___________________________

Principles, Practices, Philosophies

TOURISM

TWELFTH EDITION

Charles R. GoeldnerJ. R. Brent Ritchie

© 2012 John Wiley and Sons, Inc.All Rights Reserved

© 2012 John Wiley and Sons, Inc.All Rights Reserved

CHAPTER

© 2012 John Wiley and Sons, Inc.All Rights Reserved

Passenger Transportation

5

© 2012 John Wiley and Sons, Inc.All Rights Reserved

LEARNING OBJECTIVES

• Comprehend the importance of transportation in tourism.

• Understand the airline industry and its role in travel.

• Examine the domination of the automobile in travel.

• Learn about the role of rail and motor coach travel.

• Study the cruise industry.

© 2012 John Wiley and Sons, Inc.All Rights Reserved

OPERATING SECTORS OF THE TOURISM INDUSTRY

© 2012 John Wiley and Sons, Inc.All Rights Reserved

Other

Transportation

Road Rail Water

MotorBike

AutoBus VehiclesUsed for Accommodation

Inland Maritime

Air

Charter

Private

ScheduledCharter

andTour

Operator

Scheduled

Rental

PrivatelyOwned

TruckCamper

MotorHome

TravelTrailer

TentTrailer

Other

Commercial

PrivateCommercial

Private PrivateSnowmobiles

Foot

Bicycles

HorseDrawn

Vehicles

AerialTramways

and Ski Lifts

CharterScheduled

Commercial

Charter

Scheduled

PASSENGER TRANSPORTATION STRUCTURE

© 2012 John Wiley and Sons, Inc.All Rights Reserved

URGENT TRANSPORTATION PROBLEMS

1. Congestion2. Safety and security3. Environmental damage4. Seasonality

© 2012 John Wiley and Sons, Inc.All Rights Reserved

AIRLINE INDUSTRY

• World airline industry carries over 2.4 billion passengers per year.

• The U.S. airline industry in 2010:• Employed 550,000 people• Records revenues of over $150 billion

• From 2001-2005 and 2008, U.S. carriers suffered large losses. A weak air transportation system affects the rental car business, hotels, and attractions.

• Low-cost carriers are growing.

© 2012 John Wiley and Sons, Inc.All Rights Reserved

AIRLINE INDUSTRYLow-Cost Carriers (LCC)Some typical characteristics of LCCs are:

• One passenger class• One type of airplane to reduce fleet maintenance

costs• Using secondary airports• Quick airport turnarounds• Point-to-point service• Unreserved seating• Employees working in multiple roles• Internet booking• No frills, just low fares

© 2012 John Wiley and Sons, Inc.All Rights Reserved

RAIL INDUSTRY

• Reached its peak volume in the U.S. in 1920• Major railroads want out of the passenger

service business (except commuter service).• Passenger service depends on Amtrak.• The situation is similar in Canada with

passenger service dependent on VIA Rail.• Passenger rail service is much more

important outside of North America.• Efficient, economical, high speed trains

provide an alternative to air travel.

© 2012 John Wiley and Sons, Inc.All Rights Reserved

MOTOR COACH INDUSTRY

• Intercity bus passengers tend to be lower income non-business travelers who are very price sensitive.

• Intercity bus service is becoming less important due to increased auto ownership and aggressive airline pricing.

• Bus travel is characterized by:• More travel to and from rural areas and small towns than

other modes of transportation.• Lower average ticket revenues than other modes.

• Intercity bus industry is a small-business industry with a great deal of flexibility.• Many bus companies focus primarily or exclusively on

charter, tour or commuter operations.

© 2012 John Wiley and Sons, Inc.All Rights Reserved

AUTOMOBILE

• Most popular mode of travel in the world because of affordability, flexibility, and convenience

• In the U.S., the United States Travel Association reports that 80% of person-trips are made by auto.

• Rental car industry growing in importance• Grosses approximately $25 billion per year

© 2012 John Wiley and Sons, Inc.All Rights Reserved

CRUISE INDUSTRY

• Fastest growing segment of the travel industry

• Since 1980 had average annual growth rate of about 7.2%

• Expanding fleets• Adding new ports of call • Seeing consolidation• Served by the Cruise Lines International

Association