School of Tourism and Hospitality Management

CSTC COLLEGE OF SCIENCES TECHNOLOGY AND
COMMUNICATION, INC.
CSTC College Bldg. Gen. Luna St. Maharlika Hi-way, Pob. 3, Arellano Sub. Sariaya Province of
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Registrar’s Office: 042 3290850 / 042 7192818
CSTC IT Center: 042 7192805
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SCHOOL OF TOURISM AND HOSPITALITY MANAGEMENT
Instructional Module in
Micro Perspective of Tourism and Hospitality
Preliminaries
I. Lesson Number 1
II. Lesson Title TRANSPORTATION SECTOR
III. Brief Introduction The improvement in transportation encouraged the
of the Lesson
desire to travel. The developments in transportation had a very
powerful effect on tourism. They have made the world a much
smaller place. At present, fast and efficient means of transportation
can bring travelers to any place in the world.
IV. Lesson Objectives At the end of the lesson, the students should be able to :
1. Trace the evolution of transportation and travel
2. Discuss the historical development of transport system
3. Explain the selection of transport mode
4. Discuss the role of international rail transportation
5. Identify the reasons for the growth and decline of ship
travel
6. Explain the importance and the scope of the bus/motor
coach industry.
7. Describe the impact of private car ownership on the
tourism industry.
8. Enumerate the dynamics of the worldwide car rental
industry; and
9. Discuss the role of the airline industry in the
development of tourism.
Lesson Proper
I. Getting Started
 Refer to LMS
II. Discussion
Pre-Industrial Travel System Era
This was the period before the widespread industrialization in

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Europe and North America. It was before the development of railways in the two continents. There were
few common carriers. There were almost no regularly scheduled transportation services. There was a little
travel. Travelers made their own arrangements with the suppliers. It was an era of the stagecoach and the
wayside inn. Only few people had the money and the reason to travel .
Early-Industrial Travel System Era
During the era, road improvements such as railways, canals, and steamships services were
brought about due to rapid industrialization and advances in transportation technology. Common carriers
came in existence and began to offer regular scheduled transportation service. Travel increased because
more people had
money to travel.
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Mature-Railway System Era
This era was characterized by railways which expanded

their operations by running hotels
and providing other travel-related services. The railways began to
market their services more aggressively. Travel agencies and tour
companies were formed. Thomas Cook, an innovator in this field
during this era, began his company’s activities in the United
Kingdom in 1840. More people traveled in this era than in the
previous one.
Express-Travel System Era
During this era, express service increased. Trains and other forms of transportation did
not
stop at every station or terminal but only at the major ones. This increased the speed of travel
and encouraged more travels than before.
Automobile-Based Travel System Era
This influence of the privately owned automobile was enhanced in North America and
Europe from the 1920s onwards. Car ownership boomed in North America. Motorways,
interstate highways, and other trunk highways were developed in the latter half of this era which
was from 1920 to 1974. The automobile was predominant over other travel modes from 1920s
to 1945.
Modern-Tourism Travel System Era
The period from 1945 to 1974 is known as the modern-tourism travel system era. Car
ownership continued to grow at a fast rate, mainly at the expense of long-distance rail travel.
Mass air travel was another post-World War II occurrence. The introduction of wide-bodied jets
in 1970 greatly increased air travel. The “mass tourism” philosophy and marketing approaches
were prevalent during the 1950s and 1960s.
Post-Mobility Adjustment Era
This era began in 1973 to 1974 as a result of the oil embargo generated by the
Organization of
Petroleum Exporting Countries (OPEC) and the resulting increase in fuel prices. The events of the
energy crisis basically changed the travel patterns throughout that world. The present era is one
in which travelers continue to look to alternative, group-oriented modes of transportation.
Historical Development of the Transport System
The desire to travel is stimulated with the improvement in transportation. Before World
War
I, it took seven days for travelers to go from coast to coast by steam locomotive. By 1950,
travelers could compete the journey in two and half days by train. By 1938, an airplane with the
speed of 400 miles an hour made possible nonstop coast-to-coast flights of less than eight hours.
In 1950, travel time from coast to coast was lessened to four hours. At present, the Concorde can
make a flight in two and half hours.
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Year Mode of Transport Speed

(mile per hour)
6000 BC Camel Caravan 8
1600 BC Chariot 20
AD 1784 First English mail coach 10
1825 First steam locomotive 13
1890 Improved steam locomotive 100
1931 Land speed record
(Bluebird: Sir Malcolm Campbell) 350
1938 Lans Speed record
(Napier-Railton car: John Cobb
1938 Piston aircraft 400
1952 United States Liner from New York to Le 41
Harve
1958 Jet fighter aircraft 1,300
1958 Boeing 707 and DC-8 aircraft 600
1961 Spaceship (Vostok 1 orbiting) 17,560
1967 Rocket plane 4,534
1970 Fighter bomber (Mirage IV) 1,320
1970 Boeing 747 626
The development of transportation has made the world a smaller place. It is now possible
to
take one to two weeks pf vacation in distant places like Europe, the United States, the Caribbean,
Mexico, and South America. Now, travelers can go to any places in the world due to fast and
efficient means of transportation.
Selection of Transportation Mode
There are many reasons why people select one transportation mode over another for
their
business and pleasure trips. The most common reasons are: cost, traveling time, safety,
convenience, comfort, availability, frequency of trips, ground services, terminal facilities and
locations, status and prestige, and departure and arrival times. People belonging to different
segments have different value perceptions. For example, the time spent in traveling as well as
departure and arrival times are very important to the business traveler while the cost of the trips
is the traveler’s primary consideration.
Jagdish Sheth developed a theory identifying transportation variables and the value of
travelers. He found out that travelers choose a travel mode based on how they psychologically
weigh the five factors, namely:
 Functional. The functional utility of a mode is its expected performance for the specific
purpose. Examples are, departure and arrival times, safety record, the directness of teh
trip, and the number of stops or transfers
 aesthetic/emotional. Aesthetic/emotional is related to such aspects as fear, social
concerns, style, luxury, comfort, and other personal feelings that the form of
transportation might evoke
 social/organizational. Social/organizational shows that the frequent users of certain
kinds of transportation are stereotype according to sex, racial origin, income, price/cost,
and education. For example, those who take the bus tours and cruises are generally
retired people
 situational. Situational refers to how conveniently located the particular mode of
transportation and its terminal facilities are for the traveler
 curiosity. Curiosity utility refers to the traveler’s perceived need to do something new
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and different. Flying transatlantic on Concorde may have a high curiosity value for many
business travelers.
Travel by Train
Trains stimulated travel within the United States, Canada, and Europe in the 19th and
early
20th centuries. Britain had its first organized train tour in 1841 when Thomas Cook organized an
excursion between the Leicester and Loughborough. In 1851, three million Englishmen boarded
the train to see the Great Exhibition in London. The train was instrumental in stimulating the
development of many seaside resorts in Britain.
The first transcontinental route in the United States was completed in 1869. With the
advent
of the steam locomotive in 1825 until the WWII, travel by train became the primary means of
movement within the United States. During the latter part of the 1800s and the first part of the
1900s, the train connected major population centers and popular spas and resorts such as the
Niagara Falls, Long Beach, Saratoga, New Jersey, and Las Vegas. This dependence on the train is
shown in the development of Las Vegas where large hotels were located downtown, a short
distance from the railroad station. This gave tourists who arrived by train quick and easy access
to hotels and casinos.
In 1863, long-distance rail travel boosted when George M. Pullman built the Pullman
coach, a
luxury first-class sleeping and dining facility. In 1868, the diner car was introduced on the
Chicago and Alton line. Ten years later, an elaborate meal could be obtained in all trains`
The popularity of the trains lasted only for a brief period after WWII when the
automobile
began to gain more popularity as a passenger transportation mode. US railroads carried 77% of
the nation’s passenger traffic. By 1950, with the rapid growth of private automobile ownership
and usage, passenger traffic declined to 46%. In an effort to save the railroad industry, the Rail
Passenger Service Act became a law in October 1970. The act created the National Railroad
Passenger Corporation, now commonly known as Amtrak, which began its operations in May
1971 and was intended to be a profit-making corporation. Canada’s equivalent of Amtrak is VIA
Rail Canada, which was created in 1977.
Both Amtrak and VIA Rail have the national responsibility of providing intercity
passenger
rail transportation. Since their establishment, both organizations have been successful in
increasing passenger volumes. They have done so by improving the equipment and services they
offer and by promoting the benefits of traveling by train more effectively.
Several attempts have been made to determine why travelers select the train as a
transportation mode. Four evident factors are:
 Cost/price
 Comfort
 Safety
 Ability to see the area where the train is passing.
VIA Rails onboard surveys of business travelers have identified user cost, convenience, travel
time, and comfort as of primary importance.
A survey of Amtrak passengers showed that travelers favored the train for the following
reasons:
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 Safety
 Ability to look out of the train and see the interesting things en route
 Ability to get up and walk around
 Arriving at the destination rested and relaxed
 Personal comfort
The negative factors of rail travelers are:

 slowness in reaching the destination,
 inflexible departure times, and
 lack of quality in food services.
Promotion by Amtrak and VIA Rail have emphasized the rest and relaxation benefits of
taking the train. They have also pointed out that the downtown-to-downtown routing of trains
saves the time of the passengers.
Train travel has continued in Europe and Asia more than in the United States, particularly
for
long-distance travel. The Euro City network, formerly the Trans Europe Express (TEE)
network, as well as other national lines provided excellent rail services between major cities in
10 countries. The system is being improved. In 1987, the TEE had been replaced by a new system
which includes high-speed trains, with both first-and second-class accommodations. Travel
within Europe would be further improved with the development and construction of the
Eurotunnel between England and the continent. The tunnel would create the single biggest
unified rail network in the world and reduce travel time between England and other European
countries by two hours. Europeans believed that the train was a more efficient form of
transportation from city center to city center on trips up to 300 miles. Like Amtrak, most of the
better railroads of the world were subsidized by the government.
Although the importance of rail travel was reduced due to the popularity of the
automobile
and airplane in many countries, railroads had been working hard to improve their facilities to
accommodate super trains with speeds between 150 to 250 miles per hour. The first sensational
rail accomplishment after WWII was Japan’s shinkansen or bullet trains which travel at speeds
greater than 140 miles per hour. The bullet trains run north and south and link major
metropolitan areas. These began operations in 1964 in time for the Olympics in Japan. The make
the run of 550 miles in three hours and 10 minutes from the former time of 18 hours. They
provide a ride so smooth that a passenger can leave a cup of tea or coffee on a windowsill and not
a drop will spill. A computerized control center feed information to a lighted board that shows
the location of every train and the conditions of the track, switched, and wires. Station stops are
short as two minutes at intermediate stations, so travelers must be ready to move fast. The
computer automatically stops the train in case of trouble, especially during an earthquake. At
present, Japan has the best railroad system in the world, with 26,000 fast and efficient trains
scheduled a day. Japan has plans for trains which travel at speeds of 300 miles per hour. The
Japanese rail system is heavily subsidized by the government.
France has its own super train, the Tres Grande Vitesse which travels at a speed of 175
miles per hour between Paris and Lyons and Marseilles.
In Russia, the Trans-Siberian Railroad, the longest in the world (5,787 miles) links
outlying
Siberian industrial regions and mining centers with European Russia. Railroads are important to
the Russian economy. The Germans have a test track designed to carry passengers at a speed of
130 to 240n miles.
The Grande Vitesse
The popularity of the train system in Europe has increased, not only because of its
quality and efficiency, but because of the use of the Eurailpass. In 1939, a number of
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European countries introduced the Eurailpass which allowed a traveler to use it for two
months of unlimited second-class travel on any of the rail systems of the European
countries. Later, it included unlimited first-class service over different periods varying
from 15 days, 21 days, one month, and three months with access to many ferries and
steamer routes. They also introduce the students Eurailpass for a second-class travel. It is
less expensive than the Eurailpass and is good only in 16 countries.
TRAVEL BY SHIP
Travel by ship preceded travel by train but it was not until the middle of the 19th century
that travel by ocean began to become prominent. Ocean liners were used to provide an
important link to passengers among continents. At present, water transport has two major roles
in travel and tourism-ferrying and cruising.
The steamship era began in 1840 when Sir Samuel Cunard pioneered the first
transatlantic-
scheduled liner trips. However, the introduction of the jet aircraft led to the rapid decline in the
ships as scheduled passenger transportation mode. In the late 1990s, the era was too old or too
large were junked or scrapped. Others that had historical value were converted into tourists’
attractions. For example, the Queen Mary which is permanently docked in Long Beach, California
became a tourist attraction and a hotel.
Cruises are more of a vacation experience than a transportation mode. The romance of
cruising had been strongly promoted and was aided very much by the popular television
program, Love Boat. Cruises are divided into three types depending on the duration of the trips.
Short cruises are one week or less, intermediate long cruises last one to four weeks, and
long cruises go around the world and take one to three months.
Cruise Ship
Short-duration cruises are more popular because they require less vacation time
and
are less expensive. Other reasons are travelers can satisfy their desire to experience new
environments and see new cultures and still bring with them the comfort, safety, and
convenience of home. In addition, there is no changing of hotels, airports, and food and
beds which may cause sleeplessness and other problems. Examples of short cruises are the
three-night cruises from Los Angeles to Mexico and cruises on the St. Lawrence River on
vessels such as the Canadian Empress
Cruise ships may be divided into large vessels which can accommodate 180
or
more passengers and small vessels which can carry less than 100 passengers. They
are called “mini-cruises” or “ultra-yachts”. At present, the trend is toward large vessels.
Recently, the typical ship was built to carry 850 to 1250 passengers but now, the average
capacity of a new ship is 2,000 passengers. The large cruise ships offer a wide array of
services and amenities to guests, most of which are packed into the cruise.
Accommodations on board vary from rooms for three to four persons to lavish
staterooms. The rooms are air-conditioned and have private baths.
A cruise ship is both a floating hotel and resort because the guests are housed, fed,
and entertained. Food is offered throughout the day from seven-course meals to themed-
event dinners. Cruise ships also provide almost continuous entertainment which include
charm classes, language lessons, dance classes, bridge, table tennis, aerobics, jogging, and
shuffleboard. Many ships now have fully-equipped gyms, health spas, and an athletic
counselor. Cruise directors plans activities and entertainment for the passengers which
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may be full scale musical productions, live entertainment with well-known performers,
discos, bingo, gambling, courses in self-improvement, and the like. For many passengers,
the numerous opportunities to socialize on a cruise vacation is one of its major
attractions. Passengers who prefer a less active type of vacation can relax by the pool or
on deck and enjoy the warm climate and beautiful sunsets. Cruise enthusiasts prefer this
type of vacation because it combines fresh air, plenty of good food, a variety of activities,
and visits to exotic places.
Cruises are promoted and sold on the basis of health, recreation, and pleasure.
Theme
cruises are popular such as culinary cruises, historic voyages to less-known places, stock
market seminars, movie festivals, as well as cruises devoted to art, golf, astrology, tennis,
photography, and beauty counseling.
The United States dominates the international cruise market by supplying more
than
70% of total passengers followed by Europe with 17%. Estimates of the total dollar
income of the cruise industry are difficult to obtain because income is earned from
various sources including the scale of births, gambling, bars, shops, and miscellaneous
services. Cruise lines have also lucrative market in the United Kingdom, West Germany,
and Australia. In Europe, Russian sail from ports in Italy, the United Kingdom, and
Holland. They offer lower rates and good services.
The cruise industry is largely owned by European companies which are located in
Denmark, Norway, Holland, Italy, Germany, Great Britain, and Greece. Although, the
cruise ship industry is not a US industry in terms of ownership, several United States and
American territory cities serve as major ports of cruise ships. The top ports are Miami,
New York, San Juan, Port Everglades, Los Angeles, San Francisco, Seattle, and New
Orleans.
The Caribbean is the world’s largest cruise destination Cruise passengers for
destinations within the Caribbean comprise 50% of total visitor arrivals. Other, major
cruise destinations include Mediterranean, Scandinavian, Alaska, and the Pacific. Cruises
are announced several months before the departure and are also sold mostly by travel
agents as packages. The fly cruise package has grown in popularity because it combines
the speed and efficiency of jet travel with the relaxing, romantic attribute of cruise ships.
One significant marketing strategy used by the cruise industry is to offer heavily
discounted or free air flights to the port of embarkation. As an added convenience for
cruise passengers, some cruise line agents greet passengers at the airport and then
transport them to the ship’s pier. In order to attract more families, other cruise lines have
begun to provide children’s activities and offer lower rates for a third and fourth
passenger in a cabin. Several cruise lines have also designed cruise packages which cater
to the single segment and those interested in health and fitness.
Younger people prefer the three-to-seven-day cruises. Older people take cruises
of
seven days or less. The elderly usually joins the round the world cruise. Cruise passengers
tend to be repeat customers. Once they experience a cruise, they begin planning the next.
Like destination resorts, cruise lines have successfully developed their own loyal repeat
clienteles with an average of 30 to 40% of the total passenger volumes.
Another role of the ship travel and tourism is ferrying or the use of ferry boats.
These
are used in the English Channel, the Irish Sea, the Hebridean Islands of Scotland, the
North Sea, the Maritime provinces and British Columbian coast in Canada, and on the
Great Lakes. Short-duration sightseeing cruise ship attractions are abundant in North
America. These cruises last one day or even a shorter length of time. Example of these are
steamer and riverboat cruises in the Mississippi River and Thousand Islands (New York,
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Ontario). The appeals of steamer sightseeing cruise are seeing the scenic beauty of the
area, learning about the history of the surrounding area, and using its dining/bar service.
The demand for cruising is expected to increase. Only a small part of the North
American population has taken a cruise. Market research shows that there are 24 million
potential passengers with sufficient time and money. In addition, satisfaction level is high
for cruise passengers which would result in a high percentage of repeat cruise goers.
Foreign markets should also be seen as big potential markets. Europe, Japan, and Latin
America, particularly Venezuela and Brazil, are good potential markets. Overcapacity is
the mor problem for the industry at present. However, the growing incentive-travel
cruise market, which now accounts for approximately 15% of all births, is expected to
help overcome the effects of overcapacity
Travel by Automobile
The real inventor of the automobile was Carl Benz of Mannheim, Germany. In 1885 to
1886,
he combined the bicycle and the international combustion engine and designed the complete
vehicle engine consisting of the engine, chassis, and transmission. Then came Henry Ford, who in
1908, produced his Model T car built with an assembly technique for mass production. The price
of the Model T car decreased from $825 in 1908 to $260 in 1925. The automobile industry grew
rapidly. However, it was only after the WWII that the popularity of the automobile increased
significantly.
The introduction of the automobile brought about the decline of the train’s popularity in
most developed countries. The advent of the automobile spread the benefits of tourism more
widely and enabled people to travel individually or in private smaller groups. The automobile
brought about more random pattern of travel movements, opened new destinations, and
hastened the development of elaborate networks of automobile-oriented facilities and services
along highways and roads. Example of new facility types that developed in the United States and
Canada after WWII were the tourist court and the motor hotel or motel.
Traveling by automobile is now the chief travel mode in North America. Many travel
surveys
have shown that automobile trips comprise 90% or more of the pleasure/personal and business
trips of Canadians and Americans. Surveys show that the automobile is the most popular mode of
vacation travel because it provides travelers greater freedom in the choice of route, destination,
and timing of the journey. Family auto travel is also the most inexpensive and convenient form of
travel in the US.
The growth of car ownership necessitated road improvements. The US federal

government
participated in the construction and maintenance of roads when it passed an act in 1916,
matching state appropriations for new roads, dollar to dollar. It was climaxed by the interstate
act in 1949 which allowed travelers to move coast to coast and border to border without a traffic
light or stop sign. The first turnpike was built in Pennsylvania in 1940. In 1954, the federal
government, in order to encourage road construction, increased its share of the highway
construction to 90%. During the 1930’s the Germans constructed their network of autobahn.
These four-lane divided highways were the world’s first high-speed roads.
The automobile stimulated tourism by creating attractions along tourist routes made
accessible by the automobile. Examples are homes of historical figures, scenic areas, and historic
shrines and monuments.
Two important aspects of automobile travel are recreational vehicles and car rentals.
These two areas have developed so extensively in North America and elsewhere that they area
now significant elements of tourism. The recreation vehicle or RV was an extension of the
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preference of North America for the automobile. Ownership of RV has increased since 1979. A
survey conducted by the Research Center of the University of Michigan indicated that
approximately 906,000 Canadians and 6 million US households owned one or more RV in 1980.
Since WWII, camping has become popular in the North America and elsewhere. The US
has
more than 14,000 public and private parks and commercial grounds containing approximately
one million campsites. The increasing popularity of the RV led to the establishment of new
campgrounds during the 1970s, including the franchised condominium and time-sharing
condominium campgrounds. Many European visitors to Canada and the US rented these vehicles
for cross-continent trips. Many companies have been formed to provide this service to overseas
pleasure travelers.
Related to the growth of the automobile has been the growth of the car rental market in
the
1960s and 1970s. The car rental industry began in 1918 when a Chicago Ford dealer started to
rent secondhand model Ts. In 1924, the company was bought by John D. Hertz, the founder of the
Yellow Cab Company. Avis, the biggest competitor of Hertz, was founded in 1946 by a retired
US Air Force officer, Warren E. Avis. Initially, Avis specialized in airport rental locations. In 1948,
Avis started downtown rental locations. It was during the same period that National Car Rental
was organized. By the late 1950s, car rental companies were found in all major airports.
The car rental business is a worldwide industry. Four companies dominate the US market
with 85% market share. These are Hertz, Avis, Budget, and National. These four companies
also represent the “Big 4” within the international market. The Big 4 rental firms continue to be
challenged in the US and abroad by companies like Alamo, Dollar, Thrifty, and General.
Another group of car rental companies consists of firms that rent used cars at lower prices.
Examples are Rent-a-Wreck, Ugly Duckling, and Rent-a-Dent. The car rental industry over the past
20 years us highly competitive. Individual companies claim to be the first in various innovations
such as rent-it-here, leave-it-here service. Each company, though its advertising, claims to be
the first or the best in providing new service.
The growth of the industry in the late 1960s and early 1970s can be attributed to the
introduction of the fly/drive concept. It encouraged travelers not to drive their personal car to
their destination but to travel by plane and rent a car on arrival. The fly/drive concept became
very popular in the Florida market, the birthplace of many new car rental companies. The highest
utilization of rental cars takes place on Mondays to Fridays usually by business travelers which
comprise about 75% of the total business. The demand on weekends comes mainly from pleasure
travelers. A high percentage of car rentals takes place at airport terminals. Thus, it is
understandable that the success of this business is closely related to the airline industry.
Some car rental firms have added cellular car telephones to business travelers. Another
amenity is giving computerized driving instructions to customers. In order to overcome low
profits or losses, auto rental companies have employed a number of different strategies such as
higher prices, flat-free commissions for travel agents, and mileage limitations.
Travel by Bus/Motor Coach
Bus travel is the most flexible and economical form of transportation. In the US,
buses were first used to carry passengers intercity in the early 1900s. There was little intercity
travel before the 1920s. In 1928, the Greyhound Company, the largest privately-owned bus
company in the world, was established. By this time, buses traveled from New-York to Los
Angeles in about five days. With road improvements before WWII cross-country trip time was
reduced to 90 hours.
The terms “bus”, “coach”, and “motor coach” are used interchangeably. In North
America and elsewhere, the bus performs two major roles. The first is to provide a regular
schedule of intercity passenger transportation services. The second is to provide charter and tour
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services. Intercity service is indirectly competitive with private auto, rail, and air service.
Discount airfares have proven to be a major competition for intercity bus service. Thus, intercity
bus service has declined, while charter and tour services have grown. Bus ridership patterns also
changed to short-haul distances of 250 miles or less. Continental Trailways and Greyhound Lines
Inc. Are the two major intercity companies, with Greyhound accounting to 60% of the market.
The main reasons for selecting bus travel over the other modes of travel are
convenience and economy. Few people chose the bus for business travel. Bus riders tend to be
older and have less income. Bus service is available in practically every town of 1,000 people or
more, and a passenger station or ticket agent for bus service is at hand in each of these
communities. Most people do not choose bus travel for long trips. Surveys have shown that
women bus riders outnumber men. Recent advertising indicates that bus companied are
targeting their marketing programs toward family summer vacation market, young couples,
older people on summer vacation, and the retired people.
Charter and tour service is the fastest growing segment of the bus or motor coach
industry. Several tour packages are developed by tour brokers who charter buses and arrange all
the other components of the tour, including the itinerary, lodging, sightseeing, admission, tour
guides, meals, and the like. These packages are usually sold through travel agents.
Motor coach tours usually last five to six days and are limited to a particular
geographical area. The two principal markets for charter and tour services are school-age
children and senior citizens. Other markets include international visitors. Gambling tours in
motor coach to the casino centers of Las Vegas, Reno, and Atlantic City are very popular.
The increasing demand for motor coach tours, coupled with the improvement of
buses, could result in the future expansion of the bus charter and tour segment of tourism. The
present coaches are wider, have more leg room, more baggage space, lavatories, climate and
noise controls, better lightning, more sophisticated public address system, and panoramic view
windows
Travel by Air
The airplane had revolutionary impact on tourism from WWII onwards. The history of air
transportation can be divided into three parts - Pre-World War II, World War II, and Post-
World War II. On December 17, 1903, the Wright Brothers took a flight on a beach in North
Carolina which lasted 12 seconds with a distance of 120 feet. In 1927, the air industry developed
regularly scheduled passenger trips between Boston and New York. Other governments helped
this growth in the 1920s by subsidizing air companies.
In the US, almost all early airlines started by carrying mail for the post office. One of the
first
was Varney which began in April 1926 and later became United Airlines. Western Airlines
began its passenger service on April 17, 1926 when it carried a woman passenger along with the
mail. Pan American Airways had the first international flight in 1927 when it carried mail from
Key West, Florida to Havana, Cuba.
WWII influenced the development of the airline industry. It helped further improve
airplanes
by accelerating technological research to improve their size and speed and by using the
knowledge gained by thousands of servicemen who became familiar with planes and air travel.
The tremendous time-saving aspects of air-travel and its cost effectiveness, when
compared
to other modes of transportation such as the train, ship, and automobile, aided the growth of the
airline industry during the post WWII years. In the late 1950s and early 1960s, commercial jet
aircrafts were introduced, increasing the speed of travel and creating smoother flights and
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greater seating capacity for passengers for passengers. The commercial airline industry
improved further in the 1970s with the introduction of wide-bodied aircrafts such as the
Doughlas DC-10, Boeing 747, the Lockheed Tristar 1011, and the European Aerobus. These
planes further increased passenger comfort as well as seating and freight capacity.
As the airline industry grew, the travel industry depended on it more. Cruise lines, rental
car
companies, airport hotels, and ground transportation operators depended on the airline industry
to generate the bulk of the business. Executive business travel and international tourism are
dependent on it. The impetus of air travel to people traveling on business is its time-saving
advantage; for the pleasure traveler, it is the affordable price that has the greatest impact.
The 1980s had witnessed still further improvements in aircraft technology with the
introduction of the DC-9-80 and Boeing 757 and 767 designed for fuel-efficient operation
offering approximately 30% lower fuel consumption for passenger than the older models. The
introduction of the longer-range Boeing 747-400 that has a range of 8,000 miles and seating
capacity of 418 will change travel patterns. Almost all jetliners were built by Boeing, with
headquarters in Seattle, Washington; McDonnell Douglas in Long Beach, California; Lockheed in
Burbank, California; and the A-300, the Airbus, built by a consortium of European countries and
assembled in Toulouse, France. The three American Companies produced about 75% of the
world’s commercial jet planes. Boeing was the dominant company in jetliner business with sales
between $6 to $7 billion a year.
The Boeing 747 jumbo jet is a long-haul plane. The tail stands 63 feet and 5 inches tall,
about as high as a five-story building. It weighs 775,000 pounds and cruises at 625 miles per
hour, with some models having a range of 6,210 miles without refueling. It is distinguished by the
hump on the nose that houses the flight crew and the upper lounge for the first-class passengers.
Each 747 costs approximately $90 million, depending on spare parts and extras ordered. It is
safer and gives a smoother ride because its huge size lessens its reaction to air turbulence. It
carries cargo in its belly
Food service on the large planes is speeded by the use of modules, similar to cargo
modules.
These are snapped into places on a lower level in the aircraft. The gallery modules contain
prepared foods that are heated in flight by convection and microwave ovens located near the
module storage area. Elevators raise the food to the passenger deck when it is ready.
The factors associated with the recent boom in air travel include the world economy,
rising
standard of living, and the quality of air service. Growth in the Philippines has been at an annual
rate of 5% since 1959. The industrial nations, which account for the majority of air travel, has a
growth rate of 7% from 1960 to 1970.The standard of living in the world increased by 5% and
the per capita income rose to 3%. The per capita constant dollar gross domestic product (GDP) of
industrial countries increased faster than the GDP of developing countries. While the economy of
the US grew at an average rate of 3.3% from 1960 to 1970, the GDP of other major industrial
nations grew at a faster rate. The GDP of Japan rose to 10% per year for the past two decades. In
addition, airfares throughout the world decreased to 9% between 1960 to 1970. The average
airfare in constant dollars decreased at an average of 26% a year from 1960 to 1970 and
continuous to decrease. Because of these factors, air travel is no longer considered a luxury but a
necessity.
The introduction of charter services further pushed down the prices of airfares. Charter
services are an alternative to regularly scheduled services. They offer lower rates for two
reasons. First, they do not have the large personnel investment required an airline with regularly
scheduled flights. Second, by flying with a full load of passengers, the charter companies are able
to fly their planes for less cost per passenger. The growth of charter flights was impressive.
Freddie Laker, a British Entrepreneur, introduced a London-New York route, selling it for one-
half the normal airfare. Other countries and airlines followed with economy fares to and from
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European cities.
Since 1950, incomes have increased rapidly while airfares have declined. This made air
travel
more attractive than ever. While the price of an airline ticket decreased, the quality of service
with regard to speed, size, and comfort improved.
Airline Regulation
International tourism requires a system of international air transportation. This

systems require negotiations among the nations and carriers in the form of bilateral agreements.
Overflight privileges must be obtained from all nations over which an airline will cross during
international flights. Airlines are or may be assessed overnight charges for the privilege of flying
over other nations including countries which do not have formal diplomatic relations with each
other like Cuba and US. Lending rights, fuel purchase agreements, maintenance provisions, and
other considerations require bilateral negotiations.
Governments throughout the world have agreed that a complete free market for
international air travel is not possible. The original idea for a worldwide system of airline regulation took
place in the Chicago Convention of 1944 and the Bermuda Agreement of 1946.
The Chicago Convention marked the beginning of continuous dialogue about

various freedoms of the air but was not successful in establishing a multilateral system of commercial
aviation rights. The Bermuda Agreement established the first worldwide model for future bilateral
agreements regarding the exercise of the 8 freedoms of the air:
1. First Freedom: The right of an airline to overfly one country to get to another
2. Second Freedom: The right of an airline to land in another country for a technical stopover
(fuel, maintenance) but does not pick up or drop off traffic
3. Third Freedom: The right of an airline, registered in country X, to drop off traffic from country
X from country Y.
4. Fourth Freedom: The right of an airline, registered in country X, to carry traffic back to country
X from country Y.
5. Fifth Freedom: The right of an airline, registered in country X, to collect traffic in country Y and
fly on to country Z, so long as the flight either originates or terminates in country X.
6. Sixth Freedom: The right of an airline, register in country X, to carry traffic to a getaway - a
point in country X - and then abroad. The traffic has neither its origin nor ultimate destination in
country X.
7. Seventh Freedom: The right of an airline, registered in country X, to operate entirely outside of
country X in carrying traffic between two other countries
8. Eight Freedom: The right of an airline, registered in country X, to carry traffic between any two
points in the same foreign country; also known as cabotage.
Only the first two technical freedoms have been widely accepted. The third, fourth,
fifth, and sixth freedoms are still subject to bilateral bargaining. The seventh and eight freedoms are
usually allowed in special circumstances.
The bilateral air agreement concepts which resulted from these meetings meant
that airline service could not be offered between a nation of origin and one of destination unless there was
a specific agreement between the two nations regarding the details of the service. Bilateral agreements
were established to provide for the orderly development of the international air transportation industry.
The need for bilateral agreements was intensified because small nations felt that they should have their
own national airline or flag carrier. A large number of flag carriers are government-owned enterprises.
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Some are subsidized by the government because of national pride, fear of dependency on foreign carriers,
as means of supporting economic development, and to ensure air freight for export products. Airlines of
the US and other countries are owned and operated by private enterprises and must operate for a profit.
The use of the bilateral air agreements was not enough to meet the need for
cooperation between international airlines with different profit orientation. After the Chicago Conference,
several scheduled carriers met in Havana and the International Air Transport Association (IATA) was
formed to ensure cooperation among international carriers. IATA is a democratic organization whose
membership is open to any member of the UN. It is supported by dues from 140 active and associate
member airlines. It links together with many non-IATA carriers throughout the world in Multinational
Interline Traffic Agreement. This agreement allows passengers to use a single ticket and travel by several
carriers around the world. It makes the movement of air freight worldwide easier.
The primary purpose of IATA is to establish a system of international rates and fares.
Through IATA, the airlines enter into agreements concerning rates, conditions of services, and routes to be
given to each airline. The agreements are subject to the approval of their respective governments .
III. Application(Performance Task -40%)

Refer to LMS
IV. Assessment(Written Works-30%)
Refer to LMS
V. Reflection(Performance Task -40%)
Refer to LMS
VI. References
Yeung, M. (2021). Macro Perspective of Tourism and Hospitality. Manila, Philippines: EDRIC
Publishing House
Cruz, Z. (2019). Macro Perspective of Tourism and Hospitality. Manila, Philippines: REX Book
Store
Lim, R. (2017). Macro Perspective on Tourism and Hospitality. Mandaluyong City, Philippines:
Books Atbp. Publishing Corp.
Prepared by:
VENUS B. FINO
Instructor
Reviewed by: Approved by:
DIANA GRACIA T. EVANGELISTA, MM,CHP JESS JAY M. SAJISE, DBA

Program Head, School of Tourism and Hospitality Vice President of Academic Affairs External
Management

School of Tourism and Hospitality Management

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CSTC COLLEGE OF SCIENCES TECHNOLOGY AND

SCHOOL OF TOURISM AND HOSPITALITY MANAGEMENT

Pre-Industrial Travel System Era

This was the period before the widespread industrialization in

Early-Industrial Travel System Era

Mature-Railway System Era

This era was characterized by railways which expanded

Express-Travel System Era

Automobile-Based Travel System Era

Modern-Tourism Travel System Era

Post-Mobility Adjustment Era

Historical Development of the Transport System

Year Mode of Transport Speed

Selection of Transportation Mode

The negative factors of rail travelers are:

The Grande Vitesse

The growth of car ownership necessitated road improvements. The US federal

Travel by Bus/Motor Coach

International tourism requires a system of international air transportation. This

The Chicago Convention marked the beginning of continuous dialogue about

III. Application(Performance Task -40%)

Reviewed by: Approved by:

DIANA GRACIA T. EVANGELISTA, MM,CHP JESS JAY M. SAJISE, DBA

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