Traditional Trade in Services Traditional Trade in Services Chapter Eight Chapter Eight

Learning objective: Understand and grasp the concept, characteristics and developing trend of trade in transport service, in travel service, in banking service, in insurance service

8.1. Trade in Transport Service （运输服务贸易）

8.1.1 Overview of principles for trade in transport service （运输服 务贸易原理概论） (1)Concept and characteristics of trade in transport service （运输服务 贸易的概念及特点）

① Trade in transport service is derived from trade in merchandise service and based on merchandise trade; it provides service for merchandise trade.

② The provider of transport service produces no tangible products and has no products for storage; what he can store is just the transport capacity.

③ During trade in transport service, the intermediary or agent performs frequent activities and plays an important role in trade development.

(2) Roles of trade in transport service （运输服务贸易的作用） First, it is advantageous to the improvement of balance of payments.

Then, trade in transport service acts as the bridge and link of international trade in merchandise.

8.1.2 Trade in marine transport service （海运服务贸易）

(1) Major business forms of trade in marine transport services （海运服务 贸易的主要业务形式） Tramp shipping Liner shipping

(2) Chartering business （租船业务） ① voyage number lease ② contracted affreightment ③ time-chartered vessel ④ bareboat charter

(3) Port service ( 港口服务 ) Port gulf Business ( 港湾业务 ) Port shore business （港岸业务）

(4)Characteristics of international trade market in shipping service Tramp shipping service market Liner shipping service market

8.1.3 Trade in air transport service ( 航空运输服务贸易 )

Safe, reliable Low rate of loss & damage High cost Restrictions on volume &weight High-priced Seasonal goods time-sensitive customer Small size

Main business patterns (1) Air transport service （空运服务） (2) Airliner transport （班机运输） (3)Air charter transport （包机运输） (4) Consolidated cargo service （集中托 运服务）

(5) Air express （航空快递） (6)Delivery service （递送业务） (7) Cash on delivery ( 货到付款 )

8.1.4 Other transport service （其他运 输服务） (1)Road transport service （公路运输业务 ） (2) Railway transport service （铁路运输 业务） (3) Pipeline transport service （管道运输 业务）

8.1.5 International trade in transport service （国际运输服务贸易）

(1)International trade in transport service and its characteristics ① Internationality ② Risks ③ Complexity

(2)Current situation of development of international trade market in transport service （国际运输服务贸易发展的当前形势）

(3)Influencing factors of international trade market in transport service （ 影响国际运输服务贸易市场的因素） (4) Developing trends of international trade market in transport service （ 国际运输服务贸易市场的发展趋势）

8.2 Trade in Tourism Service 旅游服务贸易

Have you ever traveled before? Where did you go? By yourself or go with the tourist agent? Are you satisfied with the services you received during your travelling? Why?

1. Tourism service VS. trade in tourism service Tourism service product refers to the sum of services including entertainment, rest, catering and action provided for a traveler during the time from his leaving home to his trip home.Tourism service product

specialties of tourism product intangibility complexity timeliness

1. Tourism service VS. trade in tourism service trade in tourism service: refers to the activity in which a travel agent in one country (region) provides tourist services for a consumer in another country (region) and charges remuneration for the services, including both outbound tours of domestic travelers and inbound tours of foreign travelers (international income tourism).

Travel agent A consumer tourism services pay fees outbound tours of domestic travelers inbound tours of foreign travelers Definition of trade in tourism service One region Another region

Characteristics of trade in tourism services local commodity export local service export complexity and integrity

2 Role of trade in tourism service in national economy The number of inbound tourists reached to 4.8 million, increasing by 49.5% compared with last year. The direct tourism revenue EXPO brought was more than 80 billion yuan in In Jiangsu-Zhejiang-Anhui, the tourism revenue grew by more than 20%.

The relative industries such as high way, railway, aviation, accommodation and catering increased by 20%.

Group discussion Can you discuss in group what kind of roles does trade in tourism service play in national economy?

2 Role of trade in tourism service in national economy Increase foreign exchange income Create employment opportunities Optimize industrial structure

8.2.2 Trade in tourism service under the context of knowledge economy One of the characteristics of Knowledge Economy Age is the further improvement of production automation and labor productivity. It is no doubt that knowledge economy makes a difference in development of the tourism service industry.

Future development trends of international tourism Knowledge economy age contributes to birth of new types of tourism Under the context of knowledge economy age, time of work and leisure becomes more flexible, which leads to great demands for tour.

Meanwhile, new tourism forms can be facilitated by people ’ s new demands for tours and travelling motives. e.g. Cambodia and Singapore have already together built an undersea coral viewing tourism area.

Knowledge economy age contributes to birth of new products of tourism --culture Scenic spots especially favored by foreign tourists including museums, exhibition, arts center and Disneyland etc.

It is well-known that Britain is famous for its literature and culture. Most of famous poets are born in Britain, such as Shakes pares. Shake spares ’ hometown has become a popular tourist attraction.

-- network tourism More than 300 tourism companies from over 20 countries and regions including the US, Canada and Spain have built web pages or high-fidelity virtual attractions on the Internet.

Knowledge economy age contributes to birth of new modes of tourism management Based on popularization of the information superhighway and the Internet, tourism management get changed. E.g. on-line sales of tourism products

There is a hot topic that with new impacts of knowledge economy tourism wholesalers and intermediaries will possibly be replaced. Do you think so? Why?

2. New challenges by knowledge economy for tourism services Innovation in tourism products Traditional tourism products cannot meet customers ’ demands. Knowledge economy calls for new tourism products and new service forms, considering tourists ’ preferences and diversified demands. For example, budget travelling has developed by travel agency when going to HK.

Change in competitive mode Traditional tourist service focuses on resources and passenger source. Under the knowledge economy, tourist service will transform into the competition of technology and information.

Improvement of personnel qualities Knowledge-intensive tourist services calls for knowledge management and improvement of personnel qualities. Enhancement of tourism marketing Marketing mix should consider the customers ’ preference based on knowledge economy.

8.3. Trade in Financial Service （金融 服务贸易） Concept of trade in financial service （金融服务贸易的概念）

8.3.2 Financial industry development （金融业发展） (1)International development ( 《 Report on International Financial Markets( 2005) 》 ) （国际发展状况） (2) Domestic development （国内发展状 况）

Quiz 1. What are its main characteristics of transportation service trade? 2. What are the main characteristics of tourist service? 3. What is financial service trade? What is it composed of?