Assess the impact of key historical and current developments on the travel and tourism industry.
Mr O’ Kane Introduction Travel and Tourism is one of the fastest growing industries in the world today. In the United Kingdom Travel and Tourism is one of the key drivers of the economy, supporting around 1. 8 million jobs and it also made 61 billion pounds in revenues in 1998.
Tourism is a broad area to define, but it dose involve travailing away from home whether its for leisure or business purposes. Most tourism activities take place during people’s leisure time. Visiting relatives or day trips are classed as being leisure travel. If you go for a business purposes then it is business travel. If people stay for one or more nights that person is classed as being a tourist. If people travel and pass through a place they are called day visitors. Travel is to do with how most people get to the place were the want to go or were they are visiting.
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There is a lot of ways to travel for example air, rail, ferry, bus, taxi, car and coach. Types of Tourism We have already seen that tourists can visit destinations for a lot of different reasons for leisure, business or even both. The types of tourism are: Domestic tourism – UK residents taking day trips or holidays in the UK. Inbound tourism – overseas tourists come to visit the United Kingdom. Outbound tourism – UK residents taking holidays away from the UK. Short haul refers to holiday within Europe, dominated by flights to Spain, Portugal, Greece, Cyprus, Turkey and the Canary Island.
Long haul refers to flights of more than five hours that are outside Europe except for the Canary Island. Inclusive tours or package holidays are made to cover two main elements the transport and the accommodation. All Inclusive holiday are usually based in one hotel that includes the meals, drinks and entertainment are provided for. People have good reasons for travelling. The purpose of travelling could be sightseeing, visiting an attraction, attending a meeting or going to a sports event Many of our present day activities could be traced back to ancient times.
Years ago Roman citizens used to get away from the heat by going to the coast to cool down. Since the Second World War that ended in 1945, the travel and tourism company has grown rapidly. The development of the travel and tourism industry since the 1950s has been shaped by a complex set of interrelated factors. The four main factors, which have increased the demand of travel and tourism products and services, both in the United Kingdom and overseas. The four main factors are: • Changing socio-economic conditions • Development technology • Product development and innovation Changing consumers needs, expectations and fashions. Socio-economic conditions Socio-economic is the term given to the combination of social and economic factors. Allot of these socio-economic factors have had made the growth in the travel and tourism industry since the Second World War. These are: An increase in the time that is available for travailing and leisure activities, including tourism. An increase in disposable income for many people. Improved transport systems and greater personal mobility. Time for travel and tourism The amount of time for people in the United Kingdom has grown in the past number of years.
Consequently, the number of facilities, products and services provided to satisfy consumer’s demands for travel and tourism has also increased. There are a lot of reasons why people have gained more and more leisure time. One of these reasons is that there has been an increase in paid holiday entitlement for those who are in employment. In 1938 it was made legal for employees to get holiday entitlement. But by 1951, 66% of manual workers were allowed two weeks paid holiday every year but 28% of the workers still had only one week of holiday entitlement.
By 1970, 52 % of the United Kingdoms workers had three weeks or more holiday emtitlement5 and then by the 1990s the annual holiday entitlement had raised from four to five weeks. One of the most obvious effects of increased paid leave has been that a far higher proportion of the United Kingdoms working people now have the time and money to take holidays. Paid holiday leave inspired the growth of the first seaside holiday camps such as Butlins and Pontins. The length of the working week has been reduced substantially. In the 1960s, the average working week in the United Kingdom sed to be 50 hours. Today the typical working hours now range from 37 – 40 hours. Also today workers have a bigger choice about the pattern of their working week. Today Butlins and Pontins both a major attraction have now become less attractive to customs due to lack of development in the market, which in turn makes this park not popular to the average customers. Disposable income The amount of money that people have to spend on travel and tourism depends on the amount that is left after they have paid for their way of life/ necessities such as food etc.
The remaining money is referred to as disposable income. The state of the economy is a major factor in the taking of the holidays, particularly overseas travel. During the economic boom of the 1980s, when the economy grew rapidly, consumers/ buyers spending on both sides domestic and outbound tourism rose in the line with increasing levels of the disposable income for many people. However, due to the economic decline and the recession, when average disposable income fell, the taking of holidays is often the first item of the household expenditures to be cut off.
Life stage economics All life stage groups take holidays, from kids to adults to the elderly. For example fear of people losing their jobs was a big detector for selling holidays during the recession, but it had very little influence on the affluent early retired, who constitute a significant market for independent and many specialist holidays. Interest rates have a bigger impact on the importance of the savings to the customers. In the 1990s, the higher interest rates, which were introduced to help curb inflation, had a negative impact in borrowers, who included a big umber of families with mortgage repayments to consider before booking a holiday. Exchange rates Exchange rates have had a big impact in the determining pattern of holiday taking, for the younger and the older groups. In a mature, sophisticated travel market that any rise in the value of money would encourage outbound tourism, particularly if it involves the leading destination countries. One example of this would be residents from the UK going to New York on a Christmas shopping spree where they are getting very good value – prices are much cheaper because the pound is worth more than the pound.
Improved transport networks and personal mobility. Allot of people in the United Kingdom now have access to any form of transport, which have made travel and tourism facilities, products and services much readily accessible. Ports, airports and railways are now able to handle millions of people every year. The greatest single factor that has promoted an increasing demand for tourism, which has been the rise of car owns in the United Kingdom. In there 1951, train, coaches and buses were the main modes of transportation used by the domestic tourists. But by 1998, 80% of all trips were taken by cars.
Until the mid 1960s recreational use of the countryside in Britain was very limited. However, the numbers that visited the countryside for leisure purposes increased significantly after the 1960s and now it has been estimated that more than one quarter of the United Kingdom population would visit the countryside at lest once a year. Developing technology A vast number of advances have been made to the technological department, which have influenced the development of the travel and tourism industry, from the 1950s to this very day. Two of the most important things are: • Transport technology Communication and information technology Transport technology Improved technology has revolutionised passenger’s travel. Planes, trains and ships can now carry large numbers of passengers quickly, safely and cost effectively to be they want to go. Technology advances after the Second World War meant that air travel became available as a mass means of transport in the 1970s. As the potential for air travel became more and more popular, entrepreneurs realised that there was scope to offer holidays to overseas destinations, which combined transport, accommodation, meals and resort services in the one whole package.
This marked the coming of package holidays, as we know it. The continuing and on going development in the transport technology throughout the 1990s has continued to increase the demand for travel. It has not just been the technological advances in the aircrafts that have influenced travel and tourism industry. Most forms of passengers who travel have developed rapidly in recent years, including rail, ferry and the cruising service. A big development was the introduction of the ‘low budget’ airlines such as Ryanair, Easy jet and Fly be.
Communication and information technology Development in communication and information technology systems have made a big impact on the global distribution system or GDS has revolutionised the sales of airline tickets, hotel accommodation and other travel and tourism products since they were first made in the USA in the late 1960s. GDS systems were developed from individual’s airline reservations, which eventually amalgamated into four major global reservations systems.
Most people can now book tickets and flights from the comfort of there own home. In the 1980s teletext made it possible for people to purchase travel products direct. The Internet, in particular is further stimulating the growth of the independent holidays as growing numbers of people can now plan and book holidays without needing to visit a travel agents or anywhere else. Product development The travel and tourism company is dynamic and a lot of new products are being continually being made in order to meet peoples needs and expectations.
The development of the mass tourism market has been largely due to introducing innovative travel products and services – domestic, inbound and outbound tourism. Another development was ‘all inclusive packages’. Also packages have been set up for sport for example football and golf. Domestic tourism Domestic tourism hit its peck in the 1960s and early 70s, with a large number of holidays to seaside resorts. In the 1980s, the industry that supported domestic tourism in the United Kingdom has had to work very hard to maintain its market share, despite higher competition from overseas destinations.
Traditional seaside resorts such as Brighton have tried to improve their image by making new visitor attractions and some have also held exhibitions and conference facilities to encourage business visitors. Outbound tourism Airlines, tour operators and travel agents must constantly develop innovative merchandise in order to meet the consumer’s needs and retain their market shares in a higher competitive market. For example, tour operators now provide a wide variety of holiday products that cater for all types of tourists. The ABTA’s A to Z list of special interest holiday categories highlights the diversity. Activity |Drams |Religious/ pilgrimages |Motor racing | |Adventure |Dream machines |Romantic |Netball | |Agricultural |Educational |Round the world |Olympics (summer) | |Animal watching |Escorted tour |Safari |Olympics (winter) | |Archaeology |Expeditions |Sailing |Paragliding | |Art and craft |Exhibitions |School tour |Paralympics | |Ballooning |Festival |Scrabble |Parasailing | |Battlefield tours |Floral |Shooting |Polo | |Bird watching |Fly-drive |Single |Rugby | |Bontany/Naturalist |Ghost hunting |Single parent |Skiing | |Bridge |Groups |Sports |Snow Boarding | |Camper |Health spa |American sports |Squash | |Camping |Historical |Archery |Tennis | |Canal |Incentive |Basketball |Volleyball | |Canoeing |Island hopping Bowling |Water Sports | |Carpet waving |Language tours |Bowls |Winter Sports | |Children’s holiday club |Millennium |Boxing |Tailor-made | |Christmas |Military history |Bungee jumping |The arts | |Church |Motoring |Cricket |Theme parks | |City/short breaks |Mountaineering |Cycling |Trade fairs | |Coach |Murder/Mystery |Diving |Trekking | |Concorde experience |Music/ jazz |Fishing |Upmarket | |Cook |Music/ opera |Football |Walking | |Corporate |Music/ rock and pop |Football (watching) |Weddings abroad | |Cruise |Naturist |Golf |Wind surfing | |Crusader/ Castle tour |Nostalgia |Golf (watching) |Wine/tasting | |Cultural |Older generation |Hockey |Young people | |Dancing |Outdoor pursuits |Horse Racing | |Day trip |Photography |Horse Riding | |Disabled |Rail/Railway |Martial Arts | The list above gives an indication of how much the industry has developed since the introduction of the mass-market package holiday, in the 1960s and 1970s.
The vast numbers of overseas holidays products can be separated and subdivided almost indefinitely, but the following indications give us a basis for investigating product development. Inclusive tours or independent holidays. Mode of transport out of the United Kingdom is air or sea or by channel tunnel. Length of holiday – shot breaks have less than four nights or longer holidays. Distance of the destination from the UK – short haul or long haul. Season of departure – winter or summer. These indications can be combined into various ways to produce distinct holiday categories. In the 1970s the most popular type of holiday abroad has been the Inclusive tours which are by air, lasting more than four nights taken in the summer to short – haul destinations such as Spain and Greece.
Tour operators have successfully developed innovative new products to cater for the specific markets such as single and retired people, honeymooners and special interest holiday. The company is making more and more products to cater for all markets. Long haul holidays Long haul holidays have in the past been identified with exotic places for the affluent and those with a lot of time, but the image has changed in the years. Many people who would previously have take a holiday in Europe now take long haul holidays instead. At least 5 million long haul holidays were taken in 1998, of which half of them were package holidays. Despite the growth of long haul holidays they still account for less than 20 per cent of the whole holiday market.
All Inclusive tours The all-inclusive package has been established for aver 23 years. The major tour operators extended the concept into the short haul sector during the summer season of 1996, with the all-inclusive tours going to countries such as Portugal that has been targeted at families. The all-inclusive concept is now well established and is likely to be attractive to a lot of holiday makers who praise it as a very good value for you’re money and who appreciates spending in advance. All-inclusive packages are known to be attractive to families, offering sports, facilities and activities for a wide range of people. Needs and expectations
A person needs and expectations are continually changing and the travel and tourism industry must continue to make new and innovative products. Today we are a more prosperous society than previous years. The more quantification we have the greater our expectations become. As holidaymakers we are increasingly adventurous. The introduction of cater routes to a lot more exotic destination has made them more affordable and accessible. The way people choose their holidays is now more sophisticated. Research undertaken by mintel (1998) tells us that the basics expected today are value for Money, good quality, accommodation and bonding safeguard money paid to the tour operator. This factor has not always helped tourism and its development for example September the 11th.
The effects of the attack on the World Trade Centre have been especially felt within New York City’s large tourism industry. An important source of employment for low[pic]skilled workers, the tourism industry has sustained substantial job loss in the aftermath of September 11th. Within the context of regulation theory we can see that the tourism regime is caught in a difficult dilemma. On the one hand, it must develop the city in a way that seems welcoming to visitors that is; it must regulate the city for the benefit of visitors. On the other, it must regulate tourists to assure that they do not present a danger to residents, visitors and the industry itself.
Seaside resorts There are still a lot of people who don’t like flying or going abroad for their holidays but still enjoy the experience of paddling in the sea and feeling the sand between your toes or taking quiet stroll down the promenade. For the 18 to 30’s I suppose the glamour of the steamy nightclubs like Amnesia, Cream and so on. Where you go out with three things on your mind: Lot’s of fun, Lot’s of drink and Lot’s of sun. Because it is less likely you will bump into someone you know abroad, you tend to be less inhibited, so anything goes. Morecambe like plenty of other resorts can no longer simply rely on a beach as the main attraction.
So events throughout the season are arranged to entice people to visit and strengthen tourism. Attractions like Frontierland, Bubbles, Megazone and the tribute statue to Eric Morecambe all help to bring people to the town, again and again! Times are changing all the time, people expect more out of life than ever before and rightfully so, it’s harder now to earn a living and keep a sense of direction than ever before. Morecambe as any other resort must be prepared to adapt and change as necessary to ensure a prosperous future. Major Destinations In the six months to July 2002 there was an increase in the number of UK residents’ holiday visits abroad increased by 4. 3% to exceed 17. million visits. Spain was the most popular destination and with an 18. 8% increase in visits, increased its share of the outbound holiday market to 19. 3% This graph below shows UK residents’ holiday visits abroad by country, January- July 2001, 2002 Visits (000s) 2001 2002 % change SPAIN FRANCE CANARY ISLANDS USA ITALY EIRE GREECE NETHERLANDS PORTUGAL CYPRUS BELGIUM Current developments Current Development and Background In common with many the outbound travel market, the UK continues to grow with average annual growth rates over the last 24 years (1981-2005) in visits of 5. 8%, night of 4. 3 nights and spending (excluding fares) of 10. 8%.
There is a trend towards shorter visits and but spending per day has increased as the average real cost of international travel has fallen. Use of the Internet According to the ABTA Holiday Survey, 62% of those who used the Internet as a source of travel information said they found the Internet convenient for the time they had available. But the top reason for those who decided not to book over the Internet was that they had found better bargains elsewhere (19%). A significant proportion (14%) also cited a preference for face-to-face advice. ABTA estimates that 65% of its members have websites, with even more using the net for making bookings for their customers. Super jumbos and super ships
At FITUR the transport industry presents its extended range of products and services and new features designed to cater for tourism needs and satisfy the objectives of both specialization and improvement of management models within the sector. In this respect, FITUR 2005 provides the most comprehensive showcase for the changes that are taking place within tourism in general, and within the transport sector in particular, featuring the introduction of new technologies, the growing use of the Internet as an information source and marketing medium, the internationalisation of products and services and greater competition among the airlines, based on the strong growth of the low-cost companies. [pic] Background on the Airbus Airbus first began studies on a very large 500-seat airliner in the early 1990s.
The European manufacturer saw developing a competitor and successor to the Boeing 747 as a strategic play to end Boeing’s dominance of the very large airliner market and round out Airbus’ product line-up. The out of sequence A380 designation was chosen as the “8” represents the cross-section of the twin decks. The first flight is scheduled for March 2005, and the entry into commercial service, with Singapore Airlines, is scheduled for March 2006. Weights – A380-800 – Operating empty 277,000kg (610,700lb), max takeoff 560,000kg (1,234,600lb). A380-800F – Operating empty 252,000kg (555,600lb), max takeoff 590,000kg (1,300,700lb). [pic] Super ships
The Careful Movers This amazing ship crosses the oceans of the world, piggybacking racking and pleasure yachts to distant places, on behalf of owners and operators who lack the time or skills to do their own long-distance cruising. American Queen The biggest sternwheeler ever built plies its trade on the Mississippi River, complete with old-fashioned calliope tunes and riverboat gamblers. Direct sales A call centre is the focal point of customer service for most companies today. Using a variety of technologies, call centres connect the customer and the organization, in real-time, to provide customer service. Call centres take on different forms. A call centre can provide pre-sales, sales and sales support or a variety of other types of service. A definition of “call centre”
The definition of call centre is changing in our opinion, but the core fundamentals of a customer making a call to a centre (point, area, person or thing will remain constant because the customer views the call as an important or pivotal activity to himself or herself. Call centre, contact centre or customer interaction centre – by whatever name you give it operate on near identical principals of meeting customer needs in real-time or near real-time. Internet booking Basically, you are given a lot of Internet sites and information about the holiday or location. When a traveller finds a holiday that they are interested in they make an email enquiry it is the up to who ever to confirm the booking. The booking enquiries generated through the site are of high quality.
The traveller has read complete information about the holiday on the site, including price and (where relevant) departure dates. All this is doing is cutting out the exercises of the travel agents and also saving time. The Grey Market With growing life expectancy and a change in mindset, the older generation presents a big opportunity to the willing marketer. But few companies and advertisers are targeting this segment. Many marketing experts believe that with growing life expectancy and a change in mindset, there is a big market in the 50-plus age group of the near future. This is today’s and tomorrows older-but-younger generation. More of the older generation are now taking more holidays for example 1 or 2-day breaks.
Airport and Runway Expansions Proposals to build new airport runways in an attempt to cope with rising UK demand for air travel have been unveiled by the government. They include the possibility of three extra runways at Stansted, one more at Heathrow airport near London – moves strongly opposed by local residents and environmental groups. UK air passenger numbers are expected to more than double from 180m a year to 400m by 2020. Significant environmental issues (concerning airport noise, air quality, bay fill, wetlands, wildlife habitats, etc. ) remain, however, and the updated plan recommends that these be thoroughly examined during the environmental eview process that is currently under way at San Francisco, and that would later have to be undertaken by Oakland, should current runway expansion plans proceed to that phase. Any runway plans involving bay fill must first be approved by Bay Conservation and Development Commission (BCDC), which will look to the Regional Airport Planning Committee (RAPC) to assist it in evaluating such proposals. Terrorist activity and security issues The attacks were amazing in their diabolicalness and audacity: to hijack fuel-laden commercial airliners and fly them into buildings, killing thousands of innocent civilians. America we’ll probably never know if the attackers realized that the heat from the jet fuel would melt the steel supports and collapse the World Trade Centre.
It seems probable that they placed advantageous trades on the world’s stock markets just before the attack. No one planned for an attack like that. The events of the September 11th attacks have made all airlines and airports more aware of the security and due to this more security regulations have been put into place. Airline Security Regulations Computer security experts have a lot of expertise that can be applied to the real world. First and foremost, we have well-developed senses of what security looks like. We can tell the difference between real security and snake oil. And the new airport security rules, put in place after September 11, look and smell a whole lot like snake oil.
All the warning signs are there: new and unproven security measures, no real threat analysis, unsubstantiated security claims. The ban on cutting instruments is a perfect example. It’s a knee-jerk reaction: the terrorists used small knives and box cutters, so we must ban them. And nail clippers, nail files, cigarette lighters, scissors (even small ones), tweezers, etc. But why isn’t anyone asking the real questions: what is the threat, and how does turning an airplane into a kindergarten classroom reduce the threat? If the threat is hijacking, then the countermeasure doesn’t protect against all the myriad of ways people can subdue the pilot and crew. [pic]
The industry, which supports inbound and outbound tourism, contains two broad Categories: travel and tourism. Travel and tourism provides are closely related and combine to provide verities of facilities, products and services for people travelling away from home. The private sector dominates provision in all the components except support and information services, which are often provided by the voluntary sectors. A massive range of products and services is required to meet the travel needs of the leisure and business tourists. The relationship between producers, wholesalers and retailers from the supply structure, or chain of distribution as it is sometimes described. Principals
Principal are companies that provide products and services, which make up the holiday package. They can be seen in these three groups: • Transportation carriers. For example airlines, ferries, cruise companies and railways. • Accommodation providers. For example hotels, motels and campsites. • Ancillary services. For example transfer agents, car hire and travel insurance. Travel agencies There are two types of travel agencies; retail agencies and business agencies. The role of retail agencies is changing. The conventional high street agency is facing extremely tough competition from direct sell tour operators and customers who can access and purchase travel products from home via the Internet or teletext.
In the future, it is likely that high street travel agencies will concentrate on providing customers with tailor made holidays, individually designed to meet their needs, rather than providing package holidays for the mass market. It is estimated that the travel agencies sell 90% of the UK’s package holiday. Travel agencies range from independent outlets (with one or two offices), to national chains, known as multiples, with branches in almost every city. Business travel agencies Business travel agencies specialise in the sale of travel related products to business clients. This can involve everything from arranging flights and accommodation to rapid delivery of passports and visas.
They do not usually have a high street presence unless they are part of a retail travel agency. Tour operations Around 700 tour operators in the UK provide a wide range of products and services for domestic, outgoing and incoming tourists. Tour operators have to arrange the transport etc, which makes up the holiday package. They specialise in the fully inclusive packages, a lot of the tour operators offer more flexible options for their customers, such as flight only and fly-drive. Outbound tour operators The vast majority of tour in the UK are outbound operators, which organise package holidays abroad for UK residents. The largest operators in this market are Thomson Tour Operators, First Choice Holidays and Airtour.
These outbound tour operators offer a multitude of holiday products, which reflect on the different needs of the customers. If you look at the holiday brochures in a high street agency you will with out a doubt find examples of the following types of package holidays. • Summer and winter sun beach holidays • Lakes and mountains • Activity and adventure holidays • Fly-drive or fly-cruises • Winter sports and skiing • Young peoples holidays • Golfing holidays Inbound tour operators These tour operators provide inclusive holiday arrangements for overseas visitors to the UK. They do not come across their names as the products are sold overseas, although if you are Japanese you name Miki Travel would be the same as Thomson.
Domestic tour operators These operators organise inclusive tours within the United Kingdom For UK residents. These are usually inclusive coach or rail holidays, but there is a big growth in the independent traveller who only needs accommodation. Less than 10% of domestic holidays involve any contact with the travel agent. There are a lot of similarities between the types of domestic and outbound packages holidays available. For example beach, special interest car or caravan etc. Transport Transport is a big part of travel and tourism. In the United Kingdom they are mainly private companies, using a well-developed network of roads, railways etc.
Transport can be divided into three categories; land based, air based and water based. The most common used modes of transport are: Land – car, taxi, bus, bicycle, train Air – charter holiday flights, air taxi (helicopter or plane) Water – Ferries, hovercraft, narrow boats. The transport network has a lot of terminals, which people use at the beginning and end of their journeys. Buses, railway stations, ports and airports are therefore as important facilities within the travel and tourism industry. Million passengers |Airport |1988 |1998 | |London Heathrow |37. |60. 4 | |London Gatwick |20. 7 |29. 0 | |Manchester |9. 5 |17. 2 | |London Stanstead |1. 0 |6. 8 | |Birmingham |2. 8 |6. 6 | |Glasgow |3. |6. 5 | |Edinburgh |2. 1 |4. 5 | |Luton |2. 8 |4. 1 | |Newcastle |1. 4 |2. 9 | |Aberdeen |1. 6 |2. 7 | |Belfast International |2. 2 |2. | |East Midlands |1. 3 |2. 1 | This graph shows airport listings in the UK handled over 133 million domestic and international passengers in 1988 and in 1998. Accommodation This is the enormous diversity of accommodation. Accommodation can be either be serviced, which includes meals and housekeeping, or self-catering. Serviced accommodation Hotels and other accommodation services are very hugely in terms with size, quality and turnover. Hotels, guests houses and the other serviced accommodation can be put into different categories in a number of ways, including by the number of rooms: Small rooms (ten rooms or less) • Medium (10 to 50 rooms) • Large (50 or more) They can also be put into categories by how much they make: • Less than 100,000 • 100,000 – 499,999 • 1,000,000 and over. Self-service accommodation There is a wide range of self-service accommodation all throughout the UK. Holiday centres that combine self-service accommodation with activities and entertainment on a single site are popular. Catering service The list of food and drink can go on forever and seem endless. Catering facilities that can be found in most UK towns and cities include: 1 Restaurant 2 Cafes 3 Bistros and wine bars 4 Fast food and takeaway services Pizza houses 6 Pubs 7 Snack bars 8 Mobile snack bars Tourist attractions The English Tourism Council (formerly English Tourist Board) defines a visitor attraction as: ‘A permanently built excursion destination, a place allowing people access to entertainment, interest and education. It must be open to the public and should be capable of attracting day visitors or tourists as well as local residents’. Tourist attractions as mentioned above can be purpose built or natural. Every year millions of tourists visit attractions in cities are over the world. Purpose built attractions in my city (Belfast) would be the: 1. The City Hall 2. The Museums 3.
The Oddessy Arena 4. The Belfast Zoo 5. Queens University and many more. More famous purpose built attractions throughout the world would be: 1. The Eiffel Tower 2. Empire State Building 3. The Taj Mahal 4. Golden Gate Bridge Ancillary Staff Ancillary services refers to Cleaners, Secretary’s, Caretakers etc all of these jobs may not seem important but a cleaner are there to clean the hotel, caretaker are there to make sure that the hotel is running efficiently and a secretary are there to take booking all of this runs a part of the travel and tourism industry. And also play a major part in the smooth running of any travel and tourism facility.
Ancillary Services Ancillary service is what is on offer at a travel agents over and above package holidays for example, Car hire, currency exchange, medical advace and many more, all of this helps the customer and make it that much more of a holiday. Ownership The private sector The private sector company are direct and indirect in private ownership. The private sectors first priorities is profit for the products that the company provides for people, this benefits the owner of the company and the shareholder. The public sector The public sectors companies are greatly funded by the government. These companies are tourist board and local authorities.
The role of this sector is to promote and support the travel and tourism industry. The BTA (British tourist authority) was set up under the management of the Tourism Act 1969. The NTBS (national tourist boards) were made up in 1969 when the BTA was established. Voluntary sector Voluntary sectors are usually non – profit making or charitable and are managed and opened largely by volunteers. Examples of voluntary sectors are countryside recreation and heritage pressure groups such as ramblers Association and the National Trust. [pic] Tour Operators An entity whose primary purpose is to plan, arrange and market tours or vacation packages featuring domestic or worldwide destinations.
The cost of such tour and vacation packages generally includes air or land transportation, ground arrangements such as accommodations, meals, local guides and other related services. The tour and vacation packages are commissionable to retail travel agents, who, in turn, sell the product to the public. Travel agents See page 20 of Assignment Transport providers This is a service that hires out cars, boats, motorbikes etc to holiday makers for there own travel needs which might include, a bike to cycle up a mountain or a car to travel to a separate part of the destination in which this person has travelled to. The travel agents to get to and form the airport also provide transport and transport is also available when you have booked to go on an excision with the hotel.
Easy jet, David and Son car hire, P&O shipping, BMI baby and translink railways are all transport providers and all have a huge impact on the travel and tourism organisation. Accommodation and catering outlets Catering services The list below shows catering establishments serving food and drink, from expensive a’ la Carte restaurant and self-service cafeterias to burger bars, pizza houses and takeaways. Catering facilities, which can be found in most UK towns and cities, include: 1. Restaurants 2. Cafes 3. Bistros and wine bars 4. Fast food and takeaway outlets 5. Pizza houses 6. Pubs 7. Snack bars 8. Mobile snack bars Both the restaurant and takeaway markets have continued to grow worldwide.
The growth is partly due to the increasing popularity of ethnic restaurants and takeaways, although pub meals still accounted for the largest proportion of consumer expenditures in 1999. Visitor attractions Tourist attritions are a vital component of the UK travel and tourism industry. The English Tourism Council (ETC) estimated that visits to attractions totalled 400 million in 1998. The range of product and services provided at an attraction varies depending on the nature of the attraction, its size and customer profile. Larger attractions have retail and catering operation in addition to the main tours, rides and exhibitions. The graph below shows the attraction and how many people/ visitors visited that attraction. Alton Towers |2,650,000 | |Madame Tussaud’s |2,640,000 | |Tower of London |2,422,181 | |Natural History Museum |1,739,591 | |Lego land |1,620,000 | |Chessington World of Adventure |1,550,000 | |Science Museum |1,480,000 | |Royal Academy |1,390,000 | |Canterbury Cathedral |1,350,000 | |Windsor Castle |1,280,000 | |Edinburgh Castle |1. 219. 20 | |Flamingo Land Theme Park |1,197,000 | |Drayton Manor Park |1,174,448 | |Windermere Lake Cruises |1,140,207 | |St Paul’s Cathedral |1,076,222 | |London Zoo |1,067,917 | |Chester Zoo |965,721 | |Victoria and Albert Museum |945,677 | |Thorpe Park |926,000 | [pic] Tourism development and promotion organisations Organisations need to strive to identify both expressed and implied customer needs and expectations and use this to information to develop products that meet or exceed those needs and expectations. This is known as the customer oriented approach.
Identification of the needs of customers only indicates the type of product that they are likely to buy. It is also necessary to understand what makes them want one product rather than another product. These features are known as the unique selling points and helps to distinguish one product from another. Customer’s satisfaction means that product or service meets or exceeds the wants and needs of the customer. This is an important principle, because an organisation dose not usually aims to sell a product or service just once to one customer. Promotion The ultimate aim or goal of promotion is to encourage consumers to buy or use a product or service.
In order to achieve this aim or goal, promotional activities need to: • Create brand awareness of the product or service • Make the consumer understand the characteristics of the product or service. • Persuade them to buy the product or use the service • Encourage them to buy them again. Inter-relationships: Chain of distribution Traditionally, manufacturers have sold products to wholesalers that are then sold to retailers in smaller quantities who then supply customers. This system can be seen in the way many package holidays are brought to the market. In recent years, a number of organisations in the travel industry have vertically integrated their operations.
This means that they now cover all stages from manufacture to retail. Some tour operators such as Portland holidays sell holidays direct to customers rather than go through generally inseparable from the manufactures and are sold direct to the consumer. For example, restaurants, hotels, cinemas and museums all provide products direct to their customers. This graph shows the chain of distribution. Manufacturers and providers Hotel, tourist attractions, Transport carriers. Wholesalers Tour operators
Retailers Travel agents Customers Tourists Vertical integration: Travel businesses may be large enough to be able to take over other smaller businesses that offer other travel products and services. For instance, if an airline were taken over by a tour operator, this would be an example of vertical integration; the tour operator would be looking to benefit from lower costs in allocating customers their air travel services. This would mean that the tour operator should be able to make more profit from its overall business.
The same tour operator might also take over a travel agency in order to find a more profitable way of selling its travel products and services. The whole organisation would then be a vertically integrated travel business offering holiday packages to customers through its own retail outlets. The business should be able to control its costs more effectively and be able to communicate well with all parts of its travel operations. Problems may occur if the whole business becomes too large to operate efficiently. If the different parts of the whole business were branded differently, say by giving each part a different name; this might be regarded as being unethical. Customers should have the right to know when there is a relationship between a tour operator and a travel agent.
If not, they may believe they are getting a fair price for their holiday, when in fact the price is being kept artificially high because the operator and the agent are different parts of the same business. Horizontal integration: [pic] This is where a business offering one travel product takes over another that offers a very similar travel product or service. For example, when easy Jet took over Go! in 2002, it was a case of one budget airline taking over another no-frills airline. Although the two companies became one, they could have retained their different brand names. In fact in this case, easy Jet very quickly re-branded all of Gob’s planes with their own distinctive livery.
Dominance of the private sector and dominance of the market by a few players. The main aim/goal of any private organisation is to make profit. Most of the Travel and Tourism industry is owned by the private sector, which is evident in transport, accommodation, visitor attraction etc. Over the years there have been a number of main players such as The Hilton and Ramada groups, P/O Ferries, Airtours, Thomson, Easy jet, Rayanair etc, that have come to the front. These are just some of the organisations that are saturating the market and making huge profit worldwide. [pic] [pic] Scale of the UK travel and tourism industry Travel and tourism is a multi billion pound industry in the United Kingdom.
It has a big impact on the terms of consumer, spending and employment. Several companies produce statistics on the numbers employed in various sectors within the industry and the contribution they make to the economy. In order to answer the scale of the United Kingdoms travel and tourism industry we will look at these three points • United Kingdoms travel and tourism revenues and its contribution to the national economy. • Employment statistics • Inbound, outbound and domestic tourists numbers in the UK. The British Tourist Authority (BTA) and the English Tourism Council (ETC) estimated that the value of tourism to the UK in 1998 was 61,201 million, making this the fourth largest earner of foreign exchange.
A wide range of industries benefit from both direct and indirect income that comes from tourists. Indirect income is generated through a process known as multiplier effect. This occurs because a large proportion of the money spent by tourists is recalculated in the local economy. [pic] Contribution to the balance of payment The balance of payments is the relationship between a value that is imported to the UK and what is exported. It is easy to measure the balance of payments on the manufactured goods such as buses because we know roughly how many buses are exported overseas and how many foreign buses are imported into the country during any given period.
It is harder to access the contribution, which the travel and tourism industry makes to the balance of payments, because tourists are generally paying for a tour operator’s inclusive holiday package, while others may be paid for in US dollars or in traveller’s cheques. We also do not know exactly how much money a tourist will spend whilst on a holiday and exchange rates vary from one day to the next. The income, which we receive from visitors to the UK, is considered to be an export because it earns foreign currency, bringing money into the economy. Although nothing leaves the UK – in fact tourists come to the United Kingdom – visitors are buying a British product when they visit this country, in the same way that they might buy a car.
The money that we spend on holidays abroad is considered an import, because the goods and services are paid for in foreign currency, taking money out of the UK economy. Again, although nothing is brought into the United Kingdom, tourists are buying a foreign product when they travel overseas in much the same way that they might buy a foreign car. Employment statistics The travel and tourism company is one of Britain’s largest employers, with an estimated 1. 7 million people currently employed in it and around 50,000 new jobs being created every year. This level of employment represents seven per cent of all UK employees, more than in construction or transport. The industry is therefore regarded as a major provider of employment opportunities. Numbers employed in tourism | | |’000 | |Hotel and other accommodation |318. 7 | |Restaurants, cafes, etc. |356. 0 | |Bars, pubs, clubs |364. 1 | |Travel agents, tour operators |83. 5 | |Libraries, museums, culture |77. 0 | |Sport and other recreation |291. | |Self employment in tourism industry |94. 0 | |Total employment in tourism industry |1,685. 1 | Visitor Numbers The huge size of the travel and tourism industry can be appreciated if we consider the number of trips taken by UK residents and incoming tourists, as well as the volume of spending. The graph below shows the volume of spending of tourists in Northern Ireland (2004) |Visits |Nights Spending | |Millions |Millions |? Millions | |1. 74 |8. 56 |274 | [pic] These are two jobs that are based in travel and tourism. Resort Rep A resort representative will have to have stamina to provide a fantastic holiday for the customers through excellent customer service, a creative approach to problem solving, and a flair for sales, lots of initiative. Resort reps on a daily bases will have to carry out airport duties. These include: Collecting guests at the airport and transferring them to their accommodation, and the reverse guests are returned to the airport in preparation for their flights home. • Sell excursions and other related products such as car hire; phone cards etc will result in a bonus for the holiday representative. • Organise and take part in entertainment for the guests. This can be anything from being involved in cabaret shows to taking guests to pubs and bars. • Complete office duties. It is here that reps sorts, collates and analyses their paperwork, attends resort meetings and raises any relevant issues or problems. • A resort rep must conduct a welcome meeting for the guests to inform hem on exchange rates, excursions and other information that the holidaymaker is entitled to know about. The meeting is also a good way for the holidaymakers to learn and get to know there holiday rep and also a good way for the holiday rep to answer any queries that the holidaymakers may have. Being a holiday rep has its advantages and its disadvantages. The main advantages are working in warm climates, having the opportunity to live in a foreign country and working with guests who are there to enjoy themselves. The disadvantages are that working in a resort for eight months at a time with no opportunities to return home, the hours on duties are extremely long, and the holiday rep will be working over weekends and public holidays.
Qualifications that a resort rep will be required to have are NVQ Level 3 or equivalent. A resort rep will need to be aged 19 or over have had at least 1 years-previous experience of working with children. Also a resort rep will have be a motivated, caring, patient, enthusiastic individual who enjoys life and has plenty of stamina. Tour escort/ Tour managers A tour escort or tour manager is basically responsible for all the background work that has to be done during a tour or excursion that the holidaymaker has booked during their stay with the hotel, apartments etc. A tour escort or tour manager has to have lot of stamina and a love for working with people.
Also a tour manager/ tour escort will have to have 5 G. C. S. E’s and good communication skills. Working in Travel and Tourism The travel and tourism industry is very wide-range and consists of a wide variety of entertainment. Travel and Tourism is one of the biggest growing industries in Britain. Only a small number of companies can match the range of employment opportunities it offers people of all ages. Employment opportunities The range of jobs in the travel and tourism industry reflects the breadth and diversity of the key industry components. The most common known job employment is: • Full time or part time • Permanent or temporary (seasonal)
A distinctive feature of the UK’s domestic tourism industry is the vast number of full time, part-time and seasonal jobs that it provides. For example, employment opportunities in most UK seaside resorts are drastically reduced outside the peak summer holiday months of July and August. Jobs available in the travel service • Leisure travel agents: Travel agents consultants, telephone salespeople, foreign exchange clerk. • Business travel agents: Sales consultants, conference organisers, telephone salespeople. • Tour operators: Staff in account, administration, contracting, customer service, marketing, resort rep, reservation clerk, tour guides. Qualifications NVQ’s in travel service • ABTAC (ABTA Travel Agent’s Certificate) • Vocational A level in Travel and Tourism • Qualifications in languages, IT and customer care The Nature of Employment The travel and tourism industry is known as a people industry and there are a vast number of jobs that involve dealing with people/customers, such as waiters, resort reps, and cruise reps, transfer reps, airhostess and a lot more. For some people, promotion trying to get promoted from supervisor to management can be intense and can go very quick. For example, a lot of people apply every year for cabin crew positions but only a few can be given the positions.
Personal and technical skills The personal and technical skills qualities required for a job may vary from job to job. However, many of the personal skills required are mostly common, For example: • Good communication skills • Good customer service skills • Common sense • Good listener • Literacy and numeric skills • Outgoing personality • Scenes of humour • Enthusiasm • Flexible • Stamina and good health • Smart appearance • Polite Job description and a person specification A job description A job description is the requirements that define what is involved in a particular job. Carrying out a job analysis, which leads on to an outline job description, can do this.
For example, the job of a rep could be described under the following key headings: 1. Title of post 2. Supervisory/managerial responsibilities 3. Source of supervision and guidance 4. A simple description of the role and duties of the employee within the organisation. 5. Responsibility for assets etc. Job descriptions can be used by organisations to provide information for use in drafting a situation vacant advertisement and for briefing interviewers. Personal specification A job specification often goes beyond a simple description of the job by specifying the mental and physical attributes required of the jobholder. The personal department may therefore set at, for its own use, a ‘personal specification’ Attributes |Essential |Desirable |How identified | |Physical | | | | |Qualifications | | | | |Experiences | | | | |Training | | | | |Special knowledge | | | | |Personal circumstances | | | | |Attitudes | | | | |Practical and intellectual skills | | | | This is what a job specification might look like. Being realistic
Most employers expect prospective employees to be ambitious but must also be a bit realistic about the level at which you will enter. Circumstances When applying for a job you must take into account your personal circumstances for example how far are you willing to travel to work to find employment? Is your age an important factor? If you are a 16 or 17 years old and a school leaver, the range of you finding a full-time job is limited. Qualifications, skills and experiences that are required It is important to obtain your qualification that is required for the job. Also you will need to obtain advice on the skills and experiences required as well.
The best way to get this is to list all the qualifications, skills and experiences that you have to date and see what else you need for the job that you have applied for. Training and qualifications In the past the travel and tourism industries have had a very relaxed attitude towards qualifications. In many cases, the ability to do the job effectively and possessing the right mix of person qualities has been considered more important than an academic or a vocational qualification. But now due to more and more competition for jobs, and the need for higher standard in areas such as health and safety etc, many employees now value qualifications. Skills and experiences Skills and experiences are not the same but are often grouped together.
Your skills are the particular abilities that you have and that you do well. In most cases you will gain skills in education and training, but you also develop skills through experience. Some skills you need to succeed in the travel and tourism are specific to the industry, for example, the skill to plan an exiting package holiday. Most employers will; expect you to work hard, show commitment and work effectively in teams. Specific vocational knowledge and skill requirements obviously vary from job to job