cook: tourism: the business of travel, 3rd edition (c) 2006 pearson education, upper saddle river,...

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved

Chapter One:Chapter One:Introducing the Introducing the World’s Largest World’s Largest Industry, TourismIndustry, Tourism


Learning ObjectivesUnderstand and explain the basic definition of tourismIdentify the major participants and forces shaping the tourism industryExplain the historical factors that encouraged the development of tourismExplain the impact of physical, human, and regional geography on tourism activitiesExplain why tourism should be studied from marketing, management and financial perspectivesIdentify future challenges and opportunities facing the tourism industryDiscuss career prospects in the tourism industry


Services and Tourism Service and Tourism go hand in handGrowth rate of services sector faster than any otherTourism is the leader in the production of new jobsTourism has developed an important part of the economic foundation of many countries


What is Tourism?“Tourism is the temporary movement of people to destinations outside their normal places of work and residence, the activities undertaken during their stay in those destinations, and the facilities created to cater to their needs”

What is Tourism?“Activities associated with all overnight trips away from home in paid accommodations and day trips to places 50 miles or more, one way, from the traveler’s origin”Tourism is equivalent to the “visitor-service industry”



A Tourism ModelDynamic and interrelated nature of tourismThe traveling public (tourists) are the focal point (heart) of the modelTourism promoters link the traveling public with the suppliers of servicesTourism suppliers provide the services that tourists need when they travelExternal forces affect all participants in tourism; tourists, promoters and suppliers


The History of TourismEarly travelers migrated for food and huntingAnimal migrate Nomad or nomadic peopleMove by foot Confined by geographical limitations Sense of adventure and curiosityPhoenicians, Mayans, early Chinese traveled for trade and military control

The History of Tourism, continued

The Empire EraGreeksRomansEgyptiansThese empires started the necessities that encourage travelAffluent population with time and money to travelSafe and easy travelWidely accepted currenciesWidely used languagesLegal system which protects personal safety



The History of Tourism, continuedThe Middle Ages (5th to 14th centuries) and the Renaissance Era (14th to 16th centuries)

Transportation and safety declinedLess acceptance of currencies and less knowledge of common languagesSome travel by crusaders to Holy LandMarco Polo’s historic travels in the late 13th centuryIncreased interest in travel for commerce and pleasure


The History of Tourism, continuedThe Grand Tour Era (1613 to 1785 A.D.)

Trend of luxurious travel started by wealthy EnglishDeveloped as a status symbol and spread throughout EuropeGoal was to experience the “civilized world” and study the arts and sciencesThese travels often lasted for several yearsGrowth in travel for business reasons


The History of Tourism, continued

The Mobility Era (1800-1944)Growing economic prosperityIncrease in systems, modes, and speeds of travel (roads, railroads, steamships)Thomas Cook developed tour packages for mass travelInvention of automobile and airplane expanded freedom to travel


The History of Tourism, continuedThe Modern Era (1945 to present)

Paid vacations introduced in the early 1900’s made leisure travel possible for working and middle classesMillions of people were introduced to international travel during World War IIPostwar prosperity made mass ownerships of automobiles possibleAdvent of jet travel shortened travel timeTime, money, safety and interest in travel led to unparalleled growth of tourismDevelopment of mass tourism


Bringing Tourism into FocusTypical reasons for travel

Vacation and leisure tripsVisits to friends and relativesBusiness and professional trips

Host community affected by tourismCan study tourism from a variety of perspectivesWide variety of questions relating to tourism need to be answeredTechnology having unprecedented affect on tourism industry


Geography Describes the Traveler’s World

Physical geography- study of natural features of regionHuman geography- study of a region’s cultures and peoplesRegional geography-combination of physical and human geography


Studying Tourism from Business Perspectives

MarketingManagementFinance


Marketing• Marketing Concept: Organizational philosophy centered on

understanding and meeting the needs of customers• Production orientation and sales orientation inferior to customer

orientation• Marketing Mix (the 4 Ps) - Product, Price, Place, and Promotion• Market Segmentation: Process of grouping consumers into

segments characterized by common traits and needs

ManagementThe planning, organizing, directing, and controlling of present and future actions to accomplish organizational goalsThe common thread that holds an organization together and moves all its members in the same direction


Finance• How organizations manage revenues and expenses• Business is an organization operated with the

objective of making profits• Profits are revenues in excess of expenses and used

as a measure of performance• Not-for-profit organizations also need to track their

revenues and expenses• Accounting is the common language of business



Tourism’s Challenges and Opportunities

Encourage growth of tourism as it creates jobs and brings money into the community or country.

It also serves an important need for the consumer.May change social structure

Unplanned tourism can lead to excessive demands of transportation, public services and degrade the environment.


Where do you fit in?Projected to remain the world’s largest industry.Travel and tourism sales will grow at a rate of 4.1% a year through the year 2020.Have the choice of working in a really fun place!

cook: tourism: the business of travel, 3rd edition (c) 2006 pearson education, upper saddle river,...

Documents