Traffic Features – Theoretical

Basis
2ndTematic Unit
Traffic, Transport..
• Traffic is an activity of moving people, goods, information and energy
from a starting point to the destination.
• It is a totality of elements (infrastructure, means and enterprises) on
a certain area which through their interdependence and activity
produce a service.
• Subject of traffic: people, goods, energy and news(information).
….
• Transport is an activity of moving people, goods and energy from
starting point to the destination.
• Subjects of transport: people, goods, energy.

• Due to the role that news/information have in tourism, the focus is on

traffic and its place in tourism.
Types of Traffic
• Subject of transport: people, goods and other objects,
• Possibilities of use: public or personal needs,
• Organisation: liner, free, occasional

• The focus is on passengers’ and information transfer, although

transport of goods is extremely important for tourism because of
supply of tourism destinations.
….
• Possibilities of use: public or for personal needs.
• Public transport is available to everyone under the same conditions.
• Publicity derives from published timetable of transport →it is a liner transport
and a commercial transport as well.

• Transport for personal needs is undertaken by people using means of

transport of their property(eg. personal car, plane, ship..) →no commercial
character
…..
• Area/territory: international or national
• International: between 2 or more states: transit traffic (traffic between two
countries through the territory of a third), traffic between two countries with
no countries between, border traffic(people living in one coutry and
employed in neigboring one)

• National: urban, suburban, interurban(long-distance)

….
• Participation of traffic modes: unimodal or multimodal

• Multimodal traffic is simultaneous or consecutive use of different modes

(traffic means of traffic branches).
• Increases the attractiveness, spatial coverage and dynamics of tourism travel.

• Unimodal traffic uses exclusively one traffic mode.

Basic Concepts in Traffic (Gross&Klemmer(2018), p.5)
• Traffic means (cars, trains, planes, ships…)
• Subject of traffic (passengers, goods,…)
• Traffic infrastructure (roads, railroads, airports, seaports,
garages…control systems, handling facilities…)
• Traffic mode: ground(road and railwys), air and water based(sea and
inland waterways)
• Traffic process (→traffic service: moving traffic means through
infrastructure on selected routes)
….
• The interaction between means, infrastructure and employees results in a
process – service.
• Traffic process is, in fact, a process of traffic service production.

• This defines traffic as part of a service producing sektor.

Traffic Demand – Traffic Offer
• Traffic demand is fulfilled by traffic offer.
• Unlike demand deriving from tourism demand which is very dynamic,
traffic offer is of static character and reacts slowly to changes in
surroundings.
• This gap represents a big challenge for traffic companies, because
they have to create some kind of compromise, in order to achieve
financial stability.
Other Concepts in Traffic
• Traffic Mean Capacity (static, dynamic)
• Traffic Infrastructure Capacity(static, dynamic)
• Traffic Policy
• Strategy of Traffic Devepolment
• Traffic Planning

• Capacity is always a possibility to accept subjects of traffic or means of traffic.

• Its dynamic version is always linked to certain period of time.
Strategy, policy, planning…
• Strategy of traffic development, traffic policy and traffic planning are
instruments used by states in order to plan and develop their traffic
and to achieve defined goals.
• These goals are prerequisite for development of society and economy,
and for some countries this means tourism as well.
Basic Features of Traffic
• Capital intensive activity (large investments in infrastructure,
means,..)
• Long economic lifetime of infrastructure, significantly shorter that of
traffic means,
• Interdependence between infrastructure and investments because of
economy of scale/size)
• Traffic demand is considered as derived demand (in the case of traffic
for tourism it derives from tourism demand)
….
• Numerous external effects of traffic (positive: mobility of people,
human potential and capital, market expansion, labour division,
specialisation; negative: environmental and safety effects.
• Traffic is a very complex activity – a prerequisity for society and
economy.
Means for Transport for Tourism
(Gross&Klemmer(2014), p.6)
Tourism Transport Marketplace
(Gross&Klemmer(2014), p. 2)
Traffic in Europe
• TEN-T Transeuropean Network
The Trans-European Transport Network (TEN-T) policy
addresses the implementation and development of a
Europe-wide network of railway lines, roads, inland
waterways, maritime shipping routes, ports, airports
and railroad terminals.
The ultimate objective is to close gaps, remove
bottlenecks and technical barriers, as well as to
strengthen social, economic and territorial cohesion
in the EU.
Core goals till 2030, the rest till 2050.
https://transport.ec.europa.eu/transport-
themes/infrastructure-and-investment/trans-
european-transport-network-ten-t_en
TEN-T /Croatia
• https://en.wikipedia.org/wiki/Pan-
European_corridors

• TEN-T corridors passing through Croatia:

• Vb, Vc (pink)
• X (yellow)
Remarks & questions?
Ground/Land Traffic -
Basic Features
3.1. Tematic Unit
Introduction

Road
Ground/land
Rail

Traffic Sea
Water based
Inland
waterways
Air
….
• !!! - 3rd tematic unit includes an overview of all traffic modes for
passengers’ transport because tourists and visitors use them all, and
do not limit themselves only to tourism means of transport

• Traffic modes will be analised according to their features, elements,

organisation, means of transport with special reference to some
financial data.
Road Traffic
• Advantages: elasticity, individuality, „door to door”service, low price(?)
• Disadvantages: small capacity, causes urban congestion, safety issues,
environment pollution

• in the world 1.5 bill. road vehicles, of which more then 1 bill. passenger cars
(https://en.wikipedia.org/wiki/Motor_vehicle) /2019/
• In Croatia 2.4 mil road vehicles, of which 1.8 mil passenger cars
(https://podaci.dzs.hr/media/4jfphuz1/tran-2022-1-2-registrirana-cestovna-vozila-i-cestovne-prometne-
nesre%C4%87e-u-2021.pdf) 2021
• About 18% of city area is dedicated to road vehicles
• 1.35 mill killed on roads in the world(2019), 271 in Croatia (2022)
….
• Impact on the environment – more than other traffic modes –
exhaust gasses, harmful substances, noise, vibrations, risk of
groundwater pollution, devastation of landscape, light pollution,
casualties of wild animals…. and so on.
….
• Elements: infrastructure, vehicles, traffic management devices,
employees

• Possibility of use: public or for personal use

• Organization: liner, free, occasional

Pedestrian traffic (?)
• Neglected, EU is trying to promote it, as an important part of urban
mobility
• Positive influence on psychophysical conditions
• Max 15 min.walk is acceptable to reach a station of public transport,
shop, work..
• Infrastructure needed: sidewalks, urban pedestrian zones,
footpaths…- small investments
Cycling
• Promoted by EU as part of urban mobility.
• Positive impacts on: environment, health, small area needed, low
price
• Actual trends: e-bicycles, rent-a-bike, romobiles (in destinations for
rent)
• Personal use – commuter traffic
• Infrastructure needed: paths, parking slots, devices for traffic
regulation; and traffic organization especially when infrastructure is
used at the same with motor vehicles.
• Safety issues!
Motorcycle traffic
• Advantages: occupies smaller area than other motor vehicles, part of
urban mobility/commuting, in destinations (for rent), low price
• Disadvantages: environmental pollution, safety issues
• ATV – to rent in destinations

• Segway
Automobile traffic
• Advantages: low price, optimum capacity for family usage,
individuality, elasticity, „door to door”, universal usage in towns and
outside them, for many different purposes including tourism journeys
• Actual trends: lower emissions and fuel consumption, transition to
green fuel sources, grater safety due to construction of the vehicle,
more and more safety elements, computer control to help driver,
availability of information about traffic in real time.
• 2 ways of using cars:
• Personal
• Public (taxi, car – share, car – pool, rent – a – car..)
….for Tourism Purposes/Camping
• Share the majority of advanteges and disadvantages of a car.
• Camper trailer is a vehicle without its own drive, equiped for a multi-
day stay of people, functionaly connected to a car.

• Caravan(motorhome) is a vehicle which consists of a

living quarter for accomodation and a drive part.
• Usually rented for tourism purposes – elasticity and individuality.
Bus traffic
• Dominantly public.
• It can be: liner, free, for special purposes.
• Buses for: urban(the biggest ones with cca 160 pax), suburban,
interurban and international transport →difference in capacity,
speed, comfort, additional services, purchasing price..
• Tourism buses: the same as those used in interurban and
international traffic; capacity from 10 to 60 pax, double deckers up to
80.
…..
• Gross & Klemmer, p.81
….
• Actual tendencies: capacity increase, low – floor vehicles for people
with mobility difficulties, accepting bicycles and baby carriage..;
ecology drive (natural gass, batteries, electrical supply – trolleybuses),
• AGV (automated guided vehicles)
Traffic for Special Purposes

Airports…
Infrastructure
• Huge investments (cca 10mil E/1km highway), motorways and parking
slots needed, long life service (50 years), long time construction,
construction in phases where possible, availability to everyone under
the same condition, payment of usage fee, impact on other traffic
modes.
• Elements: roads, highways, tunnels, bridges, parking slots, bus
strations, accompanying facilities on highways, system for traffic
management…
• Investor: state or private owned companies (through concessions)
Bus Station or Terminal
• Provide services to buses(cleaning, maintenence..), drivers (rest) and
passengers (information, selling tickets,boarding,etc) with the aim to
separate motorised from padestian traffic, for safety reasons.
• They also act as intermidiates between bus traffic and other
modes(taxi, passenger cars, public transport, bicycle, pedestian,
trains, ships…)
Goods Traffic
• Supplying cities – delivery vehicles, waste removal, cleaning the urban
area, emergency services (firefighters, ambulance, police…)
• All of them have to be able to perform their
function without problem → smart city concept
Railway Traffic
• Advantages: large capacity,
environmental friendly, low cost
of service (?)
• Disadvantages: inelesticity,
functional dependence between
means and infrastructure, high
investments, complex
organization, large differences in
transport speed
….
• Capacity of the train can exceed 1000pax, variable no of vagons
making a train
• Dominant electric locomotives, major influence – noise, vibrations
• Service price in proportion to speed, comfort and additonal offer
• Service is offered only on existing railway lines according to the
timetable
• Preparatory phase of transport process is complex, time consuming
and needs special infrastructure
• Timetables are to be harmonized at international, state and local
lavel, as a whole, and for each railroad.
….
• Organization: liner
• Possibility of use: public, occasional (very rare: holidays, touristic
trains..)
• All trains are sceduled to timetables
• Importat role in multimodality – transport of bicycles, cars, trucks..

• Elements: infrastructure, trains (locomotives, wagons), employees,

devices for managing traffic on a railroad
Types of Railways
• Gross&Klemmer, p. 106
…..
• Urban and suburban transport – huge capacity and frequency,
adherence to timetable(usage of ICTS to inform passengers), speed,
multimodality…..(including trams)
• Interurban transport – intercity and high speed trains i EU – comfort,
speed up to 300km/h
…..
• Mountain railways – connect mountain villages and towns and often
overcome big height differences.
• Speed up to 50km/h, wagons with large windows, sometimes an
open wagon – all aimed to sightseeing; and liner public transport for
local inhabitants.
Infrastructure
• Start-end points: railway stations, railway terminals, shunting stations
(for assemling trains)
• Railway trucks, bridges, tunnels, viaducts, devices for managing traffic
on the railway
• Phased construction not possible
• Investors: state or private owned companies
…..
• Railway stations or terminals provide services to trains, employees,
passengers (boarding and disembarking; information, selling tickets)
• Terminals always act as connecting points to other traffic modes:
passenger cars, taxis, public transport, cycling…
• They also offer comfort to passengers by means of selected
services(restaurants, shops, playgrounds for children…)
Remarks & questions!?
Air & Waterbased Traffic-
Basic Features
3.2. Tematic Unit
Air Traffic
• Advantages: speed, comfort, connecting places all over the world
• Disadvantages: high price (?), safety and security, negative impact on
environment, dependence on airports as starting/end points, still
dominant use of fossil based fuel

• Average speed 800-900km/h, again the newest type of airplane

2000km/h
• Comfort – still present despite smaller seats and less place per
passenger seat
…..
• Dominant in intercontinental passengers’transport, as well as on
intracontinental longer distances
• Low-cost carriers have made air transport accetable to much more
people all over the world(cheaper service)

• Safety, depending on technology and organization is increasing

despite the growth of traffic volume; while security remains a
problem, because of which airports have to deal with numerous strict
controls of passengers and their luggage.
…..
• Significant negative impact on
environment – noise, exhaust gases,
harmful substances, „acid rain”…., and
all of them very hard to measure

• Elements: airports, airplanes etc,

devices for traffic management,
employees
• Possibility of use: public, for personal
use
• Organization: liner (low-cost,
traditional), charter (for tourism
purposes)
Airplane traffic
• Commercial and public, according to flight schedule.

• According to distance: short(till 3000km), medium(3000-5000km),

long till 12000km.

• The market is liberalised – carriers are free to act on routes where

profit is expected
…..
• Market segmentation:
• Approximately 1/3 of total market to
each of three dominant categories of
Charter carriers
Traditional
carriers • Gross&Klemmer (2014), p.13
carriers

Low - cost
carriers
……
• Traditional carriers dominate in intercontinantal transport, but also on
some continental routes as well.

• Low – cost carriers operate within continents, intensively expanding

thanks to a business policy that enables cost reduction and therefore
lower service price.

• Charter carriers are functionaly tied to tour operators, performing

passengers’transport as integral part of tourism jouney.
…..
• Personal purposes
• Own or hired planes, smaller capacity, often used for tourism purposes

• Special purposes
• Emergency interventions, firefighting, traffic monitoring on a selected
area(maritime, road..), transport to mountains, islands…
Special Types of Air Transport
• Gross & Klemmer, p.37
Ballons’traffic
• Today used for tourism purposes: excursions, sightseeing, advertising
purposes and freight traffic

• Helicopters
Airports
• Traffic hubs - passengers, planes, flight control, other trrafic
modes(public transport, taxis, personal cars, railways, shutlle buses,
trams,…)
• Within airport passengers are moved by coveyor belts, light railways,
electric vehicles..
• Elements: runways( plane size depends on its lenght, manuevering
surfaces, aircraft stands, buildings and flight control devices, service
devices for aircraft, building and devices for passengers, infrastructure
to accomodate other modes of transport
Water Based Traffic/Maritime Traffic
• Advantages: large capacity, economy
• Disadvantages: low speed, dependence on sea ports as starting/end
points, environmental pollution.

• Sea ships are absolute largest means of transport (cruises up

8000pax, large ferries about 2000pax and 1200 vehicles)
• Economy is a result of large capacity and low fuel consumption (due
to a small speed), which results in low costs/1 passenger and is a
basis for low cost of transport service
….
• Low speed – due to water as a traffic medium and natural
conditions(waves, climate..)

• Dependence on sea ports – water depth, underwater relief, climate

conditions…) – locations which could be reached by ship and on
which infrastructure and devices are provided

• Passengers’ ships produce noise, waste water if not properly taken

care, exhaust gases, water eddies when manuevering, but there is no
risk of large-scale disasters like with tankers
….
• Elements: ships, ports, light houses, navigation and management
devices.

• Possibility of use: public, personal use

• Organization: liner, free (cruises, excursions), occasional

• Tourism purposes: connecting starting point and destination entirely

or partly, excursions, sightseeing, occasional transport, for personal
needs(recreation, entertainment-nautical tourism)
Liner (Passengers’) Traffic
• Organized od limited regional market where continuous (by routes,
quantity and dynamics) passengers’ flows (maybe vehicles’ as well)
are present.

• Passengers and vehicles are transported by ferries and their

size(capacity) is in proportion to demand, distance and characteristics
of the port. (ports should be able to accept ships of certain size and
characteristics)
….
• A ferry is characterized by a ramp(most often at the stern) through
which vehicles are loaded and unloaded.
• In the ship’s hull (garage) there are no barriers →safety?
• Similar to ferries there are also ships that transport trains (more
complex in construction, loading and unloading, but important to
connect devided railway lines devided by sea but not far away)
…..
• High speed ships (catamarans, hidrofoils..) only for passengers; the
highest speed at sea(aprox. 40-50km/h), with a capacity of cca 400
pax.

• Hovercrafts – fly above the sea and land (50-100cm), to start and
complete the transport they need a flat coast
….
• Personal use: non commercial use – fishing, sports, recreation,
entertainment, vessels in nautical tourism (own or hired)
Maritime Traffic Infrastructure
• Sea ports or terminals
• Light houses and other navigation safety
devices
• Waterways

• Sea ports are aimed to accept ships,

embark and disembark passengers (and
vehicles), provide other services to ships
(refuel,supply..)
• Terminals also provide additional services
to passengers such as catering, shoping,
wi-fi, sanitary facilities, connection to
other traffic modes(multimodality traffic
nodes), etc
….
• Lighthouses and other safety devices(signal buoys) – for safe
navigation, together with safety devices and rules on bord the ship
they create a unique system of vital importance especially at night
and bad weather.

• Sea waterways: Suez, Panama, Corinth, Kiel…

Inland Waterways(Rivers, Lakes, Canals)
• Advantages: large capacity, economy (but smaller than in maritime
transport)
• Disadvantages: low speed, limited possibility to choose a route,
dependence on weather conditions (!)
 Speed

Navigation conditions Sailing direction Navigation

speed(km/hour)

River of unlimited dimensions upstream 4-5

downstream 12-15
Calm river - 7-8
Canals of limited dimensions - 4-5
…..
• Routes are limited to river flows
– beyond them no possiblity for
river transport
• Dependence on weather
conditions (ice, melting snow,
heavy rains, fog,..) and on river
flow, that determines a
possibility of river regulation for
navigation (canals, navigable
constructions,..
…..
• Elements: ships, infrastructure, devices for traffic management

• Possibility of use: public, for personal use (fishing, sport, recreation,

nautical tourism..)

• Organization: occasional, free, liner(?)

• No liner traffic because of the limited speed and routes. Only in some
cities – sightseeing
• For tourism – cruising, excursions, sightseeing
Passengers’transport
• Ships differ from marine ones: smaller capacity, smaller draft
(submerged part of the ship), limited suprastructure height (due to
bridges), limited lenght (due to river curves), part of the hull above
the waterline is small because there are no big waves.

• The upper part of ships’ construction can be folded and retracted

with the aim to minimize the total height of the ship, to be able to
pass under the bridges.
Infrastructure
• More numerous to those in maritime traffic which contributes to the
complexity of traffic.
• Elements:
• River ports/terminals
• Winter quaters: public or limited to selected users
• Canals
• Navigable constructions
• Constructed riverbanks
• Signaling and safety devices
• Devices for maintaining the river navigable.
…..
• River ports are aimed to accept ships.
• River terminals, besides beeing exuiped to accept ships, provide
services to passengers as well the to other transport modes (taxis,
public transport…).
• They also act as multimodality nodes.
• Winter quaters(moorings) for ships out of navigation due to
maintenence or weather conditions, public or owned transport
companies.
…..
• Canals – connecting navigable rivers (Rhine – Main – Danube)

• Navigable constructions – regulate/calm the river flow, in such a way

as to avoid watefalls and thus enable continuous navigability.

• Constructed riverbanks prevent the river from burying its bed with
material from the bank.

• Signal safety devices: ( signal buoys and marks) within the navigation
is safe, coastal signaling for navigation at night, fog…
Telecommunication Traffic
• It transmits news and information.

• Elements:
• Cable(metal conductors, optical cables..)
• Wireless (public mobile telephony, maritime communications, air traffic
communications, road traffic communications, railways communications,
urban traffic communications(mobility, smart city..)
Postal Traffic
• Transfer of goods in small shipments, money and letters (written
news).

• To fullfil the goal it deals with some organizational elements such as:
• Units of postal network to provide services to users(post offices, mobile post
offices)
• Units to dispatch, transport and collection of postal items(postal centers,
mobile postal centers)
• Units to perform money transactions (money business centers)
Remarks & Questions?!
Ground/Land Traffic as a
Tourism Product
4th Tematic Unit
!!!!
• 4th, 5th and 6th tematic unit deal with traffic modes specially
intended to tourism
Land Traffic in Tourism Flows
• Land traffic is widely used in tourism all over the world, mainly due to
road traffic.
• Road traffic:
• participates in the initial and final stage of each journey regardles the mean of
transport engaged,
• it has a dominant role in destination mobility,
• the majority of individualy organised jouneys are performed by car
• trips orgenized by agencies for larger number of tourists involve to some
extent this traffic mode.
…..
• The role of railway traffic is not even close to the role of road traffic,
which is due to: inelesticity and not so developed infrastructure
network.
• Despite those limitations railways are used for sightseeing, excursions
and longer journeys organized as a rule by agencies.
• In larger cities railways are responsable for passengers’mobility.
• Railway traffic is considered to be environmental friendly which is a
big advantage compared to other traffic modes.
….
• Cableways are essential for tourism offer based on recreation and
sports in mountainous and hilly areas (skiing, snowboarding, hiking…)
• When present in the cities, they provide transport and sightseeing.
• More or less similar to this traffic means: land-based cableways,
elevators… for passengers transport and sightseeing.
Share of traffic modes in internationa tourism flows (world)

1990. 2000. 2005. 2010. 2014. 2017.

Air traffic 39 % 42 % 45 % 51 % 54 % 57%

Road traffic 47 % 45 % 43 % 41 % 39 % 37%

Railway traffic 6% 5% 5% 2% 2% 2%

Water-based t. 8% 8% 7% 6% 5% 4%

Total 100% 100% 100% 100% 100% 100%

 Share of traffic modes in tourism arrivals in Croatia
(Tomas 2019, Institute for Tourism, Zagreb)

Mode/year 2019. 2017.

Personal car 60% 64%
Airplane 20% 14%
car with camping van 4,8% 9%
Autohome 6,6% 6%
Bus 6,4% 4%
Motocycle, bycicle 1,1% 2%
Others(ship,train,nautical 1,2% 1%
vessel..)
….
• The role of railways in continuously decreasing although it is the
biggest on European continent compared to the world’s areas.
• This is due to a fact that EU stimulates railways development for
several decades.
• Traffic share in tourism characteristic for Croatia is quite different in
other Mediterranean countries (Italy, Greece, Turkey, France, Malta…)
– air traffic is dominant
Road Traffic
• Bus excursions
• Duration: max.1 day
• Types: for tourism market or closed groups
• Characteristics: Occasional transports in which traffic and tourism
offer are combined and partecipate equaly.
• Organized by tourist agencies using own or hired buses
• Visit to NP Plitvička jezera, Venice….
…..
• Bus excursions for closed groups primarily emphasize the transport
function and tourism after that; the organizer is often not an agency
but someone who gathers a large number of interested parties on a
different basis (a school, an enterprise, sports club…)

• A visit to Nikola Tesla birth house, visit to Međugorje organised by

church, …
Multi-days bus trips

• Very popular form of traffic-tourism product (weekend travels,

extended weekend travels, trips lasting, 7, 10, 14 or more days…)
organized by tourism agency or tour operator
• Market oriented trips dominate although for closed groups are also
possible.
• During the journey tourism and traffic offers are intertwined (catering
services, sightseeing, visit to attractions, destinations…)
…..
• The attractiveness of the jouney: the dynamism due to constantly
changing landscape, contact with the environment due to large
windows, comfort due to construction of the bus and additional
elements, lower price compered to similar journeys performed by
other traffic modes.
• In the case of long-term journeys some shorter routes or sightseeing
is performed by other transport modes - multimodality
Panoramic and other tourists’transport in destination

• Flexibility, ability to reach different locations, speed adjustment, large

windows make buses ideal for sightseeing and panoramic tours –
tourist guide is added (virtual or physical)
• Buses: newly built, double-decker, with possibility to opet the roof or
old ones that can no longer be used on longer distances
• These are round trips („hop on – hop off”) – tourists are allowed to
get off at any stop, and get on as well (stops are located near
attractions)
• The ticket is valid for 1 day or more, often part of a „city card” – can
be combined with other kinds of tourism offer
Different concepts of sightseeing
Shuttles, transfers..
• Shuttle transports are of regular or occasional nature intended to
closed groups.
• Transport of passengers on cruises from the ship to the destination
and viceversa at a defined frequency and as direct transport;
transport of hotel’s guests to a destination, parking lot..
• Transfers are „door to door” transport of groups of tourists who travel
using other transport mean.
• Transport of tourists from airport to the hotel and viceversa
Local Tourist Lines

• Ski buses – ski tourism development

by means of quantity has resulted in
accomodation that is far away from
main ski slopes and cableways’stations
• They are organized as public liner
transport, but the construction of
buses is adopted to transfer
passengers with their skiing
equipment; by local administration
and local transport companies.
• Beach buses – in seashore
destinations distant locations are
connected by a form of public, often
liner transport (small „trains”!)
Vehicle Rental

• Cars (rent – a –car), motorcycles,

ATV (all terain vehicles), bicycles,
segways, romobiles…
• Air destinations, but also all those
reachable by all means except
road,
• With the appearance of new kinds
of vehicles available for rent, a
destination is gaining in attraction,
and all the people in mobility
• Some of them use the pedestrian
infrastructure which leads to safety
problems
…..
• Rent – a –car agencies provide for cars at the airport and return it at the
same or another location
• The rental agreement icludes: rental fee, duration, type of vehicle and
some other conditions.
• Rent – a – bike is gaining in popularity as a mean for mobility at the
destination (Next bike, and the like..)
• In urban areas „car share” is being used as well – the car is picked up at a
certain location, opened (payed…)using the application, used as needed,
return and made available to the next user.
• Advanteges: all the benefits of using a car when necessary, reduced costs,
no problem with parking, one car is used by many people…mobility-electric
power)
Cycling Tourism

• Common name for different ways of using bicycles for tourism

purposes depending on lifestyle, age, destination, physical
conditions…
• Ways of using bicycles:
• Bicycle is a mean of transport during the trip, bicycle is uesd only in
destination for mobility and sightseeing(owned or rented), bicycle is
used for sports (mauntainous…)
• When not rented cycling tourism requires specialised offer:
accomodation, food, transport of people and bicycles on certain
routes, additional services related to bicycles and tourists…)
…..
Other forms of road traffic

• Pedestrian traffic – in tourist destination great attention is payed to

promenades – along the sea, rivers, lakes…, pedestrian zones are
organized in city centers and near main attractions.
• It has an important role in shaping tourism product of a destination as
a whole.
…..
• Road traffic and catering • Road infrastructure as an
attraction
Majstorska cesta-Velebit
Railway Traffic
• Huge potential in tourism, partly because it was neglected and many
people do not use it
• Excursions – trips related to events, natural beauty, cultural-histotical
heritage; using outdated railroads (sometimes old trains) that are no
longer used in regular public transport.
• It can be bridge to overcome the gap between developed and
neglected destinations – a way to activate/ diactivate to some extent
destinations involved in the trip
• Example: between Rome and Civitaveccia(seaport) there is a „sea
train” that takes cruise passengers to Rome – large capacity, high
speed, relieves road infrastructure..
Multi-days Railways Trips

• „Railway tourism”- the most complex tourism traffic product involving

railways as it includes: transport, catering, sleeping, visit to attractions…
• As a rule these are very luxurious and expensive journeys, lasting from
several days to several weeks, wagons are very comfortable due to a long-
term stay of passengers, sometimes they are restored or replicas of old
trains from the „golden age” of railways.
• Examples: Venice Simplon Orient Express(known as Orient Express), Royal
Scotsman, Trans-Siberian-Express….
• Organization: all catering services(overnight stay, food and drinks)can be
organized on the train, or it can be organized in destinations involved in
trip schedule
• Tourism services: sightseeing of the surroundings, excursions, sightseeing
in destinations, entertainment on the train..
Panoramic Trips

• National parks and other protected areas, entertainment parks, ceves etc.
where high ecological standards and large capacity is needed
• These transport systems operate on short distances, trains are of non-
standard dimensions, speed is lower, capacity and external appaerance are
in harmony with the attraction
• „Mountain railways”are public liner transport, but have also very important
role in tourism – for sightseeing in mountainous area, which is not
accessible by other transport means.
• These are local touristic lines.
• Example: Bernina Express, which also has an open carriage for direct
passenger contact with the nature.
Panoranic trips by railway
Tourist Trains

• Public liner transport between emitive and receptive market (eg.from

Czech Republik to Croatia), can include wagons for passengers’cars
transport
• At distances of approx. 2000km passengers and their cars travel
together by train, so that they can use in a destination and at the
same time avoid a long travel by road (positive environmental impact,
safety..)
• These trains transport bicycles which offers huge possibilities to
develop cycling tourism
Skitrains

• Tourism in mountain areas owes its development to

skitrains(ropeways were rare and primitive)
• Smaller systems than other public liner railways, short distances and
lower speed, primarily intended to transport skiers from the valey to
the mountain top.
• Construction is adopted to transport skiers and their equipment
• Large capacity, minimal environment pollution but the main problem
is overcomming the ascent.
….
• The usual max.slope is 18(12.5 for high speed trains)per tousand.
• These trains sometimas have slopes of 40 per tousand → cog railways
(a cog system is instaled between the tracks to enable secure
movement uphill and downhill)
Road Vehicles in Trains - Multimodality
Sightseeing

• In some cities replicas of old

railways operate, thus
contirbuting to the
attractiveness and image of the
destination.
• In this contect tramways are also
often present
Other forms of railway traffic

• In some other traffic facilities,

such as airports, trains connect
distant parts of terminal,
enabling big capacity and high
speed transport of passengers.
• They operate as public liner
transport, with no or a few stops
from the strating till the ending
point.
Cable Cars and Funiculars
• Cable car traffic or vertical traffic
• Most frequently used in mountainous areas, where they are a
prerequisite for tourism offer; but also in some cities
• Other types of similar traffic modes: panoramic lifts, elevators, belt
conveyor…
• Ski and mauntain cable cars – for shorter distances, to get to the top
of a hill or mountain, or for large passengers’flows
• Most often ski centers, which emphasize number and dynamic
capacity as an advantage in market positioning
Skiing…
…..
• Types of cable cars according to a device for passengers: ski lifts, cable
cars with seats (chair lifts), cable cars with cabins, aerial tram(or bus).
• The most numerous are cable cars with seats(up to 8 people, with
glass covers, heated…) – large capacities of several tousands per hour
• Cable cars with cabins – for longer distances; cabin provides good
protection for people, they often have seats and large glass surfaces;
also used in cities
Panoramic trips
Aerial tram is a cable car with
only 2 cabins, they move in
oposite direction, capacity up
to 150 passengers, used to
reach mountain peaks –
intended for skiers,
mountaineers and hikers who
want to experience the view.
Urban cable cars and funiculars

• Cable cars – act as horizontal

transport from one location to
the other, with a panoramic view
during the transport is due to
the distance from the ground.
• This type is also prsent in some
entertainment parks for
sightseeing and overview the
attractions.
Urban funiculars
Funiculars - for transport from
the starting point to the point
with panoramic view, always
on a hill or mountain (
funicular in Zagreb,
Budapest…)
Cabins, always 2, move in
oposite direction, along the
infrastructure on the ground,
capacity depends on the
demand and construction
….
• Elevator in a cave…
Questions and remarks?
Water based Traffic as
Tourism Product
5 th Tematic Unit
In general ..
• Water based traffic is the oldest traffic mode
• Maritime traffic, today, enables economy globalisation – delivery of
raw materials, semiproducts, final products to the market, energy
transport and unlimited labour mobility.
• Therefore, countries with direct access to the sea despose of an
advantage: not only they can benefit from their possition, but also of
their transit position (countries with no access to the sea have to pay
for using coastal capacities (ports, shipping and other services related
to sea shipping)
….
• Inland waterwys traffic (rivers, lakes, canals) is a carrier of freight
traffic within continent, depending on availability and characteristics.
• Similar to those in maritime traffic, the reasons are: big capacity, low
cost per unit of capacity, low speed, which are all not limiting
elements for most goods.
In tourism
• Statistics on the share of water traffic in worlds’touristic flows is
modest (4%) compared to other traffic modes,especially road, and
shows continuous decline.
• These data refer to tourists’ travel from starting point to the
destination→due to a low speed it is not suitable for this purpose
• Tourists prefer fast transport modes (eg.air traffic), which is in
harmony with the way of living and actual tendencies in
tourism(increasing demand for short-term trips by planes-city-break,
cruises lasting 3-4 days, weekend trips..)
…..
• Because of its features, water based traffic has a modest role in
destinations; it partecipates very little in supply, but however some
products based on navigation have a huge importance on tourism
market (eg.cruises)
Maritime Traffic
• Cruises
• According to territory: international and national
• International cruises are very popular and have been recording high growth
rated for decades(until the pandemic)
• The core of the offer is the ship and its offers, combined with the
attractiveness of navigation, and stops-almost every day in different
destination
• The laggest units capacity is almost 8000pax, speed of 30 knots, equipped
with devices to reduce stumbling and swaying for a comfortable
passengers’sojourn on ship.
• Characteristic high superstructure above the ship’s hull, with entire ship’s
hight of 70m above the sea →the majority of common area is situated
there
…..
• Eg.. Symphony of the Seas
(Royal Carribean): 2759 cabins,
6680 pax, investment of more
than 1billion EUR, 24 swimming
pools, 22 kitchens, 18 decks,
casino, movie theater, theater
hall, adrenaline park, surf pool,
children’s park, sports fields,
apartments for children on 2
levels with slide and playground
Economy of size
….
Economy of size: As ship size increases, the price per passenger
decreases, allowing shipping corporations to charge less per
passenger per day and increase revenue and profit.

• As new builds, these ships are the most expensive traffic means in the
world, the trend of increasing ship’s size is due to economy of size.
• Economy of size: with the increase of the ship’s size the cost per 1
passenger is increasing slowly then the size of the ship→lower price
per 1passenger/day→shipping companies can achieve higher income,
and profit.
• Thousands of passengers on a ship is mass tourism, despite ships’
offer, interior design or journey schedule
• Cruises are a result of cooperation between shipping company and
touroperator.
….
• Shipping companies(Royal Carribean, Costa Crociere, MSC…) are
owners of ships, provide for the personnel (nautical, operation,„white
personnel”..)
• This last category provide for all the passengers’needs, on large ships
their number exceeds 1000.
• Tour operators are selling journeys all over the world, and organize
transfers of passengers to and from the port of embarkation.
Demand - Offer
…..
The cruise offer is based on 4 elements:
price, destinations, entertainment and
catering services on bord.
To that the experience of sailing has to
be added.
More than 50% of world’s total
traffic(approx.total 30 million passengers)
takes place in the Carribean and
Mediterranean.
Demand for cruising journeys
……
• On the international cruise market there is also an offer of travel by
smaller ships, personalized offer, capacity of several hundred
passengers or even less.
• 10 x more expensive then mass cruises
• International cruises are going on during the whole year with adapted
itinereries to the parts of the world.
….
• National cruises are organized according to the same principles as the
international ones: there is a difference in distances, ship’s capacity, limited
area - the state territorial sea, with max. durration of 14 days.
• A little different tourism offer: sun and sea, access to seashore that is not
accessible in other ways, docking in small ports, with the possibility to
learn more about local life, gastronomy, enology, local events…
• Trend of specialised journeys: cyclists, entertainment, elder people…
• Ship owners are small, often family owned enterprises, with only one ship
up to capacity of 150 passangers.
• The ships are operated by a tourist agency as a rule, trips are sold on a
regional market.
• Journeys are organized on a seasonal base.
Excursions
• Very popular in coastal destinations, lasting from few hours to max. 1 day.
• Contributes to the destination attractiveness by means of direct contact
with surroundings, often involving some spots that can not be visited in
any other way.
• Capacity of the ship up to 100 passengers, speed up to 15 knots, a few
employees on bord
• Cheap, often including simple catering services
• Sales are carried out by an owner, or by local tourist agencies, camps,
hotels…
• Gaining in popularity excursions with rubber speed boats (12-24pax)
Panoramic Trips
• Coastal destinations sometimes organize panoramic trips – to see the
coast from the sea, as a round or one-way trip.
• Eg.: Venice sightseeing, sealife watching, national parks sightseeing
(NP Krka, NP Kornati…)
• Combinations of sea and river trips are common – many cities on
Baltic or North Sea (Rotterdam Antwerp, Gdansk…)
Nautical Tourism
• Started at beginning of 20th century in G.Britain and USA-on rivers
• It is based on sailing and staying on specialised vessels – boats or
yachts, equipped by all the necessary facilities, owned or rented.
• Basic elements are: vessels and infrastructure – marinas,
sports/fishing ports, moorings and anchorages, signaling and safety
devices on sea.
• Prerequisites for development: natural conditions – warm sea,
indented coast, specialised infrastructure.
…..
• For a receptive county it is an important economic activity: ports and
marinas are providing services to vessels and people, vessel rental
activity (with or without crew), other related services (licences to
manage vessels, insurance…), catering, boat maintenece…
• Because of natural resouces preservation planned development and
traffic monitoring has to be applied.
• Planned development primarily refers to infrastructure capacity
planning, equally distribution on a certain area, distribution of
coastal gass pumps, waste disposal locations and management.
….
• Traffic monitoring involvs documents and licences checking, behavior
monitoring (traffic density, risky and illegal behavior), possible
accidents during bad weather and resque operations (harbors
master’s and maritime police)
• Marinas are facilities on the seashore that offer services to boats and
people.
• Function: reception and guarding vessels, prividing catering services,
shopping, supply services, sports snd recreation (sometimes).
• Marinas differ in terms of: location, construction, use and purpose.
….
• Dry marina is a guarded area away
grom the seashore for storage and
maintenence of vessels.
• Mediteranean type of marina (on
the seashore) is of relatively simple
and light construction.
• Regarding the purpose: commercial
(closed or open type), sports and
clubs marinas, combined (for local
inhabitants and comercial use)
…..
• Regarding the way of use:
stationary, transit and combined.
• Rent-a-boat is an acitivity carried
out by specialised agencies.
• Rental duration: few hours to
days, week…; international
charter – applies to large luxury
vessels always with the crew.
• Main types of vessels: sailboats
and motor yachts.
Other Types of Maritime Traffic
• Sea is very attractive for development of various kinds of tourism offer.
• Diving with divers transport to attractive locations, water skiing, jet-ski, banana
and tuba rides(combined with speed motor boat), sailing, wind surfing, kite
surfing, parasailing(towing a parachute with a speed motor boat), canoe, kayak or
sup rowing…
Maritime Traffic
Infrastructure
Specific for Croatia – lighthouses
more than 100 years old –
automated so that ligthouse
keepers to do not live on them
anymore.
They are arranged for rent; for
those on islands transport and
supply is included.
Inland Waterways
• Cruises
• Much smaller scale then in maritime traffic – people of older age,
calm sailing and continuous view to the land.
• The principle of organization is the same as on sea: the ship sails from
one port to the other, tours, excursions or sightseeing at destinations
are offered.
• Present on rivers and lakes on all continents.
….
• Compared to sea cruises, river cruises lay upon smaller ships (on
european rivers max 400pax) – limit due to infrastructure.
• Ships have a small part of ship’s hull above the water, high
superstructure (2-3 decks), folding masts and command bridge, due
to limited hight of bridges.
• Higher quality level of catering - only restaurent’s service, smaller
common areas and modest interior design.
• Annual passengers’traffic approx. 10% of amount of those on seas.
• European rivers: Danube, Rhine, Meina, Rhona, Douro…
…..
• Organization: shipping company is a shipowner providing for
navigation, tourist agency performs marketing and sales.
• While sea ports have new built terminals for cruise ships and
passengers, providing many services for passengers to create an
atmosphere of holiday from the moment they enter the ports’area,
river ports are just at the beginning of this process.
• The majority of river ports have modest or no facilities for passengers.
River cruise offer-European rivers (source: statista2019)
River cruise demand (in 000pax) (source: statista 2019)
Excursions and Panoramic Trips
• Simple organizational form including transport, with no or simple
catering service
• Sightseeing of the city, natural environment, areas under special
protection, ports, rivers’estuaries, cultural and historical monuments
and locations.
• Eg.: Paris, London, Amsterdam, Berlin, Vienna, Budapest, Ljubljana..
• National parks and areas under special protection: Kopački Rit, NP
Plitvice lakes…
• Combined river – sea tours: Rotterdam, Antwerp, Gdansk…
….
• Multimodality – transport of other traffic means on river ships
Nautical Tourism
• Present on all inland waterways but the scale is not comparable to
those on seas.
• Elements: vessels (the same as on seas, limited dimensions),
infrastructure-river ports for vessels, marinas, piers for vessels
protection during bad weather, swollen river etc.
Questions and Remarks?!
Air Traffic as Tourism Product
6th Tematic Unit
In Tourism
• Air traffic has the largest share in the transport of tourists and this
share is constantly increasing.
• This role is almost exclusively linked to transport of tourists from the
emitive market to the destination and viceversa.
• Its basic features (speed, overcoming great distances in relatively
short time) proved to be a great advantege for tourists.
….
• Although its organization is rigid: dependence on airports as starting
and ending points of the journey, in the liner transport flight
timetable established by a carrier, airports are far away from city
centers which extend the duration of a journey.., advantages
obviously go beyond disadvantages.
• By making even the most distant destination accessible, air traffic
paved the way to global tourism.
…..
• These advantages became even bigger with the appearance of low-
cost carriers (some 10-15 years ago), which introduced a different
business model: all business processes, except safety, were
subordinated to cost reduction (→lower level of service quality)
• This led to a significantly lower price of service and was followed by a
boom in the amount of passengers traffic, having huge impact on
tourism traffic as well.
• Moreover, as the time passengers spent in airports became longer,
due to addional security controls, to travel on longer distances seams
more rational, because of the favourable ratio of time spent in flight
and in airport.
The Share of Traffic Modes in the World’s Touristic Flows

1990. 2010. 2017. • In EU tourism air traffic also has

a dominant role.
Air traffic 39 % 51 % 57%

Road traffic 47 % 41 % 37%

Railway traffic 6% 2% 2%

Water based
traffic 8% 6% 4%

Total 100% 100% 100%

….
• Air traffic is facing major challanges:
• Safety of passengers and aircrafts increases controls and leads to longer
stay in airports,
• The increased number of aircrafts complicates the work of all services on
land, especially flight control, often leading to delays,
• Limiting the emissions of harmfull gasses – ecology,
• Fluctuating prices of oil derivates,
• Market characterized by competition as a consequence of liberalization,
• Increase of demand due to the offer of low-cost carriers,
• Safety challanges as a consequence of huge number of crafts in the air
above big airports.
…..
• Some carriers do the „overbooking” – sell more tickets than the
capacity of aircraft – the loss of some unsatisfied passengers including
some financial demage as well, is smaller then the loss of unsold
aircraft’s capacity
• Air traffic is under presure to reduce negative impact on environment.
• This preasure appeared later then in case of road traffic, because it
was and is still impossible to determine which amount of pollution
belongs to air traffic compared to other polluters(industry,
agriculture, other traffic modes..)
Determinates of Future Development in EU
• Environmental issues:
• 50% reduction of CO2, 80% reduction of Nox by 2030,
• Green production → maintenance and recycling of products in
aviation industry
• Alternative fuels – hydrogen, solar energy (still only in experimental
phase) ???
• 50% noise reduction,
• Elimination of impact on the population outside the airports’borders
….
• Safety challenges:
• 80% reduction of number of accidents,
• Minimazing the possibility of human error,
• Improvement in the practice of security measures.

• Effiency:
• Increase in traffic throughput
• Shortening the stay at airport to max. 30 minutes
• Organization and management in airports.
…….
• Quality and availability:
• Reduction of traffic prices
• Reduction of arrival time to the airport
• Increasing the choise of services for passengers
Influence on Tourism
• Low-cost carriers led to increase in number of tourists and activation
of small secondary airports – this trend will continue with the
opening of new receptive markets in less developed countries
• Structural change in supply due to demographic and structural
changes in tourism-more singles, less families, more adventurism,
higher awareness of environmental protection, ethics and health.
• Quantitative change in supply will be due to increase of need to
excape from a stressful lifestyle, which generates short-term trips, for
which the airplane is an ideal mode of traffic
Charter Traffic
• Traffic mode intended to tourists
• Present on short, medium and long distances; within continents and
on overseas connections
• The main advantege is flexibility in choosing airports, times of trip,
frequency and dynamics(number of departures..)
• Service is similar to those of low-cost carriers(due to cost reduction) –
less comfort, no catering service, less favourable time of departure
and arrival, secondary airports are often used.
….
• Organization: a contract between carrier (specialised company
providing aircrafts and transport function) and a touroperator
(providing marketing and sales function)
• Long-term contracts between carriers and touroperators prevail-
guarantee stability in business.
• Eg.:arrangements lasting 7 days including air transport and
accomodation in a hotel/resort; favorable prices and mainly due to a
good occupancy of the aircraft (in departure and return direction)
Low-cost Carriers in Tourism
• It belongs to the liner transport model, and is intended to all passengers,
but it has a huge role in tourism (within the continent)
• Service features or why is the price so convenient?
• Bying tickets only via Internet,
• Earlier bought ticket is cheaper, but also a last-minute if there is free space-
the price is adjusted often, sometimes even on a daily level according to
demand-supply relation,
• Seats are often not numbered (numbered seat is charged additionally as
well as priority boarding and additional luggage),
• Seat dimensions are limited,
• Catering service under aditional payment.
…..
• Aiplanes are the same , but with reduced comfort, in order increase the nubber
of seats→larger number of passengers higher income!
• Impact on tourism: airplanes coming to secondary airports and consequently a
large number of passengers, resulted in preasure to activate and organize tourism
offer in these area(accomodation, catering, attractions…) and local traffic as well.
• This activates many new destinations.
• Existing destinations have also increased tourism traffic-tourists can visit them
more cheaply and more often
• Besides using a cheap way to visit a destination, tourists keep the freedom of
individually plan their entire journey
Airplanes
• Boeing 747 (Jumbo-jet) – wide body plane, capacity 400-
600pax(depending on one or two classes, one or two floors), speed
800-900km/h, range 10 000-14 000km, depending of type for
intercontinental transport of people.
• Wing span 68 m
• (https://hr.wikipedia.org/wiki/Boeing_747, 25.04.2020.)
….
• Airbus A – 380 (Superjumbo) – wide
body plane with two floors, capacity
520 – 850 pax (depending on one or
two classes), speed approx. 900 km/h,
range 10 000 – 14 000km for
intercontinental passenger transport
• wings span 80m
• (https://hr.wikipedia.org/wiki/Airbus_A380,
25.04.2020.)
….
• Airbus A-300 – wide body plane,
capacity 250 – 350 pax, speed
800km/h, range 6500km, for
intracontitental passenger
transport(middle distance)

• (https://hr.wikipedia.org/wiki/Airbus_A300,25.04.2
020.)
• https://dribbble.com/shots/1671750-KLM-Airbus-
A330-200, 25.04.2020.)
Airplanes for Personal Use
• A market niche to which wealthy people belong
• Planes are owned or leased
• Luxury trips with personalized content
• Motives: transport to the destination, travel from destination to
destination, individual or small groups (organized individually or by a
travel agency), content: art, history, culture, nature, entertainment..
• Specialized agencies dispose of their own planes, capacity up to 20
passengers, equiped by luxury and comfort, jouneys lasting 1 – 2
weeks.
Excursions and sightseeing
• Airplanes, baloons, helicopters..
Panoramic Flights
• At small airports ( often sports airports), small planes offer panoramic
flights – a view of destination from the air
• They can be combined with photography, recording → drones
• The offer in such planes as well as on airports is modest because it is
not their primary purpose
• The carrier is a local airline or sports club
• Service selling directly with the club, or via a travel agency..
Other services

• Sports and recreational purposes:

• Parachute jumps,
• Paragliding,
• Hang gliding,
• Promotion and marketing
Where are the Drones in all this?
• Delivery of postal items, medicines, recording, supervision of traffic,
accidents,…
• Protection of privacy when flying over building, gardens (private
property) – legally undefined situation
Space Tourism
• Primary motives:
• View of Earth from the space,
• View of the universe from the space,
• Beeing in space
• Visit the space station,
• The experience of weightlessness.
• Prices - from hundred tousans to millions$
Gross & Klemmer, p. 53
….
• Types of travel(eg.):
• Trips to space station,
• Flights to stay in a spaceship without gravity,
• Flights with the fastest military planes,
• Training programes in orbit,
• Visit to the main space and astronomical stations on Earth.
Airport as a Destination
• Long stay of passengers at airports poses new challenges for airport
management.
• Actual trends:
• Greater speed of working procedures with passengers,
• Active role in tourism offer of the destination,
• Cooperation with other tourism stakeholders,
• Provision of information and sale of tourism products,
• Applications to easily approach to many services..
…..
• Tourism offer at airports:
• Shopping, entertainment, organizing conferences and events (airport
hotel weddings!)
• Incentives for carriers(lower fees, marketing..)in opening new lines.
• New airline services activate new destinations,
• Airports are named after historical figures for easier recognition on
the market
Questions & Remarks!?
Economics of Transport
Means and Infrastructure
7th tematic unit
…..
• Traffic service is a product aimed to be sold on the market.
• Consequently, this means that specialised enterprises produce and
sell transport service.
• This does not apply to transport for personal needs (personal cars,
but also in other transport modes).
• Transport companies operate as owners of transport means that offer
transport services.
…..
• There are transport companies that own or manage transport
infrastructure(eg.Concessionaires based on concession contract), that
under condition to pay a fee enable users to use it.
• Eg.: in road traffic toll for using motorways, tunnel tolls, bridge tolls,
parking fee…
Quality of transport service

• In general quality should be in relationship with price.

• Baseline trend: tourists are looking for higher quality and a lower
price.
• Transport service affects the quality of tourism product, so tourists
tend to evaluate the tourist offer through transport service as well.
• This points to the important role of destination management, in
connecting stakeholders with the aim to establish a quality transport.
• Elements of transport service quality: comfort, speed, punctuality,
regularity, price, safety, additional services during transport, „door to
door”..
….
• Speed is correlated to the way of life, and the on going trend on
tourism market – more short trips per year.
• Comfort becomes more important with the lenght of the trip; and is
not only depending on the features of the transport mean but also on
the organization of the trip, additional services, „door to door”.
• Importance of the price depends on the living standard – dominant
criterion in the case of mass tourism.
• The more personalized and more expensive the tourism offer is, the
price is less important.
Value of Transport Service

• Consisting elements:
1. Transfered value of the transportation mean( transport mean is
being consumed during the transport process and the
corresponded value is transfered to the service )
2. Value of the labour (work of all persons involved in transport
service, from those managing traffic means to those creating it
according to market research, charging service..)
3. Value created through the market mechanism (big supply affects on
lower prices, lack of supply to higher prices) – competition?
Factors Influencing the Value of Transport Service

• Type of transport mean

• Valume of traffic(no of passengers in selected period of time)
• Transportation distance
• Capacity utilization of a transport mean,
• Transport infrastructure (quality, density and development level)
• Traffic demand oscillations,
• Labour organization,
• Ratio of gross and net work of the means of transport(empty driving and
driving with passengers)
In tourists’transport non economic criteria also play a certain role,
sometimes even the most important (pandemia).
Costs in Traffic

• Costs are a consequence of moving a transport mean in ordar to

move passengers.
• They can be observed from the point of view of:
• The transport company,
• User(passenger) of the service,
• Society.

• Transport company takes into account the actual costs of transport

service production.
…..
• User/passenger – the price is usually little higher because the
enterpreneur includes at least an average profit rate in the price –
4-5% (even more depending on market trends)
• Society is very interested to know the real costs of service – state
transport policies create conditions for people living on islands, in
mountains, for tourism, economy, agriculture etc., therefore
sometimes it subsidizes transport costs in part or in full
…..
• Cost are divided according to:
• Traffic modes,
• Sources of origin,
• Partecipation in transport process,
• Place of origin,
• To the one who is burdened
• Level of capacity use
• Relationship between planned and real costs
…..
• Traffic modes are very different compared to: investment in buying a
new transport mean, costs of fuel, no of employees necessary to
organize transport process, infrastructure fee, market atractiveness..
• Sources of costs: costs of different materials(spare parts…),
depreciation(amortization) costs(due to wear a part of transport
mean and transfer the value to the service), other service
costs(catering, cleaning, disinfection..), maintenance costs(regular
inspections, regular maintenance, extraordinary maintenance and
repair..)
…..
• Partecipation in transport process – costs of transport process (salary
of employees who manage a transport mean, cost of fuel, cost of
using infrastructure, part of the cost of amortization..), costs of
preparation, organization and sale(so-called overhaed costs)
• Place of origin – costs of initial and final phase of process(cleaning,
preparation for the process..), costs of the transport itself(fuel,
salaries of employees in vehicle..)
• To the one who is burdened – general costs cannot be linked to exact
amount to a place of origin or to to bearer, so they are allocated to all
partecipants according to certain criteria; individual costs that are
tied to a specific place or carrier(repair of a breakdown..)
…..
• Level of capacity use – fixed (permanent, constant)costs do not
depend on the occupancy rate of a transport mean capacity, nor on
weather the capacity is used or not; variable costs depend on the use
of the capacity
• Relationship between planned and real costs – planned costs(result of
capacity planning) and actual costs(those that realy appear in
transport process); the relationship between then could indicate the
eficiency of the business and should be checked periodically.
Fixed Costs

• They are always the same, constant in

mass, and mostly depend of the amount
of investment in capacity.
• Insurance premiums, loan costs, rent and
lease costs, employees’salaries, lighting
and heating, depreciation of work
assets(amortization)
• With a higher degree of capacity
utilization(large number of transported
passengers) the corresponding part of
them per 1 unit/passenger is
decreasing→economy of size (cruisers)
Variable Costs

• Proportional to the volume of traffic; without transport process they

are not present.
• Costs of fuel, lubricants, consumables, salaries of employees whose
employment depend on on the movement of traffic
Price of Transport Service
• It is the amount of money paid by the passengers for transport
service.
• Basically it is determined in these ways:
• Freely,
• Administratively
• By associations
• Independently.
…..
• Freely – contract between transport company and user of the service
• Administrative – by the state or local government, in order to achieve
the goals of transport policy, mostly with state-owned companies
• By associations of transport companies in order to prevent unfair
competition on the market, a price is stipulated and applied by all
members
• Independently – privately owned enterprises determine their prices,
based on costs and some profit rate.
Influence of the Market

• The demand for transport service shows different level of elasticity –

basically when there is no alternative service passenger is forced to
use the offered service, even if he is not satisfied→low elasticity of
demand
• In tourism the elasticity is low when: there is no alternative mean of
transport, transport by alternative mean is much more expensive, the
share of the transport service in the price of entire trip is small, if
there is a habit of using a certain mean of transport, and if the
deviation in service quality is not large.
Road Traffic – Costs and Price of Service
• Transport companies are state owned(local goverment) or private.
• Transport companies define service price according to: distance, time,
salaries of employees and infrastructure fee.
• In the structure of costs, variable costs dominate, because of
relatively low prices of vehicles, the average long distances and high
price of fuel, showing an upward trend.
• Prices in urban and suburban transport are defined by local
government(administrative), in other fields – free, independently.
….
• Relationship between road and railway transport/price
• In countries with developed railway transport, road transport
companies must take care about the price of railway service on the
route on which they both operate, to avoid outflow of passengers.
• A road transport company can increase the price above the price of
the rail service only in case of higher quality of the service(eg. Higher
frequency of traffic, shorter duration of a journey, simple information
and ticket sales.
Railway Traffic – Costs and Price of Service
• In EU railway companies are state-owned or privately owned, but the
majority of them are dealing with infrastructure and transport means.
• Costs are determined by a large investment in both infrastructure and
means, so fixed costs are dominant.
• The costs are not depending on the traffic volume – it is not possible to
determine the exact cost that realates each individual transport (general
costs)
• Characteristic costs:
• Operational – costs of selling services, maintaining costs, costs of the
transport itself, overhead costs-basically variable but they behave as fixed
because of the complexity of reilway company organization
…..
• Costs according to whom they charge – individual costs are rare,
general ones prevail
• The same railway line is used by freight and passenger trains; among
passenger trains (local, high-speed, national, international…) different
in speed, capacity, energy consumption..→according to their share
costs are estimated
• Prices are calculated according to distance, speed,
comfort..→administrative(state owned company) or independent
(private company)
Air Traffic – Costs and Price of Service
• Similar to road traffic, the ownership of planes and infrastructure is divided
into separate companies that can be state owned or private.
• Characteristic division of costs: c.on the ground and c. in the air.
• C.on the ground: depreciation(amortization) and maintenence of
infrastructure and equipment, staff salaries, sales and promotion
costs..(most of them are fixed costs).
• C.in the air: depreciation and maintenence of planes, fuel and lubricant
costs, cabin crew salaries..(part are fixed and part variable)
• Total costs are high (due to high fixed c. and variable c.), aircraft capacity is
limited→ carriers are devoted to reduce costs as much as possible and fill
the capacity to the maximum
…..
• Price of service is calculated by: the state - administartive(state
owned carrier), the carriers’association (IATA, Star Alliance..), free
agreement between carrier and the client (charter traffic) and
independently (low cost carriers).
Maritime Traffic – Costs and Price of Service
• Similar to air traffic, the ownership of means and infrastructure is
divided into separate companies, state owned or private (more
often).
• In shipping companies costs are divided into: absolutely fixed,
conditionally fixed and variable.
• Absolutely fixed c. are: depreciation, insurance premiums, costs of
capital(eg. C. of credit-ships are bought on credit as a rule), significant
costs of maintenance (eg. State of the ships’hull depends on the
weather, not on sailing)
….
• Conditionally fixed costs are in fact variable c. which behave as fixed
once the ship starts a sailing season according to regular timetable.
• Fuel and lubricant costs, salaries of crew (navigation, engine,
necessary white personal), part of engine costs in proportion to no.of
working hours, majority of port costs (mooring, pilotege, towing,
agency fees…)
• Variable costs depend entirely on the volume of traffic: port fees per
boarded passenger, catering for passengers, part of white personal
due to larger no. of passengers.
• In maritime traffic fixed costs prevail, while the share of variable in
total costs is relatively small.
….
• In liner transport prices are calculated to cover costs and ensure
adequate profit – but they are under influence of diferent factors
such as: competition from other carriers or traffic modes, state
protectionism, financial support by the state, etc.
• In cruising, price of the service is an integral part of the entire
journey, so it should be suitable for the tourist demand in the that
segment of the market.
Inland Waterways – Costs and Prices
• Similar to maritime traffic, fixed costs are dominant, but total amount
is lower due to smaller ships.
• Service prices are affected by the competition of road and railway
traffic, because of this, low price is the only way to compete
somehow, in the field of passengers’transport.
• In cruising and excursions price is a product of an agreement between
carrier and touroperator.
Cyclical oscillations of Traffic Demand and the
Impact on Economy
• Traffic demand varies depending on numerous factors.
• Traffic capacities(means and infrastructure), are unchanging.
• The consequence of this is that in some periods traffic offer is more
than sufficient to satisfy demand, moreover there is a capacity
reserve; while in some other periods traffic demand is greater then
the offer, so part of demand remains unrealized→passengers, of
course, express dissatisfaction, if it is about tourists, tourist offer
remains unrealized.
• Because of previous it is important to research, monitor and forecast
the trend of traffic demand in order to harmonize to traffic offer.
……
• The phenomenon of having more capacity than demand is
overcapacity.
• The phenomenon of having less capacity than demand is
undercapacity.
• A bottleneck is the largest gap between traffic demand and supply in
a traffic flow→the lowest supply and the highest demand which leads
to a stoppage in the traffic flow.
……
• All activities producing services face the same fundamental dilemma:
• How to produce sufficient volume of services when needed,
• Which demand is the one to which the capacity has to be
dimensioned,
• What to do with overcapacity in periods of reduced demand,
• What are the acceptable amounts of overcapacity and undercapacity,
• How to coordinate capacity use, in conditions of oscillations, on short-
time level with the long-term process of increasing demand and
capacity.
……
• Some general remarks(„recepies”):
• The dynamics of building/increasing capacity should be aligned by the
increase of demand
• According to mobility principles(EU guidelines) existing capacity
should be used as long as possible; building new infrastructure is
advisible when there is no other sollution to meet the growing
demand
• Building infrastructure according to phases whenever possible: this
enables more alignement between demand and offer, as well as less
discrepancy between costs and earnings(from total amount of prices)
……
• The level of capacity use has to be carefully investigated according to
trends in demand – it is optimal to activate a new(or extended)
capacity approximately when the old one will be fully used.
Oscillations: Concept and Types
• Oscillation is a difference between the highest and lowest demand.
• Types: daily(people’s activities linked with everyday life organization),
weekly(related to wotking rhythm), seasonal(linked to tourism season),
occasional(related to holidays) and cyclical (sometimes seasonal..)
• Oscillations related to tourism demand differ from destination to
destination, depending on offers’characteristic.
• For transport compenies they are cause of difficulties → for what size
of demand should the capacity be dimensioned?
 Transport companies dimension their capacities according to
different criteria
• According to the highest demand – from the point of view of
stakeholders in tourism - the best situation, because all demand will
be satisfied
• At the same time the worst situation for a transport company,
because the period of minor fullfilment of capacity will be
longer→larger income will be realized sometimes while high total
costs (conditioned by a large capacity)will be present all the time.
• Characteristic for state owned companies – only state can
compensate losses in business.
…..
• According to average demand – used by smaller transport companies
that meet tourism demand with not so expressed fluctuations , as
well as tourism agencies that dispose of their own transport means
• Capacity is, as a rule, determined empirically(smaller companies
cannot pay for market research)
• According to the highest profit – private companies in conditions of
strong competition on the market.
• Large companies that can allocate funds for market research, and can
create several scenarios and models, chose the optimal one to reach
the highest income and profit.
……
• According to constant capacity usage – small private companies that
strive for the highest operational capacity fullfilment.
• Capacity is determined empirically, and according to the smallest
demand →in this way the highest level of capacity occupancy is
achieved.
• A large part of demand is probably remaining unrealized, leading to
dissatisfaction of tourist companies.
Measures to Mitigate Oscillations

• Demand oscillations cannot be eliminated, only mitigated.

• Measures of transport companies:
• Pricing policy – lower prices in periods of lower demand, higher prices
in periods of higher demand,
• Rental or distribution of the capacity(means) in periods of reduced
demand,
• Temporary non use or sale of means,
• Hiring means in periods of high demand,
• Finding new jobs in times of reduced demand
……
• Measures of transport companies in cooperation with other
companies:
• With travel agencies creating new products when demand is reduced,
• With potential travel organizers (schools, religious communities..) in
times of reduced demand.
Questions & Remarks!?