MTTM-14/2021

1. Describe the various components of Road Tourist Transport System. Which one of them can play a
significant role in the promotion of tourism activities? 20
The various mode of transport can be broadly divided into the following three categories:

1. Air transport
2. Land transport
3. Water transport
Air Transport
Due to the growth of air transport in recent years, long-distance travel has become much simpler and
affordable. Distance is now measured in hours and not in kilometers. The world has indeed shrunk and
becomes a small village.

The development of air transport mostly occurred after World War I and II. Commercial airlines were
created for travelers. Because of increasing air traffic, the commercial sector grows rapidly. Before the
World War II, Swissair already was carrying around 14-16 passenger between Zurich to London.
The first commercial service was introduced by KLM, the Dutch Airlines, in 1920 between Amsterdam
and London. Commercial air travel grew mostly after World War II. More facilities were introduced and
there was more comfort in travel.
Jet flights were inaugurated by Great Britain in the year 1952. In the year 1958 Pan American introduced
the Boeing 707 services between Paris and New York. Due to the introduction of jet flights, the year 1959
onward saw a tremendous increase in air traffic. The concept of chartered flights was also introduced
during this year.
Jumbo jets have revolutionized travel. A large number of people travel by air because of the speed,
comfort, and economy in terms of time saved.

The modern era, thus, is the era of mass air travel. After road transport, air travel is the most popular
mode of travel, particularly for international travel. For the business travelers, air transport is more
convenient as it saves their precious time and offers a luxurious and hassle-free travel. Many airlines
nowadays offer special facilities to the business tourist such as Internet on board.

1. Scheduled
2. Chartered
Scheduled airlines operate as regular schedules. Chartered airlines or the non-scheduled airlines operate
only when there is a demand, mainly during the tourist seasons. The chartered flights work out cheaper
than the scheduled carriers as they are operated only when there is a high load factor. Chartered flights
provide cheaper packages to the destination such as Portugal and Spain.
India receives more than 400 chartered flights, especially to Goa. Goa has a maximum number of
chartered flights coming in during the months of December to January.
The International Air Transport Association (IATA) regulates international air travel. IATA has more than
105 major airlines of the world as its members. IATA regulates the price of tickets on different sectors of
travel in the world. The concerned government decides the domestic fares.
The airfares are normally determined on the volume and the air travel demand in an area.

The International Civil Aviation Organization (ICAO) is an intergovernmental organization established in the
year 1945. Only the government of the country can become a member. The government has to enter into
a bilateral agreement for the frequency of flights for operating commercial airlines between them.

Airlines are classified into two broad categories namely small carrier and large carrier. The small carrier
also known as commuter airlines have less than 30 seats. The larger carriers, also known as major airlines
fly direct routes between the major cities and seat and seat 100 to 800 passengers.
The recent boom in the aviation technology has certainly bought some new development to airlines
industry. There has been a major change in the size of the aircraft.

Every year there are a growing number of new airlines being introduced. Because of the growing number
of new private airlines, there is stiff competition among them. This has resulted in a considerable
reduction in air fairs and has boosted the growth of air traffic. To woo and attract customers, many airlines
offer cheaper promotional fares such as excursion fares, group fares, and apex fares.
Million of tonnes of cargo and mail are also handled by the air transport industry.

Road Transport

Humans travel place to place in search of food in the primitive era. They tamed animals such as the dog,
ox, horse, camel, reindeer, elephants, etc. for carrying the load and traveling. After the discovery of the
wheel, humans developed the cart, the chariot, and the carriage.
Until the seventeenth century, horses were used for traveling. Later on better roads were constructed and
some of these roads developed into trade routes, which linked many countries. One of them is the Silk
Route which was used for transporting silk from China to Persia and the Blue Gem road from Iran to
Afghanistan and India.

Today, the most popular and widely used mode of road travel is the automobile or the car. Road transport
is dominated by the automobile, which provides views of the landscape and the freedom to travel. Tourist
often travels with their entire family for holidays.

To promote tourism, the vehicle required are coaches and tourist cars. Tourist coaches or buses are
preferred for large tourist groups traveling together on a specified tour itinerary. Many tourists prefer to
travel in comfort and privacy and hire cars. Cars of various makes and standards are available on a rental
basis.
Tourist also uses their own motorcar when holidaying. Cars and coaches carried long distance by train
facility is also available in some countries.
Rail Transport

The railway is the most economical, convenient, and popular mode of travel especially for long distance
travel all over the world. The railroad was invented in the seventeenth century in Germany with wooden
tracks. The first steel rail was developed in the USA during the early 1800s. The railways revolutionized
transportation and mass movement of people seen in the nineteenth and twentieth centuries.
The broad gauge lines account for more than 55 percent of the total network and carry 85 percent of total
traffic. The steam engines have been replaced by diesel and electric engines which have helped in
increasing the speed. Railways have promoted tourism by introducing a special tourist train.

In Europe, the railway systems of six European countries have been clubbed to make rail travel easier for
the people of Europe. A rail passenger can buy a ticket in any one country of Europe and travel through six
countries. For the foreign tourists, Eurail Passes offer unlimited discounts travel in express trains for
periods ranging from a week to three months. In the USA, AMTRAK operates trains.

Water Transport

Humans have been traveling through water since time immemorial and carried good and people from one
place to another. The boats progressed from the simple raft with some modifications and improvement
and were first used around 6000 BC.

Travel by ship was the only means for traveling overseas until the middle of the twentieth century.
The Cunard Steamship Company was formed in 1838 with regular steamship services operating on the
North Atlantic. During the World War I, in 1914 the operations of the steamship company had to be
suspended. After the World War I, the steamship luxury liners were back to business till World War II.
After the World War II, the large luxury liners again started their operations all over the world and carried
passengers and holidaymakers. Some of the linear were very large accommodating up to 1000 passengers
and had facilities like swimming pools, cinema halls, shops, casino, etc.

The cruise lines are the new attraction among the tourist. The cruises are booked several months in
advance for trips into the tropical and sub-tropical waters of the Hawaii, Caribbean, Mediterranean, etc.
Water transport today plays two main roles in travel and tourism namely ferrying and cruising.

2. Discuss the market segmentation approaches applicable in the Tourist Transport Operations (Road)
with the help of relevant examples. 20

Market segmentation certainly isn’t the latest and greatest tool on the market. In fact, it began taking
shape in the 50’s when brands like Proctor and Gamble and General Foods began pouring a lot of money
into brand management—or marketing as we know it today. In 1956, Wendell Smith introduced the
concept of market segmentation in Product Differentiation and Market Segmentation as Alternative
Marketing Strategies (not a thrilling read so we’ll save you some time) “Market segmentation [. . .] consists
of viewing a heterogeneous market (one characterized by divergent demand) as a number of smaller
homogeneous markets.” While a bore, Smith’s foundation is rock solid. A divided market based on
personal characteristics, motivators, and similarities helps advertisers cater to the specific needs of specific
groups. Now your message is focused and so is your product development (rather than trying to be all
things to all people).

Just to be clear, we’re not talking about personas

Market segmentation isn’t persona research. Sure, they’re very similar tools that group current and
potential customers into manageable buckets but you can’t create a detailed buyer’s persona without first
diving into market research. Specifically, personas are used to encourage design for real people with real
needs. Where segmentation aims to pinpoint and measure the size of different groups at a high-level,
personas break down the user’s context, needs, motivations, and pain points on a more intimate basis.

Marketing segmentation in the travel and tourism industry

Considering the travel market is far too large and diverse to reach effectively, tourism marketers use
segmentation to better understand customer needs and allocate marketing dollars effectively.
Effective segmentation is based on extensive quantitative research focusing on large numbers of people
and grouping them together based-upon shared characteristics such as demographics, behavioral patterns,
or cognition ratings. Once identified, these groups are referred to as particular segments and able to be
targeted by particular product offerings, services, and tailored marketing messages.

Seize the (micro) moment

Often tourism and travel market segments are created by one, or a combination, of the following:

 Age / Life Stage (e.g., millennial, retiree)

 Motive
 Socioeconomic status
 Type of travel (e.g., business, leisure, extended stay)
 Geography

With online research easier and more portable than ever, we like to think about marketing segments a
little differently. Travel brands and destination marketers should consider the moments your potential
customers may jump online from their phone or computer—as the biggest marketing opportunity.

While the who still matters when you’re trying to reach an audience—the when is more vital than ever.

For example, think about how you planned your last vacation. If you were like most, you bounced back and
forth between dreaming about and loosely planning your next getaway—zooming in on a destination and
quickly bouncing around in search of inspiration only to zoom out and consider all the options yet again.
This quick spurt of research to answer an immediate need (usually turning to a search engine) has been
coined “a micro-moment” by Google and is a huge opportunity for destination marketing organizations
and the key to attracting and earning a savvy traveler’s consideration.
4. What do you understand by Customer Care? What are the various steps of customer complain
handling in a Tourist transport business? 20

Customer care is the process of building an emotional connection with your customers, whereas customer
service is simply the advice or assistance your business provides them. Customer care is less quantifiable
than customer service and is more concerned with one-to-one customer interactions.

While both functions increase customer satisfaction, customer service does this by answering questions
and providing support. Customer care, on the other hand, focuses on active listening and understanding
the customer's emotional needs as much as the physical or business ones. By doing so, your company
creates a long-term, mutually-beneficial relationship with your customers.

Customers get angry for a variety of reasons—some justified, some not. Anyone who deals with customers
will likely encounter rude or angry individuals once and awhile. How you respond can make the difference
between a customer who feels satisfied with the resolution 1. and one who vows never to patronize your
business again.

Talking to an angry customer is never easy but following these steps can help to put your customers at
ease and show them that you want to help so you can get to a resolution much quicker. Handling angry
customers is just part of the customer service industry but it isn’t the end of the world. In fact,
helping customers find solutions to their problems can be quite rewarding and actually build loyalty when
handled correctly.

Here are the 7 steps to follow when a customer complains:

1. Listen carefully to the person who is angry.

This requires active listening which means you need to stop what you’re doing to concentrate. An angry
customer needs to know that they are being heard and that you are fully engaged in the conversation.
Concentrate solely on what the customer is telling you. Make notes of the key facts and their concerns, so
that you have a record of the conversation to refer to in the future.

2. Let your customer vent for a few minutes if necessary.

A really angry customer sometimes needs to vent their frustrations. Give them a chance to do so as long
they are not using obscenities or abusive language. Don’t interrupt. Remain calm and in control. Above all,
remember that you are representing your company and they are not attacking you personally.
3. Show empathy for your customer’s concerns.

Let them know that you sincerely care about the problem even if you don’t agree with their comments. If
you or your company made a mistake, admit it. If it is a misunderstanding, you can respond in a
supportive, concerned tone of voice, “I can see how that would be incredibly frustrating for you.” You are
not necessarily agreeing with what the customer is saying, but respecting how he or she perceives and
feels about the situation.

4. Thank your customer for complaining.

Yep. Even when customers are being a bit nasty, you can begin to change the tone of the conversation
dramatically by sincerely thanking them for bringing the problem to your attention. This shows the
customer that you genuinely care about what they are sharing and you appreciate the opportunity to
resolve the problem.

5. Sincerely apologize even if you are not the cause of the problem.

It really doesn’t matter who caused the problem. Sometimes the customer is the one who made the error.
What you are apologizing for is the fact that they are upset about the situation. An apology implies
ownership. It lets the customer know that you are going to help them through the process. When said
sincerely, the words “I’m sorry” can eliminate as much as 95% of a person’s anger. This will help your
customer to calm down and be more open to problem resolution.

6. Get the facts.

Now that the customer has calmed down and feels you have heard his or her side, begin asking questions.
Be careful not to speak scripted replies, but use this as an opportunity to start a genuine conversation,
building a trusting relationship with your customer. To help you understand the situation, as open-ended
questions to try to get as many details as possible.

7. Offer a solution.

This happens only after you have sufficient details. Know what you can and cannot do within your
company’s guidelines. Making a promise you cannot commit to will only set you back. Remember, when
offering a solution, be courteous and respectful. Let the customer know you are willing to take ownership
of the issue and tell them what you are going to do to solve the problem. If an employee in another
department is better equipped to fix it, help make the transition smooth by explaining the problem so your
customer doesn’t need to repeat their story.
6. Explain the concept of Costing in tourist transport business. Discuss the various forms and types of
costing. 20

Tourism is one of the world’s fastest-growing industries and a major foreign exchange and employment
generation for many countries. It is one of the most remarkable economic and social phenomena.
The world ‘tour’ is derived from the Latin word tornus, meaning ‘a tool for making a circle’. Tourism may
be defined as the movement of the people from their normal place of residence to another place ( with
the intention to return) for a minimum period of twenty-four hours to a maximum of six months for the
sole purpose of leisure and pleasure.
According to WTO (1993) ” Tourism encompasses the activities of persons traveling and staying in places
outside their usual environment for not more than one consecutive year for leisure, business, and other
purposes.”
The Rome conference on tourism in 1963 defined tourism as ‘ a visit to a country other than one’s own or
where one usually resides and works’. This definition, however, did not take into account domestic
tourism, which has become an important money-spinner and job generator for the hospitality industry.
The UNWTO defines tourists as ‘ people who travel to and stay in place outside their usual environment
for not more than one consecutive year for leisure, business and other purposes not related to the
exercise of an activity remunerated from within the place visited’.
According to the Tourism Society of Britain,” tourism is the temporary short-period movement of people
to destination outside the places where they normally live, work; and activities during their stay at these
destinations.” This definition includes the movement of people for all purposes.
The development of technology and transportation infrastructure, such as jumbos jets, low-cost airlines,
and more accessible airports have made tourism affordable and convenient. There have been changes in
lifestyle – for example, now retiree-age people sustain tourism around the year. The sale of tourism
products on the internet, besides the aggressive marketing of the tour operators and travel agencies, has
also contributed to the growth of tourism.
September 27 is celebrated as world tourism every year. This date was chosen as on that day in 1970, the
Statutes of UNWTO were adopted. The purpose of this day is to raise awareness of the role of tourism
within the international community.
Travel is as old as mankind on the earth. The man at the beginning of his existence roamed about the
surface of the earth in the search of food, shelter, securities, and better habitat. However, in course of
time, such movements were transformed into wanderlust.

About five thousand year ago, changes in climate, dwindling food and shelter conditions hostile invaders
made the people leave their homes to seek refuge elsewhere like the Aryans left their homes in Central
Asia due to climate changes. Perhaps, this leads to the development of commerce, trade, and industry.
During Hindu and Chinese civilization a movement of religion, education and culture began. Christian
missionaries, Buddhist monks and other traveled far and wide carrying religious messages and returned
with fantastic images and opinions about alien people.

For centuries movement of people continued to grow due to the efficiency of transport and the assistance
and safety which the people could travel. By the end of the 15th century, Italy had become the intellectual
and cultural center of Europe. It represented the classical heritage both for the intelligentsia and the
aristocracy.
 During the 16th Century, travel come to be considered as an essential part of the education of every young
Englishman. Travel thus became a mean of self – development, and education in its broadest sense. The
educational travel was known as ‘Grand Tour‘.
The industrial revolution brought about significant changes in the pattern and structure of British society.
Thus, the economy of Britain was greatly responsible for the beginning of modern tourism. It also created
a large and prosperous middle class and because of great improvement in transportation systems in latter
half of the 18th century and the first quarter of the 19th century, an increasing number of people began to
travel for pleasure.

Travel was originally inspired by the need for surviving (food, shelter, and security), the desire to expand
trade and quest to conquer. As the transportation system improved the curiosity for transforming the vast
and virgin world into a close neighborhood created a new industry i.e. Travel and Tourism.
However, the developments of rails, roads, steamships, automobiles, and airplanes helped to spread
technology across the globe. Earlier travel was a privilege only for wealthy people but with the industrial
revolution, the scenario altogether changed. Transportation, as well as accommodation, became
affordable to middle and working-class citizens.

Essentially, with the development of jet travel, communication, new technology, tourism, and travel
became the world’s largest and fastest-growing industry.

Travel and tourism, recently have emerged as a dominant economic force on the global scene accounting
for more than 12% of total world trade and growing at the rate of 8 percent annuals.

8. Discuss the managerial functions in a Transport Business. Also list the qualities that make a successful
Tourist Transport Manager. 20
Logistics is an increasingly prevalent term in business. It’s about getting the product to the customer in the
most efficient, timely and cost effective manner. Transport and logistics managers play a key role in
fulfilling manufacturers’ promises to their customers and in meeting those customers’ expectations. They
are responsible for managing the execution, direction, and coordination of all transportation matters
within the organisation. This includes managing budgets, organising schedules & routes, ensuring that
vehicles are safe and meet legal requirements, and making sure that drivers are aware of their duties.

Logistics embraces purchasing and supplier management, materials management and manufacturing,
inventory management and warehousing, distribution and transport, and customer service. While the role
covers a range of functions, each with its own challenges and skills, they are all interdependent and
practitioners must work together and understand the impact on the whole supply chain to deliver results.

Logistics links all the processes involved, from obtaining the raw materials through to delivering the
finished goods to the customer. The management of this supply chain is now recognised as one of the
most important factors in making companies efficient and competitive in today’s global economy.

Work activities

Logistics:

 Planning routes and load scheduling for multi-drop deliveries.

 Booking in deliveries and liaising with customers.
 Allocating and recording resources and movements on the transport planning system.
 Ensuring all partners in the supply chain are working effectively and efficiently to ensure smooth
operations.
 Communicating effectively with clients and responding to their requirements.
 Booking sub-contractors and ensuring they deliver within agreed terms.
Transport management:

 Directing all transportation activities.

 Developing transportation relationships.
 Monitoring transport costs.
 Negotiating and bargaining transportation prices.
 Dealing with the effects of congestion.
 Confronting climate change issues by implementing transport strategies and monitoring an
organisation’s carbon footprint.

Work conditions

Travel: occasionally required, though not a regular feature of the working day.

Working hours: flexibility is required to meet the needs of the business as working hours vary, with long
hours and possibly shifts including weekends common.

Location: mainly in towns or cities throughout the country.

Opportunities for self-employment: possible to run own transport business.

Typical employers

 Logistics companies
 Supply chain consultants
 Freight and shipping companies
 Transport consultancies
 Passenger transport providers (rail, bus, sea and air companies)
 Local, regional and central government.

Career development

Promotion into general management roles of larger units or more specialised roles are possible.

Salaries

Vary greatly depending on employer and level of responsibility.

 Specific degree subjects required

Open to non-graduates and graduates of any discipline.

To attain membership of the Chartered Institute of Logistics and Transport in Ireland you need to have a
specific combination of qualifications and experience, including 2 years at senior level.

Other relevant degree subjects

 Economics
 Environmental
 Geography
 Information technology
 Marketing
 Psychology
 Social science
 Sociology.

Postgraduate study

A pre-entry postgraduate qualification is not a requirement.

Training

The Chartered Institute of Logistics and Transport in Ireland acts as the examining body for the sector.
They also offer certificate and diploma courses in transport and logistics, as well as specialised courses in
specific transport areas.

Tips for applications

Gain relevant industry knowledge; positions are rarely granted to those without this.

Skills and qualities

 Ability to appraise and use IT packages and electronic communication methods.

 Tact, diplomacy and calmness, especially when dealing with tired drivers and disgruntled customers.
 An analytic mind and good numeracy skills.
 Excellent geographical knowledge.
 Good people management and coordination skills.
 Excellent financial acumen.
 Excellent negotiation and communication skills.
 Extensive knowledge of the transportation industry.
 Good intuition to make crucial judgment calls.