Tourism in Business

(TRS041)
Aishath Shany Habeeb|MNUBS|HC
shany.habeeb@mnu.edu.mv
Passenger
Transport
Chapter Four

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Transportation Industry

The development of transport is a key factor in the growth

and direction of the development of tourism

Different modes of transport helps to connect destinations

Some modes to discuss in this chapter:

Transport by air

Tourist transport by water

Tourist transport on land

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Transport by Air

Air travel has, over the past four decades, made short-,
medium- and long-haul destinations accessible to an extent
not previously imaginable

It has substantially contributed to the phenomenon of

mass market international tourism

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Airline Business
Enormous progress in aviation technology has occurred,
especially following the development of the jet airliner
after World War II

The first commercial jet (the De Havilland Comet, operated

by BOAC) came into service on the London–Johannesburg
route in 1952

Both engine and aircraft design have since been

continuously refined and improved

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Airline Business
The next phase in this development arrived in 2008, when
the Airbus ‘superjumbo’ A380 – a double-decker aircraft
seating between 550 and 800 passengers – entered service
(initially with Singapore Airlines), promising further
economies of scale

The introduction of these huge new aircraft posed other

problems:

• Need longer runways

• new methods of ground handling had to be devised

• Need extensively redesigned terminal

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Airline Business
The motivation behind the development of such large
aircraft is not simply efficiency

Also helps to overcome problems caused by growing

congestion at airports

With a reduced fuel burn per passenger, the carbon

footprint of the airline will be reduced

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Airline Business
With a reduced fuel burn per passenger, the carbon
footprint of the airline will be reduced

To achieve weight reductions, some airlines have reduced

the number of beverages carried, withdrawn seat phones,
replaced divisions between classes with curtains and even
withdrawn or reduced the number of pages in their in-
flight magazines

Short take-off and landing (STOL) aircraft helped to

revolutionize business travel, allowing airports to be sited
much closer to city centers
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The Organization of Air Transport
• Civil aviation business composes of:

• Equipment manufacturers: made up of companies

manufacturing commercial airframes and engines

• Airports: either state owned or privately owned or mixed

ownership. A good balance of passengers to freight helps to
maximize their profitability. Earns income from duty-free shops,
airline fees

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The Organization of Air Transport
• Civil aviation business composes of:

• Air navigation and traffic control services: Air traffic control

(ATC) has the function of guiding aircraft in to and out of
airports, giving pilots (usually in the form of continually
updated automatic recordings) detailed information on ground
conditions, wind speed, cloud conditions, runways in use and
the state of navigation aids

• Airlines

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The Organization of Air Transport
• Airlines: three distinct categories of services

• Scheduled: operate on defined routes, domestic or

international, for which licenses have been granted by the
government or governments concerned. The airlines are
required to operate on the basis of their published timetables,
regardless of passenger load factors

• Airlines operating on major routes between hub airports within

a country are known as trunk route airlines

• Those operating from smaller, generally rural, airports into

these hubs are referred to as regional or feeder airlines (also
called commuter airlines) 11
The Organization of Air Transport
• Airlines: three distinct categories of services

• Scheduled:

• Low cost low fare (LCLF) carriers – has been the major
development in scheduled service operations in the past
decade

• Boutique airlines, which focus on niche markets on routes

where they can cherry-pick higher fare-paying passengers

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The Organization of Air Transport
• Airlines: three distinct categories of services

• Charter: do not operate according to published timetables, nor

are they advertised or promoted by the airlines themselves.
Instead, the aircraft are chartered to intermediaries

• Air taxi: Air taxis are privately chartered aircraft accommodating

between 4 and 18 people, used particularly by business
travelers

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Air Transport Regulation- Need for
Regulation

First and foremost, airlines had to be licensed and

supervised to ensure passengers’ safety

Regulations are needed to control noise and pollution

As air transport has a profound impact on the economy of

a region or country, governments will take steps to
encourage the development of routes that appear to offer
prospects of economic benefits and discourage those
suffering from overcapacity

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Air Transport Regulation- Systems of
Regulation
Air transport operations are regulated in three ways:

Internationally, scheduled routes are assigned on the

basis of agreements between governments of the
countries concerned

Internationally, scheduled air fares are now subject to

less and less control and, in both North America and
Europe, airlines are free to set their own fares

National governments approve and license the carriers

that are to operate on scheduled routes, whether
domestically or internationally
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Five Freedoms of the Air
These privileges are to:

1. fly across a country without landing

2. land in a country for purposes other than the carriage of

passengers or freight – to refuel, for example

3. offload passengers, mail or freight from an airline of the

country from which those passengers, mail or freight
originated

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Five Freedoms of the Air
These privileges are to:

4. load passengers, mail or freight on an airline of the

country to which those passengers, mail or freight are
destined

5. load passengers, mail or freight on an airline not

belonging to the country to which those passengers, mail
or freight are destined and offload passengers, mail or
freight from an airline not of the country from which they
originated

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The Deregulation of Air Transport
It is the deliberate policy of reducing state control over airline
operations and allowing market forces to shape the airline
industry

Within a decade of deregulation, more than 100 airlines

(including 2 out of 3 of the newly launched airlines) had been
forced out of business or absorbed as profits changed to losses

A second consequence of deregulation was the development

of hub and spoke systems of operation – feeder air services
from smaller ‘spoke’ airports provide services in to the hubs to
connect with the onward long-haul flights of the mega-carriers

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Economics of Airline Operation

Development of hub and spoke systems

Growth of strategic alliances

Code-sharing

Airline costs

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The Future of Air Transport
• Aviation experts agree that the development of jet aircraft has
reached a plateau – productivity and efficiency being unlikely
to substantially improve

• The most interesting area of speculation is the progress

towards the development of hypersonic flight

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Types of Water Transport
Line voyage services are those offering passenger transport
on a port-to-port basis rather than as part of a cruise

Cruising: Pleasure voyages, where the voyage itself and the

ship’s amenities are part of the experience, as well as the
different destinations along the way

The term ‘ferry’ is one that embraces a variety of forms of

short-distance water-borne transport

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Types of Land Transport
Road and rail passenger transport: Rail transportation has
seen some dramatic improvements over the past decade

The term coach is used to describe any form of publicly or

privately operated road service for passengers, other than
local scheduled bus services

Private car and car rentals

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