DEVELOPMENT OF THE

TRAVEL AND TOURISM

INDUSTRY

TOURISM DEFINITIONS
TOURISM: is the temporary short term
movement of people to destinations outside
places where they usually live and work,
and their activities during their stay at
destinations
DURATION: less than 1 year
these
Reasons:
For leisure
For business
For other purposes

TRAVEL: to go, move, or journey from

one place to another

MAIN TYPES OF TOURISM

1. Domestic tourism: when the trip takes place
within a persons home country
International tourism: If a traveler crosses one
or more national borders.
2. Outbound tourist: is the tourism of resident
visitors outside the economic territory of the
country of reference (When the tourist goes to
other country)
Inbound tourist: is the tourism of nonresident visitors within the economic territory of
the country of reference. (When tourists come
from other country or travel inside their own
country)

MAIN REASONS WHY PEOPLE

TRAVEL

leisure:

is the term used to describe those free-time activities people

choose when they are not at work or in education. Often people travel to
enjoy their leisure time.

LEISURE TRAVEL is travel for pleasure and enjoyment.

Leisure travellers can be subdivided into categories as for example:
day trippers
overnight visitors
short break

business travel: (MICE)

People travelling for work-related purposes are business
tourists. It is an important part of the global travel and tourism industry.
It is frequently referred to as MICE (Meetings, Incentives, Conferences
and Exhibitions).
Business travelers tend to spend more than leisure travelers because
their companies assume the cost of the travel

visiting friends and relatives: (VFR)

Immigrants returns home regularly to visit their family, particularly in

holidays and festival times
Its a trend in MEDCs and LEDCs

NICHE MARKETS based on reasons

for travel
Medical tourism: medical packages which offer cheaper surgery

abroad followed by a period of recuperation

Religious tourism: religious journeys or pilgrimages to destinations such
as Jerusalem, Mecca or Santiago
Adventure tourism: such as trekking in the jungles of Borneo or the
mountains in Nepal
Cultural tourism: Heritage tours visiting historical and cultural sites,
often in cities such as Rome, Athens, Florence, Venice or Seville.
Ecotourism: trips to experience the unspoilt natural environment and
wildlife in destinations such as Amazonia or Antartica
Sports tourism
Spa tourism
Dark tourism

UNIQUE CHARACTERISTICS OF THE

TRAVEL AND TOURISM INDUSTRY
The unique characteristics of the travel and tourism industry
are:
1. Seasonality
2. perishability
3. intangibility
SEASONALITY:
1. The demand of some tourism products and services will vary throughout
the year depending on local climatic conditions of different seasons of
the year (e.g. Sun & beach tourism, sky tourism)
2. Seasonality causes problems for suppliers because an empty room does
not generate revenues.
3. To minimize the effects of seasonality, suppliers use to reduce prices in
the shoulder months, when demand is lower.

UNIQUE CHARACTERISTICS OF THE

TRAVEL AND TOURISM INDUSTRY
perishability:
1. means that T&T products and services cannot be stored (almacenados) to be sold
in a future occasion, and its lost revenue can never be recovered.
2. suppliers use to reduce prices in the shoulder months, when demand is lower
3. Computers can be used to predict the demand curves and to define tactical
marketing options if demand is expected to be lower than usual
intangibility
4. T&T is a service industry. The service product is intangible when it cannot be easily
evaluated or demonstrated in advance of its purchase
5. The problem may overcome by printing brochures, producing videos or providing
the product on a special offer in attempt to increase tangibility (tangible: que se
puede tocar, que se puede saber cmo es en realidad)

SOCIO-ECONOMIC FACTORS
Impacts of the national economy shown by the Rostow Model of
development:
1. Traditional society:
a. subsistence economy
b. low GDP and per capita income
2. Preconditions for take-of:
a. development of technology, transport and trade.
b. Increase in GDP and Per Capita Incomes
3. Take-of:
a. industries grow,
b. airports, roads and railways are built,
c. GDP and per capita incomes rise rapidly.
d. Many LEDCs nations are in this situation at present
4. Drive to maturity:
a. increase in number and types of industry,
b. transport develops,
c. GDP and per capita income levels rising rapidly
d. Tiger and BRIC economies show this factors
5. Age of mass consumption:
a. expansion of tertiary industries, and a decline in manufacturing.
b. GDP and per capita incomes high.
c. High level of disposable incomes.
d. MEDCs situation.

ROSTOW MODEL OF
DEVELOPMENT

Development of the modern

travel and tourism industry
MAIN FACTORS THAT HAVE LED TO THE GROWTH OF THE TRAVEL AND
TOURISM INDUSTRY :
1. changing socio-economic factors:
a)

changes in car ownership

b)

increase in leisure time

c)

increase in disposable income

d)

impact of the national economy

2. technological developments:
a)

developments in transport technology

b)

developments in ICT

3. product development and innovation

4. changing consumer needs and expectations
5. external factors:
a)

legislation such as the EU Directive on Package Travel

b)

the role of local authorities and government in travel and tourism

c)

fluctuations in currency

d)

climatic change and natural disasters

e)

war, civil unrest, terrorism and crime.

1. a. Changes in car
ownership
The availability and affordability in car
ownership has brought many benefits
for people
Freedom to travel to many destinations,
with passengers and luggage and
minimal need to plan ahead
Stable relationship between a countrys
GDP per capital and car ownership
The car has created many opportunities
for many small rural communities, as it
makes remote areas accessible.

1.b. Increase in leisure

time
1. New more flexible working hours regime,
important for tourism
2. The right in the EU to four weeks paid holiday from
1999
3. Retired people are younger and fitter than
younger generations and have more leisure
interests.
4. Many young people travel before embarking on
their careers
5. Groups of travelers:
a)

Money rich time poor,

b)

money and time rich,

c)

money and time poor,

d)

money poor and time rich.

1.c. Increase in
disposable income
There is a relationship between
economic development and an
increase in disposable incomes
This increases the willingness and
ability to consume various goods and
services including an increase in
tourist demand

2. Technological
developments
2.a. Developments in transport
technology:
Developments in transport technology:
1. Conveyances (medios de transporte) designed for water,
dry land, steel rails or open sky
2. The infrastructure needed to run them: tracks, navigable
waterways and canals, road networks, port and terminal
facilities
Transport technology has allowed the spread of mass
tourism to a wide array of destinations
3. Airplanes: Boeing 747 jumbo jet, A380 super jumbo
4. New generation cruise ships
5. Fast trains: The French TGV, the Spanish AVE
6. Tunnel technology

2.b. Developments in ICT

1. New technologies have led to
a) new skills,
b) new services and
c) new forms of organization.

2. Technology has created a new form of business

called e-tourism
3. A website for a travel and tourism organisation
allows online booking and acts as a marketing
tool.
4. Customers like the instant reservation/payment
confirmation and the 24/7 availability of the service.
5. More travel is sold on the internet than any other
consumer product
6. The internet brings a vast network of suppliers and a
widely dispersed customer pool together into a
centralised market place

3. Product development and

innovation
Today's T&T marketplace is saturated with
products aimed (dirigidos) at a wide variety of
consumer types.
The first mass package holidays abroad
developed from the 50s, but by 2005 many
consumers were avoiding package holidays, using
budget airlines and booking their own
accommodation.
The year 2009 saw a comeback of package
holidays as consumers looked for financial
security
Most organisations try to develop tourist products
by a process of individualising mass market
products.

4. Changing consumer needs

and expectations
Tourists have a wide range of budgets and tastes,
and a wide variety of resorts and hotels have
developed to cater for them.
The concern over climate change, rising oil
prices, the energy crisis and the economic
slowdown has led to changes in the consumer
attitudes and travel patterns.
The t and t industry is very dynamic and changes
in the types of activities people prefer has
encouraged operators to offer specialised
packages.
This has given rise to niche markets based on
particular reasons or motivations for travel.

5. External factors
5.a. Legislation:

different types of laws enacted to protect

tourists, border controls, quality of services,
protection of the environment and conservation
of historical sites and monuments.
There is the demand now for legislation for
sustainable tourism development protecting the
host community interests and their economic
benefits.
The Package Travel Regulations were
created in 1992 with the objective of protecting
consumers rights in the EU.

Regulation 2: Package means a prearranged

combination of at least two components.
Regulation 15: the Organiser (the tour operator) is

5. External factors
5.a. legislation (cont)
The Organisers Representative ( the rep)
must provide you with prompt assistance
in resort.
The consumer must make an early
complaint in the event of failure in your
holiday.
On your return you must write to the tour
operator within a reasonable period ( 28
days)

5.b. The role of local

authorities and
government

DTCM in Dubai (National Tourist Board, in Spain

Turespaa)

International promotion and publicity

activities: trade fairs, familiarisation visits,
overseas offices, advertising (media and
internet), brochure production and distribution.
Licensing of hotels, hotel apartments, tour
operators, travel agencies and travel agents.
National Tourist boards are also in charge of
training and up-skilling the workforce so
they become better qualified and competitive.

5.c. Fluctuations in
currency
If the price or value of a foreign
currency decreases then overall
travel costs for tourists will become
cheaper and the tourism demand will
increase.
This means that more people will
travel to the destination.
Fluctuactions of currency have direct
effects on outbound tourists and
suppliers of travel services.

5.d. Climatic change

Two touristic environments are affected by climatic
change:
1.The coast: negative effects of beach erosion,
rising sea levels, greater damage from storms.
2.The mountains: the demand for winter sports
will diminish due to global warming.
Natural disasters
3. cause fear and insecurity and
4. they destroy the physical environment,
monuments and the infrastructure- the Asian
tsunami 2004

5.e. War, civil unrest,

terrorism and crime
TERRORISM
9/11 in New York had profound negative efects for the T&T
industry.
WARS
The outbreak of wars tends to have a negative tourism impact on
larger areas and for a longer period of time
CIVIL UNREST (agitacin social)
Civil unrest can be in the form of violent demonstrations,
uprisings and riots.
They cause trip cancellations and shift of bookings to safer
areas.
CRIME
The presence of large number of tourists often carrying expensive
cameras or jewellery, increases the attraction for criminals.
Violent crimes such as murder, rape (violacin) and assault have
a more negative effect on tourists than do personal property

STRUCTURE OF THE
TRAVEL AND TOURISM
INDUSTRY

Commercial organisations

The majority of T&T organisations operate in the private sector:

1.
2.
3.
4.
5.
6.

most accommodation providers,

airlines,
travel agencies,
tour operators,
visitor attractions,
car hire firms.

Some are very big companies but most of them are small and
medium-sized enterprises (SMEs). (SMEs = PYMES, Pequeas y
Medianas Empresas)

The objectives of commercial organisations are to make money

and generate a profit.

Funding of commercial organisations (How have they

been created?):
. Personal savings
. Family and friends
. Bank loans
. Profit made reinvested in the company

Non commercial
organisations
1.Voluntary
organisations
funding
Voluntary organisations funding
1. are those organisations that are not directly controlled by
the State and not operate only to generate profit.
2. Include different types of :
a)
b)
c)

Clubs
Societies
charities

3. They are supported by:

a)
b)
c)
d)
e)
f)
g)

membership subscriptions
donations
entrance fees
shops selling merchandise
cafe F&B sales
sponsorship
hire of facilities

Non commercial
organisations:
2.- The public sector: National Tourist

Boards (Turspain)
Public Sector refers to services provided for the population that
are financed from public money. T&T Public Sector are not
primarily focused whit making a profit. Its main objectives are:
International promotion and publicity activities: trade
fairs, familiarisation visits, overseas offices, advertising (media
and internet), brochure production and distribution.
Licensing of hotels, hotel apartments, tour operators, travel
agencies and travel agents.
National Tourist boards are also in charge of training and upskilling the workforce so they become better qualified and
competitive.
E.g.: DTCM in Dubai (National Tourist Board, in Spain
Turespaa)

Non commercial
organisations:
2.- The public sector: National Tourist

Boards (Turspain)
Aims:
1. creating jobs through tourism and
2. improving tourist facilities for visitors and local people
Ways in which tourist boards promote tourism in a country:
3. International promotion and publicity activities:
a)
b)
c)
d)
e)
f)

trade fairs,
familiarisation visits,
overseas offices,
advertising (media and internet),
brochure production and distribution.
Licensing of hotels, hotel apartments, tour operators, travel agencies
and travel agents.

4. National Tourist boards are also in charge of training and upskilling the workforce so they become better qualified and
competitive.

How does the public sector

support the private sector?
By conducting research on tourism-related issues benefits all
parties
1. formulating policies to guide the industry
2. monitoring and evaluating tourism industry initiatives and
development
3. partnering with industry stakeholders (asociandose con los
inversores de la industria )
4. developing and implementing tourism-related projects
5. facilitating tourism investment and the general development
of the industry
6. building awareness of the tourism industry, e.g.
(construyendo la concienciacin de la industria del turismo)
a) promotion and TICs
b) providing lifeguard services
c) monitoring and guiding the operations of the Tourism Development Company
Limited (TDC)
d) monitoring and guiding the operations of the Zoological Society of Trinidad &

Agencies delivering T&T

products and services
1. Tourist attractions
2. Accommodation and catering
3. Tourism development and
promotion
4. Transportation by air, land and
water
5. Travel agencies
6. Tour operators

Agencies delivering T&T

products and services:
tourist attractions
1.

Tourist attractions: a placethat

peoplevisit for pleasure and interest,
usually while they are on holiday. Each
destination can have different tourist
attractions. E.g.:

Tourist attractions in Paris ( destination):Notre Dame

Cathedral, Musee du Louvre, Eiffel Tower, Eurodisney
Other destination attractions: Great Wall of China,
Disney World Florida, Niagara Falls in USA, etc.

Agencies delivering T&T

products and services:
accommodation and catering
Accommodation and
catering:

1.

Accommodation

All tourists need somewhere to

stay when they are away on
holiday

Most destinations have a variety

of accommodation types to suit
different visitors.

Many countries have devised

official grading schemes to clarify
standards for travelers (e.g.
grading criteria on page 30
textbook.)
Catering
(providing food and beverage)

Accommodations
canfacilities
be serviced
Sometimes catering
can be clasified as tourist attraction
or non-serviced.

Agencies delivering T&T

products and services:
tourism development
3.- Tourism development and promotion
Tourist Information Centres (TICs) offer
tourists a wide range of information about the local
area

Agencies delivering T&T

products and services:
Transportation
4.- Transportation by air, land and
water.

There have been many transport

developments over recent years

Many destinations have become much

more accessible

These transport developments have

generated an increase in the number
of visitors.

Agencies delivering T&T

products and services:
Travel agencies and tour
operators

Travel agencies act as intermediaries

providing information about destinations,
tour packages and various ancillary travel
services.
Tour operators are product builders
(constructores de producto).
They produce a new product by combining
or packaging the basic products offered by
primary suppliers.
Many tourists find a package holiday a

TOPIC 2
MANAGEMENT AND
DEVELOPMENT OF
TOURIST DESTINATIONS

The tourism industry is complex,

incorporating a network of
stakeholders and organisations, both
public and private sectors working
together.
Sustainable tourism is tourism
attempting to make a low impact on
the environment and local culture,
while helping to generate
employment for local people.

Principles of sustainable
destination management
It is about managing the visitor
impact on a local destinations
economy, social fabric and physical
environment in a way which benefits
everybody, residents, businesses,
landowners and visitors alike, both
now and in the future

Objectives of tourism
development
1. Private sector:
a. Its main aim is to generate profit
2. Public sector: government funded
organisations. Aims:
a. Economic:
i. boost employment, both direct and
indirect;
ii.multiplier effect;
iii.tax revenues;
iv.increase GDP;
v.develop infrastructure and improve
conditions for local people
b. Political: enhance the image of a country,
create a national identity that boosts
domestic morale and encourages increased

Objectives of tourism
development
(cont)
c. Socio-cultural:
i. promote understanding between the host
population and the visitors;
ii. quality of life can be improved by providing
facilities used by tourists and locals;
iii. revival of traditions and local culture, pride
of national identity.
d. Environmental: regeneration and
conservation of the built and natural
environment.

Impacts of tourism
development

Impacts of tourism
development

Economic impacts
1. Positive:
a. generation of employment,
b. contribution to the GDP,
c. multiplier effect,
d. expansion of the economy,
e. increased tax revenues,
f. informal employment,
g. more and better services, facilities and
infrastructure.
2. Negative:
a. economic leakages,
b. money that goes to international companies
and not to local businesses

Economic impacts of tourism

development (details) 2.a.
leakages
Import leakages: food and drinks
are imported to please tourists tastes
and standards
Export leakages: multi-national
companies take their profits back to
the country of origin
All inclusive resorts and cruise ship
arrivals, local businesses cannot earn
income from tourists that remain in
the hotels or ships.

Economic impacts of tourism

development (details)
1. Price rises and inflation affect the local
population in a negative way.
2. Land and buildings become too expensive for
local people.
3. When tourism is concentrated in one or two
areas, the rest of the country does not develop,
creating regional inequalities.
4. Overdependence on tourism is risky
(arriesgado) as any recession, natural disaster or
changing patterns of tourism demand can be
catastrophic

Socio-cultural impacts
1. Positive:
a. the preservation of customs and crafts,
b. the provision of community facilities and
public services,
c. aiding of international understanding,
encouraging travel,
d. mobility and social integration.
2. Negative:
a. conflicts with the host community,
b. loss of cultural identity (commodification and
staged authenticity),
c. the Demonstration effect,
d. changes of family structure,
e. Social problems as crime, begging
(mendicidad), prostitution

Socio-cultural impacts
(details)

Commodification: takes place when local culture,

events and activities turned into commodities
(mercancas, productos) and can be reduced or altered
just to conform tourist needs or expectations.
Staged authenticity: when cultural activities are
turned into show performances for tourists as if they
were real life.
The DEMONSTRATION EFFECT considers the socio
cultural impacts that tourism may have on the behaviour
of host population. Generally, members of the host
population copies the behaviour from the tourists.
Impacts
1. Erosion to traditional culture and values
2. Part of host population adopts visitor behaviour. This
cause
a. tension whithin sections of local society

Slum tourism

(slum=suburbio)

Visitors interest in slums due to films such as

Slumdog millionaire.
In Dharavi Reality Tours operates showing tourists
the slum and the slum activities.
Activities in the slums: pottery (cermica),
embroidery (bordado), recycling and bakery
(panadera)...
Profit pays for community centre and school,
charity.
Some local people do not like to be observed by
tourists and feel the huge economic difference in
a negative way.

Environmental impacts
of
tourism
1. Positive:
a. environmental protection: conservation or
restoration of biological diversity and the
sustainable use of natural resources.
b. Wildlife preservation (in Africa for example).
c. The built environment has been improved by
redevelopment schemes to attract tourism.
d. Improved facilities for local people and visitors.
2. Negative:
a. traffic congestion,
b. erosion of natural resources,
c. pollution of air and water,
d. litter,
e. increase in noise levels,
f. panoramic view damaged,
g. destruction of natural wildlife, food chains, extinction
of species.

Environmental impacts
of tourism
Carrying capacity: the maximum
number of visitors in a destination
without causing destruction of the
physical, economic and socio-cultural
environment, and an unacceptable
decrease in visitors satisfaction

The Butler Model of tourist resort

development
The purpose of the Butler Model is to look at the
way that tourist resorts, grow and develop. The
tourist industry, like all industry, is dynamic and
constantly changing. Therefore, the Butler Model
is a way of studying tourist resorts and seeing
how they change over time and in relation to the
changing demands of the tourist industry. These
changes can then be compared to the predictions
as shown on the model.

1.Exploration stage
Small number of visitors that have
made their own travel arrangements
2.

Involvement stage:

some
local residents begin to provide facilities
exclusively for the use of visitors

Development:

3.
visitor
numbers rising rapidly, with an increase
in foreign owned facilities and
upgrading of the local infrastructure

4.

Consolidation: mass tourism,

addition of facilities reaches a peak as

carrying capacity level is approached

Stagnation

5.
: tourist numbers
reach peak and facilities show signs of
age
6.

Rejuvenation/Decline:eithe
r tourist numbers grow again due to

3. PRINCIPLES OF CUSTOMER SERVICE

-The T &T industry is highly

competitive
- It is the quality of customer service
which distinguishes one organisation
from others.
- Excellent customer service
means exceeding expectations of
customers not just meeting them

Implications of poor
customer service
- Customers not getting information
they need
- Cancellations or customers not
returning, so loss of income
- High staff turnover because
employees do not feel valued
- Inefficient and unhappy workforce
-Not meeting customers needs or
expectations
- Poor public image

Moment of truth: Any service

encounter between a customer and
an employee
Operational standards: tend to
specify what is to be done or say
Competence standards: describe
the action an employee needs to
follow to perform a task competently
example on page 81 Receptionist
staff.

A customer is anyone who

expects an employee to
provide a service

-External customers: an
organisations visitors or users.
Individuals, groups, people with
children, foreign visitors with dif
language and culture, people with
wheelchair needs, sensory disabilities,
with special dietary requirements,
members of travel organisations
Internal customers; colleagues,
manaers and supervisors,

Customer needs
Have a look at table on page 84-85
age groups
Wheelchair users: ramps, lifts
Sensory disabilities: signs,
earplugs/headphones
Foreign people: international signage,
multilingual staff, brochures in
different languages

Internal customers
needs
Training
Information and communication
Feedback via appraisal
Incentives
Work based social events
Competitive salary
Safe working conditions
More challenging and stimulating
responsibilities

SATISFIED EMPLOYEES
Positive relationship between
employee satisfaction, customer
satisfaction and organisation profit.
Satisfied employees are:
motivated, empowered, have high
energy and willingness to give good
service, have the emotional
resources to show understanding,
respect and concern to customers
needs and problems.

Managers should:
Greet your staff in a friendly and
pleasant manner
Discipline staff in private, giving them
an opportunity to respond
Deal with difficult customers yourself
Support your staffs decisions
whenever possible
Listen to your staff without
interrupting
Socialise with your staff ( birthdays

Thank your staff on a regular basis

Be honest and polite with your staff

MANAGERS REWARD STAFF

Familiarisation trips to other regions
Staff swap programs with other
organisations
Thank you cards, flowers and balloons
Organising morning teas/coffees to
thank staff
Paying for attendance at
conferences/workshop
Distributing staff member of the
month awards

DELIVERY OF CUSTOMER
SERVICE
Hotel waiting staff should: bring the
food, attractively served, advise guests
on the food and drinks available, serve
it without disturbing guests, take away
unwanted items, replenish drink, keep
the restaurant looking pleasant, greet
guests, show them to their table, take
orders and collect payment.
High standards of personal presentation
and hygiene, careful not to touch food or
drink, china, cutlery or glassware that

Communication skills,
people skills and /or soft
skills
Front line staff such as waiters and
receptionists, concierges etc must
have excellent interpersonal skills.

Receptionists
Welcome all visitors in an appropriate
manner
Business-like appearance
Speak one or more foreign languages
Good administrative skills, full
familiarity with the hotels computer
systems
Communicate in a clear concise and
friendly manner
Courtesy, tact and diplomacy

Complaints
Listen carefully
Apologise for any inconvenience
Show concern and understanding,
sympathy
Never argue with customers
Agree the solution with the customer
When receptionist cannot find a
solution get the help of a supervisor.

Housekeeping room
attendant
Look at page 93!!

Performance standards
Each performance standard states 3 things:
What the employee is to do
How it is to be done
To what extent it is to be done: how much, how
well, how soon
Once employees know what to do they can
concentrate on improving their skills; people then
work more independently, and with a reward
system they work better and better. Better
customer service means more sales and higher
profits

Mistery shopper: measures the

quality of service
Observation: by an internal
colleague or a member of
management
Surveys: self-completion
questionnaires, telephone survays
and internet services
Suggestion box: cost effective
means of collecting paper-based
suggestions
Focus groups: opinions of a small