Unit 04 Travel and Tourism Products and Services

Travel and Tourism - iGCSE
2017-19
Year 11
Unit 04 - Travel and Tourism

Products and Services
3 - Learning Outcomes
1 – Tourism 2 – Tour Operators and
3 – Support Facilities 4 – Worldwide Transport
Products Travel Agents
2.1 – LEARNING OUTCOMES

 ALL WILL – Have at least a clear idea of
what is business staffing, is and why it is
necessary.
 MOST WILL – Be able to recognise the
characteristics of good staff and what to look
for in employees.
 SOME WILL – Use this knowledge to discuss
the benefits and disadvantages of staffing,
how to get the most from staff and how to
lead a team.
1 – Assessment Objectives
AO1 Knowledge with understanding

 Candidates should be able to:
A. Recall, select and present relevant factual information.
B. Demonstrate and apply knowledge with understanding of the correct use
of the following in the travel and tourism industry:
i. commonplace terms, definitions and facts
ii. major concepts, models, patterns, principles and theories.
AO2 Investigation and analysis of evidence
A. Collect evidence from both primary and secondary sources, under
guidance or independently, and be aware of the limitations of the various
collection methods.
B. Record, classify and organise relevant evidence from an investigation in
a clear and coherent form.
C. Present the evidence in an appropriate form and effective manner, using
a wide range of appropriate skills and techniques, including verbal,
numerical, diagrammatic, cartographic, pictorial and graphical methods.
D. Apply knowledge and understanding to select relevant data, recognise
patterns and analyse evidence.
AO3 Interpretation and evaluation

A. Communicate their ideas and opinions in an
accurate, concise and logical manner.
B. Present reasoned explanations for phenomena,
patterns and relationships.
C. Understand the implications of, and draw
inferences from, data and evidence.
D. Discuss and evaluate choices, and make
reasoned decisions, recommendations and
judgements.
E. Draw valid conclusions by a reasoned
consideration of evidence.
Relationship between assessment objectives and components
Assessment Paper 1 Paper 2 Paper 3 Approx. %

objective Core Paper Alternative to Coursework total
% Coursework % Qualification
%
AO1
Knowledge with 40 40 40 40
understanding
AO2
Investigation
and analysis of 35 35 35 35
evidence
AO3
Interpretation 25 25 25 25
and evaluation
1 – Grade Descriptors – Grade A
To achieve a Grade A, a candidate will be able to:

• Recall, select and present relevant factual information and
communicate ideas and opinions in an effective, accurate, concise
and logical manner
• Demonstrate consistently accurate use of travel and tourism
industry terminology, including commonly used definitions,
concepts, models and patterns
• Use knowledge and understanding to select relevant examples,
recognise patterns and trends, and to analyse evidence
• Present thoroughly reasoned explanations for phenomena,
patterns and relationships
• Understand the implications and draw valid inferences from data
and source materials
• Discuss and evaluate choices, and make reasoned decisions,
recommendations and judgements
• Draw valid conclusions by a reasoned consideration of evidence
1 – Grade Descriptors – Grade C
To achieve a Grade C, a candidate will be able to:

• Recall, select and present relevant factual information and
communicate ideas and opinions in a mostly accurate and logical
manner
• Demonstrate sound use of travel and tourism industry terminology,
including commonly used definitions, concepts, models and
patterns, although with some omissions
• Use knowledge and understanding to select some relevant
examples, to recognise some patterns and to attempt analysis of
some evidence
• Present valid explanations for phenomena, patterns and
relationships
• Understand some implications and draw some valid inferences from
data and source materials
• Discuss and evaluate some choices, and attempt reasoned
decisions, recommendations and judgements
• Draw sound conclusions by a consideration of some of the evidence
1 – Grade Descriptors – Grade F
To achieve a Grade F, a candidate will be able to:

• Recall, select and present some factual information and
communicate ideas and opinions with some accuracy and structure
• Demonstrate some use of travel and tourism industry terminology,
including commonly used definitions, concepts, models and
patterns, although with significant omissions
• Use knowledge and understanding to select some examples, to
recognise some patterns and to attempt limited analysis of evidence
• Present limited explanations for phenomena, patterns and
relationships
• Understand some implications and draw some inferences from data
and source materials
• Discuss or evaluate a limited number of choices, and attempt
decisions, recommendations and judgements which may not always
be fully appropriate
• Draw limited conclusions by a superficial consideration of some of
the evidence
1 – Scheme of Assessment
Candidates take:
Paper 1 2 hours
This question paper comprises four scenario-based questions which require candidates to provide short answers.
The scenarios are set in an international travel and tourism environment, although some provision is made for
candidates to refer to local examples.
(60% of total marks)
and either: or:
Paper 2 2½ hours Paper 3

Alternative to Coursework Coursework Investigation* (Centre-based assessment) This is an
This question paper comprises scenario- investigation which is directed towards the contents of Unit 6, and
based questions, which require should allow candidates to apply their knowledge and skills of this
candidates to provide short answers. area of the travel and tourism industry.
It is based primarily on the contents of It requires a basic understanding of the principles of the marketing
Unit 5. and promotion of visitor services. It explores the ways in which the
Candidates should have a broad services that are available to visitors and tourism providers, through
understanding of the principles of tourist boards and tourist information centres, can be promoted and
marketing and promotion, and of the ways developed for international travel and tourism.
in which marketing and promotion are The candidate’s report should be no more than 3000 words, in
used within the travel and tourism addition to relevant annotation and illustrative material. Candidates
industry. will be expected to: demonstrate the ability to collect both primary
and secondary evidence; analyse, investigate and draw conclusions
from this; and present their findings in a structured report.
3 – Customer Care and Working Procedures
3.1 - Deal with customers and colleagues – “the moment of truth”

a) Importance of following customer care policies
b) Necessity of good teamwork and training
c) Importance of courtesy, tact and diplomacy recognised when
dealing with customers and any specific needs
d) Procedures for handling complaints
3.2 - Identify the essential personal skills required when working
in the travel and tourism industry
e) Awareness of the need for essential personal and interpersonal
skills in particular job roles
f) Importance of personal presentation, clear speech, numeracy and
literacy skills
g) Awareness of applications of technology:
• computerised reservation systems
• other information technologies, such as: telephone, telex, video
text, facsimile, Internet
3 – Customer Care and Working Procedures
3.3 - Follow basic procedures when handling customer enquiries,

making reservations and payments
a) Customer’s requirements correctly interpreted upon receipt of an
enquiry (in person, in writing, by telephone/fax/email)
b) Simple reservation file prepared following set procedures, including
use of diary for further action required
c) Simple receipt issued and payments recorded
3.4 - Use reference sources to obtain information
d) Timetables, travel brochures and tariffs used to obtain accurate
information
e) Itinerary drawn up to meet customer’s requirements
f) Use of computerised information systems and relevant technology to
obtain information (Worldspan, Sabre, Galileo, World Wide Web)
g) Exchange rate lists devised and used
3.5 - Explore the presentation and promotion of tourist facilities
h) (a) Range of promotional methods and their use identified (e.g. visual
displays for shop window, advertisements, leaflets, brochures,
Internet)
4 – Products and Services
3 – Support Facilities 4 – Worldwide Transport Page 131
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.
4.1 – Identify and Describe Tourism Products
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.
The more research you can Activity 1 A
KEY NOTE FOR STUDENTS
carry out into the range of With regards to your local area, identify the main
travel and tourism products product or service of each of the following types
of travel and tourism provider.
and services that are now
• Travel agent:
available around the world, the • Tour operator:
better equipped you will be in • Accommodation provider:
answering the case-study type • Transport provider:
questions that occur in the • Tourist attraction: Catering outlet:
examination in Paper 1. • Entertainment venue:
E
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
E
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 E
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.
► 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.
► 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.
E
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.
E
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.
4.2 – Explore the roles of Tour Operators and Travel Agents
Marketing services
► We have already looked briefly at the component sub-sectors
of the international travel and tourism industry and at the role
of the tour operator and the travel agent within the distribution
process.
► We will now explore the roles of tour operators and travel
agents in much more detail and will use a case study approach
to understand the specific roles that each plays in bringing
travel and tourism products and services to the customer.
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.
► It is in the way in which international tour operators obtain these
products that give them a ‘wholesale’ function - they acquire these
various components of a package holiday, such as 25 double rooms in a
hotel for the first week in August, 50 economy class airline seats on a
charter flight to the destination in which the hotel is located to arrive at
the beginning of August, a 54-seater coach to transfer passengers from
the airport to the hotel upon arrival in the destination, and 50 places on
an excursion to the local tourist attraction within that destination on a
given day during that week in August.
International tour operators

► Having ‘accumulated’ all of these products, the tour operator bundles
them as a package and makes this package available to the customers,
by marketing and distributing the package to the customers in their own
country.
► 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.
Eco-Tourism
Package
Cruise Tour
Package
Types of tour operators - 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.
► Mass market tour operators tend to be the most recognisable names
in the industry such as TUI Travel PLC, the world’s leading leisure
travel company operating in over 180 countries with more
than 30 million customers using 200 different brand names.
It owns TUI, the market leading tour operator
brand in Germany and Thomson,
the leading UK tour operator as
well as LateRooms.com, the
hotel industry’s leading online
late availability’ database.
Types of tour operators -

Inbound tour operators
► Inbound tourism is the
name given to the type of Maurisun International, though based in the
tourism which brings Indian ocean, represents travel agencies
worldwide.
visitors into specific Its services range from booking hotels and
tourism receiving areas. other accommodation to organising exciting
► Therefore, an inbound adventures and eco tourism activities in
tour operator is the type of Mauritius and Rodrigues. It consults agencies
organisation which when creating holiday packages to fit the
traveller’s budget and taste.
produces packages aimed
They also provide personalised services like
specifically at bringing airport transfer, car hire, eco tours, seminars,
overseas visitors into a excursions, adventure, guided tours etc.
destination. Local experience and local connections are the
► Look at the example of main benefits that a customer derives from an
Maurisun, an inbound tour inbound tour operator such as Maurisun
International.
operator for Mauritius.
Types of tour operators - 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.
► Club Med is just one example of an outbound tour operator, with
branches across the world.
E
Example
► The Club holiday Mediterranee
experience was first created in 1950. In its
first year, 2,300 customers from France
were taken to stay in tent-accommodation
on beaches in the Balearics, taking part in
sporting activities. Some 10,000 other
interested customers had to be turned
away because of the popularity of this first
‘all-inclusive’ package.
► Since then, Club Med has gone from
strength to strength as a tour operator,
now operating 80 different holiday villages
in 25 different destinations, and with an
average of 1.2 million customers each
year. Club Med started small by offering
holidays for single adults but scaled fast.
E
Example
► This rapid growth has been made possible
by loyal guests who are willing to prepay
for their vacations, the lack of any direct
competition, and Club Med’s ability to
‘cross’ into the mass tourism market.
► The latter required Club Med to replace its
original tent villages with more comfortable
hotels and bungalows, add couple and
family-friendly facilities, and extend sales
and marketing efforts outside France.
► Club Med uses a combination of direct
sales methods as well as developing a
relationship with travel agents, in order to
make its products and services available to
customers around the world.
► http://
www.clubmed.co.uk/cm/home.do?PAYS=3
Types of tour operators –

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.
► Examples of domestic tour
operators include Kerala
Travels Interserve in India;
Casey Tours in Australia and
the London Travel Service in
the UK among others.
Types of tour operators – 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.
► Through these strategies, tour operators can achieve
considerable buying power and control over their
suppliers - the principals, as well as the distribution of
their products.
Horizontal integration refers to a situation when companies

join together with the aim to remove competition, to increase
economies of scale, and to increase their purchasing power.
KEY NOTE FOR STUDENTS
Horizontal integration occurs with mergers at the same level

in the tourism distribution or supply chain, i.e. mergers between
different tour operating companies.
Vertical integration occurs with the take-over of businesses at
different levels of the distribution chain. For a tour operator
this means investment into either suppliers through backward
integration (example, accommodation, transport) and/or
forward integration (example, travel agents). The main
advantages are control over supplies in terms of quality,
availability, access and price, and the ability to reach
consumers.
Vertical integration is a significant feature among leading tour
operators today and has drastically increased an recent years.
Operating characteristics of tour operators

► Integration practices have also led to increased
specialisation and the development of niche operators
and niche products. Small and medium size operators
have to compete with larger, integrated companies.
► 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.
Mainstream tour operators

 Carry high volumes of tourists.
 More destinations in developing countries are available to more customers.
 Generally operate on low margins and high volumes.
 Continue to sell mainly on price.
 Serve customers that are highly price-sensitive and low spending. In recent
years, all-inclusive developments and thus the manageability and predictability
of holiday expenditure, have become increasingly attractive to this segment.
 Tend to channel their clients and market their destinations through travel agents
that they own. High Street travel agents remain the first choice for consumers
seeking package holidays.
 Focus on a relatively standardised and basic product (sun, sand and sea), with
little interest in destination specific products and attributes.
 Carry large volumes and have thus considerable power in tourism destinations
dependent on them for visitors.
 Are now introducing less standardised and more tailor-made holiday options,
reflecting changing consumer demands and offering more opportunities for local
suppliers.
 Are frequently preferred trading partners for local suppliers because of the
volumes that they provide.
Independent tour operators

 Carry relatively small volumes.
 Often serve ‘off-the-beaten-track’ destinations to a fast growing consumer segment
that desires tailor-made and high quality tourism products.
 Are increasing their specialisation and have adopted niche products in order to
distinguish themselves from inexpensive mainstream operators.
 Serve consumers that are less price-sensitive, and higher spending customers.
 Interest in ethical products is growing and customers interested in ethical tourism
are often the better- off, sophisticated travellers, using independent and niche tour
operators rather than mainstream.
 Generally do not use integrated High Street travel agents, but independent agents
and direct-sell. Technological advances, in particular the Internet, have largely
advantageous impacts on niche operators.
 Are highly dependent on local supplies, to the point that this is often their unique
selling point. They provide a more complex and less standardised product, one that
goes beyond simply providing accommodation and transport, by focusing on
destination characteristics.
 Tend to have long term relationships with their suppliers in the destinations and to
adopt a partnership approach.
 Generally pay higher prices to local suppliers due to the low volumes they purchase.
Adapted from: http://www.propoortourism.org.uk/info_sheets
Nature of tour operations

► All tour operators have to perform similar roles in putting together a
holiday package or a tour; this involves planning, organising and selling
tours or packages.
► The initial stage of the process involves research and planning. Product
managers will focus on a selection of resorts, choice of accommodation
and selection of departure airports aimed at particular market segments.
► A holiday season is planned almost 12 to 18 months before the
brochure is issued and tours or holiday packages are released into the
market.
► Tour operators estimate how many customers are likely to require each
type of product, in order for the
capacity of the package to be
calculated. This helps in deciding
how many holidays are to be
arranged in each resort. Once
this has been decided,
accommodation and flight

► The planning process also involves market research, to determine the
requirements of the potential market as precisely as possible. This helps
tour operators to maximise their sales potential.
► Internal and external data from the previous seasons are also
considered together with an analysis of what their competitors are
offering.
► Once the initial planning and research stage has been carried out, tour
operators begin negotiating with providers in the resorts and with travel
principals. This role is often carried out by senior managers within the
organisation as it will result in
contracts being drawn up.
► The negotiations include agreements
on price, quantity and quality.
Competition here is strong as several
mass market tour operators
incorporate the same accommodation
in their packages.

► 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.

► The tour operator then decides an appropriate price for the
package before beginning the marketing and selling of the
finished product. Brochures are produced to provide all of the
details about the package - these can be online or printed.
Depending on the type of tour operators, travel agents may
also be involved in this process.
► Once the packages are released
for sale, tour operators and
travel agents are engaged in
sales of the product, and
reservation processes. There
are usually computerised
systems to handle the holiday
bookings.
Tour operators and price

► The average profit made on package holidays is low. The Civil Aviation
Authority (CAA) records that, in the UK, the average tour operator’s return
on turnover in recent years remains around 2-3% and amounts to some £8
profit on a £400 holiday.
► Not only are the margins low, but tour operators also have to manage
considerable risks. For example, holiday prices are set at least 12 months
before a holiday takes place and a significant proportion of the costs can
be subject to considerable fluctuation - especially in exchange rates and
aviation fuel costs. Although tour operators are able to protect themselves
from some of these fluctuations by ‘buying forward’, it is expensive.
► Another risk can arise from the unexpected loss of popularity of a country
where the tour operator has made contracts with hotels, tour companies
etc. Trends in popularity often occur because of political or security issues,
natural disasters such as typhoons or volcanoes, or as a result of
economic factors such as unfavourable exchange rates or new aviation or
tourist taxes etc. This causes a high level of price elasticity between
holiday markets.
Holiday pricing
► Many tourists find it difficult
to understand why there is a
variety of prices in tour
operators’ brochures. The
underlying reason for these
different prices is that
differences in demand occur
at different times and for
places.
► Tour operators try to set
prices to ensure that as
many airline seats and hotel
rooms are used as possible.
Holiday pricing
► The main components affecting tour operators prices are:
1. Peak and off peak pricing (seasonality)
 Package holidays are usually organised into two seasons:
Summer (May to October) and Winter (November to April). This is
achieved by varying the price to reflect the changes in demand for
holidays.
 The summer season is the main time to travel due to school and
factory holidays and due to the weather. There is a double
pressure on demand. There are only a finite number of beds and
aircraft seats available at any given time, therefore prices must rise
for those periods.
 Tour operators are generally committed to hotel rooms and airline
seats for a full 6 month season, so that the only tool available to
even out demand is price.
 It should be remembered that in order to fill an aircraft in the
quieter months, tour operators frequently sell holidays at or below
Holiday pricing
2. Flight Times
Better overall prices can be
achieved if aircraft are used
throughout the day and night.
Most customers would unsocial
times if the price is right. This
policy helps keep all holiday prices down, not just those
using midweek night flights.
3. Single room and other accommodation supplements
Most tour operators’ contracts with hotels and apartment
owners are based on a price per room, whilst their brochure
holidays are sold price per person. As a result, the per
person price for a single traveller includes the whole room
cost.
Tour operators and exchange rates

► A high proportion of the costs incurred by tour operators is paid in
foreign currencies in the destination country for hotel bills, transfer
charges, airport charges etc. Also aviation fuel is always priced in US
dollars.
► As holiday prices are advertised a long time before the tour operator
has to pay hotels, airlines etc., variations in exchange rates could
have a major impact on the profit a tour operator makes.
► Tour operators sometimes decide against
giving a ‘no surcharge guarantee’ - although
in the UK, tour operators are prevented by
law from passing on the first 2% increase in
costs once the holiday has been bought in
advance. This provides the consumer with
some protection from price increases based
on fluctuations within the economy after the
holiday has been paid for.
Tour operators and consumer protection

► As the figure points out, many tour operator companies around the
world face financial failure because of the strong competition faced
from other such businesses.
► In the case of another tour
operator, XL Leisure which
failed in 2008. hundreds of
tourists became stranded
abroad as the company
went into liquidation.
Consumer protection,
therefore, becomes an
essential part of a tour
operator’s role.
Source: http://
www.travelweekly.co.uk/Artides/2011/04/21/36914/long-
haul-operator-silverbird-travel-fails.html
Tour operators and consumer protection

► This is why some countries have developed licensing and bonding
schemes or have passed legislations designed at protecting
customers once a package holiday has been purchased.
► One example of legislation is the Package Travel, Package Holidays
and Package Tour Regulations 1992 adopted by the European Union.
The aim of these regulations is to give customers access to
compensation when things go wrong with their holiday.
► Prior to these regulations, tour operators in Europe often claimed no
responsibility for overbooking in hotels or if a coach transfer from the
airport did not arrive as these were beyond their control.
► Under the terms of these regulations, tour operators in Europe must
now assume legal responsibility for all of the services they offer under
a ‘package’ they sell.
► As well as adhering to legislation such as these regulations, many
tour operators take part in licensing or bonding schemes offered by
national trade associations.
Example
E
► In the United States, the United States Tour Operators Association (USTOA) is a
professional association representing the tour operator industry. Members contribute to
the $Million Traveller Assistance Programme, a scheme that requires each USTOA
member company to post $1 million in security in the form of a bond or letter of credit.
The security, to be held by USTOA Tour Depositors Trust, is solely for use in
reimbursing consumers for tour payments or deposits lost in the event of:
 a USTOA Active Member bankruptcy
 a USTOA Active Member insolvency
 a USTOA Active Member cessation of business.
► Air Travel Organisers Licence (ATOL) is a licence issued by the Civil Aviation Authority
in the UK which protects tourists from losing money or being stranded abroad. It does
this by
► carrying out checks on the tour operators and travel organisers it licenses. It also
requires them to take part in a financial guarantee scheme managed by the Air Travel
Trust (ATT) which provides the funds to protect customers should a tour operator fail. If
a tour operator goes out of business, the CAA will ensure that the customer does not
lose the money they paid, or if the tourist is abroad, the CAA will arrange for the tourist
to finish the holiday and then fly them home.
► Little Luxury Islands is a small, independent tour operator in the UK which offers luxury
holidays to resorts in the Maldives, Mauritius, the Seychelles and Sri Lanka. All of its
holiday packages are ATOL bonded, for consumer protection.
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.
► Below is a screen shot of the ebookers.com
website. This is an example of an online
travel agency, through which tourists can
research and make holiday and travel
arrangements.
Case Study 2: Online travel agencies

► ebookers.com is a leading pan-European online travel agency specialising
in worldwide travel. It offers a wide range of travel products including a
choice of over 250 airlines, more than 86,000 hotels, holidays, car hire
and insurance, ebookers. com is part of Orbitz Worldwide (NYSE: OWW),
a leading global online travel company.
► It prides itself on its passion for travel and on its strong customer
experience. The company offers a full range of travel products online and
over the telephone. It also operates local online travel agencies across 13
countries in Europe and its headquarters are in Central London.
Why do customers shop with ebookers?
► Customers visit ebookers.com for its travel expertise, range and value.
They are a travel company that has embraced the internet, not the other
way round.
► The call centre and website teams have a passion, expertise and
knowledge of travel which is reflected in the way they do business. The
company is able to offer travel products at a discount of up to 75% off the
standard prices.
Case Study 2: Online travel agencies

► It continues to grow in popularity because of its close relationships with
leading travel suppliers which enables ebookers to offer discounts,
known as ‘negotiated’ or ‘merchant’ fares, to its customers,
ebookers.com sells to destinations around the world and has a particular
speciality in long and mid haul destinations including Australasia, the Far
east and the Americas.
► Ebookers.com also offers travel insurance with one the world’s largest
insurance providers, AIG, bureau de change and airport parking
facilities, as well as
assistance with
processing visas
for Australia.
Operating characteristics of travel agencies

► There is also a strong competition from the
growth in direct sales by some tour operators,
which means that travel agents need to be more
flexible in their approach. They offer high levels
of customer services and are not be so reliant on
selling only the traditional sun, sand and sea packages.
► 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.
Travel agents and consumer protection

► In the same way that tour operators often enter into bonding and licensing
schemes to ensure that customers are protected in the event of the
financial failure of any component part of package holiday, many travel
agents around the world are also licensed and/or bonded in the same way.
► For example, International Air Transport Association (LATA) simplifies the
business relationship between travel agents and airlines. Some 60,000
IATA travel agents worldwide currently benefit from IATA accreditation.
Some of the benefits of IATA accreditation for travel agents are as
following:
 A single Agency Agreement which authorises the sale of international
and/or domestic tickets.
 IATA’s Billing and Settlement Plan, which is an efficient interface for
invoicing and payment between the agent, airlines and transport
providers.
 Unique identification throughout the global travel industry with the ‘IATA
Numeric Code’.
 Standardised procedures to ensure fair dealings with the airlines.
E
Example
► The ASTA logo is recognised
around the world as a symbol of
professionalism and integrity. It
shows ASTA membership, and offers
customers reassurance that an
agency is reliable and trustworthy.
► ASTA, the American Society of Travel Agents, is the world’s largest
association of travel professionals. Its members include travel
agents and companies whose products they sell such as tours,
cruises, hotels, car rentals etc. ASTA is the leading advocate for
travel agents, the travel industry and the travelling public.
► They also have membership categories for students, travel schools,
retail sellers and others.
Adapted from: http://www.asta.org/about/index (Reprinted with the
permission of ASTA)
4.3 - Describe Support Facilities for Travel and Tourism
Describe support facilities for travel and tourism

► We know that many destinations rely on the contribution that
travel and tourism makes to the economy. However, in order
to attract tourists,
a destination must
have adequate
infrastructure and
other support
facilities to
support the
number of visitors
that stay there.
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.
5 Quick Facts
About Business Tourism in South Africa
1. South Africa boasts world-class convention facilities:
Cape Town, Durban and Johannesburg are the country's major convention cities and
boast internationally acclaimed facilities, while there are more than 1700 smaller
conferencing venues across the country.
2. South Africa has an enviable track record: South Africa hosts more than 850
international conference events each year. In 2006, there were nearly 26,000
exhibitors with a total of 3.7 million visitors attending.
3. Transport infrastructure improved:The country's three main airports have been
extended and refurbished. Construction has also begun on a new international
airport north of Durban. Improvements are being made to major highways, and work
on the new Gautrain rapid rail commuter link has also started.
4. More flights being added: Air France, South African Airways and Dubai-based
Emirates have all added new flights to make getting to South Africa easier.
5. Business and pleasure combined: South Africa has a magnificent climate, a
passion for nature and the great outdoors, world-class sporting facilities - including
superb golf courses - and a rich social, cultural and political history combining to
create a unique experience for the business traveller.
Source: Cambridge 9395 P3 Q4 Figure 4 (a) June 2010
Concept of infrastructure
► 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.
► The following case study
shows how emerging
economies are investing
in improving their
transport infrastructure in
order to attract increased
visitor numbers from
further afield.
Case Study 3: Seoul develops tourism infrastructure

► Seoul is significantly increasing its role as an all-in-one hub for tourism
in 2011 as two new high-speed rail services are added to the South
Korean capital’s already extensive rail network.
► Dramatically cutting down commuting time, last month saw a direct rail
link opened between Incheon International Airport and downtown
Seoul ahead of plans to build the city’s largest convention centre to
date near the terminus, while the new Gyeongchun Line now bridges
the divide between Seoul and Chuncheon, metropolitan capital of
nearby Gangwon Province, famous for its cuisine and lake district
scenery.
► Although Incheon International Airport
has frequently won the World’s Best
award, including in 2010, visitors have
been less complimentary about the
heavy traffic across the 58km stretch
journey into Seoul City.

► In addition, the existing airport-metro rail link includes many stops in transit
and terminates at Gimpo International Airport, requiring passengers to switch
over to the Seoul subway system, which is time- consuming and does not
always meet the needs of the passengers.
► The new underground line can deliver passengers from Incheon Airpon to
Seoul Station, the city’s central transport terminus in about 40 minutes less
than half the travel time of the other services.
► The new rail link comes at a time when plans are underway to revitalize the
Seoul Station area, which in 2015 will see the completion of a new
convention centre and business park.
► Dubbed as ‘Seoul Station Convention
Centre’, the new complex will include Korea’s
largest conference facility and an exhibition
space, a multipurpose cultural space that will
be larger than COEX which is currently
Seoul’s main exhibition venue, including a
3,000- seat international conference centre.

► The shortened commuting time makes Chuncheon an ideal day-trip
destination for regular and business tourists with a free day in their
stopover schedules.
► Famous for its lakes and island resort getaways, Chuncheon is also well-
known to Asian visitors as the backdrop for the popular Korean television
drama, Winter Sonata, including the major attraction and resort island of
Namiseom.
Source: Published Jan 10 2011 by Travel Daily Asia (adapted from:

www.silobreaker.com/seoul-develops-tourism-infrastructure)
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.
Type and range of accommodation available

► 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.
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 ▲ 5 Star Hotel
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 Star Hotel
► Services at large international hotels tend
to be formal, whereas services at a
smaller, family run hotel may be more
friendly and relaxed. ► 1 Star
E
Example
► This small, friendly family-run hotel offers
good value accommodation in peaceful
surroundings. The hotel is privately owned
and is situated on the west side of the historic
town of Ludlow.
► The hotel stands in an acre of grounds with
lawns to the side and car parks to the front
and rear. Guest rooms have views of the
surrounding countryside and some have
views of Ludlow Castle.
► There are nine en-suite rooms on two floors
which are equipped with flat screen TVs, tea
and coffee making facilities and free Wi-Fi
access. Breakfast is included in the tariff and
is cooked to order.
Source: http://www.thecliffehotel.co.uk/index.php
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.
Example E
Villa Sunrise - Bali
► Villa Sunrise is a beautiful guesthouse on the northern
coast of Bali. The house contains three bedrooms,
two bathrooms, a kitchen and a combined dining room
and living area.
► Although it easily sleeps 6 persons, if rented to more
than two persons and because of the unique design of
the open floor plan, it would only be appropriate for
either friends or families. Villa Sunrise has a choice of
well appointed rooms. All linen and bath and beach
towels are included.
► A stay at Villa Sunrise also includes a fresh and
delicious breakfast, including wonderful Balinese
coffee prepared by the house maid, who will also
clean the house daily and do your laundry.
► Your friendly hosts will be happy to arrange individual
tours that will satisfy all ages and interests.
Source:http
://www.bedandbreakfastworld.com/indonesia/bali/villa-
sunrise-guesthouse/11144
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.
E
Example
Kathmandu H1 Thamel Hostel
► Kathmandu H1 Thamel hostel is
operated by Nepal Youth Hostel
Council. It provides budget
accommodation in safe, clean and
friendly surroundings at an affordable
price for international and domestic
guests and travellers.
► The hostel is situated in the heart of
downtown Kathmandu Valley. One of
the famous royal palaces, Basantpur
Durbar Square, is near the hostel.
Source:http://www.hostelworld.com/
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.
Economies of operation and scale of investment

► It is also difficult to estimate the extent of investment in the
accommodation sector, given the huge variety of accommodation
providers worldwide. The availability of quality, value for money
accommodation is a key component in destination choice and a top
three consideration in short-break travel.
► 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).
 For example, Singapore had an occupancy rate of 75.8% in
2009 - which means more than three quarters of the
available hotel accommodations were occupied during the
year.
 Occupancy rates in Dubai fell dramatically early in 2010 to
below 50% but rose to 80% by the end of the year.
Measures of efficient operation

► 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.
► Some countries, including the United Kingdom
have adopted a grading scheme for guesthouse
provision. This works in much the same way as
the star rating used in hotel classification but uses
a diamond symbol in place of the star.
► Again the more diamonds an establishment
receives based on inspection of its products and
service provisions, the higher its quality.
► The best measure of the quality of products,
services and facilities of accommodation
provision is the popularity of establishments with
customers.
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.
Facilities provided for business/leisure tourists

► The needs of leisure tourists are more
difficult to predict. However, many
hotels now provide leisure and spa
clubs in an attempt to entice more
customers.
► Many hotels have included a wider
range of in-room products and
services such as MP3 players, in-
room entertainment via cable or
satellite TV etc.
A
Activity 2
Make a list of different accommodation providers in your local area.
Identify what type of accommodation is offered at each
establishment and decide who the most likely customers will
be for each.
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 public transport provision

► 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 - this might be by
water taxi in destinations such as Male
in the Maldives; or by airport express
train such as in Hong Kong; or by public
coach services such as the SkyBus
shuttle bus service between Melbourne
airport in Australia and the city centre.
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.
E
Example
► SMRT is Singapore’s premier multi-modal public
transport service provider offering integrated transport
services island-wide. This means that the organisation
offers an extensive network of trains, buses and taxis
to transport people around Singapore.
► The Mass Rapid Transit (MRT) train system is
complemented by the regional Light Rail Transit (LRT)
system. There are approximately 80 MRT stations
around the island and more than 30 LRT stations.
► There are also more than 800 SMRT buses covering
approximately 75 routes. The organisation also
provides a fleet of more than 3000 taxis for public use.
4.4 – Features of Worldwide Transport
Explore the features of worldwide transport in relation to major

international routes
► Previously, we have looked at some of the world’s major cities in terms of
their importance as major transport hubs and gateways for international
travel. We now look in more detail at the three main types of transport (by
air, by sea and overland) and how these have established international
routes using a variety of hubs and gateways for passengers to enter and
exit important tourist receiving areas.
Air transport
► In this section, we will identify some of the main intercontinental routes and
the airports that operate as hubs and gateways for these routes.
► It would be difficult to cover every major intercontinental route as increased
technology has allowed a much greater variation of long-haul flight options
than was previously available. Increased air passenger numbers have also
increased the number of hub airports
around the world.
Types of air transport operation
► Flights can be either international or
domestic. International flights are those
which take off in one country and land at a
destination in different country, whereas
domestic flights are those which connect
two destinations within the same country.
► The following table (Fig. 4.2) shows the ‘Top
Ten’ rankings of airlines by number of seats
available on international flights in the week
beginning 07/03/2011. ▲ Fig. 4.2 - International flights
▲ Fig. 4.1 - The map shows just some of the flight routes taken by United Airlines, an airline
based in the United States.

► The table below shows the same ranking of the airlines by number
of seats available on domestic flights during the same week.
► United Airlines serves a total of 114 different destinations in 31
different countries. Examples of flights with United Airlines include
an international flight from Abu
Dhabi in the United Arab Emirates
to Frankfurt in Germany, and a
domestic flight example is the
one between Atlanta and Chicago
in the United States of America.
► United Airlines has the Chicago
O’Hare International airport
(ORD) as its main base, and
offers flights to 74 destinations
from this airport. ▲ Fig. 4.3 – Domestic flights

► The chart in Fig 4.4 shows the main airports used by United Airlines.
► Different airlines use different airports as their base. British Airways uses
London Heathrow (LHR) as its base, serving 77 different countries and
connecting 162 different destinations.
► Qantas, the national carrier for Australia, serves 90 airports in 28 different
countries and makes its base at Sydneys Kingsford Smith Airport (SYD)
in Australia. Air Mauritius serves 34 different countries and 84 different
destinations, with its main base at the Sir Seewoosagur Ramgoolam
International Airport (MRU) at Plaisance in Mauritius. The chart in Fig 4.5
shows that more than 30% of flights by Air Mauritius are to France.
▲ Fig. 4.4 – Airports used by United Airlines ▲ Fig. 4.4 – Air Mauritius flights

► All of the above mentioned airlines are national
airlines, offering scheduled services. A scheduled
service is a regular service between two destinations
operated according to a published timetable,
available for use by any member of the public. Low
cost airlines such as Ryanair and easyjet in the UK
and Spicejet in India also offer scheduled services.
► The main difference between full service carriers
such as British Airways and Qantas and low cost
carriers such as easyjet and Spicejet is in the level of
service offered. In order to keep costs low, the low
cost carriers tend to offer no frills services, meaning
that passengers must pay extra to receive onboard
refreshments and entertainment, which are usually
provided free of charge on a scheduled service, or to
check in baggage for storage in the aircraft’s hold.

► Low cost airlines also tend to use smaller, regional airports as their
base because of the cheaper rates charged by these airports.
► There are also chartered services available from airlines such as
Monarch Airlines in the UK and TUIFIy in Germany. A chartered
service is one whereby all of the seats for a particular flight have been
pre-booked by a tour operator, for example, for use with package
holiday customers to a specific destination. It is possible for
businesses to ‘charter’ a flight as well - this means to privately hire an
aircraft for a specific purpose.
► TUIFIy operates flights to a
variety of holiday
destinations in Europe, as
can be seen from the chart
in Fig. 4.6.
►Fig 4.6 – TUIFIy


► Airports act as hubs and gateways for travellers. A hub occurs where a
network of airline routes pass through a major airport with many
connecting services to and from the outlying airports. Travellers use a
hub airport to transfer from one flight to another usually with the same
airline, in order to reach a destination not served by a direct flight.
► A gateway is the name given to any destination or main point of access
to a country or region because of
its location and its transport links.
This can be a seaport or an airport
as well as a city or other types of
destination.
► The top 10 busiest airports (by
passenger numbers) in the world in
2018 were reported by the Airport
Council International as follows.
►Fig 4.7 – Busiest airports in the
world
Operating economics of air transport

► The airline industry transports two billion passengers every year. The
demand for air transport is closely linked with economic development;
the industry creates over 29 million jobs globally, both directly and
indirectly.
► It is said that 40% of international travellers now travel by air, although
only 5% of the total world population has flown at least once. The Air
Transport Action Group (ATAG) estimates that the aviation industry
contributes approximately US$ 3tn, equivalent to 8% of the world Gross
Domestic Product (GDP). Thus, the economic impact of air transport is
considerable.
► However, the industry is also
susceptible to the fluctuations in the
global economy; this means that
the industry has been hard hit as a
result of the recent global
recession, with demand falling
significantly.

► The industry is hugely competitive, with 900 airlines
and nearly 22000 aircrafts serving 1670 airports. To
overcome the effects of the recession and the
continuing increases in oil prices, airlines have had to
reduce costs over the last few years and to look for
additional sources of revenue.
► There have been many examples of airline failure
during the recession, with both low cost and full
service carriers losing out. Amongst those in financial
difficulty in 2010 were Japan Airlines and the world’s
fourth oldest airline, Mexicana, based in Mexico City.
The governments in both of these countries
encouraged investors to rescue’ these airlines
► Japan Airlines continues to trade while Mexicana
ceased operations in August 2010, but it is hoped
that sufficient private investment can be secured to
restart services on a smaller scale in 2011.

► In 2008, the International Air Transport Association (IATA) calculated that more
than 50% of the airline expenditure is needed to pay for labour (24.8%) and fuel
(25.3%) costs.
► The industry is currently very concerned with the rapid increase in crude oil
prices; every US$ 1 rise in the price of crude oil adds more than US$ 1.6 billion to
aviations annual fuel bill. IATA also forecasts that the average oil price will
increase to US$ 84 per barrel in 2011, up from the US$ 79 per barrel in 2010.
The total fuel bill for 2011 is therefore expected to be US$ 156 billion, up from
US$ 139 billion in 2010. However, the cost of crude oil topped US$ 95 a barrel in
January 2011, adding to fears that the final bill could be considerably higher.
Some analysts believe that the price of oil will rise to US$ 100 a barrel.
► Other expenses that airlines face include:
 aircraft insurance premiums,
 maintenance costs,
 landing fees,
 advertising and promotion costs,
 air navigation service charges,
 food and beverage supplier costs,
 travel agency commission and ticketing costs.

► Airlines, especially the low cost carriers, now adopt direct distribution
methods, such as online bookings and e-ticketing to cut out the need for
a travel agent, thus saving airlines from having to pay commission to
these intermediaries.
► China is set to overtake USA as the world’s largest market for
commercial air travel. Statistics show that the US carriers had 704 million
domestic and international passengers in 2009, and the forecast is to
reach 1.21 billion by 2030. But the Civil Aviation Administration of China
has projected that
Chinese carriers’
passenger numbers
will increase from
230 million in
2009 to 700 million
by 2020 and to 1.5
billion by 2030.
Regulation and deregulation of air transport

► Regulation is the term used to describe the measures and controls that exist
over industry practices. Deregulation is the term used to describe the
situation in which organisations within a given industry or market, such as air
travel, becomes ‘self-regulating’; i.e. airlines assume responsibility for the
routes they offer and the prices they charge.
► In the case of air travel, air traffic, the standards of safety, how airports are
managed and how airlines operate in competition with one another can be
controlled through regulation either at a national level or at an international
level. This is in terms of routes and prices offered.
► Up until the 1970’s, the airline
industry as a whole operated on a
regulated basis - i.e. the
governments of individual
countries exercised control of air
travel, working with international air
transport organisations for support
in decision-making processes.
Regulation and deregulation of air transport

► Many people believe that regulation offers a greater level of consumer
protection, with an independent authority ensuring that the industry does not
come under a monopoly. This is to prevent one or two main airlines making
all of the decisions and dominating the provision of services across the main
intercontinental routes.
► In 1978, the airline industry in the United States of America became
deregulated. This marked a significant turning point for all air travel as all
barriers of entry and price restrictions on airlines were removed affecting, in
particular, the carriers permitted to serve specific routes.
► A new ‘Open Skies’ era began, with the US making agreements with other
countries to remove the barriers of competition and to allow access to
foreign markets. This meant that airlines could form partnerships with one
another to serve the main international routes.
► Many other countries have since deregulated their air travel markets.
However, even today, domestic air services tend to be operated by airlines
within their own territory.
► Deregulation has increased the level of competition between Airline
airlines and has helped to keep the cost of air fares lower. Deregulation
Airline alliances
► An airline alliance is an agreement formed between several airlines to
establish co-operation in the global aviation industry. Co-operation helps the
airline- in improving their performance with respect to air transport and
customer service.
► The extent to which airlines co-operate differs according to terms of the
alliance; however, smaller airlines find belonging to an alliance beneficial
Airline alliances provide the member airlines with a number of benefits.
These include Code Sharing Agreements and cost reductions with respect
to operations, maintenance, investments and purchases.
► Benefits enjoyed by travellers include lower airfares, increasing options of
departure times,
availability of flights to a
greater number of
destinations, reduced
travel time and various
special offers.
Case Study 4: Describing products and services

► There are three main international airline alliances: Oneworld, SkyTeam and
Star Alliance (see previous slide).
► With 27 members, Star Alliance is the largest airline group. Star Alliance
transports about 600 million passengers each year and serves more than
1,100 destinations. Its members include Air Canada, Air China, Austrian
Airlines, BMI, Lufthansa, South African Airways, Singapore Airlines, Swiss
International Airlines, Thai Airways, Turkish Airlines, US Airways and United
Airlines.
► With 19 members, Oneworld was formed in 1999, two years after Star
Alliance. Oneworld transports 335m passengers every year and covers more
than 900 destinations. Its members include British Airways, American Airlines,
Cathay w Pacific, Finnair, Iberia, Qantas, Japan Airlines, Malev and Royal
Jordanian Airlines.
► SkyTeam is the smallest of the three alliances, with 13 members. However, it
transports more than 384m passengers every year and serves nearly 900
destinations. Its members include Air Europa, Air France, Alitalia, Aeroflot,
Aeromexico, Continental Airlines, Czech Airlines, KLM, Delta Airlines and
Korean Air.
Airline alliances
► Despite the global economic instability, investment
in developing air transport continues. US airlines
are expected to spend US$ 538.1 billion on new
passenger aircrafts by 2025.
► In comparison, China is expected to spend US$
349.3 billion, the United Kingdom US$ 145.9
billion, Japan US$ 117.8 billion, Germany US$
108.7bn and India USS 100.9bn Investment in
airport facilities continues around the world
► The Indian government, for example, has made a
big investment in airport development, which
includes the transformation of four international
airports at Delhi, Mumbai, Chennai and Kolkata
into world class airports; and a modernisation
program for 35 domestic airports by 2012. There
are also plans to build a new passenger terminal
within the next four years at Bahrain International
Airport as part of a US$ 4.7bn expansion project.
Airline alliances
► The New Doha International Airport (NDIA)
is under construction at an estimated cost
of US$ 14bn. It will have a carrying
capacity of 24m passengers each year. It
will serve as the new hub for the national,
full service carrier, Qatar Airways, which
has ordered 220 new aircraft.
► In Sri Lanka, the government has signed
up US$ 410m of funding from China, to
build an international airport for at the
south of the island.
► Governments and airlines work closely
with the International Air Transport
Association (IATA) in developing
commercial air transport services. IATA
represents 230 airlines, in 118 countries.
Airline alliances Activity 3 A

► IATA member airlines carried a total Use the Internet to research the
of 1.6 billion passengers in 2009, of role that IATA plays in air transport
which 684 million were on development.
international flights. Choose one international airport
► IATA has many areas of influence; and find out:
• which airlines it serve;
it’s priorities include improving the
• to which destinations
safety and security of airline
passengers can travel;
passengers and crew; involvement • which products and services the
in air-related environmental airport offers.
projects, including fighting a global Choose one full service carrier and
climate-related tax on passengers, find out:
carbon and fuel. • the main airport/s used as the
► IATA encourages initiatives to airline’s base/s;
develop e-services in international • the main routes it offers;
airports and also helps in improving • any loyalty scheme it offers;
the baggage handling capacities at • whether the airline is a member
more than 70 airports. of an alliance.
Sea transport
► In the same way that it would be impossible to identify every airport and
all of the international air travel routes, there are too many sea ports and
ferry routes to list here. However, it is important that you familiarise
yourself with as many different ports, passenger ferry routes and main
cruise circuits
as possible.
► Fig. 4.8 - Major

ports of the world
Case Study 5: The Zon Ferry Terminal, Johor Bahru, Indonesia

► Spreading over 18 acres of prime land, the ZON Johor Bahru has a direct waterfront
position and is a leisure destination offering facilities such as hotel accommodation,
shopping, dining, entertainment, recreation and sea travelling all in one.
► The ZON Ferry Terminal in Stulang Laut, Johor Bahru is an official seaport and an
international entry point into Southern Malaysia with ferry services to several
international destinations, including Batam and Bintan Islands in Indonesia. Ferries
operating the routes are spacious, fully air-conditioned and comfortable with various
capacities of high speed ferries.
► The journey to Batam Island (Batam Centre) takes only
90 minutes and 150 minutes to Bintan Island (Tanjung
Pinang).
► Facilities and services available:
 2 floating pontoons with 4 berthing bays;
 Ability to handle up to 8 ferries per hour;
 Sea traffic control tower;
 International and domestic departure halls;
 Fully computerised ticketing systems;
 Fully air-conditioned ferry terminal with large seating capacity.
 Complete Customs and Immigration facilities for international departures and arrivals;
Source: http://www.zon.com.my/ferry.html
Case Study 6: The Port of Dover

► The Port of Dover is Europe’s busiest and most successful ferry port.
► Handling around £ 80 billion of trade every year and supporting around 22,000 jobs locally,
the Port of Dover is vital to both the national and
local economies.
► With millions of passengers, cars, trucks,
motorcycles and buses passing through the Port of
Dover each year, it has come to be known as the
‘Gateway to Europe’. There is a ferry departure every
30 minutes on average.
► Three ferry companies, DFDS Seaways, P&O Ferries
and Sea France currently operate from the Port of
Dover connecting Calais and Dunkirk to provide fast
and convenient sea crossings to France.
► The Port of Dover also provides a range of
refreshment and shopping facilities at the Passenger
Services Buildings in the Eastern Docks Ferry Port
including a Bureau de Change.
► The table shows the volume of traffic for the year
2010, compared with the year 2009 at the Port of
Dover.
Source: http://www.doverport.co.uk/?page=DoverFerryRoutes
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.
► The cruise industry is the fastest growing segment of the travel industry -
achieving more than 2,100 percent growth since 1970. The cruise
industry’s growth is also reflected in its expanding passenger capacity.
Nearly 40 new ships were built in the 1980s and nearly 80 new ships
came onto the market in the 1990s. By the end of 2010, over 100 new
ships had been introduced, with seven new vessels on the way for 2011.

► In 2010, the cruise market carried approximately
18.4 million passengers, a 6.9% increase over 2009.
The cruise market is expected to reach 21.3 million
passengers by the year 2013, with increasingly
innovative cruise ships being offered.
► Cruise Market Watch, a trade organisation
representing the cruise industry, estimates that 45%
of the population of the Unitec States of America has
taken a cruise at some time in their life, thus showing
the scale of popularity of this industry.
► There are several main cruise line companies which
dominate the cruise market. These include Carnival
Cruise Lines, Celebrity Cruise Lines, Costa Cruises,
Royal Caribbean, Holland America, Norwegian
Cruise Line, Star Cruises and P&O Princess.
Popular cruise circuits include the Mediterranean,
the Caribbean, the Baltic, the Far East and

► Traditionally, cruising was considered an expensive form of holiday,
enjoyed predominantly by those of retirement age. Over the years,
however, cruise lines have expanded their itineraries to include more
diverse ports of call and convenient embarkation port, including fly-
cruise options.
► They have also introduced innovative onboard amenities and facilities.
These include technological advances with cell phone access, Internet
cafes and Wi-fi zones; the provision of extensive leisure facilities such as
rock-climbing walls, bowling alleys, surfing pools; more luxurious
accommodations including multi-room villas, multiple themed restaurants
and expansive spas, health and fitness facilities that easily rival land-
based options.
► All of these innovations have opened up the market to customers of all
ages and budgets. Mass market tour operators now offer cruise
packages; families with young children are catered by the Disney Cruise
Line; ships can be small and intimate or large and friendly, with
something for everybody.
Operating economies of sea transport

► The majority of ferry and cruise companies operate within the private
sector. However, just as the government and other public sector bodies
are involved in supporting the sustainability of the air transport industry
there is also government and public sector involvement in the passenger
shipping industry.
► For example, according to the
website ‘Cruise Industry Facts’,
cruise passengers spend an
average of US$ 97.26 at each
Caribbean port of call; while
the crew spends an average of
nearly US$ 75 per visit. This is
in accordance to a new study
commissioned by the Florida-
Caribbean Cruise Association
within 29 destinations.
Operating economies of sea transport

► Passengers and crew spent US$ 2.3 billion in these 29 Caribbean ports
during the 20.8 million onshore visits in May 2008 through April 2009
cruise year. This spending generated more than 56,200 jobs with paying
US$ 723 million paid in wages across the region. The Eastern Caribbean
in general and the US Virgin Islands in particular topped the list for the
highest amount of passenger spending.
► The passenger shipping
industry plays an important
role in the economy of the
UK, both as an employer
and a service provider to
millions of people every
year. Over 40 million UK
passengers take ferry
crossings each year, with 1.5
million UK residents taking a
cruise.
A
Operating economies of sea Activity 4
transport 1. Research one international
► The European cruise industry seaport. Find out:
• what its passenger
continues to increase its share
capacity is;
of the global cruise market with • how many vessels it can
23.8m passengers visiting a cater for;
European port in 2009; 4.8m • what facilities and
passengers joined their cruise in amenities are on offer.
Europe in the same / year with 2. Research one cruise line.
the industry generating € 34.1bn Find out:
of goods and services and • how many ships it has;
providing almost 300,000 jobs. • which destinations it
► In 2009, there were 187 cruise serves;
• how many passengers it
ships operating in Europe
caters for;
ranging in size from 3,600 • the products and services it
passengers to less than 100. offers.
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

► We have already discussed the importance
of road and rail infrastructure earlier in this
unit. Let us now concentrate on the
importance of these networks as part of the
industry itself.
► It would be impossible to cover every major
road network around the world, but you
need to be aware of routes that connect
major destinations such as the ferry port in
Dover to the rest of France, for example.
► There is no expectation that you name
specific roadways but you need to be
familiar with road transport as a segment of
the travel industry. Let’s start with the
importance of motor transport in tourism.
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.
Car travel
► Travellers also often look for car rental
once they have arrived in a destination as
a means of travelling, particularly on longer
vacations.
► 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.
Car travel
► Coach travel is also important to
the travel and tourism industry.
Many tour operators offer
packages to destinations with
coach travel forming an integral
part of the vacation.
► These types of holidays are often
popular with the grey market -
seniors often prefer the leisurely
pace of a holiday by coach.
► Right is an example of a
domestic coach holiday to
London that was promoted as
‘once in a lifetime’ opportunity
due to the recently held royal
wedding.
A
Activity 3
1. Research a car hire company. Find out the main products and
services this organisation offers for its customers.
2. Find an example of a fly-drive holiday. Describe the main
characteristics of the holiday and who do you think this type of
holiday might appeal to.
3. Find an example of a coach holiday. Enlist the main features of this
product and find out who would this type of holiday appeal to and why.
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.
Rail travel
► The main tourist market for rail travel is the
younger generation - i.e. student ‘inter-
railers’ or explorers who purchase
discounted tickets allowing rail travel across
whole regions such as Europe, over a long
period of time. Investment in rail travel by
government tends to fall below investment
in airports and other forms of transport.
► There are, of course, exceptions to this –
the TGV rail network in France has
considerable government support and is
used extensively for tourism purposes.
► High speed rail networks such as the
EuroStar offer a real alternative to air
transport.
Rail travel
► There are also rail products especially for the
tourism market such as the luxury great
railway journeys of the world, which reflect the
era of great railway travel in the 1900s, such
as the Orient Express. These products have
been specifically created to appeal to those
tourists who wish to use rail as the main
travelling medium for the holiday; much in the
same way as tourists choose a cruise
experience, these tourists choose a railway
package.
► Below mentioned is a case study of the Abella
luxury rail product offered to tourists in Egypt.
Similar niche rail holidays are offered in
different parts of the world, including the Blue
Train in South Africa, the Trans-Siberian
Express and the Hudson Bay Train in Canada.
Case Study 7: Abela, Egypt

Sleeping Trains
ABELA EGYPT offers passengers a chance to
travel in luxury and comfort in its world class
sleeping trains. Its staff of well-trained
professionals provide passengers with the highest
quality of customer service on board, in order to
make trips as comfortable and as memorable as
possible.
► ABELA EGYPT offers attractive and flexible packages for every type of
trip through Egypt.
► Each sleeping train comprises:
 Double cabins equipped with basins with running water, razor points,
soap & towels
 Luggage compartments
 Dining car
 Full steward service
Case Study 7: Abela, Egypt
Return Trip: Cairo – Matrouh1 (15 Price2 (Including Dinner & Breakfast)
Jun – 15 Sep 2010
Per person in a double cabin US$ 48.00
Per person in a single cabin US$ 65.00
1. Departs Cairo Saturday, Monday and Wednesday; returns from Matrouh Sunday, Tuesday
and Thursday.
2. Child/student discounts available on this route.
The journey between Cairo to Matrouh is 524 km. Matrouh is situated on a bay on
the Mediterranean coastline and is famous for its seven kilometer long beach, which
is one of the most beautiful in the world.
Central Reservation Office:
Address: In front of the main Railway Station, Ramses Square, Cairo - Egypt.
Telephone: (202) 2574 94 74 - 2574 92 74 E-mail:
Sales: sales@sleepingtrains.com Reservation: reservation@sleepingtrains.com
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.
4 – Content Assessment
How your knowledge and understanding of the Unit 4 content is likely to be

assessed
► As you will already be aware, this unit is assessed through the externally set
?
Core Paper. Examination questions will always be partly based around pieces of
real life travel and tourism industry materials.
Question 1
► Refer to the figure right, a photograph of
tourists visiting the famous Alhambra Palace in
Granada, Spain.
Source: Cambridge 0471 PI Q4 image November 2009
a) State three services/facilities which are usually
provided for the convenience of the visitors to famous historic attractions such
as the Alhambra Palace.
(3 marks)
b) Many of the Alhambra Palace’s visitors will be on a day trip excursion as part of
their holiday. Describe how holiday excursions are usually organised.
(4 marks)
c) Tourists visiting Spain can choose to stay in different types of accommodation.
4 – Content Assessment
Question 2
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 3
d) Identify three products/services that international 5 star hotels
may provide for their leisure tourists.
(3 marks)
e) Explain three services provided by major international 5 star

Unit 04 Travel and Tourism Products and Services

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Travel and Tourism - iGCSE

Unit 04 - Travel and Tourism

2.1 – LEARNING OUTCOMES

AO1 Knowledge with understanding

AO3 Interpretation and evaluation

Relationship between assessment objectives and components

Assessment Paper 1 Paper 2 Paper 3 Approx. %

To achieve a Grade A, a candidate will be able to:

To achieve a Grade C, a candidate will be able to:

To achieve a Grade F, a candidate will be able to:

and either: or:

Paper 2 2½ hours Paper 3

3.1 - Deal with customers and colleagues – “the moment of truth”

3.3 - Follow basic procedures when handling customer enquiries,

Identify and describe tourism products

Identify and describe tourism products

Inter-relationships between travel and transport, catering and

Inter-relationships between travel and

Components included in different tourism products

The ‘all-inclusive’ product

The ‘all-inclusive’ product

International tour operators

International tour operators

Types of tour operators - Mass market tour operators

Types of tour operators -

Types of tour operators - Outbound tour operators

Types of tour operators –

Types of tour operators – Specialist tour

Operating characteristics of tour operators

Horizontal integration refers to a situation when companies

Horizontal integration occurs with mergers at the same level

Operating characteristics of tour operators

Mainstream tour operators

Independent tour operators

Nature of tour operations

Nature of tour operations

Nature of tour operations

Nature of tour operations

Tour operators and price

Tour operators and exchange rates

Tour operators and consumer protection

Tour operators and consumer protection

Retail travel agents

Role of travel agents

Products and services offered

Understanding travel agency appointments

Operating characteristics of travel agencies

Case Study 2: Online travel agencies

Case Study 2: Online travel agencies

Operating characteristics of travel agencies

Travel agents and consumer protection

Describe support facilities for travel and tourism

Case Study 3: Seoul develops tourism infrastructure

Case Study 3: Seoul develops tourism infrastructure

Case Study 3: Seoul develops tourism infrastructure

Source: Published Jan 10 2011 by Travel Daily Asia (adapted from:

Type and range of accommodation available

Type and range of accommodation available

Economies of operation and scale of investment

Economies of operation and scale of investment

Measures of efficient operation

Measures of efficient operation

Classification and grading

Classification and grading