Travel and Tourism

Introduction
► Given the wide scope of the global travel and tourism industry, together
with the huge number of public and private sector organisations
operating within the industry, there is an ever-increasing mix of travel
and tourism products and services available for customers to choose
from.
► In business, there are very clear distinctions in defining the difference
between a product and a service. However, because of the very strong
connection between the individual
components of the travel and tourism
industries, it is almost impossible to separately
define the products or services being offered
by a travel and tourism provider.
► In this unit, you will be able to draw upon the
knowledge gained in Unit 1 of the roles of
different travel and tourism providers in order
to consider the types of products and services
these providers offer.
Introduction
► You will need to investigate in detail the product and service mix of a
range of different providers across the different components of the
industry.
► You will have an opportunity to look in detail at the breadth of ancillary
services which providers in the industry offer, in addition to their main
product or service, in order to increase business opportunities and to
generate increased income.
► You also need to recognise the
interrelationship between different
products and services of the
industry – e.g., the way in which
catering and accommodation
providers work together with
transport or attraction providers to
enhance the customer s overall
tourism experience.
Introduction
► This unit is also an opportunity to explore the different roles played by
tour operators and travel agencies in creating and selling a package
holiday to the customer.
► You will learn the differences between the ‘wholesale’ function of a tour
operator and the ‘retail’ function of the travel agent.
► This unit will also enable you to consider the less obvious aspects of
travel and tourism provision - i.e. the support facilities that exist within
tourism destinations and how these are managed and maintained,
including features of the built
environment, accommodation
provision and local transport
services.
► The final section of this unit
will examine the major
transport routes and the way
in which worldwide transport
products and services operate.
Identify and describe tourism products
► We have already examined the roles of the main travel and tourism
providers, so you will be familiar with the main components of the travel and
tourism industry and should, therefore, be able to easily identify the main
product or service that each provider offers.
► The component title tells you the type of product or service being offered -
example, accommodation providers offer accommodation. But in order to be
able to achieve the higher level marks in the external examination covering
this unit, you must also be able to ‘describe’ what these types of products
include.
► Therefore, rather than the obvious
identification that a hotel offers
accommodation, you may be asked to
describe the difference in the type of
accommodation provided by, for example,
the 5 star Empire Hotel and Country Club
in Brunei Darussalam and by the non-rated,
shared dormitories of Martin’s Eco-Lodge
in the Sinharaja Forest in Sri Lanka..
 Identify and describe tourism products
► Similarly, you may be asked to describe the type of passenger transport
available on one of the government-run mailboats in the Bahamas or the
passenger experience onboard the Trans-Mongolian Express railway
journey from Moscow to Beijing.
► Once you have gained confidence in identifying and describing the main
offerings of travel and tourism providers across the range of components in
the travel and tourism industries, it is imperative to consider the inter-
relationship between the different components.
Activity 1
KEY NOTE FOR STUDENTS

The more research you can

carry out into the range of
travel and tourism products
and services that are now
available around the world,
the better equipped you will be
in answering the case-study
type questions that occur in
the examination in Paper 1.
With regards to your local area, identify the main
product or service of each of the following types
of travel and tourism provider.
• Travel agent:
• Tour operator:
• Accommodation provider:
• Transport provider:
• Tourist attraction: Catering outlet:
• Entertainment venue:
Example
Martin’s lodge in Sinharaja Forest Reserve,
Sri Lanka
► This is a simple guesthouse accommodation,
with 10 rooms - some double, some triple
and some dormitory style. Martin’s Lodge is
located right on the edge of the Sinharaja
Rainforest and does not have a star-rating.
► Traditional Sri Lankan meals are served in
the common dining area. There is no air-
conditioning and only limited supplies of hot
water is available within the guesthouse.
There are no other facilities in the
accommodation.
► Bird watching and nature treks within the
Sinharaja Rainforest are offered by the
owner of the guesthouse.
Example
The Empire Hotel and Country Club, Brunei Darussalem
► The Empire Hotel is a luxury 5 star hotel, situated on the
coast of the South China Sea. It has almost 470 rooms,
together with 34 suites and 16 villas, therefore offering
customers a lot of choices.
► Each room has a king-sized bed or twin beds and has a
luxurious on-suite bathroom and a private balcony. Every
room has a cable TV, a mini-bar, telephone, writing table,
Broadband Internet access and all rooms are decorated to
a very high standard.
► The hotel offers 24 hour room service, laundry service, and
10 different restaurants and cafes. The Country Club at the
hotel caters to the leisure and recreational needs of the
customers, providing an 18 hole golf course, a range of spa
treatments and therapies as well as swimming pools,
squash, tennis and badminton courts, ten-pin bowling and a
fully equipped gymnasium.
► The hotel also caters to business customers, providing four
different venues for meetings and conferences for up to
700 people.
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.
Inter-relationships between travel and
transport, catering and accommodation,
attractions, leisure and recreation and
business facilities
► 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.
Example
A new ‘Taste of Spain’ package
► Tasting Tapas, a specialist tour operator in Spain,
has introduced a new ‘Taste of Spain’ tour
package. The package includes return flights from
New York to Madrid, two nights of hotel
accommodation each in Madrid, Zaragoza and
Barcelona; buffet breakfast each day; a gourmet
lunch in Zaragoza and a wine-tasting tour of the
Vilarnau vineyards, as well as five days car rental.
► Visitors will have time to enjoy the old cafes and
picturesque tabernas in Madrid; they will indulge in
a gourmet lunch at the Restaurante Los Borrachos
in Zaragoza and will stop at the Vilarnau winery to
taste Spain’s finest Cava, similar to the
champagne of French vineyards. Once in
Barcelona, visitors will have the opportunity to dine
on fresh tapas and seafood.
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.
A Package Product
► 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 European Package Travel Regulations of 1992 are currently under
review by the European Commission because of the significant changes
that have occurred in the way the travel and tourism products and
services are sold and purchased in recent times.
► 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.
The ‘all-inclusive’ product
► Some activities may carry an additional cost such as snorkelling,
baby an: toddler clubs, etc. Some resorts issue guests with a
wristband as a form of identification, which enables them to access
snacks, drinks and other activities.
► 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,
► Lets now examine three of these ancillary services in more detail.
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.
Guiding services
► In areas of specialised tourism activity, for
example a Kenyan Safari or a visit to a coral
reef in the Indian Ocean, using the services
of a guide may be an integral part of the
package in the interests of conservation and
preservation of the natural habitats as well
as for the protection of the customers.
► But for the majority of tourists, the services
of a guide are offered as an ancillary
service, thus allowing the supplier to gain
additional income on top of the main
product already being sold.
► The following case study will help you in
understanding the importance of guiding
services in the growth of travel and tourism
industry in a destination.
Case Study 1: Brunei tourism helps to raise standards of tour guides in Brunei

► Nearly forty tourism professionals in Brunei have received a certificate for

taking part in the two-week long hands-on training course for tour guides
delivered by two qualified trainers from the World Federation of Tour
Guide Associations.
► Tour guides play an important role as ‘ambassadors’ to international
visitors, as they are the ones explaining to the tourists about the culture,
history, nature, way of life, society, and institutions of the destination. It is
important that tour guides should have both the correct information and
the correct techniques to deliver such information, as this provides a
pleasant and an informative experience for tourists.
► Although the tourist experience of Brunei involves a number of other
elements, such as the quality of services in hotels, restaurants, shops,
and taxis; the quality of welcome by immigration and custom officials; the
friendliness of people in general; and the quality and diversity of tourism
products and attractions, it is often the quality of the guiding services that
will be the most memorable element in a tourist’s visit.
Case Study 1: Brunei tourism helps to raise standards of tour guides in Brunei
► With tourism in Brunei still developing, the industry saw a 40% increase
in the number of tourist arrivals in the year 2008, as well as a growing
number of cruise ships calling at Muara port.
► Brunei Tourism and the Brunei Association of Travel Agents being
concerned at the level and quality of the guiding services in Brunei to
be as per required international standards decided to be competitive
with guiding services being offered in the neighbouring destinations.
► To address these concerns, Brunei Tourism decided to bring in the
world’s leading authority in tour guide training,
the World Federation of Tour Guide
Associations (WFTGA). This organisation
represents tour guide associations from over
50 countries and has much experience in
delivering tour guide trainings around the world.
► It uses well qualified trainers who are each
practicing guides in their home countries.
Case Study 1: Brunei tourism helps to raise standards of tour guides in Brunei
► The training in Brunei is a short course focusing on guiding techniques,
skills enhancement and communication. The course ends with a written
and practical assessment, in which trainees have to demonstrate skills
and knowledge during a bus tour around the capital city, a walking tour
of downtown Bandar, and a museum tour at the Brunei Museum.
► Guides who pass the assessment receive an accreditation badge
endorsed by Brunei Tourism and the
WFTGA, supported by the Brunei
Association of Travel Agents.
► This has been considered as the
first step towards a future tour guide
licensing scheme needed to control
the quality of the guides who take
care of visitors to Brunei.
Source: Adapted from: http://www.forimmediaterelease.net/pm/2018.html
(November 28, 2008)
Guiding services
► 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.
Guiding services
► However, it is now possible to use the currency
services of an international hotel, or of a travel
agent, the Post Office, the Tourist Information
Centre, within large retail outlets or via one of many
online foreign exchange websites.
► Travellers’ cheques were once considered the only
alternative to carrying large quantities of cash.
Nowadays, new advances in technology enables
the traveller to have full access to their own bank
account no matter where in the world they are
travelling, via automatic teller machines (ATMs).
► 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.
Example
► ICE is one of the largest retail
currency exchange operators in
the world. ICE comprises over
300 branches and operates at
more than 65 airports across
the four continents. Its services
include foreign currency
exchange, travellers cheques,
money transfers and the sale of
international phone cards.
► Like many other currency service
providers, ICE offers a commission free, buy back promise. This means
that the traveller will not be charged to exchange any unused holiday
money back into their own currency.
► Source: Information adapted from
http://www.iceplc.com/bureaux/index.shtml
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.
Example
► The Doha Convention Bureau was established in 2003 as a new initiative
of Qatar Tourism Authority. Serving as the first point of contact in Qatar,
the role of this Bureau is to promote Doha for conventions and
exhibitions, as well as to coordinate, plan, and monitor all events in Qatar.
► Like many similar business tourism organisations across the world, the
Doha Convention Bureau provides marketing services for international
conference and exhibition organisers as an ancillary service. These types
of organisation often operate as part of the national tourism authority,
publishing a calendar of events
being held at the venues within
the country and producing
promotional material to
advertise the facilities and
amenities available within the
country to meet the needs of
the business tourism market.