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Introduction to Hospitality, Fourth EditionJohn Walker
2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
Chapter 3Tourism
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Introduction to Hospitality, Fourth EditionJohn Walker
2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
After Reading and Studying This
Chapter, You Should Be Able to: Define tourism Outline the important international and
domestic tourism organizations Describe the economic impact of tourism Identify promoters of tourism
List reasons why people travel Describe the sociocultural impact of
tourism
Describe ecotourism
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Introduction to Hospitality, Fourth EditionJohn Walker
2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
Characteristics Year-round economic driver
Accounts for 10.2% of world GDP
7.8% of global workforce Employer of 200 million people or
7.8% of the global workforce
Spending on tourism is $72.3billion
Leading producer of taxrevenues
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Introduction to Hospitality, Fourth EditionJohn Walker
2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
Tourism Offers Greatest
Global Employment Prospects Trend factors
The opening of borders despite security
concerns An increase in disposable income and
vacations
Cheaper and more exclusive flights An increase in the number of people with
time and money to travel
More people with the urge to travel
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Introduction to Hospitality, Fourth EditionJohn Walker
2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
The World Tourism Organization
States:Tourism comprises the activities of
people traveling to and staying inplaces outside their usual
environment for not more than one
consecutive year for leisure,business, and other purposes.
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Introduction to Hospitality, Fourth EditionJohn Walker
2006 Pearson Education, Inc.
Pearson Prentice HallUpper Saddle River, NJ 07458
Tourism Can Be Categorized by
the Following Factors: Geography
Ownership Function
Industry
Motive
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Introduction to Hospitality, Fourth EditionJohn Walker
2006 Pearson Education, Inc.
Pearson Prentice HallUpper Saddle River, NJ 07458
Airlines Change occurred in 1978
Purpose is to allow a free
market of competition(fare structures)
Change in companies and
the way airlines are doingbusiness
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Introduction to Hospitality, Fourth EditionJohn Walker
2006 Pearson Education, Inc.
Pearson Prentice HallUpper Saddle River, NJ 07458
Changes Seen Since September
11, 2001 Business travelers spend less Airlines fuel costs, pensions and
security costs are on the rise Major airlines are laying off employees Delivery of new jets is delayed Closing hubs, reservation and
maintenance centers to cut costs
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Introduction to Hospitality, Fourth EditionJohn Walker
2006 Pearson Education, Inc.
Pearson Prentice HallUpper Saddle River, NJ 07458
The Hub-and-Spoke System Enables passengers to travel from one
smaller city via another smaller city via a
hub Hubs are the centers for connections
around the world Benefits
Airlines can service cities at a lower cost Airlines can maximize passenger loads from
small cities, thereby saving fuel
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Introduction to Hospitality, Fourth EditionJohn Walker
2006 Pearson Education, Inc.
Pearson Prentice HallUpper Saddle River, NJ 07458
Figure 3-1
The Hub-and-Spoke System
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Introduction to Hospitality, Fourth EditionJohn Walker
2006 Pearson Education, Inc.
Pearson Prentice HallUpper Saddle River, NJ 07458
Figure 3-3
Passengers Taking a Cruise Longer Than 2 Days
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Introduction to Hospitality, Fourth EditionJohn Walker
2006 Pearson Education, Inc.
Pearson Prentice HallUpper Saddle River, NJ 07458
Cruise Market Segments Mass market
Middlemarket
Luxury
market
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Introduction to Hospitality, Fourth EditionJohn Walker
2006 Pearson Education, Inc.
Pearson Prentice HallUpper Saddle River, NJ 07458
World and Domestic
Organizations Click on the links below for more information:
World Tourism Organization International Air Transportation Organization International Civil Aviation Organization Organization for Economic Cooperation and
Development Pacific Asia Travel Association Travel Industry of America World Travel and Tourism Council
http://www.world-tourism.org/http://www.iata.org/http://www.icao.org/http://www.oecd.org/http://www.oecd.org/http://www.pata.org/http://www.tia.org/http://www.wttc.org/http://www.wttc.org/http://www.tia.org/http://www.pata.org/http://www.oecd.org/http://www.oecd.org/http://www.icao.org/http://www.iata.org/http://www.world-tourism.org/ -
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Introduction to Hospitality, Fourth EditionJohn Walker
2006 Pearson Education, Inc.
Pearson Prentice HallUpper Saddle River, NJ 07458
Economic Impact of Tourism International travelers spend about $72.3
billion on travel-related expenses in the USannually
20.8 million people are directly employed in theindustry
Travel generates $95.6 billion yearly in taxreceipts
Approximately 40 million internationaltravelers visit the US each year
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Introduction to Hospitality, Fourth EditionJohn Walker
2006 Pearson Education, Inc.
Pearson Prentice HallUpper Saddle River, NJ 07458
Multiplier Effect New money spent by tourists is then
re-spent by hotels and restaurants inthe community for goods and services
Leakage occurs when money must be
spent outside the community for goodsunavailable within the community
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Introduction to Hospitality, Fourth EditionJohn Walker
2006 Pearson Education, Inc.
Pearson Prentice HallUpper Saddle River, NJ 07458
Figure 3-5
The Multiplier Effect
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Introduction to Hospitality, Fourth EditionJohn Walker
2006 Pearson Education, Inc.
Pearson Prentice HallUpper Saddle River, NJ 07458
Travel Agencies Serve as a middle person
Agents use computer reservation systems
Make money on commissions charged tohotels and car rental bookings
Charge clients a fee for their services
What does the future hold for travelpromoters?
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Introduction to Hospitality, Fourth EditionJohn Walker
2006 Pearson Education, Inc.
Pearson Prentice HallUpper Saddle River, NJ 07458
Corporate Managers
Work within a large corporation
Can still work with travelagencies
Can also be the meeting planner
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Introduction to Hospitality, Fourth EditionJohn Walker
2006 Pearson Education, Inc.
Pearson Prentice HallUpper Saddle River, NJ 07458
Wholesalers Consolidated
services Airlines Other
transportationcarriers
Ground servicesuppliers Tours Sold to the public
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Introduction to Hospitality, Fourth EditionJohn Walker
2006 Pearson Education, Inc.
Pearson Prentice HallUpper Saddle River, NJ 07458
National Travel Offices National Offices
US now has an NTO
Private organization
Examples of other NTOs
Canada Germany
Australia
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Introduction to Hospitality, Fourth EditionJohn Walker
2006 Pearson Education, Inc.
Pearson Prentice HallUpper Saddle River, NJ 07458
Destination Management
Companies Service organizations Meet the needs of
their clients They sell destinations Meeting planners Incentive companies
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Introduction to Hospitality, Fourth EditionJohn Walker
2006 Pearson Education, Inc.
Pearson Prentice HallUpper Saddle River, NJ 07458
Reasons People Travel To experience new and different
surroundings To experience other cultures To rest and relax To visit friends and family To view, or participate in,sporting/recreational activities
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Introduction to Hospitality, Fourth EditionJohn Walker
2006 Pearson Education, Inc.
Pearson Prentice HallUpper Saddle River, NJ 07458
Reasons for Anticipated
Increase in Tourism Longer life span Flexible working hours Early retirement Greater ease of travel Tendency to take shorter, more
frequent trips Increase in standard of living
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Introduction to Hospitality, Fourth EditionJohn Walker
2006 Pearson Education, Inc.
Pearson Prentice HallUpper Saddle River, NJ 07458
Appeal of Travel Scenic beauty Pleasant attitudes of locals Suitable accommodations
Rest and relaxation Airfare cost Historic and cultural interests Cuisine Water sports Entertainment Shopping facilities Sports
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Introduction to Hospitality, Fourth EditionJohn Walker
2006 Pearson Education, Inc.
Pearson Prentice HallUpper Saddle River, NJ 07458
Trends in Business Travel Companies are requiring employees to take
the lowest reasonable airfare
37% of employees stay over a Saturdaynight when it will reduce the airfare 77% impose a size limit on rental cars, up
from 70%
14% regularly make employees stay ineconomy hotels such as Hampton Inn orCourtyard by Marriott
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Introduction to Hospitality, Fourth EditionJohn Walker
2006 Pearson Education, Inc.
Pearson Prentice HallUpper Saddle River, NJ 07458
Social and Cultural Impactof Tourism
Tourism pollution
Cultural awareness Higher levels of employment
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Introduction to Hospitality, Fourth EditionJohn Walker
2006 Pearson Education, Inc.
Pearson Prentice HallUpper Saddle River, NJ 07458
Ecotourism
Buzzword
Seeks to minimizethe impact oftourism
Natural environment
and native cultures
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Introduction to Hospitality, Fourth EditionJohn Walker
2006 Pearson Education, Inc.
Pearson Prentice HallUpper Saddle River, NJ 07458
Trends in Tourism
Ecotourism Number of tourist arrivals will
continue to increase Governments will continue to
recognize importance of tourism Increase in number of bi-lateral
treaties
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Introduction to Hospitality, Fourth EditionJohn Walker
2006 Pearson Education, Inc.
Pearson Prentice HallUpper Saddle River, NJ 07458
More Trends
Internet booking will increase Technology will continue to advance
Marketing partnerships and corporatealliances will continue to improve Ticket-less air travel will become commonplace Managing destinations has become a challenge Increase in number of boutique airlines Increase in use of automatic airport check-ins
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Introduction to Hospitality, Fourth Edition
2006 Pearson Education, Inc.
Pearson Prentice Hall
Even More Trends
Continued expansion in the cruiseindustry
More alternate cruises Increased concern for health and
safety of travel and tourism
Increase in nature tourism