College of Hospitality and Tourism Management

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CHAPTER 7
TRENDS AND ISSUES IN
TRANSPORTATION
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CHAPTER OBJECTIVES
• Discuss the issues in transportation
• Describe the trends in transportation
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Issues in Transportation
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Fuel Cost
When it comes to moving people, fuel cost is critical. The cost of jet fuel is one of the single
highest factors in airline profitability. In 2015, the average cost was around USD 125 dollars per
barrel, which was 5 dollars less than the previous year. Cruise ships consume a lower grade of
diesel than do land vehicles, but they consume a lot of it.
Labor
As in all tourism-related sectors, cyclical labor shortages can significantly impact the
transportation industry. In the aviation sector, a forecast found that by 2032 the world’s airlines
will need 460,000 additional pilots and 650,000 new maintenance technicians to service
current and future aircraft.
Environmental Impacts
In addition to fuel and labor costs, and regulations, the transportation sector has a
significant impact on the natural environment.
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• Air impacts
The aviation industry is responsible for 4% to 9% of climate change impacts, and
greenhouse gas emissions from flights have risen on 83% since 1990. Airline travel has a
greater emissions impact than driving or taking the train per passenger kilometer.
• Rail impacts
Rail travel is widely regarded as one of the most environmentally friendly modes
transportation due to its low carbon dioxide emissions. Railways come under fire outside of
the tourism realm, however, as freight shipping can produce hazards to resident health
including an increased risk or developing cancer and noise pollution.
• Cruise impacts
Cruise ships can generate significant pollution from black water (containing human
waste), grey water (runoff from showers, dishwashers, sinks), bilge water (from the lowest
compartment of the ship), solid waste (trash), and chemical waste (cleaners, solvents, oil).
One ship can create almost a million liters of grey water, over 113,000 liters of black water,
and over 140,000 liters of bilge water every day. Depending on the regulations in the
operating areas, ships can simply dump this waste directly into the ocean.
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• Land impacts
A recent study found that the impact of travel on land is highly dependent on the
number of passengers. Whereas traveling alone in a large SUV can have high emissions
per person (as high as flying), increasing the number of passengers, and using a smaller
vehicle, can bring the impact down to that of train travel.
• Weather
The transportation sector can have an effect on climate change, and changes in
weather have strong effect on transportation. According to Natural Resources Canada,
some of these include:
• More drastic freeze-thaw cycles, destroying pavement and causing ruts in asphalt.
• Increased precipitation causing landslides, washing out roads, and derailing trains.
• Effects and costs of additional de-icing chemicals deployed on aircraft and runways (over 50 million
liters were used worldwide in 2013).
• Delayed flights and sailings due to increased storm activity
• Millions of dollars of infrastructure upgrades required as sea levels increase and flood structures
(replacing or relocating bridges, tunnels, ports, docks, dykes, helipads ad airports)
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Innovation and Transport Development

There have been five ways in which innovation in transport has
affected tourism:
Time reduction (reduction in travel time, is a reduction in cost)
A reduction in financial cost
Improvement in comfort and safety for passengers
Increased convenience (through increases in connectivity of
destinations)
Increased accessibility of destinations
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Recent Trends in
Transportation
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 Metro Rail
Metro Rail is a Mass Rapid Transport System (MRTS). It is a convenient,
fast, efficient, reliable, comfortable mode of urban transport. Rapid
transit also known as heavy rail, metro, subway, tube or underground is a
type of high capacity public transport generally found in urban areas.
 Monorail
A monorail is like a train, but instead of having two sets of wheels that
balances on a railway track, the monorail is balanced on top of one rail.
Monorails are often used to transport people around large cities. Some
monorails utilize magnets to hover on their rails, reducing friction
between the train and the rail. The first monorail was invented in the
19th century.
 Bullet train
High-speed rail is a type of rail transport that operates significantly faster
than traditional rail traffic, using an integrated system of specialized
rolling stock and dedicated tracks. The first such system began operations
in Japan in 1964 and was widely known as the bullet train. High speed
trains normally operate on standard gauge tracks of continuously welded
rail.
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 Pipeline Transport
It is the mode of transportation of goods or materials
through pipe. Liquids and gases are transported in
pipelines. Pipeline exist for the transport of crude and
refined petroleum, fuels such as Oil, Natural gas and
Bio-fuel etc., and other fluids including sewage, slurry
and water. It requires heavy investment to install.
 Conveyor Transport
It is the broad category of transport mode that
includes modes developed from the idea of a
conveyor belt. Examples include Conveyor belt, two
or more Pulleys with a continuous loop of material
that rotates about them.
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 Ropeway Transport
A Ropeway is another means of transport in naval lifting device. It can be
operated in the place where road construction is impractical and costly.
Certain limit of goods or people can be transported with the help of (naval
lifting device) electricity. In the hilly remote areas ropeway system of
transport may be suitable means of transport.

 Hyper loop
Transport Hyper loop is a proposed system of transport that would see pods
or containers travel at high level speed through a tube that has been
pumped into a near vacuum. The train pods would either float using
magnetic levitation technology or float using air caster "Skis", similar to how
pucks travel across an air hockey table. With so little friction in the tunnel,
the pod would be able to travel at immense speed with projected top speeds
of 760 mph. Hyper loop is a futuristic transport system. Tunnels for the
Hyper loop would be built either above or below ground, at only around 3
meter in diameter, lacking up a smaller ground footprint than traditional rail
or road. Elon Musk an entrepreneur had proposed this mode of transport as
a "fifth mode of transport" in 2012.
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Top Trends for the Global

Airline Industry
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Trend 1: Enabling Frictionless Travel with Biometrics

The adoption of biometrics is still a nascent stage in the industry. But a
technology is few airlines have already begun investing in fingerprint and
facial recognition technology. Currently, the technology is being tested in
areas such as check-in, security, lounge access and boarding.
Long queues for security check or at the baggage carousel continue to be
the foremost pain point for passengers. Also, having to constantly show
their passports, identity cards or boarding passes for verification add to
their frustrations. Airlines are increasingly experimenting with biometrics to
address these issues and make the journey as frictionless as possible for
passengers. In the long run, paper and mobile boarding passes will become
obsolete as airlines use facial, iris or fingerprint scans to identify passengers.
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Trend 2: Humanizing the Experience Through

Artificial Intelligence
Globally, the market for Artificial Intelligence (AI) in airlines is expected to touch
USD 2.2 Billion by 2025. Different use cases for Al adoption across the industry are
gradually taking shape. The most common one, of course, are chatbots that are
becoming increasingly sophisticated in resolving passenger queries.
Some airlines are looking beyond chatbots to leverage the true potential of Al.
For example, a leading Asian airline is using AI to estimate the average lifespan of
the parts on its planes. The airline has been able to quicken inspections, optimize
the inventory for parts and improve operational efficiency. Airlines are also using
AI and predictive analytics to create personalized promotional campaigns to
improve up-sell / cross-sell opportunities. Airline revenue management is another
area where Al and machine learning are expected to drive transformation in the
long term.
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Trend 3: Robotic Revolution and

Automation
Over the next decade, the global robotics and automation market is expected
to touch USD 1.2 Trillion. The airline industry is expected to make up a
significant chunk of this rapidly growing market. Automation of workflows has
been a major focus area for the industry in recent years. And, this focus is only
accelerating with the early-stage adoption of robots.
For instance, a Korean airport has ted up with a leading electronics company
to test two prototype robots that will deliver boarding information and
directions to passengers. A global company that offers services to the air
transport industry has designed an intelligent check-in kiosk that can
autonomously move to congested areas of the airport to reduce the waiting
time for passengers. Robot at a Japanese airport, meanwhile, are automating
several tasks including flagging security risks and transporting luggage.
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Trend 4: Seamless Data sharing Via

Blockchain
The airline industry is characterized by data sharing among multiple
players across the entire value chain. At every touchpoint of the
passengers' journeys, complex data reconciliations happen in the
background. However, given airlines’ siloed systems tor storing data, this
data exchange is rarely seamless. This is one area where blockchain -
often referred to as the ‘Internet of Trust’ - can enable airlines to conduct
smoother data sharing and eliminate multiple transaction costs.
Often, in the event of flight delays, passengers get inaccurate status
updates. Blockchain's inherent ability to provide a single source of truth
can help airlines provide accurate flight updates in real time across
multiple channels during delays.
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Trend 5: Traveling in Augmented/ Virtual Reality

The excitement around Augmented Reality (AR) and virtual Reality
(VR) cuts across industries. Airlines are also exploring different
implementation scenarios tor AR and VR ranging from airport
wayfinding to remote airport operational control centers to immersive
in-flight entertainment.
Gatwick airport in the U.K., for instance, has launched a beacon-
based AR wayfinding tool that shows direction to passengers through
their mobile phone cameras. The AR tool makes it easier for passengers
to navigate within the terminal and locate check-in desks, departure
gates and baggage carousels.
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Trend 6: Passenger Experience and the Internet of

Things
Though airlines are still struggling to bring their legacy systems up-
to-speed, many have rolled out Internet Of Things (IOT) initiatives to re-
define the passenger experience.
Airlines are looking at leveraging IOT for operational areas ranging
from baggage management to in-flight entertainment. Airlines are
offering personalized navigation at airports by integrating their native
mobile apps with airports' beacons. As passengers move across
terminals, their locations can be used to guide them toward departure
gates, push customized offers, or direct them to lounges at discounted
rates.
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Tourism Vehicle Rental Market

Over the decades, tourism has been rapidly growing, while experiencing deepening
diversification and becoming one of the fastest growing economic sectors in the world. Modern
tourism is closely linked to development and encompasses a growing number of new destinations.
These dynamics have turned tourism into a key driver for socioeconomic progress. As tourism is a
huge market, the demand for vehicle rentals is growing around the world.
Tourism Car rental companies are developing strategic partnerships with corporates, airlines,
insurance companies and universities to reduce the percentage of single occupancy vehicles while
touring.
The major growth is expected to come from the Asia-Pacific countries, like Vietnam, the
Philippines, India, and China, where tourism is expected to grow sharply. The tourism transportation
sector is largely dominated by unorganized sector. The tourism sector in Iran is expected to boom,
following the lifting of sanctions. Iran has a rich cultural heritage, important monuments, and tourist
destinations. The number of foreign tourists is expected to rise exponentially. The local vehicle e-
rental market in the country is underdeveloped and offers tremendous opportunities to the players.
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CAR RENTAL SERVICES

Car rental services are a major aspect of the tourism and travel industry.
Those who travel long distances generally use other forms of transport to get to
their destination (plane, train, ferry, etc), then hire a car. Renting a car allows
travelers to see what they want, when they want. For many people, the
freedom, convenience and privacy offered by renting a car far outweighs such
things as the hire cost and the hassle of driving on unfamiliar roads.
Rental cars are essential for most business people traveling away from home.
Time, rather than money, Is the main consideration for most business travelers,
so they are likely to choose late model rental cars which are reliable, fast and
comfortable. Tourists also place emphasis on comfort and reliability, but many
also have budget constraints so they might be more likely to choose smaller or
older vehicles.
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The Rental Agreement

Always look carefully at the rental agreement. Find out exactly what is covered by the
insurance policy. Find out whether your proposed route is acceptable to the rental firm. Some
rental firms will not allow their vehicles to be driven in certain countries (for example, countries
where car theft is a big problem)), or on some roads (for example, roads which are unsealed,
flood-prone, or considered dangerous).
Other things to find out about include:
• Tariffs - is the car hire charged on a daily or weekly rate? Is there an extra kilometer charge or
‘unlimited mileage’? An unlimited mileage rate, which has greater time charge but no kilometer
charge, is more economical for long-distance travel. Are there special offers available such as
weekend rates, advance pre-paid discounts, free model upgrade, or fly-drive packages? Are
there additional taxes to be paid? Are there different rates for low and high seasons?
• Minimal and maximum rental age - the minimum rental age is usually 21 years, but it can be 23
or even 25 years. A young driver surcharge may be applied. The maximum age is generally
between 65 and 70 years.
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• Insurance - does the rental firm offer an inclusive policy; if so, what does this cover? If an
accident occurs, what is the excess payment? Do they offer Collision Damage waiver
which will cover repair costs? Does the policy provide theft protection? Will the driver
and passengers have to take a separate accident insurance policy?
• Deposit - what does the deposit cover (e.g. insurance excess charge, refueling charge if
the car is returned empty)? Most rental firms require the deposit to be paid by a major
credit Card at the time of rental.
• Petrol - the rate quoted normally includes a full tank o petrol. The car must be returned
with a full tank of petrol.
• Additional services - what services are available and what rates are charged for those
services; for example, one-way rental, returning to a different location, having the
delivered and collected from the client’s motel, adding another driver to the rental
agreement, or ordering a baby seat or roof racks?