by
dividing the number of rooms occupied by guests on any night by the number of rooms in
the hotel and by multiplying the result by 100 to determine the occupancy on a percentage
basis.For instance,if a 125-room hotel ha 75 rooms occupied on a particular night, its
occupancy will be:

75 x100 =60%
100

Double Occupancy Room

Double Occupancy is determined by dividing the number of guests accommodated during

a certain period by total number of guest rooms during that same period. For example, if
463 rooms were occupied by 713 guests during a week, the double occupancy is :

713=1.54
463

The 1.54 double occupancy ratio means that 54% of the rooms were double occupied.

Average Rate Per Room Occupied

Another way of measuring maximization of revenue is the average rate per room
occupied. The average room rate is obtained by dividing the revenue for a period by the
number of rooms occupied during that period. For example, if a hotel had 463 rooms
occupied during a week and a room revenue of $37,640 for that week, the average room
rate is:

$37,640=$8
463

Average Daily Rate Per Guest

Another useful statistics is the average daily rate per guest. This is obtained by
dividing total room revenue for a period by the total number of guests accommodated
during that period. For instance, if the total revenue for the week was $65,529 for hotel
occupied by 1,050 guests, then the average daily rate per guest for a week is:

65,520 = 62.40
1,050

Average Length of Stay

 To maximize revenue and increase room occupancy, hotels increase the length of
stay of customers through advertising and other marketing methods. The extra stay shall
add revenue to the hotel.

Breakeven Point

Hotels are often interested to know their breakeven point. This will determine if the
hotel made profit or loss.

Fixed Cost________
Contribution Margin
Fixed costs are those that stay the same regardless of the volume of business. Examples
are management salaries, interest, depreciation, insurance, property taxes, mortgage
payments, amortization and physical plant maintenance. Contribution margin is defined
as the average room less the variable costs of having a room occupied. Variable costs
are those that change according to the number of guests in a hotel. The variable costs
for a hotel room are primarily the costs of housekeeping such as maid wages, linen,
laundry and supplies.

For example, if the fixed cost of a 125-room hotel is $1950 for a year, its average room
rate is $80, and the variable cost per room occupied is $20,its breakeven point would be:

$1,950,000 =$1950000/$600,000=32,500
$80.00 – 20.00

The 32,500 rooms to be occupied during the year can be converted into an
occupancy figure as follows:

32,500 x 100 =32,500 x 100 =71.2%

125 X 365 45,625

This means that the hotel must average 71.2% occupancy during the course of the year.
A breakeven analysis is an important managerial tool because it shows the percentage
of occupancy that a hotel must have to cover expenses.

New Marketing Trends in Accommodation

Technology will be at the core of the hotel experience both in room, before and after the
trip. This will lead to the development of new concepts and more innovation in
the industry and contribute to the emergence of an ever more individualized offer. Hotels
affiliated with budget carriers Air Asia and Red Planet Hotels of Thailand create a no fuss
and no frills experience. Tune Hotels’ branded value hotel concept is “pay as you use” in
which a check in guest only pays for room rates with option of adding on other amenities
like towels, toiletries, air-conditioning, in room WIFI satellite TV Service. Large hotels
market their services through showcasing discounts on travel trade expositions and
advertisements. Hotels use e-marketing and digital marketing as means to reach the
customers using their own websites.

Activity:

1. Conduct a research about safety protocol implemented in a certain hotel. Choose

a hotel that applies high standard of safety and security.
2. Cut and paste at least 3 hotel advertisements. Write your reaction if the strategies
are effective or not.

RECREATION, LEISURE AND ATTRACTION

Tourist attractions may be natural, historical, cultural, man-made or special interest.

Festivals are also considered as attractions.

1. Natural attractions. Examples of these attractions are the beaches of the small island of
Cebu, the mountains of the Cordilleras, the caves of Samar, the coral reefs of Tubbataha,
the pristine water of Lake Bulusan, and the seascape of Batanes.
2. Historical attractions. These may be a certain house or structure that reminds us of a
significant person or event in the past.
3. Cultural attractions. These refers to practices, rituals, songs, dances, arts,architecture,and
other things that showcase the culture of a certain group of people.
4. Man-Made attraction. These may be structures, buildings, monuments or other man made
things that have no historical value but serve as attractions to both domestic and
international tourists.
5. Special Interest attraction. These attractions may be natural, historical, cultural, or
manmade that cater to a group of people with a particular interest.
6. Festivals. A festival may be based on a particular belief or religion.

EVOLUTION OF ATTRACTION

During the ancient times, Romans visit Egypt to see pyramids. During Renaissance era,
the Grand Tour opened Europe attractions to the noble bachelors. During 19th century,
people are fond of moving from places to places to enjoy the attraction on the suburban.
Until today, the people who wants to escape the city would seek refuge to a more
secluded and private place for rejuvenation. Others will visit the festivals and participate
on the local activities, while some would prefer to visit sites nearby.

WORLD’S MOST POPULAR THEME PARKS

YEAR OPENED PLACE COUNTRY APPROX.NO.OF

VISITOR IN
2014(million)
 Black Pleasure UK 6.5
Beach
De Eheling Netherlands 3.5
Disney,Anaheim USA 13
Universal USA 5
Studios,Hollywood
Magic USA 15
Kingdom,Orlando
Sea World,Gold Australia 1
Coast
Ocean Park Hong Kong 3
EPCOT,Orlando USA 9
Tokyo,Disneyland Japan 13
Lotte World,Seoul South Korea 8
Universal Japan 7
Studios,Japan
Disneyland,Paris France 10
Universal Japan 7
Studios,Japan
Disney Californian USA 5.5
Adventure

Attractions may be located in the following:

1. Natural Environment
2. Built environment which are originally designed for visitors but are adapted as attractions
due to its increasing popularity among people.
3. Built in environment and designed for visitors purposes such as visitor centers and leisure
parks.

Amusement Park and Theme Park

These are terms for a group of entertainment attractions and rides and other events in a
specific location for the enjoyment of large number of people.An amusement park is more
elaborate than a simple city park or playground because it provides attractions to people
of all ages.
Ausement park evolves in Europe from fairs and pleasure gardens which were
established for the people’s recreation.The oldest amusement park in the world is Bakken
which was opened in 1583 at KLampenborg,north of Copenhagen,Denmark.

“Theme Park” is often used as a synonym for “amusement park”.A theme park is
a distinct type of amusement park which promotes a specific theme or exclusive set of
themes.IN Disneyland in Anaheim,California is considered as the first theme park.Theme
park trips are ideal for family vacations,including children below 19 years of age.Theme
park travelers usually fly to their destinations and rent a car once they arrive.They engage
in various activities such as shopping and visiting historical places,museums,and
beaches.

Issues in Management Tourist Attraction

The external and internal environment affect the product quality, operational capability
and visitor experience. Managers should focus in developing strategy that recognizes
threats and focuses on managing potential impacts to attain long term capabilities.

Management Planning

Effects of higher level of planning:

1. Higher visitor number

2. Increase volume
3. Longer asset value
4. Greater local profit
5. Lengthened visitor stay
6. Better growth
7. Greater confidence

Revenue Generation in Attraction

1. Encouraging educated visits.

2. Providing a venue for corporate hospitality, meetings and product launches.
3. Hosting weddings and birthday parties.
4. Generating rental income from alternative usage of infrastructure, such as retail
outlets, clubs, and offices which utilize redundant building or space on-site.
5. Introducing car parking charges or leasing of the car park to a management
company.
6. Improving retail and catering initiative that offer unique and distinctive products and
experiences that reflect the ethos of the attraction.
7. Attracting more visitors and more frequent repeat visit.
8. Increasing length of stay by offering more activities (such as children’s sleepovers
at the Boston Children’s Museum)
9. Extending opening hours to expand experiences on offer(such as nighttime
visiting(asin the case of Singapore Zoo)
10. Introducing members or friends schemes giving privileges and discounts.
11. Hosting high profile events.
12. Attracting corporate sponsorship.
MICE INDUSTRY

HISTORY

MICE in the Philippines can trace its roots to the Philippine Tourist and Travel
Association. Established in 1950, it started as private initiative to promote the Philippines
as a tourist destination. In 1972, President Ferdinand Marcos signed Presidential Decree
No.1.This led to the establishment of the Department of Trade and Tourism and the
creation of a Philippine Tourism Commission. One year after, the Department of Tourism
became an independent body. It was later renamed the Ministry of Tourism in accordance
with the amendments to the 1973 Constitution.
It was in 1976 when the Philippine convention industry was born. The Philippine
International Convention Center(PICC)-Southeast Asia’s first convention center-
successfully hosted the International Monetary Fund-World Bank Joint Conference.
In the same year, Philippine Convention Bureau(PCB) was established to promote the
country as a meeting and convention destination.
Complementing the PICC was the Philippine Center for International Trade and
Exhibition. (PHILCITE). Also located at CCP Complex, it was the country’s pioneer
exhibition hall and organizer. Aside from managing trade fairs in the Philippines and
abroad, it deals with the marketing and sales of building and exhibit booths; corporate
and event publicity and promotions; as well as inter-agency trade and professional
networking.
Among its notable conventions and exhibitions were Food Fair Manila, Agri Aqua Poultry
and Livestock International Fair, International Book Fair, International Agricultural and
Aquatic Exhibition, and toys and Gifts Fair, Today,Star City occupies the original
PHILCITE building.

In 1986, President Corazon Aquino signed Executive Order Nos.120 and 120-A
reorganizing the Ministry into the Department of Tourism and renaming the PCB into the
Philippine Convention and Visitors Corporation(PCVC).

IN 1991, the movement of Incentive Travel Executives (MITE) was organized in

cooperation with the New York-based Society of Incentive Travel Executives (SITE).

Since 1994, MITE in cooperation with the Tourism Promotions Board(TPB), has
spearheaded two major events. The Philippine Incentive(Phil-Incentive) Marketing
Conference designed to professionalize the local incentive travel industry; and the
Meeting and Incentives Mart(MIM), aimed at bringing buyers and sellers of meetings and
incentive together.
What is an Event?

An event is the general term which indicates the coming together of a number of people
in one place to confer or carry out a particular activity.Frequency can be on an ad hoc
basis or according to a set patten,as for instance annual general events or committee
events(International Congress & Convention Association)’

Types of Events

1. Conferences
A conference is a large event (attendance numbers are typically in the hundreds or
thousands) focused on a central theme or industry that is typically held over multiple days.
Event activities for this event type include speakers, exhibitions, contests, and networking
opportunities as well as more recreational get-togethers pre- and post-conference.

Best for these business goals: Raise product or brand awareness, increase sales,
position company as an expert

Ideal venues for this event type: Conference and convention centers

Strategic layouts for this event type: Any floor plan that is spacious, takes sightlines
into account, and keeps attendees as close to speakers as possible will do well at a
conference. Try auditorium-style seating to keep the attention on the stage or banquet
style to facilitate breakout groups.

Real-world example: TechCrunch Disrupt is an annual conference geared towards

connecting startups with investors and educating attendees on the latest trends in
technology. Their speaker lineup includes some heavy hitters. These partnerships help
them secure their image as a top resource for the most cutting edge tech news and
innovations.

2. Trade Shows
Trade shows bring together tons of like-minded brands under the umbrella of one major
theme. This interactive event type relies on exhibition booths and interesting partners to
create memorable experiences for their audience.

Best for these business goals: Showcase a variety of products both old and new,
connect face to face with your audience, supercharge lead generation, build
sales/marketing contact lists

Ideal venues for this event type: Conference and convention centers, auditoriums,
universities
 Strategic layouts for this event type: Grid layouts help organize booths into aisles for
greater efficiency of space as well as grouping brands into relevant categories. It helps
your audience plan out which booths they want to target as well as discover new brands
nearby that may also appeal to their interests.

Real-world example: Natural Products Expo West offers multi-city trade shows featuring
hundreds of organic and healthy products. In addition to sampling various foods, beauty
products, and supplements, attendees enjoy discovering hot new brands to love. They
also offer plenty of educational opportunities (in the form of printed materials, videos,
newsletters, and dedicated booths) on causes their guests care most about.

Key trade show takeaways:

o Trade shows are fun and exciting for attendees because they love getting to try

samples, participate in hands-on demonstrations, and learn about services they can

really use.
o By offering their event in multiple major cities, Natural Products Expo West makes it

as convenient as possible for interested participants to attend. They also share plenty

of educational programs on their event website, which brings in even more leads online

and helps those who can’t physically attend the events get more involved.
3. Seminars
On the surface, seminars are a lot like conferences. The biggest difference is that
seminars are entirely dedicated to instruction and training. Because they’re academic in
nature, it makes sense why they’re often done as a series and involve smaller groups
than their more massive and diverse event type counterparts.
Best for these business goals: Product training, employee training, certifications or
courses, develop or strengthen long term customer loyalty
Ideal venues for this event type: Classrooms, board rooms, small to medium size
multifunction spaces
Strategic layouts for this event type: Classroom style layouts and conference-style
tables help attendees learn as a group while also giving them space to break off into
partners or discussion sections as needed.
Real-world example: The Academy of Business Leadership holds multiple one-day
seminars called “Got Big Dreams?”. Attendees include 8th graders to college sophomores
who have big dreams that typically involve some level of entrepreneurship. Guest
lecturers lead them through a variety of exercises and discussions that help them flesh
out their ideas as well as actionable next steps for starting their own businesses.

Key seminar takeaways:

o Seminars are educational events that help businesses connect with attendees by

giving them practical information, tools, and skills to achieve their own personal goals.

o Follow in the footsteps of The Academy of Business Leadership and target

underrepresented demographics (in this case teenagers and young adults). Focus on

solving one major pain point then provide plenty of extremely useful solutions they can

take away from the experience.

4. Corporate off-sites & executive meetings
Corporate off-sites and executive meetings are face-to-face events that often involve high
level employees and/or key business partners. Companies use this type of event for lots
of reasons but it’s up to the event planner to set them up for success through clear
agendas, creative environments, and tools or policies that improve productivity.

Best for these business goals: Generate new ideas, complete a specific task, make
important decisions, establish partnerships

Ideal venues for this event type: Boardrooms, restaurants, co-working spaces

Strategic layouts for this event type: Round tables are best for groups of 10 or less (to
facilitate discussion) whereas larger groups do better with U-shape seating or the classic
conference style set up.

Real-world example: Companies like Buddytruk make it a point to meet every Friday
and recap the major events of the week. Not only does this keep the whole executive
team on the same page, it also allows for a more effective review of current goals,
budgets, and projects. While it would be easy for a regular meeting like this one to run
late (given the fact that they cover many topics and it’s on a slow day), they’ve
implemented a fun push-up policy. If a meeting runs over the scheduled amount of time,
the last person who did the talking has to get down and give them 50!

Key corporate off-sites takeaways:

o Corporate off-sites and executive meetings help facilitate communication and offer a

higher level of collaboration that can’t be obtained using email and Slack alone.

o In-person meetings can be fun and productive as long as you put some policies in

place to keep your attendees on task, just like Buddtruk did with their creative
punishment.
 5. Company parties
Company parties bring employees together to celebrate shared victories, acknowledge
milestones, boost morale, and enjoy holidays. While the focus of this type of event is
usually fun and relaxation, event planners can still set and achieve concrete goals for
their colleagues.

Best for these business goals: Show appreciation for employees, facilitate
interdepartmental mingling, improve company culture

Ideal venues for this event type: Restaurants, converted warehouses, unique venues,
on-site event facilities, wedding venues, recreational venues

Strategic layouts for this event type: Because company parties are made for
socializing, it’s best to include plenty of empty space for dancing or just standing and
talking. Add some tables and chairs for comfort (especially if you plan to serve food).

Real-world example: Amazon’s post-holiday party celebrates the new year, recent wins,
and their employees through a variety of fun activities. In addition to enjoying great food
and drink, attendees got caricature self-portraits, a concert, a dance party, karaoke,
dueling piano performances, and even kicked field goals.

Key office party takeaways:

o Company parties are an important component of a successful corporate event

ecosystem thanks to its inherent morale-boosting effects on employees.

o Even if you don’t have the budget to pull off a celebration as extravagant as Amazon’s,

you can still plan interesting activities that employees will love. Aim to include things
or places that your team enjoys as a group or has special meaning to your brand.

6. Product launch
Product launches help formally spread the word about a new brand, partnership,
product/service, or special offer. These in-person events generate buzz and help
attendees get to know your company better.

Best for these business goals: Increase sales, improve brand recognition, connect
more intimately with fans
 Ideal venues for this event type: Boutiques, hotels, spas, golf courses,
restaurants/bars, any industry-specific venue that allows for mingling, photography, and
mini booths.

Strategic layouts for this event type: Any custom floorplan that has one central point
of focus (the product or service being launched) with plenty of space to mix and mingle.
You can also include mini booths for hands-on experiences or brand partnerships.

Real-world example: Fenty Beauty’s launch party (hosted by Sephora) hand-selected a

mere 180 attendees for the exciting event. Guests had exclusive first-access to their
brand new makeup products as well as fun activities like photo booths and a the chance
to appear in a custom-made digital fan film.

Key product launch takeaways:

o Product launches are a more personal way to make a splash with new brand offerings.

o Limit your invitations to only your most influential fans like Fenty Beauty did to make

the event even more special and memorable. Add some interesting activities to the
mix and hand out some swag while you’re at it.

FOOD AND BEVERAGE

Food and beverage services sector contributes a great deal to the profits in
hospitality industry. With the increase in importance of business meetings, a range of
personal and social events, a large number of customers visit catering establishments
frequently. The food and beverage professionals tirelessly work to intensify customers’
experience through their service.
The F&B Services providing businesses deliver food and beverages to their customers
at a particular location (on premise) such as hotel, restaurant, or at the customer’s
intended premises (off-premise).

F&B Services – Definition

Food and Beverage Services can be broadly defined as the process of preparing,
presenting and serving of food and beverages to the customers.
F&B Services can be of the following two types −
 On Premise − Food is delivered where it is prepared. The customer visits the
premise to avail the food service. The premises are kept well-equipped and well-
finished to attract customers to avail F&B service.
 For example, restaurants, pubs, etc.
 Off Premise or Outdoor Catering − This kind of service includes partial cooking,
preparation, and service at customer’s premises. It is provided away from the F&B
Services provider’s base on the occasion of major events which call for a large
number of customers.

Types of F&B Services Operations

There are two broad types of F&B Services operations −

 Commercial − In this case, F&B Services is the primary business. The most
known commercial catering establishments are — hotels, all kinds of restaurants,
lounges, cafeterias, pubs, clubs, and bars.
 Non-Commercial − Non-commercial operations are secondary businesses in
alliance with the main business. These F&B services mainly cater to their
consumers with limited choice of food and beverages. These establishments
often run under contracts. For example, food and beverage services provided at
hospitals, hostels, and prisons.
In this tutorial, we mainly consider commercial food and beverage service sector. Let us
first understand some common forms of F&B service.

What is Catering?

Catering is the business of providing foods and beverage service to the people at a
remote location. It is a part of food and beverage service sector. For example, arranging
food services at a wedding location.

What is QSR?

These are the fast food outlets called Quick Service Restaurants where the food is
prepared, purchased, and generally consumed quickly. They are run with convenience
as a main factor. Branded outlets such as McDonalds and Nando’s are QSRs.

What is FSR?

They are fine dining, family, specialty, ethnic, or theme restaurants called Full Service
Restaurants where the food and beverage menu is wide and the customer’s
expectations are high. They are operated with customer satisfaction and experience as
the key factors.

No. Term & Meaning

1 Back bar
A range of shelves displaying glassware and bottles.

2 Banquet
A sit-down meal served on the occasion of a formal or informal event such as a
wedding party or a conference.

3 Binge Drinking
Drinking too much in a single session.

4 Buffet
A dining system where the guests serve themselves. Popular with a large number of
guests and a small number of workforce.

5 Cocktail
Any mixed drink prepared using alcohol.

6 Condiments
Spices, sauce or other food preparations used to enhance the flavor or to complement
the dish.

7 Crockery
Plates, dishes, cups, and other similar items, especially ones made of glass,
earthenware, or china clay.

8 Cross-Contamination
It is a process of unintentional transfer microorganisms from one substance or object
to another, with harmful effect.

9 Croutons
Crispy cubes of bread
10 Cutlery
Knives, forks, and spoons used for eating or serving food.

11 Deli
A store that sells pre-cooked fine food.

12 Dram Shop
American term for ‘Alcohol Bar’.

13 Gueridon Trolley
A trolley used in F&B Services business on which the food can be cooked, finished,
or presented to the guest at the table.

14 High Ball (Long Drink)

Alcoholic beverage mixed with a large volume of soft drink and served in a tall glass
with straw.

15 Mocktail
A non-alcoholic drink prepared using fruit juices or other soft drinks.

16 Pathogen
It is a biological agent that causes disease to its host.

17 Platter
A large flat dish or plate for serving food.

18 Pub
British name for ‘Public House’, an establishment licensed to serve alcoholic drinks.

19 Shot Ball (Short Drink)

Alcoholic drink consumed in a gulp. It is served in shot glass.
 20 Situ
On site, locally.

21 Spot Checking
Regular surprise checking conducted to review standardized recipes and food
products to maintain quality.

22 Station
A set of tables allocated to waiters in the F&B Services establishment.

23 Table Cover
It is the area on the table for plates, glasses, and cutlery for single person.

24 Tines
Parallel or branching spikes of a fork.

25 Toque
Cooks cap with multiple folds represents the many different ways a chef knows to
prepare a dish.

Activity:

1. Find a partner. One has to act as client and one as event organizer. Think of any
business event and write a simple script on how the client make inquiries about
the event. Show how the event organizer will be willing to convince the client.
2. Choose 5 hotels in the Philippines which management is under Franchise, Show
pictures of the hotel and compare it to the same franchise hotel abroad.

DEFINITION OF TERMS:

1. Event
2. Out- door Catering
 3. Deli
4. Short drink
5. Amusement Park
6. Conference
7. Double Occupancy
8. Rack Rate
9. Break Even Point
10. Food and Beverage

Unit Exercises

Questions for review and discussion:

1. What is the difference between commercial and non-commercial food and beverage?

2. Discuss the different classifications of attraction and give example for each.

3. if the fixed cost of a 120-room hotel is $2000 for a year, its average room rate is $,60 and
the variable cost per room occupied is $20,its breakeven point would be?

Research Activity:

Look for an article which describes the new normal activity of Food and Beverage, Write
your reactions in 150 words.
REFERENCES:

Disimulacion,Maria Arlene T.Event Mamagement for Tourism,Sports,Business and MICE: A Philippine

Perspective,Books Atbp.Publishing Corporation,2012

Castro,Carl Francis T. & Ibanez,Maria Carmela . Attractions and Theme Parks Operations with
Ecotourism First Edition Rex Bookstore,2017

Claravall,Bienvenido,Travel and Tour Operations in the Philippines 3 rd Edition. Accumicro I.T.

Solutions,2013

Website

https://www.titlemax.com/articles/a-timeline-of-car-history/

https://www.timetoast.com/timelines/cars-past-present-and-future--2

htt https://traveltips.usatoday.com/effects-911-airline-industry-
63890.htmlps://www.timetoast.com/timelines/history-of-air-transportation--4

https://www.jobmonkey.com/airline/airline-careers-history/

https://traveltips.usatoday.com/history-airline-industry-100074.html

https://www.cnbc.com/2020/05/06/coronavirus-pandemics-impact-on-travel-tourism-in-5-charts.html

6investopedia.com/terms/o/occupancy-rate.asp

https://www.socialtables.com/blog/event-planning/types-of-events/

https://www.tutorialspoint.com/food_and_beverage_services/food_and_beverage_services_basics.htm
UNIT 5 TOURISM MARKETING

Unit Objectives:

1. To study the factors influencing market demand.

2. To explain the different players in the distribution channel
3. To discover the new trends in Tourism promotion and marketing using the new
styles of advertising

Unit Topics:

1. Tourism market demands

2. Distribution Channel
3. Travel Marketing and Promotion

Definition of Tourism Marketing

Tourism marketing is a term which is used to refer to that business discipline by which
the visitors are attracted to a particular location which can be a state, a city, a particular
heritage site or tourist destination spot, a hotel or a convention center anything.

The location can be anything which has the potential for attracting a tourist who comes to
visit a new place.

Tourism marketing is associated with marketing strategies in the field of tourism. Today
there are many countries in the world, where tourism plays a major role in enhancing
their GDP.

In such cases, tourism marketing becomes an important thing. Many of the places are
generally the hotspot for tourists like Taj Mahal in India. Now places like these are
considered the perfect areas where one can boost tourism marketing.

The places which are more likely to be the major spots for attracting tourists are the places
where tourism marketing flourishes the most. Now tourism marketing is all about applying
several marketing techniques and strategies to boost the tourism industry of that place.

For a successful tourism marketing to take place, the thing that is required the most is
that the brands should speak for themselves in such a way that their voices can be heard
in the targeted markets. Tis way they will be able to generate cleanest successfully. Also,
they need to be really careful in providing services to clients.
This is because if the customers are happy with the services chances they will spread the
word and this may bring them more customers. In the case of tourism marketing, it
becomes easy to find and draw the attention of the targeted customers towards the
website by providing encouraging contents. Thus strategic planning and branding is the
key to effective tourism marketing.

With it is carried out be keeping these two points in mind, chances are that the company
that is involved in tourism marketing will be able to gain the advantage over their
customers in no time and become a monopoly in the tourism industry.

What are the different ways in which Tourism Marketing Can Be Done?

Now there are various methods that are applied for tourism marketing to flourish. Below
are some of the important ways in which the tourism marking of any place is given a
boost.
1) Location marketing
In this type of marketing, the main focus of tourism marketing in one bringing the attention
of the people to a specific location. In this, no recommendations are made with respect
to a particular site or any accommodation. Now there are some locations that are already
so popular all over the world that the tourism marketers don’t have to make many efforts
in attracting their attention to such places.
All they need to do is to remind them of such locations and chances are that
the consumer can easily get convinced of visiting any such place. For example ‘Las
Vegas’ is popular for its undying charm and full of life kind of prospect.
Now there s also a popular slogan related to the Las Vegas which is ‘What happens in
Vegas, stays in Vegas’. This slogan has gained worldwide popularity and almost
everyone wants to visit Las Vegas at least for once.
So here the tourism marketers have to simply remind people of how amazing this city is
and what are the different ways in which they can have the time of their lives here. Another
example that can be taken is of Florida.
They use a more ‘benefit oriented’ approach. Their slogan is ‘The Sunshine State’. This
way they are presenting their state with a joyous and charming climate and as a perfect
place for the beach and the football lovers. Also with their slogan they are successfully
able to present their state as an ideal ‘summer vacation’ destination and are definitely a
dream for many to visit this place.
Thus location marketing is one of the simplest forms of tourism marketing in which without
even putting much of an effort, with the brand value and the popularity of some specific
location, the customers can be attracted.
2) Activity marketing
Now, this type of tourism is carried out keeping in mind both the location and the activities
that are performed in such places. This type of marketing usually keeps in mind the
travelers who are adventure lovers or activity freaks.
There are many locations all over the world which are famous for some specific activities.
Like Alaska is famous for snowboarding, the Yellowstone national park is famous for
thrilling activities like hiking, camping and is a perfect place for all the nature lovers,
similarly, there is ‘Colonial Williamsburg’ which attracts all the history lovers.
Thus depending upon the type of activity that a particular place is famous for, tourism
marketing can be carried out. Some people may be adventure lovers, some people may
be looking for art and culture some people love hunting, depending upon their area of
interest, the tourism markers can segment the groups of customers and approach to
them.
Thus activity marketing is a form of tourism making which emphasizes on bringing the
attention of a customer to particular places on the basis of the activities that are performed
there.
3) Corporate marketing

This is quite an interesting approach to tourism marketing. Now it has been found that a
large number of people working in corporate sectors have to travel to different places to
attend a conference or a meeting.
Then according to research, it was found if these locations where ideal for tourist, the
number of people came to attend those places. Also, they brought their families and their
loved ones as well. Now considering these scenarios in mind, corporate marketing can
contribute a lot to the tourism marketing as it has significant potential.
Here the tourism marketers take advantage of the fact that by planning the business
meeting in touristy places, people come in large numbers thus they can make a lot of
profit out of it.
What are the four basic pillars of Tourism Marketing?

No the foundation of the tourism marketing stands firmly on four of its important pillars
which are the product, the price, the place, and the promotion.
Let us understand each of these separately as to how to be them able to contribute to the
tourism marketing!
Marketing Mix of Tourism
1) Product
One of the most important aspects of tourism marketing is to determine the effect of the
selling benefits and the other types of benefits that re-obtained by competing with
their rivals in the same market.
The tourism marketers need to focus more on such destinations that provide both the
business and advantages and pleasure to their customers. These pleasures depend on
several factors like the ease of traveling, facilities of the hotels, nightlife of that place,
activities offered and the overall culture of that place.
Thus by considering these factors, the tourism marketers will understand the areas that
have to focus more on, so that tourism marketing can be done effectively.
2) Price
The price point is yet another important aspect of tourism marketing. Now many people
avoid traveling due to money-related issues. And this where tourism marketing comes to
save the day. Today so many apps have been developed, on which if a person books a
hotel r a transport like flight or train, they get discounts. This attracts a lot of customers.
Along with the free referral marketing, they also try to give value-added services to their
customers. There are some hotels that also offer free shuttle services to their visitors.
Also depending on whether it is a high season or an offseason, the prices are altered.
3) Place
Now for the tourism marketing to earn a profit, deciding the location where they want to
perform the marketing can play a key role in how far they can go. The place refers to that
area where the products and the services can be distributed.
Now in tourism marketing, the location and the destination marketers offer their products
and services to their customers through travel agents, tour operators, inside sales teas,
etc. The distribution of their products and services can be done through catalogs, online
websites, stores, etc.
4) Promotion
This is the fourth pillar of tourism marketing. In this numerous of different strategies
and technologies are used for the promotion of any specific area or a tourist
destination. In fact, the trade magazines and the meeting planners are also an efficient
way for promotion purposes.
These often come with many discount coupons, brochures, etc. also they try their targeted
customers to come across the ads that pop up on the website to make them aware of the
various tourist places.
Market Demand
Definition: The total quantity that all the individuals are willing to and are able to buy at
a given price, other things remaining the same is called as Market Demand. In other
words, Market Demand refers to the sum of individual dMarket Demand is the number
of units demanded by the total number of customers in the market. Thus the more popular
a company is, the more will be the market demand for its products & the more will be the
number of units demanded by the customers in the market.

We should not confuse market demand with market potential. Market potential is the total
number of potential customers in a particular market. However, market demand is the
actual demand for the product in the market.
For example – Even in winters the potential market of umbrella includes all the potential
customers in the market. however, in winters there is no demand for the product and
therefore the market demand will be very less even though the potential market is there.
The market demand will only be here during the season that is the summer season.
Examples of Market Demand
Go to any mall or any store and you will see demand in action. A store which sells 1000
soaps daily, has a demand of 1000 soaps. But on weekends, when the number of
shoppers increases, the demand might be 1200. This is just the demand of one store.
The demand will be completed irrespective of the brand of soap available because it is a
necessary commodity. So any brand not meeting the demand will see a loss of revenue.
As a company, you need to find out how many quantities of soap you manufactured
actually sold in the market? That was the market demand of the soap you manufacture.
And you need to meet that demand at all times to satisfy your current target market (not
the potential market).
So if the market demand is 1000 units and your company is catering 300 units, then the
market demand for your company is 300 units whereas the potential demand (market
potential) is 1000 units.

Companies like P&G and HUL which manufacture so many SKU’s need to have a
constant grasp of market demand so that they do not overshoot production or do not miss
the opportunity of selling their products in the market.
An example of poor forecasting of market demand was one which KFC faced recently in
the UK. The demand for KFC burgers was so high that KFC did not have burgers to sell
in 90% of its outlets in England. As a result, there was a huge opportunity loss to KFC
because the potential customers of KFC might have gone to McDonald’s or Burger King.
This proves that measuring market demand is very important for a company.
Advantages of Calculating Market Demand
1) Customer Expectations

One of the most important advantages of calculating market demand is the fact that your
customer expects you to keep the product in stock for him. If I want to buy a particular
brand of soap and the soap is not available in the local market (because of wrong demand
calculation) then I will give up the brand and search for something else. As a result, the
soap company has lost a hard-earned customer to some other brand. If the soap company
had estimated market demand, then they would have had the soap manufactured and
delivered to the retailer so that the customer could purchase it when he requires.
2) Opportunity loss is avoided
There is a huge opportunity loss if the market demand is calculated
incorrectly. Continuing the above example, if a company does not calculate the market
demand correctly then it will not produce the right amount of units which are required in
the market and as a result, it will lose a lot of revenue which it could have generated from
the market.
3) Cost savings

There is also a negative side of overestimating market demand. If the market demand
was a hundred unit and I have manufactured 200, then I have invested too much amount
in the product which was not needed. I have reduced my working capital and at the same
time, I would be paying a good amount of money for warehousing of the products which
have been overproduced. By doing the correct demand measurement we can save a lot
of such costs.
4) Focused approach
Measuring the market demand also helps companies focus on the target market. If a
company has 10 different products and the market demand is high for two or three
products, then the company can have a focused approach and produce these two or three
units in huge volumes and also push them in the market.
How to Calculate Market Demand?
There are two ways to calculate the market demand for any product
1) Product-level market demand
If you already know the geographic market which you are going to Target, then you can
use the product level market demand method. In product level demand, the market is
broken down in terms of the total product that exists in the market. The market demand
for each individual product is calculated and found out via market sources or via market
research. This research then gives us a total estimation of the demand for the product.
Naturally, it also gives us an estimation of the market potential as well.
For example, if I was going to launch a brand new shampoo in the market I will have to
calculate the market demand and the market share of all the shampoos been sold by
P&G and HUL. I would do a market research study and find out what was the total industry
sales for these brands. I would also like to find out what was the product line sales for this
particular brands.
For example, within the shampoos category, the anti-dandruff shampoo, as well as the
conditioners, are two different products and two different product lines. To truly find out
the market demand of shampoos, I will have to find out the individual market demand of
conditioners as well as anti-dandruff shampoo so that I can find out a net measure of the
available market for these products.
So any industry that you are in, if you want to find out the market demand of particular
product you just have to do a market research study on the number of units selling for all
the brands and this will give you of a fair example of the market demand for the product.
2) Geographic level market demand
The Geographic level market demand is very commonly used by a company which
is planning on expansion to Foreign regions. In this type of estimate on of market
demand, the company wants to know the demand for a particular product in a specific
geography.
Even in this geographic type of demand, the company conducts a market research study
for the number of units being sold in the market for a particular unit or SKU. In such cases,
the company might already be present in the target market or it may be planning to
establish itself in the target market.
Demands for a product at a given price per unit of time.

What is a Distribution Channel?

A distribution channel (also called a marketing channel) is the path or route decided by
the company to deliver its good or service to the customers. The route can be as short as
a direct interaction between the company and the customer or can include several
interconnected intermediaries like wholesalers, distributors, retailers, etc.
Hence, a distribution channel can also be referred to as a set of interdependent
intermediaries that help make a product available to the end customer.
Types of Distribution Channels
Channels of distribution can be divided into the direct channel and the indirect channels.
Indirect channels can further be divided into one-level, two-level, and three-level channels
based on the number of intermediaries between manufacturers and customers.
Direct Channel or Zero-level Channel (Manufacturer to Customer)
Direct selling is one of the oldest forms of selling products. It doesn’t involve the inclusion
of an intermediary and the manufacturer gets in direct contact with the customer at the
point of sale. Some examples of direct channels are peddling, brand retail stores, taking
orders on the company’s website, etc. Direct channels are usually used by manufacturers
selling perishable goods, expensive goods, and whose target audience is geographically
concentrated. For example, bakers, jewelers, etc.
Indirect Channels (Selling Through Intermediaries)
When a manufacturer involves a middleman/intermediary to sell its product to the end
customer, it is said to be using an indirect channel. Indirect channels can be classified
into three types:
 One-level Channel (Manufacturer to Retailer to Customer): Retailers buy the
product from the manufacturer and then sell it to the customers. One level channel
of distribution works best for manufacturers dealing in shopping goods like clothes,
shoes, furniture, toys, etc.
 Two-Level Channel (Manufacturer to Wholesaler to Retailer to
Customer): Wholesalers buy the bulk from the manufacturers, breaks it down into
small packages and sells them to retailers who eventually sell it to the end customers.
Goods which are durable, standardised and somewhat inexpensive and whose target
audience isn’t limited to a confined area use two-level channel of distribution.
 Three-Level Channel (Manufacturer to Agent to Wholesaler to Retailer to
Customer): Three level channel of distribution involves an agent besides the
wholesaler and retailer who assists in selling goods. These agents come handy when
goods need to move quickly into the market soon after the order is placed. They are
given the duty to handle the product distribution of a specified area or district in return
of a certain percentage commission. The agents can be categorised into super
stockists and carrying and forwarding agents. Both these agents keep the stock on
behalf of the company. Super stockists buy the stock from manufacturers and sell
them to wholesalers and retailers of their area. Whereas, carrying and forwarding
agents work on a commission basis and provide their warehouses and shipment
expertise for order processing and last mile deliveries. Manufacturers opt for three-
level marketing channel when the userbase is spread all over the country and the
demand of the product is very high.
Dual Distribution
When a manufacturer uses more than one marketing channel simultaneously to reach
the end user, he is said to be using the dual distribution strategy. They may open their
own showrooms to sell the product directly while at the same time use internet
marketplaces and other retailers to attract more customers.
A perfect example of goods sold through dual distribution is smartphones.
Distribution Channels for Services
Unlike tangible goods, services can’t be stored. But this doesn’t mean that all the services
are always delivered using the direct channels.
With the advent of the internet, online marketplaces, the aggregator business model,
and the on-demand business model, even services now use intermediaries to reach to
the final customers.
The Internet as a Distribution Channel
The internet has revolutionized the way manufacturers deliver goods. Other than the
traditional direct and indirect channels, manufacturers now
use marketplaces like Amazon (Amazon also provide warehouse services for
manufacturers’ products) and other intermediaries like aggregators (uber, Instacart) to
deliver the goods and services. The internet has also resulted in the removal of
unnecessary middlemen for products like software which are distributed directly over the
internet.
Factors Determining the Choice of Distribution Channels
Selection of the perfect marketing channel is tough. It is among those few strategic
decisions which either make or break your company.
Even though direct selling eliminates the intermediary expenses and gives more control
in the hands of the manufacturer, it adds up to the internal workload and raises the
fulfilment costs. Hence these four factors should be considered before deciding whether
to opt for the direct or indirect distribution channel.

Travel marketing is a type of human activity aimed at meeting the needs and
requirements of the target audience through an exchange. Let’s check out below how
tourism marketing companies (and tourism businesses) attract their audience and the
promotional ideas they use.
1. SHOWING ONLINE BANNERS
Considering internet marketing tools for the tourism industry is crucial. One of the most
effective promotional ideas tourism businesses can employ is to invest in online
advertising. Placing ad banners on certain websites, where users will be able to see your
current promotions and offers, is a great idea to get more exposure. The websites you
advertise on should be the types of sites your target audience visit. Be careful that you’re
placing your ads where your ideal customer is visiting, otherwise you could be marketing
to the wrong audience and your efforts will be in vain. You can use different sources and
sites to place banners, just use top keywords in your Google search, like ‘top hotels’,
‘travel’, ‘top destinations’, etc.
2. STARTING A BLOG OR POSTING ARTICLES
Additionally, you can start posting articles. It is beneficial to fill your site with interesting
content in the form of useful articles about tourism. This positions your company as
experts in the field and can also be great for ranking in Google searches. In addition, your
articles can also be posted on other sites that offer similar services.
3. THINKING OF SOCIAL MEDIA MARKETING
You can use SMM tools and targeted advertising for your target audience on social
networks, such as Facebook and Instagram. Reach out to SMM specialists who know
how to promote your travel channels. It is the most effective way to advertise your tours.
4. USING EMAIL NEWSLETTERS
Using email newsletters and a customer relationship management (CRM) program is a
great strategy for interacting with clients. Offer the user the option to subscribe to the
newsletter in order to regularly receive all necessary information about current offers.
5. CHECKING THE CONTEXTUAL ADVERTISING AND SEO
Contextual advertising (advertising on a page that is relevant to your business) and SEO
optimization are types of promotional activities that are aimed at end-users who use
search engines such as Google to be able to select their desired tour. With the help of
online marketing tools and a plagiarism checker, you can attract a large audience and
promote your tours.
Each of the online methods is good in its own way, and it’s worth choosing based on the
specifics of your tourism business. The main thing in this business is a professional
approach for a bright result and further development aimed at improvement.
6. USING TOURIST PROMO VIDEOS
This year, the World Tourism Organization, founded by the United Nations, selected the
most attractive tourist promo videos shot around the world. It makes sense to use such
promotional videos to inspire people. Using positive testimonials, as well as photos and
videos of your clients enjoying themselves on your tour is the best way to demonstrate
the value in what you offer.
Most of the videos selected by the World Tourism Organization show visitors enjoying
leisure activities, and everything is so beautiful in the videos. This is a great way to appeal
to your customers.

7. APPLYING OFFLINE PROMO

Business cards are crucial, especially for travel and tourism businesses. They are
extremely useful and cost-effective. With help, they can really improve the reputation of
your brand, increasing the likelihood of interest from travelers and tourists.

Postcards are a great direct marketing tool for travel agents. By sending a colorful
postcard with a wonderful landscape of a tourist destination and a small message to
potential customers, you will definitely convince them to contact you.

There is no better way to present a brief and interesting overview of the services offered
by your travel business than high-quality flyers and brochures. With brand-oriented
design, your travel brochures will resonate with your audience and generate interest in
your brand.
Activity:

1. Create a simple blog or vlog about your chosen destination. Post it on social media
platform and observe how many people will view, like and share your post. Submit the
result to the professor.
2. Choose any kind of travel marketing ads. Make a short analysis about its strengths and
weaknesses.

Definition of Terms:

1. Market Demand
2. Tourism Marketing
3. Travel Marketing
4. Distribution Channel
5. Indirect Channel
6. Zero-level Channel
7. Product level market Demand
8. Focused Approach
9. Dual Distribution
10. Promotion

Unit Exercise

Questions for review and discussion.

1. In this technological era wherein digital marketing is the new trend,do you think print
advertisement is still necessary for tourism marketing?

2. How does wrong execution of distribution channel affects the tourism product?
 3. What are the different aspects to be considered in choosing the right market for an off
beat destination in the Philippines?

Research Activity:

1. Choose a tourism destination in the Philippines . Apply the marketing mix in the
destination.

Write the 4P’s of the destination using table or chart.

REFERENCES:

https://www.marketing91.com/what-is-tourism-marketing/
https://businessjargons.com/market-demand.html
https://www.marketing91.com/market-demand/
https://www.feedough.com/distribution-channels-definition-types-functions/
https://www.tourismtiger.com/blog/7-effective-promotion-ideas-for-tourism-marketing/
UNIT 6 TOURISM PLANNING, SUSTAINABLE TOURISM & RESPONSIBLE TOURISM

Unit Objectives

1. To analyze the importance of planning in any business organization.

2. To realize the role of planning in sustainable tourism
3. To recognize the significance of responsible tourism to the future of tourism

Unit Topics:

1. Importance of policy in planning

2. Integrated planning and development
2. Tourism product characteristics
3. Stages of Planning Process
4. Sustainable Tourism
5. Responsible Tourism

Planning can be defined as “thinking in advance what is to be done, when it is to be done,

how it is to be done and by whom it should be done”. In simple words we can say, planning
bridges the gap between where we are standing today and where we want to reach.

Planning involves setting objectives and deciding in advance the appropriate course of

action to achieve these objectives so we can also define planning as setting up of

objectives and targets and formulating an action plan to achieve them.

Another important ingredient of planning is time. Plans are always developed for a fixed
time period as no business can go on planning endlessly.

Importance/Significance of Planning:
1. Planning provides Direction:

Planning is concerned with predetermined course of action. It provides the directions to

the efforts of employees. Planning makes clear what employees have to do, how to do,

etc. By stating in advance how work has to be done, planning provides direction for action.
Employees know in advance in which direction they have to work. This leads to Unity of

Direction also. If there were no planning, employees would be working in different

directions and organization would not be able to achieve its desired goal.

2. Planning Reduces the risk of uncertainties:

Organisations have to face many uncertainties and unexpected situations every day.

Planning helps the manager to face the uncertainty because planners try to foresee the

future by making some assumptions regarding future keeping in mind their past

experiences and scanning of business environments. The plans are made to overcome

such uncertainties. The plans also include unexpected risks such as fire or some other

calamities in the organisation. The resources are kept aside in the plan to meet such
uncertainties.

3. Planning reduces over lapping and wasteful activities:

The organisational plans are made keeping in mind the requirements of all the

departments. The departmental plans are derived from main organisational plan. As a

result there will be co-ordination in different departments. On the other hand, if the

managers, non-managers and all the employees are following course of action according
to plan then there will be integration in the activities. Plans ensure clarity of thoughts and
action and work can be carried out smoothly.

4. Planning Promotes innovative ideas:

Planning requires high thinking and it is an intellectual process. So, there is a great scope

of finding better ideas, better methods and procedures to perform a particular job.

Planning process forces managers to think differently and assume the future conditions.
So, it makes the managers innovative and creative.

5. Planning Facilitates Decision Making:

Planning helps the managers to take various decisions. As in planning goals are set in

advance and predictions are made for future. These predictions and goals help the
manager to take fast decisions.

6. Planning establishes standard for controlling:

Controlling means comparison between planned and actual output and if there is variation

between both then find out the reasons for such deviations and taking measures to match

the actual output with the planned. But in case there is no planned output then controlling
manager will have no base to compare whether the actual output is adequate or not.

For example, if the planned output for a week is 100 units and actual output produced by

employee is 80 units then the controlling manager must take measures to bring the 80

unit production upto 100 units but if the planned output, i.e., 100 units is not given by the

planners then finding out whether 80 unit production is sufficient or not will be difficult to
know. So, the base for comparison in controlling is given by planning function only.

7. Focuses attention on objectives of the company:

Planning function begins with the setting up of the objectives, policies, procedures,

methods and rules, etc. which are made in planning to achieve these objectives only.

When employees follow the plan they are leading towards the achievement of objectives.
Through planning, efforts of all the employees are directed towards the achievement of
organisational goals and objectives.

Planning Process:
1. Setting up of the objectives:

In planning function manager begins with setting up of objectives because all the policies,

procedures and methods are framed for achieving objectives only. The managers set up

very clearly the objectives of the company keeping in mind the goals of the company and

the physical and financial resources of the company. Managers prefer to set up goals
which can be achieved quickly and in specific limit of time. After setting up the goals, the
clearly defined goals are communicated to all the employees.

2. Developing premises:

Premises refer to making assumptions regarding future. Premises are the base on which

plans are made. It is a kind of forecast made keeping in view existing plans and any past

information about various policies. There should be total agreement on all the

assumptions. The assumptions are made on the basis of forecasting. Forecast is the

technique of gathering information. Common forecast are made to find out the demand
for a product, change in government or competitor policy, tax rate, etc.

3. Listing the various alternatives for achieving the objectives:

After setting up of objectives the managers make a list of alternatives through which the

organisation can achieve its objectives as there can be many ways to achieve the
objective and managers must know all the ways to reach the objectives.

For example, if the objective is to increase in sale by 10% then the sale can be increased:

(a) By adding more line of products;

(b) By offering discount;

(c) By increasing expenditure on advertisements;

(d) By increasing the share in the market;

(e) By appointing salesmen for door-to-door sale etc.

So, managers list out all the alternatives.

4. Evaluation of different alternatives:

After making the list of various alternatives along with the assumptions supporting them,

the manager starts evaluating each and every alternative and notes down the positive

and negative aspects of every alternative. After this the manager starts eliminating the

alternatives with more of negative aspect and the one with the maximum positive aspect

and with most feasible assumption is selected as best alternative. Alternatives are
evaluated in the light of their feasibility.

5. Selecting an alternative:

The best alternative is selected but as such there is no mathematical formula to select

the best alternative. Sometimes instead of selecting one alternative, a combination of

different alternatives can also be selected. The most ideal plan is most feasible, profitable
and with least negative consequences.

After preparing the main plan, the organisation has to make number of small plans to

support the main plan. These plans are related to performance of routine jobs in the

organisation. These are derived from the major plan. So, they are also known as

derivative plans. These plans are must for accomplishing the objective of main plan. The

common supportive plans are plans to buy equipment, plan for recruitment and selection
of employees, plan to buy raw material, etc.

6. Implement the plan:

The managers prepare or draft the main and supportive plans on paper but there is no

use of these plans unless and until these are put in action. For implementing the plans or

putting the plans into action, the managers start communicating the plans to all the

employees very clearly because the employees actually have to carry on the activities

according to specification of plans. After communicating the plan to employees and taking

their support the managers start allocating the resources according to the specification of

the plans. For example, if the plan is to increase in sale by increasing the expenditure
on advertisement, then to put it into action, the managers must allot more funds to

advertisement department, select better media, hire advertising agency, etc.

7. Follow-up:

Planning is a continuous process so the manager’s job does not get over simply by putting

the plan into action. The managers monitor the plan carefully while it is implemented. The

monitoring of plan is very important because it helps to verify whether the conditions and

predictions assumed in plan are holding true in present situation or not. If these are not
coming true then immediately changes are made in the plan.

During follow up many adjustments are made in the plan. For example, if the expenditure

planning is done keeping in mind 5% inflation rate but in present situation if the inflation

rate rises to 10% then during follow up the managers make changes in the plans
according to 10% inflation rate.

Plan:

Plan is a document that outlines how goals are going to be met. It is a specific action

proposed to help the organization achieve its objectives. There may be more than one

way and means of reaching a particular goal but with the help of logical plans, objectives
of an organization could be easily achieved.

Features/Nature/Characteristic of Planning:
1. Planning contributes to Objectives:

Planning starts with the determination of objectives. We cannot think of planning in

absence of objective. After setting up of the objectives, planning decides the methods,

procedures and steps to be taken for achievement of set objectives. Planners also help
and bring changes in the plan if things are not moving in the direction of objectives.
For example, if an organisation has the objective of manufacturing 1500 washing

machines and in one month only 80 washing machines are manufactured, then changes
are made in the plan to achieve the final objective.

2. Planning is Primary function of management:

Planning is the primary or first function to be performed by every manager. No other

function can be executed by the manager without performing planning function because
objectives are set up in planning and other functions depend on the objectives only.

3. Pervasive:

Planning is required at all levels of the management. It is not a function restricted to top
level managers only but planning is done by managers at every level. Formation of major

plan and framing of overall policies is the task of top level managers whereas

departmental managers form plan for their respective departments. And lower level

managers make plans to support the overall objectives and to carry on day to day
activities.

4. Planning is futuristic/Forward looking:

Planning always means looking ahead or planning is a futuristic function. Planning is

never done for the past. All the managers try to make predictions and assumptions for

future and these predictions are made on the basis of past experiences of the manager
and with the regular and intelligent scanning of the general environment.

5. Planning is continuous:

Planning is a never ending or continuous process because after making plans also one

has to be in touch with the changes in changing environment and in the selection of one
best way.

6. Planning involves decision making:

The planning function is needed only when different alternatives are available and we

have to select most suitable alternative. We cannot imagine planning in absence of choice

because in planning function managers evaluate various alternatives and select the most

appropriate. But if there is one alternative available then there is no requirement of

planning.

For example, to import the technology if the licence is only with STC (State Trading Co-

operation) then companies have no choice but to import the technology through STC only.

But if there is 4-5 import agencies included in this task then the planners have to evaluate

terms and conditions of all the agencies and select the most suitable from the company’s
point of view.

7. Planning is a mental exercise:

It is mental exercise. Planning is a mental process which requires higher thinking that is

why it is kept separate from operational activities by Taylor. In planning assumptions and

predictions regarding future are made by scanning the environment properly. This activity

requires higher level of intelligence. Secondly, in planning various alternatives are

evaluated and the most suitable is selected which again requires higher level of
intelligence. So, it is right to call planning an intellectual process.
External Limitations of Planning:
Sometimes planning fails due to following limitations on which managers have no control.

(i) Natural calamity:

Natural calamities such as flood, earthquake, famine etc. may result in failure of plan.

(ii) Change in competitors’ policies:

Sometimes plan may fail due to better policies, product and strategy of competitor which
was not expected by manager.

(iii) Change in taste/fashion and trend in the market:

Sometimes plans may fail when the taste/fashion or trend in market goes against the
expectation of planners.
(iv) Change in technologies:

The introduction of new technologies may also lead to failure of plans for products using
old technology.

(v) Change in government/economic policy:

Managers have no control over government decisions. If government economic or

industrial policies are not framed as expected by manager then also plans may fail.

Limitations of Planning:
1. Planning leads to rigidity:

Once plans are made to decide the future course of action the manager may not be in a

position to change them. Following predefined plan when circumstances are changed

may not bring positive results for organisation. This kind of rigidity in plan may create
difficulty.

2. Planning may not work in dynamic environment:

Business environment is very dynamic as there are continuously changes taking place in

economic, political and legal environment. It becomes very difficult to forecast these future
changes. Plans may fail if the changes are very frequent.

The environment consists of number of segments and it becomes very difficult for a

manager to assess future changes in the environment. For example there may be change

in economic policy, change in fashion and trend or change in competitor’s policy. A

manager cannot foresee these changes accurately and plan may fail if many such
changes take place in environment.

3. It reduces creativity:

With the planning the managers of the organisation start working rigidly and they become

the blind followers of the plan only. The managers do not take any initiative to make

changes in the plan according to the changes prevailing in the business environment.
They stop giving suggestions and new ideas to bring improvement in working because
the guidelines for working are given in planning only.

4. Planning involves huge Cost:

Planning process involves lot of cost because it is an intellectual process and companies

need to hire the professional experts to carry on this process. Along with the salary of

these experts the company has to spend lot of time and money to collect accurate facts

and figures. So, it is a cost-consuming process. If the benefits of planning are not more
than its cost then it should not be carried on.

5. It is a time consuming process:

Planning process is a time-consuming process because it takes long time to evaluate the

alternatives and select the best one. Lot of time is needed in developing planning

premises. So, because of this, the action gets delayed. And whenever there is a need for
prompt and immediate decision then we have to avoid planning.

6.Planning does not guarantee success:

Sometimes managers have false sense of security that plans have worked

successfully in past so these will be working in future also. There is a tendency in

managers to rely on pretested plans.

It is not true that if a plan has worked successfully in past, it will bring success in
future also as there are so many unknown factors which may lead to failure of plan

in future. Planning only provides a base for analysing future. It is not a solution for
future course of action.

7. Lack of accuracy:

In planning we are always thinking in advance and planning is concerned with future only

and future is always uncertain. In planning many assumptions are made to decide about
future course of action. But these assumptions are not 100% accurate and if these

assumptions do not hold true in present situation or in future condition then whole
planning will fail.

For example, if in the plan it is assumed that there will be 5% inflation rate and in future

condition the inflation rate becomes 10% then the whole plan will fail and many
adjustments will be required to be made.

SUSTAINABLE TOURISM

Sustainable tourism is the form of tourism that meets the needs of tourists, the
tourism industry, and host communities today without compromising the ability
of future generations to meet their own needs.
According to The World Tourism Organization (WTO), sustainable tourism should:

1) Make optimal use of environmental resources that constitute a key element in tourism
development, maintaining essential ecological processes and helping to conserve
natural heritage and biodiversity.

2) Respect the socio-cultural authenticity of host communities, conserve their built and
living cultural heritage and traditional values, and contribute to inter-cultural
understanding and tolerance.

3) Ensure viable, long-term economic operations, providing socio-economic benefits to

all stakeholders that are fairly distributed including stable employment and income-
earning opportunities and social services to host communities, and contributing to
poverty alleviation.

The World Tourism Organization defines sustainable tourism in the following manner:
“Sustainable tourism development meets the needs of present tourists and host regions
while protecting and enhancing opportunities for the future. It is envisaged as leading to
management of all resources in such a way that economic, social and aesthetic needs
can be fulfilled while maintaining cultural integrity, essential ecological processes,
biological diversity, and life support systems.”

Three Dimensions of Sustainable Tourism

Tourism has environmental, economic and social impacts. Sustainable tourism is about
maximizing the impacts which are positive and minimizing the negative ones.
It seems that the environmental impacts are negative, the economic effects positive,
and the social impacts a combination of both. However, it is also important to recognize
that there are clear links between the three aspects of tourism – the environmental,
economic, and social dimensions – and these are belowThree dimensions of
sustainable tourism are:

 Environmental
 Economic
 Social

RESPONSIBLE TOURISM

According to the norms and standards for Responsible Tourism, Responsible Tourism is
defined as a tourism management strategy in which the tourism sector and tourists take
responsibility to protect and conserve the natural environment, respect and conserve local
cultures and ways of life, and contribute to stronger local economies and a better quality
of life for local people.
Responsible Tourism is not the same thing as sustainable tourism. Sustainability is the
goal, a goal which can only be achieved by people taking responsibility, together with
others, to achieve it. Responsible Tourism is about taking responsibility for making
tourism sustainable, it is about what people do to address the many specific challenges
we face.

Responsible Tourism is about “making better places for people to live in and better places
for people to visit.” Responsible Tourism requires that operators, hoteliers, governments,
local people and tourists take responsibility, take action to make tourism more
sustainable.

Responsible Tourism is about using tourism to make better places for people to live in
and better places for people to visit, in that order. It is different from sustainable tourism
in that it focuses on what people, businesses and governments do to maximize the
positive economic, social and environmental impacts of tourism. It is about identifying the
important issues locally and addressing those, transparently reporting progress towards
using tourism for sustainable development.

Responsible Tourism is evidence based, recognition and criticism have to be based on

evidence.

ACTIVITY:

CASE STUDY: MAKE A CASE ANALYSIS ABOUT THE DESTINATIONS.WRITE A ONE

PAGE REACTION ABOUT THE SUSTAINABLE TOURISM OF BALI, INDONESIA.

Bali– The island of Bali developed a plan of action for sustainable tourism in 2005.
Many efforts have been noted, however there is no conclusive documentation on
implementation and some issues are still of concern.
Vietnam’s green map

This ecotourism initiative represents national parks, nature

reserves and proposed protected areas spread over mountains, lowland forests,
wetlands, islands, coral reefs and 3,440 km of coastline. Locked within these natural
pockets is an endemic and indigenous biodiversity that makes Vietnam a truly special
country. An estimated 12,000 species of vascular flora occur in Vietnam. The
organisation’s goal for the ecotourism map is for international tourists to take note of
Vietnam’s spectacular natural composition, whilst being responsible, respectful and
considerate of local communities. By engaging local people through the use of guides,
home- stays and various modes of transportation, it is hoped that tourism will serve to
increase local communities’ awareness of their natural environment whilst providing them
with alternative sources of income. All sale proceeds from the map go directly to support
Vietnamese primate conservation.

Unit Exercise

Questions for review and discussion :

1. Describe the planning process. How can this process be relevant to the
sustainable tourism?

2. What is the difference between sustainable tourism and responsible tourism?

 3. What are the limitations of planning a tour?how can you prevent this from
happening?

Definition of Terms.

1. Planning
2. Sustainable Tourism
3. Responsible Tourism
4. Environmental Conservation
5. Social Equity

Research Activity:

Watch the video.Make a one page reaction paper for this video.

Responsible Travel Presents: Croatia

https://www.responsibletravel.com/holidays/croatia
REFERENCES:

https://www.yourarticlelibrary.com/organization/importance-of-planning-its-features-
limitations-process-and-types/8652
https://tourismnotes.com/sustainable-tourism/
w https://haroldgoodwin.info/responsible-tourism/
ww.tourism.gov.za/CurrentProjects/ResponsibleTourism/.
https://sustainabletourism.net/case-studies/austrailianz/asia/
MODULE 8 EMPLOYMENT OPPORTUNITIES AND QUALIFICATION FOR THE JOBS

Unit Objectives:

1. To explore the career opportunities for tourism and hospitality

2. To describe the qualifications and requirements to enter a career in the hospitality and
tourism

Unit Topics:

1.Employment Opportunities of Tourism and Hospitality

2 .Qualification for the Jobs

Airlines

The airlines are a major travel industry employer, offering a host of jobs at many
levels, ranging from entry level to top management, including reservation agents, flight
attendants, pilots, flight engineers, aircraft mechanics, maintenance staff, baggage
handlers, airline food service jobs, sales representatives, sales jobs, computer
specialists, training staff, office jobs, clerical positions, ticket agents, and research jobs.

Bus Companies
Bus companies require management personnel, ticket agents, sales representatives,
tour representatives, hostesses, information clerks, clerical positions, bus drivers,
personnel people, and training employees.

Cruise Companies
The cruise industry is the fastest - growing segment of the tourism industry today. Job
opportunities include those for sales representatives, clerical workers, market
researchers, recreation directors, and CEOs. Because of their similarity in operations,
the cruise industry has many of the same jobs as the lodging industry.

Railroads
Railroads hire managers, passenger service representatives, traffic analysts, marketing
managers, sales representatives, reservations clerks, information specialists,
conductors, engineers, coach and lounge car attendants, and station agents.

Rental Car Companies

With increased pleasure air travel and the growth of fly/drive programs, rental car
companies are becoming an ever more important segment of the travel industry. This
sector of tourism employs reservation agents, rental sales agents, clerks of various
kinds, service agents, mechanics, and district and regional managers.
Hotels, Motels, and Resorts
The range of jobs in hotels and motels is extremely broad. The following list is
representative: regional manager, general manager, resident manager, comptroller,
accountants, management trainees, director of sales, director of convention sales,
director of personnel, director of research, mail clerks, room clerks, reservation clerks,
front - office manager, housekeepers, superintendent of service, bellhops, lobby porters,
doormen, maids, chefs, cooks, kitchen helpers, storeroom employees, dishwashers,
waiters, bartenders, apprentice waiters, heating and air - conditioning personnel,
maintenance workers, engineers, electricians, plumbers, carpenters, painters, and
laundry workers.

Tour Companies
Tour companies offer employment opportunities in such positions as tour manager or
escort, tour coordinator, tour planner, publicist, reservations specialist, accountant,
sales representative, group tour specialist, incentive tour coordinator, costing specialist,
hotel coordinator, office supervisor, and managerial positions.

Food Service
Many job opportunities are available in the rapidly growing food service industry, such
as headwaiters, captains, waiters and waitresses, bus persons, chefs, cooks,
bartenders, restaurant managers, assistant managers, personnel directors, dieticians,
menu planners, cashiers, food service supervisors, purchasing agents, butchers,
beverage workers, hostesses, kitchen helpers, and dishwashers.

Tourism Education
There are job opportunities for administrators, teachers, professors, researchers, and
support staff.

Tourism Research
Research jobs are available in national tourism offices, state/provincial travel offices,
and private firms.

Recreation and Leisure

Jobs in recreation and leisure are enormous. Some examples are activity director,
aquatics specialist, ski instructor, park ranger, naturalist, museum guide, handicapped
program planner, forester, camping director, concert promoter, lifeguards, tennis and
golf instructors, coaches for various athletic teams, and drama directors.

Convention and Visitors Bureaus and Destination

Management Organizations, Convention and visitors bureaus, require CEOs,
managers, assistant managers, research directors, information specialists, marketing
managers, public relations staff, sales personnel, secretaries, and clerks.
Source: Rahim Jamaddar
Department of Tourism and Hospitality Management
Islamic University, Bangladesh

JOB REQUIREMENTS FOR TOURISM AND HOSPITALITY

Travel
agents Food service
assist managers direct the
individuals daily operations of
and groups Lodging managers restaurants and other
of travelers oversee the operation establishments that
Career in planning of hotels, motels and serve food and
Overview trips. inns. beverages.
No formal Large facilities Experience is often
education generally require a valued over
required, bachelor's degree education, though
but courses while smaller hotels more restaurant
and may accept a chains are hiring
Education degrees are certificate or an candidates with
Requirements available. associate's degree. bachelor's degrees.
Program Four years full-time for
Length N/A a bachelor's degree. N/A
None required, but
None required, but certification is
certifications are available through the
Some available through the National Restaurant
states American Hotel & Association
Certification require Lodging Educational Educational
and Licensing licensing. Institute (EI). Foundation.
Several years of
experience or a
combination of
Experience None; entry education and Some experience
Requirement level experience required
 Declining
growth (-
12%)
compared
to all Little to no growth Little to no growth
Job Outlook occupations (1%) compared to all (2%) compared to all
for 2012-22 * occupations * occupations*

Source: *U.S. Bureau of Labor Statistics

Travel Agent
Travel agents help individuals and groups who are traveling for business or leisure.
They arrange transportation and lodging, follow travel budgets and make suggestions
about destinations, attractions and requirements. Travel agents spend most of their time
working from call centers or offices, although you may visit locations to find
recommendations. Some travel agents have expertise in a certain location or
demographic, such as travel for senior citizens or cruise line booking.

Requirements
Entry-level travel agent positions usually require a high school diploma. However,
associate's degree and certificate programs are offered at many schools. Bachelor's
degree programs in hospitality might also appeal to you if you want to become a travel
agent. Nearly all positions require some degree of on-the-job training.

Lodging Manager
Lodging managers work at hotels, resorts, inns and other properties. They oversee
operations to ensure that facilities are running efficiently and visitors' needs are met.
Typical duties include greeting guests, managing finances, overseeing staff members
and ensuring that rooms and pubic areas are clean and meet the standards of visitors.
You may work nights and weekends in this career, since lodging facilities are open 24
hours. Many lodging managers begin their careers at small hotels and progress to
larger facilities or markets.

Requirements
Educational and experience requirements for lodging managers vary by facility. You
may qualify for an entry-level position with a high school diploma and some experience
in the industry. Large hotel chains and resorts generally require applicants to have a
bachelor's degree. Programs in hospitality and hotel management are offered at many
colleges and universities. Coursework in this field generally covers industry-specific
computer training, management, accounting and marketing. Facilities that offer fewer
services may hire applicants with associate's degrees or certificates.

Food Service Manager

Food service managers work in restaurants, catering companies, cafeterias and other
establishments that provide food and beverages. They oversee staff and daily
operations, manage finances and enforce standards in the kitchen and dining areas.
Food service managers often work long hours and are generally expected to work
during the typical lunch and dinner hours.

Requirements
Food service managers generally do not need postsecondary education. Experience
gained through lower-level industry positions can provide enough preparation to move
up the industry job chain. For example, starting out as a waiter or cook can prepare you
to step into management positions. However, bachelor's degree programs in hospitality
or food service management are available. On-the-job training is also needed.

Activity:

1. Conduct an interview to 3 persons who are working at tourism and hospitality

industries.Cite their experiences on the process of application and their
experiences as workers.

Unit Exercise

Questions for review and discussion:

1. What are the employment opportunities for tourism?

2. What are the requirements in applying for any job at cruise industry?
3. Do you think health is also important in applying a job as Chef?why?

Research Activity:

Watch this video and make a reaction paper.

http://bit.ly/CareerJobsOpportunity

REFERENCES:

https://learningpath.org/articles/Hospitality_Tourism_Careers_Salary_Info_Job_Desc
ription.html