Transportation Management: An Introduction

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TRANSPORTATION

MANAGEMENT

An Introduction
Transportation- this refers
to moving not just people but also
things, such as cargo. (Cargo is
an important revenue source for
most passenger airlines)
The Transportation Industry
 The Transportation sector plays the
important role since without travel, there
is no tourism. This sector comprises all
entities involved in the transportation of
goods and people from a point of origin to
a point of destination, or a number of
destination points and back to the point of
origin.
 Air Transportation companies- providing
scheduled services, air taxi operators, plus all
air companies
 Water Transportation Operators- such as
William, Gothong and Aboitiz9)WG & A),Negros
Navigation Company, Magsaysay, whether salt
or fresh water service, and the land facilities
required to service this such as port and piers.
 Land Transportation Entities- from smallest
unit such as tricycle associations to large bus
companies. Gasoline stations, highways, roads,
bridges and the maintenance of these are
essential to this sub sector.
SECTORS OF THE TRAVEL INDUSTRY

 Air Industry  Theme Parks


 Lodging companies  Stores and Shops
 Travel Agencies
 Parks & Recreation programs
 Cruise Lines
 Governmental Regulatory
Agencies
 Motor Coach Operators  Destination Marketing
 Tour Operators Associations
 Food Services  Research Companies
 Car Rentals  Insurance Companies
 Rail Travel  Financial Companies
 Meeting & Conventions  Technology Providers
 Sports & Entertainment  Trade Associations
Management  Travel Publications
 Attractions  Professional Services
Landscape of the Tourism Industry

GOVERNMENT SECTOR PRIVATE SECTOR

 Department of Tourism  The Transportation


 Philippine Convention Companies
and Visitors Corporation  Hostelry Industry
 Philippine Tourism  Entertainment Industry
Authority  The Travel Trade
 Local Government Units  Other Private Sector
 Other National Entities
Government Units
The Government Sector
- Is responsible for formulation of tourism policies.
It provides guidelines for the development of
destinations, and regulates the industry, in
collaboration with the government agencies.
Subdivided into:
1. National Government Unit

2. Local Government Unit


FOUR AGENCIES DIRECTLY
INVOLVED IN THE TOURISM
INDUSTRY
DEPARTMENT OF TOURISM
- Is the national government organization
overseeing the country’s tourism industry. Its
primary obligations are:
1. To assist in coordinating the plans and actions of
various government instrumentalities in tourism
matters.
2. To discharge the government’s responsibilities
arising from treaties, agreements, and other
commitments on tourism and travel.
3. To provide such other public sector services to
the tourism industry as well as formulation of
standards and the compilation of statistics in
tourism matters.
PHILIPPINE CONVENTION AND VISITORS
CORPORATION (PCVC)
- Is mthe marketing arm of the Department of Tourism. Its
main task is to promote the Philippines a tourist and a
convention and incentive travel destination.
3 DIVISIONS:
1. The Travel Trade Division- Undertakes marketing
activities to promote the Philippines as a tourist
destination among travel agents, tour operators, and
other travel related institutions
2. The Convention and Incentive Travel Division- focuses
marketing activities on event planners, meeting
organizers, and other entities that provide travel
incentives to their constituents.
3. The Corporate Affairs Division- provides support service
to the management and marketing units of PCVC.
PHILIPPINE TOURISM AUTHORITY
-has the following objective:

1. To undertake sustainable development and to open up


new, international standard tourist destinations.
2. To implement countryside development programs for
economic well- being, population dispersion and people
empowerment.
3. To undertake pioneering projects in areas where the
private sector will not venture.
4. To operate tourism and commercial assets of the
Philippine Government without competing with Private
sector.
5. To pursue an active privatization program for its assets
and properties.
THE LOCAL GOVERNMENT UNITS
- Regulates the establishment, operation and
maintenance of cafes, restaurants, beerhouses,
hotels, inns, motels, pension and houses, lodging
houses, and other similar establishments including
tour guides and transport.
OTHER NATIONAL GOVERNMENT UNITS
 DOTC- Department of transportation and
communications which is responsible for the
regulation and supervision of the transportation
and communications industries.
 CAB- Civil Aeronautics Board
 ATO- Air transportation office
 MARINA- Maritime Industry Authority
 PPO- Philippine Ports Authority
 LTFRB- Land Transportation Franchise and
Regulatory Board
 DPWH- Department of Public Works and Highways
which oversees of the country’s infrastructure, including
roads and bridges.
 DFA- Department of Foreign Affairs- which develops
and maintenance friendly relations with other country.
 DOJ- Department of Justice under which Bureau of
Immigration regulates the entry and exit of Foreign
Nationals.
 DENR- Department of Environment and Natural
Resources which oversees the protection of the natural
environment.
 DILG- Department of Interior and Local Government
which supervise the local government units.
 PNP- Philippine National Police which is responsible for
peace and order.
 Travel Trade- is made up of travel agents and tor
operators, also referred o as intermediaries or
middle men, and the tour guides.
 Travel Agency- is a department store of travel. It’s
a place where a person can secure information,
expert counseling and make arrangement travel
by air, sea or land to any point in the world. It is
basically a retailer as it conducts business
transactions directly with each individual supplier,
as agents, and with each individual traveler.
 Tour operator- contracts and purchases the
separate travel components and assembles
them into one package, which it sells to the
travelers through the travel agents.
THE TRAVEL AGENTS
 Retailers normally  Wholesaler, deal primarily
transact buisness and with the retailer and only
sell directy to the occasionaly with the travelers
travelers.  Act as a conduit to and middle
 Act as councilor to the men of the supplier
traveler and are agents
 Have variable but limited
to the supplier income and profit margins.
Capitalized on cost savers.
 Have fixed income in  Sell optional tours, excursions
predetermined
and extensions. Make use of
commission schemes. deposit and cancellation fees.
 Are limited to direct  Can but should not by pass
dealing with traveler the retailer and sell directly to
the traveler.
SEGMENTS OF LAND
TRANSPORTATION
 Car Rentals
 Limousine Minor Segments:
- Tricycles
 Bus operators - Pedi cabs
 Motorcoaches - Bicycles
 Jeepneys - Kalesa
 Vans
 Shuttles
 Railways
BICYCLE
-A bicycle, often called a bike and sometimes referred to as a
"pushbike“, "pedal bike","pedal cycle" or "cycle", is a human-
powered, pedal-driven, single-track vehicle, having two
wheels attached to a frame, one behind the other. A person
who rides a bicycle is called a cyclist, or bicyclist.

Bicycles were introduced in the 19th century and now number


more than a billion worldwide, twice as many as
automobiles.They are the principal means of transportation in
many regions. They also provide a popular form of recreation,
and have been adapted for such uses as children's toys, adult
fitness, military and police applications, courier services and
bicycle racing.
CARS
- An automobile, autocar, motor car or car is a
wheeled motor vehicle used for transporting
passengers, which also carries its own engine or
motor. Most definitions of the term specify that
automobiles are designed to run primarily on
roads, to have seating for one to eight people, to
typically have four wheels, and to be constructed
principally for the transport of people rather than
goods.
Karl Benz
-the inventor of the modern automobile.

A photograph of the original Benz Patent-


Motorwagen, first built in 1885 and
awarded the patent for the concept
BUS OPERATIONS
- A bus archaically also big car, omnibus, multibus, or
autobus is a road vehicle designed to carry passengers.
Buses can have a capacity as high as 300
passengers.The most common type of bus is the single-
decker rigid bus, with larger loads carried by double-
decker buses and articulated buses, and smaller loads
carried by midibuses and minibuses; coaches are used
for longer distance services. Buses may be used for
scheduled bus transport, scheduled coach transport,
school transport, private hire, tourism; promotional
buses may be used for political campaigns and others
are privately operated for a wide range of purposes.
 Parisian Omnibus, Parisian Omnibus, late
nineteenth century
Limouines
- A limousine (or limo) originally meant an
"enclosed automobile with open driver's seat," and
was named from the French limousine (in the
Occitan language) that was originally an adjective
referring to a region in central France. The
automobile meaning evolving from a type of cloak
and hood that was worn by the inhabitants of the
Limousin region that later resembled the covering
of a carriage and much later used to describe an
automobile body with a permanent top that
extended over the open driver's compartment.
 The first automobile limousine, built in
1902, was designed so the driver sat
outside under a covered compartment.
 The first “stretch limousine” was created
in Fort Smith, Arkansas around 1928 by a
coach company named Armbruster.
 In 1916, the Society of Automobile
Engineers defined a limousine as: "a
closed car seating three to five inside,
with driver's seat outside."
Tricycles
Carriage/ Kalesa
 A carriage is a wheeled vehicle for
people, usually horse-drawn; litters and
sedan chairs are excluded, since they are
wheelless vehicles.
 The carriage is especially designed for
private passenger use and for comfort or
elegance, though some are also used to
transport goods
RAIL TRAVEL
 Can be efficient, romantic and inexpensive.
 Rail transport is a means of conveyance of
passengers and goods by way of wheeled
vehicles running on rail tracks. In contrast to
road transport, where vehicles merely run on a
prepared surface, rail vehicles are also
directionally guided by the tracks on which they
run. Track usually consists of steel rails installed
on sleepers/ties and ballast, on which the rolling
stock, usually fitted with metal wheels, moves.
Kinds of Passenger Rail Travel
1. Transportation Rail
2. High speed trains- “Bullet trains represent a
subdivision of the transportation category
provided such a different kind of service that they
merit their own sections. Bullet trains travel well
over 100 miles per hour and often represents the
fastest way to get from place to place. Ex.
Amtrak’s Acela in U.S Northeast
Shinkansen from Japan, TGV in France
TGV IN FRANCE
Transportation
AMTRAK’S
SHINKANSEN Rail
ACELA
JAPAN
3. Specialty Trains- Usually private owned rather
than public run, these trains are attraction unto
themselves. In some cases they offer super-
deluxe experiences, perhaps the most famous of
these are Europe’s Legendary Orient Express
and Africa’s Blue Train.
4. Local Rail- Subways, street cars, monorails
and more- these forms of public transportation
provide a vital service to the world’s great cities
Africa’s Blue Train

Europes Legendary
Orient Express
FACTORS THAT MOTIVATE PEOPLE TO TRAVEL BY RAIL

 To save time- Rail travel represents the fastest


way to get from place to place, especially when
high- speed trains are involved. This is the
most true for trips of 200 to 500 miles
 To experience the Environment- specialty
trains and local transportation rail lines enable
passengers to have an upclose, often leisurely,
and personal experience of the ever- changing
landscape.
 To travel in comfort- intercity and croos-
country trains often have wider seats and a
much better pitch between seats than do
aircraft. The ride is quite and smooth. Moreover
passengers can get up and walk around
something that is hard to do on a plane and
impossible to do on a car or on a bus.
 To meet people- rail travel easily lends itself to
socializing, usually in a trains dining or lounge
car
 To save money- its quite economical to travel
by train, first class seats on trains are almost
less expensive than those on planes.
 To travel back in time- many specialty trains
enable you to experience what was the
dominant form of travel in the 19th and 20th
centuries.
 Travel within the continental Europe and North
America can also be affected by surface
transportation such as motorcoach or by
railroad.
 In the US the “GREY Hound” bus company
offers the most extensive bus network in the
country. In the Europe the ”Eurail Passes” are
very popular and economical way of traveling
within the continent.
 Travel within the US by rail is possible through
the AMTRAK trains connecting through
Thruway service buses which connect over 500
destinations with a variety of amenities tailored
to each route.
 Transportation- a service by which service and
goods are move from one place to another.
 Transfer service- activities involve in picking up
the guests from the gateway or arrival point
and delivering them to the place of lodging and
vice- versa.
 Land arrangement- a tour package
classification that comprises transfers,
sightseeing tours and accomodations, specified
meals at a destination.
REASONS FOR RENTING A CAR

1. To get around easily- the flexible


transportation that a car provides is perhaps its
greatest strength. You can drive directly to your
hotel or motel.
- Take unplanned side trips, and stop wherever
or whenever you like, all while carrying your
luggage with you in the trunk
- Trains, taxis and buses rarely permit that
kind of freedom
2. To best navigate/ Experience a place
-some destinations with extensive highways
systems are ideal for the auto travel. That’s what
mos locals favor to get from place to place.
3. To save money- if three or mo four people travel
in a ca, it usually cost less, when you figure the
cost of the rental on a per person basis, than if
they where traveling by train or plain.
4. To do business- Business travellers represent an
important and highly profitable segment of car
rentals, and their reasons aren’t always purely
practical. Ex. They rent a car to impress their
clients.
5. To replace your own car- did an accident put
your car out of action?
6. To try out a car you’re thinking of buying
- a surprising number of auto renters have this
secondary motive in mind when they rent a
vehicle for other purposes.
7. Because you prefer driving vacations
- many people especially those who
genuinely like to drive fell more comfortable
with a car rental experience than any other
transportation made once they arrive at their
vacation destination.
 Car rentals aren’t always the best option.
Downside:
-Driving especially over a long distances can
be tiring.
-Unfamiliar roads, scarcity of parking, the
cost of tolls andgasoline, heavy traffic, foreign
language signs in other countries and similar
factors can sometimes tip the scale in favor of
alternative transportation.
THE BUSINESS OF CAR RENTALS
-car rental location. Corporate- owned or a
franchise
-Competition is fierce, profit margins are of the
razor- thin and many factors have an impact on the
business.
-If fuel prices rise, large cars can suddenly go out
of favor.
The car rental industry relies heavily on its
relationship with other suppliers. Some aggresively
court travel managers. Car rental desks are
sometimes located at large hotels.
 The relationship between car rental firms and air
carrier are especially strong.
 As with any large business, the car rentals
business has many job titles/ opportunities.
1. Rental sales agents- work the car rental desks at
airports or at the car lots.
2. Service agents- prepare and clean the cars.
3. Shuttle drivers- transfer customers to and from
the airport.
4. Mechanics- see to it that the cars are kept on tip-
top shape
5. Reservationists- work at the car rentals call center
6. Managers- work at all levels and departments.
Even more than the hospitality industry, the car
rentals business offers rapid promotion.
CAR RENTAL BRANDS
 HERTZ -Because rental car
fleets are relatively
 AVIS alike, each auto
 BUDGET rental company
 NATIONAL does all it can to
 ALAMO achieve distinct
 THRIFTY image or position in
 DOLLAR the market place.
 ENTERPRISE
What Car Rental Cost:
1. Subcompact/  Premium
Economy  Luxury
2. Compact  Specialty
3. Midsize/ -Convertibles
Intermediaries -Minivans
4. Full size or -Jeeps
-Trucks
Standard
TERMINOLOGIES
 Lot- The place where cars are kept
 Inventory- The number of cars
available
 Fleet- makes and models of cars
offered by the entire company
 Additional and extra cost features-
options and amenities.
OTHER FACTORS TO DETERMINE
WHAT YOU PAY FOR A CAR RENTAL

 What the rental basis is?


 How many days are involved?
 What insurance you take if any?
 Wether you take the fuel option?
 On which day you drive?
 Where you rent?
 During which season you rent?
 How Many cars are available?
 If there is an additional driver?
 How the car is booked?
 What about taxes?
 Which coupons are used?
 If the renter request special amenities
 Which Comapany?
 Is there a drop of charge?
 When the Car is booked?
“Drive carefully! Remember,
it's not only a car that can
be recalled by it's maker.”

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