2. Transportation Providers
Chapter 5
The Tourism Business
Travel and Tourism
Transportation Providers

3. Chapter Objectives
Identify factors that contribute to the growth of tourism.
Discuss the reasons that people travel.
Describe the different types of tours.
Explain the importance of transportation providers.
Identify the different types of transportation.
Discuss the impact of the cruise industry.

4. Introduction to Travel and Tourism
The travel and tourism industry includes businesses and government agencies that service travelers.
In 2004, overall spending by domestic and international visitors in the United States increased more than 4 percent to $568 billion.
Section 5.1

5. The Growth of Tourism
Trends contributing to the growth of tourism are:
disposable income the money left from a person’s gross income after taking out taxes
Dual family income
Disposable income
Baby boomers
Health
Section 5.1

6. The Growth of Tourism
Trends contributing to the growth of tourism are:
niche market a new market in tourism that bases travel on specific interests, such as ecotourism
Leisure time
New transportation options
The Internet
Niche markets
Section 5.1

7. Travel for the disabled
The Growth of Tourism
Examples of niche markets are:
Travel for the disabled
Adventure travel
Geotourism
Agritourism
Section 5.1

8. Reasons for Travel
There are two main reasons for travel—business and leisure.
Business travel could be motivated by meetings, conventions, or other general business reasons.
Leisure travel involves travel for pleasure.
Section 5.1

9. Reasons for Leisure Travel
Reasons for Travel
Reasons for Leisure Travel
Visiting family and friends
Natural and constructed attractions
Religious attractions
Fairs and festivals
Cultural attractions
Sports events
Shopping
Section 5.1 9

10. Tourism’s Economic Impact
In the United States, one out of every eight people is either directly or indirectly employed in the travel and tourism industry.
The travel industry is one of America’s largest retail industries.
Section 5.1

11. Tourism’s Economic Impact
The travel industry is one of the largest employers in 29 states.
Travelers in the United States spend about $17,000 per second, $1 million per minute, $60 million per hour, and $1.4 billion per day.
Section 5.1

12. Types of Tours
A tour can include accommodations, transportation, food service, and entertainment.
Tours that include all services for one price are called all-inclusive tours.
Section 5.1

13. Types of Tours
A tour operator or company may develop a package tour as a charter tour.
package tour a prearranged tour that offers value, guaranteed sightseeing, and a quality product
charter tour a tour in which a tour operator buys all the seats on an airplane, train, or bus and resells them to travelers
Section 5.1

14. Types of Tours The three types of package tours are: Independent tours
Hosted tours
Escorted or
Guided tours
Section 5.1

15. Types of Tours
A customized tour may include accommodations, transportation, and sightseeing.
customized tour a tour that is more expensive than a package tour and is designed specifically for an individual tourist
Section 5.1

16. Tour Benefits For tourists, the benefits of tours include:
Volume discounts
Guaranteed sightseeing entrances
Prepayment options
Stress-free travel
For retailers, the benefits of tours include:
Ease of booking
Maximum earning potential
Section 5.1

17. Tour Positions
The growing travel and tourism industry offers a variety of career options in four positions:
Tour escort
Tour guides
Tour hosts
Other tour positions
Reservationists, sales, accounting, product managers, assistant managers, administrative assistants
Section 5.1

18. Growth of Tourism
Travel and tourism is one of the largest and fastest-growing industries in the world.
Other vital segments of the tourism business include the transportation providers.
Section 5.1

19. Electronic Etiquette
Tourism is an international business. Professionals who work in tourism need to understand and adapt to the cultural and language differences of their business partners in order to work and negotiate effectively.
Operating an e-tail business on an electronic channel—the Web—can be costly, due to design, delivery, returns, and operating expenses.
Though Many larger dot-com companies crashed in the 1990’s, small stores like Harris Cyclery of West Newton, Massachusetts, actually increase sales using a basic Web site. Today, a third of Harris’s bicycle business rides in on the Web to get hard-to-find parts and personal service.
Describe an e-business’s home page to your class after viewing one through marketingseries.glencoe.com.
For example, it may be acceptable to call business associates in the United States by their first names, but in Japan, such informality is reserved for close friends and family members. Many businesspeople are turning to the Internet to stay up-to-date on key aspects of international business etiquette.
For more information, go to marketingseries.glencoe.com.
Section 5.1 19

20. What three factors many contribute to the growth of tourism?
5.1 1.
What three factors many contribute to the growth of tourism?
What are two reasons that people travel?
What are three types of package tours? 2.
Quick Check Answers
Factors may include dual family incomes, baby boomers who enjoy travel, health consciousness, leisure time.
business and leisure
independent, hosted, and escorted tours 3.
Section 5.1

21. Modes of Transportation
Passenger transportation is intermodal, which means that it relies on air and ground as well as water transportation methods.
The different modes of transportation include:
Air transportation
Ground transportation
Water transportation
Section 5.2

22. History of Air Transportation
The Wright brothers’ first successful airplane flight took place in 1903.
Passenger service on airplanes traveling short distances began in 1919.
In 1927, Charles Lindbergh crossed the Atlantic Ocean in the first long-distance flight.
Section 5.2

23. History of Air Transportation
Air Travel 1945
The International Air Transport Association (IATA) reorganized to promote cooperative agreements for passengers traveling across international borders.
Section 5.2

24. History of Air Transportation
Air Travel 1958
Congress enacted the Federal Aviation Act to create the Federal Aviation Administration (FAA).
Section 5.2

25. History of Air Transportation
Air Travel 1978
The Airline Deregulation Act allowed new competitors to offer services in new markets to create a more efficient national airline system.
Price competition became more common.
Many airlines were unable to compete.
Section 5.2

26. History of Air Transportation
Air Travel 1978
hub-and-spoke system an effective network for an airline formed by a hub, or large airport, connected to other smaller airports called spokes
Large carriers adopted the hub-and-spoke system.
frequent-flyer program a program in which an airline offers free travel, upgrades, and discounts to program members
Airlines created the frequent-flyer program.
Section 5.2

27. History of Air Transportation
Air Travel 1990s
Point-to-point service by regional low-cost airlines offered an alternative to the hub-and-spoke system.
Section 5.2

28. History of Air Transportation
Air Travel 2000
Many airlines formed partnerships with other carriers for non-competing or international routes.
Section 5.2

29. Airline Careers Onboard positions include: Ground positions include:
Pilot
Copilot
Navigator
Purser
Flight attendant
Ground crew
Security personnel
Gate agents
Reservation agents
Section 5.2

30. Ground Transportation
Types of ground transportation include:
Rail
Automobile
Motor coach
Ground transportation takes longer and costs less than other modes of transportation.
Section 5.2

31. Ground Transportation
In the 1970s, the National Railroad Passenger Corporation was founded, now known as Amtrak.
Amtrak a company that operates a railroad system with combined passenger and rail service throughout the continental United States
Section 5.2

32. Ground Transportation
Internationally, rail service is extremely popular as a means of ground transportation.
In the United States, rail service has not been as popular as it was in the first half of the 20th century.
Section 5.2

33. Ground Transportation
Types of automobile transportation include:
Automobile rentals
Limousines
Vans and shuttles
Section 5.2

34. Ground Transportation
Motor-coach transportation can be categorized as charter-tour transportation.
The motor-coach industry was deregulated in 1982.
Motor-coach travel is popular in major cities as an alternative to rail service, car rental, or taxis.
Section 5.2

35. Ground Transportation
Careers in ground transportation include:
Car rental agents
Sales
Reservations
Drivers
Dispatchers
Chauffeurs
Conductors
Engineers
Section 5.2

36. Water Transportation Types of water transportation include:
windjammer a sailing ship that offers passengers the opportunity to sail privately and work with a crew
Ferry boats
Freighters
Riverboats
Yachts
Windjammers
Cruise ships
Section 5.2

37. Water Transportation
Five factors that affect the price of a cruise ship are:
The ship
The season of sailing
The length of stay
The cabin location
The itinerary
Section 5.2

38. Water Transportation Cruise-ship positions include: Sales Reservations
Purser’s office
Recreation
Shore excursions
Entertainment
Section 5.2

39. Integrated Tourism Systems
Air, ground, and water transportation services and providers are significant contributors to the travel and tourism industry.
Without a reliable system of transportation, the travel and tourism industry could not be successful.
Section 5.2

40. What are three significant events that affected the airline industry?
5.2 1.
What are three significant events that affected the airline industry?
What are three forms of ground transportation?
What five factors affect the price of a ship cruise? 2.
Quick Check Answers
Answers may include any three of the following: (1) the development of the IATA; (2) the Airline Deregulation Act of 1979; (3) the development of the hub-and-spoke system; (4) frequent-flyer programs; (5) low-cost airlines; and (6) airlines developing partnerships with other carriers.
rail, car, and motor coach
Factors include: (1) the ship, (2) the season of sailing, (3) the length of stay, (4) the cabin location, and (5) the itinerary. 3.
Section 5.2

41. Checking Concepts
List the factors affecting the growth of travel and tourism.
Reasons for leisure travel include visiting family and friends, seeing natural and constructed attractions, visiting religious attractions, attending fairs and festivals, visiting cultural attractions, attending sports events, and shopping. 3.
Niche markets include travel for the disabled, adventure travel, geotourism, and agritourism. 2.
The factors that affect the growth of travel and tourism are trends toward dual family incomes; baby boomers who enjoy travel; health consciousness; available leisure time; new transportation options; increased Internet use; and niche travel markets such as adventure travel. 1.
Identify the niche markets in tourism.
Checking Concepts Answers
The factors that affect the growth of travel and tourism are trends toward dual family incomes; baby boomers who enjoy travel; health consciousness; available leisure time; new transportation options; increased Internet use; and niche travel markets such as adventure travel.
Niche markets include travel for the disabled, adventure travel, geotourism, and agritourism.
Reasons for leisure travel include visiting family and friends, seeing natural and constructed attractions, visiting religious attractions, attending fairs and festivals, visiting cultural attractions, attending sports events, and shopping.
Describe the reasons for leisure travel.
continued

42. Checking Concepts Explain the impact of tourism in the United States.
Travel and tourism would not be possible without efficient transit programs and state-of-the-art transportation systems. 6.
Types of tours include tour packages, such as independent, hosted, and escorted or guided tours; and customized tours, which are tours that are more expensive than package tours and are designed for individual tourists. 5.
Tourism’s impact on the United States includes its positive effect on the economy: One out of every eight people in the United States is directly or indirectly employed in the travel and tourism industry. 4.
List the types of tours and tour packages.
Checking Concepts Answers
Tourism’s impact on the United States includes its positive effect on the economy: One out of every eight people in the United States is directly or indirectly employed in the travel and tourism industry.
Types of tours include tour packages, such as independent, hosted, and escorted or guided tours; and customized tours, which are tours that are more expensive than package tours and are designed for individual tourists.
Travel and tourism would not be possible without efficient transit programs and state-of-the-art transportation systems.
Discuss the importance of transportation for the travel and tourism business.
continued

43. Checking Concepts Critical Thinking
Identify the three modes of transportation, giving examples of each.
Cruise ships have become popular because they offer luxury appointments, accommodations, and amenities. Some cruise lines offer reasonable rates as well. 8.
Modes of transportation include: air transportation (planes); ground transportation (rail, car, and motor coach); and water transportation (passenger and cruise vessels). 7.
Explain why cruise-ship tourism has become popular.
Critical Thinking
Checking Concepts Answers
Modes of transportation include: air transportation (planes); ground transportation (rail, car, and motor coach); and water transportation (passenger and cruise vessels).
Cruise ships have become popular because they offer luxury appointments, accommodations, and amenities. Some cruise lines offer reasonable rates as well.

44. End of

45. Customizable Slide