See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/349669990

Tourism economics

Book · February 2021

CITATIONS READS

0 3,482

1 author:

Anna Rogova
Belgorod State University
26 PUBLICATIONS 4 CITATIONS

SEE PROFILE

All content following this page was uploaded by Anna Rogova on 28 February 2021.

The user has requested enhancement of the downloaded file.

            



  



  
      


   







 

  


 

 

 


 
   


 

    
 

 
 
   




 
 
 
 
 

 
 
   

 
 





 






   







  

  

 

 


   
   

 


 

  

  
  
  

  

!"#$
 
 


 

%  
" 
! 
& 

 

' & 
 
( 
)*
! 
& 
" 
" 
*)+,-
!
 


 



 

 
.

$  
 
.
/,/)
%  
" 
! 
& 

 

' & 
 
( 
 CONTENTS

CHAPTER, § Title Pages

INTRODUCTION 3
CHAPTER 1 BASIC CONCEPTS OF TOURISM ECONOMICS 5
§1 Theory of tourism economics 5
§2 History of the tourism economy development 9
§3 Classification of types of tourism 11
Control questions 16
Tasks 16
CHAPTER 2 TOURISM INDUSTRY AND ITS COMPONENTS 17
§1 Structure of the tourism industry 17
§2 Labour productivity 19
Control questions 21
Tasks 21
CHAPTER 3 TRAVEL AGENCY AND TOUR OPERATOR 22
ACTIVITES IN THE FIELD OF TOURISM
§1 Role of travel agent and tour operator in the tourism 22
market
§2 Mechanism of interaction between travel agents and tour 25
operators
Control questions 30
Tasks 30
CHAPTER 4 THE ECONOMIC ESSENCE OF TOURISM 31
PRODUCT

§1 Properties of tourist services 31

§2 Tourism product manufacturing 34
Control questions 36
Tasks 36
CHAPTER 5 HOTEL INDUSTRY 37
§1 The history of the hotel industry development 37
§2 Characteristics of the hotel product 38
§3 Structure of a typical hotel enterprise 43
§4 Global booking systems in hotel industry 47
Control questions 48
Tasks 49
CHAPTER 6 PROBLEMS AND PROSPECTS OF THE TOURISM 50

 ͳ
 ECONOMY DEVELOPMENT
§1 Factors of the general directions of international tourism 50
development
§2 International tourism organizations in tourism industry and 53
hospitality
§3 Development of digital technologies and innovations in 57
Tourism
Control questions 59
Tasks 59
REFERENCES 60
BASIC CONCEPTS OF TOURISM ECONOMICS 64
TEST 67

 ʹ
 INTRODUCTION

The modern stage of human development is characterized by the strengthening

of intercultural communication and the active development of tourism. According to
the World Tourism Organization (UNWTO), in 2012 the number of international
tourist arrivals reached 1,035 million people a year. Tourism received intensive
development only in the second half of the twentieth century, precisely in the age of
the rapid development of technology, technology, public relations, when it became
obvious that the service sector, which includes the tourism business, began to take
priority in the world market. International tourism, in addition to its enormous
economic importance, plays an important role in expanding the boundaries of mutual
understanding and trust between people of different cultures. It plays an important
role in the establishment of interethnic, interfaith ties allows the peoples of the world
to study each other's culture and carry out close cooperation in all areas.
The tourism industry is a very specific and multifaceted sphere of economic
activity, uniting enterprises that produce both tangible and intangible products
(services). There are many specific features in the field of economic aspects of the
management of the tourism industry, since its effective functioning is highly
dependent on the influence of various factors, such as political, economic, social,
environmental, etc. This is one of the specific areas of the economy, which directly
depends on the whims of nature and in which the factor of seasonality is one of the
fundamental and determining factors in the functioning of enterprises in the tourism
industry.
Tourism Economics is a scientific discipline that studies the system of economic
relations arising from the production, distribution and consumption of tourism
products and services that satisfy the needs of the tourist. The economic significance
of tourism is very significant for many national economies, including the growing
economic contribution of tourism to the Russian economy.
The relevance of studying the discipline "Economics of Tourism" is due to the
fact that the successful development of the tourism business in Russia is possible
only on condition of the formation of highly qualified human resources at all levels of
tourism management, capable of making competent and well-grounded economic
decisions. In this regard, obtaining professional economic knowledge, skills and
competencies is a prerequisite for training personnel for the tourism sector.
The discipline "Tourism Economics" is an integral part of professional training
for the tourism sector and belongs to the block of disciplines of the variable (profile)
part, established by the university. The work program of the discipline takes into
account the requirements of the Federal State Educational Standards of Higher
Professional Education in the areas of training 43.03.02 "Tourism" (qualification

 ͵
(degree) bachelor), 43.03.01 "Service" (qualification (degree) bachelor), 38.03.01
"Economics" (qualification (degree) bachelor), 38.03.02 "Management"
(qualification (degree) bachelor ), presented to graduates of the relevant areas in the
field of economic knowledge, skills, abilities and competencies.
The purpose of the textbook is to provide students with information for the
acquisition of knowledge, abilities, skills, value attitudes and competencies in the
field of tourism economics, economic activity of tourism enterprises, organizing
entrepreneurial activities in tourism, making economic decisions in market conditions
in the field of tourism, allowing students to conduct professional activity in the field
of tourism and correctly understand and use the economic laws in force in the tourism
market.
The subject of tourism economics is the economic relations arising in the
process of production, distribution and consumption of tourism products (services)
that satisfy the needs of tourists.
The object of the tourism economy is the economic patterns and methods of
their effective use at the mega, macro, meso and micro levels in the field of tourism.
The textbook examines the key aspects of tourism economics, studies the
patterns of functioning and development of the tourism market, examines in detail the
specifics of economic management of enterprises in the tourism industry.

 Ͷ
 CHAPTER 1. BASIC CONCEPTS OF TOURISM ECONOMICS

1.1.The theory of tourism economics

Tourism emerged at that period of development of society, when a person

stopped working for the sake of survival, taking care of the daily bread (for today and
tomorrow), and began to think about rest and the pleasures associated with it, where
travel and tourism took a certain place. Tourism is, first of all, getting pleasure,
satisfaction of curiosity. Curiosity (curiosity) is one of the physiological needs of the
entire animal world, including humans. Consequently, curiosity is one of the stimuli
of life, and financial resources are required to satisfy it.
When, in a primitive society, a person in search of food (beast, fish, berries, etc.)
wandered through the unexplored expanses of the earth, this was not yet tourism,
since the primitive man made his "journey" in order to the first vital need - to survive
... After the first vital need has ceased to stand in front of a person, he has a second
necessary need - the need for information, and therefore travel.
A person's need for obtaining information about new places, for traveling as a
means of obtaining this information is an objective law of the development of human
society. Traveling brings pleasure and relaxation to a person.
People have always traveled at their own risk. Very often, the purpose of such a
trip is to get a person's impressions of new places and natural phenomena, etc.
At a certain stage in the development of the economy, when the need for travel
increased sharply, manufacturers of these services appeared. This led to the
formation of a special type of product - tourism, which can be bought and sold on the
consumer market.
The emergence of tourism as a commodity required the formation of an
appropriate material and technical base, the availability of qualified personnel to
serve tourists and targeted management of tourist business entities. All this
necessitated the organizational separation of tourism into an independent branch of
the national economy [1].
The providers of services intended to serve tourists (traveling people) have
merged into the tourism industry. Tourism is not a commodity of the first vital
necessity, therefore, it becomes an essential human need only at a certain level of his
income and at a certain level of society's wealth.
The year of the emergence of tourism in Russia is considered to be 1885. This
year in St. Petersburg, the first large tourist organization in Russia was created under
the name "Enterprise for public travel to all countries of the world." On March 15,
1885, the Russian Touring Club (Society of Cyclists-Tourists) was established in St.
Petersburg. In 1901, the Russian Tourist Society began its work. From 1899 to 1914

 ͷ
the magazine "Russian tourist" was published. In the competition announced in this
PDJD]LQH IRU WKH GHILQLWLRQ RI WRXULVP 5 GH 3DN ZRQ ZKR ZURWH ³7RXULVP LV WKH
ability to walk. Perhaps this skill needs to be acquired, perhaps this is a science that
needs to be studied and practiced in it. You need to be able to become interested in
the cloud that rushes in the sky, in the flowers of nature, in various sounds, to catch
the picturesque and everyday side of all the feelings of being in the open air and
enjoy them completely. Add to this a little human pride in realizing the victory over
the removal of obstacles and you will get a complete picture of this completely new
and so pleasant state of your soul [2].
An accurate definition of tourism should be based on the following economic
characteristics:
- tourism is the result of the movement of people along various tourist routes;
- tourism always includes two elements: traveling to the destination and
stopping there;
- travel means leaving the country (or region) where the tourist permanently
resides;
- tourism is the temporary movement of a tourist along a tourist route, that is, a
tourist returns after some time to his place of permanent residence;
- Tourism is a journey that does not include profit-making activities.
The modern definition of tourism, adopted by the UN, is that tourism is an
active vacation that affects health improvement, physical development of a person,
associated with movement outside the permanent place of residence.
Tourism is characterized by the temporary movement of the population from
one region (district, city, country) to another, if it is not associated with a change of
place of residence and work. Tourism is the pleasure associated with travel for
recreation, medical treatment, participation in cultural, scientific or business
meetings.
Tourism as a product is sold in the form of services. A tourism service, like a
service, in general, is an action of a certain use value, expressed in a useful effect that
satisfies a particular human need. In this case, a service can be provided either by a
thing, that is, with the help of a product, or in the process of functioning of the living
labor itself [3].
There are two modes of production of services determine two types of services
themselves. The first type of services is such services that are mediated by a thing,
they deal with consumer demand. The provision of services of this kind in its content
is no different from the process of labor in material production; it is identical to it,
since all five elements of the labor process are present here: the means of labor,
objects of labor, labor itself (that is, purposeful human activity), technology and
organization. This gives reason to call services of the first type material (production).

 ͸
 The second type of service is a service whose action is directed directly at a
person or the environment around him. Services of this type are not associated with
material products, their production is inseparable from consumption. The creation of
these services coincides with their consumption. These services are intangible (non-
productive). These include services for the implementation of tourist vouchers,
serving tourists in hotels and catering establishments, organizing concert
performances, etc.
All activities of a tourist business entity are associated with the provision of
various services to tourists. Tourists are consumers of services produced by business
entities.
Tourism business entities perform three functions:
- production of a tourist product (production of tourist goods and the provision
of tourism services);
- implementation of a tourist product;
- organization of consumption of tours and individual tourism services.
In the process of selling and organizing the consumption of a tourist product,
tourists are serviced, since the activity of selling and organizing consumption is a
service process. The presence of these three functions makes it possible to unite all
tourism business entities into a single branch of tourism.
In order to establish the significance of tourism and to describe more fully the
scope of its activity, it is necessary, first of all, to highlight the various groups of
subjects that interact in tourism:
- tourists are people who experience various mental and physical needs, the
nature of which determines the directions and types of participation of these people in
tourist activities [4];
- organizations that provide tourists with goods and services. These are
entrepreneurs who see tourism as an opportunity to make a profit by providing goods
and services, taking into account the demand in the tourism market;
- local authorities. Consider tourism as an important factor in the economy
related to the income that local citizens can receive from this business in the form of
taxes paid to the local budget;
-the host. The local population, who perceives tourism primarily as a factor in
the employment of the population. For this group, the result of interaction with
tourists, including foreign ones, is important.
Thus, tourism can be defined as a set of phenomena and relationships arising
from the interaction of tourists, suppliers, local authorities and local people in the
process of tourism activities.
The economy of the tourism business is, on the one hand, a set of social
relations arising in the implementation of tourist activities, that is, in the production,

 ͹
distribution, exchange and consumption of tourist services (tourist products), it is
studied by economic theory, and on the other hand, it is a component of the national
economic complex of the country as a catalyst for economic growth.
Tourism economics covers:
- creation and provision of travel services in the volumes and within the terms
stipulated by the travel arrangement agreement;
- effective use of the existing and creation of a new material, technical and
resource base of tourism;
- providing foreign exchange earnings to the state (region) budget and making a
profit by tourism entities;
- cooperation of tourist activities;
- promoting employment of the population and meeting its various needs [5].
The main tasks of the economic activity of tourism business entities include the
following:
a) creation (acquisition) of a tourist product;
b) the formation of a market for tourist services;
c) improving tourism infrastructure;
d) the sale of tourist services through the system of wholesale and retail trade
using computer technology;
e) priority development of domestic and inbound tourism.
The subject of tourism economics is the economic relations that arise and
develop in the field of tourism in the process of production, distribution and
consumption of tourism products and services designed to meet the needs of the
consumer.
In modern conditions, the economy of tourism considers tourism as a complex
socio-economic organism with many owners and subjects of activity, although the
discussion about what tourism is: a branch of the economy or an intersectoral
complex continues to this day.
The activities of this complex socio-economic organism, in turn, affect the
functioning of:
- individual economic agents (microeconomics);
- the national economy as a whole (macroeconomics);
- certain subsystems of the national economy or sectors of the national economy
(mesoeconomics);
Thus, the economics of tourism is a scientific discipline that studies the sectoral
aspects of economic relations in this area of activity, as well as the processes and
phenomena that occur in the process of production, formation, exchange and
consumption of tourism products and services, both internally and externally markets
[6].

 ͺ
 1.2. History of the tourism economy development

Tourism has undergone many changes over the past century. The peculiarity of
this period is that the changes concerned mainly the form and content of tourism.
Most of the changes have to do with the way travel needs and wants are met.
In the past, tourism was not considered as an important area of economic
activity, its production activity was not significant and its development was not given
special importance. Over time, tourism began to gradually develop qualitatively and
quantitatively, its economic importance increased. In the 1980s, a clear
understanding of the importance of tourism and its interdependence with other
economic and social activities emerged. Only then did economists see the
importance of tourism as an economic phenomenon and the role it can play for the
development of the world and national economies. The development of tourism
statistics made it possible to obtain data to determine the economic indicators of its
development. Countries such as Austria, Canada, France, Spain, Sweden, Great
Britain, and the United States of America were among the first to conduct economic
research in tourism and develop reports on the economic contribution of tourism to
the national economy. The study of tourism economics has been especially active in
the past 50 years, but the number of scientists studying the problems of tourism
economics is significantly lower than in other areas of economic activity. A serious
study of tourism economics began in the mid-1960s with the seminal book by M.
Clawson and J. Kletch (Clawson M. and Knetsch J. L., 1966) on the economics of
outdoor recreation [7]. In 1970, Gray H. P. published a book on the relationship
between international travel and trade3. From that moment on, the interest of
economists in the study of tourism as a sphere of economic activity intensified. In
1995, the first scientific journal on tourism economics, Tourism Economics, was
published. This magazine examines the problems of tourism economics and finance
around the world. Articles are devoted to the individual components of the tourist
product (accommodation, restaurants, attractions, transport, entertainment), various
tourist activities, as well as the tourism economy at the micro and macro levels,
including the market structure; strategic planning, marketing, finance, economic
development in the field of tourism.
In 2007, the International Association for Tourism Economics (IATE) was
established. The main goals of IATE5 are:
- to promote the development and application of tourism economics as a science
and decision-making tool,
- improve communication and contacts between teachers, researchers and
students in the field of tourism economics around the world,

 ͻ
 - improve interdisciplinary links between tourism economics and the economics
of other fields of activity and other disciplines,
- to develop and encourage cooperation between educational institutions and
research institutions in order to promote knowledge about the concept and application
of economic analysis to tourism issues.
One of the most traditional areas of economic research in tourism is the
assessment of its contribution to the development of the economy of both individual
countries and tourist destinations.
The most important areas of research in tourism economics are the study of
effective demand and its forecasting. Forecasting is considered as one of the most
important tools for the formation of long-term policy in the field of tourism.
Pricing issues occupy a significant place in economic research. Price
competition in tourism plays a significant role and contributes to the improvement of
the quality of tourism products, since higher quality products can be sold at higher
prices.
The structure of the tourism market depends on many interrelated
characteristics, among them: the number of sellers, the availability and degree of
product differentiation, the cost structure, the presence of barriers to market entry and
the degree of vertical and horizontal integration [8].
The ways in which the government can influence tourism markets are also being
explored, including taxes and subsidies, regulation, price controls, competition laws
and the provision of information to the tourism industry participants.
The UNWTO International Recommendations for Tourism Statistics
(IRST2008), adopted in 2008, have played a very important role in the development
of the tourism economy as a science [9]. The Recommended Framework for Tourism
Statistics identifies tourism through a tourism-specific conceptual framework. The
progress made in developing recommendations for tourism statistics now opens up
new research opportunities for economists. These include measuring the relationship
of tourism with other industries, as well as comparing tourism activities with other
major industries in terms of economic performance, employment, contribution to
national and regional economies, and comparisons between regions, countries or
groups of countries. Researchers now have more opportunities to help all
stakeholders in tourism better understand the economic importance of tourism
activities, its role in all industries that produce various goods and services for tourists.
Thus, tourism economics can act as a tool for improving the quality of strategic
management and planning in the tourism industry and for increasing the
competitiveness of tourism [11].
Economic research should examine and take into account the impact of the
continuing development of information and communication technologies (ICT) on

 ͳͲ
supply structure, competitiveness, efficiency, innovation diffusion and productivity.
In fact, all these changes have a significant impact on the tourism economy. The
oligopolistic nature of the various tourism sectors shows that firms seek to control
their supply chains through vertical and horizontal integration and through the
formation of strategic alliances.
Game theory is also of particular importance in enhancing the understanding of
the behavior and strategies of travel service providers in various tourism sectors.
Over the years, the tourism industry has experienced many financial crises, but
the impact of financial instability is still not sufficiently researched. The
consequences of financial crises and their impact on the development of new tourism
products, attraction of investments, changes in marketing are not fully understood. In
addition, the issues of the behavior of tourist companies in the market during
economic downturns remain poorly studied. In addition, very little is known about
the impact of the financial and economic crisis on MICE tourism [10].
Productivity measurement is a new area of research in tourism economics, and
this has led to increased research in the areas of investment, innovation,
entrepreneurship and competition. The performance indicators in tourism of various
countries is relatively little researched. The main problem is that when using
production functions in tourism it is difficult to establish what are the inputs and
outputs of the tourism sector.
Competitiveness in tourism is considered one of the most important areas of
economic research.
Tourism is an extremely complex socio-economic phenomenon, covering almost
all areas of activity. In this regard, it is necessary to expand the problems studied
within the framework of economic science and enrich it both through new concepts,
methods and models, and through the expansion of interdisciplinary research.

1.3. The classification of types of tourism

In order to classify modern tourism, it is necessary to establish its most essential

classification features. It is advisable to classify by geography, the direction of the
tourist flow, the purpose of the trip, the mode of travel, the means of accommodation
for tourists, the number of participants, organizational and legal forms, etc.
Characteristics of the main types of tourism:
1. Domestic tourism - travel for tourist purposes of citizens of a country
permanently residing within the borders of their state without engaging in paid
activities in places of temporary stay.
Domestic tourism is not associated with border crossing and tourist formalities.
National currency, language, documents remain the same.

 ͳͳ
 Domestic tourism accounts for 80-90% of travel in the world. The cost of it is
5-10 times higher than the cost of international tourism. It is especially popular in the
USA.
2. International tourism covers travel for tourist purposes outside the country of
permanent residence without engaging in paid activities in the place of temporary
residence. On average, about 65% of all international tourist travel is in Europe,
about 20% in America and about 15% in other regions. The development of
international tourism in countries, mainly receiving tourists, is due to the desire to
increase the inflow of foreign exchange and create new jobs.
Departure of tourists is accompanied by an outflow of the national currency.
International payments for tourist transactions of this kind are recorded in the
liabilities of the balance of payments of the country - the exporter of tourists, and
tourism itself is called "passive".
The division into "active" and "passive" tourism is inherent only in international
tourism.
Recently, there has been a tendency for the convergence of domestic and
international tourism, which is due to the simplification of tourist formalities (for
example, the Schengen Agreement in a united Europe).
3. Tourism inbound - travel within the country of persons who do not reside in it
permanently, for tourist purposes without engaging in paid activities.
4. Outbound tourism - travel of persons permanently residing in one country to
another country for similar purposes without engaging in paid activities in the visited
country.
5. Recreational tourism. Tourism for the purpose of recreation is the most
widespread form for a number of states. Trips of foreign tourists to Spain, Italy,
France, Austria pursue, above all, this very goal. Recreational tourism is
characterized by the length of travel, the small number of cities that are included in
the route, the extensive use of air transport, and above all charter flights.
Leisure trips are very diverse and can include entertainment and entertainment
programs (theater, cinema, festivals, etc.), hobby activities (hunting, fishing, music,
art, etc.), ethnic hikes related to the study of the national culture of the host country,
etc.
6. Wellness rest is of a purely personal, individual character. However, it is not
uncommon for tourists to unite for joint trips, which aims to obtain group discounts
for travel. The usual duration of a tour for treatment is 24-28 days, which is
significantly longer than for other types of tourism. Wellness rest, depending on the
means of influence on the human body, is subdivided into climatic, balneological,
sea, mud therapy, etc.

 ͳʹ
 7. Educational (excursion) tourism. This type of tourism includes travel and
travel for educational purposes. An excursion as a form of knowledge and a form of
leisure performs the functions of expanding horizons and intellect. Automobile
tourism is one of the types of educational trips. Compared to travel by other types of
vehicles, travel by car and bus provides tourists with a much greater cognitive
opportunity.
8. Professional and business tourism. This type of tourism includes travel for
business purposes. Life in a modern civilized society necessitates international
contacts. Business trips have recently become widespread.
A number of travel agencies specialize in organizing group trips for
businessmen for various purposes. A big advantage of business tourism is the
possibility of organizing it in a low season. At the same time, travel agencies can
provide both purely tourist services - transport, accommodation, meals, excursion
services, and specific ones - studying information, collecting data on possible trade
partners, translations, providing the necessary economic materials, organizing
business meetings, etc. Large congress centers with meeting rooms and facilities for
accommodating visitors are being created especially for this. Often, congress
participants are accompanied by their family members, for whom the forum
organizers, together with the travel agency, offer a purely tourist program. Often the
participants themselves get acquainted with the sights of the city, and after the end of
the congress they make tours around the country.
A distinctive feature of this type of tourism is that participants in business
meetings spend much more money during their stay in the country than an ordinary
tourist. Therefore, many states strive to host international forums and other similar
events.
9. Scientific tourism. Travel for the purpose of education, professional
development are relatively new in international tourism.
Educational trips abroad have become one of the established segments of the
Russian tourist business. The most popular language learning trips are especially to
the UK and other English-speaking countries.
10. Sports tourism is currently very popular. The main task of these tours is to
provide the opportunity for tourists to practice their chosen sport. Sports tourism
requires the necessary base: a variety of equipment, special routes, lifts, sports
grounds and facilities. One of the main requirements for sports tours is to ensure the
safety of tourists.
Sports tours, depending on the purpose of the trip, are divided into two types:
active and passive. In the first case, the basis is being engaged in any kind of sport,
in the second - interest in sports, for example, attending competitions.

 ͳ͵
 11. "Shop tours" are typical for Russia and the CIS countries. The purpose of
trips abroad is to purchase consumer goods for their subsequent sale (shoes, knitwear
and other goods - in Turkey, Italy, Portugal, Syria; summer textiles - in Indonesia; fur
coats - in Greece and Argentina; furniture - in Poland and Italy; TV and radio goods
- in the UAE; cars - in Germany, Sweden, Finland, Holland).
Shuttle business brings a tangible increase to the budget of these countries. For
example, in Turkey "shuttle traders" annually purchase goods worth $ 8-10 billion.
The government of the country strongly supports shopping tourism.
12. Adventure tourism is a kind of recreation and provides not only the stay of
tourists in an attractive place for them, but also engaging in an unusual type of
activity ("royal hunting", "salmon fishing", "search for pirate treasures", etc.).
Adventure tourism is divided into several types:
- hiking expeditions;
- Safari tours (hunting, fishing, catching butterflies, etc.);
- sea travel (yachting).
The geography and topics of adventure tours are quite extensive and varied.
These are usually group tours. A specific feature of such tourism is the receipt of
various licenses that allow hunting, fishing, and trophy export. Adventure tourism
comes with a certain risk, therefore highly qualified instructors are needed to ensure
the safety of such tours. This type of tourism has a rather high cost, and it can be
classified as an elite vacation.
13. Religious (pilgrimage) tourism is currently in demand and popularity. In
tourism for religious purposes, several types can be distinguished:
- pilgrimage (visiting holy places to worship relics);
- educational trips (acquaintance with religious monuments, history of religion,
culture of religion);
- scientific trips (trips of historians and other specialists dealing with religious
issues, etc.)
A serious problem in this type of tourism is the issue of training highly qualified
personnel. It is important that they can not only show historical and architectural
sights, but also be familiar with spiritual and religious values.
14. Nostalgic tourism. This type of tourism is based on the need of people to
visit relatives, deposits and residence of loved ones and occupies an important place
in international tourist exchange. So, among tourists - immigrants from Germany,
tours around the Volga region are popular, among Jews - Israel, etc.
15. Ecotourism aims to create economic incentives to preserve the environment.
The concept of "ecotourism" covers a wide range of travel - from small educational
tours for schoolchildren to regular tourist programs in national parks and reserves.

 ͳͶ
The profit received from this type of tourism can be partially directed to
environmental protection measures.
16. Exotic tourism. Recently, there have been tours that are striking in their
uniqueness (travel to the moon, a space cruise, in which tourists can experience a
state of weightlessness and see space). In addition, for example, the French company
APSARA organizes icebreaker tours to Antarctica and the Arctic [12]. The first
cruise to Antarctica was organized in 1989. Currently, tourists travel on highly
comfortable icebreakers with a sauna, swimming pool, gymnasium and conference
halls. The icebreaker is equipped with boats and helicopters for excursions. The trip
includes accommodation in these exotic places, where tourists observe the life of the
local "inhabitants" - seals, walruses and penguins. In 1997, about 10 thousand
tourists visited Antarctica, paying for the tour from 9 to 16 thousand dollars.
There are many who want to get acquainted with the underwater world. The
most promising project in this direction is traveling on a transparent submarine. One
of its routes is planned to be laid to the crash site of the Titanic. According to
statistics, 46 tourist submarines have been in operation since 1985. In 1996, the
number of tourists who visited the depths of the seas and oceans amounted to more
than 2 million, while the profit of travel organizers was $ 147 million.
In Germany, the former prison cell is popular among tourists - lovers of
exoticism, where you can feel like a prisoner. The chamber furnishings consist of a
narrow bed and a chair, its size is 4 incomplete steps, the air volume is 22.3 cubic
meters. m, according to the inscription on the door.
The Paris Odeon Hotel has developed a route for its clients that exactly repeats
the last earthly journey of Princess Diana. Those wishing to touch the mystery of the
tragedy will proceed in a black Mercedes from the Ritz Hotel to the tunnel - the place
of the disaster. Tour cost - $ 25.
17. The consumer focus forces tourism service providers to seek new market
segments. Organization of wedding tours is becoming a profitable business.
It is profitable for travel agencies to engage in this type of tourism, since
accommodation costs are significantly reduced due to the provision of high discounts
by hotels to newlyweds (up to 60-80%). The package of tourist services, besides the
basic ones, includes video filming, a limousine, flowers, champagne, etc. If the
wedding ceremony is planned to be performed on a trip, it will be organized as a
memorable folk festival. Practice shows that newlyweds prefer to relax in the
Caribbean or in the countries of Southeast Asia, Italy is popular in Europe, and Las
Vegas in the USA [13].
18. Social tourism is travel, subsidized and funds allocated by the state for social
needs. The purpose of social tourism is not to make a profit, but to support people
with low incomes to realize their right to vacation. This type of tourism is

 ͳͷ
widespread abroad. In the former USSR, this type of tourism was also popular,
accounting for almost 80% of domestic tourism and 50% of international. The state
directed huge funds to strengthen the material and technical base of tourism. In
addition to direct investment, the state insurance and trade union funds provided
preferential vouchers.
During the transition to market relations, the lack of budgetary funds for
subsidies to social tourism in Russia led to the alienation of the overwhelming
majority of the population, especially the poorly protected layers, from travel. The
effectiveness of social assistance programs in Russia, calculated as the share of funds
received by the poorest strata of the population, in the total social contributions was
only 19%, while the same indicator in most developed countries ranges from 30-50%.
19. Organized tourism is travel by individuals or groups of tourists organized by
a travel company. Organized tourists acquire the right to a tour by purchasing a
tourist voucher. Moreover, the number of services may be different. For example,
tourists can only buy a meal card or a set of services, including transport services,
meals, accommodation, transfers, excursion services, etc.

Control questions

1. What is travel?
2. What does the concept of "tourism" mean?
3. What are the features of tourism?
4. What are the main criteria for classifying tourism?
5. What are the main criteria for classifying tourists.

Task

Situational task 1. Tourists at the high-mountainous resort of Isola-2000

(France) paid for three double rooms for a group of 6 people. Accommodation was
paid in full. One of the tourists did not come. Upon departure, the reception
manager demanded a surcharge for a double room in which only one tourist lived.
1. Are the hotel's claims legal?
2. What should tourists do in this situation?

 ͳ͸
tourism business is impossible for a wide range of consumers. At the same time,
despite its socially humane role, tourism is transforming the environment. Reducing
damage from the impact of the tourism industry on the environment is regulated at
the state and international levels through: environmental education, limiting the
tourist and recreational load on natural resources, tax regulation [16].
When considering tourist and recreational resources, two types of assessments
are most often used: qualitative and quantitative.
Quantification includes:
1) indicators of the volume of reserves required to determine the potential
capacity of territorial recreational systems, optimize loads;
2) indicators of the area of distribution of resources favorable for recreational
use, the establishment of the boundaries of sanitary districts;
3) the duration of the comfortable season for the use of recreational resources,
which determine the seasonality of the use and development of tourism.
A qualitative assessment of recreational resources includes the degree of
favorable properties for a particular type or cycle of recreational activities:
expressiveness, contrast, majesty, the ability of natural recreational resources to
awaken positive emotions.
The value of recreational resources, like natural resources, should generally be
determined in the same way as the value of a country's national wealth, and it is
necessary to make allowances for the recreational value of the territory. The
economic parameters of the products of recreational activities and the economic
assessment of recreational resources are closely related to the type of resource, its
quality, distance from the region of demand, technology of use, and the state of the
environment. Consequently, the economic assessment of recreational resources
should be a system of indicators reflecting the economic results of recreational
activities, taking into account their qualitative properties.
The purpose of the economic assessment is the need to objectively reflect what
the national economy and society as a whole lose when a recreational resource is
destroyed or when it is abandoned in the territory where this resource is intended for
other economic activities [17].

2.2. Labor productivity in tourism

To carry out their activities, tourist entities must have a variety of means of
work. The totality of means of labor functioning in tourism constitutes its material
and technical base. The material and technical base of tourism includes a network of
tourist facilities and their technical equipment (equipment, tools, vehicles and other
fixed assets).

 ͳͻ
 Classification of objects of the material and technical base of tourism.
By types of services provided:
1. Enterprises providing a full range of tourism services.
2. Enterprises intended for organizing a trip, for accommodation, transport
services, cultural services, excursion services.
By economic elements:
1. Fixed assets.
2. Revolving funds.
By type of property:
1. Own.
2. Rented.
Labor force is the sum of the physical and mental abilities of a person, which he
uses to produce material goods and services. Labor productivity is the degree of
efficiency in the use of labor, the ability to produce a certain amount of use values
per unit of labor time. Labor productivity can be hourly, shift, monthly, quarterly,
annual. Labor productivity is measured in two ways:
1. Direct method. Shows the production of products and services per employee.
Generation is measured as the ratio of revenue from the sale of services to the
average number of employees.
2. Reverse method. Shows the labor intensity of the product. Labor intensity is
measured in man-hours and is determined by the ratio of the fund of spent working
time to the amount of products produced in physical terms (units, pcs, kg).
A decrease in labor intensity can occur not only due to technical progress, but
also due to the compaction of working time (i.e., due to the elimination of
unproductive losses, working time, and an increase in labor intensity). The growth in
output causes, other things being equal, an additional increase in the volume of sales
of tourism services. Labor productivity of employees is characterized by the
following indicators:
1. Labor productivity to valuation [18].
2. Labor productivity in physical terms - shows how many tourists are served by
one average employee of the tourism industry and is measured by the ratio of the
number of tourists to the average number of employees in the tourism industry.
3. The complex indicator of the dynamics of labor efficiency, means the level of
efficiency in the use of labor in the industry and is the geometric mean of the product
of two indices of labor productivity in value and labor productivity in physical terms
(considered as the square root of the product 1 * 2).
A large number of factors affect the efficiency of the use of labor and an
increase in the productivity of workers:

 ʹͲ
 1. External factors (intensification of the industry and scientific and
technological progress, equipping tourism industry enterprises with the latest
equipment and vehicles, measures to train qualified workers and improve their
qualifications).
2. Internal factors (production of new, better quality services, improvement of
tourist service forms, application of methods of rationing and stimulation of labor,
introduction of measures of scientific organization of labor - NOT - a system of
measures aimed at improving the organization and maintenance of workplaces,
improving working conditions, observance of labor discipline, development of
optimal modes of work and rest, improvement of techniques and methods of work;
growth in the volume of services) [19].

Control questions
1. What is strategy?
2. What is meant by the concept of "factor"?
3. What are the main components of political factors.
4. What are the characteristics of socio-economic factors?
5. What is meant by natural and climatic factors?
6. What is the impact of man-made factors on the environment?

Tasks
From known sources of information, find the following information:
- dynamics of development of the sphere of tourist services in Russia;
- dynamics of development of the sphere of tourist services in the USA;
- the dynamics of training managers for the travel industry in Russia.

 ʹͳ
 CHAPTER 3. TRAVEL AGENCY AND TOUR OPERATOR ACTIVITES
IN THE FIELD OF TOURISM

3.1. The role of travel agent and tour operator in the tourism market

Organizations involved in the preparation and sale of tours are called tourist and
excursion organizations. In practice, they can be called differently (travel agency,
travel agency, travel agency), but in terms of the type of entrepreneurial activity in
the tourism market, they are divided into 2 groups: travel agents and tour operators.
A tour operator is an organization engaged in the packaging of tours and the
formation of a range of services for tourists. Tour operators develop tourist routes,
saturate them with services through interaction with service providers, prepare
advertising and information publications for their tours, calculate prices for tours,
transfer tours to a travel agent for their subsequent sale to tourists. A travel agent is
an intermediary organization that sells tours formed by a tour operator.
The main functions of tourist organizations:
1. Component - a complete set of the tour from separate services.
2. Service - serving tourists on the route, as well as serving tourists in the office
when selling a tour.
3. Warranty - involves the provision of guarantees for prepaid travel services.
As a rule, a tour operator is a large company with a head office and several
branches (agent network). At the same time, regardless of the existing agent
network, the operator enters into agency agreements with independent travel agencies
for the implementation of their tours. The more tour operators have travel agent
partners, the wider the sales and the higher the profit. Key differences between
operator and agent:
1. According to the income system.
A tour operator buys some tourism product and its profit is formed from the
difference between the purchase price and the sale price.
The travel agent acts as a retailer, his profit is derived from commissions for
selling someone else's travel product.
2. By belonging to a tourist product [20].
The tour operator always has a stock of travel product to sell, and the travel
agent only requests a specific product when the client expresses a buying interest.
By type of activity, tour operators are:
1. Operators of the mass market. A large number of tour packages are sold,
which often use charter flights to specific destinations (mainly mass tourism).
2. Specialized operators - tour operators specializing in a specific product or
market segment:

 ʹʹ
 - tour operators of special interest (sports and adventure tourism, safari
organization, etc.);
- operators of special destination;
- tour operators of a certain clientele (youth tours, business tours);
- tour operators of special accommodations;
- tour operators using a certain type of transport.
At the place of activity, tour operators are [21]:
1. Local (domestic) operators - targeting tour packages whose destination is
within the country of origin.
2. Outbound operators - orient the tour packages to foreign countries.
3. Reception Operators - based at the destination and serving incoming foreign
tourists for the benefit of other operators and agents.
Proactive tour operators are tour operators that send tourists abroad or to other
regions by agreement with the host operators or directly with tourist enterprises.
Receptive tour operators - tour operators at the reception, i.e. completing tours
and service programs at the place of reception and service of tourists, using direct
contracts with service providers.
The main tasks of the travel agency:
1. Full and wide coverage of leisure and travel opportunities for all available
tours, tourist centers and destinations.
2. Promotion of this information through advertising.
3. Organization of the sale of a tourist product.
Classification of travel agents depending on the form:
1. Purely travel agencies for the sale of tours formed by the tour operator on a
commission basis.
2. Transport and travel agencies (creation of joint ventures with transport
organizations).
3. Agencies at the tour operator.
Depending on the specialization:
1. Multidisciplinary (provide comprehensive services to all types of clients).
2. Specialized travel agencies (specializing in organizing business travel for
large campaigns, including congress services, as well as leisure trips).
Depending on the degree of dependence on the tour operator, there are:
1. independent - selling tours of almost any tour operator of their choice. The
agent himself decides which operator to work with, basing his choice on the range of
tour operators, his own work experience, commercial interests (analyzing the selling
prices of tour operators and the size of the commission), etc.;
2. partially dependent - bound by the obligation to sell tours of a certain tour
operator in a specific area of work. For example, the agency offers tours of any tour

 ʹ͵
operator in all directions, except for Turkey, trips to which are offered only from a
specific operator;
3. authorized - offering tours only for a specific operator, that is, they are a kind
of operator's representative offices in regional markets [22];
4. retail. Retailing agencies have appeared in Russia relatively recently. The
essence of a retail representative office is that a well-known tour operator gives the
agent the right to use its own trademark (name, logo, slogan) for advertising
purposes, even makes some investments in the agent (for example, for the purchase
or renovation of an office, purchase of office equipment, an advertising campaign).
In exchange for this, the retail agency undertakes to supply the tour operator with a
certain number of tourists each reporting period (for example, one hundred people
per month). Unlike franchising, the retail relationship between a tour operator and a
travel agent does not imply a separate payment by the latter for using the trademark
(and even capital) of the tour operator; on the contrary, the agent receives a certain
commission for each trip sold by the tour operator. The only responsibility of the
agent is to sell a certain number of tours of the operator during the reporting period.
It is also worth noting that the retail agency is not authorized. It has the right to trade
not only the tours of the operator whose trademark it uses. Similar to tour operators,
agencies can be single-profile (offering a narrow range of tours and destinations) and
multi-profile.
By the volume of work performed and by the forms of cooperation between the
agency and the operator, the following can be distinguished:
1. agencies working on risk-free schemes - that is, booking vouchers with a tour
operator only if there is a real client (usually who has made a certain prepayment).
This form of cooperation between the agent and the operator is the least risky for the
agency, although the size of the agent's commission is standard. In addition, agencies
that prefer not to take risks will most likely not be able to serve a large number of
clients, especially during peak dates (due to the fact that at the time of the appearance
of real clients, there may simply not be free places on the tours offered by the
operator);
2. Agencies working on risky schemes - assume in their work the possibility of
buying or irrevocable booking of blocks of places in tours offered by the operator in
order to guarantee the settlement of future clients of the agency. This means that,
having his own block of places on the tours organized by the tour operator, the agent
gets the opportunity to send all his clients on the trip without prior agreement of the
availability of places with the tour operator. This not only simplifies the agency's
current work, but can also be materially more profitable than working on one-time
requests, since any tour operator will give an increased commission to its "wholesale"
agents.

 ʹͶ
 3.2. The mechanism of interaction between travel agents and tour operators

The legal status of cooperating operators and agents is enshrined in the agency
agreement, the subject of which is the delegation by the operator to the agent of the
right to sell their own tours for a set amount of commission.
Responsibilities of the agent in accordance with the model agency agreement
[23]:
1. Bringing reliable information about the upcoming tour organized by the tour
operator.
2. Sale of the tour after pre-booking and receiving confirmation of the booking
conditions from the operator.
3. Collecting the necessary information and documents from the client and
timely sending them to the tour operator.
4. Timely payment for the tour by the tour operator.
The tour operator under the agency agreement undertakes:
1. Provide the agent with information, advertising, technological and other
materials necessary for the promotion and sale of the tourist product.
2. Inform the agent about the requirements and conditions imposed by the tourist
from foreign suppliers of air carriers, consular, customs and other institutions.
3. Provide the agent with comprehensive information about the peculiarities of
the trip, as well as the dangers that tourists may encounter.
4. Not later than the deadline from the date of receipt of the booking request,
confirm the possibility of organizing the tour according to the stated conditions.
5. Issue invoices for the requested tour product [24].
6. Pay the agent a commission in the amount established by the agency
agreement or a specific proposal of the tour operator.
Ways to stimulate the activity of agents can be roughly divided into four
categories:
1.material (directly related to the remuneration of working agents),
2.technological (related to the improvement of the technologies of joint further
work),
3.educational (related to increasing the professionalism of agents and aimed at
improving the quality of service for tourists),
4. intangible.
Material ways to stimulate agency activity include:
- "floating" size of the commission. Most tour operators resort to increasing the
commission for the most active and high-quality agents (for example, increasing the
commission when a certain number of sent tourists, sold "man-days" or total sales).
The only condition for an increase in the effectiveness of this method of incentives is

 ʹͷ
to inform agents about a possible further increase in agency fees (a progressive scale
of commission size is usually attached to a standard agency agreement) so that the
agency initially strives to achieve the coveted amount or number of items;
- a bonus accumulation system for rewarding agents, which is a scheme of work
according to which, when an agency sells a certain tour or travel service to the
agency's "personal account", the tour operator deposits either a certain amount of
money or an incentive travel service, which the agent can actually use later take
advantage;
- refund of funds paid by the agency for the participation of its managers in
famtura, after the travel agent sent a certain number of tourists in this direction;
- investments in travel agent activities are especially widespread in the case of
organizing a retail agent network. In this case, the operator invests a certain amount
of money in the agency's activities (for example, for the purchase or renovation of an
office, the purchase of office equipment, advertising, etc.) on the basis of guarantees
of a certain volume of the agent's sales on a monthly basis;
- joint advertising of the tour operator and its most efficient agents. Joint
advertising acquires meaning only if the audience of the advertising message offered
by the operator is quite wide, and the advertising itself covers many regions of the
country. In this case, in addition to information about the operator itself, the message
contains the names and phone numbers of agencies in different regions, whose
consumers are the recipients of advertising.
Among the technological ways to stimulate the work of agencies, the most
common are the following:
- priority of consideration of applications for efficiently working tour operators,
which means the priority of processing applications and their confirmation as an
incentive measure for distinguished agents;
- introduction of on-line booking or work on ICQ [25]. Electronic forms of
cooperation between a tour operator and an agency are becoming more and more
popular in the world.
- regular informing of agents, especially regarding the introduction of new tours
or directions, changes in prices or the size of the commission, availability of places
for upcoming arrivals, etc.;
- increasing the efficiency of confirmation of applications. For example, many
tour operators, when attracting new agencies, bet on the fact that future booking
requests for agents will be confirmed within a short time (1 hour or less);
- simplification of settlement schemes, for example, providing agents with the
possibility of cash settlement (when a special courier of the tour operator meets the
sent sums of money at train stations or airports free of charge for the agency),
deferred payment, etc .;

 ʹ͸
 - the possibility of providing agents with preferential quotas or blocks of places.
This method of incentives is most relevant for agents with high sales volumes. The
tour operator can provide such agencies with a quota of places (for example,
guaranteed 10 places) for upcoming tours during the most peak dates. The essence of
the benefits is that the operator may not require the agent to pay in full for the block,
provide him with payment by installments, etc.
Educational methods of stimulating agency activity are generally aimed at
increasing the awareness and professionalism of agents, which in future work leads to
an increase in the quality of tourist services. In addition, regular advanced training of
agents at the expense of the forces and funds of the tour operator, advertised in the
tourism market, can also attract new agencies to work together with the operator.
The main educational tools for stimulating agency activity include:
- regular mailing of catalogs and other information and advertising products to
all employees of the agency network (booklets, posters, videos);
- conducting master classes for interested agencies. The main goal of the
master class is to increase sales by increasing the quality of customer service and the
professionalism of travel agency employees [26];
- holding seminars and presentations concerning the most important and
pressing problems of the tourism business. Seminars are usually devoted to
highlighting new technologies or schemes of work and cooperation in tourism (for
example, the emergence of new ways to automate the tourism business or tourism
accounting). Also, in the work of seminars, speeches of lawyers, planners,
representatives of state authorities, the most influential and experienced workers of
the tourist business are usually heard [27]. The presentation is usually dedicated to
the market introduction of a new tour or route, new suppliers, forms of cooperation,
collaboration technologies, etc. The most active travel agencies are also invited to
the seminars and presentations;
- organization by the tour operator of information and so-called fam-tours.
Info tours are trips organized by a domestic outgo-ing tour operator, in which
representatives of the tourism business of a region or even a country become
participants. First of all, tours are organized for:
- employees of other travel operators;
- employees of travel agencies;
- representatives of advertising agencies and the media;
- representatives of government authorities (in particular, those who are directly
related to the state regulation of tourism);
- individual influential or famous persons (directors of hotels, sanatoriums,
stars) who can draw public attention to the tour.

 ʹ͹
 The main goal of the infotours is to popularize the route and increase sales in
this direction by:
- familiarization of the interested strata of the public with the living and leisure
conditions at the resorts (this is especially true in relation to new tourist destinations);
- Inspection of the hotel base of the upcoming tours, acquaintance with leisure
enterprises and excursion services;
- the possibility of coverage of the info-tour in the media, which will become an
additional incentive to travel;
- demonstration of the advantages of cooperation with a tour operator - the
organizer of the info-tour (its schemes of work, distribution of catalogs, commission
and bonus programs).
During the info tour, its organizer must ensure that:
- all participants of the trip were satisfied with the visit to the country, the
quality of the trip organization;
- all participants appreciated the proposed forms of cooperation with the tour
operator-organizer of the trip [28];
- the tour was organized with the maximum comfort of travelers (the most
luxurious hotels, the best food, quality leisure and excursion program);
- events were organized allowing communication between representatives of
the tourist business, from getting to know each other, exchange of experience;
- the leading role during the trip remained with the organizer. On the one hand,
he must please guests in everything, prove the advantages of working with him, on
the other hand, prevent the emergence of direct contacts of invited travelers with host
parties at resorts and local providers of tourist services (since the admission of such
contacts contradicts the main purpose of the information tour - attracting travel
agencies to work together with a tour operator - the organizer of the trip);
- the tour operator was encouraged to participate in the information tour. Since
the workers of the tourist business who went directly to the place of rest guarantee a
better service to tourists, it is necessary to encourage their participation in the forms
of establishing for them an individual, higher commission, the possibility of
refunding the cost of an info-tour after sending a certain number of travelers during
the tourist season, etc .;
- the cost of the info tour was minimal. Since the organization of such trips
should not be of a commercial nature (that is, bring profit to the tour operator-
organizer), it is necessary to establish a minimum price for this trip, which will attract
additional participants [29].
However, when organizing info-tours, it is necessary to keep in mind a number
of restrictions both for the organizer and for the participants of the trip:

 ʹͺ
 - first of all, it makes sense to organize info-tours to those resorts with which
the operator has experience of working together and in the direction of which it plans
its activities in the coming tourist seasons;
- be attentive to individuals booking participation in the info-tour in order to
avoid the presence of people on the trip who are far from tourism or are not interested
in working with the advertised direction (although sometimes it is better to get a
minimum of participants with "extra" people than to disrupt or transfer to later dates
of the info-tour);
- to guarantee departure, because if it is canceled or postponed, the news of the
insolvency of the tour operator-organizer will spread throughout the tourist market,
which will significantly damage its reputation;
- observe confidentiality and strict targeting when advertising a tour in order to
avoid informing potential tourists about the low cost of such a trip (this may lead
ignorant ordinary people to think about excessive price markups and super-profits of
tour operators);
- to organize tours optimally either in the off-season (and the work of
representatives of the tourist business is less, and the price factor is in favor of the
organizer) or immediately before the start of the tourist season (to present the resort
in the form in which tourists observe it) [30].
Unlike infotours, famtours are organized for the tourist establishment of the
region by a foreign inking tour operator or even by the authorities of a foreign state
interested in the influx of tourists from the region. The main participants of fam-
tours are:
- representatives of regional outgoing operators who are well-known in the
regional tourism market and have significant experience;
- representatives of the authorities in the region;
- employees of advertising agencies and the media.
The leading goal of the famtours is the desire to interest tourist operators in
further work with this tourist destination and with a foreign incaming tour operator -
the organizer of the fam-tour. In this regard, the tasks of famtours are:
- presentation of your country to foreign guests in the most favorable light
(demonstration of routes, excursion services, resorts, etc.);
- Demonstration of the capabilities of local providers of travel services (hotels,
carriers, excursion companies, etc.);
- presentation of the possibilities and advantages of cooperation with the
organizer of famtura;
- providing opportunities for communication and acquaintance of the
participants of the trip with each other.
To achieve the goals of famtours, you must:

 ʹͻ
 - to spend them at the most "presentable" time, that is, at that time of the year in
which the visited places are most attractive for their visitors (for example, if these are
ski resorts, it is best to arrange a fam-tour in the snowy season, so that the
participants of the trip personally convince Were in the beauty and potential of the
resort);
- correctly calculate the route and excursions (in order to avoid discontent of the
traveling representatives of the tourist business);
- be sure to include in the famtour a cultural or leisure program with national
flavor and traditions (to instill respect and sympathy among travelers for the country
visited).
The rest of the requirements for organizing famtours and related restrictions are
generally identical to info tours [31].
Both the informational and fam-tour, depending on the objects of visit included
in the route and the route itself, can be conditionally divided into advertising and
study tours. At the same time, advertising information and famours are usually used
in areas widely known in the tourist markets of the regions (both among tourists and
among workers in the tourist business), their main purpose is to present the
possibilities of tourism service providers that change from year to year (for example,
the emergence of new hotels or excursion programs). Intangible ways to stimulate
the activity of the agent network - among which are popular contests among agents,
regular congratulations of agents on behalf of the tour operator (for example, happy
birthday of the company, day of tourism, birthday of managers or directors), vesting
agents with exclusive rights (for example, for the right to sell vouchers on a certain
area of work in the region) [33].

Control questions

1. The role of travel agent and tour operator in the tourism market.
2. Describe the tour operators and their activities.
3. Describe travel agents in the tourism market.
4. Describe the mechanism of interaction between travel agents and tour
operators.
5. Describe ways to stimulate the activities of the travel agent.

Tasks

1. List the operators of international tourism.

2. List the operators of domestic tourism.

 ͵Ͳ
 CHAPTER 4. THE ECONOMIC ESSENCE OF TOURISM PRODUCT

4.1. Properties of tourist services

The term "service" is defined as the result of direct interaction between the
contractor and the consumer, as well as his own activities, the contractor to meet the
needs of the consumer.
By functional purpose, services are divided into:
1. Material service - a service to meet the material and household needs of the
consumer (catering, transport).
2. Socio-cultural service - a service to meet the spiritual intellectual needs and
support the normal life of the consumer (excursions, sports, education).
By the role of the structure of consumption provided by suppliers, services are
divided into:
1. Basic (accommodation, meals, transportation, ie those services that are
purchased in a package in the form of a tour). Consumption of basic services is
guaranteed by a tour voucher.
2. Additional tourist services - services that can be obtained for an additional fee
at the place of their provision. The cost of these services is not included in the tour
price.
3. Ancillary services - services consumed mainly by the local population, but
tourists can also use them.
Services have the following properties:
1. Services are not tangible.
2. The service is inseparable from the service process (service personnel and
consumers themselves are part of the service provision process, therefore, to provide
a service, it is necessary to know the conditions under which service can take place)
[35].
3. The quality of the service is not constant (the quality of the service largely
depends on both the personnel and the conditions of service).
4. The service is not preserved (unsold tours become irreplaceable losses, since
the lack of demand cannot be compensated for. To ensure the stability of income,
firms use reservation of seats, accept advance payments, etc.).
5. Payment for services is made in one place, and its consumption in another, so
the costs of tourists are distributed over 3 periods:
1. Before starting the trip.
2. While traveling, for current personal consumption.
3. While traveling, for future consumption in the country of residence.

 ͵ͳ
 Territorial disunity in the provision of tourist services (intermediary services, as
well as all the necessary information, the tourist receives at the place of his
permanent residence; transport, information and excursion services, the tourist
receives on the route during the trip, and the target at the destination (destination)
[36].
A tourist service, like any other product, must have two properties:
1) be a use value (i.e., be useful for a tourist and capable of satisfying his
specific needs);
2) be exchange value (i.e. exchange for other goods or services).
The monetary expression of the exchange value of the tour is its price.
The ultimate goal of the tourism industry is to meet human needs. A person has
such basic features as rationality, sociality, selfishness and the boundlessness of his
needs. This should be taken into account in the activities of the tourism organization.
The resources of any tourist organization are limited, therefore, its activities to
provide travel services are limited. Therefore, the tourist organization is always
faced with the problem of rational distribution of resources. This process is fraught
with the problem of choice: what services to produce, how to produce, for whom and
at what price to sell them.
The subjects of the tourism market are potential tourists, tourism business and
government organizations.
Travel services can have various useful properties. The more of these properties
it has, the more important it is for a tourist. For example, a trip to unique corners of
the world (Thailand, Panama) has the following useful properties:
a) satisfies the tourist's needs for rest to restore working capacity;
b) acquaints during the tour with compatriots, the population of the host country,
their way of life, conditions and way of life, with exotic corners of nature, their flora
and fauna.
However, not every service has useful properties. For example, sea travel in
strong winds.
The versatility of the properties of travel services and the forms of their
manifestation depends on [37]:
1) from the inherent useful properties;
2) on the level of human knowledge about these properties.
The set of useful properties of tourist services, mediated by the social form, is its
usefulness (use value). In real life, a tourist compares travel services with each other
and puts them in a certain range in accordance with the hierarchy of his needs, i.e.
measures them.
By themselves, the use values of travel services are incommensurable, but when
it comes to quality, i.e. the degree of recognition of the properties of the use value of

 ͵ʹ
travel services, then this problem is solvable. For example, you can use for
comparison such qualitative characteristics as the speed of tourist delivery, the speed
of service, the degree of ecological cleanliness of the tourist route, the comfort of
recreation areas, the design of tourist equipment.
But the qualitative characteristics of the use value of travel services are not
limited to useful properties inherent in them. Another side of the qualitative
characteristics of the use value of travel services is its social nature. The use values
of travel services are carriers of socially necessary labor costs for their production.
The more socially necessary labor is spent on the production of tourist services, the
less they are produced per unit of time. The higher the quality of tourist services, the
more live and materialized labor is spent on its formation.
Thus, the use value of travel services is influenced by 2 factors:
1) the quality of travel services (with an increase in the quality indicators of the
use value of travel services, the need increases);
2) labor costs for the formation of tourist services (with an increase in the value
of socially necessary labor costs when creating a tourist service, the socio-economic
need for it tends to decrease).
Tourist package is the main compulsory complex of services provided during
travel according to an individual or group plan. The tour package includes 4 required
elements [38]:
- tourist center;
- transport;
- accommodation services;
- transfer.
A tourist center is a tourist destination that includes all his recreational
opportunities (natural, cultural, historical, ecological, ethnic, socio-demographic,
infrastructural, etc.). This element is required because it is impossible to organize a
vacation without a travel object.
Transport is a means of transportation with which you can get to the tourist
center. Most of the cost of a tour package is occupied by transport costs,
transportation costs.
Accommodation services - a specific hotel that is offered to a tourist in a tourist
center during a trip. Accommodation in hotels varies according to the type of
services offered to the tourist (villas, hotels, motels, etc.). Catering services are not
included in the tourist package as a separate element, because in tourism they form
part of the accommodation services.
Accommodation and food combinations accepted in tourism [39]:
- BB - bed and breakfast - accommodation and breakfast;
- HF - accommodation, breakfast, dinner;

 ͵͵
 - FB - full board.
Transfer (transfer) - delivery of a tourist from the place of arrival located in the
host country (airport, railway station, etc.) to the place of accommodation where he
will live, there and back.
The package of obligatory tourist services distinguishes the tour package from
the tourist product.

4.2. Tourism product manufacturing

Tourist product is a set of tangible items (consumer goods) of intangible

consumer values necessary to fully satisfy the needs of tourists arising during their
travels. Tourist product - the right to a tour intended for sale to a tourist.
The tourism product consists of three elements:
1. Tour - the primary unit of the tourist product, sold to the client as a whole, as
well as the product of the tour operator's labor for a specific route within a specific
time frame. It is a combination of a tour package and a range of services on the
route.
2. Goods - a specific material part of a tourist product, including tourist plans
and maps of cities, postcards, booklets, souvenirs, tourist equipment, etc., as well as a
non-specific part of the tourist product, which includes a large number of goods that
are in short supply and more expensive. places of permanent residence.
3. Additional tourist services (additional tourist and excursion services) -
services not provided for by the voucher or voucher, brought to the consumer in the
mode of his free choice, they are not included in the basic cost of the voucher and are
purchased for an additional fee.
Tour is a complex of services for transportation, accommodation, meals for
tourists, excursion services, as well as services of guide-translators and other services
provided depending on the purpose of the trip. This definition is given in the law
"On the basics of tourist activities in the Russian Federation".
Tour is:
firstly, a tourist trip along a certain route, at a certain time, with a certain range
of services;
secondly, the primary unit of a tourist product for sale, sold as a whole, a
product of the tour operator's labor [50].
When adding to the tour a passage from the place of formation of the group to
the first point of placement on the route and from the last point of placement on the
route back forms a transtour.
The tour is issued in the form of a tourist voucher or voucher.

 ͵Ͷ
 The tour includes both material services (food for tourists, services for their
maintenance) and non-material (excursions, services of guide-interpreters).
There are the following types of tour:
1. Custom tour - completed with services at will or with the direct participation
of the client. The tourist has the opportunity to choose a service option for each type
of service. A custom tour consists of a tour package and a range of services on the
route.
2. Package tour - a serial tour offered for general sale at a lower price and
includes only 4 mandatory elements: a tourist center, transport, accommodation
services and transfer [51].
3. Exclusive tours - a pre-planned set of services focused on a specific type of
tourism.
A tourist product endowed with consumer properties and acting on the market as
an offer must [52]:
1. Satisfy certain recreational needs of people, be useful, have a certain value for
the maximum number of people.
2. Meet the needs of tourists, both in the complex and in individual components.
3. Be reliable, i.e. have reliable information and correspond to advertisements.
4. Provide the greatest effect for tourists at the least cost on their part.
5. Be holistic, complete, fully consistent with the service program.
6. Be flexible, ready for consumption by different categories of tourists and not
depend on the change of service personnel.
7. Be clear, transparent and understandable for customers, easy to operate and
have no disruptions in service technology.
The production of a tourist product includes the following stages:
- formation;
- promotion;
- implementation.
The formation of a tourist product consists in the activities of a tour operator to
conclude and execute an agreement with service providers (hotel, transport,
excursion, etc.).
Formed tour operator (or travel agent) with the help of advertisements,
exhibitions, fairs, catalogs, booklets, etc. promotes to the market, where the tourist
product acts as a tourist offer. If the supply presented to the market (both as a
complex and for individual services) meets the needs of tourists (demand), the
tourism product is sold.
The implementation of a tourist product consists in the conclusion and execution
of an agreement for the provision of tourist services. The fact of selling a tourist
product is documented by a tourist voucher. By purchasing a voucher, a tourist

 ͵ͷ
consumes the services of travel organizations (tour operator, travel agent) and at the
same time acquires the right to receive other services from providers in the upcoming
trip. The receipt of other services: transportation, accommodation, meals, and so on
(i.e. consumption of the tour) occurs at the place of provision of services at the
enterprises of the tourism industry (hotel, transport, medical, sports, etc.) with direct
interaction between the performer and the consumer. The territorial disunity of
providers providing services to tourists during travel creates certain organizational
difficulties for tourist organizations and requires full coordination in actions [53].

Control questions
1. Give a definition to the concept of "tourism industry".
2. Describe the composition of the tourism industry.
3. Give a definition to the concept of "tourist resources".
4. Describe the composition of tourist resources.

Tasks
Calculate the cost of the tour on the route Yalta - Moscow - Yalta (8 days / 3
nights) for a group of schoolchildren (17 + 3) for the summer holidays. Service class
- economic.
We select the necessary data based on the conditions of the class of service.
Transport services Yalta - Moscow - Yalta train 2000 rubles. reserved seat for one
person Accommodation in the hotel "Pearl" economy rooms DBL - 2500 rubles.
room per night, TRL - 3200 rubles. room per night; BB meals + lunch at the rate of
100 rubles. per person per day
Transfer railway station - hotel - railway station - 3000 rubles. per grou
Excursion service - 4 excursions - 15,000 rubles per group for all excursions.

 ͵͸
 CHAPTER 5. HOTEL INDUSTRY

5.1. The history of the hotel industry development

The concept of "hospitality" (from the English "hospitality" - hospitality) has

ancient roots and comes from the old French "hospice", which means "strange
home".
Living rooms were located in cities and on roads leading from one country to
another. In them people were provided with lodging, shelter, food, they fed and
changed horses there.
In the Middle Ages in Europe, inns began to be created at monasteries for
pilgrims traveling to holy places. Over time, from a free shelter they become
income-generating businesses.
There were prototypes of hotels in the Middle East, Central Asia, and
Transcaucasia. They were designed for merchants with caravans of goods.
The development of trade relations led to a significant growth in the state-owned
economy in Europe. However, the hotel industry of that period was extremely
primitive: the hotels lacked amenities, their sanitary level was extremely low [54].
In the XVIII-XIX centuries. with the growth of economic and political ties
between states, the rapid development of the hotel industry begins, especially in
European cities. The hospitality business is becoming an important and profitable
industry.
The development of hospitality enterprises in the 19th century associated with
the development of tourism. On the sea coasts, near springs with mineral water, in
picturesque places, the construction of large and small hotels is being developed.
Their technical equipment is being gradually improved, comfortable conditions are
created for guests, the forms and methods of service are changing [55].
In this area of the economy, large associations (joint-stock companies,
corporations) appear, which began to manage the hotel industry in their countries, as
well as build hotels in other states. These private owners' organizations set prices for
rooms, trained hotel workers, and promoted tourism. In 1906, the International
Union of Hotel Owners was created, uniting the owners of 1,700 hotels in various
countries of the world.
In large European cities, hotels are beginning to be used for other purposes.
They arrange casinos, hold press conferences, receptions.
The rapid development of the hotel industry continued in the XX century. This
was facilitated by a sharp qualitative and quantitative increase in road, air and rail
transport, the revival of trade, cultural, scientific, technical and sports contacts
between states.

 ͵͹
 Tourism and the hotel base, which is growing every year, turned into a "service
industry", which in combination with the "entertainment industry" became a source
RI ODUJH LQFRPH DQG SURILW  7KH PRGHUQ ³KRVSLWDOLW\ LQGXVWU\´ LQFOXGHV KRWHOV
restaurants, bars, resorts, gambling houses, casinos, and health centers.
In Russia, inns, the predecessors of the first hotels, appear in the XII-XIII
centuries. In them the messengers rested and changed horses. These inns - "pits",
were located from each other at a distance of a horse crossing.
In the XV century. numerous post stations are being created. At the same time,
numerous drawing rooms and inns were built. In the courtyards not only traded, they
lived and performed commercial operations.
In connection with the growth of industrial production and the expansion of
trade ties in the XVIII-XIX centuries. the population of cities is growing, new hotels
are opening. In 1818 there were 7 hotels in Moscow. In 1900, there were 325 hotels
in St. Petersburg. All of them belonged to private individuals and were purely
commercial enterprises.
After the October Revolution, by the decree of the Soviet government, all hotels
were nationalized, the hotel industry underwent a radical restructuring. By 1940,
hotels were built in 669 cities. During the years of the Great Patriotic War, huge
damage was caused to the entire national economy, including the hotel [57].
In the post-war years, large-scale work was launched on the restoration,
reconstruction and construction of new hotels.
Further growth of the material and technical hotel base in the country was
determined by the following factors: the development of existing cities and the
emergence of new ones; the growth of industry, science, culture and art; increase in
the material well-being of people. This created the preconditions for the
development of domestic tourism, the exchange of delegations, an increase in the
number of business travelers and vacationers.

5.2. Characteristics of the hotel product

The hotel industry as a type of economic activity provides hotel services and
organization for rewarding short-term stays in hotels, campgrounds, motels, school
and student dormitories, and guest houses.
Characteristic features of the hotel product:
1. Simultaneity of production and consumption.
2. Interaction when buying a manufacturer and a consumer on the territory of
the manufacturer with their direct contact.
3. The immeasurability of the hotel product (the service is evaluated only after it
has been provided, and not always immediately).

 ͵ͺ
 4. Satisfaction of the momentary demand of the client, the impossibility of
producing a hotel product for future use, warehousing and storage.
5. Variation in demand for a hotel product (seasonal fluctuations) at high fixed
costs (independent of the number of customers and relatively low variable costs,
depending on the number of customers).
6. The dependence of the volume of sales of a hotel product is manifested in 2
types: on the internal quality of hotel products (level of service, image, convenience,
culture of staff), on tour operators and travel agents, transport, location, marketing
decisions, prices, weather, recreational opportunities, the presence and number of
competitors.
General characteristics of the main hotel groups:
1. Commercial hotels (business hotels). Initially, hotels and small inns
appeared in cities and villages, where they served city guests. And only with the
beginning of the era of railways in the United States, the rapid construction of hotels
began. Traveling by rail was quicker and easier than in a horse-drawn carriage or in
newly introduced cars. Train stations were usually located near the city center.
Travelers leaving the train needed a hotel where they could stay. So as travel grew,
so did the demand for hotels. Thus, the construction of new hotels was accelerated
[58].
Modern commercial hotels are usually located in the city center or in the
business district - in areas that are convenient for target groups. This is the largest
group of hotels. It serves mainly businessmen. Despite this, many tourist groups,
individual tourists, small conference groups find these hotels attractive. Previously,
commercial hotels were called transit hotels because of the relatively short stays in
them compared to other hotels. The guests in these hotels - newspapers, morning
coffee, local telephone service, cable TV, etc. Guests can use a rented car, transport
from the airport, cafeteria, dining room, etc.
Most commercial hotels have conference rooms, suites and banquet facilities.
Services include laundry, dry cleaning, information provision, retail kiosks,
swimming pools, health clubs, tennis courts, saunas, sports grounds.
2. Motels - hotels near highways. A motel is a business mainly serving guests
arriving by car. Motels provide parking for guests' cars near the hotel. Motels can be
located anywhere, but they can usually be found on the outskirts of a city or along a
highway.
Most of the motels are two-story, built around the main thoroughfares. Many
motels have a picturesque landscape: bushes, a swimming pool, children's
playgrounds. Typically, motels do not offer the full range of hotel-specific services.
3. Hotels near airports. While the development of the railway network
accelerated the construction of hotels, air travel contributed to the development of the

 ͵ͻ
hotel industry in the 1950-1970s. Air travel has boosted demand for hotels near
airports, especially international ones. These hotels differ from others in the number
of rooms and the level of service. Typical target markets for these hotels are
businessmen, air travelers forced to stay overnight at the airport due to flight delays,
and airline personnel. These hotels usually have dedicated limousines for
transferring guests from the airport to the hotel and back.
Nearly all airports have billboards with phone numbers for nearby hotels with
conference facilities [59].
4. Luxury hotels. Luxury hotels are the newest and fastest growing segment of
the hotel industry. In these hotels, the rooms have several rooms: a living room and
an isolated bedroom. Some deluxe rooms have a kitchen with a refrigerator and a
built-in minibar. In these hotels, as a rule, less area is set aside for public rooms and
halls.
These hotels are designed for people who use a suite as a place of temporary
residence and enjoy the comfort of home away from home. Vacation families find
this vacation spot very convenient. People of different professions can combine work
with leisure and even receive guests. Some hotels offer breakfasts, evening snacks,
which gives guests the opportunity to communicate with each other.
5. Hotels for permanent residence. These hotels are designed for guests who
are almost permanently residing in them. Mostly they are single people. Typically,
these hotels are common in the United States and cater to guests who can afford
limited hotel service every day. Hotels for permanent residence are not as popular
now as they once were. They are being superseded by luxury hotels and
condominium hotels.
The decor of a room in such a hotel may resemble a room in a luxury hotel.
Usually it is a living room, bedroom and small kitchen. It offers - daily cleaning,
telephone, contact service and other hotel services. The hotel may have a restaurant
and a lounge.
Other types of hotels can also have a similar clientele despite targeting other
markets. And in hotels for permanent residence transit guests can also stay.
6. Resort hotels (boarding houses). Guests choose boarding houses as a
planned vacation spot, distinguishing them from other types of hotels. The boarding
house can be located in the mountains, on an island, in an exotic location and always
far from settlements. Guests are drawn to the recreational opportunities and scenic
landscape. They are offered excellent food, a wide selection of drinks, personal
services and room service. Many hotels offer a wide range of services for active
guests: dancing, golf, tennis, horse riding, hiking, skiing, swimming. What
distinguishes these hotels is their special comfortable and relaxing atmosphere. Such
hotels rely on regular customers who come here on vacation from year to year, as

 ͶͲ
well as on their positive reviews and recommendations to their friends and
acquaintances. The managers of these hotels are sociable people who plan, organize
and develop recreation programs.
7. Hotels offering bed and breakfast. This category of hotels is often
overlooked. These can be small houses with several rooms, or small commercial
buildings (20 to 30 rooms). The owner of this hotel usually lives in the same
building. The compulsory breakfast ranges from a regular light continental to a full
meal. Sometimes hotels only offer bed and breakfast. All other types of services and
recreational opportunities are absent. This explains the low cost of living in such a
hotel. Today there are thousands of such hotels. They are popular due to the guests'
personal affection for the host.
8. Timeshare hotels and condominium hotels. Another growing segment of the
hotel industry is timeshare hotels.
Individuals buy the right to own part of the premises for a period of time (from
one to two weeks per year). Since the space functions primarily as a hotel, travelers
who rent the space may not realize that it is actually part of a timeshare hotel. These
hotels are becoming especially popular in resort areas. Owners often cannot afford to
co-own a hotel throughout the year, so they are only a few weeks out of the year.
Condominium hotels are like timeshare hotels. The difference between them
lies in the form of ownership. Premises in condominium hotels can be transferred
into the possession of only one owner. Whereas a timeshare hotel can have multiple
owners. In a condominium hotel, the owner tells the management company for how
long he wants to own part of the premises.
Timeshare owners and condominium hotel owners receive rental income and
pay the management company for advertising, rental, household and technical
services. The owners are also responsible for furnishing the premises. A room
usually includes a living room, dining room, kitchen, bathroom, one or more
bedrooms. Guests stay here for one to two weeks.
9. Casino hotels. Hotels with opportunities for gambling stand out in the casino
hotel group. While hotel rooms and catering services may be top notch, their
functions are secondary to casinos. Until recently, hotel rooms in these hotels, as
well as restaurants, were not considered to be highly profitable. Today, all services
offered in casino hotels are considered to be profitable. The casino hotels are sought
after by guests who intend to have a good time. Often in these hotels you can find
restaurants offering special cuisine. It offers extravagant shows. The hotel offers its
visitors charter flights. The hotel's casino is open 24 hours a day, 365 days a year,
which indicates a high degree of exploitation of hotel rooms and catering
establishments.
Some casino hotels are very large in size - up to 4000 rooms.

 Ͷͳ
 10. Conference centers. Many hotels have meeting and discussion rooms. But
the whole list of opportunities for holding conferences and congresses is available
only in conference centers. Most conference centers offer 1 night's accommodation.
Since conferences are local in nature, the main task of the conference center is to
provide all the necessary technical equipment for the conference: auxiliary audio and
video equipment, business centers, comfortable furniture, etc. Convention centers, as
a rule, are located in the capitals, they have great opportunities for recreation: golf
courses, indoor and outdoor pools, gyms, water treatments, sports grounds for
athletics, etc. Participants are charged one price for all conference center services,
including room, catering, use of rooms, technical support and related other services.
However, entertainment options are limited as conference centers are more
geared towards meeting the needs of the conference organizers than filling the leisure
time of the conference participants.
11. Congress hotels. Congress hotels are another segment of the hotel industry
that has emerged recently. Compared to other hotels with less than 600 rooms,
congress hotels have 2,000 rooms or more. Participants of major conventions stay at
these hotels during their time.
The demand for the congress hotel market has almost doubled in the last 20
years. The area of exhibition halls in such hotels can be 50,000 square meters. ft,
plus reception and meeting rooms. These hotels have both self-service restaurants
and cafeterias and gourmet dining rooms.
Congress hotels are aimed at the business segment of the market. A full range
of business services is provided: teleconference, secretariat, translation into many
languages, fax. For example, these are hotels - "Opryland Hotel" (Nashville,
Tennessee); Ne Loews Anatole hotel, Dallas, Texas; Ne Hyatt Regency (Chicago).
Many casino hotels attract the convention market for state, regional and international
conventions.
As a rule, an application for holding a congress in a given hotel is submitted 2
years in advance, but often a congress in a particular hotel is planned for 10 years.
This is due to the large number of guests invited.
12. Specialized hotels.
Among the listed hotels, the following occupy a special place:
- camping - a camp for autotourists, located in the countryside, equipped with
summer houses or tents;
- rotel - a mobile hotel, which is a carriage with single, double rooms. During
the daytime, tourists get acquainted with various cities and their attractions, and
spend the night on the train;
- boat - a small hotel on the water (non-floating), which can be used as a
suitably equipped vessel;

 Ͷʹ
 - flotel floating hotel, which is a specially equipped vessel; tourists are
provided with comfortable cabins, active recreation services, halls for negotiations,
conferences, congresses, communications, numerous bars and restaurants.
Flotels are used to organize cruise vacations, which gained rapid development in
the 1990s.
A new type of specialized tourism is rural tourism. Currently, rural tourism is
considered as a very profitable activity and has considerable volumes. Of course, it
cannot compete with the volume of tourist flows to sea resorts, but, nevertheless, in
terms of importance, it is becoming an important area of the tourist business, worthy
of attention and study.
In relation to the conditions of Russia, this is a good niche for activity, since it is
rather poorly developed.
Today, the main reasons for choosing this type of vacation are the following:
- lack of funds for recreation at expensive seaside resorts;
- a well-established way of life in rural areas for a certain category of people,
regardless of income, for example, due to family or other traditions;
- proximity to nature and the ability to spend more time outdoors in the forest,
on the lake, etc.;
- the ability to eat environmentally friendly and cheap products;
- the opportunity to familiarize yourself with another culture and customs,
participation in local holidays and entertainment.
There are two main types of organizing such a vacation for the townspeople of
their region and residents of other localities or foreign tourists:
- renting out small houses or rooms in small rural hotels or cottages located in
picturesque areas;
- Organization of accommodation for holidaymakers on a farm in a rural house
directly with a family.

5.3. The structure of a typical hotel enterprise

Modern medium and large tourist complexes (tourist hotels, full service hotels)
with an average and high level of comfort are characterized by the presence of a huge
list of additional services, which can be called nothing more than a "city in a place of
temporary residence": a bar, a restaurant, a cafe, a buffet, a beer bar, cocktail bar,
herbal bar, grocery and souvenir shops, vending machines, disco, casino, nightclub,
beauty salon, shoe shine, slot machine hall, billiard room, bowling alley, video
games, elevator, first-aid post, luggage room, safe in Reception and safe in room,
currency exchange, ticket booking point (for plane, train, bus, taxi, etc.), car rental,
car park and car parking, garage, meeting room, concert hall, business center, copy
machine, fax , telephone, travel and excursion bureaus, TVs in rooms, bathrooms,

 Ͷ͵
halls, additional dishes in the room, iron, rental, gym, gym, playground, sauna, steam
bath, mini golf, etc. courts for golf, basketball, volleyball, squash, table tennis,
tennis, stables, massage, outdoor, indoor and children's pools, beach on the sea, lake,
river coast, equipment for water, underwater and water sports.
This impressive list is supplemented, modified and differentiated depending on
the size of the hotel, its location and purpose, the level of comfort and other reasons.
The development trend of the hotel industry is aimed at expanding the range of
services in hotels for various purposes.
1. The economic structure of a typical hotel enterprise
The economy of a hotel business is determined by the structure of income and
expenses. The statistics on the income and expenses of a typical hotel enterprise for
the global industry are published by the WTO, MGA and other hotel associations,
specialized research and marketing companies.
Income structure. The main factors that determine the income of a hotel
company are the occupancy of the room stock and the prices for hotel services (cost
of a room, food, additional services).
The average statistical profitability of various types of hotel services (as a
percentage of the total income from all types of hotel services) looks for an average
comfortable hotel as follows: income from the sale of rooms (accommodation
services) - 55% (with a range of minus and plus up to 5-8%) ; income from catering
enterprises - 25% (with a spread of minus and plus up to 3-5%), additional income
from the sale of drinks in buffets, bars, nightclubs, etc. - 10% (with a spread of up to
3%); income from the sale of additional services (except for telephone) - 3% (range
up to 1%); income from telephone services - 1.5% (range up to 0.5%); rental income
- 2% (range up to 1%). Cost structure
The main share of costs is wages and related payments (27-32%), since the hotel
industry requires a large number of service personnel from very highly qualified and
highly paid managers and marketers to a large number of low-skilled, but
nevertheless well-paid workers employed in contact and support services, as they
directly contact the guest and create the necessary comfort and hospitality
environment.
The next major cost item is operating costs for maintaining the room stock - up
to 12-14% of the total hotel costs. 5-8% are expenses for catering and 1-3% for
organizing the sale of drinks. The rest of the costs are distributed approximately as
follows:
- administrative expenses - 3-4%;
- depreciation charges - 3-4%;
- equipment maintenance and repair - 3-4%;
- energy carriers - 34%;

 ͶͶ
 - marketing research and advertising - 2-3%;
- interest on a loan - 2-4%;
- payment of insurance premiums - 1-2%;
- all kinds of rental payments - 1-2%;
- fees for management specialists - 2-3%.
Thus, the formation of the hotel's income remains from 17 to 35%. And the net
income generated after the payment of inevitable payments (taxes) and going to the
formation of the reserve capital of comfortable hotels can range from 6 to 13% of the
volume of hotel services sales. Naturally, the spread of this profitability indicator for
different types of hotels will be much larger.
2. Material and technical structure of a typical hotel enterprise
A modern tourist complex (full-service hotel) has a significant material and
technical base, providing a full-service comprehensive, centralized service for
tourists, vacationers, travelers. A large number of components of the material and
technical base of a modern hotel testifies to its significance and complexity. A
complete list of the entire material and technical base of a particular hotel is
contained in its passport, which is, as it were, a reference document. There is also a
brief description of the material and technical base.
Buildings, structures, lighting, gas and water supply networks, systems included
in the tourist complex (tourist hotel) are combined into the following groups:
1. Administrative buildings.
2. Sleeping (hotel) buildings.
3. Buildings of catering establishments (restaurants, canteens, etc.).
4. Buildings for leisure and cultural services (spectacular).
5. Sports facilities.
6. Household buildings.
7. Engineering structures, networks, equipment.
8. Residential buildings (hostels).
Often, in one building, premises (services) of different functional purpose are
combined, and the buildings are blocked by passages, galleries, etc.
The technical equipment of the hotel buildings includes the following
engineering and technical systems: heating (central, stove, electric), water supply
(cold, hot), sewerage (internal, external), ventilation (natural, supply, exhaust), air
conditioning system, centralized dust removal, garbage chute, linen-wire, lifts and
lifts (passenger, freight), radio broadcasting systems (number and placement of radio
outlets), television (antennas, televisions), telephone communications, alarm systems
(burglar, fire).
Ancillary services and rooms of the buildings (buildings) of the hotel, directly
serving tourists, usually include all service:

 Ͷͷ
 - storage room;
- utility warehouse;
- technical workshops;
- points for the provision of personal services (repair and cleaning of shoes,
repair and ironing of clothes, urgent washing and dry cleaning, hairdressing salons);
- ticket offices for the sale of transport tickets;
- kiosks (pharmacy, newspaper, souvenir, perfumery and ha-lantern);
- post office;
- a savings bank (bank) and a currency exchange office;
- first-aid post and isolation ward;
- rooms for service personnel (on the floors);
- rooms for administration;
- points for the provision of various additional and sports and recreational
services (billiard room, sauna, turkabinet, library, ski storage, rental of sports and
cultural equipment, etc.);
- premises or areas for disassembly, packaging, storage (before transportation)
and loading of garbage.
The elements of the hotel's infrastructure, located on the land allocated for the
tourist complex and the adjacent territory, also represent a complex and capacious
material and technical base that requires close attention: sidewalks, paths equipped
for various recreational activities (playgrounds, sports, dance ), ponds, pools,
fountains and other water surfaces, parking lots, green spaces (ornamental trees and
bushes, gardens and fruit trees, lawns with ornamental trees, bushes, lawns, flower
beds, monuments, sculptures, territory fencing, visual propaganda, park furniture ,
cable cars, ski slopes, outdoor lighting).
On the territory of the tourist complex (hotel), in addition to the above
structures, there may be many more engineering structures that provide:
a) water supply (artesian wells, water pipelines, water pumping stations, water
tanks, fire reservoirs);
b) heat supply (boiler rooms with fuel storages, heating networks, gas pipelines
and gas distribution systems;
c) power supply (substations, transformer and distribution booths, outdoor
lighting network boards);
d) telecommunications, communications and signaling;
e) sewerage (sewer collector, sewage pumping stations) and waste disposal
(waste bins); f) bank protection structures, fences, etc .;
g) garages, parking lots, boat stations, marinas, all kinds of beach facilities.

 Ͷ͸
 5.4. Global booking systems in hotel industry

Reservation ± is pre-order for the upcoming tourist service, preliminary fixing of

booking objects: seats (tickets, vouchers), equipment, equipment, etc. behind the
customer. Reservations are made by various information systems that reserve, i.e.
create stocks of booking objects, and then book from the created reserve, i.e. assign
them to the consumer
Interaction with booking information systems creates the opportunity to:
- integrate into the global tourism market;
- promptly manage their activities;
- to expand the sales market for tourism products;
- plan marketing activities;
- pre-form lists of consumers and provide loading in advance;
- to analyze the demand for tourism products in different periods of time and
much more.
Booking systems are grouped according to the following indicators:
- by types of tourist services: booking accommodation services (booking places,
rooms in hotels, other accommodation facilities), transport, cultural, entertainment,
medical, household and other services;
- DFFRUGLQJ WR WKH ERRNLQJ PRGHO ERRNLQJ WKURXJK DJHQWV ³EXVLQHVV-to-
EXVLQHVV´³EE´ GLUHFWERRNLQJE\FXVWRPHUVYLDWKH,QWHUQHW ³EXVLQHVV-to-FOLHQW´
³EF´ 
- according to the booking mode: booking in standby mode off-line (off-line
booking), when the sent application is processed by the manager within 24 hours, and
booking in real time on-line (on-line booking), the whole process of which fully
automated, the submitted application is processed using computers in a few seconds.
The US is the leader in the online sales market, accounting for 7,596 of all bookings.
Purchases of travel services online in the United States increased by 45% in 2001 and
by 14.4% in 2002, reaching $ 27 billion. By the types of booked services, airline
tickets are the leader (66%), followed by accommodation. in hotels (22%), car rental
(9%), cruises and rail transport (3%). In Europe, the online sales market is
developing successfully and will soon surpass the level of bookings in the United
States.
Online booking of tourist services on the Internet in Western Europe increased
by 61%. In absolute terms, virtual sales in this market sector amounted to 7.6 billion
euros, i.e. 3.5% of its total. The first place in terms of online booking volume is
taken by the United Kingdom (38%), followed by Germany (22%), France (12%),
Scandinavian countries, Finland, Iceland, Benelux, Austria, Switzerland. This
service is less in demand in the countries of Southern Europe - Italy, Spain, Portugal,

 Ͷ͹
Greece. Most of the bookings are air tickets (over 62%), the share of hotel services is
about 14%, package tours - over 10%, rail transportation - over 9%, car rental
services - about 3%.
According to analysts, online sales will grow annually according to the
following indicators:
- in terms of the volume and scale of booking - individual (from home, from the
workplace), local (information network of one or several companies), regional,
national (within the country), international (between individual countries), global
(GDS);

- by the method of booking - computer booking (through corporate information

systems, through the company's own website), written booking (fax, mail), oral
booking (by phone) [60];
- according to the level of automation - semi-automated booking (with the
participation of staff) and automated booking (without the participation of staff);
- upon availability of guaranteed confirmation - booking with guaranteed
confirmation, allowing the client to be late for objective reasons; booking without
guaranteed confirmation, in which the order is canceled after the specified period;
- by type and method of payment for booking services - booking with
prepayment (partial, full), with subsequent payment upon delivery (upon final
settlement), with payment from home, cash and non-cash payment, etc .;
- non-cash payment using plastic cards simplifies the booking procedure, allows
for more complete integration into the global Internet. The owner of an international
plastic card fills in the application form in the computer, 2 signals go on the air: one -
to the seller of the service (airline, hotel, tour operator), the other - to the server of the
banking system. The bank instantly confirms the payment from the server, and the
sale-purchase took place without the participation of staff. In Russia, the use of non-
cash payments using plastic cards is still problematic.
The use of KSB creates great benefits for all participants in the tourism market:
For consumers:
- reliable and extensive information about the services of suppliers;
- prompt and accurate information about the required service;
- information exchange with the tour operator and service providers in real
time;
- high-level service - booking, confirmation, registration in 5 - 10 minutes;
- payment for the booked services from home (from the workplace);
- simplicity and availability of work within 24 hours a day;
- discounts from the supplier amounting to 10% of the cost of services;

 Ͷͺ
 - the ability to receive any necessary information related to tourism from the
same computer via the Internet;
for the subjects of the tourism industry:
- a ready-made agent network in many cities of Russia, interaction with other
participants in the tourism business;
- sales process management;
- employee access to information in accordance with the access rules;
- cost reduction (20 times), savings on negotiations, faxes;
- additional advertising;
- automated distribution of documentation for: 1) purpose (service, reporting,
analysis of activities, sales volumes, etc.); 2) periods of time; 3) work with partners,
agents; 4) geographical feature (regions); 5) bookings (accounting for canceled,
booked, completed applications), etc.;
For objects of the tourism industry:
- a ready-made sales network from tour operators and travel agencies (subjects
of the tourism industry), the possibility of expanding the sales market for services and
developing an agency network;
- complete and reliable information of the client;
- no need for quotas for places, services between partners;
- management of the sales process and a guarantee of no resale;
- control over the dynamics of sales and booking (reservation) of places, the
possibility of prompt changes in the services provided (volumes, tariffs, etc.).

Control questions

1. History of the hotel industry development.

2. List the characteristic features of the hotel product.
3. Classification of hotels.
4. Describe the main groups of hotels.
5. Describe the main models for organizing the hotel business.
6. Describe the structure of a typical hotel business.
7. List the basic rules for payment for accommodation.
8. Describe the global booking systems.
9. Describe the Russian reservation systems.

Tasks
Make reports of topics:
1. Founders of the hotel industry.
2. Modern trends in the hotel industry in Russia.

 Ͷͻ
 CHAPTER 6. PROBLEMS AND PROSPECTS OF THE TOURISM
ECONOMY DEVELOPMENT

6.1. Factors of the general directions of international tourism development

The study of the development of the world tourism sector is associated with two
groups of factors:
1.exogenous variables, including demographic, social, political and
environmental trends, trade, technology, transport;
2. Trends directly related to tourism and characterizing demand, supply and
distribution.
Sociodemographic trends
Sociodemographic trends will drive tourism demand over the next 15 years.
The post-war boom in the birth rate has led to an increase in the number of
young people already today, which, of course, will affect the development of tourism.
In addition, it should be borne in mind that there have been changes in social factors,
for example, an increase in the number of late marriages, a decrease in the number of
children in families or a late birth of a child.
More and more people from developing countries are working in industrialized
countries, leading to convergence in lifestyles.
Political aspect
The change in the political map of the world, which took place in the late 80s -
early 90s, significantly influenced the development of tourism and will influence
until 2000. The opening of borders and the transition to a market economy of the CIS
and Eastern Europe predetermined an increase in tourist flows from these countries
to the west. In turn, many countries of Eastern Europe have become leading in
receiving guests, for example, Hungary and the Czech Republic.
The creation of a European Union without internal borders with the free
movement of goods, services and people, with the unification of tax policy and
deregulation of transport creates conditions for the increasing development of tourism
in this area of the globe.
Technological aspect
Globalization is one of the main trends in the international tourism industry,
accompanied by the concentration of market share and influence in the hands of large
companies. These companies, in addition to economies of scale, the ability to spread
risk across different markets, the use of modern marketing schemes and access to the
international labor market, also benefit from the active use of new technologies.
The Computer Reservation System (KSB) has restructured the tourism industry.
In the late 60s, it was used in aviation in the United States. Then the system was used

 ͷͲ
by tour operators, supplying its terminals to travel agencies. From the CSF arose the
Global Distribution System (GDS), which has rapidly expanded both horizontally
and vertically since the late 1980s. A wide range of tourism products are involved in
vertical integration: accommodation, entertainment, vehicle rental, etc. The future of
the UGR is promising, since, in turn, it provides an organizational basis for the
distribution of an integrated tourism product.
So, at the macro level, the information technology system makes it possible to
integrate the production of tourism products and their distribution. At the micro
level, the introduction of advanced technologies contributes to a more efficient and
faster company management. For example, in the hotel industry, this system
performs various functions: it controls the power supply systems; simplifies office
activities by performing booking and settlement functions with clients; provides
support to the marketing service in the compilation of databases; manages
warehousing and accounting of orders and invoices in the production of food and
beverages, etc.
Computer service opens up new opportunities for those travel agencies that have
succeeded in advising their clients, since in the future new types of travel agencies,
using information systems to compose individual travel packages, will consult, and
not only engage in sales [18]. Practice has shown that tourism and informatization in
transport are developing in parallel. With the continuing rise in fuel prices from 6%
to 8% per year, the only way out of the situation is to increase the efficiency of the
airlines and their labor productivity [60].
Experts believe that at the beginning of the XXI century. more attention will be
paid to land transport, especially the increased use of rail and road transport in the
creation of a tourism product. Further technological development of high-speed rail
networks and their environmental advantages will play a significant role here. The
same can be said for the future of road transport, given the active construction of
expressways and their further transformation into environmentally friendly vehicles.
Environmental aspect
Environmental issues in the future will worry people even more than today. For
its part, the increasing sensitivity of the environment stimulates significant efforts to
protect and conserve natural resources. Over the next 10 years, the market will be
filled with new, "softer" types of tourism products, namely ecotourism aimed at
exploring the environment, especially flora and fauna in protected areas. However,
the development of this type of product may be limited for two reasons. First, the
product will not be able to conquer too large a segment of the market, as it will
become too expensive and elite. Second, there may be a problem when the
ecotourism product becomes prosperous and the increased number of tourists can
destroy the ecosystem.

 ͷͳ
 Nevertheless, this product is becoming very significant, especially for those
countries that want to change their image. At the WTO conference, which was held
in 1991 in the Canary Islands, it was noted that ecotourism should not be limited to
certain specific experiments, but should become the main factor in the development
of tourism.
On the other hand, in the near future, there will be changes towards a long-term
viable environmental strategy instead of a limited one in terms of immediate benefit.
So, if earlier the emphasis was on the construction of hotel buildings and thus
damage to the environment, then in the future preference will be given to renovation
and reconstruction programs, for example, in Switzerland it is planned to renew 40%
of existing hotels by 2015.
With the development of tourism, according to experts, a "new" tourist will
appear. This means that the traditional type of family tourism with vacation every
year somewhere on the sea or in the mountains will gradually give way to new types,
namely ecotourism, adventure and educational tourism.
The tourist market in the 90s, following the development trends of other sectors
of the economy, changed from a sellers 'market to a buyers' market. This means that
in the manufacture of tourism products, companies must pay even more attention to
the diverse tastes of consumers. If earlier tourist products were mostly non-
specialized, with the same characteristics intended for mass tourism, now and in the
future the tourist product should not only be diversified, but also correspond to the
development trend of tourist demand, which is aimed at short-term multiple stays of
travelers during the year. To this end, new concepts are being created in many
countries to attract tourists. The use of theme parks as a tourism product of domestic
and international tourism plays a significant role here. For example, each of the
Disneyland parks existing in the world (in the states of California and Florida in the
USA, in Japan and France) receives 1 million guests per year in a short period of
time. This number of guests represents 10% of the total American international
tourist flow.
Marketers traditionally use demographic and geographic criteria to define their
markets. However, psychological and behavioral criteria should also be taken into
account to identify the motivations and needs of tourists.
Among other factors that may have an impact on the future development of
tourism, first of all, one can name the worldwide spread of infectious diseases, such
as AIDS, which can halt tourist flows to some regions of the Earth where this terrible
disease is especially common. Tourism flows can also be reduced due to such a
technological invention as "virtual reality", with the help of which potential travelers,
without leaving anywhere, can visit simultaneously at different latitudes of the world
and without health risks. Global warming, which could alter the flora and fauna of

 ͷʹ
the globe, as well as rising sea levels, which will transform coastal zones and thereby
affect coastal tourism, can be significant factors affecting tourism.
Education and training
Education and training of personnel in the future of tourism will take a more
important place, if only because tourism is and is becoming an increasingly high-
tech, very contact area, in which personnel must be well educated, communicative,
professionally trained, must speak several languages and have a good idea of nature
tourism. Previous workforce policies and practices have been based on HR
approaches that are already out of fashion. The tourism sector is penetrated by ideas,
approaches, priorities of management activities developed in other sectors of the
economy, for example, such as regular assessments, effective communication
methods, etc.
Tourism education has traditionally been based on developing students'
analytical thinking to understand conceptual problems. But, on the other hand,
practical knowledge was given and skill increased. However, if earlier workers could
perform similar operations in different sectors of the tourism industry, for example,
sell tickets, now many operations are becoming more professional and require a high
level of training.

6.2. International tourism organizations in tourism industry and hospitality

As a rule, with the increasing importance of tourism in the country's economy,

the introduction of the state into the industry through a ministry with appropriate
powers or through the participation of various international organizations increases.
The flagship of international tourism is the World Tourism Organization (WTO).
There are also other international organizations, one way or another related to
tourism, such as the International Air Transport Association (IATA) and the
International Civil Aviation Organization (ICAO).
In addition, there are many regional organizations such as the European Travel
Commission (ETC), the Asia Pacific Travel Association (PATA), the Caribbean
Tourism Organization, and others. Their efforts are mainly focused on marketing,
promotion and technical assistance. The WTO is more operative than an advisory
body. His responsibilities include assisting member countries of this organization,
research work, consisting of seven main areas of research (trends in world tourism;
tourism markets; enterprises and their equipment; tourism planning and development;
economic and financial analysis; the impact of tourism; providing it for abroad);
provision of statistical information; harmonization of policies pursued by different
countries; assisting participating countries to maximize the positive impact of
tourism on their economies; sponsoring education and training, etc.

 ͷ͵
both real travel and real tourism. «Virtual travel» opens up vast expanses of cultural
space, and the only means of transportation in the travel space is a computer mouse.
Virtual tourism replaces both real travel and real tourism. Such a «tourist trip»
is more comfortable and convenient, safe, as it is carried out within the home.
«Virtual travel» opens up vast expanses of cultural space, and the only means of
transportation in the travel space is a computer mouse.
The development of the virtual information space helps to ensure a situation
where customers are satisfied with the provision of services, and the owners of travel
companies receive high income.
The use of new types of information and virtual technologies has brought a lot
of profit to the tourism sector, especially in relation to the provision of services that
are in line with the contemporary issues of the tourism industry. The use of digital
technologies in the 21st century has reached its maximum, and more and more people
spend a lot of time on the Internet, realizing their opportunities in this space. The
number of Internet users in the world has grown to 4.54 billion, which is 7% more
than last year (+ 298 million new users compared to the data for January 2019). In
January 2020, there were 3.80 billion social media users in the world, the audience of
social media grew by 9% compared to 2019 (that's 321 million new users per year).
Today, more than 5.19 billion people use mobile phones - an increase of 124 million
(2.4%) over the last year.
The digital economy as a type of business differs in that information becomes a
key resource in it, as well as information management methods in all spheres of
production, exchange, distribution and consumption, is based on the use of new
technologies, which include the types of virtual tourism: virtual tour; virtual
panorama; virtual reality.
1. Virtual tour. Since virtual travel has become an actual cultural practice and is
in demand in modern society, a fairly large variety of their types has appeared. That
is why there is a need to structure and classify virtual tours, but this, in turn, is today
a fairly extensive field for further research. It should be noted that some typologies
of traditional tours are perfectly appropriate, in particular, and on virtual ones,
nevertheless, the latter, of course, have their own characteristics, according to which
they also need to be differentiated.
2. Virtual panorama. Virtual panoramas are a photo-virtual method of
demonstrating a volumetric space. Unlike conventional digital photographs, virtual
panoramas allow you to create a «presence» effect. This means that the tourist at his
own discretion can choose the direction of view from the point of observation, and,
thus, observe the filmed space in different directions. When viewing a virtual
panorama, this is expressed in the fact that the observer rotates around the
observation point a specially captured and edited image, a part of which is displayed

 ͷͺ
in the viewing window. Thus, by rotating, you can choose the direction for
observation
3. Virtual reality.
The use of VR and AR technologies is becoming an integral part of the
development of the tourism business. Virtual reality allows tourists to experience a
virtual vacation in a hotel during the booking process before paying for it, in order to
make the right choice for their trip. Augmented reality is commonly used through a
specific phone application to enhance the tourist's view of the real tourist attraction.
For example, by going to a restaurant and scanning a special code in the application,
you can see customer reviews, or direct your phone to the hotel map and find the
necessary information about nearby attractions [59].
The use of AR / VR handheld devices by the tourist will help to obtain real-time
information about the attractions of interest in the destination he visited. Realization
of the potential of VR / AR technologies presupposes direct contact of a certain brand
with the target audience with a high degree of its memorability and unusual
advertising.
Deep integration of digital technologies in tourism contributes to an increase in
the efficiency of communication processes of participants in the modern market of
tourist services. IT, designed to make the perception of information by a person
much wider and clearer, have significant potential in tourism, due to the fact that
consumers, being actively involved in the virtual space, get the opportunity to
purchase information, services, goods, which affects the growth of tourist traffic. On
the other hand, convenient communication of tourism industry enterprises with
clients contributes to an increase in the number of new clients and an increase in the
loyalty of existing clients, the formation of a positive image and growth of brand
awareness, achievement of goals and fulfilment of the mission of travel companies.

Control questions

1. International organizations regulating various types of tourism activities.

2. Factors determining the general directions of development of international
tourism.
3. List the digital forms of tourism.

Tasks

You will analyze the main directions of development of the tourism industry in
your country.

 ͷͻ
 REFERENCES

ͳǤ Bieger T. Reengineering destination marketing organisations: The case of

6ZLW]HUODQG7RXULVP5HYLHZʋ  Ɋ 4-17.
ʹǤ Brabham D. Crowdsourcing: A Model for Leveraging Online Communities //
The Routledge Handbook of Participatory Cultures, 2011 //
Dbrabham.files.wordpress.com/.
http://dbrabham.files.wordpress.com/2011/03/brabham_handbook_crowdsourcing.pd
f.
͵Ǥ Brent Ritchie J.R., Zins M. Culture as Determinant of the Attractiveness of a
Tourism Region // Annals of Tourism Research. ² 1978, April ² June.
ͶǤ Budgets of National Tourism Organizations, 2008²2009. World Tourism
Organization, Madrid, Spain, 2010.
ͷǤ Butler R.W. The concept of a tourist area cycle of evolution: implications for
manegment of resource. ² Canadian geographer 24 (1), 1980.
͸Ǥ Chiu Chao-Min. What can crowdsourcing do for decision support? / Chao-
Min Chiu. ± Decision Support Systems, 2014. -ʋ± P. 40-49.
͹Ǥ Cooper C., Fletcher J., Gilbert D., Wanhill S. Tourism Principles &Practice.
Pitman, London, 1993.
ͺǤ Cooper C., Jackson S. Destination life-cycle. Annals of Tourism Research,
16, 1989.
ͻǤ Cooper C., Hall C.M. Contemporary tourism: an international approach. ²
Oxford: Butterworth-Heinemann, 2008.
ͳͲǤ Daren C. Brabham. Crowdsourcing as a Model for Problem Solving An
Introduction and Cases. /University of Utah, Convergence: The International Journal
of Research into New Media Technologies. - 2008. ± P. 51.
ͳͳǤ Dietmar Wechsler. Crowdsourcing as a method of transdisciplinary
research±Tapping the full potential of participants / Dietmar Wechsler- Futures,
2014. -ʋ± P. 14-22.
ͳʹǤ Doswell Roger. The management of the tourism sector. ² ICM (The
institute of commercial management), London, 2000.
ͳ͵Ǥ Dinesh K. Gupta, Veerbala Sharma. Exploring crowdsourcing: a viable
solution towards achieving rapid and qualitative tasks/ Dinesh K. // Library Hi Tech
News. ± 2013. ± Vol. 30. ± Iss 2. ± P.14.

ͳͶǤ Enright M.J. Why Clusters are the Wey to Win the Game? // World
link, ʋ-XO\$XJXVW3 24²25.
ͳͷǤ Green M.R. Risk and Insurance. ² Cincinnati : South-Western Pub.,
1988.

 ͸Ͳ
 ͳ͸Ǥ Handbook on Tourism Destinations Branding. ² First printing by World
Tourism Organization, Madrid, Spain, 2009. ² 195 p.
ͳ͹Ǥ Hartl A. Developing marketing strategies for tourism destinations in
peripheral areas of Europe: the case of Bornholm. Bournemouth University, Centre
for Regional and Tourism Research, Bornholm, Denmark 2002.
ͳͺǤ Hirshman A. The Strategy of Economic Development.-New Heven,
1958.
ͳͻǤ Haichao Zh, Dahui L., Wenhua H. Task Design, Motivation, and
Participation in Crowdsourcing Contests // International Journal of Electronic
Commerce. 2011. Vol. 15. Iss. 4. P. 57±88.
ʹͲǤ Hekman Erik, Rogier Brussee. Crowdfunding and Online Social
networks: CARPE 2013 Research paper / Hekman Erik, Rogier Brussee. ±
Manchester, 2013. ± P. 22.
ʹͳǤ Hirth M. Analyzing costs and accuracy of validation mechanisms for
crowdsourcing platforms / M. Hirth, T. Hoßfeld, P. Tran±Gia // Mathematical and
Computer Modelling, 2013. ± Vol. 57. ± P. 291-293.
ʹʹǤ Howe Jeff. Crowdsourcing: Why the Power of the Crowd is Driving the
Future of Business / Howe Jeff.// Crown Publishing Group. ± 2008. ± P.10.
ʹ͵Ǥ Holloway I.C. The Business of Tourism. ² Longman. ² 1998.
ʹͶǤ Gatautis R. Crowdsourcing application in marketing activities / R.
Gatautis, E. Vitkauskaite // Procedia ± Social and Behavioral Sciences, 2014. ±
ʋ± P. 1243-1250.
ʹͷǤ Geiger David. Task Recommendation in Crowdsourcing Systems/ David
Geiger.// Springer. ± 2015.
ʹ͸Ǥ Kaspar C. Die Tourismuslehre im Grundriss/5., ueberarb. und erg.
Aufl. %HUQ6WXWWJDUW:LHQ+DXSWɋ 65²70.
ʹ͹Ǥ Leiper N. The framework of tourism: Towards a definition of tourism,
tourist, and the tourist industry // Annals of Tourism Research, ʋ 6    Ɋ
390²407.
ʹͺǤ Luundberg D.E.,Stavenga M.H.,Crishnamoorthy N. Tourism Economics.
² Wiley. ² 1995.
ʹͻǤ Luis von Ahn; Blum, Manuel; Hopper, Nicholas J.; Langford, John
(2003). «CAPTCHA: Using Hard AI Problems for Security». Advances in
Cryptology ² EU ROCRYPT 2003. Lecture Notes in Computer Science 2656. P.
294.
͵ͲǤ Novelli, M., Schmitz, B. Spenser, T. (2006). «Networks, Clusters and
Innovation in Tourism: a UK Experience», Tourism Management, Vol. 27, pp.
1141²1152.

 ͸ͳ
 ͵ͳǤ Mathieson A., Wall G. Tourism: economic, social and environmental
impacts. ² London : Longman, 1982.
͵ʹǤ Majchrzak A. Towards an information systems perspective and research
agenda on crowdsourcing for innovation / A. Majchrzak- Journal of Strategic
Information Systems, 2013. -ʋ± P. 257-268.
͵͵Ǥ Merton, Robert K. The Matthew Effect in Science / Merton, Robert K.//
Science. ± 1968. ± P.56-63
͵ͶǤ Mollick Ethan. The dynamics of Crowdfunding: An exploratory study:
Research paper / Mollick Ethan. ± Philadelphia, 2013. ± P. 16.
͵ͷǤ Pearce P. L. Tourist behaviour: Themes and conceptual schemes.
Clevedon, UK : Channel View, 2005.
͵͸Ǥ Pike S. Destination Marketing An Integrated Marketing
&RPPXQLFDWLRQ $SSURDFK 8. (OVHYLHU¶V 6FLHQFH  7HFKQRORJ\ 5LJKts
Department in 2[IRUGɊ 24.
͵͹Ǥ Plog S.C. Leisure Travel: making is growth market again. N.Y., 1991.
͵ͺǤ Plog, S.C. Why destination areas rise and fall in popularity // The Cornell
+RWHODQG5HVWDXUDQW$GPLQLVWUDWLRQ4XDUWHUO\ʋɊ 55²58.
͵ͻǤ Rubies, E.B. Improving public-private sectors cooperation in tourism:
A new paradigm for destinations // Tourism Review, 56 (3/4), Ɋ 38²41.
ͶͲǤ Owen Gareth. Accounting for Hospitality, Tourism and Leisure. ²
Longman, 1995.
ͶͳǤ 2Z\DQJ-+RZWKHZRUOG¶VELJJHst brands and companies are opening
up to consumer creativity / Owyang J. // The state of crowdsourcing 2015. ± 2015. ±
P. 1-18.
ͶʹǤ Schmidgall R.S. Hospitality industry managerial accounting.
Educational institute of the American hotel &lodging association, Michigan, 2002.
Ͷ͵Ǥ Tourism Highlights. Edition 2008. ² Madrid, WTO Publications
Department. ² 2008.
ͶͶǤ Tourism Highlights. Edition 2011 Edition. ² Madrid, WTO Publications
Department. ² 2011.
ͶͷǤ Tourism Marketing and Management handbook // Editors S. Witt,
L. Moutinho. ² Prentice Hall International (UK) Limited, 1995.
Ͷ͸Ǥ Tribe John. The economics of Leisure and tourism. ² Butterworth
Heinemann. ² 1995.
Ͷ͹Ǥ UN WTO World Tourism Barometer, Committed to Tourism, Travel
and Millennium Development Goals / Volume 7, No. 1, January, 2009.
ͶͺǤ UN WTO World Tourism Barometer, Committed to Tourism, Travel
and Millennium Development Goals / Volume 8, No. 1, January, 2010.

 ͸ʹ
 ͶͻǤ Wanhill S. Principles of tourist destination development. Bornholms
Forkningscenter and Bournemouth University, 1996.
ͷͲǤ Hernandez A., Leon C.J. The Economic Cycles of Tourism // Review on
Economic Cycles. 2002. Vol. 5. No. 1. P. 1²27.
ͷͳǤ 7KH 7UDYHO  7RXULVP &RPSHWLWLYHQHVV 5HSRUW  >ɗɥɟɤɬɪɨɧɧɵɣ
ɪɟɫɭɪɫ@ http://www.weforum.org / reports / travel-tourism- competitiveness-
report- ɞɚɬɚɨɛɪɚɳɟɧɢɹ 20.09.13).
ͷʹǤ The Travel & Tourism Competitiveness Report 2013
http://www3.weforum.org/docs/WEF_TT_Competitiveness_ Report_2013.pdf
ͷ͵Ǥ UNWTO Tourism Highlights. Edition 2011. URL:
http://mkt.unwto.org/sites/all/files/docpdf/unwtohighlights1 HQOUBSGI ɞɚɬɚ
ɨɛɪɚɳɟɧɢɹ 28.09.11).
ͷͶǤ US Competitiveness Ranking Continues to Fall; Emerging Markets
Are Closing the Gap. URL : http://www. weforumorg / news / us-competitiveness-
ranking-continues-fall- emerging-markets-are-closing-JDS ɞɚɬɚ ɨɛɪɚɳɟɧɢɹ
28.09.11).
ͷͷǤ Ries, E., 2011. The Lean Startup: How Today's Entrepreneurs Use
Continuous Innovation to Create Radically Successful Businesses. Crown Business,
50: 320
ͷ͸Ǥ 5RJRYD Ⱥ, 2021.Crowdsourcing integration in the tourism
industry.Service in Russia and abroad, ʋ53.
ͷ͹Ǥ RogRYD Ⱥ  Ⱥssessment of awareness of the population of the
region about the possibilities of crowdsourcing in regional management. Global
scientific potential, 2 (47): 39-43 (In Russian)
ͷͺǤ Simmons, J., Nelson, L., 2011. Intuitive Biases in Choice versus
Estimation: Implications for the Wisdom of Crowds. Journal of Consumer Research,
38: 1-3.
ͷͻǤ Wiktorowicz, Q., 2000. Civil society as social control: state power in
Jordan. Comparative Politics, 1: 43-51.
͸ͲǤ The Indirect of tourism an economic analysis by Professor François
Vellas Toulouse University ² TED AFL Third Meeting of T20 Tourism
Ministers Paris, France, 25 October 2011.
͸ͳǤ Tourism 2020 Vision. Volume 7: Global Forecasts and Profiles of
Market Segments, ² Madrid, 2001.

 ͸͵
 Basic concepts of tourism economics

A joint stock company is a commercial organization, the authorized capital of

which is divided into shares, each of which is expressed in a security, called a share,
that satisfies the obligatory rights of the participants (shareholders) of the company in
relation to the company.
Share - a security, evidence of investment of a certain amount of money or
contribution (share) in the authorized capital of a joint stock company.
Depreciation - monetary compensation for the depreciation of fixed assets by
including part of their cost in the costs (prime cost) for the production of products or
services.
Gross margin (marginal income) - the difference between revenue from the
sale of a tourism product and variable costs.
Accounts receivable - the contractual or estimated cost of goods shipped, works
handed over and services rendered until the receipt of payments for them to the
company's accounts, or offset of mutual claims.
Destination is a geographical area that has a certain attractiveness for tourists
and offers a certain set of services that meet the needs of the tourist and satisfy his
demand for transportation, overnight stays, meals, entertainment, etc. Moreover, this
should be exactly the set of services and necessarily of such quality that the tourist
expects when purchasing the tourist product offered to him.
Debt capital of a travel industry enterprise - capital that is formed at a travel
industry enterprise from external sources in the form of various borrowed funds
(loans, loans, leasing, etc.).
The financial strength margin is the difference between revenue and the
threshold of profitability.
Tourism infrastructure is a set (complex) of interrelated structures, enterprises
and tourist resources aimed at creating general conditions for the implementation of
tourism and the activities of tourism enterprises.
The infrastructure of the tourism industry is an organizational and economic
system that mediates the movement of tourism products and services from seller to
buyer, a set of institutions and organizations serving the tourism market and
performing certain functions to ensure its normal functioning.
Indirect costs are costs attributable to the entire volume of products (services)
produced during a certain period of time.
Gross margin ratio is the share of marginal income in total revenue.
The critical volume of sales of a tourist product (point of no-loss) is the
amount of sales of a tourist product at which the profit of an enterprise in the tourism
industry is zero.

 ͸Ͷ
 Liquidation value of fixed assets - the value of fixed assets at the time of their
liquidation.
Obsolescence of fixed assets - a decrease in their use value under the influence
of scientific and technological progress.
Insolvency (bankruptcy) - a debtor's inability to fully satisfy creditors'
monetary obligations and (or) to fulfill the obligation to pay mandatory payments
recognized by an arbitration court.
The depreciation rate is an indicator that determines the share of the value of
fixed assets transferred annually to the depreciation fund.
A limited liability company (LLC) is a commercial organization established
by one or more persons, the authorized capital of which is divided into shares defined
in the constituent document.
The initial (book) value of fixed assets is the actual price at which fixed assets
were purchased.
Variable costs - costs that depend on the volume of production and sales of
products (services).
The threshold of profitability is the critical volume of proceeds from the sale
of a tourist product, at which the profit of an enterprise in the tourism industry is
zero.
Fixed costs are costs that do not depend on the volume of production and sales
of the tourist product (services).
An entrepreneur is a subject who, without fear of responsibility and risk, is
capable of innovative, proactive activities to create goods and services that are more
attractive to consumers and can successfully compete in the market.
Entrepreneurial activity is an independent activity carried out at one's own
risk, aimed at the systematic receipt of profit from the use of property, sale of goods,
performance of work or provision of services by persons registered in the manner
prescribed by law.
The business environment in tourism is an integrated set of various objective
and subjective factors that allow an entrepreneur to succeed in achieving their goals,
in the implementation of entrepreneurial tourism projects and contracts with a
sufficient profit (income).
Entrepreneurship in tourism is a special type of economic activity that is
based on an initiative, an innovative entrepreneurial idea and is aimed at the
production and sale of tourism products (services) in order to generate profit and
satisfy the needs of tourists.
An enterprise of the tourism industry is an independent economic entity
created by an entrepreneur or an association of entrepreneurs for the production of

 ͸ͷ
tourism products and the provision of tourism services in order to meet tourism needs
and generate profit.
The profit of an enterprise in the tourism industry is an economic category
that reflects the income generated in the field of tourism in the process of
entrepreneurial activity, the excess of the income of an enterprise in the tourism
industry over its expenses.
Net profit is the profit remaining at the disposal of the hotel complex enterprise
after payment of income tax and other mandatory payments and contributions to the
budget and extra-budgetary funds.
Effectiveness - the degree of implementation of planned activities and
achievement of planned results.
Resource efficiency - the degree of useful use of resources during the
functioning of the system.
The profitability of the enterprise is the ratio of profit to costs.
The cost price of a tourist product (services) is the aggregate of all costs of a
travel industry enterprise required for the production and sale of a tourist product
(services).
Equity capital of a travel industry enterprise is the value appraisal of the
property of a travel industry enterprise fully owned by it.
Substitution is a property of interchangeability characteristic of a tourist
product, when, for example, a tourist package can include hotels of different
categories, or offer a tourist a similar tour, but different options for delivery to the
destination (by plane, train or bus).
The breakeven point is the volume of the issue at which the profit is zero.
Tourist product - a set of transportation and accommodation services provided
for the total price (regardless of the inclusion in the total price of the cost of
excursion services and (or) other services) under an agreement on the implementation
of a tourist product.
The tourist market is a system of economic, legal, social relations connecting a
large number of manufacturers of a tourist product and real and potential buyers who
are able and willing to buy this tourist product.
Economic efficiency - 1) an assessment of the ratio between the result obtained
and the resources spent on its achievement, 2) an indicator calculated as the ratio of
the result to the costs required to achieve this result.

 ͸͸
 Tests

1. One of the main directions of tourism development in the world in the period
up to 2020 is:
a) business tourism;
b) space tourism;
c) ecological tourism.
2. A set of hotels and other accommodation facilities; means of transport;
public catering facilities, educational, business, health, sports and other facilities;
organizations engaged in tourist and travel agency activities, as well as organizations
providing excursion services and services of guide-interpreters, is:
a) tourism economics;
b) tourism industry;
c) tourism industry.
3. With a negative tourism balance, the multiplier effect in tourism:
a) is equal to zero;
b)> 0;
c) <0.
4. The impact of tourism on the country's balance of payments expresses:
a) income function;
b) foreign economic function,
c) leveling function.
5. The organizers of tourism are:
a) travel service providers;
b) travel service providers, tour operators and travel agents;
c) tour operators and travel agents.
6. The material and technical base of tourism includes:
a) transport and accommodation enterprises, service personnel;
b) enterprises of transport, accommodation, catering, service personnel;
c) enterprises of transport, accommodation, food, entertainment.
7. An official document establishing the right of the tourist to the services
included in the tour and confirming the fact of the provision of services is:
a) tourist voucher,
b) voucher;
c) application.
8. Temporary departure of citizens of a particular country from a permanent
place of residence within the national borders of the same country for recreation,
satisfying cognitive interests, playing sports and for other tourist purposes determines
the category:

 ͸͹
 a) national tourism;
b) domestic tourism;
c) outbound tourism.
9. Travel agent is:
a) travel service provider;
b) seller of tourist products;
c) manufacturer of travel services.
10. Any person who travels to a place outside of his usual environment for a
period not exceeding 12 consecutive months whose main purpose of travel is not to
engage in activities paid for from a source in the place visited is defined as:
a) tourist;
b) visitor;
c) excursionist.
14. Passengers of cruises living on board the ship, as well as members of the
crews of foreign aircraft and ships (who are not citizens of the host country and stay
in it for one day) are classified as:
a) sightseers;
b) tourists;
c) other travelers.
11. Tourism resources:
a) all natural and cultural-historical resources used for tourism purposes;
b) economic convenience of travel;
c) natural and man-made objects suitable and used for tourism purposes.
12. Delivery of tourists from the place of their permanent residence to the place
of destination (the starting point of the route) and back is:
a) transfer;
b) transtour;
c) transport services according to the program.
13. Contract of order, contract of commission, contract of sale and purchase
characterize the relationship between:
a) tour operator and travel agent;
b) travel agent and tourist;
c) tour operator and tourist.
14. Receiving the maximum benefit from travel arrangements is:
a) the cardinal goal of the tourist business;
b) the strategic goal of the tourist business;
c) the subject of study of tourism economics.
15. The combination of economic, political, legal, physical, socio-cultural
factors is:

 ͸ͺ
 a) microenvironment of tourist business;
b) the macro environment of the tourist business;
c) the internal environment of the travel company.
16. Passive tourism is characterized by:
ƕD SRVLWLYHEDODQFHRIWRXULVP
ƕE QHJDWLYHEDODQFHRIWRXULVPDQGSRVLWLYHEDODQFHRIWUDGH
ƕF DQHJDWLYHWUDGHEDODQFH
17. Intangibility, impossibility of storage, inconsistency of quality,
irreversibility, inseparability from the source in the aggregate are the main
characteristics:
a) tourist services;
b) tourist resources;
c) tourism business.
18. "Anticipate", "organize", "dispose", "control":
a) management functions in tourism;
b) principles of management in tourism;
c) objectives of management in tourism.
19. The concept of "overnight visitor" defines a category:
a) tourist;
b) sightseer;
c) any traveler.
20. To denote the quality of the services provided, the concept is used:
a) service level;
b) quality of service;
c) class of service.
21. Consolidation by strengthening individual production units or by
concentrating within a wide range of enterprises is:
a) specialization;
b) concentration of production;
c) cooperation.
22. Strategy of competitive behavior, according to which the travel agency
concentrates its efforts in several areas that are most interesting for consumers:
a) strategy of specialization;
b) differentiation strategy;
c) strategy of leadership by saving on costs.
23. The organizational structure of a tourist enterprise is:
a) the set of administrative services of the organization;
b) combination of channels of power and information transfer between
administrative services;

 ͸ͻ
 c) a system for organizing information flows between administrative services.
24. The organizational structure of tourism enterprises, in which each linear
process has its own system of services, is called:
a) linear;
b) linear-functional;
c) divisional.

 ͹Ͳ
Buy your books fast and straightforward online - at one of world’s
fastest growing online book stores! Environmentally sound due to
Print-on-Demand technologies.
Buy your books online at
www.morebooks.shop
Kaufen Sie Ihre Bücher schnell und unkompliziert online – auf einer
der am schnellsten wachsenden Buchhandelsplattformen weltweit!
Dank Print-On-Demand umwelt- und ressourcenschonend produzi
ert.
Bücher schneller online kaufen
www.morebooks.shop
KS OmniScriptum Publishing
Brivibas gatve 197
LV-1039 Riga, Latvia info@omniscriptum.com
Telefax: +371 686 204 55 www.omniscriptum.com
View publication stats