htm130 topic 2 travel and tourism industry

TRAVEL AND TOURISM INDUSTRY

HTM 130 Introduction to Hospitality and Tourism IndustryLaura Law

2015 HTM130 LAURA LAW

OUTLINEAfter reading and studying this chapter, you should be able to understand:

1. The relationship of Hospitality to Travel and Tourism2. Roles and Functions3. The effect of Tourism Industry4. Components of segments of the Travel Industry5. Marketing and promoting Hospitality and Tourism6. Ecotourism7. Trends in Tourism and Travel


With the population of 29 million, which consists of Malays (57%), Chinese (30%), Indians (8%) and indigenous people, Malaysia become an exotic blend of cultures and multi-racial population which practices various religions such as Islam, Buddhism, Taoism, Hinduism and Christianity. All this cultures have influenced each other, creating a truly Malaysian culture.

Malaysia Travel & Tourism Industry


Travel and Tourism Industry

Accommodation

Transportation

F&B Operation

Retail Stores Activities


The relationship of Hospitality to Travel and Tourism

TRAVEL AND TOURISM INDUSTRYHTM 130 Introduction to Hospitality and Tourism Industry

2015 HTM130 LAURA LAWTEXT BOOK 36

The Relationship of Hospitality to Travel & TourismThe hospitality network may be independent and competitive

businesses, yet they share an interdependency.This relationship can be seen in the roles that destinations and

hospitality facilities play in motivating people to travel.Not all travel involves tourism. ‘Tourist’ means people who take trips in excess of 24 hours or

more (who stay at least 1 night away) from home. ‘Excursionists’ is people who travel to a site and return home

the same day. (less than 24 hours)Tourism industry is concerned with attractions and events that

draw tourists and excursionists to an area.


The Relationship of Hospitality to Travel and Tourism

The hospitality industry is part of the travel and tourism industry.

One goal in common: to provide necessary or desired products and services to travellers.

The hospitality industry consists of Accommodation and Food and Beverage services.

Travel and tourism is one of the largest industries in the world.


The Relationship of Hospitality to Travel and Tourism

Travel and Tourism Industry: All businesses that cater to the needs of the traveling public. Tourism industry development can also help to preserve historical site and culture

Hospitality Industry: Refers primarily to businesses that provide accommodations and foodservices for people when they are away from their homes.

Role and Functions



Travel & Tourism Travel industry: consist of businesses that physically move people from one

place to another. (Also known as the transportation industry)◦ Taxi services, car rentals, bus services, train services, airlines

Tourism industry: consists of businesses that that organize and promote travel and vacations ◦ Travel agencies, tour operators, cruise companies, meeting & convention

planners, convention & visitors bureaus, and local and national tourism bureaus

◦ One of the main functions is to plan vacations & tours◦ Vacation may involve several different hospitality businesses◦ Tourism industry promotes and encourages travel

Package: Trip that includes several segments of the hospitality industry such as transportation, lodging, meals, and entertainment


Role of TravelTravel is the basis for much of the hospitality

industryTwo main types of travel:

◦Business & PleasurePleasure travel: travel that is done rest &

relaxation


· Business

· Pleasure

· Group

Business Travelers:

Those who travel primarily for business reasons.

Leisure Travelers:

Those who travel primarily for personal reasons; these guests use private funds for travel expenses and are often sensitive to the prices charged.

Categories of Guests


Categories of Guests

Business Travel Pleasure/leisure Travel

The business travel market is important to many lodging properties.

Business travellers were first and primary markets for hotels dating back to many years.

Regular business travel is an important source of business for many lodging properties.

Pleasure travel is also very important.

Pleasure travellers are the most difficult to understand.

Business travellers consider the cost of travel is a necessary expense but pleasure travellers are price-sensitive.


The effect of Tourism Industry



THE EFFECT OF TOURISM INDUSTRY

1) Economic gain and costs

2) Sociocultiral Impact

3) Tourism and Environmental Impact

Economic Gain

All destination require facilities and services to satisfy the needs of visitors- Direct spending

Money that go directly from the traveler into the economy- Indirect spending

Money has reached the owners of the tourist facilities, it is respending

Generate more income and further employment

Economic Costs (negative impact)

Opportunity Cost: Benefit that will be scarifies by using a resource on way rather then the other. Cost of developing tourism rather than other industry

- Leakage

Money that flow out of the local economy to purchase outside resources. The more imports, the higher leaking. The greater the leaking, the less then multiplier effect on the local economy

- Globalization of Business

Income earned by outside investors is another factor that reduces a country’s tourism revenue.

Necessary Leaking: cost of promoting the destination abroad


THE EFFECT OF TOURISM INDUSTRY1) Economic gain and costs



Changing Family Lifestyles- Positive side : Increase family income, allowing families to buy products

that were previously beyond their means- Negative side: Demonstration effect, can not afford to live like tourist,

feeling envy or resentment (been treated unfairly) toward affluent (wealthy) visitor may result

Cultural Awareness and Preservation- Increase understanding among people of different nations- Help preserve historical sites and culture- Credited with helping traditional arts and crafts to survive- Contribute to the undermining of social standards and to the

commercialization of a culture

Social Ills- Crime: organized crime: prostitution- Displacement : local residents find they can no longer live in their

community, developed as a destination- Discrimination: A sudden wave of large numbers of outside workers may

cause resentment in local workers


THE EFFECT OF TOURISM INDUSTRY1) Economic gain and costs



Planned and Managed - Contribute to preservation and

protection environment- Designating : National Park and

State ParkPoorly Planned Tourism- Pollution and Damage to the

natural environment- Increase in littering or too many

foot tramping over old passenger way


Components of segments of the Travel Industry



3 Broad Component of the Travel Industry

The Product Market Mix The Environment Forecast

Identifies which products and service the travel agency will be selling to whom the sold

Determine what staff is required Equipment and Facilities needed Air Transportation, Train/Coach,

Car Rental, Hotel, Cruise, Travel Insurance, Incentive and Foreign Exchange

Study and forecast external forces that not under the control of the organization

Small Organization : rely on information

Information on trends and change in external environment

Ensure growth and stability


Growth DirectionDirection in which they wish to grow

Market expansionThe agency or wholesaler can sell existing product to new

marketProduct ExpansionAdding new products to existing product rangeVertical IntegrationsExpanding beyond the current activitiesExp: Travel agency purchase a tour wholesaler and starts

operating its own tour2015 HTM130 LAURA LAW

3 Broad Component of the Travel Industry

Ecotourism



EcotourismTourism to places that is designed to the protection of the

environment or at least minimise damage to it, often involving travel to areas of natural interest in developing countries or participation in environmental projects

Responsible travel to natural areas that conserves the environment, sustains the well-being of the local people, and involves interpretation and education

Deals with living parts of the natural environments. Involves travel to destinations where flora, fauna, and cultural

heritage are the primary attractions. Intended to offer tourists insight into the impact of human beings

on the environment, and to foster a greater appreciation of our natural habitats.


Principles of Ecotourism Minimize physical, social, behavioural, and psychological impacts. Build environmental and cultural awareness and respect. Provide positive experiences for both visitors and hosts. Provide direct financial benefits for conservation. Generate financial benefits for both local people and private

industry. Deliver memorable interpretative experiences to visitors that help

raise sensitivity to host countries' political, environmental, and social climates.

Design, construct and operate low-impact facilities. Recognize the rights and spiritual beliefs of the Indigenous People

in your community and work in partnership with them to create empowerment.


Benefits of EcotourismIncreasing the level of environmental awareness in a personal

level, quality leisureProvide sense of fulfilment and contribution to the environment

for ecotouristsAssociated with the preservation of touristic places to be re-

visited in the futureEducation to travellers about the value of environmental

preservationRise of standard of life through more jobs to local people and

various schemes involving government and non-government organisations

Preservation of local areas, and offering long-term solutions to the issues of poverty


Marketing and Promoting Hospitality and Tourism



MARKETING AND PROMOTE HOSPOTALITY AND TOURISM

MARKETING MARKETING PROCESS

Related group activities that have purpose of satisfying demands for goods and service for consumers, business and government

Estimating the demandsProducing the product

(destination)Pricing the product to satisfy

profit criteriaPromoting and distributing the

product



DESTINATION DEVELOPMENT GOVERNMENT’S ROLE

Selection of LandmarkFacilities or access roadsAttract and handle large

numbers of visitorsCommunication systemPower FacilitiesOther Public Services

Providing Facilities at Government-owned destinations

Planning and Promoting site develop through private sector

Raise money to build convention centers or stadiums

Reduce/Waiving Tax to establishments attract business to a sites – allow company financial

Transit systems, airports, shipping docks, and highways

Utilities Control flow thru passport/immigration



ORGANIZATIONS THAT PROMOTE HOSPITALITY AND TOURISM

International Level- Would Tourism Organization (WTO),

Organization for Economic Corperation and Development (OECD), Pacific Asia Travel Association (PATA/)

- Promote and developo tourism in the interest of economic, social and cultural progress

- Provide Forum for addressing problem affect tourists

National Level- Government promote their country in the

international tourist market- Tourism Malaysia

State Level- Tourism Office- Destination Marketing Organizations

(DMOs)- In charge developing and implementing

tourism programs fro individual states Regional and Local Level- Convention and visitors bureaus

(CVBs)- May be independent organization, or a

department within municipal government



DISTRIBUTION THOUGH TRAVEL INTERMEDIARIES

IMPORTANCE OF A DESTINATION’S IMAGE

Retail Travel Agents Tour Wholesales and Operators- Designs and package the tours- 3 type: Charter Operator, Tour

Operator and Inbounds Operators

Corporate Travel Managers Incentive Houses Meeting Planners

The role of destination images- The source of destination images- Images and tourist satisfaction- Functional and Symbolic Images

Methods of Destination Marketing- Tour Packages- Frequent Flyer/Frequent Guest

Programs- Familiarization Trip- High-tech Amenities- Women Business Traveller


Trends in Tourism and Travel



Trends in Tourism and Travel

Mobile

25 % of the travel bookings in the US were done a mobile deviceEvery major travel company has a mobile strategymobile will be the key channel going aheadExp: Booking.com, agoda, hotel quickly


Chapter 3 - Tourism 33

Trends in Business Travel

Companies are requiring employees to take the lowest reasonable airfare

37% of employees stay over a Saturday night when it will reduce the airfare

77% impose a size limit on rental cars, up from 70%

14% regularly make employees stay in economy hotels such as Hampton Inn or Courtyard by Marriott

34

Trends in Tourism

Ecotourism, sustainable tourism, heritage tourism will continue to grow

Number of tourist arrivals will continue to increase

Governments will continue to recognize importance of tourism not only as economy force but also a social culture force

Increase in number of bilateral treaties, tourist can more easily obtain visa to visit other countries

htm130 topic 2 travel and tourism industry

Education

travel tourism travel

tourism industry htm

tourism industry laura

hours tourism industry

airlines tourism industry

tourism industry development

effect of tourism industry

national tourism