___________________________ Principles, Practices, Philosophies TOURISM TWELFTH EDITION Charles R. Goeldner J. 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 Motor Bike Motor Bike Auto Bus Vehicles Used for Accommodation Vehicles Used for Accommodation Inland Maritime Air Charter Private Scheduled Charter and Tour Operator Scheduled Rental Privately Owned Truck Camper Motor Home Travel Trailer Tent Trailer Other Commercial Private Commercial Private Snowmobiles Foot Bicycles Horse Drawn Vehicles Aerial Tramways and Ski Lifts Charter Scheduled Commercial Charter Scheduled PASSENGER TRANSPORTATION STRUCTURE

© 2012 John Wiley and Sons, Inc. All Rights Reserved URGENT TRANSPORTATION PROBLEMS 1. Congestion 2. Safety and security 3. Environmental damage 4. 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 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 INDUSTRY Low-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