MACRO PERSPECTIVE OF TOURISM AND HOSPITALITY

MACRO-PERSPECTIVE

Macro perspective is a form of analysis which focuses on the structure of society and provides a way of
seeing society as a unified whole.

In this macro perspective minimal attention is given to the individual or the subjectivity of actors. The
Macro-Perspective theory focuses on the structure of society and provides a way of seeing society as a
unified whole. The structures of society are thought to be primary and responsible for shaping the
individual.

A micro perspective focuses on the individual level, while a macro perspective focuses more broadly on
society.

The Macro-Perspective theory is an extension to the Structural

Functionalism theory. Feminism, Marxism, functionalism, and conflict perspectives are macro-
perspectives because they look at how society works at large.

What is the Tourism Industry?

Tourism is generally regarded as the act of travelling to a different location, for either business or
pleasure purposes. However, it actually has quite a specific definition: the act of travelling to another
environment, for at least 24 hours, but for no longer than one year, for purposes related to business or
leisure.

A tourist is generally only classed as such if they stay in overnight accommodation situated in the location
they travel to. By its very nature, tourism involves a round trip, rather than travel in one direction only.
With this in mind, the tourism industry refers to all aspects of the service industry that cater to tourists.

What is the Travel Industry?

Travel refers to the act of moving from one location to another. This can refer to long-distance travel,
short-distance travel, overseas travel, domestic travel and various other forms. Crucially, travel also
includes both round trips and one-way journeys, and it covers a wide variety of different travel purposes.

The travel industry, therefore, refers to the numerous aspects of the wider service industry which cater for
the needs and desires of those who have travelled from one part of the world to another.

The Difference between the Travel and Tourism Industry

Given the definitions above, it is understandable that many people struggle to see much of a distinction
between the tourism industry and the travel industry. Indeed, there is clearly significant overlap between
the two, and many of the businesses and services that cater for tourists also cater for travellers more
generally.

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Nevertheless, there are some notable differences. Essentially, the tourism industry is concerned with
people travelling for business or pleasure purposes, staying in their destination for at least one night, and
then returning. By contrast, the travel industry has a wider scope, covering more travel purposes and
durations.

Sectors and Companies within the Travel and Tourism Industry

1) Transportation

The transportation sector is one of the most obvious sectors that falls under both the travel and tourism
umbrellas, and is concerned with the movement of people from one location to another. This includes a
wide variety of different types of travel, including air, road, rail and water-based methods. This sector
enables tourism in the first place, but also provides tourists with a means of getting around after they
arrive at their destination.

Airline Industry
Air travel is one of the main way that tourists and travellers reach their chosen destination, and the airline
industry provides various services, including scheduled and chartered flights. Companies within this sub-
category may offer flights to domestic and international destinations, as well as both long haul and short
haul flights.

Car Rental
Car rental services provide customers with temporary access to a car. These services can enable tourists
or travellers to actually get to their chosen destination in the first place, but many customers use them
after they have arrived, as they provide a greater amount of freedom for exploration than relying on
public transport.

Water Transport
As the name suggests, the water transport sub-category includes all forms of transport that carry
passengers across water. This includes ocean liners and ferries, which tend to voyage from point A to
point B, as well as cruise ships, where transportation is not the only purpose and the voyage itself is a
huge part of the travel experience.

Coach Services
In many cases, coach services are one of the most cost-effective ways for tourists or travellers to reach
their chosen destination, and they are especially popular for day trips, although coach travel does cater for
international travel too. Moreover, local bus services also fall underneath this umbrella.

Railway
Railways are another popular transportation method, helping passengers to easily get from one location to
another. Rail services are especially popular with domestic travellers, due to their convenience and
regularity. Moreover, many major cities make use of subway-style rail services, facilitating quick and
easy movement.

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Spacecraft
A more recent form of transportation, which is going to become increasingly influential in the years
ahead, is the spacecraft. The most famous example of a company operating within this area is Virgin
Galactic, which is hoping to be able to provide commercial space tourism via passenger trips into space in
the near future.

2) Accommodation

The travel and tourism industries also both contain the accommodation sector, with people requiring
overnight accommodation for varying lengths of time. The accommodation industry offers a variety of
different options for customers, catering to different tastes, budgets and requirements. In addition to
providing shelter and a place to sleep, many companies in the accommodation sector also provide a range
of other services.

Hotels
The most popular form of accommodation for tourists, hotels are establishments that offer overnight stays
on a short-term basis. They provide guests with private rooms, which will typically include an en suite
bathroom and other facilities. Additionally, most hotels provide services like housekeeping, room service
and laundry.

Shared Accommodation
The rise of platforms like Airbnb has increased the popularity of shared accommodation, which typically
consists of a space in a house, which may be shared with the owners. The accommodation itself may
consist of a private room, or may be a room that is shared with other guests using the facility at the same
time.

Hostels
Hostels are a form of shared-room lodging, where guests pay for a bed in a dormitory-style set up. Rooms
will each provide multiple beds, with guests sharing kitchen and bathroom facilities. They are typically
classed as a budget option, and are usually provided on a self-catering basis.

Camping
A form of outdoor accommodation, which makes use of temporary shelter, usually in the form of a tent.
Tourists and travellers who camp may opt to stay at a commercial campsite, which will provide additional
facilities or amenities, or they might prefer to make their own campsite in a publicly accessible area, like
a national park.

Bed and Breakfast

Most bed and breakfast accommodation is situated in a converted private house or pub, and will provide
guests with a private room for the night and breakfast in the morning. In many cases, the owner of the
B&B will live in the building too. Guests may be offered en suite bathroom facilities, or they may need to
share them.

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Cruises
Cruises are classed as both a form of transportation and a form of accommodation. The reason for this is
because those on the cruise are allocated their own cabin, where they can rest, relax and sleep, and
passengers spend the vast majority of the cruise actually on the cruise ship, benefiting from classic
accommodation services.

Farmhouse Accommodation and Agri-Tourism

Agri-tourism remains a fairly niche concept, but one which is gaining increased traction, with tourists
spending time on a farm, seeing the day-to-day work that goes on first-hand and even joining in.
Farmhouse accommodation is simply accommodation that facilitates this kind of experience and it often
resembles a B&B.

Timeshare Accommodation
Finally, timeshare accommodation refers to accommodation where ownership is shared between multiple
different people, with usage rights being allocated to each owner at a different time of the year. This kind
of accommodation tends to include condos and lodges, and owners are usually allocated usage rights for a
week or two weeks.

3) Food & Beverage

Food and drinks are basic human needs and the food and beverage industry caters these needs among
tourists and travellers. Again, there are a wide range of different company types that fall within this
sector, providing customers with an array of different options. It is also worth noting that the food and
beverage industry also provides opportunities for tourists and travellers to socialise with friends, or meet
new people.

Restaurants
Restaurants are establishments which provide food and drink, which is primarily eaten on the premises.
With that being said, the restaurant sub-category of the Travel and tourism industries also includes fast
food restaurants and takeaways, in addition to family restaurants, diners, luxury restaurants and other
eateries.

Catering
In relation to travel and tourism, the term catering is usually used to refer to food and drink services that
are situated in locations where eating and drinking are not the primary attraction. Therefore, it would not
include restaurants, but it would include food and drinks sold on public transport, in parks and at tourist
sites.

Bars & Cafés

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Bars and cafés provide a relaxed environment for travellers to eat and drink. In the case of bars, the focus
tends to be on sales of alcoholic drinks and soft drinks, while in the case of cafés, the focus tends to be on
hot drinks and light snacks. Both environments also provide a place for people to socialise.

Nightclubs
Some locations in the world attract a large number of tourists off the back of the night life on offer, with
nightclubs being the main example. These clubs are establishments which stay open until late at night and
combine music with alcohol sales. Most nightclubs also feature a stage for performers, and a dance floor
for guests.

4) Entertainment

Once tourists or travellers arrive at their chosen destination, they will often need entertainment, even if
that was not the primary purpose of their journey. However, in many cases, companies or establishments
providing entertainment are one of the major attractions drawing people to a location in the first place.
Some of the sub-categories within the entertainment sector of the travel and tourism industry are outlined
below.

Casino
A casino is an entertainment establishment, which provides people with opportunities to gamble –
primarily through luck-based card, dice and slots games. In addition to these games, many casinos are
connected to hotels or resorts, and many also host other entertainment, such as musical or comedy
performances.

Tourist Information
The tourist information sub-category is focused on providing travellers with important information about
things to do in the local area. This includes offline methods, such as tourist information offices and
leaflets, as well as online methods, such as informational websites and social media accounts.

Shopping
Shops play a varied role in the travel and tourism industries, catering to people’s basic needs, while also
providing a form of entertainment. Indeed, many people travel to specific parts of the world to experience
the shopping in that location, with examples including 5th Avenue in New York, Bond Street in London
and Rodeo Drive in LA.

Tourist Guides & Tours

Tourist guides offer organised tours of a location, which will typically consist of them taking a group of
people to some of the important attractions or tourist sites nearby. The role of the tourist guide is to
factual information and context, helping to make the tour more interesting and educational.

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5) Connected Industries

Finally, there are a number of other industries that are more broadly linked to either the tourism industry,
the travel industry, or both. These include companies that promote the interests of the travel industry
itself; businesses that help to actually connect customers with travel and tourism products; and
organisations that provide either practical support or logistical assistance for tourists and travellers.

Financial Services
A number of financial services are relevant to both the tourism industry and the travel industry. The most
obvious of these include travel insurance and medical insurance products, while other examples include
services linked to currency conversion and the acquisition of travellers cheques.

Travel Agents
Travel agents sell travel products on behalf of suppliers and generally receive a commission for doing so.
They also provide customers with advice on what the best travel products are, based on the customer’s
preferences and budget. In this sense, they act as an intermediary between tourists and suppliers of travel
products.

Tour Operators
The role of a tour operator is to combine tour products and travel products together, in order to sell
package holidays. Most commonly, a package holiday will consist of a combination of air travel,
accommodation, hotel transfers and the services of holiday reps, who are able to provide organised
activities.

Online Travel Agencies

An online travel agency will typically perform a very similar role to a more traditional travel agency,
albeit using the power of the internet. While the purpose is still to connect tourists with travel products on
behalf of suppliers, there is more of an emphasis on self-service methods.

Tourism Organisations
Tourism organisations tend to be organisations that act in the interests of the tourism industry itself,
lobbying on its behalf or promoting its interests. Examples would include national tourism information
companies, local tourist boards, tourism agencies, tourism charities and inspection agencies.

Educational
Lastly, the educational sub-category includes business that deliver the kinds of education services that
attract tourists and travellers. This is a growing aspect of the tourism industry and includes organisations
that are linked to conferences, exhibitions and training activities, as well as certain academic institutions.

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Travel and Tourism Marketing

The travel and tourism industry is one of the largest and most competitive in the world and this means
that tourism businesses can live or die based on the quality of their marketing efforts. In particular, it is
essential that companies like hotels, airlines, travel agents, tour operators and car rental services use
the latest marketing methods to stand out.

How Tourism Industry can Achieve Success with Revenue Management

The travel and tourism industry including the hospitality sector can all optimise their income during the
low and high demand periods. Thanks to revenue management, businesses can assess the customers’
demand behaviour with the aim of increasing their income. The main objective of revenue management
strategy is to sell the right product or service to the right clients for the right price. This can only be done
through understanding the customers’ perception of your service or product before being able to
accurately adjust the prices.

Characteristics of Tourism and Hospitality

Just like services products of tourism and hospitality industry are well-known to be perishable. Thus,
time element has great implication in their marketing. Unlike tangible products, service cannot be
touched, tested or felt before they are consumed.

The first thing to do when designing a business strategy for any industry is to have deep knowledge of its
most important product.

Only then a marketing strategy can start to be designed but we will discuss that in coming chapters. In
this post, we will list the most significant characteristics of the tourism product.

1. Intangibility
Tourism products are services and, as such, they are largely intangible though with tangible, concrete
elements. The importance of the abstract elements is such that we must make them tangible in order to
apply marketing techniques to the services we provide. A direct consequence of intangibility is that the
properties of tourism products cannot be transmitted, displayed or tested in advance. It is their use
what is transmitted. This implies that the purchased product is unique and, in contrast to tangible
products, tourism products are fundamentally experiences. Besides, intangibility implies that buyers are
not sure about what they buy or about what they will get. This is why those who are planning to

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contract the services of a tourism package will look for information about it in advance in order to
reduce uncertainty to the maximum.

2. Limited life-span
Tourism products cannot be stored so, unless consumed when planned, they are waste. This affects
hotel industry in such a way that we must choose between selling at the market’s pace and selling in
advance (through agents). In fact, overbooking is a consequence of this limited life-span, an inherent
feature of tourism services that we must try to counterbalance.

3. Aggregability
A tourism product can be formed by aggregating various products, and this makes its commercialization
and quality control more difficult. Prices can vary by eliminating or adding services to the existing pack,
creating new, customized, products.

4. Heterogeneity
As mentioned, aggregability implies a difficulty when it is about controlling all phases so that they are at
the same level of excellence. A single mistake in any aspect affects the final product. Nevertheless,
aggregability allows preparing custom-designed products, no matter how standardized they are initially.
In this sense, we can talk about “heterogeneous standardization”. It is not only the product what is
being customized but a given trip will be different from any other even if they share the same
characteristics.

5. Simultaneity of production and consumption

While other products are created, stored, purchased and then used, tourism products are purchased
first and then produced and consumed simultaneously, at the same place and time. This implies that
services cannot be separated from their providers and, therefore, consumers have to travel to the
location of the product, not vice versa. For this reason, the human component in the provision of
services is extremely important.

The Top 6 Benefits of Working in the Hospitality Industry

Are you thinking about starting a career in the hospitality industry? If so, you can pat yourself on the
back for making a very wise choice. Although it does take hard work to get into this field and succeed,
there are a lot of great things that go along with following this path. Let’s look at six specific benefits to
see exactly why a career in hospitality is so desirable:

Amazing Opportunities: If you love variety, you’ll also love the fact that working in hospitality is never
dull. Whether it’s a new challenge or the opportunity to travel to different places, this type of spice
makes it very easy to wake up in the morning and feel excited about heading to work for the day.

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Appreciation: There are plenty of jobs that involve mostly thankless work. While society couldn’t
function without people willing to do these jobs, that doesn’t mean those individuals feel any type of
appreciation on a daily basis. The nice thing about hospitality is you won’t have to be put in this type of
position. Instead, patrons will remind you on a daily basis of just how much they appreciate what you do
for them. The knowledge that you’ve just made someone’s day is a feeling that never gets old!

Meritocracy: One of the reasons many people aren’t interested in working in specific corporate
environments is because they know that the only way they’ll be able to move up is by playing constant
political games. If you’re the type of person who wants the quality of your work to speak for itself, you’ll
be very fond of how the hospitality industry operates. People will notice when you take initiative and
follow through. If you have a go-getter attitude, the sky will be the limit in terms of where your career
can go.

Lots of Perks: Even though this isn’t the biggest driver of most people’s happiness and satisfaction with
their job in hospitality, it’s still worth noting. As you may have guessed, being in a position that’s about
ensuring other’s happiness does mean that you will get to reap plenty of perks as well.

Stability: The impact of the 2008 and 2009 financial meltdown wasn’t limited to the housing industry.
The travel and hospitality industry also took a big hit as a result of people tightening their wallets in
response to concerns about the financial future. Although there’s no sugar coating the fact that those
were very dark times for the industry, it survived and is once again flourishing. Being able to survive that
type of trial shows just how robust hospitality is as an industry.

Exercise Creativity: Musicians and writers aren’t the only people who get to enjoy creative work.
Because there are always unique challenges that need to be tackled within hospitality, you’ll always be
able to put both your critical and creative thinking to good use.

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Relationships between Tourism and Hospitality Industry
Often, in the context of tourism education, tourism is part of the hospitality (i.e. hotel and restaurant)
centred education. However, that does not means tourism is fall under the broad topic of hospitality,
as it is also often that tourism was and is also being taught in numerous other disciplines including
business, applied economics, marketing, and geography (Gartner, 2002). In other words, while
tourism and hospitality are inter-related concepts, they are not the same. Tourism is more about
tourists travel to a different place, while hospitality is about treatment to the others or guests (be it
they are tourists or not).

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