The Structure of the Travel and Tourism Industry

Question 1

What is the Structure of the Travel and Tourism industry made of?

Answer 1

It is made up of Agencies (Travel & Tourism products), Commercial Organizations (Private Sector) and Non-Commercial Organizations (Voluntary Sector and Public Sectors).

Question 2

____________ is made up of commercial enterprises that are in business to make money and ____________.

Answer 2

Private Sector is made up of commercial enterprises that are in business to make money and generate profit.

Question 3

__________ refers to service provided by the ________ that are financed from public money/government’s money/state’s money.

Answer 3

Public Sector refers to service provided by the population that are financed from public money/government’s money/state’s money.

Question 4

What does the Public Sector include?

Answer 4

It includes:

1. Educational services
2. Police force
3. Public libraries
4. Refuse/waste collection services
5. Leisure and tourism facilities eg. Public parks, Waterfront, etc.

Question 5

What are the aims of the Public Sector organizations?

Answer 5

Their aims is to create employment through tourism and improving tourist facilities for visitors and local people.

Question 6

What is Voluntary Sector?

Answer 6

The voluntary sector refers to organisations that are not directly controlled by the state and nor do they operate solely to generate profit. They are usually funded by their members through membership subscriptions, donations, grants, fund-raising activities and through revenue generated from the sales of goods and services.

Question 7

What are the aims and objectives of voluntary organisations?

Answer 7

 To provide facilities that are not otherwise available to the community in a particular location.
 To observe a non-profit making goal by returning all surplus income to the organisation’s stated policy objectives.
 To bring the public’s attention a major issue in society such as conservation or protection of the environment.

Question 8

What is volunteer tourism?

Answer 8

The practice of individuals going on a non-paid working holiday for the purpose of volunteering themselves to worthy causes.

Question 9

What are the main components of the Travel & Tourism Industry?

Answer 9

	Travel Agents
	Tour Operators
	Tourism Development and Promotion
	Accommodation and Catering
	Attractions
	Transportation

Question 10

There are two types of Limited Companies, what are they?

Answer 10

A Public Limited Company (PLC) is usually a large, well-known business. This could be a manufacturer or a chain of retailers with branches in most city centres.
A private limited company (LTD) is often a small business such as an independent retailer in a market town.

Question 11

With reference to a case study you are familiar with, state three different types of accommodation.

Answer 11

Case study: Sydney, Australia
	Hotel
	Hotel chain
	All-inclusive resort
	Bed and breakfast
	Hostel
	Holiday centre or holiday camp
	Camping and caravanning site
	Rental apartment.

Question 12

What are the benefits of accommodation grading schemes?

Answer 12

 Quality assurance - encourages visitors people will use the accommodation as they will be assured of its quality.
 Consistency of accommodation - standards of accommodation will be consistent with amount of stars provided. It will make it easier for guests to decide.
 Shows level of service - guest knows standards and levels of service to expect, reassures visitors about the quality.
 Progressively higher standards with higher grades/stars - there is a range of accommodation grading schemes in which the amount of stars indicates the quality of the accommodation. Visitors who want to be assured of high quality service should look for accommodation with 4+ stars. This will, of course be more expensive.
 Independent assessment/unbiased - visitors know it is an unbiased opinion and will have confidence in the grading.

Question 13

What are the types of transportation tourists can use to get to a destination?

Answer 13

 Air transportation (scheduled flights, chartered flights and no-frills airline)
 Land transportation (by car, coach and rail)
 Water transportation (by ferries and cruise ships)

Question 14

______________ run to a published timetable and operate irrespective of whether there are enough passengers to make a profit.

Answer 14

Scheduled Flights run to a published timetable and operate irrespective of whether there are enough passengers to make a profit.

Question 15

___________ are mainly used by the package holiday industry and tour operators who make a contact with an airline for a __________ for the peak holiday season.

Answer 15

Charted Flights are mainly used by the package holiday industry and tour operators who make a contact with an airline for a specific route for the peak holiday season.

Question 16

______ or __________ is an airline that generally has lower fares and fewer comforts. ____________ offer lower fares by _____ their costs of operation.

Answer 16

No-frills or Budget airline is an airline that generally has lower fares and fewer comforts. Budget airlines offer lower fares by cutting their costs of operation.

Question 17

Car hire would appeal to which type of customers and why?

Answer 17

1. Independent travellers because it offers convenience and flexibility while away from home.
2. Families or groups as it saves cost and is cheaper than public transport.

Question 18

What are the advantages of using car hire?

Answer 18

 Convenient for tourists as they can go whenever, wherever and along any route.
 Cost effective for families or groups as it is cheaper than public transport.
 Door to door journeys are less hassle because there is no need for transfers.
 Luggage and belongings are easily carried as it can fit into the car or on top of the roof rack.
 It is more flexible as tourists are able to stop and sight-see at will without following a set timetable.

Question 19

Coach transport takes place in a variety of contexts and depending on individual circumstances, how may travellers use coach travel?

Answer 19

It depends on:
	Express coach services for both domestic and international travel
	Private hire services
	Tour and excursion operations
	Transfer services

Question 20

___________ services are important for both international and domestic travel. ___ services are scheduled and travellers regard trains as being safe, _________ and convenient for many journeys.

Answer 20

Rail transport services are important for both international and domestic travel. Rail services are scheduled and travellers regard trains as being safe, inexpensive and convenient for many journeys.

Question 21

What are the advantages of rail travel?

Answer 21

 No long check-in procedures
 No extra charge for excess baggage
 Reduced transfer times because trains go straight into city centres.

Question 22

____ is a type of boat or a ship, generally used for transporting passengers, cars or goods from one shore to another, mainly across smaller water bodies, generally _____ or______.

Answer 22

Ferry is a type of boat or a ship, generally used for transporting passengers, cars or goods from one shore to another, mainly across smaller water bodies, generally rivers or creeks.

Question 23

A ________ or ________ is a passenger ship used for pleasure voyages, where the _____ itself and the ship’s amenities are a part of the experience, as well as the different _________ along the way.

Answer 23

A cruise ship or cruise liner is a passenger ship used for pleasure voyages, where the voyage itself and the ship’s amenities are a part of the experience, as well as the different destinations along the way.

Question 24

A __________ is a private retailer or public service that provides travel and tourism related services to the ____ on behalf of suppliers such as airlines, car rentals, cruise lines, hotels, railways, and __________.

Answer 24

A travel agency is a private retailer or public service that provides travel and tourism related services to the public on behalf of suppliers such as airlines, car rentals, cruise lines, hotels, railways, and package tours.

Question 25

What are the two types of travel agents?

Answer 25

1. Retail Travel Agent sells holiday packages, ancillary products, and provide information and advice to customers.
2. Business Travel Agent specializes in providing services to business travellers by providing speed and flexibility in making travel arrangements with scheduled flights on major airlines, and accommodation bookings with large international hotel chains.

Question 26

A tour operator is a producer. They put together holiday packages by what?

Answer 26

They put together holiday packages by:
 Pre-booking travel with national and international carriers
 Chartering aircraft
 Organising transfers from ports and airports
 Buying space in all types of accommodation
 Devising a variety of excursions and tours
 Providing overseas representation

Question 27

What is Integration?

Answer 27

Integration is the combination of two or more companies under the same control for mutual benefit.

Question 28

What are the two types of Integration?

Answer 28

1. Horizontal Integration is two or more companies joined together with the intention of removing competition, increasing profitability through economies of sale or to increase the organisation’s purchasing power.
2. Vertical Integration is the merging of two businesses that are at different stages in supply or distribution chain.

Question 29

What are the advantages of Integration?

Answer 29

 Reduces competition
 Saves cost by reducing overheads
 Captures a larger market share/access to more customers
 Pools technical or financial resources
 Opportunity to cooperate on research and development of new products
 Have more control over supplies in terms of quality, availability, access and price

Question 30

_____________________ (TICs) provide a range of services to meet the needs of visitors. They are normally found at ______, _____________and central locations within major tourist areas.

Answer 30

Tourist Information Centres (TICs) provide a range of services to meet the needs of visitors. They are normally found at airports, railway stations and central locations within major tourist areas.

Question 31

What are the functions of TICs?

Answer 31

 Offer visiting tourists a wide range of information about the local attractions and advice on where to go
 Provide promotional leaflets, brochures, guide books and other material relating to the destination
 Help find and book suitable local accommodation
 Book local sightseeing tours
 Provide information about local guides
 Sell souvenirs and merchandise relating to the local area