Macro Book THC01

Instructor’s Manual
The Business of Tourism

Ninth edition
Christopher Holloway
Claire Humphreys
For further instructor material

please visit:
www.pearsoned.co.uk/holloway
ISBN: 978-0-273-75517-3
 Pearson Education Limited 2012

Lecturers adopting the main text are permitted to download and photocopy the manual as required.
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First published 1983

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Contents
Introduction 5
Structure of the Manual 6
Parts and chapter guidelines 10
Part 1 Defining and analysing tourism and its impacts 10

1. An introduction to tourism 11
2. The development and growth of tourism up to the mid-twentieth century 16
3. The era of popular tourism: 1950 to the twenty-first century 22
4. The demand for tourism 27
5. The economic impacts of tourism 32
6. The socio-cultural impacts of tourism 37
7. The environmental impacts of tourism 42
Part 2 The travel and tourism product 47
8. The structure and organization of the travel and tourism industry 48

9. Tourist destinations 54
10. Tourist attractions 60
11. Business tourism 66
12. The hospitality sector: accommodation and catering services 74
13. Tourist transport by air 80
14. Tourist transport by water 85
15. Tourist transport on land 90
Part 3 Intermediaries in the provision of travel and tourism services 96
16. The management of visitors 97

17. The structure and role of the public sector in tourism 102
18. Tour operating 108
19. Selling and distributing travel and tourism 112
20. Ancillary tourism services 117
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Holloway and Humphreys, The Business of Tourism, 9th edition, Instructor’s Manual on the Web
5
Introduction
There are long-standing discussions within academic circles, and between tutors and their
students, as to what should form the legitimate content of a course of tourism studies designed
to prepare young people to enter the tourism industry, and this is an issue examined in the first
chapter of the main text. However, there are good grounds today for accepting that tourism can
also be studied as a body of knowledge of academic interest for its own sake, especially at the
undergraduate level, as a preparation for life. Where courses are designed to have a more
practical output, particularly at sub-degree level, these discussions often centre around the issues
of whether the study of tourism should concentrate on the strictly practical and vocational, in
preparation for specific jobs in tourism, or whether it should largely be designed to provide an
underpinning of theory for later training for such positions. We take the view that the separation
of theory and practice, and the distinction between education for life and education for work, is
largely irrelevant. No one working in the travel industry should be ignorant of the principles
which lie behind the practice. Of what value is it to know that tourist demand has switched from
Spain to Greece, or from Kenya to Thailand, or from passive relaxation on beaches to
participation in activities and adventure excursions, without an equal understanding of the
reasons behind these changes?
The aim of ‘The Business of Tourism’ has always been to develop students' broad knowledge
and understanding of the industry as a whole, in order to prepare them for a multi-faceted
lifetime career in which employees can expect as a matter of course to move between the
various sectors that make up the industry, and will be fully capable of functioning efficiently in
their new roles when they do so.
I myself worked in no fewer than three of these sectors – in passenger shipping, tour
operating and retail travel – before entering the academic world to teach tourism. Not
having had the benefit of studying tourism formally, at any time during that career, I
found that learning by experience – still so cherished by many managers in the
industry – limited my knowledge and skills largely to the sector in which I was
operating; each time I moved jobs, I had to acquire a whole new set of job-specific
skills and knowledge. In ‘The Business of Tourism’ we have tried to bring together the
essential elements of all this knowledge, together with that of other sectors of the
industry, to ensure that tourism students today will offer their employers greater
flexibility, and do not feel consistently obliged to start from scratch each time they
move jobs.
Chris Holloway
Whatever tourism module or modules you are teaching, and at whatever level between sixth
form classes at school to undergraduate studies at university, ‘The Business of Tourism’ sets out
to provide your students with a clear and concise introduction to essential knowledge of the
tourism industry. It will be of enormous help to you, as a lecturer, if your students obtain a
grounding in the nature of tourism demand and supply, as well as an outline of the ways in
which each sector operates, before they progress to more detailed, and more specialized texts.
For introductory modules, it makes an ideal set textbook; for those studying more specialist
tourism modules, the appropriate chapters will still provide an excellent starting point for more
detailed study. Virtually, all topics forming the accepted body of knowledge of tourism are
embraced (a companion volume, Marketing for Tourism, supplements the body of knowledge),
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and the text has been written with the intention of maximizing clarity for, and inspiring
enthusiasm in students, at any level.
Too narrow a focus on tourism issues alone will limit the benefit of a general education. This
instructor's manual is designed to overcome this by drawing on the textbook's material to stretch
students, whatever their level of competence, through the use of many open questions. Many of
these will call for an appreciation and understanding of other disciplines, which can cast light on
the complex phenomenon of tourism. Some of these questions will be appropriate for students
with only an elementary knowledge of the field, based solely on what they have gained through
the reading of chapters in this text. Other questions will prove more challenging, and will be
best directed towards students on higher level courses who are reading more widely around their
subject. The questions are arranged in order of perceived difficulty or complexity, and a number
of them, together with the tasks which accompany each chapter, can be readily developed into
assignments, examination questions or other classroom activities.
Structure of the manual
This instructor's manual has been designed to offer suggestions on how the book can be used as
a set text for students new to tourism. It accepts that many teachers of tourism themselves have
neither a background in the industry nor formal qualifications in the subject. It also recognizes
that tourism is often taught today as a modular programme of study based on a range of options,
typically over time periods varying from 10 to24 sessions for a course. Even for those tutors
fortunate enough to have more generous allocations of time for their teaching input, it will be no
easy matter to fit all these topics into a single academic year. The difficulty is compounded for
those tutors working on a term or semester basis, with as little as 10 weeks in some cases in
which to cover the material.
I have to confess that I have never managed to ‘deliver’ all the topics included in the
book in one introductory module, even though I usually had a full academic year in
which to do so. There are always some topics of current relevance and interest which
tend to eclipse others! That is why I have always insisted from the outset that students
read the book in its entirety during the course. I also advise them that they may be
assessed on any of the topics it covers.
Chris Holloway
Accordingly, chapters are topic-based and the table below is designed to allow you to
programme your class contact according to the periods of time allocated for the purpose. While
each of the 20 chapters in the textbook offers scope for a series of one or more lessons, the
manual identifies a total of 24 broad topic areas and an indication of how these would best be
delivered in a complete series of lessons, while allowing those with shorter periods of contact to
adapt the material to meet their needs Thus, in a programme where tourism forms the core of the
material taught in a single year, each topic area could be covered in three weeks, and this could
be expanded to six or more weeks where the module extends for two years or longer, allowing
for more detailed study of individual topics. For programmes such as hospitality or business
studies, in which tourism is taken as an option module or forms a supplementary field of study,
the topics would allow each element of the material to be covered in less detail within a single
week's teaching through one term or semester. In the latter event, prescribed reading of the text
will enable the student to grasp the key issues, with classroom time devoted to questioning and
analyzing issues and developments.
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Where contact hours are more limited, tutors have a choice of approach, for which the following
guidelines are offered:
 Group topics together for lectures. For example, Chapters 1, 2 and 3 fit well together as a
general introduction to the subject, as do Chapters 6 and 7 together with elements of
Chapter 5 dealing with the impact of tourism. Chapters 9 and 10 can be integrated, because
destinations and attractions are closely interrelated, while tourist transport could be taught
as a single entity embracing Chapters 13, 14 and 15. Chapter 8, the structure and
organization of the industry, could embrace Chapter 20, dealing with the ancillary sectors of
the industry, while material in Chapter 16, examining aspects of planning, design and visitor
management, may be in part delivered through lectures on public-sector tourism (Chapter 17)
or relegated to alternative modules which include a fuller coverage of management,
including the marketing of tourism. These approaches are far from ideal, however, allow
students only a superficial appreciation of important subjects which underpin the entire field
of tourism studies. Nevertheless, when dealing with groups of students who are self-
motivated and can be relied upon to undertake background reading, the text provides a good
introductory foundation on which to base a programme, and it is not unusual to find that it
has been recommended by some tutors even as a basis for the study of tourism at Master's
Degree level.
 Omit detailed sessions on certain topics from this introductory module and offer them either
within later modules or as elements in optional modules paralleling the main programme.
The history of tourism, for example, is a fascinating subject of study where time allows, but
many vocational courses will be covered in classes only obliquely or by associated reading.
However, in terms of historical development influencing change in tourism, a study of
history can form a useful basis for seminars or other classwork.
 Insist that students read specific chapters in their entirety before they attend sessions, so that
you can use your time with them to develop what they already know, update their
knowledge with current events, explain anything they find difficult and work with them on
appropriate case studies.
The last approach is particularly valuable, in that it allows more time for the tutor to discuss
developments since the chapters were prepared. The tourism business is among the fastest
changing businesses in the world, and the structure of the industry, the patterns of tourist
behaviour and the applications of new technology are changing the shape of the industry almost
month by month. No textbook can adequately cope with this frequency of change, and tourism
tutors will be obliged to follow the weekly travel trade press and other sources of current
information to ensure that the factual elements in their lessons are up-to-date.
The case studies are topical and will help to supplement the material in the main text. Where
time allows, these can be introduced as a basis for seminar work, supported by reading to be
found in associated texts (the sheer number of tourism texts now coming on stream each year
will ensure a good supply of textbook material focusing on specific sectors of the industry).
Following the outline proposal for classwork, will be found a listing of all chapters in the book,
and under each is a range of support resources designed to support the tutor:
 A restatement of the learning objectives.
 Bullet points listing key areas of importance covered in the chapter.
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 A set of discussion questions designed to be useful in stimulating classroom discussion on

the topic (with answer guidelines separately provided to guide the tutor). These are
associated with the examples provided in the chapters.
 Answer guides to the questions and tasks appearing at the end of each chapter are provided.
 Additional website sources relating to the material covered in the chapter. These are
designed to be useful in providing additional knowledge and examples for the tutor.
To engage the students in more critical thinking I often use the short case studies to
stimulate in-class discussion. I pose a question or two which will ensure the students
have to think about the case study material and apply their learning to develop their
answer. The responses received allow me to assess their understanding of the
material in an interesting and timely manner. In this instructor manual I have
selected two case studies for each chapter, providing a suggested question and
possible answer guide.
Claire Humphreys
Accompanying this instructor manual, tutors will have access to a set of powerpoint slides for
use in the classroom and a test bank of multi-choice questions relevant to each of the chapters.
Tourism topics and syllabus for teaching–an introduction to the Business of Tourism
Class Introduction to Tourism Concepts Chapters
1 Introduction to the industry and definitions 1
2 Historical Development 2,3
3 Demand for Tourism – motivation and enabling factors 4
4 Supply – destination provision 9, 1*
5 Balancing demand and supply – seasonality and resort lifecycle 4*
6 Measuring tourism – gathering information on tourism 5
7 Impacts of Tourism – Economic 5
8 Impacts of Tourism – Environmental 7
9 Impacts of Tourism - Social and cultural 6
10 Visitor management 16
11 Government involvement in tourism 17, 3*
12 Technology and Tourism End of each chapter
The Tourism Industry
13 Structure of the industry (Mega-operations and SME's) 8
14 Distribution – travel agents 19
15 Distribution – tour operators 18
16 Access – the role of the transport industry 14, 15
17 Aviation – the airline and airport sectors 13
18 Attractions 10
19 Ancillary and support services 20
9
20 Amenities (accommodation and hospitality¸ etc.) 12

21 Legislation and Regulations 6*, 18*, 19*
22 Business and Conference Tourism 11
23 Urban and Rural Tourism 9*
24 The future of the Tourism Industry End of each chapter
* denotes part of chapter
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Parts and chapter guidelines
Part 1
Defining and analysing tourism and

its impacts
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CHAPTER 1
An introduction to tourism
1. Learning objectives
 recognize why tourism is an important area of study
 define what is meant by tourism – both conceptually and technically – and distinguish it
from travel, leisure and recreation
 identify the composition and major characteristics of tourism products
 outline the various forms of tourist destination and their appeal
 explain why destinations are subject to changing fortunes.
2. Key areas
 Defining tourism – indicators, problems with definition, reasons for definition
 Tourism as a system
 Critical characteristics of tourism: intangibility, heterogeneity, inseparability and perishability
 Introducing tourist motivation and the characteristics of the tourist
 Introducing the tourist destination
3. Two in-class discussion questions
Discussion Question 1.
EXAMPLE: UK Quality Assurance Agency – benchmark for tourism

programmes
The QAA introduced benchmark statements to clarify academic expectations and standards
related to degree qualifications. Initially developed in 2000, the tourism benchmark
statements were reviewed and updated in 2008 to reflect developments in the industry.
The current UK QAA benchmark for tourism proposes that an honours graduate in tourism
should be able to:
 demonstrate an understanding of the concepts and characteristics of tourism as an area of
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academic and applied study, including being able to:

 understand and appreciate the potential contributions of disciplines that help to
explain the nature and development of tourism
 explain and challenge theories and concepts which are used to understand tourism
 explain and challenge the definitions, nature and operations of tourism
 demonstrate an understanding of the domestic and international nature and
dimensions of tourism
 utilize a range of source material in investigating tourism
 demonstrate an awareness of the dynamic nature of tourism in modern societies
 understand the intercultural dimensions of tourism
 demonstrate an understanding of the nature and characteristics of tourists and, in

particular:
 be able to explain the patterns and characteristics of tourism demand and the
influences on such demand
 have an understanding of the ways in which tourists behave at destinations
 understand the cultural significance of tourism for tourists and societies
 demonstrate an understanding of the products, structure of and interactions in the tourism

industry, including being able to:
 demonstrate an understanding of the structure, operation and organization of the
public, private and not-for-profit sectors and their activities
 evaluate the factors that influence the development of organizations operating in
tourism
 analyze relations between consumers of tourism and the providers of tourism
services
 demonstrate an understanding of the relationships between tourism and the communities

and environments in which it takes place, in particular:
 being able to evaluate the contribution and impacts of tourism in social, economic,
environmental, political, cultural and other terms
 have an understanding of, and being able to evaluate, the approaches to managing the
development of tourism through concepts of policy and planning
 appreciating the ethical issues associated with the operation and development of
tourism
 have an understanding of the issues and principles of sustainability and social
responsibility in the context of tourism.
Source: QAA, 2008
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Question and answer guide:
Do you think all of these areas of knowledge are equally important?
Although students may not plan to work in careers using all these areas of knowledge,
having a wider understanding of the industry and its interrelated activities will improve
decision-making. The demand for these areas may vary by destination and be influenced by
industry shifts over time. However, all have relevance to understanding the many different
sectors of the industry.
EXAMPLE: Statistical definitions
The Australian Bureau of Statistics proposes that ‘Tourism comprises the activities of visitors’,
where ‘A visitor is defined as any person taking a trip to a main destination outside his/her usual
environment, for less than a year, for any main purpose (business, leisure or other personal
purpose) other than to be employed by a resident entity in the country or place visited’.
The European Union (EU) requires that its member states collect data on tourism. To aid this,
it has determined that the UNWTO definition of tourism should guide data collection. The UK
Office of National Statistics (ONS) works within this framework, determining that tourism is
defined as ‘a movement of people to places outside their usual place of residence, pleasure
being the usual motivation.’ The ONS (ONS, 2010, 4) considers anyone making a trip as a
visitor who is ‘a traveller taking a trip to a main destination outside his/her usual environment,
for less than a year, for any main purpose (business, leisure or other personal purpose) other
than to be employed by a resident entity in the country or place visited’.
Source: ABS: http://www.abs.gov.au/AUSSTATS/abs@.nsf/Latestproducts/5249.0Glossary12010-11?
opendocument&tabname=Notes&prodno =5249.0&issue=2010-11&num=&view=
Do you think these definitions are helpful and clear for a researcher about to embark on data
collection? Why is it important to have a clear definition?
To ensure a rigorous methodology, it is necessary to ensure that all data collectors are
interpreting the information provided to them in a similar manner. A single, clear definition
will help.
The Australian definition appears quite broad but will include most travellers, thus allowing
the tourism industry to be considered in all its diversity. It will, rightly, exclude migrant
workers but it may be less clear in regard to refugees and nomads. Domestic business tourism
may also be missed, if the concept of employment is not clear (for example, travelling to a
meeting at a distant office).
The definition of visitor for the ONS may experience similar problems. The ONS definition of
a tourist that identifies the usual motivation as pleasure may be ignoring health tourists,
14
business tourism, and possibly other areas such as VFR, where motivation may be obligation
and duty rather than pleasure.
15
4. Questions in the text book
Question 1.
Why are characteristics such as social class, sex, age and lifestyle influential factors in holiday
choice?
Answer Guide
These can influence interest in certain activities (such as seeking late-night entertainment, social
interaction with others, level of activity, etc). Social class may influence expectations to choose
a particular place and type of activity undertaken - perhaps with a requirement to be seen at
particular places. Sex can be influential in the type of holiday activities as some are gender
stereotyped (spa vs adrenalin holidays). It is useful to discuss the implications of stereotyping
which may not accurately reflect the markets.
Question 2.
In the chapter, we highlighted the fact that tourism can be heterogeneous. What can the manager
of a tourist attraction do to reduce inconsistencies in the delivery of their tourism product?
Answer Guide
Inconsistency in service delivery can be reduced by training staff as well as introducing

procedures to deal with problems. Emphasizing to staff the importance of consistent quality
customer service can also help to ensure that delivery is as expected. The manager may establish
a system where the customer is involved in the delivery of the product (e.g. a self-service
restaurant or returning audio guides to a recharging point) to help reduce delay and ensure that
customers feel they have an element of control.
Question 3.
Why is it important to have a suitable range of amenities if tourists are to be attracted to a

destination?
Answer Guide
Tourists will need these resources to meet their basic needs (the experience of these can add to a
tourist's perspective of the destination). These amenities can add to the appeal and can help
distinguish a destination from its competitors. Amenities such as accommodation and food at
acceptable prices can encourage longer dwell time (including overnight stays).
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5. Assignments in the text book
Assignment 1.
Staycations became popular since the end of the last decade. Explore the attractions in your area
and write a list of the places you would visit and the things you would do if you had a 1 week
staycation. Reflect on your motivations for choosing the items on your list – would they differ
for your parents or grandparents?
Answer Guide
Consideration may be given to price of entry - were some places considered too expensive to
visit? Were some places suited only to a different - target market-by demographics or a
particular niche? Were some not chosen because they had been visited before?
Reflecting on an older generation’s choice is not solely linked to age factors but also on
personal interests, amount of time available, affordability, acceptance among peer group, etc
Assignment 2.
For a country of your choice identify a rural, urban and seaside location popular with tourists.
Write a report which compares and contrasts the different attractions available at each location
to keep the holidaymaker entertained.
Answer Guide
The comparison may highlight similarities, for example, museums or famous iconic landmarks.
The contrasts may note differences between indoor and outdoor activities (perhaps notable
between urban and rural locations). They may also note differences between age of attractions
(new investments in some areas), the variety of attractions (urban areas may provide a variety of
facilities, some of which are considered attractions, such as shopping; coastal areas may offer
attractions suited to particular markets such as families).
6. Websites to provide instructors with more information and

examples
Australian Bureau of Statistics, Defining Tourism, http://www.abs.gov.au/ausstats/abs@.nsf/0/

5AA223EA8A78A311CA25697E0018FBFF?opendocument
Official website of the UN World Tourism Organization (Definitions, global statistics) available
at http://www.world-tourism.org
Official website of the World Travel and Tourism Council (reports and statistics) available at
http://www.wttc.org
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CHAPTER 2
The development and growth of tourism up to the

mid-twentieth century
 explain the historical changes that have affected the growth and development of the tourism
industry from its earliest days
 understand the relationship between technological innovation and tourism development
 explain why particular forms of travel and destinations were chosen by the early tourists
 identify and distinguish between enabling conditions and motivating factors affecting
tourism demand.
2. Key areas
 The early years of tourism
 Guides and guidebooks
 Development of transport
 The grand tour
 Impediments to travel
 Development of the spas
 The rise of the seaside resort
 Expansion of travel in the nineteenth century
 The origins of mass tourism 1900–1950
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EXAMPLE: Travel writing through the ages
Travelogues, and accounts of travel, have taken on different styles and purposes over the
centuries. Whilst travel writing may take the form of letters, diaries and journals composed
during the trip, so travelogues often refer to the accounts composed retrospectively.
Regardless of the form, the reading of travel literature has long held great attraction. ‘Between
the eighteenth- and early-twentieth-centuries, accounts of travel were among the texts most
commonly read’ (p.2). Earliest accounts of journeys largely consisted of information and
description of the places visited. The very writing of the ‘story’ was often seen to give
meaning to the trip. The documenting of peace-time travel has existed for thousands of years,
with the Greeks and Romans producing geographical and travel texts. By the late middle ages,
many travelled (vagrants, royalty, missionaries, students) and many accounts of the journeys
of merchants, missionaries and pilgrims existed. Travel writing in the sixteenth century
consolidated into accounts of exploration and discovery of ‘foreign places with fabulous
races’ (p.29), with a concern that earlier travel guides were prone to inaccuracies and lies.
There was a shift from the heroic adventure to the scientist, writing to explain their world.
Coupled with this was the growth in detail of atlases which attempted to provide greater levels
of precision and accuracy. William Dampier's accounts of his journeys, a mix of scientific
endeavours and privateer adventures (New Voyage around the World, 1697), were hugely
popular reading when first published.
By the eighteenth century, the Grand Tour was widely practised by elite society, and widely
discussed and recounted in literature. Renowned intellectuals (such as Samuel Johnson, John
Milton, James Boswell, Henry Fielding, Horace Walpole, William Wordsworth and Lord
Byron) travelled extensively to enhance their education and social skills, writing guidance on
what could be gained from such travels. Works often included detail on everyday customs, to
provide insights to others of the different cultures that could be expected to be experienced
whilst travelling.
However, as greater levels of travel occurred, on well-trodden paths, following the routes of
existing texts, so there was criticism from authors that such travel could offer little new in
terms of literary insights. By the middle of the eighteenth century, travel writing offered
greater subjective accounts of journeys, incorporating the emotive experiences of the author,
whilst the end of the century reported a growing interest in the aesthetic landscape. Criticisms
of the impacts of tourism were also appearing; Wordsworth's ‘Guide to the Lakes’ (1835) and
Ruskin's ‘Of Modern Landscapes’ (1856) both decried the loss of the landscape to the
invasion of tourists.
The nineteenth century saw the introduction of travel guides (such as those by Baedeker and
Murray), whilst many Victorian travellers were documenting travel experiences, offering new
perspectives on travel. Charles Dickens (American Notes, 1842), Anthony Trollope (North
America, 1862) and Robert Louis Stevenson (An Inland Voyage, 1878) all provide accounts
of their travels during this period.
Traditionally, travelogues were aimed at male audience and male authors dominated the
literary world. However, women were travelling at this time, with their husbands, as explorers,
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missionaries or just for pleasure. Often justification for travel was needed and their writing
may have helped, in part, to have provided this. The form often took the shape of journals,
diaries and letters.
Whilst critics of travel writing have proposed that the age of travel (rather than tourism) is
over, therefore travel writing is dead, the modern day adventurers still write to tell their epic
tales. Some may reflect the travels in the context of the changing political world, whilst other
embed their travels in wider discussions of human mobility. Importantly, in all its forms and
styles travel literature today is still a popular read.
Source: adapted from Korte (2000) English Travel Writing. From Pilgrimages to Postcolonial Explorations
How has travel writing changed since the development of the internet? Will mobile media
change this further?
Travel writing which is published on the internet may take the form of a blog. This consists of
a series of comments, often updated on a regular basis.
Travel writing may also consider the reviews and feedback posted onto websites such as trip
advisor and Expedia. These short comments provide insights to the current provision. In a
similar vein, there are sites such as the Thorn Tree, a discussion forum hosted by Lonely
Planet which is designed to work in conjunction with their travel guides.
Travel articles published by newspapers and magazines are now often made available to a
wider audience online. This increases the chance of access to a wider audience, and thus
longevity of the article. Competition for attention of the reader, however, is great as other
blogs and video media all compete for the online user's attention.
EXAMPLE: The Polytechnic Touring Association (PTA) and Henry Lunn – Lunn
Poly
The Polytechnic of Central London (now the University of Westminster), founded by Quintin
Hogg, established a touring association, to manage the travel arrangements for its members,
some of whom were students. The origins of the touring association were reported to be 1888,
with group visits to the Paris Exhibition in 1889 and the Chicago World Fair in 1893 also
organized. However, there is some evidence that ad hoc trips to Switzerland, France and
Wales were reported in the Polytechnic magazines, as early as 1885. The trips were often
educational, with physical actvities, such as hiking, included in the programme. By the second
decade of the twentieth century, over 16,000 people were participating in continental trips. So
significant were their activities that Thomas Cook, the travel organizer, wrote to the
government's education department to complain that this educational organization was
competing unfairly with his own travel actvities, as these tours were being offered to the wider
public rather than just members of the Polytechnic.
So significant was the scale of this business that chalets were purchased, initially near
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Lucerne, then elsewhere in Europe, as a base for the holidaymakers. Following this, a
steamship (the Ceylon) was purchased for cruises of the Norwegian fjords, with Polytechnic
employees acting as guides.
The success of the PTA lay in offering cheaper travel and expanding the range of tours
offered. They were also innovative; by the start of World War II, they were offering a range of
special-interest tours and all-inclusive ‘master tickets’, ensuring that travellers could
participate in all the local excursions at no extra cost. In 1899, Henry Lunn proposed that the
Polytechnic work with his own fledgling company on the winter travel programme. By the
1960s, the PTA business was merged with that of Henry Lunn to form the travel business
Lunn Poly. This was later purchased by Thomson Holidays (now a part of the TUI group).
To what extent is travel linked with educational groups today?
Educational groups have for many years included travel for study purposes (as can be seen in
the example). While there have been some concerns regarding health and safety, which have
limited organization of such trips, there still remains an interest in travel as a mean of
broadening awareness of the world.
These trips may not be exclusively for the younger generation. Educational groups may
include historical societies, groups with an educational interest in gastronomy, sports, specific
cultural activities, etc.
Question 1.
Identify the motivating and the enabling factors that encouraged the growth in participation on a
Grand Tour.
Answer Guide
Motivating factors consider the social environment and peer pressure (gaining status for the
individual by travelling), networking opportunities, meeting others who can be an asset in future
life. Enabling factors may consider development of more comfortable travel, faster transport,
safety (from crime, disease, etc), reduction in regulation, not needing royal licence, etc.
Question 2.
Consider the period before the 21st Century. How has the speed of travel changed? How has
this affected travel behaviour?
Answer Guide
21
Travel increases according to speed (by the use of horses, then steam railways, then the motor
car, then aircraft). This affected the grand tour; as places could be reached quickly there was
less need to stay away for so long. It became possible to reach more distant destinations.
Journeys were made more comfortable.
Question 3.
Explain how the development of the railways changed leisure travel.
Answer Guide
Travel was possible at faster speeds (so distance travelled took less time and return could be
quicker or travel further for a day trip or vacation became possible). Organizing of group travel
(and packaging this) started with discounted rates possible. Supporting facilities (conveniently
located quality hotels) were developed. Links with ferries made transitions in journeys smoother.
Assignment 1.
The quote at the beginning of the chapter suggests that under the Romans ‘every man could
travel where he wished’. Provide a discussion of the factors that made travel possible to a wider
market, as well as highlight the factors that may have restricted travel for the masses.
Answer Guide
Travel may have been possible with easier routes (straighter, well-paved roads), less likelihood
of crime (piracy, robbery, etc), information available to easily plan journey. VFR spreading
across the empire may have motivated travel (and possibly lowered accommodation costs).
However, this may not have been possible for the masses as the financial position may not have
allowed it. The time free to travel may have been limited.
Assignment 2.
There are some classic travelogues and travel writings written pre-21st century. Examine some
of these texts to allow you to discuss how guidebooks and travel writing may have influenced
whether and how people travelled at the time of their publication. Comment on whether you
think travel literature can have the same effect today.
Answer Guide
Consideration may be given to the availability of information (thus making planning easier). It
may also have helped to inspire readers that travel was safe. Furthermore, it may have inspired
travellers to want to experience the destination for themselves. Today, literature can achieve the
same thing (making a destination popular or in fashion), but it is more likely that other media
22
(TV/film, etc) will have a stronger impact (though some of these ideas can be derived from
books originally).
23

examples
British Library, Towns and tourists, http://www.bl.uk/learning/langlit/texts/tourists/townand

tourists.html
International Commission for the History of Travel and Tourism. Membership is designed to
promote research into tourism history available at http://www.ichtt.org
The Guild of Registered Tourist Guides (Blue Badge training) available at http://www.blue-
badge-guides.com/BlueBadge.html
24
CHAPTER 3
The era of popular tourism: 1950 to the twenty-

first century
 describe the factors giving rise to mass tourism after 1950
 explain the origins and development of the package holiday
 understand the significance of rapid change in political, social and economic circumstances
giving rise to the current uncertainties facing the tourism industry.
2. Key areas
 Tourism since World War II
 The development of the package tour
 The movement to the sun
 Identikit destinations
 Private motoring holidays
 Shipping in the post-war period
 The growth of business travel
 All-inclusive holidays
 Mass-market tourism in its maturity
EXAMPLE: Packaging the camping holiday
The 1950s saw increased interest in camping holidays as they provided an affordable option
for many holidaymakers. However, by the 1980s the availability of cheap hotel and self-
catering accommodation through package holidays reduced interest in this form of travel.
25
Significantly, though, the market that had grown used to the freedoms of camping was ideally
served with the introduction of packaged camping holidays, which arranged sea crossings
where necessary, as well as providing tent, beds, stoves and kitchenware and, in some cases,
private toilet facilities. The camping product further developed through the introduction of
mobile homes (static caravans), chalets and lodges at holiday parks.
Interestingly, recent years have seen a turn-round for this product, as luxury, glamorous
camping (or ‘glamping’) has experienced an increase in demand. Camping at festivals, hiring
pods, yurts (complete with four-poster beds, wood-burning stoves and roll-top baths) or luxury
tents have helped to inspire this growth. The campsites have also improved their offering, with
child-friendly sites offering play areas, family bathrooms and more varied entertainment (The
Times, 2007).
Companies such as Canvas Holidays and Vacansoleil, both established in the 1960s, are still
operating today, having updated their product to meet the changing demands of the customer.
This has included providing greater levels of luxury and additional facilities within the
accommodation. Other players in the market include Keycamp and Eurocamp, as well as
Haven and Park Resorts.
Research into the market in 2009 highlighted the fact that 20% of UK adults had taken a
camping or caravanning holiday in the previous three years, the core market being families.
Interestingly, it seems that tent camping appeals to the younger generation (perhaps the
influence of music festivals) whilst static caravans are predominantly used by the older
generation (Mintel, 2009).
What reasons may have led to the revival of the camping holiday. Is this just a short-term fad
or do you think this will be a long-term revival?
The interest in camping may have been led by
 Recessionary pressures and reduced disposable income.
 Experience of camping (attendance at festivals, etc).
 Availability of equipment and affordability of equipment.
 Access to information on high-quality camping items.
While there may be some who continue to choose camping, it is likely that many will move on
to other forms of accommodation, perhaps stimulated by poor weather or a disappointing
experience.
26
EXAMPLE: The changing face of Benidorm
What was once a small fishing village on the east coast of Spain has become synonymous with
the mass-market package holiday. It has been said that Benidorm was the creator of
the biggest industry in Spain (Mallet, 2008) and Zaragoza Otis, mayor of Benidorm from
1950–1967, was vital in seeing the potential to be gained from tourism. He encouraged a
change in both legislation and attitudes that stimulated demand. The town's rapid growth in the
1970s and 1980s led to the construction of many high-rise hotels, a concrete skyline of over
300 skyscrapers, far removed from the Spanish pensiones and olive groves that existed in the
1950s (see Figure 3.5). So successful was this approach that it became a model for many of
the Spanish Costas (Keeley, 2008).
However, by the 1990s, the town was showing the hallmarks of the worst aspects of mass
tourism –unslightly buildings and on-going construction, polluted beaches and sea water, a
despoilt natural environment, and home to the ubiquitous British lager-lout (Rice, 1991).
Consequently, it was becoming seen as a tacky rather than exotic holiday destination
(Davison, 1989). Furthermore, as demand by Northern Europeans switched, often to the cheap
fly-drive resorts of the USA, so Benidorm had to work hard to ensure that tourists kept
visiting. In the 1990s, the town employed a PR company in Britain to work on its image
problems (Rice, 1991). Restrictions on development, construction controls, infrastructure
development and beach and street cleaning all followed, to help enhance the overall
experience for the visitor.
Yet, even though there has been a shift in attitude to mass-tourism package holidays,
Benidorm is still a popular domestic and international holiday destination, with more than 6
million visitors arriving annually.
Is there evidence to suggest that other destinations have learned from the experience of
Benidorm?
There is now much greater awareness of the need to plan resort development and control the
negative impacts of tourism. However, this is not always easy to achieve. The resort lifecycle
suggests that as resorts develop so external organizations (such as the mass tour operators)
arrive, and may demand additional resources, in turn pressuring the local government to allow
development. Balancing such pressures with economic enhancement can prove difficult.
Where destinations have managed to control development, especially using vernacular

architecture and appropriate scale, destination appeal can be maintained, or even enhanced.
Question 1.
Compare and contrast how the increasing level of private car ownership may affect both
traditional summer holidays and short-break vacations.
27
Answer Guide
Private car ownership is increasing and providing more opportunities for people to travel
independently. As cars become reliable, they may be used for travel to destinations domestically
and across borders though these trips are often within the same continent. When families travel,
it often appears cheaper (and more convenient) than paying for several flights. Also as
holidaymakers become more independent, the desire to travel around at the destination may
mean that taking the car can also save on local transport costs. This is especially true for longer
holidays. For short breaks, the car offers greater convenience and is available at short notice.
The rising cost of fuel and increased interest in environmental protection may see travellers
considering train travel as an alternative to car journeys – Slow Tourism is relevant here.
Question 2.
Explain how all-inclusive resorts can be a beneficial form of development for the host
population. Identify the key concerns of such an approach.
Answer Guide
Resort development can concentrate construction in a localized area. Whilst this may cause
heavy impacts on this region, it can be beneficial as development suited to the scale of demand
is possible. It also allows other areas to remain less developed. The host population can then
maintain traditions in their own areas, away from the view of the tourists. Residents may be
concerned that there is a lack of benefit for the entire population, as tourists are contained and
rarely move away from the resort. This is exacerbated as remote populations may find it
difficult to access the benefits from tourism, as they cannot develop the language skills and
cultural understanding required to enter into tourism-related employment, because they are
without regular interaction with tourists.
Question 3.
Summarize how the business travel sector has changed over the past 50 years and, by thinking
about the many influences on supply and demand, predict how it might change over the next
decade.
Answer Guide
The business travel sector expanded significantly but has seen times of decline, often linked to
economic recessions. In the case of a downturn in the economy, employees may be required to
travel economy class rather than business class – few businesses cease all travel for employees.
The conference and events industry has seen increased professionalism. Increased awareness of
environmentalism may lead to greener meetings. Although there have been years of talk that
technology will remove the need for travel to do business, there is little evidence that this will
actually occur in the foreseeable future.
28
Assignment 1.
Investigate the many different mobile phone ‘apps’ currently available which are related to travel.
Using examples of different apps, write a report which discusses how these phone tools may
influence:
 How tourists will gather information about destinations and attractions?
 How tourists book a holiday?
 How tourists travel around at destinations?
Answer Guide
Apps allow travellers to make reservations, investigate attractions, book flights, get timetables
and route status updates (eg. information on delayed flights). Using apps will provide convenient
opportunities to gather information before and during trips. This may encourage extended stays
or visits to additional places. Apps may be used to act as guides. Booking and using mobile
phones to store reservation details will ensure that managing the paperwork for a trip may feel
seamless. This may include using mobiles for boarding passes and door keys for hotel rooms.
Tourists may use apps to reserve taxis, select local restaurants and get times and routes of local
public transport.
Assignment 2.
Pick one of the Spanish Costas to investigate. Discuss how the destination has had to adapt as
demands from tourists have changed over the past 50 years.
Answer Guide
Answers are likely to note the move upmarket of accommodation. It may note change as
travellers become more experienced and are prepared to self-drive, to move away from the
beach. Whilst food demands may not have changed significantly, issues with alcohol and late-
night entertainment may have caused conflicts with local population.

examples
BBC (Video Clip) Impact of mass tourism, http://www.bbc.co.uk/learningzone/clips/the-impact-

of-mass-tourism-in-spain/1569.html
Nordin S (2008) Tourism of Tomorrow: Travel Trends and Forces of Change published by Mid
Sweden University available at http://urn.kb.se/resolve?urn=urn:nbn:se:miun:diva-99
Visit Dorset, All inclusive – the future of family holidays, http://ch.visit-dorset.com/xsdbimgs/

All%20Inclusive%20Report(1).pdf
29
CHAPTER 4
The demand for tourism
 distinguish between motivating and enabling factors
 understand the nature of the psychological and sociological demands for tourism
 recognize how the product influences consumer demand
 be aware of some common theories of consumer behaviour, such as decision-making and

risk avoidance
 be aware of the factors influencing demand and how demand is changing in the twenty-first
century.
2. Key areas
 The needs and wants of the tourist
 Travel motivation
 Facilitating and enabling factors
 Segmentation of demand
 Consumer typologies and decision-making
 Factors affecting changes in demand
EXAMPLE: Bootcamp holidays
The desire to get fit has led to the growth of many holiday ‘bootcamps’. These vacations
provide health food regimes with organized physical activities and, in the case of many luxury
bootcamps, massages and treatments to ease the aches and pains. While this may not seem like
a holiday, demand has been increasing in recent years.
To serve more specialist markets, there are also training holidays for cyclists, triathletes and
30
marathon runners. One such company is Embrace Sports, who regularly organize triathlon.
training holidays. A typical week-long holiday would include:
 daily run (5–10 miles), swim, or cycle ride (40–70 miles)
 open water swimming technique session
 strengthening and conditioning exercise class
 aquathon time trials
 running track sessions.
While such an intense exercise schedule would not suit everybody, part of the appeal for those
who do take part is the opportunity to meet other people with a shared interest in triathlons.
How might a company such as Embrace Sports reach its target market?
Reaching target audiences may be through marketing activities linked to triathlons (e.g.
sponsoring or advertising at events, advertising in triathlon magazines, etc). They may also
reach target audiences by encouraging existing clients to promote their activities (links on
Facebook, etc).
They may develop a newsletter to be emailed to those interested in their activities, accessing
emails from a database which they may develop or which they may purchase from a third
party (e.g. a shop selling triathlon equipment).
EXAMPLE: An unwanted holiday memento
In 2010, singer and X-Factor judge Cheryl Cole became a high-profile victim of malaria, after
contracting the illness whilst on holiday in Tanzania. Despite taking anti-malaria tablets while
travelling she nevertheless contracted the disease, leading to hospitalization for several days. It
is believed that more than 2,000 people return to Britain each year infected, with about 10% of
this number dying from the disease (Porter, 2010).
Which illnesses may particularly affect the traveller? Are there things which travellers can do
to reduce the likelihood that they get sick?
Travellers may be afflicted by sunburn, gastric issues caused by a change in diet, water, or
food poisoning. More serious problems may occur in areas where health and hygiene levels
are low or specific illnesses are common (e.g. malaria). Specific activities may lead to injuries
31
(e.g. skiing).
Travellers can reduce user risk by taking medication to reduce susceptibility, take care over
their food and water consumption and ensure that they heed local advice.
Question 1.
Maslow's Hierarchy of Needs is a well-known model related to motivation. Discuss whether this
is helpful as an approach to understanding tourism motivation.
Answer Guide
This can offer a basic insight but was never designed with tourism in mind. It can help in
understanding that basic needs must be considered (and thus amenities such as accommodation
and food need to be in place). There are perhaps general links to the need for social interaction
and spending time with family. However, there are better models for identifying how the many
different motivations to participate work together and why particular destinations are chosen to
address motivations (look at push/pull factors or the travel career pattern, for example).
Question 2.
The ‘Senior’ or ‘Grey’ market is said to be growing. However, serving this market may require
some adaptations to the product. Identify the changes which may need to be made if this market
is to be served by tourist attractions and tour operators.
Answer Guide
The market may require greater levels of customer service and high quality of accommodation.
It may also be the case that this market seeks a balance of adventure with safety, for which they
may be prepared to pay a premium price. The speed of travel may also need to be considered,
with longer spent in particular locations, several nights in the same hotel, for instance. Help with
luggage may be necessary. The way in which the product is marketed may also need to be
considered; although internet use is growing among this market, online sales may need to be
supplemented with sales via intermediaries. Information may need to be provided via printed
materials and social media sources may be less commonly used.
Question 3.
How might the motivations of business travellers differ from those of leisure travellers? How
can a hotel attempt to meet the needs of both segments?
32
Answer Guide
Business travellers may be motivated by the opportunity to trade and network while leisure
travellers may be motivated by opportunities for social interaction and discovery of the
destination. Business travellers may base hotel selection on location convenience while for
leisure travellers price may play a considerable role. Hotels may cater to leisure tourists by
offering discounted prices (though may expect in return that the booking is made further in
advance and is non-refundable and non-changeable). Business travellers would require greater
flexibility in booking arrangements but are less price-sensitive. Facilities provided to business
travellers may include an executive lounge (providing catering and meeting space). A business
centre providing copying, fax services, etc has historically been important although technology
is shifting this demand. Leisure travellers may require a concierge service which can help
provide local tourist information and suggestions on places to visit and eat. Hotels may
experience high levels of business travellers during the working week and leisure travellers at
the weekend.
Assignment 1.
Investigate the annual tourist arrival numbers for a country of your choice. Try to ensure that
you have at least 50 years of arrivals data. Plot this data on a chart to examine the lifecycle of
demand. Write a report which examines this lifecycle in comparison to the theory developed by
Richard Butler. What does the lifecycle suggest about the development of the destination?
Answer Guide
There are several countries which make such data available online. Hawaii has historically
provided a good example because the bounded nature of the destination allows clear counting.
The lifecycle plotted will often show blips, which reflect external events such as recessions, war
or political instability, etc, so the trend is difficult to establish. The growth of tourism generally
has also led to an increase, regardless of the destinations actual trend. We can see that
destinations do not always maintain their popularity and investment may be needed to continue
to attract visitors.
Assignment 2.
Interview three different tourists. Ask them about their motives for travelling and why they
chose the destinations they visited. Compare and contrast the responses. What does this tell us
about tourist typologies?
Answer Guide
Interviewers may consider asking about the type of accommodation chosen, the attractions
visited, the food selected in resort (i.e. whether visitors eat at a hotel, a chain restaurant or local
restaurants). Asking about the use of a guide or resort representative may also be useful. The
destination may also help to give insight into the type of tourist.
33

examples
European Commission Promoting EU Tourism: Community's commitment for Tourism

http://ec.europa.eu/enterprise/sectors/tourism/promoting-eu-tourism/community-commitment-
tourism/index_en.htm
European Commission (2009) Europeans and Tourism, http://ec.europa.eu/enterprise/

newsroom/cf/_getdocument.cfm?doc_id=5302
European Travel Commission (2011) Trends and Prospects available online at http://www.etc-
corporate.org/resources/uploads/ETC_European_Tourism_Q3_2011.pdf
ITB World travel trends report 2010/2011, http://www.itb-berlin.de/media/itb/itb_media/

itb_pdf/worldttr_2010_2011~1.pdf
UNWTO (access to facts and figures showing demand for tourism around the world) available
at www.world-tourism.org
34
CHAPTER 5
The economic impacts of tourism
 identify the economic benefits of tourism for a nation, both nationally and regionally
 be aware of the negative economic effects of tourism for destinations
 understand how tourism is measured statistically
 recognize the limitations of statistical measurement.
2. Key areas
 International and domestic tourism – number of trips and tourist expenditure
 Travel propensity
 Economic impacts – income, employment, balance of payments, investment
 Tourism multiplier and leakages
 Opportunity costs
 Statistical measurement of tourism
 Tourism satellite accounts
EXAMPLE: Government investment demanded to boost tourism in Victoria
The state government of Victoria, Australia is being urged to invest in the local tourism
infrastructure, in order to boost the local and regional economies. Suggested investment
projects include:
 establishing a car-ferry service between Phillip Island (renowned for its Penguin wildlife)
and the mainland
 constructing an interpretative centre for the Great Ocean Road coastal highway
35
 upgrading rail and highway links.
The new infrastructure would create jobs both in the construction process and in the operation,
improvements and expansion of the tourism industry. The justification for making this
investment lies with the increase in arrivals from China and India, reportedly up 18% and 10%
respectively. In addition, the improvements made through government investments are
expected to encourage confidence in the region, creating inward investment from the private
sector.
Sources: Gray, 2010; Rayner, 2011
How can a local or national government justify the investment in tourism resources and
infrastructure?
Local governments invest because there are some returns which benefit the local economy.
This includes increased local employment, increased business (and thus taxes) and
development of civic pride by ensuring that the area is attractive.
In some cases, investment may be to encourage inward investment and development or

regeneration of an area. Investment may also be to protect assets (such as historical buildings
or monuments) from decline. Thus environmental protection can also be on the agenda. In
some cases, the infrastructure development serves the local population as well as tourists, thus
benefiting both groups.
EXAMPLE: The value of tourism in the Falkland Islands
In 2009, the Falkland Islands presented their tourism satellite accounts, confirming the value
of tourism to these remote islands in the South Atlantic. The accounts reveal that tourists spent
£6.6 million in 2008/09, accounting for 5% of the Islands GDP. Tourism indirectly contributes
to several sectors of the economy, including transport, catering and retail.
Developing the TSA was seen to be important as it ‘provides a tool for both the tourism
industry and government to measure growth and properly plan for the future, and it will have
policy implications for employment, education, infrastructure and transport’ (Brock, 2009).
How difficult is it to develop a TSA?
Conceptually, the main principle is that an allocation of earnings from different industry
sectors is attributed to tourism and therefore allocated to the tourism account. Determining the
allocation can be achieved by researching each sector (perhaps via interview) and determining
the share attributable to tourism.
36
The difficulty in creating the TSA is that a huge amount of data is needed to determine
accurately the total amount as well as the share to be allocated.
Governments have been working towards establishing details of the share, which will help
enhance accuracy of the TSA.
Question 1.
What factors can cause leakages, which can impact on the value of the economic multiplier?
How might these leakages be reduced?
Answer Guide
Leakages can be caused by the use of foreign employees who repatriate wages, the import of
foreign goods (in the construction of tourist resources and in the service of customers).
Leakages reducing the multiplier can also be caused by savings, reducing the total amount of
money in circulation. Leakages may be reduced by encouraging the use of locally sourced
resources, such as food (lower food miles may add to the appeal and justify a premium price),
construction materials and local labour.
Question 2.
Some taxes levied by governments are specifically targeted at tourists. These include arrival and
departure taxes, and hotel ‘bed’ taxes. Discuss whether such taxes are likely to dissuade tourists
from visiting a destination.
Answer Guide
These may impact on decisions for a price-sensitive market but this is just one of the factors
influencing overall travel cost. Justifying the tax (especially, if it is to fund improvements in
tourism infrastructure) may ease the minds of the visitor. If the attractions at the destination are
particularly unique or iconic then the visitor is likely to come regardless of the charge (though it
may have an impact on length of stay). Sometimes these costs are included in tour package
prices and in such cases the tourist may be unaware of their existence. If they are to be paid
directly by the tourist then it is vital that this can be achieved conveniently – rumours of long
queues and hassle may deter visitors.
Question 3.
Americans were calculated to have made 38,844,301 international trips in 2009, in addition to
some 1,898,800,000 domestic trips that same year. The population was estimated at
305,529,000. Using these data, calculate the gross travel propensity for both international and
domestic travel. How might this information be useful for a travel agency based in the USA?
37
Answer Guide
Gross Travel Propensity is the ratio of trips taken in relation to the total population.
USA: International Travel
38,844,301/305,529,000 (*100 for percentage) = 12.7%
USA Domestic Travel
1,898,800,000/305,529,000 (*100 for percentage) = 621.5%.
This is useful in understanding the extent to which the population travels. The high level of
domestic travel suggests that a USA agent should promote the fact that they can assist with
domestic travel arrangements as well as international travel.
Assignment 1
Visit the website for the WTTC and locate the country reports available through their economic
research pages (http://www.wttc.org/eng/Tourism_Research/Economic_Research/). Select two
countries to compare and contrast. For each country, review their Impact Research Report to
comment on inbound and domestic tourism expenditure, the contribution of travel and tourism
to both GDP and employment and the relative rankings to world average. What do the two
reports tell us about tourism in each country? Why do the two countries differ?
Answer Guide
WTTC Economic Impact Country reports usually provide data related to:
 GDP: Direct Contribution (inbound and domestic)
 GDP: Total Contribution
 Employment: Direct Contribution
 Employment: Total Contribution
 Visitor Exports
 Different Components of Travel & Tourism
 Investment
 World ranking.
 An examination of absolute numbers as well as percentages should be considered.

Comparisons can be made, for example, in regard to percentage of GDP attributable to
38
tourism and the percentage of jobs which are in tourism. The world rankings and regional
rankings may also be useful.
Assignment 2.
Interview two students who are studying tourism. Ask them for their views on working in the
tourism industry. Particularly focus on their views on pay, hours and their long-term career
aspirations. What do these views suggest about the nature of employment in the tourism
industry?
Answer Guide
This may highlight factors such as low pay, seasonal work and long hours. Countering this it is
possible to suggest that career opportunities may be diverse and senior managers are likely to
have levels of pay commensurate with other service sector industries.

examples
Economic Commission for Latin America and the Caribbean, Handbook for estimating the
socio-economic and environmental effects of disasters: Tourism http://siteresources.world
bank.org/INTDISMGMT/Resources/tourism.pdf
Overseas Development Institute, Measuring and improving the socio-economic impact of an all-
inclusive hotel in Turkey.
http://www.tuitravelplc.com/tui/uploads/dlibrary/documents/Measuringandimprovingthesocio-
economicimpactofanall-inclusivehotelinTurkey.pdf
Tourism Highlights and the world tourism barometer – available from the UNWTO at
http://www.unwto.org/facts/menu.html
Tourism Satellite accounts presentation by UNWTO available at http://www.unwto.org/

statistics/tsa_in_depth/index.htm
Visit Britain, Why tourism matters, http://www.visitbritain.org/britaintourismindustry/

introbritainstourism/tourismmatters/index.aspx
Visit Britain, Achieving the full potential of the visitor economy, http://www.visitbritain.org/
Images/btfr%20full%20final_tcm29-14456.pdf
39
CHAPTER 6
The socio-cultural impacts of tourism
 understand the various ways in which tourism can impact on the populations of both
destination and generating countries
 identify and evaluate different approaches to finding solutions to problems caused by these
impacts
 understand the concept and importance of sustainable tourism in a socio-cultural context
 recognize the need for adequate planning and cooperation between the private and public
sectors as means of overcoming problems.
2. Key areas
 The socio-cultural impacts of tourism
 Staged authenticity
 Host-guest interaction
 Cultural transgressions
 The exploitation of indigenous populations
 Managing the social impact of tourism
 The impact of travel on tourist health
 Legislation and guidance
EXAMPLE: The spread of swine flu
In the spring of 2009, a new virus, H1N1 (or swine flu as it was known), spread from Mexico
to many countries across the globe. Possibly between 45 and 90 million people caught swine
flu in 2009, and the disease is estimated to have resulted in more than 17,000 deaths in 200
countries, though many of those who died were suffering from pre-existing conditions.
40
The spread of the disease was initially attributed to tourists returning home from Mexican
holidays. But the problem became more complex as government officials complained that
carriers of the virus were visiting tourist regions and further spreading the disease among the
local population. For example, Indonesian authorities accused Australians of bringing the
virus to Bali, and introduced the use of body temperature scanners at airports to identify
potential carriers; similar border checks occurred between Nepal and India.
In the immediate aftermath of the outbreak, occupancy rates in Mexican hotels fell, perhaps
not surprisingly, from 90% to a level around 20% as visitors cancelled their travel plans,
airlines cancelled flights and cruise ships diverted to other ports of call. The impact on the
Mexican population was significant. Many lost jobs as the H1N1 swine flu (coupled with the
global financial crisis) led to 1.1 million fewer tourists visiting Mexico in 2009.
What responsibility does the government or other authorities have to restrict travel for health
reasons? Who will be affected by a decision to ban travel to a region?
Governments may ban visitors to restrict the spread of infectious diseases. The government
may also restrict access when local health resources are under pressure to ensure no new cases
are present. Governments may ban travellers in order to protect both the local population and
the visitor. However, there are perhaps few travellers who would want to enter an area, if they
know illness is rife.
The local tourism businesses will be directly affected by a ban, while those who rely indirectly
on tourism may also be affected by a long-term restriction on arrivals. Local populations may
find the ban would impact on the atmosphere of their area or their reputation, leading to a loss
of civic pride.
Tourists who had planned a trip may also be affected – having to change destination or cancel
travel altogether.
EXAMPLE: Journey Latin America
In the Andes, Journey Latin America has worked with reputable local agents to protect porters
and the environment on the Inca Trail. They operate using local guides, hotels and operators,
encouraging their local suppliers to work towards responsible tourism.
In 2003, the company ran a clean-up campaign in the Cordillera Blanca, Northern Peru
(where, as yet, there is little legislation to protect the environment). The company has stated
its intention to help protect the integrity of indigenous populations, particularly those in the
Amazon basin where adventure holidays are offered. They have also cooperated with Climate
Care to offset the effect of carbon dioxide emissions in the flights that transport their staff
travelling on business. They also work to raise awareness of responsible tourism amongst their
travellers, including offering the opportunity to offset the impact of their flights.
41
Why would a tour operator, such as Journey Latin America, bother to help the local
population?
The company may wish to help as part of their corporate social responsibility (CSR) policy.
They may also want to help in order to enhance their relationship with businesses and
population in the area.
Supporting such projects can also attract customers, enhancing sales opportunities. There is
also a need to protect the natural resources and attractions in the area to ensure tourists
continue to be attracted to the destination.
Question 1.
The chapter suggests how tourist ghettos (concentration of tourists into a particular district) can
act as a tool for managing the impact of tourism; it can certainly help to contain the spread of
environmental damage caused by tourism, but how does this approach benefit the host
population? How might the host population benefit from a more integrated approach to tourism
development?
Answer Guide
Benefits of ghettos may be to distance tourists, from local facilities and spaces so they are not
crowded or intruded upon (keeping locals content). They may allow community spaces to be
developed (leading to interaction between local populations).
A more integrated approach may encourage greater interaction, which can educate or provide
increased opportunities for language development, employment and other benefits to reach a
wider section of society. Locals may also be able to conveniently access tourist facilities for
their own use (restaurants, attractions, etc).
Question 2.
How important is authenticity in the following cases:
 watching a hula show at a hotel in Waikiki, Hawaii
 buying souvenirs from Masai tribesmen when visiting their village in East Africa
 museum exhibits at the former concentration camp at Auschwitz.
42
Answer Guide
Authenticity can be influenced by the tourist's expectation, therefore, each case may be unique.
So staged authenticity and perceived authenticity must be considered.
From cohen (1979) Tourists view the experience Tourists view the experience as
as real staged
Real scenes are provided Authentic experience Denial of
authenticity
Staged scenes are provided Staged Contrived
authenticity authenticity
Each of the three areas can be debated in light of above.
Question 3.
Why might tourists be the likely victims of petty crime or holiday scams? What are the likely
effects on a destination where crime against tourists is widespread?
Answer Guide
Tourists are vulnerable because they are likely to be inattentive as they view local sites, may
have high-value items with them (e.g. camera, currency, etc) and may not be familiar with the
local area. The effect on the destination is that it may create a negative image which will deter
visitors. It may be necessary to invest in crime reduction and introduce tourist police to counter
a negative image.
Assignment 1.
The United Nations World Tourism Organization has implemented a campaign to protect
children from exploitation in the travel industry (www.unwto.org/protectchildren). Investigate
this initiative and write a report which identifies the different ways in which children may be
negatively exploited by the tourism industry. Discuss the many activities and campaigns which
are being implemented by the tourism industry to protect this vulnerable group.
Answer Guide
The WTO campaign has a particular focus on child sex tourism but is more far reaching.
Projects such as ECPAT (thecode.org); International Federation of Journalists – Tourism and
child abuse project; UNICEF/WorldVision, all highlight the issue.
Industry efforts through the training of staff to report offenders and the education of tourists (for
example displaying in-flight videos) are initiatives seeking to eradicate this.
43
Assignment 2.
Write a short essay which highlights the many positive benefits that tourism can bring to a host
population. Use examples to support your points. Suggest changes which can be made by the
tourism industry to ensure that these positive benefits can be maximized.
Answer Guide
Positive benefits may include:
 Increased understanding of different cultures, education and increased job opportunities

(different careers, changing role of women), protecting traditional lifestyles and activities
(through valuing their existence).
Changes in the industry may include:
 Providing information to the tourist prior to travelling to inform about suitable behaviour,
providing training for local population to allow access to jobs (rather than jobs going to
expats).

examples
European Commission, Calypso (Social Tourism), http://ec.europa.eu/enterprise/sectors/

tourism/calypso/index_en.htm
socio-economic and environmental effects of disasters: Tourism
http://siteresources.worldbank.org/INTDISMGMT/Resources/tourism.pdf
Propoor Tourism Partnership, Caribbean tourism, local souring and enterprise development,
http://www.propoortourism.org.uk/18_domrep.pdf
44
CHAPTER 7
The environmental impacts of tourism
 understand the various ways in which tourism can impact on the environment
 identify and evaluate different approaches to finding solutions to the problems caused by
these impacts
 understand the importance of sustainable tourism as it relates to the environment
 recognize how appropriate planning and cooperation between the private and public sectors
can help to ensure sustainability.
2. Key areas
 Tourism impacts on the environment
 Transport pollution
 Noise pollution (night flights, entertainment, etc.)
 Development
 Visual pollution
 Carrying capacity
 Erosion and damage to flora and fauna
 Positive environmental impacts
 Public-sector control and conservation
 Sustainable tourism
45
EXAMPLE: Sustaining golf in the desert
Las Vegas is renowned as a casino destination. Visitors also head to the desert city for
weddings, as a base for their visits to the Grand Canyon and to play golf; but the many golf
courses require copious amounts of water, a precious resource.
In 2005, Southern Nevada Water Authority (SNWA) established a scheme to encourage local
residents and golf courses to remove turf and allow the land to return to desert scrub. As an
incentive, $1.50 per square foot was paid in this ‘cash for grass’ scheme. The cash received
helps cover the cost of remodelling the landscape and ultimately reduces the annual water bill
for each course. By May 2009, it was estimated that 795 acres of turf have been removed, with
savings in water usage of 1.9 billion gallons.
Source: Figueroa, 2009
Are tourists being irresponsible by playing golf in this desert region?
There are environmental pressures caused by the extensive use of water to maintain golf
courses. While the local population may use these facilities, the overall number of courses
developed may be greater because they are sustained financially by tourist use. Often the fees
paid by tourists to play may be high, bringing in income for the courses, and indirectly
providing benefits to local people and, via taxes, to the local government. The high charges
may cover the high costs of supplying water and other resources, but this may do little to
offset environmental pressures.
Only if initiatives are employed to reduce the environmental impact (such as those described
in the example) will tourist impact be reduced. Overall, it is not necessarily the case that
tourists are being irresponsible but there is concern that there is pressure on the environment
(something which may be true with other tourist activities too).
EXAMPLE: Green Globe
This organization, a member of the UNWTO and part-owned by the WTTC, was established
in 1992 and now operates internationally to provide certification of sustainability. It also
provides training, education and marketing to encourage travel and tourism businesses to
consider the environmental impact of their operations. By 1998, membership had reached 500
organizations in 100 countries.
Using internationally accepted criteria, Green Globe, via its certification bodies, assesses the
environmental management strategies of those organizations seeking accreditation. This has
46
included airports, hotels, tourist attractions, transport providers and conference venues. More
recently, it has also branded tools which help to calculate carbon emissions and offset
requirements.
Source: http://www.greenglobe.com
Why might a hotel company make the effort to get accredited by Green Globe?
Researching and implementing the changes needed to be certified can inform the business of
ways to reduce negative impacts. Initiatives implemented may reduce costs for the business
(lower electricity, laundry, water costs, etc). They may also encourage reuse and repair of
resources.
Accreditation can also be a selling point, allowing differentiation. This may appeal to
corporate clients trying to control the environmental impact of their travel.
Question 1.
Several airlines now offer their passengers the opportunity to offset the carbon emissions of
their journey by paying a fee to a project which seeks either to reduce carbon emissions from
other activities (such as building wind-powered generators in developing countries) or through
planting trees, which can help to offset the effect of the pollution in the atmosphere. Currently
these initiatives are only taken up by a minority of travellers. Discuss whether such initiatives
are likely to become mainstream.
Answer Guide
Unless there is a large scale campaign to justify these along with tighter and transparent
regulation of initiatives, it is unlikely that it will become a common activity for leisure
travellers. Increase may come from the business travel sector as corporations are being pushed
to measure their travel impacts and, in some cases, claims to be a ‘carbon neutral business’ may
mean that such initiatives will be used.
Question 2.
Several local governments have introduced policies to reduce the level of visual pollution
caused by tourism. Discuss the benefits of introducing such as policy.
Answer Guide
Improving the 'look' of the destination can add to the appeal. This can also appease the local
population who may feel tourism development has despoiled the area. Improving the visual
appearance means that images used to promote the destination can also be improved.
47
Question 3.
Do you think attitudes towards sustainability and tourism have changed over the past 10 years?
What are the reasons for your view?
Answer Guide
It may seem that there is greater awareness of the environmental problems and of the desire for
sustainability. However, this is perhaps not backed up with actions, particularly in the mass-
market travel sector.
Assignment 1.
Using carbon emissions calculators available online, compare the different results for a return
flight from London to New York. Discuss the different costs provided to offset this journey and
summarize the many different projects available to offset the carbon emissions.
Answer Guide
Discussion may note the differences in estimated cost to offset emissions. Differences may be a
reflection of the projects being used to offset and may be a reflection of the cost to run such
projects. Projects may include environmental initiatives such as tree planting, but also may
include projects to help communities access power or water via wind turbines, etc. Some
projects are encouraging the use of power which is environmentally less damaging than that
produced by fossil fuels.
Assignment 2.
Investigate the negative impacts of tourism on flora and fauna and write a short magazine article
which attempts to persuade tourists that they need to consider these impacts when they take
holidays.
Answer Guide
Examples of the impact can be, damage through walking or construction. Consider plant life as
well as animals. Species can be lost as human encroachment can interrupt breeding. Damage
can be caused by campfires, littering, noise, etc. Tourists need to consider the impact of their
actions, otherwise, the very appeal of a destination may be lost if the beauty and wildlife are lost
for future visitors.
48

examples
socio-economic and environmental effects of disasters: Tourism
http://siteresources.worldbank.org/INTDISMGMT/Resources/tourism.pdf
Tour Operators Initiative for Sustainable Tourism Development, http://www.toinitiative.org/
United Nations Environment Programme: Tourism , http://www.unep.fr/scp/tourism/
49
Part 2
The travel and tourism product
50
CHAPTER 8
The structure and organization of the travel and

tourism industry
 identify the integral and associated sectors of the travel and tourism industry
 explain the chain of distribution and how this applies within the industry
 understand the relationships between each industry sector
 be aware of the extent of integration within the industry and the reasons for this
 identify the factors leading to change within the industry and predict likely directions it may
take in the future.
2. Key areas
 The tourism chain of distribution
 Producers, wholesalers, retailers, ancillary providers
 Common interest organizations
 Horizontal and vertical integration in the tourism industry
 The impacts of integration
EXAMPLE: Are there changes ahead for BAA?
Control of BAA passed into the hands of Spanish construction company Ferrovial in the
summer of 2006 when it acquired over 80% of BAA's shares. BAA currently operates six UK
airports, having sold Gatwick airport in 2009, for £1.5 billion. The airports operated are
 Heathrow
 Stansted
51
 Glasgow
 Edinburgh
 Aberdeen
 Southampton.
This dominance of both the London and Scotland airport sectors has brought BAA to the
attention of the Competition Commission.
Following an initial review early in 2008, the Competition Commission announced that its
initial thoughts tended towards the view that ‘common ownership of the BAA airports is a
feature of the market that adversely affects competition between airports’ (Competition
Commission, 2008). It therefore concluded that – despite the sale of Gatwick airport – BAA
must sell Stansted and either Edinburgh or Glasgow airports.
One aspect of privatization of key infrastructure, such as airports, is that owners may be
overseas companies. Should the national government be concerned about such foreign
ownership?
Foreign ownership may raise a concern in times of difficulty (for example, if there are extreme
weather conditions, the company may place profits over function and limit response – though
this is, of course, true for national as well as foreign owned companies). It is possible to deal
with such issues by establishing legislation, service level agreements or key performance
targets.
Across the European Union restricting trade is limited and once in the private sector it is almost
impossible to restrict ownership. Therefore, the decision perhaps should focus on whether such
infrastructure should be under private ownership at all.
EXAMPLE:
The Whitsundays region comprises 74 islands in the heart of the Great Barrier Reef, off the
east coast of Australia. Attracting almost 3/4 million tourists annually, this popular destination
is supported and promoted by the regional tourism organization, Tourism Whitsundays.
The responsibilities and activities of the organization are wide-ranging and include:
 destination marketing – both domestically and internationally through attending expos,

providing familiarization tours and developing advertising campaigns
 liaison with local industry to develop the tourism infrastructure, ensuring the quality,
capacity and experience for visitors are maintained
52
 developing the region as a business tourism destination through the Whitsundays

Convention Bureau
 providing a visitor information and booking centre.
Tourism Whitsundays is a not-for-profit organization funded by the state tourist board

(Tourism Queensland), the regional council and through membership. Members of the
organization must adhere to a code of conduct and are encouraged to partner with other
members to support the industry and develop new opportunities. With more than 250
members, drawn from a variety of sectors – transport, accommodation, tour providers,
catering, media and, importantly, community clubs and groups – this organization works with
many who benefit directly and indirectly from tourism. To accommodate this diversity,
different types of membership level are offered, with benefits and support differing
accordingly.
Type of membership Business type Cost per

annum (2010)
Non-tourism business Non-tourism business with indirect tourism $540
benefit
Entry level tourism Small to medium business with direct benefit $1,080
from tourism
Domestic tourism Australian market focus – tourism business $1,860
wishing to have active involvement in national
marketing
Introductory One year only – introduction to international $2,160
international tourism marketing – ‘a toe in the water’
International tourism Australian and international market focus – $3,840
tourism business with involvement in national
and international markets
Gold tourism Large tourism business, active marketers and $12,000
industry leaders
Platinum tourism Very large tourism business, active $30,000
marketers, industry leaders and champions
for the region
Friends of Tourism Individuals who support Tourism $74
Whitsundays Whitsundays' efforts
Associate For not-for-profit community organizations free of charge
Out of region Tourism businesses outside of the Tourism $174
Whitsundays region
Source: Tourism Whitsundays, 2011
53
Why is it important for this organization to offer a membership scheme for local tourism
businesses? Why have so many different types of membership?
By offering a membership scheme the organisation can earn revenue to fund its varied
activities. The membership scheme also encourages local businesses to get involved with this
organization, working together to enhance the local tourism industry.
The membership scheme can also reflect their status as the local body responsible for
coordinating tourism. This can increase awareness of their activities among member
companies.
The many different types of membership on offer reflect the fact that tourism can be served by
many different sectors, to many different markets and by many different scales of business.
The different levels of membership also acknowledges the extent to which tourism companies
may want involvement in the marketing activities of the Tourism Whitsundays organization.
Question 1.
Why are some tourist attractions owned by the state and funded by government grants?
Answer Guide
The government may own attractions because they are of national or state significance. The
government may have inherited them and now have a responsibility to manage them.
Attractions such as museums, state palaces or even statues may be managed by government. In
addition, the government may have constructed attractions as part of a development plan to
bring tourists to an area. These may have been developed as a catalyst to encourage further
development. Government may also provide grants when attractions offer something of value to
the population (as is the case with museums and historic buildings).
Question 2.
Several professional bodies, such as the Tourism Society, Meeting Professionals International
(MPI) and the Chartered Institute of Logistics and Transport (CILT) now offer discounted
membership to students studying related subjects. How might a student benefit from joining
their professional body? How does the organization benefit from encouraging students to join?
54
Answer Guide
Students may benefit from joining because they may:
 Receive information and newsletters about the industry and any changes occurring.
 Have the opportunity to attend events and hear from key speakers as well as participate in
discussions.
 Be able to network and gain contacts with industry professionals whom they may be able to
do business with in the future.
 Hear of new ventures which can lead to employment opportunities.
The organization benefits by gaining new members who may go on to become full members.
The organization can also benefit from hearing the views and perspectives of the younger
generation.
Question 3.
Why might different producers, such as attractions and hotels, work together to promote, market
and manage their destination?
Answer Guide
The organizations can benefit from shared costs. However, they can also benefit by showing
potential customers the variety of attractions in the area and the range of amenities which can
meet their needs. In working together to manage the destination they can also protect the
resources required by tourists. They can ensure a balance of facilities is provided which meet
the needs of visitors. They can also encourage longer dwell times.
Assignment 1.
Investigate a destination organization of your choice. Write a report which explains the goal of
the organization and list the many different activities undertaken by the organization. Identify
how the organization funds its activities and operation and discuss the implications of this.
Answer Guide
Activities may include:
 Encouraging local companies to work together.
 Providing marketing activities (organizing brochure production, providing a website, etc).
55
 Lobbying government to support the industry or assist in local issues.
 Arranging training for local industry managers.
Funding may be through government grants, membership fees, sponsorship, sale of materials
(such as brochures), sponsorship or advertising charges.
Assignment 2.
Explain the difference between horizontal and vertical integration. Provide examples of both
forms of integration. Discuss whether the expansion of the internet will influence whether these
two types of integration will continue to occur.
Answer Guide
Horizontal integration takes place between companies at the same level of the chain of
distribution – for example, a tour operator integrating with another tour operator. Vertical
integration takes place when a company takes control of a business at a different stage of the
chain of distribution. For example, a tour operator taking control of an airline is (backward)
integration while tour operator taking control of a travel agent would be (forward) integration.
The internet may influence vertical integration as producers and intermediaries can reach some
customers directly and thus have less need for support further forward in the chain. However,
there is limited evidence that the internet will discourage growth via horizontal integration.

examples
Brackenbury, M (2004) Has innovation become a routine practice that enables companies to
stay ahead of the competition in the travel industry?, http://www.oecd.org/dataoecd/
55/34/34267968.pdf
European Commission (2009) Study on the competitiveness of the EU Tourism Industry

http://ec.europa.eu/enterprise/sectors/tourism/files/studies/competitiveness/study_on_tourism_c
ompetitiveness_2009_en.pdf
Pearce, D; Tan, R & Schot, C, Distribution channels for Urban Tourism, http://www.linkbc.ca/
torc/downs1/DistributionChannelsforUrbanTourism.pdf
56
CHAPTER 9
Tourist destinations
 understand the complexity of the destination as a tourism product
 recognize the importance of the image and the brand in destination marketing
 distinguish between different categories of destination
 understand the appeal of each form of destination
 explain why destinations are subject to changing fortunes.
2. Key areas
 Defining the destination
 Destination image
 Destination typologies
 Coastal tourism
 Urban tourism
 Medical tourism
 Rural tourism
 Waterscapes
 Island tourism
 Design of the destination
 The influence of the media
 Destinations of the future
57
EXAMPLE: Developing the image of South Africa
Hosting the soccer World Cup in 2010 provided a significant opportunity for the brand
development of South Africa. With US $5 billion invested in stadium and infrastructure and a
further $100 million spend on a marketing campaign promoting the country across the globe,
the economic returns were clearly important. However, of greater long-term significance was
the potential to improve the nation brand.
While football dominated TV coverage, diverse tourism attractions were also publicized to a
global audience– including the country's unique gastronomy, quality wines, entertainment in
theatres and local taverns, and the more traditional attractions such as safaris. This provided
interesting opportunities for South Africa Tourism to encourage international markets to
consider South Africa as both a leisure and business tourism destination. Post-event research
revealed that ‘around 89 per cent of tourists said they would consider visiting South Africa
again, while 96 per cent said they would recommend the country to friends and
relatives’(Bezuidenhout, 2010). Image enhancement also had an impact on the local
population, as hosting this major event brought an increased feel-good factor (Zinn, 2010).
The marketing campaign included extensive use of social media. South Africa Tourism
encouraged fans to give a ‘Shout Out’ on Facebook – where good wishes and congratulatory
messages could be uploaded. Tweeting reached a record high of 3,283 per second at the
launch of the World Cup (normal levels were around 750 per second) with several celebrities
posting comments, pictures and videos of their positive experiences of the event and the
country. While such endorsements may provide only short-term benefits, these provided
landmark opportunities for South Africa Tourism to enhance the destination image.
With tourism contributing 7.7% of GDP in 2010, tourism minister Marthinus van Schalkwyk
asserted that the enhanced image developed as a result of hosting the World Cup would
undoubtedly help South Africa, as it sought to double the number of foreign tourists visiting
the country to 15 million a year by 2020 (Roelf, 2011).
To what extent does the increased media coverage play a role in developing the image of a
destination which is hosting a major event?
Media coverage of the event is one of the motivators for hosting an international event.
Provided the event runs smoothly the images can encourage tourism, attract inward investment
and, in turn, enhance civic pride.
Frequently coverage before, during and, occasionally, after the event will show detail of the
local area, its beauty, attractions and culture. This will all enhance the appeal and provide
different markets with reasons to visit.
58
EXAMPLE: Turn off the lights!
The effects of lighting on the turtle population has been well documented – with concerns that,
firstly, brightly lit beaches dissuade female turtles from laying their eggs and, secondly, any
hatching turtles can be disoriented by the lights and fail to quickly find the safety of the
water's edge. Campaigners across the globe are trying to protect the turtles by encouraging
beachfront hotels and bars to reduce the amount of lighting they use at night.
One advantage of turning off the lights is the opportunity to attract the ‘dark-sky’ tourism
market. Destinations which have environments with little or no light pollution make great
places to view the stars and planets in the night sky. One example is ‘Dark Sky Scotland’, an
initiative, led by the Royal Observatory Edinburgh, which includes providing training
workshops for tourism businesses, so they can help ensure visitors have a greater appreciation
of the night sky.
From Scotland in the north we move to the south of the UK – the Channel Island of Sark has
become the first ‘dark-sky’ island in the world. The island has made efforts to reduce any light
pollution, although as there are no street-lights and cars are banned, the island was already a
dark place at night. The island is expecting to benefit from the increased interest in astronomy,
and this designation should help to attract visitors outside of the popular summer months.
‘Dark-Sky’ tourism is a fairly recent initiative. To what extent would this form of tourism
conflict with others already established at a destination?
Balancing the demands of different users may be difficult if dark-sky tourism is operated. It
requires little light pollution and as a consequence areas will remain unlit or have only low
levels of lighting. If the existing market requires an exciting night-time economy (bars,
restaurants, music clubs, etc) this may cause conflict. However there are possibilities to attract
dark-sky tourists to remote areas while allowing cities and towns further away to have lighting
without impacting on the dark-sky area (as is highlighted in this case with regard to Scotland).
The daytime tourism markets are unlikely to be affected – it may be possible to establish dark-
sky attractions which provide information and entertainment to all markets during the day.
Question 1.
How do the characteristics of the tourism industry differ in rural tourism destinations when
compared to urban tourism destinations?
59
Answer Guide
Characteristics can include:
Urban Tourism Rural Tourism

Little open space Much open space
Densely populated Sparsely populated
Workers may live far from workplace Natural environment
Rarely influenced by seasonal factors Many outdoor activities
Professional management Diversity of attraction
Broad marketing activities Infrastructure – weak
Many indoor activities Base of industry consists of small establishments
Strong entertainment/retail base Locally owned businesses
Much part-time tourism
Workers often live close to work place
Amateur management
Niche marketing/unsophisticated marketing
Strong seasonality
Question 2.
The wedding of Prince William and Kate Middleton, in May 2011, brought an estimated 8,000
journalists, photographers and media crew to London. More than 100 outside broadcast teams
from across the globe provided TV coverage throughout the week leading up to the marriage,
and at its peak, TV coverage was predicted to reach 2 billion people. London basked in
unseasonably warm, sunny days and many iconic buildings such as Buckingham Palace and the
Houses of Parliament featured in many of the images published. To what extent do you think
this event will bring tourism to London in both the short term and the longer term? What types
of tourist may be attracted because they viewed the press coverage of this event?
Answer Guide
In the short term the images of a beautiful city may encourage first time visitors. It may also act
as encouragement to action for those pondering a return visit. The types of visitor may include
those who wish to engage in cultural activities. It may also encourage visitation by a younger
generation interested in the celebrity lives of the married couple and their friends. In the longer
term, this event is likely to be overshadowed by many others (e.g. the London riots in August
2011) which will affect image.
If the press felt positive about their own experience in London, other articles, reviews and
positive reports may help to sustain enthusiasm for London.
60
Question 3.
Water features prominently in most types of destination, with tourists often prepared to pay a
premium to have a sea or lake view. Why might it have such an appeal?
Answer Guide
Water can appeal because it can suggest a sense of calmness and tranquillity. The colours and
reflections can change with the time of day and season, thus adding interest. It can provide an
appealing photo opportunity (or Facebook moment). It can also provide leisure opportunities
(swimming, sailing, fishing, etc). Historically, seawater and spa waters were linked to health
and a sense of well-being may still be associated with this.
Assignment 1.
In Table 9.1 we list the top 10 city destinations in the world. Produce a presentation which
identifies the key reasons why tourists are attracted to these cities. Also, identify any reported
problems which may deter tourists from visiting in the future.
Answer Guide
Tourists may be attracted by:
 The range of attractions.
 The range of amenities.
 Convenience of access.
Future tourists may be deterred because of price (if destinations are perceived as expensive), a
tragedy or terrorist attack (though historically visitors have tended to return quickly to popular
city destinations).
Assignment 2.
Choose an urban destination and produce a portfolio of 10 images which highlights the design
of the public realm. For each image, provide a brief statement evaluating whether it is an
example of the public realm enhancing or damaging the tourist experience.
Answer Guide
The statements may consider factors such as
 Quality of the design (imaginative or mundane).
61
 Whether the design suggests uniqueness rather than homogeneity.
 Whether the resources has been damaged through overuse, lack of maintenance, etc.
 Whether the design fits to the surroundings.

examples
Brown, D.M (2008) Rural Tourism: an annotated bibliography, http://www.nal.usda.gov/ric/

ricpubs/rural_tourism.html
Organization of World Heritage Cities, http://www.ovpm.org/en
Tourism New South Wales, Defining Nature-based tourism, http://archive.tourism.nsw.gov.au

/Sites/SiteID6/objLib13/2_defining_nature_tourism.pdf
van Beukering, P., Brander, L., Tompkins, E. and McKenzie, E (2007) Valuing the
Environment in Small Islands - An Environmental Economics Toolkit, http://jncc.defra.gov.uk/
page-4065
Website of International Council on Monuments and Sites available at
http://www.icomos.org/index.php/en/
62
CHAPTER 10
Tourist attractions
 distinguish between a destination and an attraction and define each
 understand what it is that attracts tourists and which attractions appeal to each market
 appreciate the problem for attractions of changing tastes and fashions and propose solutions
to overcome this
 recognize the potential for new attractions and how these can be developed.
2. Key areas
 Defining an attraction
 Iconic attractions
 Heritage and modernist constructions as attractions
 Museums and galleries
 Parks and gardens
 Events as attractions
 Other factors attracting visitors
 Cultural tourism
 Religious tourism
 Shopping
 Gastronomy tourism
 Sports tourism
 Dark Tourism
63
EXAMPLE: The Southern Star, Melbourne
The Southern Star observation wheel was opened in December 2008, and was forecast to
attract 1.5 million tourists to the Melbourne Docklands area. Yet, barely two months later it
was closed following concerns over structural defects. So problematic were these defects that
a decision was eventually taken to dismantle the construction and erect a new wheel, using a
different design. This new observation wheel is expected to be 120 metres in height and
provide views across the central area of Melbourne.
It then took until 2011 to commence the rebuilding, and while the main spokes have been
attached to the wheel hub, an official reopening date has not yet been predicted. Despite its
short life, the closure of the wheel led to a noticeable drop in visitors to the area and its
reconstruction is predicted to give people a reason for visiting the area again (Whitson, 2011).
The benefits of the attraction are believed to be so great for the local area that this AUS $100
million attraction is eagerly awaited.
Several observation wheels have opened around the globe in the past decade or so (London
Eye, Singapore Flyer, Star of Nanchang, etc). Why are many proving to be popular visitor
attractions?
The attractions offer a new way of seeing the urban environment. This may especially appeal
to the tourists seeking to get a picture of the destination from an different vantage point. The
growing interest in taking photographs to post on social media sites may have also stimulated
demand.
These new attractions may also attract demand from visitors who come to the city frequently
and are now looking for a different experience from the ones visited in the past.
EXAMPLE: The draw of Glastonbury Festival
The first festival was held in 1970, with 1,500 people in attendance. Held at Worthy Farm in
Somerset, it has since grown to become a world-renowned music and performing arts event.
Covering an area of 900 acres, and with a perimeter almost 9 miles in length and with over
60 performance venues, the festival caters to the needs of a diverse audience. The Pyramid
Stage attracts top name bands (U2 and Coldplay headlined in 2011) and can accommodate
an audience of almost 100,000. Smaller stages, such as the Other Stage and John Peel Tent
can also cater for audiences in thousands.
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Licensed Glastonbury ticket price Relative price (based

attendance on average earnings)
2009 135,000 £175 £175
2008 134,000 £155 £154
2007 135,000 £145 inc programme £150
2006 No festival – –
2005 153,000 £125 inc programme £140
2004 150,000 £112 inc programme £130
2003 150,000 £105 inc programme £127
2002 140,000 £97 inc programme £122
1995 80,000 £65 (programme £5) £110
1990 70,000 £38 (programme £3) £80.70
1985 40,000 £16 (programme £0.90) £51.40
1981 18,000 £8 £35.10
1979 12,000 £5 £29.90
1978 Informal event – –
1971 12,000 Free –
1970 1500 £1 (inc free milk from the farm) £20.90
It is now so popular that the tickets for the 2011 festival sold out in four hours. To reduce the
likelihood that tickets are purchased by touts hoping to make a quick profit, all attendees are
required to complete a photo registration process, which provides a unique reference number
required when purchasing tickets.
On the back of Glastonbury's popularity, hundreds of different music festivals – with themes
including jazz, classical, folk, opera, early music, indie and rock are operating annually
across Britain, with Bestival, Latitude, V festival, Hop Farm and Port Eliot all drawing large
crowds. However, the rapid growth of provision of festivals has seen some struggle to attract
enough festival-goers, or meet police security requirements, and as a consequence many
have been cancelled. To put this into context, the efestivals guide (www.efestivals.co.uk)
listed over 900 festivals taking place in Britain during 2011 but identified 40 which were
cancelled for various reasons during the year.
Why has Glastonbury Festival become so popular? More recently other festivals had to be
cancelled. What might be the reason for this?
The festival has now grown in size and offers a variety of music and other acts to appeal to a
diverse audience. It has also gained a reputation for being a festival to be seen at (with
fashion, film and music celebrities frequently attending).
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There has been a rapid increase in number of festivals offered (perhaps on the back of the
success of Glastonbury) and this has led to oversupply. The economic downturn may mean
that there is less disposable income available to spend on festival tickets and travel.
It may also be the case that some have failed because they don't appeal to a substantial
market interested in repeat visits.
Question 1.
Do you think being a UNESCO World Heritage Site is important in attracting all types of visitor
to a historic location? What factors may influence whether the visitor will come to the site more
than once?
Answer Guide
The denoting of a WHS can aid reputation which may attract some tourists (particularly those
interested in culture and heritage). It may also attract tourists who are in the area to make a visit
to the site. Other tourists may be seeking alternative forms of activity while on holiday
(socialising with family, rest and recuperation, sporting activity, etc) and for these the site
would not appeal. Factors encouraging multiple visits may be:
 The size of the attraction (larger sites may not be explored sufficiently in one visit).
 The complexity of the information available (a visitor with a keen interest in the topic may
wish to visit several times to gain a comprehensive education in the topic).
 Visitor passes, which allow multiple visits at no additional cost, may encourage domestic
tourists as well as locals to consider visiting.
 Events at the site may bring visitors back at particular times.
Question 2.
As we highlighted in the chapter, there are many battlefield sites which are popular locations for
tourists to visit. Is it right to use the sites where people have lost their lives as a tourist
attraction? What factors may help to make this a more acceptable decision?
Answer Guide
This form of tourism is known as 'dark tourism'. There are debates about the use of sites where
tragedies occur, but the sympathetic use of such sites can bring income, helping to fund
maintenance and protection of the resources. It can also fund educational programmes to widen
understanding of the tragic events. It may also be the case that tourists would visit regardless of
whether an attraction is provided and so the impacts of these visitors need to be controlled and
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managed. Acceptability may lie in the way in which the site is developed and operated.
Balancing the need for commercial viability, while at the same time avoiding insensitive over-
commercialization, may prove a challenge. Charging admission may influence views on
acceptability of commercial development. Furthermore the approach to interpretation (e.g. the
use of interactive technology and media to entertain) may also influence opinion.
Question 3.
Why does the Disney theme park empire receive so many more visitors than any of its rivals?
How might its competitors try to grow their share of the market?
Answer Guide
The Disney empire has obtained a reputation for entertainment and thus many people are aware
of what is on offer. Tourists will plan their visit around the Disney entertainment (forming a key
reason for visiting rather than being an attraction discovered once at the destination). The
animated films, merchandizing and shops located in cities around the work all support the
Disney brand, thus acting as a reminder of the existence of the parks. The parks themselves are
vast and thus attract visits lasting multiple days.
Assignment 1.
Visit a tourist attraction and identify the variety of ways in which technology is being used to
enhance the experience of the visitor. Prepare a presentation of this information, using audio and
visual materials to support your findings.
Answer Guide
Technology may be used to provide entertainment, visual information (e.g. touch screens or
video broadcast) or manage queuing and ticketing. Smartphone technology may also be used to
provide guides and interactive apps. Enhancement of the visitor experience may be through
stimulating a range of senses including sight, hearing, touch and (in some, albeit less common,
cases) smell.
Assignment 2.
Working in groups, develop some innovative ideas for a new tourist attraction to be opened in
your town or city. Select your best idea and write a report explaining why you think this
attraction is best suited to being developed at this destination. Provide a summary of the
characteristics of the tourists who are likely to visit. Would this attraction charge an entry fee?
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Answer Guide
To inspire ideas students should consider:
 Existing attractions which they found entertaining and which could be adapted.
 The history and resources in the locality which could inspire an attraction (e.g. Local
heritage).
 Whether technology provides a new opportunity for an interesting visitor experience.
 Characteristics of visitors may note demographics, lifestyle characteristics, group type

interests. It may also draw on some of the typology discussions of Plog, Smith, Cohen, etc.

examples
Association of Leading Visitor Attractions in the UK (good source for statistics) available at
www.alva.org.uk
Attractions Management magazine, with news for industry available at www.attractions.co.uk
Coy, J (2008) Emergence of Adventure Sports Resorts: Why Are Hotel Waterparks Getting
Bigger?, http://www.ishc.com/uploadedFiles/PublicSite/Resources/Library/Articles/adv_sports
resorts.pdf
Department of Industry, Tourism and Resources, Australia (2004) Economic impacts of the
Rugby World Cup on the Australian economy – post analysis, http://fulltext.ausport.gov.au/
fulltext/2004/feddep/FinalEconomicImpactOfRWC2003.pdf
Institute for Dark Tourism Research, available online at http://www.dark-tourism.org.uk/
The International Association of Amusement Parks and Attractions. Access to global information
for the industry available at www.iaapa.org
OECD (2007) Climate Change in the European Alps: Adapting Winter Tourism and Natural
Hazards Management, http://www.oecd.org/dataoecd/25/40/37909236.pdf
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C H A P T E R 11
Business tourism
 understand the principal sectors of the business tourism industry and distinguish between
them
 explain the objectives of the different types of meetings that may be organized, the various
venues in which they take place and the roles of meeting planners
 define incentive travel, compare it with other forms of workplace rewards and demonstrate
awareness of the challenges of organizing successful incentive travel programmes
 distinguish between trade fairs and exhibitions and understand the roles of those companies
that supply services to this sector of business tourism
 understand the principal motivations behind individual business travel and appreciate the
factors that companies take into account regarding the features of the business trips made by
their employees
 understand the main trends that are having an impact on business tourism in the early
twenty-first century.
2. Key areas
 The history and characteristics of business tourism
 The meetings sector
 The incentive travel sector
 The exhibitions and trade fair sector
 The individual business travel sector
 Trends in business tourism
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EXAMPLE: Hilton Hotels
Hilton Hotels' Hilton Meetings brand is designed to provide personalized meeting services that
enable clients to hold successful and hassle-free meetings for groups of 50 guests or fewer.
Hilton Meetings was created in 2000 at Hilton hotels in Britain and Ireland and gradually
expanded globally, finally being introduced to the majority of Hilton hotels in North America
in 2008.
Hilton business clients can choose between a formal boardroom setting and flexible
multipurpose room for their small meetings. These well-designed layouts are complemented
by guaranteed standards of Hilton Meetings service and amenities that aim to minimize the
environmental impact while offering time-saving technology and consistent personalized
service.
Hilton Meetings guests have access to fresh and contemporary meeting spaces with high-
quality furnishings, local artwork to help stimulate creativity and advanced technology to keep
guests plugged in. All rooms include a 3M ™ Digital Easel that instantly records flipchart
content electronically into a variety of formats for Mac and PC computers and enables
collaboration with participants in multiple locations via a shared meeting application. Radio-
controlled clocks, keeping accurate local time, help keep guests on time, while high-speed
internet connectivity keeps guests connected.
Tables are designed with built-in table-top power and data points for easy connections and
chairs offer extra comfort with their padded armrests and lumbar support. Meeting rooms also
contain a refrigerator and safe that can hold at least four laptops, have doors that lock for
added security and outside-in spyhole viewers to minimize disruption.
Dedicated meetings specialists are assigned to each Hilton Meetings room to assist with
individual service needs. A ‘Service Connect System’ button links guests directly with their
meeting specialist. Each meeting planner receives a welcome kit containing specific details
about their event, the hotel and the meeting space and a welcome wallet holding lunch and
break menus. Hilton also serves meeting participants food and beverage items specifically
selected to help boost their energy and keep their minds sharp (such as peach smoothies or
mini shish kebabs with lemon yogurt sauce) along with complimentary tea and coffee served
all day.
Hilton's e-Events online group booking tool, Guest List Manager and Personalized Group Web
Page features allow event planners to easily book their group event or meeting and promote
their event to attendees.
The Hilton Meetings products reinforce Hilton's commitment to environmental sustainability.

The hotelier has reduced the use of chrome in meeting room furniture and fixtures and is using
sleek hard surfaces for tables to eliminate the need for linens and the chemicals used for
cleaning them. To further support the brand's efforts to increase local sourcing, artwork
featured in rooms is acquired from local artists.
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Hilton Meetings is also fully supported by new online event management and meeting
planning tools, which helps to reduce paper waste. In-room signage provides guests with tips
on how to be an environmentally sensitive meeting participant, such as turning off the lights
before leaving the room and recycling paper when it is an option. Also, rooms include eco-
friendly meeting materials made from recycled paper and biodegradable ink. These materials
are placed on self-service stands to eliminate full place settings of notepads and pens, which
often create unnecessary waste. To further attempt to reduce waste, notepads contain lines on
both sides of each page.
Why is it so important for hotels to attract business meetings to their venues?
Business meetings can bring in income through the rental of meeting room space. This space
is provided to attract the business customers to stay in the hotel. The high value of such
customers, in terms of room rates and discretionary spend can be important for the hotel.
This can also attract business events such as corporate parties or product launches.
The meetings may bring visitors to stay in the hotel at times when leisure customers may not
be seeking accommodation.
EXAMPLE: The advantages of incentive travel and cash
Advantages of incentive travel over cash
 Employees spend time with each other, at leisure. This informal networking offers them the
opportunity of getting to know each other better, which in turn can help create a stronger
team spirit when they return to work, having shared a number of enjoyable and memorable
experiences together.
 For the few days of the trip, the company has an opportunity to inculcate ‘company values’
into some of its most productive employees. Pep talks are a common feature of incentive
trips – motivational speeches praising the incentive travel winners for their hard work and
extolling the qualities of the company they work for. This is one of the management
techniques employed by companies to reduce staff turnover and, in particular, retain those
employees who make the most valuable contribution to their company's profitability.
 Incentive travel is more effective than money at encouraging non-winners to try harder to
win the next competition run by their company. The incentive travel winners' absence from
work and their subsequent return, full of stories of what they have seen and done on their
trip, make this a highly visible prize, as opposed to money, which is far less likely to be
discussed with colleagues. Non-winners can be motivated to work harder to win next time
when they hear their colleagues recount their incentive trip experiences.
 As incentive trips offer those who participate in them the opportunity to relax and/or engage
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in physical pursuits, it means that they tend to return to work refreshed and rested, and this
boost to their well-being can be beneficial to their performance in the workplace. At the
same time, it is undeniable that the use of cash awards offers its own advantages, when
compared with sending high-achieving staff on incentive trips.
Advantages of cash over incentive trips
 Low risk. Cash awards are attractive by the very nature of their simplicity. Money is always
welcomed by the recipient, but the participant's response to an incentive trip is less
predictable. Poor weather, the wrong choice of incentive destination or disappointing
accommodation are among the factors that can turn what should be an enjoyable,
motivating reward into its opposite.
 No loss of productivity. When some of the company's highest-performing members of staff

are absent from work for several days, enjoying an incentive trip, the impact on the
company's profitability can be considerable. With cash awards, the winners continue to
work and there is no negative impact on the company's sales figures.
 Flexibility. The employee in receipt of a cash bonus for meeting a demanding sales target,
for example, can spend the money on whatever he/she wishes or needs. This could be, of
course, a holiday or short break, in which case the tourism industry benefits from the
spending of this award, but it could equally be spent on home improvements, repairs to the
family car or simply invested in a savings account.
 Finally, in an era when attention is increasingly being focused on employees' work-life

balance – the balance between the time they spend working and the time they spend with
friends and family – it is widely recognized that awarding an incentive trip, however
luxurious, as a prize for high achievement at work does mean that the participants are
automatically obliged to spend additional time away from home in order to take part in the
trip. This may not always be welcomed by employees, particularly those who already find
themselves spending evenings away from their friends and families, travelling on company
business. Cash bonuses, therefore, can be a more motivating prize for such employees.
What factors would you need to consider when designing an incentive travel trip – to ensure it
really acts as an incentive?
The trip must appeal to those seeking to compete for the reward. This means that it may need
to include activities which are unusual or difficult to access, in order to appeal.
It may be necessary to appeal to the family or friends of potential travellers who may be
expected to arrange to travel as their companion. They must also accept that, if extensive
effort is required to achieve the incentive, perhaps to the detriment of family time, then it must
appeal enough to justify the additional pressure.
The perceived value of the travel must also be significant, and in excess of the usual travel
expenditure of those being incentivised.
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Question 1.
Identify as many differences as you can between leisure tourism (holidays, short breaks and day
trips) and business tourism. Think in terms of those who travel for leisure and those who travel
on business; who pays for the trips, when leisure trips and business trips take place, what types
of destinations are used for business and leisure tourism, who decides on the destination and the
lead time (the period of time leading up to the trip, planning it and so on) for business and for
leisure tourism.
Answer Guide
Students may consider:
Leisure travel is often in groups/families while business travel may be solitary (occasionally
with work colleagues) although some travel may involve meeting with others at the destination.
For business travel costs are usually borne by the employer, balancing cost against business
benefit. Leisure travellers may be more cost-conscious as it is paid by the individual/family.
Business trips are often to urban locations, where trade takes place. Leisure travel may be to
urban locations but also include rural and resort locations.
The leisure traveller decides on the location while the business traveller must go where business
requires (this may be the location of a conference, meeting or exhibition).
Leisure travellers may book several months in advance, while business travel can be planned
weeks or even days in advance of travel. The business traveller may require more flexible travel
arrangements to accommodate the business activities.
Question 2.
It is often claimed that videoconferencing (or teleconferencing) technology will largely obviate
the need for delegates to travel to face-to-face meetings. Give as many reasons as possible in
favour of, and against, replacing face-to-face meetings with videoconferences.
Answer Guide
Pro using video/tele conferencing:
 Reduce travel costs.
 Reduce environmental impact of travel.
 Reduce time out of the office of the business traveller.
 Business traveller may prefer to spend more time at home with family rather than travelling.
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Against video/tele conferencing:
 Face-to-face meetings can help develop business relationships which may ensure greater
success.
 Other business opportunities may be spotted during the casual discussions which take place
outside of formally arranged meetings.
 Misunderstandings may occur when other signals such as body language cannot be seen.
 Technology may fail, meaning that the conference is interrupted.
The business person may prefer to be out of the office so uninterrupted time can be given to the
meeting.
Question 3.
Put yourself in the position of someone wishing to buy a new laptop computer. You could find
the ideal computer for yourself by visiting computer shops, computer websites and shopping
online, ordering manufacturers' catalogues and browsing through them, or you could travel to
visit an exhibition of computer manufacturers' products. What, for you, would be the advantages
of visiting an exhibition in order to find your perfect laptop?
Answer Guide
Advantages may include:
 Chance to examine the product and discuss the specifications with experts.
 Chance to examine a range of products – some which may not, otherwise, have been
considered.
 It may be possible to negotiate a discount or upgrade if ordered at the exhibition.
Question 4.
Many people travelling frequently on business on behalf of their employer earn valuable
airmiles when they fly to their destinations. Currently, employees get to use those airmiles for
themselves. Discuss the rights and wrongs of this situation. What arguments can be made in
favour of the airmiles accruing to the business travellers' employers?
Answer Guide
The individual is the one who actually has to travel on the flight and suffer any inconvenience
caused by flight delays. The traveller also may spend time away from family and friends so this
provides an opportunity to reward those people with trips with the frequent flyer.
One of the biggest justifications for the employer earning the points is that they pay the tickets.
It may also encourage the company to be loyal to an airline in order to gain enough points to be
74
able to claim flights (which could be used for business flights but given that business travel is
booked last minute, it is more likely that the points would have to be used as employee rewards
with longer booking times).
Assignment 1.
More and more business travellers are female and there is a growing number of websites
designed for women travelling alone on business. Visit as many of these websites as you can
and write a report summarizing the advice that they offer. What innovations have hotels
introduced in order better to serve this segment of their client market? Do all female business
travellers want to be treated differently from their male counterparts?
Answer Guide
Advice may include:
 Check the credentials of any person providing airport collection.
 Avoid holding business meetings in a hotel room.
 Avoid leaving drinks unattended (including coffee) as these can be spiked.
 Check the room locks work, before unpacking.
 Make sure hire cars have sufficient fuel and remove all obvious signs that it is a hire car,
such as advertising literature.
 Always make sure to let family or work colleagues know who is being met, where, and
expected return time.
 Be aware of local customs with regards to dress and appearance, to avoid offence and
unwanted attention.
 When leaving events remove security or name badge.
 Make sure the hotel room number is displayed, rather than announced, to protect security.
Use an authorized taxi or licensed minicab. (advice edited from www.maiden-voyage.com).
Assignment 2.
Use the internet to find the conference centre and the exhibition centre that are situated closest
to where you live. Carry out the necessary research to identify three major conferences and three
major trade shows being held in these venues during the month in which you undertake this
assignment.
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Answer Guide
Research should perhaps comment on the difference between the events. It may also identify
when they run (and time between events). This may acknowledge the need for set-up/close-
down time between events.

examples
Industry Trends and Market Share Report, available at
http://content.yudu.com/A1usv2/EIBTM-2011-REPORT/resources/index.htm?referrerUrl=http
%3A%2F%2Fwww.eibtm.com%2F
Visit Scotland (2010) Business Tourism Trends, http://www.conventionscotland.com/

cs/content/mediaassets/doc/Business%20Tourism%20Trends%20-%20August%2020102.pdf
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CHAPTER 12
The hospitality sector: accommodation and

catering services
 explain the structure and nature of the hospitality sector, distinguishing between the various
categories of tourist accommodation and catering services
 describe how accommodation is classified and be aware of the problems involved in

classification
 understand the nature of demand for accommodation and catering and how the sector has
responded to changing patterns of demand over time
 understand the relationship between the hospitality sector and other sectors of the tourism
industry.
2. Key areas
 Structure of the accommodation sector
 The corporate chains
 Budget and super-budget hotels
 Character properties
 Classifying and grading accommodation
 The demand for accommodation
 Characteristics of the hotel product
 Distribution
 Environmental issues
 Tourism catering
 Future developments in hospitality
77
EXAMPLE: Franchising the brand
The business module of Intercontinental Hotel Group (IHG) uses three types of operational
approach: franchised (by far the most significant sector of their business), managed and
owned. Each type of approach requires different levels of resource – summarized in Table
12.2.
Table 12.2 IHG hotels
Franchised Managed (639 hotels) Owned (15 hotels)

(3,783 hotels)
Ownership Third party Third party IHG
Marketing IHG IHG IHG
Staff Employed by third party IHG usually supplies Employed by IHG
general manager (and
occasional other senior
managers)
Level of capital None Low/none High
investment by IHG
Income earned for IHG Fee – % of room revenue Fee – % of total hotel All revenues and profits
revenue plus % of profit
Source: IHG, 2010
As we can see, franchising requires little capital investment and no human resource
management. As a consequence, it provides an effective way to grow the brand quickly and
with limited financial risk. Of course, establishing the brand and developing the franchise
guidelines to ensure that consistency and quality are maintained is a key responsibility of the
franchisor, in this case IHG.
Why might a hotel owner choose to become a franchisee of the IHG? Are there any concerns
the manager should consider before purchasing the right to be a part of the group?
Benefits for the hotel owner include:
 Access to existing strong, brand name.
 Wide spread advertising/marketing will help to promote the hotel.
 The franchise will have a proven business model, with efficiencies in purchasing and other
areas.
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 Training, research data and other support will be readily available.
Concerns may be:
 Loss of control over operational activities.
 Cost of purchase of franchise.
 Impact of other franchisee holders on the hotel's business.
EXAMPLE: Hotel development in London
As host of the Olympics in 2012, London experienced a boom in hotel development. Local
authorities were encouraged to relax planning rules as part of the desire to expand and
improve the capital's bedstock. Between 2010 and 2013 almost 15,000 new rooms were
expected to be developed, with three classifications dominating – over 8,000 rooms of 5-star
and 4-star rating were due to come onstream, and a further 3,000 budget rooms were forecast
to be built (Visit London, 2010).
The increased supply is much needed. Demand for centrally located rooms is so great that
hotels can maintain high prices – 2009 saw average room rates of £156.91 (O'Brien, 2011).
The Olympics and Paralympics last just over one month in any destination. Should new hotels
be built for this event? What do you predict to be the long-term future for the hotel sector in
London, given the increase in bedstock?
Historically, the number of hotels at Olympic destinations has grown prior to the event while
occupancy rates, although often high, are rarely at a maximum. The increase in capacity does
encourage greater competition, both during the event and afterwards. This competition can
encourage improvements in hotel quality (in fact, in London efforts have been made to
encourage the budget hotels to improve their quality standards and get accreditation as part of
the Olympic preparations).
After the event there may be a decline in the room rates achieved by hotels but, interestingly in
the case of London, rack rates have traditionally been relatively high so this increased
competition may just serve to make London a more competitive destination in Europe.
Question 1.
What factors might influence whether a tourist chooses to stay in a chain hotel rather than a
locally owned independent hotel of the same rating?
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Answer Guide
Tourist may be psychocentric in nature and seek the familiar. They may be a member of a hotel
loyalty scheme. The hotel may be considered to be in a better location (often linked to a key
reason for visiting). The tourist may have found it easier to book the chain hotel (perhaps using
online systems rather than e-mail or telephone). They may not have been aware of the
independent hotel or may not trust the hotel (quality, reliability, etc). The independent hotel may
not have had the same range of facilities.
Question 2.
We discussed in this chapter the concept of ‘glamping’ – glamorous camping – which has
grown in popularity over the past five years. Do you think this popularity can be sustained in the
long term?
Answer Guide
Growth has been attributed to recession (offering lower cost accommodation), celebrity interest
and fashion. It may be sustained by an interest in the environment, but economic improvement
is likely to bring a decrease in demand.
Question 3.
What factors influence whether hotel guests choose an all-inclusive catering package, whether
they choose room-only accommodation, or something between these two extremes?
Answer Guide
Factors may include:
 The price of local food and drink (versus the additional cost of including catering up front).
 The availability of catering locally (the variety of restaurants).
 The reason for staying at the accommodation (e.g. a business traveller may not want all-
inclusive if business lunches and dinners are planned while a leisure traveller may be
staying in the area to see family so may not need catering).
 All-inclusive or half/full board may be more convenient for some travellers, especially if
concerned over price. All-inclusive may appeal to families on a budget, which would allow
the children to access drinks, snacks, etc at their convenience, without adding to the overall
cost of the holiday.
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Assignment 1.
In groups choose two hotels, one which should have more than 50 bedrooms and one which has
less than 20 bedrooms. Interview the manager of each hotel to find out what are the key
problems facing the hotel today. Compare and contrast the findings from these two interviews
and present them to your colleagues.
Answer Guide
Areas which may be identified include:
 Occupancy rates.
 Room rates and achieved earnings per room.
 Demand to use other spaces (such as meeting rooms).
 Changing demands of the customer (expectations on facilities, quality and services).
 Increasing costs (food, energy, wages, etc) against market demand for lower prices.
 Staff retention (reducing churn).
Assignment 2.
Investigate the different loyalty schemes offered by hotel chains to identify the benefits of being
a member. What is the value of the rewards in relation to the necessary spending? Do you think
these membership schemes encourage repeat business?
Answer Guide
Rewards may include free rooms, upgrades, access to additional facilities, later check-out times.
Value is lower relative to spend (many nights are needed to obtain a free night's stay) but
upgrade/late check-out may be appreciated without affecting major levels of spend.
Loyalty may be encouraged but, as with airlines, travellers often are members of several reward
schemes and collect accordingly. Thus only minimum loyalty is really likely.
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examples
American Hotel & Lodging Association (AH&LA) - US-oriented industry statistics, and
information on top hotels available at http://www.ahla.com
Caterer and Hotelkeeper – industry sector research available at http://www.caterersearch.com/

Topics/227/trends.html
ETOA (2010) Olympic Hotel Demand, http://www.etoa.org/docs/olympics-reports/2010_etoa-

olympic-report_update.pdf
Hospitality, hotel and travel news - industry-oriented website with current sector news available
at www.4hoteliers.com
Hoteliers' World - news and features on the industry available at http://www.ehotelier.com
STR Global - benchmark monitoring hotel performance available at http://www.strglobal.com
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CHAPTER 13
Tourist transport by air
 understand the role that airlines and airports play in meeting the needs of tourism
 explain how air transport is organized and distinguish between different categories of airline
operation
 understand the reasons for air regulation and the systems of regulation in force, both in the
UK and internationally
 be aware of the dynamic nature of the airline business and the changes that have taken place
in recent years
 analyze the reasons for success and failure of airlines' policies.
2. Key areas
 The airline business
 Budget airlines
 Organization of air transport
 Equipment manufacturers
 Airports
 Air navigation and traffic control services
 Airlines
 Scheduled
 Charter
 Air taxi
 Air transport regulation and freedoms of the air
 Deregulation
 Economics of airline operating
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 Environmental concerns
 Marketing air travel
 The future for air transport
EXAMPLE: All you can fly tickets
In both 2009 and 2010, JetBlue offered unlimited travel tickets for one set fee – $699 in 2010.
This ‘all you can jet’ pass allowed the holder travel on all JetBlue routes for 30 days. The pass
operated between September and October, traditionally a quiet time for the airline, and this
helped to fill seats.
Passengers were required to book their travel online and penalties for not flying on reserved
seats were quite severe – a $100 fine and complete withdrawal of the pass. The airline did,
however, allow cancellations up to three days before departure with no penalty. JetBlue only
issued a limited number of these passes, and all sold out.
Social media discussions of this pass provided extensive – and mostly positive – coverage of
the company's routes while press coverage of the charity auction of the last remaining pass for
2010 further enhanced awareness of the company. JetBlue clearly benefited from offering
these passes.
Do you think other airlines will be quick to follow the example of Jet Blue and offer similar
travel passes?
The decision to offer travel passes may lay in the company's route system and where spare
capacity lies. If there are many routes with some capacity, especially operating outside of
popular times, this may be considered a way of filling that capacity. However, the variable
cost of additional passengers must be considered.
It is also necessary to consider the image of the company and whether the availability of
passes reduces the purchase of travel by other flyers. Managing these passes may also add
significantly to operational cost, while offering little financial return.
It is unlikely that these passes will be offered extensively, but may be used as short-term
promotions to encourage trial of the airline, for example.
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EXAMPLE: Air India alliance on hold
In the summer of 2011, Star Alliance announced that plans for Air India to join the group had
been placed on hold. The airline had been working towards membership since 2007 and it had
expected to complete the process by 2010. However, the minimum terms of membership –
which ensure integration of systems between all the alliance airlines – had not been met and
therefore existing members of the alliance refused entry to the struggling airline. Air India lost
over $1 billion in 2010 and has undertaken debt restructuring in order to continue its
operations. Joining the alliance would have helped strengthen its international operations and
so this delay in membership will clearly have an impact on its business operations.
What is the likely impact on the Star Alliance brand and the existing Star Alliance members of
this decision?
It is vital that Star Alliance maintains its brand image and reputation. Therefore, the existing
members may feel that it is beneficial to delay Air India's inclusion.
The sharing of information and data is often achieved through alliances, so protecting these
resources and other monetary assets is important for the other airlines.
There are disadvantages for the alliance members – this has reduced the possibility of
extending routes into developing areas via the alliance. This means that airlines may need to
formalize separate code-sharing agreements to achieve this.
Overall, protecting the reputation and operation of the alliance is the key to long-term success
and to the benefit of existing members.
Question 1.
Fuel surcharges and air passenger taxes now make up a significant share of the total ticket price.
Do you think these charges have an impact on whether holidaymakers take short breaks by air?
Do you think such charges have an impact on either full-service carriers or low-cost carriers?
Answer Guide
The total cost of the short haul tickets is largely ‘taxes’ and ‘surcharges’. However, in many
cases the traveller considers only the total ticket cost (and factors in other trips costs such as
getting to the airport, transfers, accommodation). Short breaks are increasingly being taken to
mid-haul and long-haul places where higher ticket prices are expected. Low-cost carriers are
now expected to price tickets including taxes and they are perhaps being affected more by
attitudes to paying for extras such as luggage and ticketing. Full-service carriers are perhaps
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able to justify the total cost of the ticket through the services they provide in-flight and through
factors such as flight schedules and lower levels of delays and cancellations.
Question 2.
Some airlines are reducing the size of their in-flight magazines. Do you think customers notice
this change? Why do airlines provide these magazines?
Answer Guide
Few will perhaps notice the change in size and weight of in-flight magazines (especially if the
design is modernized to accent smaller editions). Airlines provide these as a tool to entertain
travellers, provide information about the company, the destinations they serve (which may
encourage future flights); to sell products as an income stream and to earn advertising revenue
from companies targeting the airline's key market (it is believed that some airlines make profits
from the production of such magazines).
Question 3.
The quote at the beginning of the chapter identifies problems facing Heathrow, particularly the
competition it faces from other European cities. Given this competition, should the UK
government expand Heathrow as a matter of urgency?
Answer Guide
The debate is trying to balance the protection of the environment and the quality of life for local
residents with the economic pressures to provide access. As a major hub Heathrow allows
international transfer of passengers, although the value of such passengers to the economy may
be limited. There is an enthusiasm to encourage use of other airports (particularly Gatwick and
Stansted) but this may not appeal to travellers or airlines.
Assignment 1.
In groups, discuss ways to reduce the environmental impacts of flying. Choose one idea which
could best be implemented by airlines. Provide a presentation, aimed at airline CEOs, which
explains both how and why your idea should be implemented.
Answer Guide
Ideas may consider:
 Reduce fuel use by reducing the need to circle before landing.
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 Reduce fuel use by flying at a slightly slower speed.
 Reduce fuel use by towing plane to the runway rather than using engines (virgin
investigated this possibility).
 Buy more fuel-efficient planes.
 Look to using alternative fuel systems.
 Reduce weight of planes by removing some inboard equipment (catering, magazines,

entertainment systems, reclining seats, etc).
Assignment 2.
Complete a number of interviews with people who have recently taken a flight. Ask them to
identify how they spent their time at the airports they travelled through. What facilities and
services were provided by the airports? Were their experiences of the airports positive? Write a
short summary of your findings.
Answer Guide
Activities may include shopping, eating, spending time with friends.
Facilities and services may include catering, shops, frequent flyer lounges, toilets (and showers),
internet access, prayer rooms.

examples
Civil Aviation Authority, body responsible for overseeing civil aviation in the UK, provides
information on ATOLs, economic regulation and consumer protection available at
http://www.caa.co.uk
Committee on climate change, Aviation report, http://www.theccc.org.uk/reports/aviation-report
International Air Transport Association, oversees more than 90 per cent of airlines. Statistics,
reports. available at http://www.iata.org/index.htm
UK Department for Transport site for government data and policies available at www.dft.gov.uk
UN Agency responsible for safety and security available at http://www.icao.int/
US Federal Aviation Administration, ensuring safety available at http://www.faa.gov/
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CHAPTER 14
Tourist transport by water
 identify each category of water-borne transport and the role each plays in the tourism
industry
 understand the economics of cruise and ferry operations
 identify the markets for cruising and how cruise companies appeal to each
 be aware of principal world cruise routes and the reasons for their popularity
 be familiar with other forms of water-borne leisure transport and their appeal to tourists.
2. Key areas
 Ocean liners
 Cruising
 Ferry services
 Coastal and inland waterways tourism
 Sea-going pleasure craft
 The future for water transport
EXAMPLE: Buying excursions
Shore excursions are considered such a profitable element of the cruise industry that
competition is entering this sector. Passenger will often take an excursion at each port of call
and this can add significantly to the overall cost of the holiday.
To provide an alternative to those excursions offered for sale on board ship, a new online
company –Cruising Excursions – has been established. Cruise passengers can visit their
website prior to the start of their holiday and view a range of excursions specifically tailored
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to fit with their ship's itinerary. The company claims that prices will be up to 60% lower than
onboard prices. This is not the first company to venture into this market; in the USA, several
companies exist to provide a similar service both for travel agents and to travellers directly.
Why might passengers buy shore excursions from the cruise line instead of using an online
company such as Cruising Excursions? Can these factors be addressed by companies seeking
to compete with the cruise line for a share of the shore excursions business?
The passenger may be unaware in advance of the excursions desired and thus can't book in
advance. There may be a preference to book with the cruise line to ensure the trip accurately
meshes with the arrival and departure times in port.
There may be greater trust in the cruise company and while using an agent such as Cruising
Excursions may provide a saving, relative to the whole cruise cost this may be small.
Booking with an agent may mean that excursionists are split from other passengers, whom
they may have befriended on board, which may reduce the value of the overall experience.
EXAMPLE: Dubai introduces ferry services
Traffic congestion has become problematic in Dubai. To ease the problem, public transport
infrastructure has been developing at a rapid pace, with a second Metro line constructed. But
to further serve the local commuters and tourists to the city, Ferry Dubai has been launched.
Initially operating on a tourist route – cruising Dubai Creek and returning to the same port
station where it started – this service will eventually link Jumeirah Beach with Dubai Marina
and other waterfront locations. Up to 40 ferry stations are planned, being served by 10 ferries,
each capable of transporting 100 passengers.
This development is not entirely new to the emirate. Dubai has long been served by Abras,
long narrow wooden boats, which can each carry about 20 passengers. The boats, while fairly
basic, are believed to transport 16 million passengers a year across Dubai Creek (Eagles,
2011). To manage safety issues, Dubai Roads and Transport Authority has provided six
official boarding stations and Abra operators must be licensed.
Why might tourists choose to use ferries to get around this destination?
The ferries may provide new views of Dubai for the visitor, perhaps providing interesting
angles for photographs. Waterscapes can provide part of the appeal for tourists.
The speed of travel for ferries may not be fast, but in an area where road traffic is high and
congestion common this provides an alternative, perhaps more relaxing means of reaching
destinations.
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Tourists may also choose this mode of transport if they feel it is ‘local’ – the appeal being that
they feel they are travelling around the destination using the same modes of transport as the
host population.
Question 1.
One example in the chapter highlighted the fact that MSC Cruises has set aside parts of their
ship for premium class passengers only. Why might they have offered this? Do you think this
will become commonplace for all cruise companies?
Answer Guide
Offering premium class services allows the company the chance to earn higher revenue from
some passengers without significantly reducing the overall numbers carried. This can also let
the company reach a target market which otherwise may not be interested in their product. It
may also encourage repeat business and loyalty. This may be introduced by competitors who
feel they could appeal to such markets (but some companies may be suited to the budget market
and thus would not find this useful). The ability to adapt the ship to create separate sectors may
determine availability.
Question 2.
Why might a family taking a self-drive holiday from Britain to France decide to use the ferry
rather than the Channel Tunnel? Alternatively, what are the benefits of using Eurotunnel to
cross to the Continent?
Answer Guide
Benefits of ferry:
 Allow family to get out of the car and walk around in a nice environment.
 Chance to eat and relax during the crossing.
 Can be entertained by onboard shopping or watching passing traffic in one of the busiest
shipping lanes in the world.
Benefits of Eurotunnel:
 Can arrive more swiftly.
 No need to disembark from the car (perhaps a benefit if the family includes young children,
who may require pushchairs, nappies etc, or children who may require toys and books to be
taken to entertain them).
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Question 3.
What factors may influence the demand for sailing and boating holidays where the vessel is
hired and the holidaymakers skipper it to the destination?
Answer Guide
These holidays may be quite expensive, so economic environment may be influential. The
interest in sailing may be sparked by high-profile examples (circumnavigation races, Olympic
sailing, celebrity sailing, etc). Training courses are needed to be able to skipper vessels so
availability of such training may have an impact on total demand.
Assignment 1.
As marketing officer for a river cruise company, you have been asked to explore the potential
for expanding your cruise programmes to new destinations. Firstly, identify a suitable
destination which could offer suitable attractions for your customers and secondly, identify the
facilities which exist and those which may need to be constructed, if you are to operate cruises
on a regular basis. Write a briefing paper for your manager, summarizing your findings.
Answer Guide
Destinations may need a range of attractions suited to the target market. These need to be
conveniently accessible from the river.
Facilities needed/available may consider mooring points which allow safe embarkation for
passengers. Mooring may need to be well lit, powered and possibly provide space for waste
removal.
Assignment 2.
The impact of the tourism industry on the environment is always a concern. Identify the damage
that cruises can cause the environment and then detail the actions that the cruise industry, and
others, are taking to reduce these impacts.
Answer Guide
Factors may include:
 Riverboats may cause damage to the riverbanks through wash-areas such as the Norfolk
Broads, which receives high levels of cruise traffic, suffer this issue.
 Pollution of water by fuels or discarded waste.
 Distraction of wildlife habitat.
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 Large ocean going cruise vessels can require large port facilities, the existence and
construction of such infrastructure impacts on the environment.

examples
Cruise Industry News, http://www.cruiseindustrynews.com/
European Cruise Council, http://www.europeancruisecouncil.com/
International Maritime Organization website available at http://www.imo.org
North American based Cruise Lines International Association, representing most cruise
companies with ships calling in North American ports available at http://www.cruising.org
Passenger Shipping Association (UK), http://www.the-psa.co.uk/
Transportation Institute, http://www.trans-inst.org/index.html
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CHAPTER 15
Tourist transport on land
 understand the role and scope of railways and their place in tourist travel
 be aware of the role and significance of the coach industry in tourism
 recognize the importance of the private car to tourist travel
 understand the role of car hire in domestic and foreign tourism
 be aware of the growing importance of tourist travel by bicycle and on foot.
2. Key areas
 The role of the railways in tourism
 Classic rail journeys around the world
 Railways as tourist attractions
 Coach travel
 The car
 Caravan holidays
 Car hire
 Cycling and tourism
 Tourists on foot
 Future developments in land transport
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EXAMPLE: The highest railway in the world
In 2006, the Chinese completed the highest railway in the world, between Beijing and Lhasa
in Tibet. At its highest point, the Tangula Pass, the train reaches a height of 5,070 (over
16,000 feet) and, at this height, the carriage compartments are pressurized, owing to the thin
air. Oxygen cylinders are also carried on board to cater for emergencies, which are not
uncommon.
The construction of the rail track was in itself a major engineering feat, as much of the route is
across permafrost, requiring the track to be laid on causeways raised above the unstable
ground. The diesel engines were specially designed so they could operate efficiently at this
three-mile high altitude.
Curiously, to date no iconic name has been chosen for the train, but this has not stopped a
surge of bookings from intrepid passengers from all over the world, and the journey has been
rapidly incorporated into specialist operators' rail itineraries.
What factors may influence whether a rail route becomes popular with tourists?
There is a need for the route to offer interesting sights and views along its length. This may be
achieved through height changes, natural landmarks or landscapes, views of water (coasts,
lakes, etc).
The route may become popular if the rail equipment is unusual (steam trains, for example) or
if the construction of the railway required a feat of engineering (as with this example).
The route may also increase in popularity if it provides access to an area which in itself has
appeal.
EXAMPLE Guide Friday
A good example of a niche operator, Guide Friday set out to become the leading sightseeing
bus operator in cities throughout Britain. Starting up in Stratford-upon-Avon, it expanded to
operate in 29 different locations. Older open-top buses were purchased to keep costs down and
reduce depreciation. As a result, the company was able to ensure profitablity even when
operating for just the three busy months of the year.
Its success attracted attention from larger competitors, and Guide Friday was taken over in
2002 by City Sightseeing, the world's largest open-top bus operator. The expansion of City
Sightseeing has been achieved in part by such buy-outs, but to an even greater extent by
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offering franchises. The company now offers 32 tours in Britain, 42 tours in Europe and also
operates in 15 other cities across the world.
Why are guided bus tours of cities popular? Do these tours suit a particular type of target
market?
Such tours can provide a convenient and relatively stress-free way to view the key attractions
of a city, while gaining some knowledge of the key sites and the surrounding areas.
These tours may especially appeal to tourists who are at the destination for the first time and
only for a short time. Thus it provides an opportunity to see many sights in an efficient
manner. It may also appeal to tourists who are less mobile and wish to avoid extensive
walking or standing (and queuing). Furthermore, it may appeal to those with little knowledge
of the local language (as some tours provide commentary in a variety of languages).
Question 1.
What are the advantages of travelling by rail rather than air between London and Paris? Would
these same advantages exist if you were travelling between London and Avignon in the south of
France?
Answer Guide
Advantages include:
 Time to travel between city centre and city centre may be shorter than by air.
 Chance to move around while on the train may be preferable (although air travel allows this
for most of the journey time).
 Journey may seem to be less stressful as security and customs procedures are dealt with in
one stage rather than at several journey points.
 Frequent services exist so the departure time can be more selective.
 It is important to note that if the trip was outside of Paris then additional factors must be
considered. Avignon is served by high-speed rail so a through-ticket can be purchased and
Rail Team arrangements mean that travel delays will be accommodated in ticketing. Long
distance train journeys may require the inconvenience of changing trains.
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Question 2.
How might the development of long-distance cycle and walking trails (such as the Eurovelo and
the E2 Grande Traversée des Alpes) help to develop tourism in rural areas traversed by these
routes?
Answer Guide
Cycle tourists are likely to require accommodation along the route. They will also wish to break
cycling with visits to attractions. In many cases such cycle routes may attract people to parts of
the route so the rural area can act as a base for short cycle trips. Many rural tourism visitors may
come to enjoy the surrounding areas and cycles may be hired to provide a safe way to explore
the local landscape.
Question 3.
This chapter has highlighted the example of Toronto Tourism, which developed freely available
materials to encourage visitors to take self-guided walking tours. Can the cost of designing such
materials be justified? Who might oppose the production of such resources?
Answer Guide
By producing walking tours of the area, tourists may be encouraged to explore more of the
attractions and historical monuments in the area. This can increase dwell time (perhaps an extra
night's stay). It can also help alleviate congestion in popular areas, spreading tourists further
afield. It might also add to the perception of the destination, improving the image. The tours
may be themed which can help attract different markets.
Opposition may come from existing guiding services who will be competing for customers.
Households on the walking routes may also oppose the increase in footfall, caused by additional
tourists exploring the trail.
Assignment 1.
Complete five interviews with people who have recently taken a holiday. Ask the holidaymaker
to identify the different types of land transport used throughout their trip. Report on the most
popular modes of transport used as well as the transport costs as a share of their overall holiday
spends. Explain why the modes of transport used were chosen.
Answer Guide
Transport may include:
 Airplanes, helicopters, private jets.
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 Private car, car hire, taxi cabs, limousines.
 Coaches, local bus services and mini coach hire.
 Trains, light rail and monorail services, steam trains.
 Cycling.
 Motor scooters.
Modes chosen may be because:
 Capability to travel the distance required (e.g. across seas and oceans).
 Speed of travel.
 Door to door convenience.
 Cost of travel.
 Ability to cater to the travel group.
 Interest or enthusiasm in a particular form of transport.
Assignment 2.
You are the owner of a successful coach company offering tours across Europe. Currently your
market is mostly over the age of 60. However, you would like to expand your business to attract
a younger audience – those aged 18–28. Write a report which details how the different aspects
of the tours you currently offer may need to be changed to attract this new market.
Answer Guide
The report may need to consider the range of attractions offered on the tour. If price is perceived
as expensive then cheaper hotels may need to be used or b&b only packages offered. The timing
used during the tours may need to be amended, allowing late night entertainment to be
experienced without early morning starts. Marketing of the tours may need to be adjusted, to
ensure the target audience is reached. Services may also need to be adapted, for example
offering Internet access onboard the coach may appeal to the younger clientele.
The marketing of the tours may need to be adjusted.
Offering internet access onboard the coach may also appeal to the younger clientele.
Assignment 3.
In Britain, free local bus transport is available for the over-sixties throughout the country
(although Scotland and Wales operate their own versions for their residents), aided by
government subsidies. This has encouraged many more elderly travellers, especially those living
97
near to the coast, to take days out. Many are questioning this benefit in the face of the current
recession. Do the social benefits outweigh the economic costs involved? Do these benefits
increase the spend by tourists? Interview a selection of residents in your area to find out the
potential value, both social and economic, of this benefit, and write a report which also
identifies any drawbacks, apart from that of cost, which this might involve. Can these
drawbacks be overcome?
Answer Guide
Benefits may include increased local spend and opportunities for social interaction with visitors.
This can help reduce social exclusion, improving mobility and general health.
Drawbacks may include increased pressure on the local services, causing problems for the local
fare-paying users in some areas.

examples
Confederation of Passenger Transport (UK) with information largely aimed at the industry
available at http://www.cpt-uk.org/index.php?fuseaction=publications.main
EU Transport policy available online at http://ec.europa.eu/transport/index_en.htm
EU Transport research available online at http://ec.europa.eu/research/transport/publications/

index_en.htm
UK Department for Transport site for government data and policies available at www.dft.gov.uk
US Auto Rental news with market statistics, http://www.autorentalnews.com/Content/Research-

Statistics.aspx
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Part 3
Intermediaries in the provision of travel and

tourism services
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CHAPTER 16
The management of visitors
 explain the concept of visitor management
 identify different techniques employed to manage tourists
 understand the role of interpretation in visitor management
 be aware of the controls that can be implemented to protect the physical environment.
2. Key areas
 Controlling the impacts of visitors
 Carrying Capacity and Limits of Acceptable Change (LAC)
 The cost of visitor management
 Operational approaches to visitor management
 The use of technology in visitor management
EXAMPLE: Timed tickets for blockbuster art shows
Highly popular exhibitions draw huge crowds, and in cases where the object is to look at
artwork, the result can be extremely unsatisfying. A case in point was the Paul Gauguin
exhibition held at the Tate Modern in London in 2010/11, which attracted so many visitors
that it became almost impossible to see individual works of art. It became clear that simply
restricting visitors to limits dictated by health and safety regulations was inadequate. London's
National Gallery learned the lesson for their blockbuster Leonardo da Vinci exhibition in
2011; only 180 visitors were admitted at a time, instead of the maximum of 230 permissible
under health and safety regulations, and timed tickets were restricted to a half an hour.
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How can the use of timed ticketing enhance the visitor experience?
Timed ticketing can control congestion at attractions, spreading the demand away from peak
times into shoulder and off-peak sessions. This can ensure that tourists are not competing
with each other to experience the attractions (in the case of this example to view the works
of art).
By providing timed tickets it can also remove the need to queue. Once the ticket has been
purchased the visitor can arrive at the correct time, allowing other plans to be made outside of
this scheduled slot. This can maximize the activities undertaken by visitors (perhaps
increasing spend at the destination) which may enhance overall experience.
EXAMPLE: Code of conduct against the sexual exploitation of children in

tourism
In 2004, the United Nations World Tourism Organization, together with End Child
Prostitution, Child Pornography and the Trafficking of Children for Sexual Purposes (ECPAT)
and UNICEF, introduced a code of conduct for the travel industry that is designed to protect
children from commercial exploitation, especially in the sex tourism industry.
In agreeing to abide by the code of conduct to protect children, the tourist organization agrees to:
 establish an ethical corporate policy against commercial sexual exploitation of children
 train personnel in the country of origin and where children are sexually exploited
 introduce clauses in contracts with suppliers, stating a common repudiation of sexual

exploitation of children
 provide information to travellers on the sexual exploitation of children
 provide information to local ‘key persons’ at destinations
 report annually.
This code of conduct has become a key instrument in the prevention of child sex tourism
worldwide. The initiative is recognized by the travel industry, child protection organizations,
several governments and international organizations. By April 2011, over 900 signatory
companies in 37 countries on all continents had signed up to the code.
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Can such codes of conduct really lead to a change in behaviour by tourists and the tourism
industry?
While there is some scepticism that voluntary codes can do little to force a change in
behaviour, they can raise awareness of the issues and encourage many visitors and industry
companies to consider their actions and the corresponding impacts.
Awareness of expected behaviour can encourage tourists and the industry operators to use
peer pressure to encourage non-conformers to consider their actions. This can encourage
changes in practice.
It should be realized, however, that if companies or tourists decide that they would benefit
from not conforming then voluntary codes are unlikely to change behaviour.
Question 1.
Do you think it is beneficial to use soft rather than hard visitor management techniques? Is there
always a choice?
Answer Guide
The key difference is that soft techniques are persuasive while hard techniques enforce behaviour.
Soft techniques can be better as they may not detract from the overall experience of the visitor.
They may inform visitors of the issues, thus encouraging them to change in this and possibly
other similar future circumstances. However, in some cases soft techniques may be ineffective
and hard techniques such as closure may be required to ensure effective management is
achieved.
Question 2.
Printed, audio and digital tour guides are now widely available. Do you think this spells the end
of the human tour guide?
Answer Guide
These types of guides can be the best choice in a variety of circumstances (e.g. if a variety of
languages are needed or space requires quiet, etc) but the human guide can offer some
advantages. They can easily respond to questions, they provide an element of safety (watching
out for danger spots). They can also tailor the tour to meet the needs and interests of the
audience, thus offering a targeted experience. They can schedule tours to ensure visitors are kept
away from congested areas at peak times, aiding overall visitor management.
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Question 3.
Signage can be directional or informational. How do these different types of signage play a role
in visitor management?
Answer Guide
Directional signage can encourage visitors to access areas by routes designed to cope with
traffic (e.g. city ring roads when driving or main streets when walking). It can ensure attractions
are easily located and can encourage visitors to attractions they may not have considered
visiting, but discover by following directional signs.
Informational signage can improve visitor behaviour by informing of pressures and impacts and
reasons why it's necessary to consider behaviour when on site. Informational signage can also
enhance the visitor experience thus increasing dwell time and overall satisfaction. Informational
signage can also entertain while visitors are waiting, so allowing groups to be managed.
Assignment 1.
Visit a popular tourist attraction and identify the different ways it manages its visitors. Write a
report which explains why these different techniques are employed.
Answer Guide
Techniques to manage visitors may include:
 Closure of attraction or areas within an attraction.
 Marketing.
 Zoning.
 Directional signage.
 Requiring permits and licences.
 Restricting infrastructure development.
 Vehicle bans.
 Implementation of a code of conduct.
 Introducing entrance fees.
 Education and information provision.
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Assignment 2.
Obtain a brochure or information leaflet which promotes a walking or driving trail. Consider the
reasons why this trail has been established. Discuss how it helps the tourism businesses listed on
the route.
Answer Guide
The reasons for the trail may include enhancing the level of knowledge held about the
destination (at a low cost). It may be to encourage local attractions to work together (seemingly)
thus appearing to be a coherent place to spend some time (as an amalgamation of visitor
experiences). There may be large numbers of visitors to the area and thus a trail can ensure they
are organized and encouraged to spread across the destination. It may also protect more fragile
areas by designing a trail which by-passes these. Tourism businesses en route may gain extra
trade from those who would otherwise not venture through the area. More visitors may be
encouraged because the area seems to offer more attractions.

examples
De-marketing as a tool for managing visitor demand in national parks: an Australian case study–
PhD Thesis available online at http://erl.canberra.edu.au/public/adt-AUC20061114.125254/
New Forest National Park, Managing the impact of visitors, http://www.newforestnpa.gov.uk/

__data/assets/pdf_file/0017/26630/tourism-2-managingimpactsweb.pdf
UNEP, Tools for Visitor Management, available online at http://www.unep.fr/shared/publications/

other/3084/BP8-7.pdf
UNESCO, Managing tourism at World Heritage Sites, http://whc.unesco.org/uploads/activities/

documents/activity-113-2.pdf
Windsor Visitor Management Strategy – available online at http://www.windsor.gov.uk/

statistics-and-data/visitor-management-strategy
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CHAPTER 17
The structure and role of the public sector in

tourism
 understand the part played by local, regional and central governments and their agencies in
the planning and promotion of tourism in a country
 recognize the growing importance of the public sector in all aspects of tourism and its role in
public-private partnerships
 define the term ‘social tourism’ and understand its significance for disadvantaged populations
 explain how governments and local authorities in Britain and elsewhere supervise and
exercise control over tourism
 appreciate the changing role of public-sector tourism in Britain.
2. Key areas
 The nature of government involvement
 Planning and facilitating tourism
 Central and local government responsibilities
 Social tourism
 Supervision and control of tourism
 The organization of public-sector tourism in Britain
 Information technology initiatives in the public sector
 The future role of the public sector in tourism
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EXAMPLE: Entry to the USA
In 1988, the USA abandoned the requirement for visas for many visitors from Western
Europe (albeit with some limitations that continued to hinder the free flow of tourism),
having recognized the barrier that this bureaucratic constraint created at a time when other
factors, such as relative exchange rates, were favouring the rapid expansion of tourism to
North America. The political panic that followed the 9/11 disaster changed attitudes,
however, and the US government tightened entry requirements, including the need for
computer-scanning of passports. Biometric data (including fingerprinting and iris-scans)
were taken on entry and visas, where required, became more difficult to obtain, with
prospective tourists having to travel long distances to attend interviews at US embassies.
Since October 2005, the Department of Homeland Security requires airlines and cruise ships
to provide details of their passengers, prior to arrival. The information required includes
each passenger's full name, date of birth, gender, citizenship, passport details, country of
residence, address while in the USA and arrival and departure transport details. This has
raised debate regarding the rights to privacy, as well as concerns over protection and
security of the data provided.
In addition to the information provided by the airline, from 2009 all visitors using the visa-
waiver scheme had to apply for travel authorization prior to arrival. This operated through
an online system called ESTA (Electronic System for Travel Authorization) and, although
this service was initially free, a charge of $14 was introduced in September 2010 – $10 of
which was used to fund promotional campaigns to attract more visitors to the USA.
The difficulty in obtaining visas and concerns that the increased security will cause
problems for arriving travellers have combined with other factors to influence arrival
figures. Despite a weak dollar, international arrival figures (excluding those coming from
Mexico and Canada) took until 2010 to reach the levels that existed prior to the terrorist
attacks of 2001, despite global international tourism arrivals increasing by almost 40% over
the same period.
To what extent do visa and entry controls impact a tourist's decision to visit a country?
If a country offers a particular attraction or reason for visitation (e.g. to see family or attend
a particular event) then visa and entry controls are one of many factors likely to be
considered as part of the decision-making processes.
However, visa and entry controls may have an impact on multi-destination journeys. For
example, the UK’s position outside of the Schengen visa area means that long-haul tourists
planning to visit Europe for a month may decide to avoid the need for an additional visa and
plan their travels within the Schengen countries only.
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EXAMPLE: Washington is closed
The Pacific coastal state of Washington has many attractions to bring the visitor to this part
of the USA, including the landmark Seattle Space Needle or Mount Rainier; but a cut in
budget from $7 million in 2009 to zero in 2011 has led to the closure of its State Tourism
Office. Whilst many states are facing cutbacks in government spending, the importance of
tourism is often recognized, especially in areas where traditional manufacturing industries
are in decline – Michigan, for example, is launching the ‘Pure Michigan’ campaign to attract
visitors to Detroit and the regions. Tourism is the fourth largest industry in Washington
State, but tourism promotion will now be the responsibility of an alliance of members from
the local tourism industry. Whether it can raise the funds needed for successful international
marketing remains to be seen.
Should the promotion of tourism be funded by government? Does it matter if tourism is

newly developing or has reached maturity at the destination?
The government benefits from tourism (through increased tax returns from tourist spending
and trade). However, the reasons for involvement often focus on providing coordinated
marketing activity (branding destinations and countries) and in encouraging the tourism
industry (which consists of many SME's and is often rather fragmented) to work together.
Developing destinations may benefit from government investment in infrastructure (access

through the construction of air and sea ports, hotels, attractions, etc) and these are needed to
encourage visitors to consider the destination.
For mature destinations there is perhaps less expectation for the government to fund
infrastructure developments but there may still need to be involvement to encourage
reinvestment in facilities, improvements in quality and coordinated product offerings to suit
existing and new target markets.
Question 1.
The development of Social Tourism is encouraged through the EU Calypso programme. This
suggests that it is beneficial for both the local population and for regions which host tourism.
What are the main benefits of introducing a social tourism programme? Should tourism be
considered a necessity, with holidays paid for by the State?
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Answer Guide
Benefits of introducing a social tourism programme include:
 Can be a cost-effective form of social support reducing costs on counselling, parental

support, incapacity benefits, etc.
 Increases confidence encouraging life changes.
 Encourage social inclusion and reduce depression.
 Can provide economic opportunities for supply side (e.g. offset issues of seasonality,
encourage domestic tourism.
Question 2.
One activity historically undertaken by local government tourism organizations is that of

marketing. In established and popular destinations, should spending on marketing and
promotion now be left in the hands of the private sector, which are the businesses that gain most
from tourism spend?
Answer Guide
Where tourism is a mature industry, governments are often looking to cut back their spend on
tourism marketing. The benefits of tourists visiting largely fall directly to the private sector
businesses (hotels, attractions, etc). However, there are indirect benefits to the local government
(jobs, taxes, destination image) which can enhance the local economy more widely. The local
government has a role to play in coordinating the activities of the tourism industry and
therefore, stimulating marketing (including the production of brochures, creation and operation
of reservation systems and websites, etc) can be an important activity.
Question 3.
In what ways has tourism in Europe changed as a result of the expansion of the European
Union?
Answer Guide
There are increased levels of migration so VFR tourism is developing. New destinations are
conveniently accessible and greater cultural diversity can stimulate interest in travel. There is
little EU legislation directly related to tourism but directives such as that related to package
travel can improve protection for travellers.
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Assignment 1.
Select a country to investigate and produce a presentation which addresses the following three
questions:
(a) How are tourists or the tourism industry specifically being taxed by government?
(b) How is the government financially supporting tourism activity?
(c) Does the government encourage the improvement of the industry through schemes designed
to enhance the quality of the visitor experience?
Answer Guide
(a) Taxation may consider general taxes which affect tourists (e.g. sales taxes) as well as
tourism specific taxes (e.g. flight or hotel bed taxes). (b) Funding may come through tourist
boards, grants to deprived areas or those offered to the industry directly to encourage
development or infrastructure improvement. (c) Schemes monitoring quality may affect tourist
attractions, hotels, etc and may be compulsory or voluntary (see Table 12.3 in Chapter 12 for
more details regarding accommodation grading schemes in Europe).
Assignment 2.
Explore the EU Town Twinning website www.twinning.org.This resource contains information

about the towns and cities seeking partners, their characteristics and twinning preferences. Using
the partners' list, suggest an ideal match for your own town. Write a brief report which highlights
why this is a good match and what benefits may accrue from creating this relationship.
Answer Guide
Factors influencing the suitability of match may consider elements of similarity (e.g. industry
types, town size, areas of interest, etc).
Benefits may be increased cultural awareness, business development opportunities and

possibilities to encourage international travel through community visit programmes.

examples
ETOA (2011) A hidden market: overcoming the visa barrier, http://www.etoa.org/docs/visa-

reports/2011_a-hidden-market.pdf
Minnaert, L; Maitland, R and Miller, G (2009) Social Tourism as a measure to reduce social
exclusion, available online at http://www.fhaonline.org.uk/Documents/Prog09MinnaertLong
Synopsis_0.05Mb.pdf
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‘Sustainable Tourism in National Parks and Protected areas: An Overview’, from:

http://www.greentourism.org.uk/Publications/NP%20Sust%20T%20Exec%20Summary.doc
Visit Britain, Who does what in British tourism, http://www.visitbritain.org/britaintourism

industry/introbritainstourism/mapoftourismorganisation/index.aspx
Winning: A tourism strategy for 2012 and beyond: DCMS report on tourism and the 2012
Olympics, from: http://www.visitbritain.org/Images/DCMS-Tourism2012Strategy_fullreport
_tcm29-14543.pdf
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CHAPTER 18
Tour operating
 define the role of a tour operator and distinguish between different types of operator
 explain the functions of each type of operator
 understand how operators interact with other sectors of industry
 understand how the activities of operators are constrained
 understand the basic principles behind the construction and marketing of a package tour
 understand the appeal of the package tour to its various markets
 evaluate alternative methods of tour distribution and recognize the importance of new forms
of electronic reservations and sales systems for operators and their clients.
2. Key areas
 The role of the tour operator in Europe
 Why airlines and hotels use tour operators to sell their products
 Types of tour operator (including incoming, domestic, specialist and air brokers)
 Integration (vertical and horizontal)
 The economics of tour operating
 Regulating tour operators
 The nature of tour operating
 Planning and marketing package tours
 Pricing the package
 The tour brochure
 Reservations and distribution network
 The role of information technology in tour operating
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EXAMPLE: TUI hotels and resorts
TUI owns or has management agreements with many hotels across Europe, which operate
under brand names such as Rui, Grecotel, Grupotel, Magic Life, Iberotel, Paladian and
Robinson Clubs. With more than 260 hotels providing around 170,000 bed spaces, TUI is the
largest leisure hotelier in Europe. TUI also controls around 21% of hotel beds in the Caribbean
and 25% of beds in the North Africa/Egypt region.
The majority of their hotels (60%) are rated 4-star. The average revenue earned in these hotel
chains varies from a low of €35 (for the Dorfhotel group) to a high of €80 in the Robinson
hotels group.
Source: www.tui-group.com
Why would TUI choose to use different brands for their hotels and resorts?
Each brand may appeal to a different market. This means that the potential customer-base
served is larger. This also means that different facilities can be provided under different
brands, with the possibility to encourage up-selling to enhance total revenue.
It may be that customers are deterred by one particular brand. If that is the case then they may
be unaware that TUI owns all these brands and therefore, they will still consider TUI products
under the guise of a different brand name.
EXAMPLE First Choice goes all-inclusive
Having merged with Thomson Holidays in 2007, First Choice announced in April 2011 that,
from the spring of 2012 it would only offer all-inclusive holidays. Any customers wishing to
travel on bed-and-breakfast or half-board rates would have to book holidays via the Thomson
portfolio. The all-inclusive rates would include all flights, accommodation, meals and drinks
in the price of the holiday. Between 2004 and 2009, the all-inclusive market grew by a third.
This was viewed as a particularly cost-effective option, especially for a family seeking to
control costs once on holiday.
Why are all-inclusive markets growing? Will more travel companies offer all-inclusive
options in the future?
The appeal, perhaps linked to the economic downturn is that the customer can more easily
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forecast their expected spend in the destination. This may also mean that there is less worry
regarding the cost of items individually, especially for parents on a budget – who may prefer
to know their children can have food, drink, and other included activities as desired rather than
having to frequently consider the cost of agreeing to the many requests.
Question 1.
The travel trade press continues to report that brochures are still in demand by holidaymakers,
regardless of whether they choose to book online or via travel agents. Why is this still the case?
Answer Guide
Using the brochure may be a force of habit. However, many travel decisions are often revisited
several times before the booking is confirmed and brochures can provide the answers to many
questions considered important by different members of the travel party. The brochure can
inspire by offering choices. This can also allow comparisons between many providers .
Question 2.
The vertical and horizontal integration undertaken by major European tour operators have
brought the companies involved many benefits. Identify both the benefits and disadvantages that
this integration can bring for consumers.
Answer Guide
Benefits to the consumer of vertical and horizontal integration include closer links in the supply
chain can allow improved efficiencies, coordinated delivery and reduced prices achieved
through business efficiencies.
Disadvantages may be the lack of competition reducing choice, independent operators may
struggle to compete and so go out of business.
Question 3.
Mobile phone applications have been created to support many aspects of travel, including travel
guides, customer review and hotel and flight reservations. Yet, at the time of writing, few tour
operators offer online booking for their packages. What factors may be influencing this?
Answer Guide
The packages are often very complicated so choice would need to be extensive and booking
may be time consuming and require extensive details from the passengers. This may include
passport details, etc, which may not be conveniently available to mobile users.
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Assignment 1.
Select a small independent tour operator – the AITO website can help here – and examine the
company and its operations. Write a brief report which identifies the products they offer and the
markets they target. How does the organization differentiate itself from large mass-market tour
operators?
Answer Guide
Markets may be identified by age, geographic location, social class, niche interest, etc.
Differentiation may include areas such as targeting a particular niche, offering something
unusual or a level of service which cannot be provided by mass-market operators.
Assignment 2.
Interview five people who have recently booked a holiday. Inquire as to whether they used a
tour operator and ask them about the reason for this choice. Summarize your findings in a
presentation to your colleagues.
Answer Guide
The use of a tour operator may not be directly obvious to the traveller, so the interviewer may
need to probe deeply to examine whether a tour operator was used. For instance holidays may
be booked either directly or via a travel agent, including dynamic packaging, so it is less clear as
to whether a tour operator has been involved in any elements.

examples
EU information on the package travel directive available at http://ec.europa.eu/

consumers/rights/timeshare_en.htm#travel
Historical background on integration in the travel industry by the competition commission

available at http://www.competition-commission.org.uk/rep_pub/reports/1997/412foreign.htm
Schwartz, K and Font, X (2009) Sustainable supply chain management: UK outbound tour

operator practices, available online at http://www.icrtourism.org/documents/0P15Sustainable
supplychainmanagementUKoutboundtouroperatorpractices.pdf
The effect of tour operator integration on developing counties – pro-poor tourism fact sheet
available at http://www.propoortourism.org.uk/info_sheets/10%20info%20sheet.pdf
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CHAPTER 19
Selling and distributing travel and tourism
 explain the role of travel agents as a component of the tourism industry and their
relationship with other sectors
 identify the functions performed by an agent
 be aware of the qualities necessary for effective agency management and service
 understand the considerations and the requirements for establishing and running a travel
agency
 be aware of the constraints and threats to agents' operations and evaluate alternative
solutions for their survival.
2. Key areas
 The role of travel agents in the chain of distribution – the historical context
 Scale of the retail sector
 The profitability of travel agents
 Distribution trends
 Disintermediation and reintermediation
 Dynamic packaging
 Running a travel agency
 Skill and competencies of travel agents
 Membership of trade bodies
 Computer technology and travel agents
 The future of travel retailing
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EXAMPLE: Travel Counsellors
Travel Counsellors is one company that has built up a major retailing base in travel, with more
than 1,100 home-based employees operating in Britain, The Netherlands, Ireland, Australia,
South Africa and Canada. Turnover in 2009 was in excess of £250 million and its recent
growth has moved it into the UK's top 100 private firms.
In 2006, Travel Counsellors reported that over 40% of its UK-based agents earned more than
£300 per week in commission, but acknowledged that more than a third of their counsellors
worked between 40 and 60 hours per week to gain such returns. Agents are encouraged to
build positive business relationships with their customers, as trust becomes important in
developing repeat custom, and developing a loyal customer base can enhance earnings for
both the agent and the company.
Why are there growing numbers of home-based travel agents? How do their operations differ
from high-street agents?
The home-based agents have a lower overhead, without the bricks-and-mortar premises. This
can aid profitability, although trade may be affected by the lack of walk-in customers. Mobile
technology has also allowed home-based agents to do business in the homes of potential
customers. This may meet expectations of new markets, looking for convenience when booking
travel.
Their operations differ in that they often just one (or possibly a couple) of the agents who may
work to serve a specific client base. The customers are obtained through word of mouth
recommendations, advertising, etc.
The home-based agents may work as part of a larger group (such as Travel Counsellors) who
offer the required financial protection.
EXAMPLE: Thomson brochures
The production of holiday brochures can be a costly affair, especially for the environment. In
2010, Thomson produced 9 brochures for its First Choice brand and a further 11 brochures
covering the Thomson range of products – and with summer sun brochures often containing
hundreds of pages, this is a lot of paper! Each brochure is designed to appeal to different
markets, and travel agents are expected to stock those brochures most suited to their local
market. Having the right brochure may have an impact on whether a sale is made.
Thomson also makes its brochures available online – in 2011, there were 27 different types.
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The company also provides an e-mail facility, allowing the customer to receive a copy of the
brochure electronically via their inbox. These online brochures are also accessible to travel
agents, so they are always able to access a copy of the brochure to help persuade customers of
the suitability of a suggested holiday.
How is the role of the travel brochure changing for the tourist booking their holiday?
The travel brochure is still important for families and groups looking to plan their holiday.
However, accessing this brochure is changing, with more being downloaded from corporate
websites, rather than going to a high-street travel agent to collect this.
The information which has to be included in the brochure is being reconsidered as part of
wider discussions related to package holiday legislation and consumer protection.
Question 1.
Do you think it is a good time to open your own high-street travel agency? What could you do
to ensure that your agency attracted enough business to be successful?
Answer Guide
While there is competition from the internet the high-street travel agent still receives business,
especially from customers seeking protection (financial via schemes such as ABTA, confidence
that the product selected is then most suited to the needs, based on agents advice, etc). Success
is likely to be dependent on building customer relationships to maximize repeat business and
ensuring customer service levels are high.
Question 2.
What are the benefits of using travel agents today? Are there any drawbacks?
Answer Guide
The large travel agency chains will have access to a wide range of products (although switch
selling may reduce the ones suggested to customers). The travel agent can advise on the
protection which exists with some holidays (packages) and can provide some protection when
dynamically packaging. Good travel agents can reduce the stress and save the customer time.
Drawbacks may be that the travel agent limits the products offered, to ensure they maximize
commission revenue and/or corporate profitability. The skill and experience of the travel agent
may also influence the effectiveness of using an agent.
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Question 3.
Some countries require travel agencies to hold licences (in addition to licence requirements set
by organizations such as IATA). Do you think this is necessary? Does this help to protect the
customer? Does it help to protect the industry?
Answer Guide
Licenses can ensure that the customer is serviced by a knowledgeable, suitably qualified person.
However, the rules in Europe regarding protection, information provision, etc already control
some aspects of retail operations. While it is believed that the industry is protected if unsuitable
agents are restricted from entering, it is unclear as to whether licenses achieve this or whether
other existing forms of regulation achieve this. One final thing to note is that they can be used to
control numbers entering the business thus protecting existing agents from excess competition .
Assignment 1.
Obtain a holiday brochure and review the holidays it offers. Write a brief report which
highlights the market that this brochure is targeting. Provide evidence from the brochure to
justify your assumption.
Answer Guide
Market segmentation techniques may be used to identify target audience. This may consider
demographic, psychographic, socio-economic, behavioural and geographic factors. Justification
can come through price, activities offered, standard of quality, etc.
Assignment 2.
Visit a high-street travel agent in your area and view the information provided in the window.
Now visit a travel agent's website and view the information available on the home page.
Compare and contrast the information you have seen. Give a presentation which identifies the
different types of information displayed and explain why this information is provided.
Answer Guide
Differences may include the amount of information, the purpose of the information, the call to
action (e.g. coming into the shop versus following links to more information). Searching for
suitable products available online, but shop windows are likely to highlight a variety of holidays
to encourage further investigation. Information on services (currency exchange, insurance) –
these are likely to be provided by both but may receive more prominent attention in shops.
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examples
ABTA (2010) Travel Trends Report, available online at http://www.abta.com/filegrab/

?ref=312&f=TravelTrendsReport2010.pdf
Longhi, C (2008) Usages of the internet and e-tourism. Towards a new economy of tourism
available online at http://halshs.archives-ouvertes.fr/docs/00/27/77/67/PDF/New_Economy_of
_Tourism.pdf
Travel Weekly magazine, available online at http://www.travelweekly.co.uk/
USA - Occupational Outlook Handbook, 2008-09 Edition: Travel Agents available online at
http://www.bls.gov/oco/ocos124.htm
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CHAPTER 20
Ancillary tourism services
 understand the roles of guides, couriers and animateurs in meeting tourists' needs
 appreciate the use of insurance and financial services to assist the tourist
 identify the principal sources of information in use by travel agents
 be aware of marketing and consultancy services available to the tourism industry.
2. Key areas
 Services to the tourist:

 Couriers, guides and animateurs
 Financial services
 Services to the supplier:

 Education, training
 Travel publications
 Marketing services
 Technical services
 The future for ancillary services
EXAMPLE: The Blue Badge scheme
In Britain, there are approximately 1,400 members of the Institute of Tourist Guiding (ITG)
who hold the Blue Badge qualification, the majority of them based in London where guiding
work is easiest to find.
The ITG was formed in 2002 and represents guides in England, Wales, Northern Ireland, the
Isle of Man and the Channel Islands (the Scottish Tourist Guides Association fulfils a similar
function in Scotland). While the ITG does not itself run training courses, it oversees those
120
operated in colleges and by other training providers and sets the standard for Blue Badge and
other guides.
The Guild of Registered Tour Guides is the sector's professional wing and campaigns for
professional recognition and the implementation of Blue Badge standards throughout the
industry.
What are the benefits of operating a licensing scheme for tour guides?
Benefits include:
 Ensuring that the guide had a suitable level of knowledge.
 The guide can be required to consider the impact of tours and manage the group to improve
overall tour experience.
 The ability to manage the quality of the visitor experience by requiring guides to undertake
regular training, etc.
EXAMPLE: Animateurs add to the theme park experience
Warner Bros Movie World, located on Queensland's Gold Coast, is Australia's only movie-
related theme park.
It opened 20 years ago and, throughout this time, it has included shows related to the long-time
favourite Looney Tunes cartoon characters as well as hit movies – attractions have included the
Police Academy stunt show, Batman Adventure and the Harry Potter magical experience.
Like its well-known rival, Disney, the park employs staff to dress in costume and entertain the
visitors.
This can help add to the excitement, providing picture opportunities for children and adults alike.
However, it can be hard work for the actors inside the costumes – being mobbed by eager
parents keen to get photo opportunities of their offspring; remaining in character despite being
prodded, mauled and kicked; and dealing with the heat inside large and unwieldy costumes.
The actors may form part of a stage show (see Figure 20.2) or wander around the park,
interacting with the visitors. In some cases, their work may take them further afield – the
airline Etihad, as a promotional campaign for their Queensland route, provided customers to
their holiday shop in Abu Dhabi with the opportunity to have their photo taken with Tweety
Bird and Bugs Bunny.
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How can the use of animateurs enhance the brand of the company?
The brand may be enhanced because:
 The animateurs can enhance the experience offered to customers through interactions.
 Animateurs also play a role in promoting the different activities undertaken by the company.
 This can be more memorable, enhancing the overall recall of the tourist when considering
their experience of the attraction.
Question 1.
Tourists can gather their information using a variety of guides. For each form of guide listed
below, explain why it might be beneficial for a tourist to use such an information source:
(a) Electronic audio guide in a museum
(b) Printed guide book for a destination
(c) A trained human guide (such as Blue Badge guide) providing a walking tour.
Answer Guide
(a) Audio guide:

 Accessible in many languages.
 Can provide a varied depth information - some segments provide a general overview to
a museum exhibit while other segments allow the tourist to get additional information at
the touch of a button.
 Can move around the museum at the visitors own pace.
 Can be available to start the tour at the convenience of the tourist.
(b) Printed guide book:

 Can provide extensive information, available in advance of arrival allowing planning of
visits.
 Style can be determined to suit the reader (some guide books focusing culture and
history, others on entertainment, others on cost, etc).
 Some include walking tour information and links to websites allowing additional
information to be accessed in advance of arrival.
 Can encourage other areas to be visited (finding out about lesser known attractions).
(c) Human guide:
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 Can offer high levels of interaction and can answer questions to enhance the knowledge
and experience of the tourist.
123
 Can tailor the guided tour to suit the interests of the audience.
 Can offer information outside the remit of the tour (such as places to eat).
 Can provide an element of security and safety – knowing where to visits (especially in
more unusual tourist environments such as walking tours of favelas in Rio).
Question 2.
List the different items covered on a travel insurance policy. Do you think the areas covered are
as important for domestic tourism trips as they are for international tourism trips?
Answer Guide
Travel insurance will usually include cover for:
 Cancellation or curtailment of a holiday.
 Missed departure or travel delays.
 Personal accident (such as death, loss of sight or permanent disability).
 Medical assistance and hospital cover.
 Loss or theft of property, passport or driving license.
 Hijack.
 Overseas legal assistance.
Domestic tourism may be covered by travel policies for stays over 2 nights. Tourists may feel
insurance is less necessary for medical coverage (their own healthcare arrangements would
cover their domestic needs) but they may benefit from cancellation protection, and loss of
luggage offered by travel policies.
Question 3.
Both academic education and vocational training related to tourism and the travel industry are
widely available. How can this help to improve the industry?
Answer Guide
Education can improve the skills of those working in the industry. It can also improve the
management of businesses and encourage improvements as graduates can bring new knowledge
which Small and Medium sized Enterprises (SME) managers may not be aware of.
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Assignment 1.
Read some of the articles published in the in-flight magazines published by airlines (if you cannot
obtain a printed version, many airlines publish these online). Compare the articles published.
Produce a short presentation which explains the factors influencing the topic areas covered in the
magazine. Provide a conclusion which considers why airlines produce these magazines.
Answer Guide
Topics may be related to the destinations visited, the products likely to be of interest to the
target demographic of fliers, information about travel, the airline industry, etc.
Airlines may produce these to sell their own products. They can also be used to promote
destinations so fliers consider booking more travel through the airline.
However, it is also useful to note that airlines can also make money from these by selling
advertising space, often to luxury brands.
Assignment 2.
Complete a small piece of research, asking travellers if they have used any travel-related mobile
phone applications. Find out whether this helped them to book travel, guide them to or around
the destination or to provide feedback on their travel experiences. Which applications proved
most popular? Write a report which summarizes these findings.
Answer Guide
The use of mobile technology for travel may be influenced by age and the availability of such
technology in different geographic locations. Apps used may include flight booking or hotel
reservations, recommendation sites (such as trip advisor) in-journey apps (such as TripIt) which
help manage travel booking, destination guides, restaurant recommendations (such as urban
spoon), etc.

examples
Global Travel Industry News, available online at http://www.eturbonews.com/
Tourism Society advice on appointing a consultant: http://www.tourismsociety.org/appointing

_a_consultant
Travel Trade Online magazine: www.traveltrade.org
WTMLondon (2011) World Travel Market Industry Report available online at http://www.wtm
london.com/files/onsite_wtm_industry_report_2011.pdf
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Instructor’s Manual

The Business of Tourism

For further instructor material

 Pearson Education Limited 2012

First published 1983

© Pearson Education Limited 2012

Part 1 Defining and analysing tourism and its impacts 10

Part 2 The travel and tourism product 47

8. The structure and organization of the travel and tourism industry 48

Part 3 Intermediaries in the provision of travel and tourism services 96

16. The management of visitors 97

Structure of the manual

 A restatement of the learning objectives.

 Bullet points listing key areas of importance covered in the chapter.

 A set of discussion questions designed to be useful in stimulating classroom discussion on

20 Amenities (accommodation and hospitality¸ etc.) 12

* denotes part of chapter

Defining and analysing tourism and

 recognize why tourism is an important area of study

 identify the composition and major characteristics of tourism products

 outline the various forms of tourist destination and their appeal

 explain why destinations are subject to changing fortunes.

 Defining tourism – indicators, problems with definition, reasons for definition

 Critical characteristics of tourism: intangibility, heterogeneity, inseparability and perishability

 Introducing tourist motivation and the characteristics of the tourist

 Introducing the tourist destination

3. Two in-class discussion questions

EXAMPLE: UK Quality Assurance Agency – benchmark for tourism

 demonstrate an understanding of the concepts and characteristics of tourism as an area of

academic and applied study, including being able to:

 demonstrate an understanding of the nature and characteristics of tourists and, in

 demonstrate an understanding of the products, structure of and interactions in the tourism

 demonstrate an understanding of the relationships between tourism and the communities

Question and answer guide:

Do you think all of these areas of knowledge are equally important?

EXAMPLE: Statistical definitions

Question and answer guide:

4. Questions in the text book

Inconsistency in service delivery can be reduced by training staff as well as introducing

Why is it important to have a suitable range of amenities if tourists are to be attracted to a

5. Assignments in the text book

6. Websites to provide instructors with more information and

Australian Bureau of Statistics, Defining Tourism, http://www.abs.gov.au/ausstats/abs@.nsf/0/

The development and growth of tourism up to the

 understand the relationship between technological innovation and tourism development

 The early years of tourism

 Guides and guidebooks

 The grand tour

 Development of the spas

 The rise of the seaside resort

 Expansion of travel in the nineteenth century

 The origins of mass tourism 1900–1950

3. Two in-class discussion questions

EXAMPLE: Travel writing through the ages

Question and answer guide:

Question and answer guide:

To what extent is travel linked with educational groups today?

4. Questions in the text book