Introduction

to Travel Business
Any Noor
2017

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What is Tourism
• Defining tourism is not a simple matter, as it is a complex industry
made up of many different businesses, the common theme being
that they provide products and services to tourists.

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Tourism definition –
World Tourism Organization

Tourism comprises the activities of persons travelling to and staying

in places outside their usual environment for not more than one
consecutive year for LEISURE, BUSINESS and OTHER PURPOSES.

This definition includes the word ‘STAYING’ and suggests that

tourists stay at LEAST ONE NIGHT.
visitors make a huge contribution to the tourist industry and some
regions and organizations and growth the statistics.
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Business Travel Industry
• Business travel is a growing element of the overall travel and
tourism industry
• More people are travelling today—with 1.24 billion international
arrivals in 2016, compared to 25 million in the 1950s (travel and
tourism competitiveness report 2017).

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Travel Employment
• The travel & tourism sector accounts for
one in 10 jobs on the planet and as one
of the largest employers in the world,
the industry has huge potential for job
creation.
• In employment growth terms, the Travel
& Tourism industry already outperforms
a number of other industries, including
the education, financial services and
health care sectors.
• Forecasts indicate T&T growth is
expected to continue increasing over
the next decade.
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Travel Job Creation
• Research shows that for every 30 new tourists to a destination one new job is
created.
• Today, the travel and tourism industry has almost twice as many women
employers as other sectors.
• The travel and tourism industry offers employment opportunities for persons
entering the labor market for the first time or without many options in other
sectors.
• Travel business creating opportunities for high-skilled workers, the industry plays a
key role in creating opportunities for low-skilled workers, minorities, migrants,
youth, the long-term unemployed, and women who prefer part-time work due to
family responsibilities.
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Travel Impact

• While the ECONOMIC benefits are clear, it is important to

understand the repercussions on the ENVIRONMENT and on local
communities.
• Growth in the number of global tourists does impact local
environments and local communities as well as SOCIAL impact

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Travel Documents
• In 2015, tourist destinations worldwide required 61% of the world’s
population to obtain a visa prior to departure. This is a significant
improvement from 2008, when 77% of the world’s population was
made to apply for a traditional visa.

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Smart Travel Documents
• A comprehensive model for Smart Travel, one that includes Smart
Visas, Smart Borders, Smart Security processes and Smart
Infrastructure, will revolutionize the travel and tourism sector the
way the smartphone has transformed the telecommunications and
media industries, bringing job creation and growth along with it.

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Travel Security
• Despite air travel being one of the safest modes of transportation, with
incredibly stringent security standards, measures following security
shocks have often been implemented to soothe the public rather than to
contribute to a more effective and secure environment.
• Airports around the world faced additional layers of security regulations
following 9/11.
• Clear opportunities to enhance safety and security of the entire travel
value chain exist through data-sharing technologies and better
collaboration between governments, international institutions and the
private sector.
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Travel Technology
• To remain competitive, the industry must complement its high-
touch approach with high-tech applications.
• Today, consumers want to feel special and expect personalization
of service and experience.
• Increased automation does not lead to a disconnect between
online and in-person exchanges.

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Infrastructure

• The travel and tourism industry contributed 10.2% to global GDP in

2016, an increase for the sixth consecutive year.
• Private and public infrastructure investments—airport
development, accommodation room stock, road and rail, and
communication technologies–have lagged behind
• Such infrastructure is not only for the continued development of
the travel and tourism industry, but also key in providing
employment opportunities and regional development.

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Travel and Tourism
• The travel and tourism industry is divided into two parts:
• Travel – involves businesses that physically move people from one
place to another
• Tourism – involves businesses that organize and promote travel and
vacations

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 Travel and Tourism
Interactions
1. Guests use businesses from both sectors
when traveling
2. Employees must work together to meet
customer needs
3. Goal is to make travel fun, safe and exciting

Employees from both the travel and tourism

industries must interact so people on business
or vacation have successful trips.

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Travel businesses

Airlines Car Rentals Cruise Lines

Taxi and Ferry Train and Bus

Services Services
 Travel businesses include:
• Airlines - a company that owns and operates many airplanes which are used for carrying passengers and
goods to different places.
• Car rentals - automobiles that rented for short periods of time, generally ranging from a few hours to a
few weeks.
• Cruise lines - a passenger ship used for pleasure voyages, where the voyage itself and the ship's
amenities are a part of the experience, as well as the different destinations along the way.
• Taxi and ferry services:
• Taxi - a car that carries passengers to a place for an amount of money that is based on the distance
traveled.
• Ferry - to carry or move (someone or something) on a vehicle (such as a boat or a car) usually for a
short distance between two places.
• Train and bus services:
• Train - a connected line of railroad cars with or without a locomotive.
• Bus- a large motor vehicle carrying passengers by road, especially one serving the public on a fixed
route and for a fare.
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Tourism businesses

Convention Meeting and

Cruise
and Visitors Convention
Companies
Bureau Planners

Travel and
Tour Travel
Tourism
Operators Agencies
Offices
Tourism businesses include:
• Convention and visitors bureau – a nonprofit organization that promotes tourism and
provides services to travelers.
• Cruise companies – a company that owns and operates cruise ships for pleasure voyages.
• Meeting and convention planners – coordinate all aspects of professional meetings and
events.
• Tour operators - a person whose job duties include organizing tours, whether they be for
holidays or historic places.
• Travel agencies - businesses that help to make arrangements for people who want to travel.
• Travel and tourism offices - an office where visitors to a place can get information about what
to see and do, especially while on holiday, or an official organization that runs these offices.

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Business Departments

19
Business Departments

Each travel business is unique and may perform most of the

functions in the departments within a travel and tourism business.

In a small business, one person may perform several of these

functions.

In a large business, each function will have a separate department

with many people for each function.

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Department Functions

Customer Human
Accounting Service Engineering Resources

Marketing and Purchasing and Reservations

Management
Sales Receiving and Bookings

Safety Technology
Departments and their functions include:
1.Accounting - keeps track of all the money that flows into and out of the business.
2.Customer service or guest services - handles all activities involved with complaints, concierge services and
customer inquiries.
3.Engineering - makes sure that all the equipment, plumbing, electricity and building facilities are working
properly.
4.Human resources - manages all employee issues including benefits, firing and hiring, pay and training.
5.Management – oversees all functions of the business including making sure the business is operating profitably.
6.Marketing and sales – promotes the business, develops marketing plans and sells the products and services.
7.Purchasing and receiving – keeps track of purchases and inventory for the business.
8.Reservations and bookings - handles all activities involved with customers reserving rooms, seats, tours and
more.
9.Safety – secures property for the safety of the guests and employees and oversees emergency procedures.
10.Technology – maintains computer software and data storage; may also oversee business website.

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Department interactions

• Communication is vital
• Linked with software programs
• Technology connected
Department interactions
• All of the business departments must work together.

• Each of these main departments are necessary for the day-to-day operations for businesses.

• Communication between departments is critical.

• Many of the departments are linked through industry related software.

• Technology departments in today’s business is often the connecting media. The company network and
intercompany communication (email, instant messaging) is critical in today’s environment.

• These are just a few examples of how departments work together. For businesses to succeed in today’s
environment, communication and departmental interaction must work together like well-designed
interlocking gears.

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Let’s Review!
1. What does travel involve?
2. What does tourism involve?
3. What are some travel businesses?
4. What are some tourism businesses?
5. How do travel and tourism businesses interact?
6. Name four business departments and their functions.
7. How do business departments interact?

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