1. Travel & Tourism Industry Structures
BTEC National Travel & Tourism

2. The Travel & Tourism Industry
Travel and tourism is one of the world’s largest industries
It is also one of the most fragmented
The two aspects of the industry can be viewed separately, as many of the players are involved in both
Let’s look at each part of the industry on its own

3. Heterogeneity – Plurality - Geographic dispersion
The tourism industry is made up of a large variety of complementary enterprises (tourism attractions, accommodation, intermediaries, bars and restaurants, transports, tourist offices, …) that, together, provide tourists with the experience they are looking for;
There is no single tourist product (even in the same destination), but different forms of tourist consumption are defined by different bundles of goods and services;
While consumers (the demand) are located in a geographic area (the area of origin), tourism products and services (the supply) are located in another one (the area of destination where tourism is actually consumed) except for outgoing intermediaries who usually work in the origin countries of tourist flows (Ecorys, 2009).

4. Travel Industry

5. Distributors

6. Distributors
The people, groups or firms that deliver the products and services of travel to consumers.
These include:
travel agents (business and leisure)
travel operators selling direct to the consumer
firms selling on the Internet
call centres handling customer service

7. Regulatory Bodies

8. Regulatory Bodies
Organisations set up to oversee the industry, either:
Trade associations such as ABTA (Association of British Travel Agents) or
Statutory bodies such as the CAA (Civil Aviation Authority)

9. Public Sector Organisations

10. Public Sector Organisations
Government departments with responsibility for the industry:
Department for Transport (DfT)
Department for Culture, Media & Sport (DCMS)
Foreign and Commonwealth Office (FCO)

11. Transport

12. Transport Delivery of travel products and services by: Road Air Sea
Rail

13. Other Industry Players

14. Other Industry Players
Insurance firms and car hire companies:
Insurers provide cover for goods, services and people
Car hire providers meeting onward travel needs of business and leisure customers

15. Tourism Industry

16. Accommodation, Tour Operators & Distributors
Providing the ‘nuts and bolts’ of the industry:
Hotels, villas, apartments, B&B, camping parks
Packages of travel tours to popular locations
Selling the travel product/service to individual and business consumers

17. Tour Operators Four dominant firms TUI (Thomson) First Choice MyTravel
Thomas Cook
All vertically integrated, operating at more than one level in market

18. Tour Distributors Usually includes business and leisure travel agents:
Some large and well-known
Some small and independent
Others in niche parts of market
Can you think of examples of each?

19. Tourism Agencies Tourist boards and offices:
Promoting Britain to overseas customers (Visit Britain)
Promoting regions of the UK to overseas and domestic customers (Visit Northumbria)
Providing information to customers (Tourist Information Centres)

20. Conference/Exhibition Organisers
The importance of location
Value and service at venues
The role of sponsorship
Customer care

21. Regulatory Bodies Consortium of Independent Tour Operators
Federation of Tour Operators
People1st (Skills Council for Tourism, Hospitality and Leisure)
Regional Development Agencies (RDAs)

22. Public Sector Organisations
DCMS
Visit Britain
Regional Development Agencies
FCO
English Heritage

23. Other Industry Players
The Tourism Alliance represents industry views to the government
Other firms in industry, such as insurance companies and car hire firms