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THE TRAVEL AND TOURISM INDUSTRY

UNDERSTAND AND EXPLAIN THE STRUCTURE OF THE INTERNATIONAL
TRAVEL AND TOURISM INDUSTRY
Definition of Travel: is the movement of people between distant geographical locations.
Definition of Tourism: is travel for pleasure or business; also the theory and practice of
touring, the business of attracting, accommodating, and entertaining tourists, and the business
of operating tours.
Explain the structure of the travel and tourism sector
Structure of the travel and tourism sector: The tourism sector can be broken up into
different sector because it is a huge industry. These could be categorised as mentioned below:
 Transportation: Transportation is most essential factor of tourism as it the means of
reaching the destinations for tourists. People use different types of transport service
which include Airlines, Railways, Taxis, Cruise liners etc.
 Accommodation: Another important aspect of the travel and tourism sector is the
accommodation. Tourists travelling away from home need a place where they can
stay and this consist of different organisations which provide accommodation with
some extra services like food & beverages and entertainment services to the visitors.
Hotels, resorts, camping grounds are some examples of accommodations provided
by the organisations.
 Information and coordination: When tourists visit a new place they require some
information about that place and in the tourism industry there are many subsectors
where the tourists can get important support services like: Tourists information
centres, travel guide publications, tourism authorities, tour guides etc.
 Tour operations and wholesalers: Tour operators and wholesalers hold a large place
in travel and tourism sector because they provide bulk services in the form of
packages to the tourists, for example Thomas Cook provide services which includes
flight expenses, accommodations, tours, attractions, tickets in a combined travel
package. These wholesalers provide travel packages locally and for overseas
destinations. A day trip to a specific attraction or region is the tours provided by the
local tour operators.
 Attractions: Attractions are the primary motivations for the tourists to travel. Tourists
lure for attractions to travel to a destination. Many tour operators combine different
attractions into a packaged tour for the tourists while some attractions are sold as
standalone tour to the tourist. Attractions could be classified into different categories.
Some are free while some comes at a price. Attractions can be segmented into:
1. Natural for e.g. parks and zoo
2. Historical e.g. Buckingham palace
3. Cultural e.g. Art galleries, theatres

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4. Manmade e.g. Madam Tussads

5. Entertainment e.g. cinemas, amusement parks
 Meeting and events: Large scale corporate enterprises conduct meetings, conferences
and exhibition tourism across the globe. In this competitive industry a sector which
conduct these types of events contribute significantly due to the size and cost involved
in staging these events. MICE is a term given to meetings, incentives, conferences and
exhibition tourism.
 Travel Agents: We approach a travel agent when we plan to visit a new place or
country because they act as an intermediary to the customers by selling tourism
services provided by other businesses. Travel agencies provide services like travel
advice, ticket sales, visa information and insurance needs by targeting different
consumers like general public or corporate markets.
Awareness and Roles of:
 Travel Agencies
A travel agency is a business that operates as the intermediary between the travel industry
(supplier) and the traveller (purchaser). Part of the role of the travel agency is to market
prepackaged travel tours and holidays to potential travellers. The agency can further function
as a broker between the traveller and hotels, car rentals, and tour companies. Travel agencies
can be small and privately owned or part of a larger entity.

 Online Travel Agents (OTAs)

Increasing numbers of FITs are turning to online travel agents (OTAs), companies that
aggregate accommodations and transportation options and allow users to choose one or many
components of their trip based on price or other incentives. Examples of OTAs include
Booking.com.
 A Tour Operator
A tour operator packages all or most of the components of an offered trip and then sells
them to the traveller. These packages can also be sold through retail outlets or travel
agencies. Tour operators work closely with hotels, transportation providers, and attractions in
order to purchase large volumes of each component and package these at a better rate than the
traveller could if purchasing individually. Tour operators generally sell to the leisure market.
Tour operators may be inbound, outbound, or receptive:
 Inbound tour operators bring travellers into a country as a group or through
individual tour packages (e.g., a package from China to visit Canada).
 Outbound tour operators work within a country to take travellers to other countries
(e.g., a package from Canada to the United Kingdom).
 Receptive tour operators (RTOs) are not travel agents, and they do not operate the
tours. They represent the various products of tourism suppliers to tour operators in
other markets in a business-to-business (B2B) relationship. Receptive tour operators
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are key to selling packages to overseas markets (Destination BC, 2014) and creating
awareness around possible product.
Understanding The Impacts Of Tourism
Evaluation of positive and negative economic, environmental and social impacts on
tourism
In developing countries and rural areas, tourism brings many social and economic benefits,
but negative effects are also associated with mass tourism. The positive and negative impacts
of economy, society and environment are discussed below:
Economic effects
 Positive effects: Direct employment within the tourism industry and indirect sectors
such as retail and transportation are the areas of jobs created by tourism. When people
spend their wages on goods and services, it creates a multiplier effect which leads to
generation of more jobs. Many small scale industries in the rural communities take
benefits of the tourism industry which help them generate extra revenue. The revenue
generated in the form of airport taxes and hotel taxes is used for schools, hospitals and
housing.
 Negative effects: Tourism jobs are often seasonal and poorly paid, however tourism
can help push up the prices of local properties and the cost of goods and services.
Success of tourism relies on establishing a basic infrastructure and the cost of this
usually is burdened on the government, and the government makes these expenses out
of tax revenues. Multinational companies such as hotel chains takes benefit of the
tourism sector in a particular area and the local community does not always get the
full benefits. Sometimes tourism dependent places are affected negatively by
economic recession, natural disasters or terrorism.
Social effects
 Positive effects: Traditional customs, handicrafts and festivals that are neglected
otherwise are encouraged and preserved by the tourism and creates a pride for the
local community. Global awareness issues are raised such as human rights abuses and
poverty with the help of interactions between the hosts and the guests creating a better
cultural understanding.
 Negative effects: Sometimes the behaviour of visitors could have a detrimental effect
on the life of the local community. Crowding, congestion, drugs and alcohol
problems, increased crime levels are the examples of negative effects of tourism on a
society. Locals are even displaced from their land to make buildings for new hotels or
even barred from beaches which are a violation of human rights.
Environmental effects
 Positive effects: Ecotourism helps promote conservation of wildlife and natural
resources like rain forests which are regarded as tourism assets. Funds generated
through tourism helps maintaining animal preserves and marines parks by charging an
entrance and guide fees.
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 Negative effects: Environment is harmed by tourism as it poses a threat to region’s

natural and cultural resources including the water supply, beaches, coral reefs, cultural
heritage sites due to overuse. Pollution through traffic emissions and garbage left
behind by the tourists in public places leads to harmful effects on environment.
Strategies that can be used to minimise the negative impacts while maximising the
positive impacts of tourism
Poorly managed tourism can severely impact the environment of a tourist destination. A new
form of tourism known as eco-tourism is being adopted worldwide which is sustainable for
the environment as well as beneficial for the local population.
Some strategies are discussed below by which the negative impacts of tourism are
reduced:
 Tourists should be provided with an option of living with the locals instead of staying
in resorts and hotels which are constructed by displacing the locals from their land. In
this way tourists would be able to know how the locals live and understand their
culture which could be totally different from theirs. And it would also help the local
understand that the visitors come to their place to explore their culture instead of
changing to the lifestyle of the tourists.
 Informing tourists how they can keep the impacts on environment low by educating
them about the tourist destination.
 Local population should understand that environment protection is important for the
tourism and the benefits from this sector to the local community.
 Number of tourists to a particular destination should be controlled so that their is no
damage on the environment which would otherwise make the place unattractive.
 Strict laws should be enforced so that tourists should know what they can bring to the
location and what they can take back with them without causing any damage.
On the other hand tourism brings many positive benefits which could be maximised to
improve the sustainability of the environment. These impacts are listed below:
 Improving environmental management and planning
 Increased environmental education and awareness programs.
 Security and enforcement of environment laws and regulations should be improved.
 Financial help and contribution to develop local communities and protection of the
environment.
 The areas which are affected by poverty and unemployment, economic development
of these areas should be done by the government and local agencies thus creating new
employment opportunities.
Sustainable tourism can turn poverty areas into thriving economic development zones and
also significantly increase the revenue of the tourism business. Tour operators, hotels, resorts,
and destinations can contribute towards sustainable tourism, thereby reducing poverty,
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improving the lives of people and improving the environment which would lead our world to
a more sustainable path.

Understand the influence of local and national governments and international agencies
on the travel and tourism sector
Functions of government, government sponsored bodies and international agencies
on travel and tourism
“For the first time government has a tourism strategy that reaches right across Whitehall,
looking at policies from a tourism perspective. From cutting red tape on business, to visa
applications and airport queuing times, planning and infrastructure, this strategy
encompasses all the are as that have big impact on both the people holidaying in this
country and the business organisation so vital to the sector”.
Government plays an important role in the functioning of tourism sector. Strategic
decisions taken by the government ensures social and economic growth. But the
development and growth of a successful tourism sector is not about just about successful
tourism strategy. Government’s involvement in the tourism industry is necessary as in
any relative industry. The government must mobilize the tourism sector as a critical driver
of
 Economic
 Cultural
 Social
 Industrial
 Infrastructural
Development of the destination for its people and their future:
 Local government: Earlier there was solely the local government who were
responsible for the growth of tourism sector. In the early days of pioneering when
railway was emerging out to be a better transportation service, tourism started gaining
popularity. Local government functionedin a way similar to the national government.
The tourism sector is privatised industry and the growth of large resorts and hotels in
UK encouraged the development of local tourism administration to carry out the
responsibilities of the host destination.
 International organisations: There are a number of international bodies, both
governmental and government sponsered, with tourism interests. Government bodies
reflect the national government's interest in, and political will regarding, tourism
intervention. In the industrialized countries, the tourism priority tends to be low.
Because of the wide range of tourism activity the number of organizations with some
concern or responsibility is great, but coordination and often cooperation as at the
national level is weak. Furthermore, consultation with industry and operating sectors
is often inadequate, as the sector's voice is weak. The main sector industry bodies
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inevitably present the case of their own trade, sometimes as in modes of transport in a
competitive situation. Thus the collective tourism approach is hard to organize and
sustain, even when cooperation at the operating level is effective
 United Nations World Tourism Organization: The World Tourism Organization
(UNWTO/OMT) is a specialized agency of the United Nations and the leading
international organization in the field of tourism. It serves as a global forum for
tourism policy issues and a practical source of tourism know-how.
The WTO has made efforts recently to strengthen its links with commercial and non-
government partners through its system of affiliate membership which should help in the
provision of practical guidance and as a basis for cooperative action.
Influences of local and national economic policy on the success of the travel and tourism
sector
The success of the travel and tourism sector is influenced by the economic policy in a
number of ways.
First, we would understand the factor with a help of an example. Suppose a building of a
hotel or resort in a particular town is subsidised by the local government, the tourism
industry will presumably take benefit of this advantage. This is one of the ways an
economic policy of the government directly impacts the tourism industry and this type of
impact would occur when explicitly aimed policies are made by the government aiming
towards tourism industry.
Secondly, economic policies of the government which affect the tourism indirectly.
Monetary policies of the government are mostly not aimed at tourism industry, but these
monetary policies cause a fluctuation in the exchange rate of its currency, and if the
currency falls, tourism will eventually increase because the vacation in the country will
become less expensive for people in other countries.
Implications of political change on the travel and tourism sector in different countries
Tourism has been proclaimed the largest industry in the world. “According to the World
Tourism Organization, international tourists’arrival reached 922 million worldwide in
2008 and isforecasted to reach 1.6 billion by 2020. As such, tourism is acknowledged as
an important economic sector for many countries.”
Change is normal in politics as it is in tourism. Politics and tourism share a relationship
consisting of relatively small sub-field of the social science of tourism. Tourism is
affected by global economic and political trends and relation between nations. In recent
years, tourism has become closely implicated in political action and activism and the
reason is that tourism is now seen and used as a tool for economic and political change.
Tourism is used to initiate political discussions, increased pressure for fair trade and
poverty reduction through tourism clearly reflect the growing link between these two
fields. A greater politicisation of tourism has happened with a complex political context.
The economic and social consequences of the fall of communism in Eastern Europe and
the adaptive re-invention of Communist societies in Asia continue to have repercussions

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on the global stage and at the level of specific destinations within these regions, as does
the rapid changes in the European Union.
Earlier this year UK voted out itself from the European Union. This political change is
going to affect the tourism industry of UK. The number of visits by Europeans to the UK
is more than double that of visits from residents in the rest of the world. European Union
states are now requiringhaving visas to travel to UK likewise Britons travelling to
European Union are required to have visas. For e.g. if a French family is looking to visit
Spain or UK,there are pretty much chances of them choosing Spain over UK where they
would not require visas, no extra costs.
Understand the effects of supply and demand on the travel and tourism sector
Factors affecting tourism demand
Tourism demand can be defined as a term which covers the factors governing the level of
demand, different types of demand, important characteristics of demand and the motives
behind making such demands. Demand is defined as “a schedule of the amount of any
product or service that people are willing and able to buy at each specific price in a set of
possible prices during some specified period of time”.
Individuals are responsible for generating tourism demand in a particular place called
“tourism destination”. Seasons and time are some factors which affect the demand of
tourism industry.
Three types of demand are identified, namely actual, suppressed and latent demand
Tourists directly involved in the actual process of tourism refer to the actual demand or
also called effective demand. Two categories of people who are unable to travel due to
any circumstances. The first category of people includes the potential travellers who may
travel at a later period of time and are not able to travel at the current point of time.
Second, the people who postponed their travel due to problems in the supply environment
which is known as deferred demand. Latent demand which is of third type relates to the
spatial and temporal expression of demand at specific destination. Some factors which
motivate people to travel and create a demand for tourism industry are leisure, holidays,
business and professional engagements, health and care treatments, religious
pilgrimages or other personal motives. These factors create a demand for accommodation.
Depending upon the economic, psychological, geographic and political factors tourism
demand could be defined in various ways.
Other factors which affect the demand for tourism are described below:
 If the income of the consumers decreases, the demand for tourism drops.
 Tastes of the consumer. This can be described with a help of an example. Let’ssay , if
vacations go out of style and consumers believes that it is better to stay at home rather
than enjoying vacation at an exotic destination the demand for tourism drops.

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 The cost of complementary goods. Air travel is seen as a complimentary good to

tourism sector, and when the prices of air travel rises up the demand for tourism will
eventually decrease.
Few studies have been conducted in the UK to estimate how tourists reacted to changes in
prices and taxes. Use an econometric model to measure the sensitivity of tourism demand
in the UK to changes in price rates, exchange rates and expenditure. Due to the price
changes in the UK the price elasticity of tourism demand in competing destinations is
positive. It is suggested that international visitors are affected by the changes in price of
tourism in UK.
Changes in supply to meet the effects of demand
Tourism supply has to do with the provision of the key elements of the tourism industry
with the provisions of the key elements of the tourism industry by the host governments
or destinations. Natural to man-made resources are required for tourism supply.
Telecommunications, accommodation and transportation are the infrastructure required in
tourism industry. Travel agencies, tourist offices, visitor manager and hire companies are
other services required in tourism industry. A concept of “tourist supply chain” originated
from economics which is used to explain how different businesses enter into contractual
agreements to supply services, products and goods. A wide range of suppliers providing
services to the tourism sector are well suited in the supply chain.
Tourism supply can also be explained through the distribution system in tourism analysis.
There are four components in the distribution system namely suppliers of tourism
services, the distributors of information, travel intermediaries and consumers.
Supply components comprises of four different elements:
 Natural or environment resources which involves environmental awareness, nature
conservation, eco-tourism and natural resources which are used to ensure the
sustainability.
 Built or man-made resources which include constructions such as water supply
systems, sewage disposal systems, power lines, road, etc and other recreational
facilities
 Transportation which is an essential factor of tourism industry, as without it tourists
can’t reach any destination.
 Hospitality is another resource which is integral to tourism offering.

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 FEATURES OF WORLDWIDE DESTINATIONS
THE MAIN GLOBAL FEATURES

Worldmap(pic)
A destination is the place where a journey finally ends. It can be a town, city or resort, a
tourist attraction, such as a major theme park or a much larger region such as a National Park.
Most locations around the world contain a place or a region which is regarded as being a
tourist destination. Such locations will usually display many of following features:
• information services, example tourist information centre,
• a range of visitor attractions, including theme parks, museum, gardens and/or
children’s activities area,
• enough parking spaces for day visitors.
• accessible location for the mass market,
• accommodation and catering facilities,
• shopping facilities for the visitor,
• a character of their own.
The main global features
Travel and tourism has some very important geographical aspects. Tourists leave home,
travel to reach a destination, interact with economic, cultural, and physical landscapes at that
destination and finally return home. During their stay away from home, they have a wide
range of experiences all strongly influenced by prevailing conditions at their chosen
destination.
The location of major continental Sand masses, oceans and seas
The world map shown above clearly identifies the earths continents and oceans. The map also
shows that the northern hemisphere has more land and that the southern hemisphere has most
of the water area.
The location of the world's major cities in relation to their Importance as major
transport hubs and destinations
► It is important to realise that all the world’s major cities are not necessarily important
tourism destinations. For an urban area to be classed as a major city, it simply requires
for there to be a large population size.
► Similarly, just because a city has a busy international airport does not mean that each
international passenger will be a tourist visiting that particular city.

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 City Visitor estimates (millions)

Bangkok 20.2

London 20

Paris 16.1

Dubai 16

Singapore 13.45

Tokyo 12.5

Seoul 12.44

New York 12.4

Kuala Lumpur 12.1

Hong Kong 9.25

Let us now briefly look at some aspects of Dubai’s location in relation to its importance as a
major transport hub and destination. The world maps shows Dubai’s geographical location
(55E, 25N) on the southern shore of the Arabian Gulf.
► It is strategically located at the crossroads of three continents - Europe, Asia and
Africa - a natural meeting place. Dubai is now a major aviation hub, the governments
‘open skies’ policy has resulted in Dubai International Airport being served by over
100 airlines, with connections to more than 140 cities worldwide.
► Dubai has a very accessible location and in terms of flying times: London is seven
hours away, Frankfurt is six, Hong Kong eight and Nairobi four. These facts give
Dubai a very wide catchment area. Business events in Dubai attract delegates and
trade visitors from around the world. This catchment area covers the Gulf States,
other Arab countries like Iran, the Asian subcontinent, East Africa, Central Asia and
the Commonwealth of Independent States (CIS).

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DIFFERENT TIME ZONES AND CLIMATES
The world map shown indicates clearly that the surface of the earth is not uniform, the
continents and oceans occupy different positions relative to each other.
► The map has certain significant lines of latitude marked on it. The lines of latitude
indicate distance away from the equator, in both the northern and southern
hemispheres.
► The position of any location on the earths surface can be described in terms of its
latitude, measured in degrees, north or south of the Equator.
► Similarly, lines of longitude indicate a locations position east or west of the
Greenwich. The fact that the earth is round means that there has to be a point where
east meets west.
Positions relative to Greenwich are indicated bylines of longitude, measured in degrees, from
0 to 180 East and from 0 to 180 West. Both sets of lines have significant implications as we
shall now investigate
Relationship between global position and time zones
In 1878, Canadian Sir Sanford Fleming proposed the system of worldwide time zones that we
use today. He recommended that the world be divided into twenty-four time zones, each
spaced 15 degrees of longitude apart. Since the earth rotates once every 24 hours and there
are 360 degrees of longitude, each hour the earth rotates one-twenty-fourth of a circle or 15
degrees of longitude.
All of China (which should span five time zones) uses a single time zone - eight hours ahead
of Coordinated Universal Time (known by the abbreviation UTC - based on the time zone
running through Greenwich at 0 degrees longitude). This is also frequently referred to as
Greenwich Mean Time or GMT. Australia uses three time zones - its central time zone is
half-hour ahead of its designated time zone. Several countries in the Middle East and South
Asia also utilize half-hour time zones.
Relationship between global position and physical environment
The climatic conditions found at particular destinations can be a strong attraction for the
visitors.
► Climatic conditions on the surface of earth vary with latitude. Key lines of latitude
such as the Equator, the tropics of Cancer and Capricorn and the Arctic and Antarctic
circles allow us to make simple generalisations about the climatic conditions to be
found in nearby locations. It is therefore, quite common to see reference being made
to the following:
• Equatorial latitudes (between 5 degrees
North and South of the Equator);
• Tropical latitudes (anywhere between 23.5
degrees North and South of the Equator);

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 • Sub-Tropical latitudes (between 23.5 and
approximately 30 degrees North and South of the Equator);
• Temperate latitudes (between approximately 30 and 50 degrees North and South of
the Equator);
• Arctic latitudes (around 66.5 degrees
North and South of the Equator);
• Polar latitudes (anywhere between the
Poles and 66.5 degrees North and South).
The characteristics of the worlds major climatic environments can be summarised as follows:
• Equatorial such as Brazils Amazon region
- hot, wet and humid all year;
• Tropical such as African Savannah
- no cold season but summer rains;
• Tropical Monsoon such as India
- no cold season but heavy summer rains;
• Tropical Desert such as North African Sahara
- no cold season and negligible rain;
• Warm Temperate such as Mediterranean
- hot dry summer, cool wet winter;
• Cool Temperate such as USA/Canada border
- cold winter, hot summer, even rainfall;
• Arctic such as Scandinavia
- harsh cold winter with snow, cool summer with rain;
• Polar such as Greenland - snow and ice prevail for most of year.
Each major climatic zone may present natural hazards, depending on the time of the year,
which the visitors will have to make allowances for and travel consultants need to be aware
of what such hazards are and the locations that are at risk.
Some of the more significant ones for international travellers include:
• Tropical storms (hurricanes, cyclones and typhoons)
• Monsoon rains (see Bangkok’s climate graph Fig. 2.7)
• Monsoon winds (influencing beach conditions in Sri Lanka for example)
• Drought conditions in dry summers and subsequent danger of bush fires.
The influence of climate on tourism
The table above clearly shows that Bangkok is a very important destination for visiting
tourists. One of the main attractions for visiting Thailand is the country’s climate. Bangkok is
located in Tropical latitudes (13,45 N and 100,30 E).

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 ► The climatic graph for Bangkok shows that the destination is generally very hot,
particularly between March and May. The monsoon season runs from June to
October, when the climate is still hot and humid with torrential rains.
► The best time for travelling is November to February because this is the dry season
and the temperatures is not too high. Usually, the period when climatic conditions are
at their best will be the high season for tourism.
Some sources containing climatic information will also list average hours of sunshine and
may also include the destination’s height above sea level; the latter is because temperatures
tend to decrease with increasing altitude.
For example, although much of Kenya is Equatorial, it occupies a high plateau land and thus
average temperatures are cooler, and it is significantly less humid than in the adjacent
equatorial lowland of Zaire.
Such points will clearly be of interest to travellers contemplating an East African safari
holiday.

The possible effects of global warming and climate change on tourism

► The First International Conference on Climate Change and Tourism was held
successfully in Djerba, Tunisia, from 9th to 11th April, 2003. More than 150
participants from 42 countries and six international organizations gathered at this
event that was convened by the WTO.
► The conference considered some of the threats to tourism on the global scale. In
particular, 2 environments which are vital for tourism activities and where tourism is
an equally vital component in regional and local economies are coastal zones and
mountain regions.
► The threat of climate change puts tourism at risk in many destinations and important
market changes could result.
For example, seaside tourism seems likely to suffer damage from most of the effects of
climate change, notably due to beach erosion, higher sea levels, greater damage from sea
surges and storms, and reduced water supply.
However, while some regions may see a lessening of demand from leisure travellers, other
destinations currently less important for tourism may see an increase.
► In mountain regions, it seems very probable that ultimately demand for winter sports
will diminish. The season will shorten, opportunities for young people to learn the
sports will diminish, and demand pressures on high altitude resorts will increase
(which in turn could raise environmental pressures and cause further damage).
Summer seasons, meanwhile, could lengthen, and generate increased demand,
although this could bring further negative environmental consequences.

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THE NATURE OF DESTINATIONS
All destinations have a carrying capacity and they can be altered through overuse. In other
words, a destination is perishable. This is most apparent in wilderness areas where the
environment can be severely altered by tourism developments.
Measures which can be taken by the national parks management to prevent this include:
 Constructing hard wearing, user-friendly paths,
 Ensuring effective water drainage, which is fundamental to a successful path
management,
 Carrying out regular maintenance tasks such as clearing water gullies, removing
gravel and repairing minor damages,
 Reducing grazing pressures,
 Resting routes such as temporarily changing the line of the path particularly in the
early stages of erosion,
 Fertilising and reseeding which may be used on its own or in conjunction with the
resting of routes,
 Fencing is an extremely sensitive issue because of the access dilemma but it can be
used on its own or in conjunction with other methods, making vegetation recovery
possible.
Tourists can travel for many different purposes such as leisure, business and for visiting
friends and relatives. However, there are now many other quite specialised reasons for
international travel such as:
 Pilgrimages or other religious journeys to destinations like Jerusalem, Lourdes and
Mecca;
 Sporting trips such as following a cricket or rugby team in a competition abroad or
attending an international event like the Olympic Games or a Formula 1 grand prix;
 Educational trips to study centres, for courses or important sites;
 Medical treatment visits.
All these different types of tourist activity can only take place if the destination provides the
appropriate facilities.

Tourist destinations as amalgams

Tourism is an amalgam of visitors’ consumption of goods and services which include
transportation, accommodation, food and beverage, recreation and entertainment, travel and
tour operations and local products such as souvenirs.
In many destinations, it is envisaged that tourism will be one of the pillars of development, a
sustainable source of national revenue and a decent employment and poverty reduction tool.

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This clearly implies that, within each particular tourist destination and surrounding area, there
will be a series of inter-relationships between the different component sub-sectors that
contribute towards the overall tourist experience.
Implications of viewing destinations as amalgams
Different tourist destinations are well defined geographical regions, understood by visitors as
unique entities with a core of six main provisions, i.e.
 Attractions and Activities
 Accessibility
 Available packages
 Ancillary services
WTO states that a tourist destination is: a physical space in which visitors spend at least one
night and is made up of tourism products such as support services and attractions, and
tourism resources with physical and administrative boundaries that define its management,
images/ perceptions of market competitiveness
► The attractiveness of a destination reflects the feelings and opinions of its visitors
about the destinations perceived ability to satisfy their needs.
► The more a destination is able to meet the needs of the tourists, the more it is
perceived to be attractive and the more the destination is likely to be chosen.
► The attractiveness of a tourist destination encourages people to visit and spend time at
the destination. Therefore, the major value of destination attractiveness is the pulling
effect it has on tourists.
Without the attractiveness, tourism does not exist and there could be little or no need for
tourist facilities and services.
Example
► Angola is one of the worlds poorest countries. Development was severely restricted
by the 27-year long civil war that broke out upon independence in 1975, which
destroyed the majority of the country’s infrastructure.
► Since the end of the war in 2002, the government has initiated extensive infrastructure
reconstruction and development projects, and there are growing signs of economic
recovery.
► However, Angola still faces challenges with its infrastructure and with providing
government services, especially in basic social services, aviation and travel safety,
accommodation availability and quality and communications.
► Facilities for tourism, particularly outside the capital of Luanda, are often
rudimentary.

7
The features which attract tourists to a - particular destination
► Different people will be attracted to particular destinations for a variety of reasons.
However, as a general rule, it is useful to think about the attractiveness of any
destination in terms of the following key features:
 Scenery and landscape
 Vegetation and wildlife
 Historical and cultural attractions
 Modern built attractions
 Indoor/outdoor activities
 Accommodation options
 Events and festivals
 The weather and climate of the area
 Food/drink and entertainment facilities
 Accessibility and gateways in the area.
► The above features will be attractions for different types of visitor.

8
 UNIT 03: CUSTOMER CARE AND WORKING
PROCEDURES
Deal with customers and colleagues – “the moment of truth”
Dealing With Customers
► The term customer service is used to embrace all elements of customer- organisation
contact. It includes the concept of customer care or caring for customers that is, all the
related aspects in looking after customers when they interact with the organisation.
Customer service includes all direct and indirect contact with the customer. There are
many different situations in which customer service is provided, example:
 receiving and passing on messages,
 dealing with dissatisfied customers,
 offering extra services.
 dealing with problems,
 providing information,
 providing assistance,
 keeping records,
 giving advice
THE MOMENT OF TRUTH
Deal with customers and colleagues
► One of the characteristics of the travel and tourism industry is that it caters to all types
of customers, from those barely able to afford the product to the wealthy, and from
the downright rude to the most honourable of people.
► Other customer types can be segmented based on factors such as age, sex and ethnic
origin. Contact between customers and the business is a complicated issue. There are
a number of external and internal ways in which communication is made.
Importance of following customer care policies
► Most organisations will have a customer service policy which describes their strategy
for looking after customers. The policy will emphasise how highly the organisation
values their customers.
► The term ‘customer is king’ is often used to describe the value which an organisations
places on their customers.
► The aim of any customer service policy will be to make customers feel satisfied and
valued so that they will want to return. Staff working in a hotel organisation must be
made aware of the policy, as this will help them to understand the benefits of good
customer service both for themselves and for the company.
► Many companies now organise specialist-training courses in order to ensure that the
staff provides the best possible service to their customers.
► In order to improve an organisations standard of customer care and to achieve
customer satisfaction all staff must be made aware of the customer care policy and
should both understand and appreciate why it is an essential part of the operation of
the company.
Competence standards
► Competence standards are designed to describe the action an individual needs to
follow to perform a task competently; they specify the ‘how’. For example, to present
a positive personal image to customers, employees should:
 Always treat customers in a courteous and helpful manner, even when in stress.
 Consistently maintain standards for appearance and behaviour.
 Ensure equipment and supplies used in transactions with customers are available, up
to date and in good order.
 Actively seek opportunities for improving working relationships with customers.
  Ensure that own behaviour consistently conveys a positive image of the organisation
to current and potential customers.
Necessity of good team work and training
► In the past thirty years or so, team working has grown in importance. Until recently,
roles at work were well-defined.
► In the traditional organisation, for example, there was a strict division of
responsibilities and most job titles conveyed exactly what people did. However, with
advances in technology and education, employers began to place a growing emphasis
on versatility, leading to an increasing interest in the concept of team working at all
levels.
► The gradual replacement of traditional hierarchical forms with flatter organisational
structures, in which employees are expected to fill a variety of roles, has also played a
part in the rise of the team.
► Hotels are a good example of travel and tourism organisations that rely on teamwork
and a well trained staff. Furthermore, because of the various departments or customer
service environments that exist, each area will have its own staff team.
► The key benefit of team work and staff training is improved operational efficiency
and this can be illustrated by reference to the work of a hotels housekeeping
department.
► The job and duties of an individual room attendant will vary and the work depends on
the style of hotel. For example, it may take an hour or longer to service a luxury suite,
with a sunken Jacuzzi, while in a hotel where the rooms are more basically furnished
and similar in style, room attendants will be expected to do 15 or more during their
shift. High standards of cleanliness are much valued by the guests.
► A methodical approach is essential to achieve this, to avoid spreading bacteria from
dirty surfaces to those that have just been cleaned and to complete all the tasks.
Hygiene is important to prevent risks to health, as are safe working methods when
using cleaning materials, equipment, and when lifting or moving.
Importance of courtesy, tact and diplomacy recognised, when dealing with customers and
any specific needs
► The guest then completes a registration record. The registration record includes the
following personal and financial items:
 Name and Surname of the guest along with billing address, telephone number and
other details such as car registration number,
  Passport number or other identification,
 Any special needs or requests,
 Credit card details,
 Guest signature.
► The receptionist is likely to be the person who first greets the guest on arrival at the
hotel. A good first impression can be created by the welcome the guest receives, the
business-like appearance of visible front line staff and the appearance of reception
area itself.
► Clearly, the ability to speak a foreign language will be of great importance when
dealing with international guests.
Dealing with customers and any specific needs
► Reception or front desk staffs needs to have good administrative skills so that they are
able to deal with reservations accurately and efficiently. They must deal with the
guest in an appropriate manner making sure that none of the sensitive details provided
by the guest are mislaid or left in public view.
► During the occupancy stage, the guest experiences the full range of hotel services.
Guest purchases at different revenue outlets are electronically transferred and posted
to appropriate guest accounts and these are maintained at the front desk for settlement
on or before final departure.
► At the departure stage, the guest leaves the hotel having settled their account. In
general, a proper checkout occurs when the guest:
 vacates the room,
 receives an accurate statement of the guest account and pays any outstanding amount,
 returns room keys and leaves the hotel.
Procedures for Handling Complaints
► Complaints should be dealt with as quickly as possible irrespective of their
seriousness.
► A complaint is very often a misunderstanding. It is important not to make the
customer feel guilty that he or she has wasted the company’s time.
► Complaints normally arise after a sale has taken place, but nevertheless it is more
economical to deal with the complaint properly and retain a happy client than having
to advertise for a new client.
► The complaints can come in a variety of forms
such as face to face, the phone or by post.
 ► The complaint may not be directed specifically at the person who answers the
complaint but as a representative of the business, that person may have to deal with it.
► When dealing with complaints there are a number of factors to take into account:
1. It is important to listen carefully to the customer. There are genuine complaints and
those which are not, but whatever the nature of the complaint, the sales assistant,
receptionist or whoever is dealing with the customer at that time should listen
carefully and keep an open mind.
2. Staff should never argue with the customer. The aim is to solve the problem in some
way or the other and getting involved in an argument will not achieve this aim.
Indeed, it is likely to make thing; a lot worse. If the individual staff member cannot
find a solution to the problem they should refer the issue to a supervisor/manager.
3. It is always important to agree the solution with the customer. This will mean that
the customer is fully aware of what will happen and will, at least, have had the
opportunity to give their basic approval to the solution.
4. a) The member of staff should apologise in general terms for the inconvenience
caused. However, if it seems that the complaint is genuine, then an apology should be
quickly forthcoming.
This apology should, in the first instance, be of a general nature, particularly so if the
person dealing with the complaint is a junior within the organisation. A more specific
apology could follow later possibly by letter or in person.
b) It is important to let the customer know that the matter will be fully
investigated and put right. In some case, the nature of the complaint is obvious and
there should be a refund made or an alternative provided. If necessary, the matter
should be fully investigated and action should be taken based on the results.
c) Staff should always try to see the problem from the customer s point of view.
This is not always easy but a good employee will understand the frustration of the
customer and that maybe the customer finds it difficult to complain. It may be that a
sympathetic hearing is all the customer wants and that the matter can be finalised
there and then.
Identify the essential persona! skills required when working in the travel and tourism
industry
► It is a very important customer service principle that you never get a second chance to
make a good first impression.
 ► At the start of this chapter it was pointed out that the welcome one receives when they
arrive and the quality of the service they experience during their stay strongly
influences the memories that one takes away about a particular establishment.
► Furthermore, the way that an employee presents himself or herself to customers is
directly relevant to both that persons enjoyment within the business and the success of
the organisation represented.
► The tourist guides main role is to escort groups or individual visitors from abroad or
from the guides own country around the monuments, sites and museums of a city or
region interpreting, inspiringly and entertainingly, in the visitor s own language the
cultural and natural heritage and environment.
► Most countries with considerable inbound tourism have seen fit to legislate and make
tourist guides undertake examinations leading to a qualification recognised by the
relevant regional or national Tourist Authority.
► We will now look at some of the most significant personal skills required by front line
staff working in the travel and tourism industry.
Importance of personal presentation, clear speech, numeracy and literacy skills
► The travel and tourism industry is a service industry. All customer service encounters
will, therefore, involve either face to face meeting or some other form of direct
communication. These moments of truth are frequently the basis on which the quality
of the overall service provision will be ultimately judged.
► Frontline staffs have a key role to play in this and so many organisations specify how
employees should present themselves to the public.
► Many international hotels, employing workers from many different countries, issue
quite extensive codes of conduct for their staff. As all staff members act as
representatives of the hotel company, they are expected to take pride in their personal
appearance, dress and general grooming. Cleanliness and personal hygiene are job
requirements.
► Good communication skills are important for all staff because of the many daily
interactions that will take place with both customers and colleagues.
► Communication is a two way process which can require the basic elements of
speaking, listening, reading or writing. One could say that communication takes place
when messages of various kinds are sent and received; so the communication process
involves senders and receivers of messages.
 ► There are several mediums that can be used to send messages to the receiver - verbal,
letter, fax, telephone, electronic mail etc.
► In any working environment there can be other barriers to effective communication
such as:
 Language problems - such as accent, if one of the parties comes from a different part
of the country or abroad;
 Prejudice - the sender may have already got pre-set views and is not prepared to
listen;
 Cultural differences - the receiver may receive the message correctly worded but due
to cultural differences take the message to have a different meaning;
 Complexity - if the message is too long or technical, it may not be properly
understood;
 Concentration - if the receiver has his/her mind on other matters, the message may
not be properly understood.
► Everybody working in the travel and tourism industry will, at some time have contact
with customers. This may be face to face, over the telephone in writing. The staff will
need to know how to communicate with customer and use different skills in different
situations.
Awareness of applications of technology
► There are a range of technological applications and, depending on the nature of the
particular department, it is common to see the following aspects used by most
providers:
 A website allows online booking and acts as a marketing tool.
 Databases aid direct marketing, and
 Finance systems help to streamline payments, accounts and stock control.
► Such applications increase efficiency in both front and back of house situations and
allow organisations to become more competitive.
► This benefits customers as well as the staff. A majority of customers like the ease and
convenience of using the Internet for booking travel arrangements.
► Arrivals and in-house guests are served using the front desk features of the property
management software. This technology handles individual guests, groups, and walk-
ins, and has features for room blocking, managing guest messages and wakeup calls,
and creating and following up on inter-department memos.
Follow basic procedures when handling customer enquiries, reservations and payments
 ► Customer satisfaction is affected by customer expectations about the service they will
receive. If the customer service they receive is different from what they expected,
there is always a danger that customer satisfaction will be lower than expected.
► Therefore, many organisations try to deliver the same customer service, time after
time, so that the service customers receive matches their
expectations and gives them
customer satisfaction.
Customer’s requirements correctly interpreted upon receipt of an enquiry
► All travel and tourism organisations will attempt to meet the various needs of the
customers. Most suppliers of goods and services will try to match availability with
customer requirements. For example, when hotel reservations are being made, there
should be an easy and efficient booking service that includes the following:
 Prospective clients are told clearly what is included in the prices quoted for
accommodation, meals and refreshments, including service charges, taxes and other
surcharges.
 Other information which may have an impact on the guests’ stay, such as smoking
policy, refurbishment work in progress, planned functions/events etc., should also be
provided.
 Where operational policy dictates that certain facilities need to be pre-booked (spa
treatments, dinner etc.) these should also be mentioned at the time of booking.
 Advance warning should be given if the restaurant is to be closed or likely to become
fully booked soon.
 Full details of the hotel’s cancellation policy should be provided if there is one. This
especially includes information about charging credit cards for cancellation or
changes to the booking.
 Information about deposits if required should also be mentioned, including details
of how the deposit is taken and whether or not it is refundable on cancellation.
 Clear explanation of charges for additional services or available facilities including
cancellation terms should be made available.
 Information about any unacceptable types of payment, example credit cards etc.
need to be clearly stated.
 Information and full details about any fees charged for the acceptance of credit cards
should also be provided.
Use reference sources to obtain information
 ► Most people planning a leisure trip will visit a local travel agency. Here they will find
a wide range of brochures which are often arranged according to the type of holiday.
► There may be a section on cruises, sections arranged by country, types of packages
such as villas and self-catering breaks etc., and special interests such as skiing, coach
tours and a host of others.
► There will also be brochures produced by transport providers such as ferry companies
or airlines giving details not only of their transport services, but also of their particular
range of inclusive tours. British travel agents distribute between six and ten brochures
per person booking a holiday.
► Travellers wanting to know more about particular destinations have a number of
options. Travel agency staff should have immediate access to a selection of guides
and manuals such as the OAG Flight Guide, the OAG Cruise and Ferry Guide, OAG
Gazetteers, OAG Holiday Guides and the OAG Guide to International Travel.
► They would be able to refer to these to answer specific questions about particular
destinations.
► Travel employees cannot be expected to know the answer to every question, but they
should know where to look in order to obtain appropriate information. For example,
the OAG Gazetteers contain independent reviews of resorts and accommodation in six
volumes covering the following:
 Mediterranean Hotels;
 Mediterranean Apartments;
 European Cities or North America;
 Long Haul;
 Ski, Lakes and Mountains.
Use of computerised information systems and relevant technology to obtain information
► The travel marketplace is a global arena where millions of buyers (travel agents and
the public) and sellers (hotels, airlines, car rental companies, etc.) work together to
exchange travel services.
► Among the ‘shelves’ on which buyers search for travel services are worlds global
distribution systems and the Internet distribution systems.
► These systems have become electronic supermarkets linking buyers to sellers and
allowing reservations to be made quickly and easily. Nowadays, more travel is sold
over the Internet than any other consumer product outlet.
 ► The Internet is a perfect medium for selling travel and tourism destinations as it brings
a vast network of suppliers and a widely dispersed customer pool together into a
centralised market place.
► Computer Reservation Systems (CRS) are used globally within the travel industry to
book a range of travel products such as flights, hotels, car hire etc. These are also
known as Global Distribution Systems (GDS).
Explore the presentation and promotion of tourist facilities
► You will learn all about the marketing mix in unit 5 but the concept of promotion, one
of the ‘4 P’s’ that make up the marketing mix, need to be considered here.

► Travel and tourism organisations provide a variety of products and services for sale to
the travelling public but potential customers must be made aware that such items are
readily available. Hence, there is a need for both the effective presentation and
promotion of such items.
► Advertising, public relations and sales promotion would be regarded as failures if the
sales were below the targets set.
► A sale is made when a customer undertakes to spend money in exchange for a
promise to deliver a product. That sounds simple but in practise a sale is the end of a
complex process involving initial awareness of what is available, consideration of the
options before but not always leading to the final decision to purchase.
► This complex system is particularly important with selling holidays as the product is
relatively high priced and there is a great deal of consumer choice available in the
market.
 ► Tills is where front line employees come into their own because they can very much
help with the actual selling process. Qualities of an employee involved with the
selling of a product or service include:
 enthusiasm, honesty, intelligence, initiative and friendliness;
 knowledge of the industry and the product;
 good judgement;
 consistency.
Brochures
► The brochure is a very good source of basic information about particular destinations,
attractions and facilities. It is common to find the following included:
 A map is included in most brochures and it
gives the location of the destination relative to
the point of entry, together with resort
attractions.
 A table of climate figures indicating what the
weather conditions will be like.
 A description of the facilities to be found in
selected types of destination accommodation.
 Photographs showing aspects of the natural
and built environment that people are likely to be interested in.
 Brief details of local places of interest and attractions
Promotional leaflets
► These are essentially mini-brochures acting as adverts for a particular product or
service.
► They are carefully designed to attract the eye and provide basic details about what is
on offer.
► Key factual information usually provided for the benefit of the potential customers
includes prices, timings and contact details.
Advertisements
► Most travel and tourism businesses use a variety of media, rather than a single source,
to get their message out to the public. The advertising components used, such as
brochures, newspapers, direct mail, and radio etc. should work together for broad
coverage of the target markets previously identified.
 ► Some media reach certain markets better than others, and different target markets will
use different media to get their information. They also use these media at different
times. Thus, no one medium can reach everyone at the same time.
► For most organisations their budgetary restrictions will limit their choice of
advertising to publications rather than on television or radio.
► The choice of publications in which to advertise is vast. In addition to local and
national press, there are also special interest magazines and tourist board guides.
Advertising usually has either tactical or strategic objectives.
► Strategic advertising is concerned with creating awareness of markets, and of
products, of developing an organisations identity and image. Strategic advertising
takes a more long term view.
► Tactical advertising is aimed at specific market segments and persuading them to go
to a particular place or buy a certain service, sometimes at a particular time or season.
Tactical advertising takes a more short to medium term view.
Internet
► Website features that appear to yield the most positive returns for national
destinations include:
 search facilities,
 special offers and packages advertised on the website,
 enquires page,
 samples of the particular culture of the county,
 subscription capabilities for regular email newsletters,
 information in different languages,
 virtual brochure rack,
 itineraries that include directions, photographs and dining suggestions,
 online packages of activity, sightseeing and cultural interest.
► It is especially important to properly profile the site with the main search engines (i.e.
to ensure that the site appears high in the list of search results). In addition, all
members of the tourism industry should be encouraged to promote the website and
become linked to it.
TOPIC QUESTIONS
Question 1
a) Explain three personal skills and qualities that ‘front-of-house’ travel and tourism
employees would be expected to possess.
(6 marks)
b) Explain why it is important for safari guides to have the following attributes:
• Local destination knowledge
• Good written and spoken English skills
• First aid training. (6 marks)
c) Discuss the procedures that a travel agent is likely to follow when handling enquiries
and making reservations. (6 marks)
d) Explain three ways in which the hotel’s range of water sport activities could be
promoted to resident guests. (6 marks)
 UNIT 04 - TRAVEL AND TOURISM PRODUCTS AND
SERVICES
Inter-relationships between travel and transport, catering and accommodation,
attractions, leisure and recreation and business facilities
► Travel and tourism providers rely on one another to provide additional components
supporting the overall experience a tourist enjoys from the moment they leave home to
the moment they return at the end of their holiday.
► Therefore, travel and transport principals (i.e. airline companies, ferry services etc.)
rely on the products of accommodation principals (i.e. hotel or guesthouse, campsite or
self-catering apartment owners etc.) in order to ensure that, once the customers have
travelled from one destination to another, they have somewhere to stay.
► Similarly, accommodation principals rely on the products and services of attraction
providers, in order to ensure that their customers have somewhere to visit during their
leisure time whilst in the destination.
► This reliance on one another’s products and services is often described as the inter-
relationship of different providers within the travel and tourism industry.
► Business travellers may require meeting venues, somewhere to stay and transfers from
and to the airport.
► However, they may also wish to visit the cultural attractions offered by the destination
while they are there. This allows for an inter-relationship between conference venues,
5 star hotels, an executive car rental provider and a local tour operator.
► Study the following advertisement for a new tour package and identify the various
‘inter-relationships’ of travel and tourism product and service providers within this
package.
Components included in different tourism products
► It is important to understand that many tourism products are made up of a range of
different components from the travel and tourism industry. Let us take a look at the
three main types of tourism product that are currently available.
A Package Product
► According to the European Package Travel Regulations of 1992, a ‘package’ comprises
of at least two of these components:
 transport;
  accommodation for at least one overnight stay; other tourist services (such as car rental,
recreational activity such as golf, or entrance tickets to a major theme park such as
Disneyland, Paris). These could also include transfers from the airport to the
accommodation or the services of a holiday representative at the destination.
 Traditionally, a holiday package is put together by a tour operator and is marketed and
sold to customers through a travel agent. It is a form of product bundling, which means
that several distinct products are ‘combined’ and sold at a special price.
 The growth in internet bookings and sales for travel and tourism products and services
has led to a huge growth in the number of dynamic packages - i.e. ones which allow
customers to purchase accommodation, transport and other tourist services from one
provider, but not in a pre-determined package.
An independent product
► Independent tourism products are purchased directly from the provider by individual
customers. An independent product could be a rail ticket or a hotel booking made
directly with the supplier on the Internet; or it could be a sightseeing excursion that the
customer books face to face with the tour company.
► It is possible that a customer books a range of independent products and makes up
his/her own ‘independent package’ i.e. all of the components of a holiday bought
separately and directly from the providers, without the services of a travel agent.
An independent product
► This option is becoming increasingly popular because of the wide availability of such
tourism products at discounted prices via the Internet.
► Many independent travellers take advantage of flights with low cost airlines, and seek
the best price for accommodation at a destination of their choice, rather than buying a
predetermined package holiday.
► The independent traveller will often purchase meals and activities to meet their
individual needs within the destination, choosing from a range of local restaurants and
other catering facilities as well as visitor attractions available, and other recreational
facilities once they have arrived in the destination.
The ‘all-inclusive’ product
► The term ‘all-inclusive’ was first used in 1976 in resorts by the Superclubs tour
operator and has come to mean many different things according to different tour
operators ever since. Typically, the all-inclusive product refers to a package in which
 flights, transfers, accommodation and all meals and unlimited drinks are included
together with snacks such as ice-creams and activities such as kids clubs or sports.
► All-inclusive holidays often provide buffet-style breakfasts, lunches and evening
meals and local alcohol only. Soft drinks and other alcoholic beverages are often
charged for separately. There are sometimes time restrictions
- example, snacks are only available between 11.30 and 13.30 and from certain
catering outlets only
► Cruise holidays tend to be all-inclusive, including transport to the port of embarkations,
accommodation, all meals and the services of the staff onboard the cruise ship.
However, drinks and port of call excursions are not usually included in the price and
must be paid for separately.
Ancillary services
► An ancillary service can be described as any additional service offered by travel and
tourism providers beyond the main product or service normally associated with these
types of providers. Because of the highly competitive nature of this dynamic industry,
those operating within this competitive market constantly seek alternative means of
generating income. An ancillary service is one way in which providers may gain
competitive advantage over their rivals.
Examples of the type of ancillary services on offer may include:
 tickets to theme parks, theatres and other named attractions,
 excursions and sightseeing tours,
 guidebooks and guiding services.
 passport and visa information,
 foreign currency exchange,
 coach and rail tickets,
 travel insurance,
 airport transfers,
 hotel bookings,
 car hire
Guiding services
► The tourism experience can be enhanced significantly through the inclusion of a tourist
guide during a visit to a specific destination.
 ► A guide is usually someone with experience, training and local knowledge of the area,
who will offer expert information about the nature, the history, the cultural background
and local customs associated with a specific destination.
► They may offer a tour in a different language to enable overseas visitors to understand
and appreciate the tour.
► They may provide an accompanied coach tour of a town or a walking tour of a specific
attraction.
► Currency services Different countries around the world use different currencies of
money, for example the Euro (€), the Dollar ($), the Rupee (₹) and the Yen (¥).
► Therefore, travellers need to ensure that they have ‘exchanged’ or converted their travel
money from their own currency into the one being used in the destination they are
visiting.
► There are many ways in which travellers can exchange their currency. Currency
services are now offered by an increasing range of different types of providers.
► Traditionally, tourists used the currency services of a bank or a specialist ‘bureau de
change’, in order to obtain foreign currency.
► The use of credit or debit cards has allowed travellers more flexibility in travelling
without needing to use any currency services in order to physically exchange money
from one currency into another.
Marketing services
► Marketing services are probably more difficult to understand as they are less tangible
as an ancillary service than the other services listed previously. However, a large
number of travel and tourism organisations are involved in the marketing of products
and services within the industry, either directly or indirectly.
► We will look at how many of the travel and tourism principles promote themselves in
much more detail in the following units.
► However, it is worth mentioning here that many organisations are involved in the
provision of marketing services even in the simplest form - example, hotels stocking
racks of information leaflets for tourist attractions in the area; travel operators printing
discount vouchers for a local food and beverage outlet; taxis advertising local
attractions etc.
International tour operators
► A tour operator typically combines tour and travel components to create a package
holiday. This means that the tour operators are responsible for arranging the transport,
accommodation and leisure activities that make up a typical package holiday.
► International tour operators work with suppliers and principals from the industry
(airlines, hotels, tourist attractions etc.) in order to obtain their products in large
quantities such as airline seats, hotel stays, places on an excursion, car rentals etc.
► There are many different types of tour operator around the world. Many operators
specialise in specific destinations, example offering packages only to Mauritius or in
particular activities such as skiing.
► Other tour operators target specific segments of the market such as by age appealing to
seniors or young people or by lifestyle such as ecotourism packages for the responsible
tourist.
Types of tour operators
1. Mass market tour operators
► Mass market tour operators operate within the mainstream of the travel and tourism
industry.
► This means that they tend to offer the traditional ‘sun, sea and sand’ package and cater
to very large numbers of tourists in popular destinations such as the traditional Spanish
Costas and appeal predominantly to the European market.
2. Inbound tour operators
► Inbound tourism is the name given to the type of tourism which brings visitors into
specific tourism receiving areas.
► Therefore, an inbound tour operator is the type of organisation which produces
packages aimed specifically at bringing overseas visitors into a destination.
3. Outbound tour operators
► In the same way that inbound tourism describes tourist activity with people coming
from overseas into a destination, outbound tourism describes tourists who travel abroad.
► An outbound tour operator is one based in the tourist’s home country offering holiday
packages to destinations overseas.
4. Domestic tour operators
► A domestic tour operator specialises in putting together packages for the home market
- this means that they appeal to people living in that country.
 5. Specialist tour operators
► Specialist operators specialise by destination, by activity, by theme, by transport, or by
age group. An example of each of these is as follows:
 By destination - example, Austravel, which specialises in holidays to Australasia.
 By activity - example, SkiSolutions, which specialises in skiing holidays.
 By theme - example, Responsible Travel, which specialise in sustainable tourism
packages.
 By transport - example, Coachtrips.com, which specialises in holidays by coach.
 By age - example, Evergreen Excursions, which specialises in tours for seniors in South
Africa; 2wentys, which specialise in clubbing holidays for young people in their
twenties.
Operating characteristics of tour operators
► While there are a large number of small-scale tour operators within the industry, the
package holiday market is dominated by a small number of large internationally-
operating tour operators.
► Tour operators all work within the private sector - this means that they are profit-
seeking and need to make money to survive. The main trends in the industry are
economies of scale, horizontal and vertical integration.
► As vertically integrated operators capture a large proportion of mainstream package
holidays, independent operators increasingly focus on specialisation.
► Independent tour operators compete by providing high quality, specialist and tailor-
made services.
► The following table illustrates the operating characteristics of mainstream and
independent tour operators.
Nature of tour operations
► There are three main types of contracts used in these ‘deals’:
 Commitment/guarantee - this is where the tour operator guarantees to pay for a certain
number of bed spaces;
 Allocation/release back - a number of bed spaces is agreed but any bed space not sold
by an agreed date is ‘given back’ to the accommodation provider to be sold elsewhere;
and
 Ad hoc - this is a flexible arrangement where the tour operator agrees a on discounted
rate with the hotelier and makes the bookings as and when required.
 ► Flight arrangements also have to be made - usually by chartering a plane. This means a
tour operator makes a block-booking of all of the seats on certain flights, often from
regional airports.
Retail travel agents
► When we briefly looked at the role of the travel agents in Unit 1, we said that travel
agencies act as a selling agent for a variety of principals (the suppliers of the travel and
tourism industry’s products) such as airlines, rail companies, hotels, tour operators, car
hire companies, and currency suppliers.
► The main role of a retail travel agent is to sell holidays, to offer ancillary products (such
as insurance, car hire, foreign currency etc.), to provide information and to advise
customers.
► We will now look at the role of the travel agent in much greater detail and will gain a
better insight into what a travel agent actually does.
Role of travel agents
► A travel agent acts as the intermediary, link or the ‘middleman’ between the customer
and the tour operator or the principals. This means that the agent represents the
interests of both the customers and the suppliers.
► Customers can be inbound, outbound or domestic tourists and could be travelling
for leisure, business or for visiting friends and relatives purposes.
► A majority of customers are likely to be those wishing to purchase an outbound
holiday package, but some travel agencies also specialise in the sale of domestic
tourism packages.
► Travel agents do not act exactly the same as other retailers. They do not necessarily
‘buy-in’ stock in advance to sell on to customers. Instead, they tend to react to the
demands of the customers and contact the suppliers, on the behalf of the customer, to
seek out the availability of the desired product.
Products and services offered
► Along with the overseas holiday package which is main product associated with travel
agencies, most travel agencies offer a much broader range of products and services
including:
 information on health requirements.
 excursions and entrance tickets to tourist
 flights, coach, rail and ferry bookings accommodation bookings travel insurance
theatre bookings car hire
  short breaks cruise holidays
 attractions
 foreign exchange
 passport and visa applications
 airport parking
Understanding travel agency appointments
► It is important that travel agents know the terms and conditions under which they serve
the interests of the suppliers, whose products and services they are selling. These
business interests are clearly controlled by an individual agency agreement with each
supplier that the travel agent represents.
► The most common type of agreement is made with tour operators, whereby the travel
agent agrees to sell the packages offered by the tour operator in return for an agreed
amount of commission. The travel agent will then also make agreements with all the
individual principals it represents such as ferry companies, coach companies, hotel
chains etc.
► These agreements set out the policies and procedures that the travel agent should follow
in relation to:
 issuing tickets, voucher and other travel related documentation:
 cancellations and refunds;
 racking of tour operator’s brochures;
 accounting for the payment of deposits and balances.
Operating characteristics of travel agencies
► As with tour operators, travel agents operate within the private sector and are profit
seeking. Many travel agents are located in areas with high visibility to attract passing
trade.
However, with advances in technology, there is a growing trend for people to use the services
of online travel agents. This is because of the convenience associated with the 24 hour
availability of the Internet.
► Travel agents these days are offering tailor-made packages, to cater to the specific needs
and wants of leisure tourists seeking holiday experiences from the niche markets of, for
example, adventure tourism, ecotourism or cultural tourism etc.
► There are a number of small, independent travel agencies. These tend to be privately
owned with a single retail outlet. There are also miniples - travel agencies with a small
number of outlets in one geographical area.
 ► However, the market is dominated by the multiples - companies which operate a large
number of retail outlets under a single brand name. These are often part of a large chain
as a result of the vertical integration of tour operators.

Describe support facilities for travel and tourism

Concept of infrastructure
► Infrastructure refers to features of the built environment that are required in order to
serve the developmental and operational needs of a community.
► This includes the basic facilities such as, services and installations - utilities (power
supplies, water, sewage etc,), roads, telecommunications, education and health
facilities. In terms of travel and tourism, this means the provision of transport facilities,
including airports, seaports, and railway networks.
► The majority of initial infrastructure development in a country is publicly funded - this
means that the government of the country invest large sums of money into providing
the necessary infrastructure.
► As the destination begins to develop, private organisations are also encouraged to invest
in developing the infrastructure, including the building of hotels, tourist attractions and
other facilities that the tourists may need.
 ► Once the infrastructure in a destination is developed, it is better able to support a wide
range of tourism activities. Destinations will benefit from the foreign exchange earnings
that tourists spend within the destination.
► The extent of infrastructure development is significantly greater in MEDC’s than within
LEDC’s. This is because an investment in infrastructure development reflects the
strength of a country’s economy.

Type and range of accommodation available

► In the same way that tourists need transport infrastructure to gain access to a destination,
tourists also require accommodation whilst staying in a destination. Hotels and other
forms of short term accommodation are often described as being the superstructure of
tourism, i.e. the physical facilities and services specific to tourism development.
► The construction of new hotels can contribute to the infrastructure of a destination, and
having a good supply of hotel beds can determine the success of a destination on an
international scale.
► Accommodation is the name given to any establishment that provides overnight lodging
for a traveller in a room. Types of accommodation vary from international 5 star luxury
hotels to a small guesthouse. There are different types of accommodation to cater to
different types of travellers.

1. Self-catering
► All accommodation is either serviced or self-catering. Serviced means that the price
you pay includes the provision of meals and for the cleaning of the room. Self-catering
means that meals are not provided but cooking facilities are available for guests’ use.
► Accommodation can be targeted towards the luxury market, where customers are happy
to pay a premium price for the quality of the products and services offered. Other forms
of accommodation cater to the specific needs of the budget traveller market, where
customers tend to look towards value for money alongside more basic facilities.
► Let us take a quick look at some of the main types of accommodation.

2. Hotel
► Hotels are one of the most common forms of serviced accommodation found in
destinations around the world.
 ► Some hotels are small, privately owned establishments with a small number of rooms
and a limited range of facilities; others are part of an international hotel chain, with
hundreds of rooms and a broad product/service mix, including business and leisure
facilities, and a choice of restaurants, coffee lounges and bars etc.

3. Guesthouse
► It is also known as a boarding house, B&B, or Pension. A guesthouse is usually a small
owner-managed establishment offering serviced accommodation.
► Facilities here are limited and cost less than staying in a typical hotel. The service is
often more personal and friendly.

4. Hostel
► Hostels offer inexpensive accommodation and also offer the option of serviced or self-
catering facilities.
► Hostels target groups of travellers such as school groups or independent travellers
looking for budget accommodation.
► Hostels offer dormitory style accommodation as well as private rooms and can be
privately owned or a part of the public sector.

5. Camping site
► Camping sites are places used for overnight stays in the outdoors. Campers can pitch
their own tent or rent a ready pitched tent and use other amenities on the site, which can
be quite basic.
► Many campsites also accommodate motor homes and caravans. Some international
camping sites are more like holiday centres, with a wide range of facilities, including a
small shop, restaurants and cafes, a leisure complex with play areas and swimming
pools, a TV lounge, laundry facilities etc.
Many also offer children’s clubs and activity grounds. Camping offers a cheap form of
accommodation and camping sites are usually privately owned.

Economies of operation and scale of investment

► The accommodation sector is dominated by commercial enterprises such as hotels and
motels, guesthouses, farmhouses and B&Bs etc.
 ► Many accommodation providers are small, independent establishments - a privately
owned hotel or guest house, for example; there are also a few large, international hotel
chains and resort owners - the branded multiples.
► This is where a hotel group uses the same hotel model across every key tourism
destination offering a familiar accommodation environment for customers with
guaranteed quality and standards.
► It is difficult to estimate the exact scale of the accommodation sector. National tourist
authorities produce statistics about the number of bed spaces for specific destinations
which indicate the extent to which the demand for tourist accommodation is matched
by supply, but survey data of this nature does not always accurately confirm the scale
of this industry sector.
► Investment in accommodation development is primarily through private investment:
however destination managers can assist in attracting investment for a destination.
While destinations seek to attract investment in new tourism development, much of the
investment in accommodation is likely to be in the refurbishment and refreshment of
existing accommodation development to meet the changing visitors expectations.
Accommodation should be refurbished approximately every 5-7 years to ensure visitor
satisfaction. Different types of accommodation have also been pursued in various destinations,
with different ownership models and impacts.

Measures of efficient operation

► The popularity of different types of accommodation can be measure in a number of
different ways. The travel and tourism industry uses occupancy rates to measure
whether hotels, guesthouses and hostels are operating close to their capacity.
► An occupancy rate is the number of beds/rooms that have been occupied against the
number of beds/rooms available over a given period of time (usually measured on a
yearly basis and presented as a percentage).
► Occupancy rates are calculated from the internal records of individual hotels; these are
reported to national tourism authorities and collated to allow statistical analysis of
numbers of tourists against destination carrying capacity - i.e. the number of actual
visitors measured against the number of visitors that a destination can theoretically
accommodate at any one time.
Classification and grading
► Tourists often want to know what to expect from the accommodation they book. If you
are travelling to a destination for the first time you may have limited knowledge of the
accommodation on offer.
► In order to help the tourists choose accommodation appropriate to their specific
requirements, many types of accommodation have adopted a classification or grading
scheme. These schemes are often based on strict criteria relating to the quality of
facilities offered and the quality of the customer services provided.
► There is no international hotel classification scheme but many countries have their own
classification system in place. National tourist boards or government departments are
often involved in inspecting accommodation and classifying it accordingly.
► The most common classification scheme which has some international recognition is
the hotel star rating scheme, meaning that each hotel is visited by a team of inspectors
and assessed against pre-determined grading criteria.
Hotels are usually given a rating of from one to five stars - the more the stars, the higher the
quality and the greater the range of facilities and level of services provided
 ► As the demand for tourism experiences becomes more and more, we have seen the
emergence of several so-called 6 star or 7 star hotels, meaning that these hotels
surpass the level of luxury associated with a typical 5 star luxury hotel.

Facilities provided for business/leisure tourists

► Travel and tourism providers try to cater to the specific needs and expectations of
their customers. Therefore, it comes as no surprise that accommodation providers
develop specific products and services targeted to their two main visitor segments -
business travellers and leisure tourists.
► The business tourism market is particularly strong as many hotels offer conference
and meeting facilities - a venue equipped with all the modern
technology required to stage a business meeting, catering services to provide
refreshments and a business centre for photocopying, printing and fax services.

Local public transport provision

► Public transport facilities form an essential part of the support facilities offered to
tourists in a destination. We have already looked at the provision of rail and road
services as part of the local infrastructure.
► We now have the opportunity to look at how an effective public transport system
improves the accessibility of destinations and meets the needs of domestic and
international visitors.
► Local transport is important for residents in the community but it is also essential in
offering a cheap means for tourists to get about while they are in the area.
Many travellers will use some form of public transport to get from the airport to their
accommodation.

Rapid transit systems

► Many destinations now use rapid transit systems to transport large numbers of people
as quickly as possible around city centres. These types of systems provide improved
accessibility for tourists as well as for local residents, with the aim of reducing
overcrowding and traffic congestion.
Explore the features of worldwide transport in relation to major international routes

1. Sea transport
Major types of sea transport for tourism
► Many countries in the world still rely on ferry crossings for everyday travel and
tourism business. Ferry services remain important in a wide range of places such as
the Greek Islands, the Adriatic Sea and the Baltic coastline, as well as Hong Kong.
► The Star Ferry in Hong Kong Harbour has been named as one of the top 50 places to
visit by National Geographic Traveller, offering one of the worlds best value-for-
money sightseeing trips.
► Water taxis and buses also play a significant role in destinations such as the Maldives
or the French Polynesian islands such as Bora Bora, providing a common form of
transfer from the airport to the resort destination.
► Ferries, as an element of the travel product, are a major form of transportation.
However, sea transport has developed its product portfolio further by offering passage
on a cruise ship as an important element of the tourism product.
► Cruises have become increasingly popular over recent years, as they offer an all-
inclusive holiday experience. The cruise-goer gets to relax in 5 star comfort, with
everything under one roof, whilst seeing a variety of sights and experiencing a range
of different cultures in a range of destinations.

2. Rail and road transport

► Road and rail networks also support the travel industry with a wide range of products
and services, both in transporting tourists from place to place and in offering a
portfolio of tourism products and services in their own right.
Major international tourist networks
1. Car travel
► Car travel is the worlds dominant form of transport for tourism purposes, especially
within domestic tourism. High levels of car ownership in densely populated areas
such as the US and Europe mean that more people use their car for tourism purposes -
driving for short breaks, day trips etc.
► Car travel offers more flexibility and convenience than many other forms of transport
as it allows door-to-door transport and is considered beneficial for the privacy it offers
to travellers.
 ► However, there is the rising cost of fuel to consider as well as the environmental
impacts that car travel brings.
► The travel industry offers fly-drive packages and car hire as an important ancillary
tourism product. A fly-drive package is where a traveller flies into a destination, picks
up a car and drives around the area/region staying at different places along the way.
► At the end of the holiday, the tourist eventually returns to the airport, drops the car off
and flies home. Fly-drives are also known as self drive holidays, road trip holidays or
multi-centre holidays.

2. Rail travel
► Now let’s look at rail travel. Many tourists use rail travel to get to their chosen
destination because it is a relatively cheap form of transport and runs frequently.
► However, rail travel does not hold the same level of popularity as car or air travel in
many countries for a number of reasons.
► Trains become easily congested. Unlike air travel, travellers can buy tickets for rail
travel without having to book a seat.
► Rail travel is often more popular with commuters travelling to work than it is with
tourists travelling for leisure purposes.

Nature and operating economies of road and rail transport

► Road and railway transportation are important contributors to the economic
development of tourism destinations. Investment in road and railway infrastructure is
usually publicly funded - i.e. by the government and these networks are often the first
to be developed in tourist receiving countries.
► Jobs are created both in building new road networks and in providing ongoing railway
services. However, public transport is often neglected by tourists because of lack of
information about the services or because of a lack of trust based on the traveller’s
experiences of public transport in their own country.
TOPIC QUESTIONS

Question 1
a) Identify two advantages to a local tour operator of having their promotional leaflets
on display in a hotel reception area.
(4 marks)
b) Describe the main differences between a tour operator and a travel agent. (4 marks)
c) Explain how tour operators put together packages that allow tourists to visit more than
one destination. (6 marks)
Question 2
a) Identify three products/services that international 5 star hotels may provide for their
leisure tourists. (3 marks)
b) Explain three services provided by major international 5 star hotels for the
convenience of their business guests. (6 mark)
c) Discuss the ways in which international 5 star hotels meet the needs of family visitors,
travelling with young children. (6 marks)
 UNI
T5
MARKETI
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acoll
ected,i
tmaybepossi
blet
o
carr
youtstati
sti
calanal
ysi
s.
St
age5:Repor
tther
esul
ts
► Ov
eral
lfi
ndi
ngsf
rom t
her
esear
chwi
l
lbepr
esent
ed,
drawi
ngconcl
usi
ons
 againsttheor i
ginalobjecti
ves.Intheexampl ementioned,i
tmaybet hecase
thatthemar ketresear chdisprovesthetheorythatt
heMal di
veshasav ery
narrowt ar
getmar ketfortouri
sm purposes,fi
ndinginst
eadthatmanyf amil
ies
andel derl
yvisi
torsar ealsoat t
ract
edtot heareaaswel l
astheanti
cipated
honey mooneranddi vi
ngmar kets.
Pr
imar
ymar
ketr
esear
ch
► Iti
salsoknownasf iel
dresear ch,asthi
sty
peofr esearchrequires
organi
sat i
onstogoouti nt
ot hemar kettof
indoutaboutcust omer s’
experi
encesandexpect ati
ons.Ther earemanycommer cialor
gani sati
ons
whichwi l
lcarryoutpri
maryr esearchonbehalfofotherorganisationsbutthi
s
i
spar t
icularl
ycostl
y.Pri
mar yresearchcoul
dbedonebyconduct ingasurvey
attheairportorwit
hintherecept i
onareaofanumberofhot el
s.
► Pr
imaryresear
chmet hodsincl
udeself
-completionquest
ionnai
reswhi
chare
aseri
esofopen-ended,cl
osedormulti
plechoicequesti
onswhichisgi
ven
di
rect
lyt
ot hecustomerorpotent
ial
customert ofi
ll
in.
► Telephonesurvey
sandInter
netsur veysarealsocommonf ormsofpri
mary
researchi
nwhichexi
sti
ngorpot enti
alcustomersarecontactedeit
herby
tel
ephoneorbyemailorarerandomlyt ar
getedwhenv i
sit
ingawebsi t
eonthe
Inter
netandaskedquest
ionsrel
atingtotravelandtour
ism product
sand
servi
ces.
► Exitsur
veysarecar r
iedoutasav i
sit
orleavesanattracti
oninwhichopi
nions
abouttheoverall
visi
torexperiencewhilstataparti
cularfaci
l
ityar
esought.
Thismaybedonet hroughaf ace-t
o-faceinter
viewwithamemberofst affat
thefaci
li
ty,
askingdirectquestionsofav i
sit
or.
► Post alsur
veysar ealsosti
llsometi
mescar r
iedout,alt
houghtheresponse
ratefortheseisof t
env er
ypoor;rel
yingont hecustomert ofi
ll
them outin
theirownt i
meandt hentakeresponsibi
li
tyforretur
ningthem.Focusgroups
aresomet imescal l
edtogetherbyanor ganisati
on,whereanumberof
customer sareledbyamemberofst afft
odi scusstheirvi
ewsofacer t
ain
productorservice.Thesearecost l
yandt aketimetoor gani
se.

Secondar
ymar
ketr
esear
ch
► Thisi salsoknownasdeskr esearchasitinv
olvesusingexi st
ingi
nformation
thathasbeencol lect
edbyat hir
dpar t
yforadiffer
entpur poseorusingdata
from theor ganisati
onsownr ecords.Muchofthisinformationmaybei n
wr i
ttenorel ect
ronicfor
mat s;therefor
e,t
her esearcherisabletocarryoutthe
maj orit
yifthistypeofresearchonadeski nanof f
ice.
► Secondarymarketresearchsourcesaremanyandv ari
ed.Thesesour
cestend
tobeclassi
fi
edasint ernal
,i
.e.datafr
om theorganisati
on’
sownsalesrecords
oracustomerdatabasedet ail
inghowoftenacust omerusesaparti
cular
faci
l
ityorext
ernalwhi chmightincl
udegov er
nmentpr oduceddat
aortrade
 report
s-mostofwhi chcanbeaccessedt hr
oughmember shi
paccount svi
a
theInt
ernet
.Academi cr
esearchfi
ndingsfal
li
ntothi
scategor
ytoo;for
exampleart
icl
eswithinj
ournalssuchastheJournalofTr
avelResearch.
► I
tisimport
antt orecogniset hatusingsecondar
ymar ketresear
chsources
maynotalway sber el
iable.Ther esearchwasori
ginal
lycarri
edoutwit
ha
di
ffer
entobjecti
veinmi nd; ther
efore,thedat
amaybei rr
elevantorout
datedor
maycontaintheaut hor’
sbi asedopinion.

TYPEOFDATA
Qual
it
ati
veandquant
it
ati
vedat
a
► Qual
it
ati
vedataref
erstotheinfor
mationcoll
ectedaboutcustomers’opi
nions
andatt
it
udestowardsproductsandservi
ces,whereasquanti
tati
vedatatends
tobenumeri
corstati
sti
calbynature-fr
equencyofv i
sit
s,costandnumberof
user
setc.
► Quanti
tat
ivedataall
owspatternsandtr
endsinthemar
kettobedispl
ayed
vi
suall
yinchartorgraphf
orms; qual
i
tat
ivedat
aontheotherhandismore
di
ffi
cul
ttorepresent
edgraphical
ly

DATAANALYSI
S
1.SWOT
► Travelandtouri
sm provider
smustbeabl etocarryoutanaccurat e
assessmentoft hebusinessenvi
ronmentinwhichtheycurrent
lyoper ate
or,i
nt hecaseofanewbusi ness,mightoperat
e.Theprocessinv olvedi
n
carry
ingoutthisanalysi
sisoft
enr ef
err
edtoasasi tuat
ionanalysis.The
resul
tsofthisassessmentenablesat r
avelandtouri
sm provi
dert o
i
dentifytheposit
iveandnegati
veinfl
uencesoni t
sbusinessacti
v it
ies.
► I
talsoal
lowsanorganisati
ontorecogni
sethosei
nfl
uenceswhichar
e
wit
hini
tsowncontroli
.e.,
inter
nali
nfl
uencesandthosei
nfl
uencesbeyond
i
tscontr
oli.
e.,
ext
ernalinf
luences.
Asit
uat
ionanal
ysi
susual
l
yconsi
stsoft
wocomponent
s,t
hef
ir
stofwhi
chi
s
commonlyknownasSWOTanaly
sis.
SWOTAnal
ysisi
samarket
ingt
ool
usedi
nmanybusi
nesscont
ext
s.SWOTi
san
acr
ony
m,whichst
andsf
or:
Str
engthsandweaknessesareinter
nalf
act
orsi
.e.t
hingsthattheorganisat
ioncan
i
tselfcont
rol
,whi
leopport
uniti
esandthr
eat
sareexternal
factorsi
.e.t
hingst hatar
e
beyondthecontr
oloftheorgani
sati
on.
Developmentwi t
hinthetravel
andtourism i
ndustryrel
iesheavi
lyont heoutcomesof
SWOTanal ysi
s.I
ftheresult
sshowt hatanorganisati
onhasmanyweaknessesand
themar ketposeslot
soft hr
eats,
thenitisunli
kelythatanorganisat
ionwill
chooseto
expandt herangeofproductsandservi
cesitoffers.
Ontheotherhand,iftheresul
tsoftheSWOTanaly
sisshowthataparti
cul
artouri
sm
desti
nati
onhasmanyst r
engthsandthemar
ketsit
uati
onpresentsl
otsof
opport
uniti
esfort
hedest inat
iont
odevel
opfur
ther,
theniti
shighl
yli
kel
ythatthese
devel
opment swil
ltakeplace.

2.PESTANALYSI
S

Thisisanothermar
keti
ngtoolusedt
oassesstheext
ernal
inf
luencesont
he
businessenvir
onmentandisal
soknownbyitsacr
onym:
APESTanal
ysi
sal
l
owsanor
gani
sat
iont
oident
if
yanyi
nfl
uencesont
hemar
ket
,
whicharebeyondit
scontr
ol.Byunder
standingwhattheseforcesmaybe,atour
ism
provi
deri
sbetterpl
acedtoassesshowgr eatari
sktheseexternal
fact
orsposet
o
themarket
,andconsequentl
ytothebusinessit
sel
f.
Al
thoughtheseinfl
uencesremainout
sidethecontr
oloft
hetrav
elortouri
sm
pr
ovider
,thisdoesnotnecessar
il
ymeant hatt
heiri
mpactuponthebusinesscannot
beminimised.
Poli
tical
:Organi
sati
onswi thi
nthetravelandtourism i
ndustryar eregulat
edby
government,thr
oughlegislat
ionand/orcontrol
ledbyot herregulat
or ybodies,
inor
der
toprotectt
hecustomer s,suppl
ier
sandt heenv i
ronment .Ci
v i
lunrest,actsof
i
nternati
onalter
ror
ism alsoexertpoli
ti
calinf
luencewithinthisindustry.
Economi c:Forei
gnexchangerates,
periodsofrecessionandt heglobaleconomyal l
playimportantrolesi
nexert
ingposi
tiv
eornegat i
vei nf
luencesont our
ism.Inr ecent
years,t
hegl obaleconomi
cdownt ur
nhasl edtolessdisposableincomeandt hus
fewertravell
ers,havi
ngaheavyimpactont heprofi
tabil
it
yofai r
li
necompani esand
touroperators,f
orexample.
Social:Theglobalthr
eatofpandemi cdiseasessuchasH5N1Av i
anInfl
uenza,SARS,
H1N1Swi neFluandCOVI D-19impactsont hei
ndust
ryaswell,
causingsome
trav
ellerstocancelhol
idayplans.Theratesofcrimeincer
taindesti
nati
onsandlocal
atti
tudestotourist
smi ghtal
soimpactont hepopul
ari
tyofspeci
ficdest
inat
ionswit
h
touri
sts.
Technologi
cal:Inf
rast
ructuredev elopment,includingtheconst ruct
ionofairpor
ts
wit
hhi ghcarr
y i
ngcapaciti
esandhot elswithhighnumber sofbedspacesal l
contr
ibutetoposit
ivetechnological i
nfl
uencesont ouri
sm prov i
sion.TheInter
nethas
tr
ansformedt hewayinwhi chtrav elandtourism productsandser vi
cesaremar ket
ed.
Thosedestinati
onswithunder -
dev elopedinfrastr
ucturewilllosecompet i
tiv
e
advantagewiththosedestinati
onswhi charemor etechnologicall
yadvanced.

Thedev
elopmentofanef
fect
ivemar
ket
ingmi
x
I
tisessent
ial
thatanor
gani
sati
onisabletosel
ectt
hemostappr
opr
iat
ecombi
nat
ion
offact
orst
oestabli
shi
tsmarket
ingmix.
1.Itmustchoosethespeci
fi
cfeat
uresandchar
act
eri
sti
csoft
hepr
oductand/
or
serv
iceitof
fer
s;
2.i
tmustdeci
dehowt
hepr
icewi
l
lbesetf
orcust
omer
s;
3.i
tmustselectthemostconveni
entl
ocati
onsfordi
str
ibut
ingi
ts
pr
oduct
s/services-i.
e.maki
ngi
teasyforcust
omerstobuyfrom t
he
or
gani
sati
on, andlast
ly,
4.i
tmustchoosehowtopr
omotei
tspr
oduct
sandser
vicest
oensur
ethat
pot
ent
ial
customer
scanber
eached.