Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved Chapter One: Introducing the World’s Largest Industry, Tourism

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved Learning Objectives Understand and explain the basic definition of tourism Identify the major participants and forces shaping the tourism industry Explain the historical factors that encouraged the development of tourism Explain the impact of physical, human, and regional geography on tourism activities Explain why tourism should be studied from marketing, management and financial perspectives Identify future challenges and opportunities facing the tourism industry Discuss career prospects in the tourism industry

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved Services and Tourism Service and Tourism go hand in hand Growth rate of services sector faster than any other Tourism is the leader in the production of new jobs Tourism has developed an important part of the economic foundation of many countries

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved What is Tourism? “Tourism is the temporary movement of people to destinations outside their normal places of work and residence, the activities undertaken during their stay in those destinations, and the facilities created to cater to their needs”

What is Tourism? “Activities associated with all overnight trips away from home in paid accommodations and day trips to places 50 miles or more, one way, from the traveler’s origin” Tourism is equivalent to the “visitor-service industry” Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved

A Tourism Model Dynamic and interrelated nature of tourism The traveling public (tourists) are the focal point (heart) of the model Tourism promoters link the traveling public with the suppliers of services Tourism suppliers provide the services that tourists need when they travel External forces affect all participants in tourism; tourists, promoters and suppliers

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved

The History of Tourism Early travelers migrated for food and hunting Animal migrate Nomad or nomadic people Move by foot Confined by geographical limitations Sense of adventure and curiosity Phoenicians, Mayans, early Chinese traveled for trade and military control

The History of Tourism, continued The Empire Era Greeks Romans Egyptians These empires started the necessities that encourage travel Affluent population with time and money to travel Safe and easy travel Widely accepted currencies Widely used languages Legal system which protects personal safety Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved

The History of Tourism, continued The Middle Ages (5 th to 14 th centuries) and the Renaissance Era (14 th to 16 th centuries) Transportation and safety declined Less acceptance of currencies and less knowledge of common languages Some travel by crusaders to Holy Land Marco Polo’s historic travels in the late 13 th century Increased interest in travel for commerce and pleasure

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved The History of Tourism, continued The Grand Tour Era (1613 to 1785 A.D.) Trend of luxurious travel started by wealthy English Developed as a status symbol and spread throughout Europe Goal was to experience the “civilized world” and study the arts and sciences These travels often lasted for several years Growth in travel for business reasons

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved The History of Tourism, continued The Mobility Era ( ) Growing economic prosperity Increase in systems, modes, and speeds of travel (roads, railroads, steamships) Thomas Cook developed tour packages for mass travel Invention of automobile and airplane expanded freedom to travel

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved The History of Tourism, continued The Modern Era (1945 to present) Paid vacations introduced in the early 1900’s made leisure travel possible for working and middle classes Millions of people were introduced to international travel during World War II Postwar prosperity made mass ownerships of automobiles possible Advent of jet travel shortened travel time Time, money, safety and interest in travel led to unparalleled growth of tourism Development of mass tourism

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved Bringing Tourism into Focus Typical reasons for travel Vacation and leisure trips Visits to friends and relatives Business and professional trips Host community affected by tourism Can study tourism from a variety of perspectives Wide variety of questions relating to tourism need to be answered Technology having unprecedented affect on tourism industry

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved Geography Describes the Traveler’s World Physical geography- study of natural features of region Human geography- study of a region’s cultures and peoples Regional geography- combination of physical and human geography

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved Studying Tourism from Business Perspectives Marketing Management Finance

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved Marketing Marketing Concept: Organizational philosophy centered on understanding and meeting the needs of customers Production orientation and sales orientation inferior to customer orientation Marketing Mix (the 4 Ps) - Product, Price, Place, and Promotion Market Segmentation: Process of grouping consumers into segments characterized by common traits and needs

Management The planning, organizing, directing, and controlling of present and future actions to accomplish organizational goals The common thread that holds an organization together and moves all its members in the same direction Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved

Finance How organizations manage revenues and expenses Business is an organization operated with the objective of making profits Profits are revenues in excess of expenses and used as a measure of performance Not-for-profit organizations also need to track their revenues and expenses Accounting is the common language of business Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved

Tourism’s Challenges and Opportunities Encourage growth of tourism as it creates jobs and brings money into the community or country. It also serves an important need for the consumer. May change social structure Unplanned tourism can lead to excessive demands of transportation, public services and degrade the environment.

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved Where do you fit in? Projected to remain the world’s largest industry. Travel and tourism sales will grow at a rate of 4.1% a year through the year Have the choice of working in a really fun place!