The Nature, Scale and Development of the Travel and Tourism Industry Flashcards
1) Define Travel & Tourism
- The activities of person travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes
- The temporary, short-term movement of people to destinations outside the places where they normally live and work, and their activities during their stay at these destinations
2) What are the main types of tourism?
-> Domestic Tourism
• involves residents of a country travelling only within their country
• easy form of tourism as there are no language, currency or documentation barriers
-> Inbound Tourism
• defined as travellers arriving in a different country from their own
• also known as incoming tourism
-> Outbound Tourism
• defined as travellers leaving their own country to go abroad
• also known as outgoing tourism
3) What are the reasons why people travel?
Leisure Travel, Business Travel and VFR (Visiting Friends & Relatives)
4) What is Leisure Travel?
- It is the most common type and covers holidays, long hail trips, short breaks and day visits tor tourist attractions – it therefore includes all recreational travel
5) What is Business Travel?
- Includes all travel for business purposes such as: a meeting, conference, exhibition or trade fair
- Business Travelers will have little choice in their destination or timing of the trip
6) What are the needs of Business Travelers?
- Business will need:
• Convenience of frequent and regular transport,
• Efficient service,
• Good facilities at their destination
7) What is Visiting Friends and Relatives (VFR)?
- Includes such travel such as visiting grandparents for a day, or staying with friends for a week
8) What are the unique characteristics of the Travel&Tourism Industry?
- Seasonality, Intangibility and Perishability?
9) Define Seasonality
- It is when tourism demand regularly fluctuates over the course of a year
10) What are the factors that influence Seasonality?
- Factors which influence seasonality are:
a) Timing of school and work holidays
b) Regular special events held at destinations
11) What are the problems for the Travel and Tourism Industry due to Seasonality?
- Seasonality can affect the Travel and Tourism Industry in two ways :
1) Yearly: no. of tourists arrivals are concentrated during peak summer seasons (June-September) or peak winter seasons (December-March)
2) Weekly: Over a single week, hotels can experience differences in room bookings at weekends compared with weekdays
12) How can we reduce the impact of Seasonality?
a) Providing all-year facilities
b) Targeting those who can travel at that time of the year eg. Retiree
13) What is Intangibility?
- Travel and Tourism is a service rather than a tangible good (physical product)
- ‘Tangible’ means that you can touch it, but Travel and Tourism is intangible, hence you cannot feel a holiday
14) What is Perishability?
- It comes from the word “Perishable” which means likely to go bad quickly. Travel and Tourism services cannot be stored up for sale later or on a future occasion
What are the factors that can explain the development of the travel and tourism industry?
Changing socio-economic factors, Technological developments, Product development and innovation, Changing consumer needs and expectations
What is the meaning of the term Changing socio-economic factors?
Increase in disposable income
Impact of the national economy
Changes in car ownership
Increase in leisure time
What is Disposable Income?
It is the household income that is left over when tax, housing and the basics of life have been paid out
What does increase in disposable income lead to?
In general, increase In disposable income will lead increased expenditure on leisure activities including travel and tourism
What does the term Impact of the national economy mean?
Changes In the national economy In terms of GDP have a direct influence on income levels amongst the population. This will lead to an increase In disposable income levels
Give 3 results due to Increase in Leisure Time
a) Average working week has decreased from a 50 hour working week to a 37 hours working week
b) Flextime (flexible working hours) allow workers to take long weekends and short breaks
c) On average, people are living longer and retiring earlier. This has led to the emergence of the GREY MARKET. This refers to retired people who have time and money to spend on holidays and other activities
What are the 4 different groups of travelers that can be described in terms of their leisure behavior?
I) The money rich, time poor
II) The money and time poor
III) The money and time rich
IV) The money poor and time rich
Give 3 development in transport technology
a) Development of wide-bodied long haul planes such as the Boeing 747 Jumbo jet
b) New generation of cruise ships are able to cater for 3000 passengers and increase operating economies of scale stimulating demand
c) Fast trains, such as the French TGV and Japanese Shinkasen (bullet train) allow travel up to 300km/h through the countryside
Give 3 Developments in ICT
a) A website allows online booking and acts as a marketing and promotion tool
b) Database which help streamline payments, accounts and stock control increase in efficient and competitiveness
c) Travel agents make use of Computer Reservation Systerm (CRS) and Global Distribution System (GDS) to make reservations
Explain the term Product Development and Innovation
Travel and tourism organization are trying to sell their products from the typical mass package holidays to have It more individualized and including more items In their package