Travel and Tourism~YOU WILL LEARN• To identify factors that contribute

to the growth of tourism.

• To discuss the reasons thatpeople travel.

• To describe the different typesof tours.

WHY IT'S IMPORTANTThe travel and tourism industry isa broad and ever-changing industrywith great growth potential. Under­standing the scope of the industryhelps professionals serve theircustomers.

KEY TERMS• disposable income

• niche market

• package tour

• charter tour

• customized tour

PREDICTWhy might the travel andtourism industry continueto grow?

disposable income the moneyleft from a person's grossincome after taking out taxes

Introduction to Travel and Tourism

The travel and tourism industry includes businesses and governmentagencies that service travelers. For most countries, travel and

tourism can represent a large percentage of total revenue. For example,in the United States, nearly one-third of all households took at leastone trip away from home each month during 2003. In 2004, overallspending by domestic and international visitors in the United Statesincreased more than 4 percent to $568 billion.

The Growth of Tourism

The growth of travel and tourism, despite instability in differentparts of the world, is due to many factors that affect travel trends.

Today some of these factors include trends toward dual family incomes,baby boomers who enjoy travel, health consciousness, available leisuretime, new transportation options, increased Internet use, niche travelmarkets, and the growth of adventure travel.

Dual Family IncomeIn many two-parent families, both parents work outside of the home.Their income may proVide additional disposable income, which isthe money left from a person's gross income after taking out taxes.Disposable income may be spent on items such as cars, appliances,travel, and other recreation. Because leisure time is scarce, Americanstreasure the quality time they are able to spend on vacations with theirfamilies.

Baby BoomersBecause of its size and spending power, the baby-boomer market makesup a large percentage of the traveling public. Over the next decade, thisgroup will continue to travel. However, for older adults (55 years andabove), expectations and needs regarding travel and accommodationsmay be different.

HealthDue to advanced health-care options, many senior citizens are travel­ing more frequently. Health-care options contribute to the increase ofavailable tour programs, such as tour packages for people with disabil­ities, to a variety of destinations. Cruise lines offer specially designedpackages for these groups.

96 Unit 2 Hospitality &.Tourism Markets

Leisure TimeMany employers indirectly support the growth of the travel andtourism industry by providing their workers with more liberal vaca­tion time and flexible-time benefits. To take advantage of long holidayweekends and additional holidays thoughout the year, many travelerstake mini-vacations in addition to traditional one-week or two-weekvacations.

New Transportation OptionsNew low-cost airline carriers have increased the options for travelersconsidering long-distance trips. Low-cost airlines serve destinationspreviously available only to passengers who paid higher fares or whowere willing to make many connections. This ease of access throughnew airlines has increased the number of travelers-especially travelerswho visit family and friends.

The InternetThe convenience of booking a trip online has also contributed to theincreased number of travelers. Previously used only for gathering in­formation, the Internet is now a source of transportation, lodging, andsightseeing bargains. Many travel and tourism businesses operate full­service Web sites that provide information and booking capabilities.Travelers are taking a dO-it-yourself approach to finding and bookingtravel and tourism options on the Internet.

Niche MarketsThe emergence of niche markets has increased tourism. These marketsdraw more travelers. A niche market is a new market in tourism thatbases travel on specific interests:

• Travel for the disabled

• Adventure travel

• Geotourism

• Agritourism

TRAVEL FOR THE DISABLED One large niche market includesover 22 million people with disabilities, or 71 percent of adults withdisabilities. Each of these people traveled at least once during 2003.The majority of people with disabilities travel for pleasure. Specialtytours, especially on cruise ships, have attracted a number of travelerswho seek special services.

ADVENTURE TRAVEL As a niche market, adventure travel offersa broad spectrum of outdoor tourist activities, such as hiking, boating,mountain-climbing, exploring rainforests, or walking on glaciers. Theseactivities may involve interaction with the natural environment awayfrom the participant's home area. With adventure travel, there may be

various risks, which must be overcome by the participant.

iJJ.}

Getting Everyone ThereMany travel and tourism

professionals realize thatmaking travel possible foreveryone is good business.For example, over 194,000travel-related jobs aregenerated by travelers withdisabilities. In 2002 alone,this market segment spent$13.6 billion on travel andtourism. According to theOpen Door Organization,cruises are the most popularform of travel for peoplewith disabilities, becausecruise lines provide specialservices to meet their needs.If other segments of thetravel and tourism industryimproved accessibility,revenue from this marketcould double. 00 youthink travel and tourismbusinesses should berequired to accommodatetravelers with disabilities'Why or why nat?

niche market a new market intourism that bases travel onspecific interests, such asecotourism

Chapter 5 The Tourism Business 97

THEElectronic

~

CHANNELElectronic Etiquette

Tourism is an internationalbusiness. Professionals whowork in tourism need tounderstand and adapt to thecultural and languagedifferences of their businesspartners in order to work andnegotiate effectively. Forexample, it may be acceptableto call business associates inthe United States by their firstnames, but in Japan, suchinformality is reserved for closefriends and family members.Many businesspeople areturning to the Internet to stayup-to-date on key aspects ofinternational businessetiquette. The same informa­tion you find online can nowtravel with you in handheldPDAs (Personal DigitalAssistants) that are about thesame size as cell phones.

_Find out more aboutinternational businessetiquette by visitingWeb sites throughmarketingseries.glencoe.com.

GEOTOURISMjECOTOURISM Another niche-market trend isgeotourism, or ecotourism, which is tourism in exotic or threatenedecosystems for the purposes of observing wildlife or to help preservenature. A study done by the Travel Industry Association of America(TIA) reported that about 75 percent of all Americans feel that theirtour visits should not damage the destination's environment.Geotourism sustains or enhances the geographical location's charac­ter, which includes its environment, community, culture, heritage,and aesthetics.

AGRITOURISM Agritourism involves visiting a working farm or anyagricultural, horticultural, or agribusiness operation. Tourists go to thesesites for the purpose of enjoyment, education, or active involvement inthe activities of the farm or operation.

Reasons to Travel

People travel for a variety of reasons. Basically, there are two mainreasons for travel-business and leisure. Business travel could be

motivated by meetings, conventions, or other general business reasons.Leisure travel involves travel for pleasure. Some reasons for leisure travelare listed in Figure 5.1.

Tourism's Economic Impact

A ll types of travel and tourism offer positive economic benefits. Inthe United States, one out of every eight people is either directly

or indirectly employed in the travel and tourism industry. Travel em­ployers include transportation providers and tour providers. In addi­tion, the travel and tourism industry is one of America's largest retailindustries, ranking third, according to the TIA. It is one of the largestemployers in 29 U.S. states. Travelers in the United States spend ap­proximately $17,000 per second, $1 million per minute, $60 millionper hour, and $1.4 billion per day.

• Religious attractions ~

• Fairs and festivals ~ 1M

~ for Leisure TravelJ ::R::::::ACTIONS Many 'I-----------------------------,

people enjoy traveling for a • Visiting family and friends 1'1variety of reasons. What doyou think is the number-one • Natural and constructed attractionsreason for leisure travel? Why?

• Cultural attractions

• Sports events ~-v&a..• Shopping la

•

98 Unit 2 Hospitality &Tourism Markets ~ marketingseries.glencoe.com

Types of Tours

M any travelers pay for some type of tour. A tour incorporates a widevariety of components. These components can include accom­

modations, transportation, food service, and entertainment. Tours thatinclude these services for one price are called all-inclusive tours. Othertours combine only transportation options, such as fly/drive packages.The basic types of tours are package tours and customized tours.

Package ToursA package tour is a prearranged tour that offers value, guaranteedsightseeing, and a quality product. A tour operator or company maydevelop a package tour as a charter tour, which is a tour in which atour operator buys all the seats on an airplane, train, or bus and resellsthem to travelers. Package tours can be planned as independent tours,hosted tours, or escorted tours. The difference between these tours is theamount of structure offered to the traveler.

INDEPENDENT TOURS These tours are arranged so guests canchoose from a variety of dates, accommodations, meal plans, and sight­seeing options. Guests get volume discounts without sacrificing theirindependence.

HOSTED TOURS Hosted tours are similar to independent tours.However, they position a host at each destination to assist with a less­structured tour.

ESCORTED OR GUIDED TOURS The most structured tours areescorted or gUided tours. Guests travel together as a group with a tourdirector to assist them. This type of tour offers relaxation and efficiency.

Customized ToursA customized tour is a tour that is more expensive than a packagetour and is designed specifically for an individual tourist. This type oftour may include accommodations, transportation, and sightseeing.

-0( THE GRAND TOURA hosted tour allows

travelers to be indepen­

dent while having theconvenience of guided tours

in unfamiliar places. Could

a customized tour include aguided sightseeing tour?

package tour a prearrangedtour that offers value,guaranteed sightseeing,and a quality product

charter tour a tour in which atour operator buys all the seatson an airplane, train, or busand resells them to travelers

CONNECTWhat type of tour packagewould you prefer for visitinga foreign country? Why?

customized tour a tour thatis more expensive than apackage tour and is designedspecifically for an individualtourist

Chapter 5 The Tourism Business 99

NORTHERN EXPOSURESCynthia Billette, CTPPresidentColumbia Crossroads

What is your job?"I operate Columbia Crossroads, a tour agency."

What do you do in your job?"I plan tours throughout the Pacific Northwest for small groups,corporate events, and conventions. I plan all tours and overseethe events. I negotiate with all types of suppliers, such as hotelsand transportation providers. I also oversee general manage­ment and accounting departments."

What kind of training did you have?"I was a tour manager for over 20 years and traveled in about60 countries. Then I was hired as a consultant to create a touroperation for two different companies before starting my owncompany in 1995. I received a college degree through theNational Tour Association where I earned a Certified TourProfessional (CTP) degree. There are only about SSO certifiedtour professionals in the world. It takes five years of experienceand two years of study to qualify for certification."

What advice would you give students?"Go to college. I have a general studies degree that keeps mewell-rounded, but tourism degrees are also available. Businessand accounting courses are useful as well. People skills are mostimportant. Be an intern or get a summer job in the travelindustry as a tour operator, hotelier, or transportation-and­attractions supplier to see and learn about the business."

What is your key to success?"I work hard and try to be available when needed. Also, I'vetraveled the world as a tour manager to learn about differentcultures and people in many destinations. Establishing abusiness does not happen overnight, so haVing a stick-to-itattitude helps."

What type of tour does Cynthia Billette plan?

Career Data:Tour Planner

Education and TrainingBachelor's degree or master'sdegree in travel and tourism,general business, ormanagement

Skills and AbilitiesCommunication,interpersonal, business,accounting, and time­management skills;flexibility and love of travel

Career Outlook Faster thanaverage growth through 2012

Career Path Internship toagency employee toindependent or upper-leveltour planner

Tour Benefits

A ll types of tours offer benefits to travelers. Tourists can receivevolume discounts, guaranteed sightseeing entrances, prepayment

options, and stress-free travel. Tour packages provide retailers anddistributors ease of booking and maximum earning potential.

100 Unit 2 Hospitality & Tourism Markets

Tour Positions

The growing travel and tourism industry offers a variety of careeroptions for tour operations, including tour escort, tour guide, tour

host, and positions working for the tour operator.

Tour EscortThe most common entry-level position is tour escort. This individualis also referred to as a tour director or tour conductor. The tour escortaccompanies a group on tour. As the operator's representative, heor she is responsible for the efficient operation of the entire tour.

Tour GuidesTour guides are individuals hired at specific destinations to prOVidedetailed commentary on particular sights or destinations. Many tourguides are licensed by the particular destination.

Tour HostsTour hosts provide assistance when guests arrive at a destination. Theyanswer questions, recommend dining options, and offer transportationalternatives. Tour hosts also arrange additional sightseeing for travelers.

Other Tour PositionsTour operators also employ reservationists, sales staff, accounting per­sonnel, and product managers. The general manager of the tour com­pany oversees the entire personnel team, from managers and assistantmanagers to administrative assistants.

Growth of Tourism

T ravel and tourism is one of the largest and fastest-growing indus­tries in the world. Many factors contribute to this growth. Tours

are just one segment of the travel and tourism industry. Other vitalsegments of the tourism business include the transportation providers,as discussed in Section 5.2.

QUESTIONWhat are some tasksperformed by tour hosts?

RESPOND to what you've read by answering these questions.

1. What three factors may contribute to the growth of tourism? _

2. What are two reasons that people travel? _

3. What are three types of package tours? _

Chapter 5 The Tourism Business 101