Lecture# 3 The Era of Popular Tourism: 1950 to the XXI century

Lecture objectives

• Describe the factors giving rise to mass tourism after 1950

• Explain the origins and development of the package holiday

• Understand the significance of rapid change in political, social and economic

circumstances giving rise to the current uncertainties facing the tourism industry.

Tourism since World War II In the aftermath of World War II,

the long and deprived years led to an increased desire to travel to foreign destinations, although the ability to do so was limited for many – restricted by both political barriers and inadequate finance. In Britain, as in other lands in Europe, there were also strict limits on the availability of foreign currency – a major barrier to cross-border travel.

The extensive theatre of war had introduced the many combatants to not only new countries but also new continents, generating new friendships and an interest in diverse cultures Another outcome of the war, which was radically to change the travel business, was the advance in aircraft technology that was soon to lead to a viable commercial aviation industry for the first time. With the ending of the war in 1945, the first commercial transatlantic flight took place between New York and Bournemouth.

• More significantly for the potential market, however, aircraft had become more comfortable, safer, faster and, in spite of relatively high prices in the early 1950s, steadily cheaper by comparison with other forms of transport. The war had seen many new airports built in Europe to serve the military and these were later adapted for civilian use. This was to prove particularly valuable in opening up islands in the Mediterranean that were formerly inaccessible or time-consuming to reach by sea.

The early 1970s saw the arrival of the first supersonic passenger aircraft, the Anglo-French Concorde. Never truly a commercial success, it nevertheless proved popular with business travelers and the wealthy. Travelling from London or Paris to New York in three and a half hours, it allowed businesspeople for the first time to complete their business on the other side of the Atlantic and return home without incurring a hotel stopover. The limited range and carrying capacity (just over 100 passengers) of the aircraft, and restrictions regarding sonic booms over land, acted as severe constraints on operable routes.

The development of the package tour

Inclusive tours by coach soon regained their former appeal after the war. The Italian Riviera was popular at first – French resorts proving too expensive – and resorts such as Rimini became affordable for the North European middle market. The inclusive tour by air – or ‘package tour’ as it has become known – was soon to follow.

In the late 1950s, the larger airlines began to purchase the new jets, allowing smaller companies to buy the stock of second-hand propeller-driven aircraft coming on to the market, which were then put into service for charter operations. For the first time, holiday tourists could be transported to Mediterranean destinations faster than, and almost as cheaply as, trains and coaches. These new charter services soon proved highly profitable.

• Meanwhile, across the Atlantic, the first stirrings of an air package holiday industry emerged as regional operators began chartering aircraft from so-called ‘supplemental’ carriers on routes between major cities in the USA and Canada and the Caribbean Islands.

The movement to the sun By the 1960s, it was clear that the future

of mass market leisure travel was to be a north– south movement, from the cool and variable climates of North America and northern Europe, where the mass of relatively well-off people lived, to the sunshine and warmth of the temperate to tropical lands in the southern part of the northern hemisphere. These southern countries were also, for the most part less well developed economically and so offered low-cost opportunities for the formation of a tourism industry. The new breed of tourism entrepreneurs involved with packaging tours recognized this trend very early on.

Major hotel chains, too, were quick to seize

the opportunities for growth in these countries and those such as Sheraton and Hyatt in the USA quickly expanded into Mexico and the Caribbean, as well as into Florida and Hawaii – the states offering the most attractive climates for tourism development. Hawaii in particular proved popular as an ‘overseas’ destination, following its incorporation into the USA (from 100,000 visitors in 1955, the flow of tourists increased to 2 million in 1970 and 6.5 million by 1990).

Hawaii

• Hawaii is a state in the US that is comprised of a group of islands in the North Pacific Ocean, about 4,830 km west of mainland US; population 1,388,198; capital, Honolulu;

• First settled by Polynesians, Hawaii was discovered by Captain James Cook in 1778.

• It was annexed by the US in 1898 and is a popular vacation destination.

Mass tourism has therefore demanded, and been supplied with, products designed specifically for its needs, as revealed through the process of market research. Such products are user-orientated as opposed to resource-orientated (based on the resources available at a destination).

The Spanish coastline and the Balearic Islands were the first to benefit from the new influx of mass tourism from Britain, Germany and the Scandinavian countries, carried by the workhorse Douglas DC-3 aircraft. First, the Costa del Sol, then other coasts along the eastern seaboard, the islands of Majorca, Ibiza and, finally by the 1970s, the Canaries became, in turn, the destinations of choice for millions.

By 1960, Spain was already welcoming 6 million tourists every year and this was to grow to 30 million by 1975. Italy, Greece and other Mediterranean coastal regions all benefited from the ‘rush to the sun’. Greece in particular, although slower to develop than Spain, provided a cheaper alternative as prices in the latter country rose. Only 50,000 visited in 1951, but a decade later this had grown to 500,000 and, by 1981, Greece was vying with Spain, welcoming 5,500,000.

The all-inclusive holiday Mention has already been made of the trend for all-

inclusive holidays. As the term indicates, such a holiday includes everything – food, alcoholic drinks, water sports and other entertainment at the hotel.

The attractions of this form of tourism are obvious – it is seen by tourists as offering better value, because they can pay up front for the holiday, know what their budget will be well in advance and be unconcerned about changes in the value of foreign currency or the need to take large sums of money abroad. For more timid foreign travellers or those who are concerned about being badgered by local souvenir sellers and ‘beach salesmen’, there is the added reassurance that they do not even have to leave the hotel complex to enjoy their holidays.

Mass market tourism in its maturity

Mass market tourism to southern European resorts can be said to have entered a period of

maturity by the 1980s. Although still showing steady growth, expansion was not on the

scale found between the 1950s and 1970s. Short-haul travel was changing geographically

with tourists seeking new resorts and experiences.

By the end of the century, it was becoming clear that seaside tourism was moving in

a new direction. Visitors were no longer willing simply to lie on a beach; they sought

activities and adventure. For the young, this meant action, from sports to bungee jumping

and discos. Taking over popular resorts on Ibiza and in Greece, they encouraged the

family holiday market to move on. For the older tourist, it meant more excursions inland

to cultural sites and attractive villages.

The influence of information technology

The development of technology that can manage the reservation information held by tour operators, airlines and hotels has had a significant influence on the operations of such companies. Computer systems that can hold and process large amounts of data have become a key business tool for many tourism companies.

The affordability of computers and the penetration of the Internet, including the availability of broadband access, have ensured that more customers than ever before can now search for information about holiday destinations, compare travel companies (and user reviews) as well as reserve travel products online. The growth of online booking was partially fuelled by the budget airlines offering cheaper rates for online reservations, but was also encouraged by customers seeing this method of booking their travel as more convenient.

Furthermore, experienced travellers are prepared to book separate elements of their

travel online, either direct with providers or though an intermediary, often using price

comparison websites to explore the range of products open to them. Coupled with the

expectation that they can book their travel online, many customers also expect short

response times. They expect to have an accurate picture of the availability of their chosen product and that they will receive almost immediate confirmation of their booking, usually via e-mail.

TASK

Prepare a talk on where you think the travel industry is going in the face of changing economic circumstances. What sectors of the industry will benefit and which will face serious challenge over the next few years?