Factors affecting the travel and tourism industry (Learning Aim D)

Question 1

What is ‘board’ accommodation?

Answer 1

The meals provided with a tourist’s chosen accommodation.

Question 2

What is differentiation

Answer 2

Elements of a product or service that makes it different to others on the market.

Question 3

What is public relations (PR)

Answer 3

The maintenance of a positive public opinion.

Question 4

What is disposable income?

Answer 4

The amount of money people have left over after tax and bills.

Question 5

What is an exchange rate?

Answer 5

The amount of money that one currency is worth in another currency.

Question 6

What is fuel hedging?

Answer 6

An agreement to buy fuel at a pre-determined price for a specified amount of time.

Question 7

What are demographics?

Answer 7

Data relating to a population. E.g., age, gender and wealth.

Question 8

What is the grey market?

Answer 8

Older people with a substantial income.

Question 9

Different generations

Answer 9

Baby boomers: People born between 1946-1964.
Millennial (Generation Y): People born between 1980-1997.

Question 10

What is a multi-generational family?

Answer 10

A family that consist of many generations.

Question 11

What are hipster holidays?

Answer 11

Holidays to unusual destination, often popularised through social media.

Question 12

What are internal factors?

Answer 12

Things that the organization can control. For example, marketing strategies, budgets, recruitment issues and organizational policies.

Question 13

What are external factors?

Answer 13

Things that are outside of the organization’s control that they must respond to.

Question 14

Government legislation and legal factors: Development of Transport act 1969

Answer 14

Established British Tourist Authority which eventually formed VisitBritain. Aims to coordinate all tourism organisations and provide a ‘voice’. Scotland and Wales have to fund and develop their own tourism.

Question 15

Government legislation and legal factors: Transport act 1980

Answer 15

Deregulated (took away lots of rules) express coach rules, leading to more competition and choice for travellers.

Question 16

Government legislation and legal factors: Transport act 1985

Answer 16

Lead to complete deregulation of bus routes, meaning any company could operate any route, increasing competition.

Question 17

Government legislation and legal factors: package travel and linked travel arrangements regulations 2018

Answer 17

Set out tour operators’ responsibilities to customers and what action customers can take if the regulations are breached. It provides more legal and financial protection for customers booking packaged (or travel arrangements that are linked) The package organiser is responsible for organising the package and sorting problems out if they occur. For example, bad weather, delays or cancellations.

Question 18

What is legal protection?

Answer 18

The company has to ensure that the customer gets what they paid for.

Question 19

Financial protection

Answer 19

Customers will get their money back if their holiday company goes bankrupt before they travel. Customers will be brought home if their holiday company collapses whilst they’re on holiday.

Question 20

Tourism action plan

Answer 20

Sets out government’s tourism strategy so that:
* Different departments all work together for the same goal.
* Events are coordinated.
* VisitBritain and VisitEngland have clearer responsibilities.
* A £40m fund is available for a ‘Discover England’ fund to encourage tourism.

Question 21

Health and safety at work act

Answer 21

All employers have to comply with this act. Key point state:
* Risk assessments need performing.
* Staff need training and safety equipment providing.
* Fire escapes, extinguishers and evacuation plans are needed.
* Rest rooms and facilities need to be provided.
* Tour operators have a duty of care to their customers to have safety management policies in place – applies abroad aswell as in the UK (but, foreign standards may apply abroad, not UK ones).

Question 22

Health Act 2006

Answer 22

Smoking is banned in encloses spaces and places of work. Only one no-smoking sign needs to be displayed to customers and staff.

Question 23

Town and country Planning (Control of Advertisement) Regulations 2007 and Consumer Protection Regulations 2008

Answer 23

Illuminated signs or signage outside may need planning permission. Any sign must not be misleading.

Question 24

Health and Safety at Work Act 1974/Management of Health and Safety at Work Regulations 1999

Answer 24

Applies to anyone who sells adventure activities are offered. For example, risk assessments and supervision needed.

Question 25

What is sustainability?

Answer 25

Relates to the use of natural resources and ensuring they aren’t all used up. Also relates to impacts of mass tourism on destinations. For example, too many tourists, too much pollution and environmental damage – e.g., Venice, Greek Islands (Santorini). Businesses under pressure from governments and travellers to be more sustainable and responsible.

Question 26

Sustainable tourism principles

Answer 26

1.Minimise negative economic, environmental and cultural impacts on tourist destination (E.g., not completely ruin what attracts tourists there in the first place, and preserve local culture).
2. Create economic benefits for local people and improve their quality of life – e.g., create good jobs that don’t exploit people or see jobs go elsewhere.
3. Promote conservation of natural landscape and local cultural heritage.
4. Promote respect between tourists and local people.