TRANSPORTATION

SECTOR
Learning Outcomes
At the end of this chapter, you should be able to:
1. trace the evolution of transportation and travel;
2. discuss the historical development of transport systems;
3. explain the selection of transport mode;
4. discuss the role of international rail transportation;
5. identify the reasons for the growth and decline of ship travel;
6. explain the importance and scope of the bus/motor coach industry;
7. describe the impact of private car ownership on the tourism industry;
8. enumerate the dynamics of the worldwide car rental industry; and
9. discuss the role of the airline industry in the development of tourism
Transportation and Travel Evolution

 Transportation and travel have undergone many changes.

A review of the history of transportation and travel shows
that their evolution took seven eras.
 These are the pre-industrial travel system era, the early-
industrial travel system era, the mature- railway system
era, the express-travel system era, the automobile-based
travel system era, the modern-tourism travel system era,
and the post-mobility adjustment era.
Pre-Industrial Travel System Era

 This was the period before the widespread industrialization in Europe and
North America. It was before the development of railways in the two
continents. There were few common carriers.
 There were almost no regularly scheduled transportation services. There
was little travel. Travelers made their own arrangements with several
suppliers.
 It was the era of the stagecoach and the wayside inn. Only few people had
the money and the reason to travel.
Early-Industrial Travel System Era

 During the era, road improvements such as

railways, canals, and steamship services were
brought about due to rapid industrialization and
advances in transportation technology.
 Common carriers. came into existence and began
to offer regularly scheduled transportation
services.
 Travel increased because more people who had
money traveled.
 Mature-Railway System Era
 This era was characterized by railways which expanded
their operations by running hotels and providing other
travel-related services.
 The railways began to market their services more
aggressively. Travel agencies and tour companies were
formed.
 Thomas Cook, an innovator in this field during this era,
began his company's activities in the United Kingdom in
1840. More people traveled in this era than in the previous
one.
Express-Travel System Era

 During this era, express service

increased.
 Trains and other forms of transportation
did not stop at every station or terminal
but only at the major ones.
 This increased the speed of travel and
encouraged more travel than before.
Automobile-Based Travel System Era
 This influence of the privately owned automobile was
enhanced in North America and Europe from the 1920s
onward.
 Car ownership boomed in North America. Motorways,
interstate highways, and other trunk highways were
developed in the latter half of this era which was from
1920 to 1974.
 The automobile was predominant over other travel
modes from 1920 to 1945.
Modern-Tourism Travel System Era
 The period from 1945 to 1974 is known as the modern-
tourism travel system era. Car ownership continued to
grow at a fast rate, mainly at the expense of long-
distance rail travel.
 Mass air travel was another post-World War Il
occurrence.
 The introduction of wide-bodied jets in 1970 greatly
increased air travel. The 'mass tourism" philosophy and
marketing approaches were prevalent during the 1950s
and 1960s.
Post-Mobility Adjustment Era
 This era began in 1973 to 1974 as a result of the oil
embargo generated by the Organization of Petroleum
Exporting Countries (OPEC) and the resulting increase
in fuel prices.
 The events of the energy crisis basically changed the
travel patterns throughout the world.
 The present era is one in which travelers continue to
look to alternative, group-oriented modes of
transportation.
Historical Development of the Transport
System
 The desire to travel is stimulated with the improvement in transportation. Before World
War I, it took seven days for travelers to go from coast to coast by steam locomotive. By
1950, travelers could complete the journey in two and a half days by train.
 In 1938, an airplane with the speed of 400 miles an hour made possible nonstop coast-
to-coast flights of less than eight hours. In 1950, travel time from coast to coast was
lessened to four hours.
 At present, the Concorde can make a flight in two and a half hours. Table 2 shows the
historical development of the transport system.
Selection of Transportation Mode

 There are many reasons why people select one transportation mode over
another for their business and pleasure trips. The most common reasons
are cost, traveling time, safety, convenience, comfort, availability,
frequency of trips, ground services, terminal facilities and locations, status
and prestige, and departure and arrival times.
 People belonging to different travel segments have different value
perceptions. For example, the time spent in traveling as well as departure
and arrival times are very Important to the business traveler while the cost
of the trip is the traveler's primary consideration.
 Jagdish Sheth developed a theory identifying
transportation variables and the value of travelers. He
found out that travelers choose a travel mode based on
how they psychologically weigh the five actors, namely:
Junctional, aesthetic/emotional, social/organizational,
situational, and curiosity.
 Curiosity
utility refers to the traveler's perceived need to
do something new and different. Flying transatlantic on
Concorde may have a high curiosity value for many
business travelers.
Travel by Train

 Trains stimulated travel within the United States, Canada, and Europe in
the 19th and early 20th centuries. Britain had its first organized train tour in
1841 when Thomas Cook organized an excursion between Leicester and
Loughborough. In 1851. three million Englishmen boarded the train to see
the Great Exhibition in London. The train was instrumental in stimulating
the development of many seaside resorts in Britain.
 The first transcontinental route in the United States was completed in
1869.
 In 1863, long-distance rail travel boosted when George M. Pullman built the Pullman
coach, a luxury first-class sleeping and dining facility. In 1868, the diner car was
introduced on the Chicago and Alton line.
 The popularity of the train lasted only for a brief period after World War Il when the
automobile began to gain more popularity as a passenger transportation mode.
 Both Amtrak and VIA Rail have the national responsibility of providing intercity passenger
rail transportation. Since their establishment, both organizations have been successful in
increasing passenger volumes.
 Several attempts have been made to determine why travelers select the
train as a transportation mode.
 Four evident factors are: cost/price, comfort, safety, and the ability to see
the area where the train is passing. VIA Rail's onboard surveys of business
travelers have identified user cost, convenience, travel time, and comfort
as of primary importance.
A survey of Amtrak passengers showed that travelers favored the train for the following
reasons:
1. Safety;
2. Ability to look out of the train and see the interesting things en route;
3. Ability to get up and walk around;
4. Arriving at the destination rested and relaxed; and
5. Personal comfort.
 The negative factors of rail travelers are slowness in reaching the destination, inflexible
departure times, and lack of quality in food services. Promotions by Amtrak and VIA Rail
have emphasized the rest and relaxation benefits of taking the train.
 They have also pointed out that the downtown-to-downtown routing of trains saves the
time of the passengers.
 Train travel has continued in Europe and Asia more than in the United States,
particularly for long-distance travel. The Euro City network, formerly the Trans
Europe Express (TEE) network, as well as other national lines provided excellent
rail services between major cities in 10 countries.
 Although the importance of rail travel was reduced due to the popularity of the
automobile and airplane in many countries, railroads had been working hard to improve
their facilities to accommodate super trains with speeds between 150 to 250 miles per
hour.
 France has its own super train, the Tres Grande Vitesse which travels at a speed of 175
miles per hour between Paris and Lyons and Marseilles.
 In Russia, the Trans-Siberian Railroad, the longest in the world (5,787 miles) links
outlying Siberian industrial regions and mining centers with European Russia. Railroads
are important to the Russian economy. The Germans have a test track designed to carry
passengers at a speed of 130 to 240 miles.
Tres Grande Vitesse

 The popularity of the train system in Europe has increased, not only
because of its quality and efficiency, but because of the use of the
Eurailpass.
 In 1939, a number of European countries introduced the Eurailpass which
allowed a traveler to use it for two months of unlimited second-class travel
on any of the rail systems of the European countries. Later, it included
unlimited first-class service over different periods varying from 15 days, 21
days, one month, and three months with access to many ferries and
steamer routes. They also introduce the student Eurailpass for a second-
class travel.
 It is less expensive than the Eurailpass ang is good only in 16 countries.
Travel by Ship

 Travel by ship preceded travel by train but it was not until the middle of the
19th century that travel by ocean liners began to become prominent.
Ocean liners were used to provide an important link to passengers among
continents.
 At present, water transport has two major roles in travel and tourism-
ferrying and cruising.
 The steamship era began in 1840 when Sir Samuel Cunard pioneered the
first transatlantic-scheduled liner tips.
 Cruises are more of a vacation experience than a transportation mode.
The romance of cruising had been strongly promoted and was aided very
much by the popular television program, Love Boat. Cruises are divided
into three types depending on the duration of the trips. Short cruises are
one week or less, intermediate long cruises last one to four weeks, and
long cruises go around the world and take one to three months.
Cruise Ship
 Short-duration cruises are more popular because they require less vacation time and are
less expensive. Other reasons are travelers can satisfy their desire to experience new
environments and see new cultures and still bring with them the comfort, safety, and
convenience of home. In addition, there is no changing of hotels, airports, and food and
beds which may cause sleeplessness and other problems.
 Cruise ships may be divided into large vessels which can accommodate 180 or more
passengers and small vessels which carry less than 100 passengers. They are called
"mini-cruises" or "ultra-yachts." At present, the trend is toward large vessels. Recently,
the typical ship was built to carry 850 to 1,250 passengers but now, the average capacity
of a new ship is 2,000 passengers. The large cruise ships offer a wide array of services
and amenities to guests, most of which are packed into the cruise.
 Accommodations on board vary from rooms for three to four persons to lavish
staterooms. The rooms are air-conditioned and have private baths. A cruise ship is both
a floating hotel and resort because the guests are housed, fed, and entertained. Food is
offered throughout the day from seven-course meals to themed-event dinners. Cruise
ships also provide almost continuous entertainment which include charm classes,
language lessons, dance classes, bridge, table tennis, aerobics, jogging, and
shuffleboard.
 Cruises are promoted and sold on the basis of health, recreation, and pleasure. Theme
cruises are popular such as culinary cruises, historic voyages to less-known places,
stock market seminars, movie festivals, music festivals, as well as cruises devoted to art,
golf, astrology, tennis, photography, and beauty counseling. The United States
dominates the international cruise market by supplying more than 70% of total
passengers followed by Europe with 17%. Estimates of the total dollar income of the
cruise industry are difficult to obtain because income is earned from various sources
including the scale of births, gambling, bars, shops, and miscellaneous services.
 The cruise industry is largely owned by European companies which
are located in Denmark, Norway, Holland, Italy, Germany, Great
Britain, and Greece.
 Cruise lines have also lucrative market in the United Kingdom, West
Germany, and Australia, In Europe, Russian ships sail from ports in
Italy, the United Kingdom, and Holland. They offer lower rates and
good services.
 The cruise industry is largely owned by European companies which
are located in Denmark, Norway, Holland, Italy, Germany, Great
Britain, and Greece. Although, the cruise ship industry is not a US
industry in terms of ownership, several United States and American
territory cities serve as major ports of cruise ships.
 The Caribbean is the world's largest cruise destination Cruise passengers for
destinations within the Caribbean comprise 50% of total visitor arrivals.
 In order to attract more families, other cruise lines have begun to provide children's
activities and offer lower rates for a third or fourth passenger in a cabin. Several cruise
lines have also designed cruise packages which cater to the single segment and those
interested in health and fitness.
 Younger people prefer the three- to seven-day cruises. Older people take cruises of
seven days or less. The elderly usually join the round-the-world cruise. Cruise
passengers tend to be repeat customers. Once they experience a cruise, they begin
planning for the next.
 Another role of the ship travel and tourism is ferrying or the use of ferry boats. These are
used in the English Channel, the Irish Sea, the Hebridean Islands of Scotland, the North
Sea, the Maritime provinces and British Columbian coast in Canada, and on the Great
Lakes. Short-duration sightseeing cruise ship attractions are abundant in North America.
 The demand for cruising is expected to increase. Only a small part of the North American
population has taken a cruise. Market research shows that there are 24 million potential
passengers with sufficient time and money.
 Overcapacity is the major problem for the industry at present. However, the growing
incentive-travel cruise market, which now accounts for approximately 15% of all births, is
expected to help overcome the effects of overcapacity.
Travel by Automobile
 The real inventor of the automobile was Carl Benz of Mannheim, Germany. In 1885 to 1886,
he combined the bicycle and the international combustion engine and designed the
complete vehicle engine consisting of the engine, chassis, and transmission.
 Then came Henry Ford who, in 1908, produced his Model T car built with an assembly
technique for mass production. The price of the Model T car decreased from $825 in 1908 to
$260 in 1925.
 The automobile industry grew rapidly. However, it was only after World War Il that the
popularity of the automobile increased significantly.
 The introduction of the automobile brought about the decline of the train's popularity in
most developed countries.
 The advent of the automobile spread the benefits of tourism more widely and enabled
people to travel individually or in private smaller groups.
 The automobile brought about a more random pattern of travel movements, opened up
new destinations, and hastened the development of elaborate networks of automobile-
oriented facilities and services along highways and roads.
 Example of new facility types that developed in the United States and Canada after
World War Il were the tourist court and the motor hotel or motel.
 The automobile stimulated tourism by creating attractions along
tourist routes made accessible by the automobile. Examples are
homes of historical figures, scenic areas, and historic shrines and
monuments.
 Two important aspects of automobile travel are recreational vehicles
and car rentals. These two areas have developed so extensively in
North America and elsewhere that they are now significant elements
of tourism.
 Some car rental firms have added cellular car telephones for
business travelers. Another amenity is giving computerized driving
instructions to customers. In order to overcome low profits or losses,
auto rental companies have employed a number of different
strategies such as higher prices, flat-free commissions for travel
agents, and mileage limitations.
Travel by Bus/Motor Coach

 Bus travel is the most flexible and economical form of transportation. In the
United States, buses were first used to carry passengers intercity in the
early 1900s. There was little intercity travel before the 1920s. In 1928, the
Greyhound Company, the largest privately-owned bus company in the
world, was established. By this time, buses traveled from New York to Los
Angeles in about five days. With road improvements before World War II,
cross-country trip time was reduced to 90 hours.
 The terms "bus," "coach," and "motor coach" are used interchangeably. In
North America and elsewhere, the bus performs two major roles. The first is to
provide a regular schedule of intercity passenger transportation services. The
second is to provide charter and tour services. Intercity service is indirectly
competitive with private auto, rail, and air service.
 Charter and tour service is the fastest growing segment of the bus or motor
coach industry. Several tour packages are developed by tour brokers who
charter buses and arrange all the other components of the tour, including the
itinerary, lodging, sightseeing, admission, tour guides, meals, and the like.
These packages are usually sold through travel agents.
 Motor coach tours usually last five to six days and are limited to a particular
geographical area. The two principal markets for charter and tour services are
school- age children and senior citizens. Other markets include international
visitors. Gambling tours by motor coach to the casino centers of Las Vegas,
Reno, and Atlantic City are very popular.
 The increasing demand for motor coach tours, coupled with the improvement of buses,
could result in the future expansion of the bus charter and tour segment of tourism. The
present coaches are wider, have more leg room, more baggage space, lavatories,
climate and noise controls, better lighting, more sophisticated public address system,
and panoramic view windows.
Travel by Air

 The airplane had a revolutionary impact on tourism from World War Il

onward, The history of air transportation can be divided into three parts-
Pre-World War Il, World War I, and Post-World War II. On December 17,
1903, the Wright Brothers took a flight on a beach in North Carolina which
lasted 12 seconds with a distance of 120 feet.
 In 1927, the air industry developed regularly scheduled passenger trips
between Boston and New York. Other governments helped this growth in
the 1920s by subsidizing air companies.
 World War Il influenced the development of the airline industry. It helped further improve
airplanes by accelerating technological research to improve their size and speed and by
using the knowledge gained by thousands of servicemen who became familiar with
planes and air travel.
 The 1980s had witnessed still further improvements in aircraft technology with the
introduction of the DC-9-80 and Boeing 757 and 767 designed for fuel-efficient operation
offering approximately 30% lower fuel consumption for passenger than the older models.
 In the late 1950s and early 1960s, commercial jet aircrafts were introduced, increasing
the speed of travel and creating smoother flights and greater seating capacity for
passengers, The commercial airline industry improved further in the 1970s with the
introduction of wide-bodied aircrafts such as the Doughlas DC-10, Boeing 747, the
Lockheed Tristar 1011, and the European Aerobus.
 The 1980s had witnessed still further improvements in aircraft technology with the
introduction of the DC-9-80 and Boeing 757 and 767 designed for fuel-efficient operation
offering approximately 30% lower fuel consumption for passenger than the older models.
The introduction of the longer range Boeing 747-400 that has a range of 8,000 miles and
seating capacity of 418 will change travel patterns.
 Food service on the large planes is speeded by the use of modules, similar to cargo
modules. These are snapped into place on a lower level in the aircraft. The galley
modules contain prepared foods that are heated in flight by convection and microwave
ovens located near the module storage area. Elevators raise the food to the passenger
deck when it is ready.
 Since 1950, incomes have increased rapidly while airfares have declined. This made air
travel more attractive than ever. While the price of an airline ticket decreased, the quality
of service with regard to speed, size, and comfort improved.
Airline Regulation

 International tourism requires a system of international air transportation.

This system requires negotiations among nations and carriers in the form
of bilateral agreements. Overflight privileges must be obtained from all
nations over which an airline will cross during international flights. Airlines
are or may be assessed overnight charges for the privilege of flying over
other nations including countries which do not have formal diplomatic
relations with each other like Cuba and the United States.
 Lending rights, fuel purchase agreements, maintenance provisions, and other
considerations require bilateral negotiation.
 Governments throughout the world have agreed that a complete free market for
international air travel is not possible. The original idea for a worldwide system of airline
regulation took place in the Chicago Convention of 1944 and the Bermuda Agreement of
1946.
 The original idea for a worldwide system of airline regulation took place in the Chicago
Convention of 1944 and the Bermuda Agreement of 1946.
 The Chicago Convention marked the beginning
of continuous dialogue about various freedoms of
the air but was not successful in establishing a
multilateral system of commercial aviation rights.
The Bermuda Agreement established the first
worldwide model for future bilateral agreements
regarding the exercise of the eight freedoms of
the air:
1. First Freedom: The right of an airline to overfly one country to get to another;
2. Second Freedom: The right of an airline to land in another country for a technical
stopover (fuel, maintenance, etc.) but does not pick up or drop off traffic;
3. Third Freedom: The right of an airline, registered in country X, to drop off traffic from
country X to country Y;
4. Fourth Freedom: The right of an airline, registered in country X, to carry traffic back to
country X from country Y;
5. Fifth Freedom: The right of an airline, registered in country X, to collect traffic in country Y
and fly on to country Z, so long as the flight either originates or terminates in country X;
6. Sixth Freedom: The right of an airline, registered in country X, to carry traffic to a
gateway- a point in country X-and then abroad. The traffic has neither its origin nor ultimate
destination in country X;
7. Seventh Freedom: The right of an airline, registered in country X, to operate entirely
outside of country X in carrying traffic between two other countries; and
8. Eight Freedom: The right of an airline, registered in country X, to carry traffic between any
two points in the same foreign country; also known as cabotage.
 Only the first two technical freedoms have been widely accepted. The third, fourth, fifth,
and sixth freedoms are still subject to bilateral bargaining. The seventh and eighth
freedoms are usually allowed only in special circumstances. The bilateral air agreement
concepts which resulted from these meetings meant that airline service could not be
offered between a nation of origin and one of destination unless there was a specific
agreement between the two nations regarding the details of the service.
 Bilateral agreements were established to provide for the orderly development of the
international air transportation industry. The need for bilateral agreements was intensified
because small nations felt that they should have their own national airline or flag carrier.
 Transport Association (IATA) was formed to ensure cooperation among international
carriers. IATA is a democratic organization whose membership is open to any member of
the United Nations. It is supported by dues from 140 active and associate member
airlines.
 It links together with many non-IATA carriers throughout the world in Multinational
Interline Traffic Agreement. This agreement allows passengers to use a single ticket and
travel by several carriers around the world. It also makes the movement of air freight
worldwide easier. The primary purpose of IATA is to establish a system of international
rates and fares.
 Through IATA, the airlines enter into agreements concerning rates, conditions of
services, and routes to be given to each airline. The agreements are subject to the
approval of their respective governments.
Thank you!