CLASSIFICATION OF

TRAVELERS
THC 3
 CLASSIFICATION OF TRAVELERS BASED ON PERSONALITY

• PSYCHOCENTRIC- PEOPLE CENTERED ON SELF ARE INHIBITED AND

UNADVENTURESOME. WHEN TRAVELLING, THEY PREFER TO VISIT “SAFE”
DESTINATIONS. THEY DO NOT WANT TO EXPERIMENT ON THE ACCOMMODATION, FOOD
AND ENTERTAINMENT.
• ALLOCENTRIC- PEOPLE HAVING INTEREST ON OTHER PERSON ARE HIGHLY CURIOUS
AND THRIVE ON STIMULATION AND CHANGE. THEY HAVE A STRONG NEED FOR VARIETY
AND NEW EXPERIENCE.
• MIDCENTRICS- PEOPLE WHO RESIDES IN THE MIDDLE. THEY PREFER GOING TO A SAFE
PLACE BUT STILL HESITATE TO EXPERIENCE NEW THINGS.
 CLASSIFICATION OF TRAVELERS BASED ON THE
PURPOSE OF TRAVEL
• THE TWO CLASSIFICATIONS OF TRAVELERS BASED ON TRAVEL PURPOSE ARE THE
BUSINESS TRAVELLERS AND THE PLEASURE/PERSONAL TRAVELERS
• A.BUSINESS TRAVELERS
• 1.REGULAR BUSINESS TRAVELERS
• 2.INCENTIVE TRAVELERS

• REGULAR BUSINESS TRAVELERS

• AMONG BUSINESS TRAVELERS, THE COST OF THE TRIP IS SHOULDERED BY A
COMPANY; HENCE, TRAVEL IS NOT INFLUENCED BY PERSONAL INCOME. THE VOLUME
AND RATE OF GROWTH OF BUSINESS TRAVEL IS NOT GREATLY AFFECTED BY THE COST
OF TRAVEL. THIS MEANS THAT BUSINESS TRAVELERS WILL CONTINUE EVEN IF THE PRICE
OF TRAVEL SERVICES INCREASES.
 CLASSIFICATION OF TRAVELERS BASED ON THE
PURPOSE OF TRAVEL

• MANY STUDIES HAVE BEEN CONDUCTED TO FIND OUT THE CHARACTERISTICS OF REGULAR BUSINESS
TRAVELERS. THE RESULTS OF THESE SURVEYS REVEALED THATBUSINESS TRAVELERS ARE WELL-EDUCATED, RICH,
HAVE HIGH LEVEL JOBS, AND TEND TO FLY OFTEN. MORE RECENT SURVEYS HAVE SHOWN THAT RATIO OF
WOMEN BUSINESS TRAVELERS TO MEN TRAVELERS HAVE GROWN RAPIDLY. THESE SURVEYS SHOW THAT
THERE ARE MAJOR DIFFERENCES BETWEENMALE AND FEMALE BUSINESS TRAVELERS. SOME OF THESEARE:
• 1.WOMEN BUSINESS TRAVELERS ARE SLIGHTLY YOUNGER
• 2.THEY TEND TO STAY LONGER AT THEIR DESTINATIONS
• 3.THEY ARE MORE APT TO BE UNMARRIED THAN MALES;
• 4.THEY ARE MORE LIKELY TO ATTEND A MEETING OR CONVENTION
• 5.THEY ARE MORE LIKELY TO BOOK THROUGH A TRAVEL AGENT;
• 6.THEY HAVE A GREATER PREFERENCE FOR DOWNTOWN ACCOMMODATION FACILITIES CLOSER TO WORK; AND
• 7.THEY ARE MORE CONCERNED WITH SECURITY ASPECTS OF ACCOMMODATION FACILITIES.
• BUSINESS TRAVELERS ATTENDING MEETINGS, CONVENTIONS, CONGRESS TRAVEL PULSE SURVEYS INDICATE THAT
20%OF ALL BUSINESS TRAVEL TRIPS ARE FOR THE PURPOSE OF ATTENDING MEETINGS, CONVENTIONS, AND
CONGRESSES.
 INCENTIVE TRAVELERS

• INCENTIVE TRAVEL IS A SPECIAL TYPE OF BUSINESS TRAVEL. IT IS TRAVEL GIVEN BY FIRMS TO

EMPLOYEES AS A REWARD FOR SOME ACCOMPLISHMENT OR TO ENCOURAGE EMPLOYEES TO
ACHIEVE MORE THAN WHAT IS REQUIRED. INCENTIVE TRIPS HAVE RISEN SHARPLY ACCORDING
TO THE SOCIETY OF INCENTIVE TRAVEL EXECUTIVE (SITE). SALESPEOPLE ARE GIVEN TRIPS FOR
REACHING A SET GOAL IN OVERALL SALES OF A PARTICULAR ITEM OR IN THE NUMBER OF NEW
ACCOUNTS. EXPERTS SAY THAT THESE INCENTIVE TRIPS LAST FOR FIVE DAYS AND USUALLY
INCLUDE SPOUSES. PRIZE TRIPS ARE OFTEN COMBINED WITH BUSINESS AND SALES
MEETINGS, ESPECIALLY THOSE TO FOREIGN DESTINATIONS IN ORDER TO BE ELIGIBLE FOR TAX
DEDUCTION.
• THE INCREASING POPULARITY OF INCENTIVE TRAVEL HAD LED TO THE ESTABLISHMENT OF
INCENTIVE TRAVEL ORGANIZATIONS. THEY NEGOTIATE WITH SUPPLIERS SUCH AS HOTELS, AND
AIRLINES TO DETERMINETHE COST OF INCENTIVE TRAVEL TRIPS. THUS, THEY ACT AS SPECIALIZED
TYPES OF TOUR WHOLESALERS. TO THEIR PRICES, THEY ADD A MARK-UPOF SPECIALIZED TYPES
OF TOUR WHOLESALERS. TOTHEIR PRICES, THEY ADD A MARK-UP OF 15% TO 20% FOR THEIR
SERVICES AND COSTS IN PACKAGING THE INCENTIVE TRAVEL TRIP.
PLEASURE/PERSONAL TRAVELERS
• THIS GROUP CONSISTS OF PEOPLE TRAVELLING FOR VACATION OR PLEASURE. THEY ARE ALSO
CALLED NONBUSINESS TRAVELERS. EXPERIENCES AND RESEARCH HAVE SHOWN THAT NONBUSINESS
TRAVELERS HAVE DIFFERENT SPENDING PATTERNS FROM BUSINESS TRAVELERS. IN GENERAL, THE
DEMAND FOR TRAVEL SERVICES BY NONBUSINESS TRAVELERS IS ELASTIC WITH RESPECT TO
PRICES.THIS MEANS THAT THE NONBUSINESS TRAVELERS ARE VERY MUCH CONCERNED WITH THE
INCREASE IN THE PRICE OF TRAVEL SERVICES SINCE THE COST OF TRAVEL IS USUALLY SHOULDERED
BY THE TRAVELLER HIMSELF. THE TRAVELLER LIKEWISE CHOOSES THE VACATION AREA.
• TRAVELING FOR PLEASURE IS THE LARGEST SEGMENT OF THE INTERNATIONAL MARKET AND THE
FASTEST GROWING. THE REASONS FOR THE GROWTH ARE THE RISING OF INCOME LEVELS IN
DEVELOPED COUNTRIES, URBANIZATION, HIGHER EDUCATIONAL LEVELS, INCREASE IN LEISURE TIME,
AND THE LENGTH OF PAID HOLIDAYS.
• 1.RESORT TRAVELERS;
• 2.FAMILY PLEASURE TRAVELERS;
• 3.THE ELDERLY; AND
• 4.SINGLES AND COUPLES.
• 5.RESORT TRAVELERS;
RESORT TRAVELERS

• SURVEYS HAVE SHOWN THE RESORT TRAVELERS ARE BETTER EDUCATED,

HAVE HIGHER HOUSEHOLD INCOMES, AND ARE MORE LIKELY TO HAVE
PROFESSIONAL AND MANAGERIAL POSITIONS. IT IS ALSO NOTABLE THAT
MAJORITY OF RESORT TRAVELERS HAVE FAMILIES WITH CHILDREN.
FAMILY PLEASURE TRAVELERS

• THE FAMILY PLEASURE TRAVELERS CAN BE DIVIDED INTO THREE GROUPS, NAMELY: JUNIOR
FAMILIES, MIDRANGEFAMILIES, AND MATURE FAMILIES. THESE ARE DEFINED ACCORDING TO
THE AGES OF THE HUSBAND AND WIFE AND THE EDUCATIONAL STAGES OF THEIR CHILDREN AS
FOLLOWS:
• 1.JUNIOR FAMILIES-WITH PARENTS AGED 20-34 HAVING PRESCHOOL AND/OR GRADE SCHOOL
CHILDREN ONLY;
• 2.MIDRANGE FAMILIES- WITH PARENTS AGED 35-44 WITH GRADE SCHOOL AND/OR HIGH
SCHOOL CHILDREN ONLY; AND
• 3.MATURE FAMILIES- WITH PARENTS AGED 45 OR OVER WITH CHILDREN WHO ARE OF HIGH SCHOOL
AGE AND OLDER.
• FAMILY PLEASURE TRAVEL TRIPS ARE MOTIVATED BY THREE OBJECTIVES. THE FIRST
OBJECTIVE IS TO USE RAVEL AS AN EDUCATIONAL EXPERIENCE FOR THEIR CHILDREN. THE
SECOND OBJECTIVE IS TO DO SOMETHING DIFFERENT. THE THIRD OBJECTIVE IS TO USE TRAVEL
TO BRING FAMILY CLOSER TOGETHER. THE MAJOR HINDRANCES TO FAMILY PLEASURE
TRAVEL ARE THE COST OF TRAVEL, PARTICULARLY THE COST OF TRANSPORTATION,
ACCOMMODATION, FOOD, THE ABILITY OF THE PARENTS TO HAVE PRIVACY FROM THEIR
CHILDREN, AND THE PROBLEMS OF ORGANIZING AND COORDINATING FAMILY PLEASURE PLANS.
 THE ELDERLY

• AN EXAMINATION OF POPULATION TRENDS IN DEVELOPED COUNTRIES

PARTICULARLY IN NORTH AMERICA CLEARLY INDICATES THAT THE POPULATION IS
AGING. AT PRESENT, THERE ARE MANY PEOPLE WHO ARE FIFTY YEARS OF AGEAND
OVER, INCLUDING A GREATER NUMBER OF PEOPLE IN THE RETIREMENT AGE
CATEGORY. THESE POPULATION SHIFTS HAVE MADE THE ELDERLY PERSONS A
LUCRATIVE TARGET FOR TOURISM DESTINATION AREAS. PERSONS IN THE “50 PLUS” AGE
BRACKET ARE CALLED ACTIVE AFFLUENTS OR PEOPLE WITH THE MONEY AND THE
DESIRE TO TRAVEL EXTENSIVELY. ACTIVE AFFLUENTS GENERALLY SEARCH FOR
LEARNING EXPERIENCES, CULTURAL ENRICHMENT, SOCIALIZATION, AND ACTIVITIES
WHICH LED TO SELF-FULFILLMENT.
SINGLES AND COUPLES

• ANOTHER IMPORTANT SEGMENT OF PLEASURE TRAVEL CONSISTS OF

SINGLES AND COUPLES. THEY TAKE THEIR VACATIONS TO FULFIL THEIR
PSYCHOLOGICAL, INTELLECTUAL, AND PHYSICAL NEEDS BY GIVING
THEM THE OPPORTUNITY TO REST, RELAX, ESCAPE THE ROUTINE OF
PRESSURES OF DAILY LIVING, ENJOY THE NATURALNESS OF LIFE, AND TO
EXPRESS TOTAL FREEDOM. A RESORT CHAIN THAT TARGETS SINGLES AND
COUPLE IS THE CLUB MEDITTERANEE. CLUB MED IS NOT ONLY
ORGANIZATION WHICH TAPS THE SINGLES AND COUPLES PLEASURE
TRAVEL SEGMENT; OTHER RESORTS AND DESTINATIONS PARTICULARLY IN
THE CARIBBEAN REGION HAVE ALSO TARGETED THIS MARKET SEGMENT.
 THE ECONOMICS OF TOURISM AND HOSPITALITY

• TOURISM’S ECONOMIC IMPACTS ARE TOUTED BY THE INDUSTRY FOR A VARIETY OF REASONS.
CLAIMS OF TOURISM’S ECONOMIC SIGNIFICANCE GIVE THE INDUSTRY GREATER RESPECT AMONG
THE BUSINESS COMMUNITY, PUBLIC OFFICIALS, AND THE PUBLIC IN GENERAL. THIS OFTEN
TRANSLATES INTO DECISIONS THAT ARE FAVORABLE TO TOURISM AND HOSPITALITY INDUSTRY.
COMMUNITY SUPPORT IS IMPORTANT FOR TOURISM AND HOSPITALITY, AS IT IS AN ACTIVITY THAT
AFFECTS THE ENTIRE COMMUNITY. TOURISM AND HOSPITALITY BUSINESSES DEPEND EXTENSIVELY
ON EACH OTHER AS WELL AS ON OTHER BUSINESSES, GOVERNMENT AND RESIDENTS OF THE LOCAL
COMMUNITY. ECONOMIC BENEFITS AND COSTS OF TOURISM AND HOSPITALITY REACH VIRTUALLY
EVERYONE IN THE REGION IN ONE WAY OR ANOTHER. ECONOMIC IMPACT ANALYSES PROVIDE
TANGIBLE ESTIMATES OF THESE ECONOMIC INTERDEPENDENCIES AND A BETTER UNDERSTANDING
OF THE ROLE AND IMPORTANCE OF TOURISM IN A REGION’S ECONOMY.
• ECONOMIC IMPACTS ARE THEREFORE AN IMPORTANT CONSIDERATION IN STATE, REGIONAL AND
COMMUNITY PLANNING AND ECONOMIC DEVELOPMENT. ECONOMIC IMPACTS ARE ALSO
IMPORTANT FACTORS IN MARKETING AND MANAGEMENT DECISIONS. COMMUNITIES THEREFORE
NEED TO UNDERSTAND THE RELATIVE IMPORTANCE OF TOURISM TO THEIR REGION, INCLUDING
TOURISM AND HOSPITALITY’S CONTRIBUTION TO ECONOMIC ACTIVITY IN THE AREA.
 THE ROLE OF TOURISM AND HOSPITALITY IN ECONOMIC
DEVELOPMENT

• SEVERAL DEVELOPING COUNTRIES HAVE USED TOURISM AND HOSPITALITY

DEVELOPMENT AS AN ALTERNATIVE TO HELP ECONOMIC GROWTH. THE REASONS FOR THIS
ARE: FIRST, THERE IS A CONTINUOUS DEMAND FOR INTERNATIONAL TRAVEL IN
DEVELOPED COUNTRIES; SECOND, AS INCOME IN DEVELOPED COUNTRIES INCREASES, THE
DEMAND FOR TOURISM AND HOSPITALITY ALSO INCREASES AT A FASTER RATE; AND THIRD,
DEVELOPING COUNTRIES NEED FOREIGN EXCHANGE TO AID THEIR ECONOMIC
DEVELOPMENT.
• THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT (OECD) HAS
CONCLUDED THAT TOURIST AND HOSPITALITY PROVIDES A MAJOR OPPORTUNITY FOR
GROWTH TO COUNTRIES THAT ARE AT THE INTERMEDIATE STAGE OF ECONOMIC
DEVELOPMENT AND REQUIRE MORE FOREIGN EXCHANGE EARNINGS.
• TOURISM AND HOSPITALITY IS AN INVISIBLE EXPORT WHICH DIFFERS FROM
INTERNATIONAL TRADE IN MANY WAYS.
THE ROLE OF TOURISM AND HOSPITALITY IN ECONOMIC
DEVELOPMENT
• 1.IN TOURISM AND HOSPITALITY, THE CONSUMER COLLECTS THE PRODUCT FROM THE EXPORTING COUNTRY,
THEREBY ELIMINATING THE FREIGHT COSTS FOR THE EXPORTER EXCEPT IN CASES IN WHICH THE AIRLINE USED
ARE THOSE OF THE TOURIST-RECEIVING COUNTRY.
• 2.THE DEMAND FOR PLEASURE TRAVEL IS LARGELY DEPENDENT ON NON-ECONOMIC FACTORS, SUCH AS LOCAL
DISTURBANCES, POLITICAL UNREST, AND CHANGES IN THE FASHION ABILITY OF RESORTS/COUNTRIES CREATED
MOSTLY BY MEDIA COVERAGE. AT THE SAME TIME, INTERNATIONAL TOURISM AND HOSPITALITY IS BOTH PRICE
ELASTIC AND INCOME ELASTIC. THIS MEANS THAT CHANGES IN PRICE AND INCOME WILL ALSO CHANGE THE
DEMAND FOR PLEASURE TRAVEL.
• 3.BY USING SPECIFIC FISCAL MEASURES, THE EXPORTING OR TOURIST-RECEIVING COUNTRY CAN MANIPULATE
EXCHANGE RATES SO THAT THOSE FOR TOURISTS ARE HIGHER OR LOWER (NORMALLY THE LATTER IS
IMPLEMENTED IN ORDER TO ATTRACT LARGE NUMBERS OF TOURISTS) THAN THOSE IN OTHER FOREIGN TRADE
MARKETS. ALSO, TOURISTS ARE ALLOWED TO BUY IN DOMESTIC MARKETS AT THE SAME PRICES AS THE LOCAL
RESIDENTS(THE EXCEPTIONS ARE THE DUTY-FREE TOURIST SHOPS OPERATED IN MANY CARIBBEAN ISLANDS
AND ELSEWHERE).
• 4.TOURISM AND HOSPITALITY IS A MULTIFACETED INDUSTRY THAT DIRECTLY AFFECTS SEVERAL SECTORS IN THE
ECONOMY, SUCH AS HOTELS, SHOPS, RESTAURANTS, LOCAL TRANSPORT FIRMS, ENTERTAINMENT
ESTABLISHMENTS, HANDICRAFT PRODUCERS, AND INDIRECTLY AFFECTS MANY OTHERS, SUCH AS EQUIPMENT
MANUFACTURERS AND UTILITIES.
• 5.TOURISM AND HOSPITALITY BRINGS MANY MORE NON-MONETARY BENEFITS AND COSTS THAN OTHER EXPORT
INDUSTRIES, SUCH AS SOCIAL, CULTURAL, AND ENVIRONMENTAL BENEFITS AND COSTS.
ECONOMIC IMPACT

• WHEN TRAVELERS OUTSIDE THE DESTINATION AREA SPEND ON GOODS AND SERVICES
WITHIN THE DESTINATION, TOURISM AND HOSPITALITY ACTS AS AN EXPORT INDUSTRY
BY BRINGING IN REVENUES FROM OUTSIDE SOURCES. TOURIST EXPENDITURES ALSO
INCREASE THE LEVEL OF ECONOMIC ACTIVITY IN THE HOST AREA DIRECTLY. MANY
COUNTRIES HAVE UTILIZED TOURISM AND HOSPITALITY AS A MEANS TO INCREASE
FOREIGN EXCHANGE EARNINGS TO PRODUCE INVESTMENT NECESSARY TO FINANCE
ECONOMIC GROWTH.THE TOURISM AND HOSPITALITY INDUSTRY’S ECONOMIC IMPACT
ON A DESTINATION AREA CAN BE IMMENSE SINCE IT PROVIDES A SOURCE OF INCOME,
EMPLOYMENT, AND FOREIGN EXCHANGE.
DIRECT AND SECONDARY EFFECTS

• IN ORDER TO MEASURE THE ECONOMIC IMPACT OF TOURISM AND HOSPITALITY ON THE

DESTINATION AREA, IT IS IMPORTANT TO KNOW THE DIRECT AND SECONDARY
EFFECTSOF VISITOR EXPENDITURES ON THE ECONOMY OF THE AREA.TOURIST
EXPENDITURES RECEIVED AS INCOME BY BUSINESSES SUCH AS HOTELS, RESTAURANTS,
CAR RENTALS, TOUR OPERATORS, AND RETAIL SHOPS SERVING TOURISTS HAVE A
DIRECT EFFECT ON THE ECONOMY OF THE HOST AREA. THE TERM “DIRECT” MEANS
THAT THE INCOME IS RECEIVED DIRECTLY. INDIRECT OR SECONDARY EFFECTS MEAN
THAT THE MONEY PAID BY TOURISTS TO BUSINESSES ARE, IN TURN, USED TO PAY FOR
SUPPLIES, WAGES OF WORKERS, AND OTHER ITEMS USED IN PRODUCING THE PRODUCTS
OR DIRECT SERVICES BOUGHT BY TOURISTS.
• TOURISM MULTIPLIER
THE TERM “MULTIPLIER” IS USED TO DESCRIBE THE TOTAL EFFECT, BOTH DIRECT
ANDSECONDARY, OF AN EXTERNAL SOURCE OF INCOME INTRODUCED INTO THE
ECONOMY. THE TOURISM MULTIPLIER OR MULTIPLIER EFFECT IS USED TO ESTIMATE THE
DIRECT AND SECONDARY EFFECTS OF TOURIST EXPENDITURES ON THE ECONOMY OF A
COUNTRY.
• A TOURIST MAKES AN INITIAL EXPENDITURE INTO THE DESTINATION. THIS
EXPENDITURE IS RECEIVED AS INCOME BY LOCAL TOUR OPERATORS, HANDICRAFTS
STORE OWNERS, HOTELIERS, AND TAXI DRIVERS. IN THE FIRST ROUND OF
TRANSACTIONS, A HOTELIER MAY USE SOME OF THE MONEY RECEIVED TO BUY SOME
SUPPLIES, PAY SOME WAGES, AND RETAIN SOME PROFITS. THE INCOME IN THE SECOND
ROUND MAY BE SPENT OR SAVED, WHILE THE EMPLOYEE WHO HAS RECEIVED PAYMENT
FOR SERVICES RENDERED MAY SPEND SOME OF IT ON RENT AND SOME ON FOOD, AND
MAY PUT SOME INTO SAVINGS. THE MONEY SPENT ON SUPPLIES IN THE THIRD ROUND
OF SPENDING GOES FOR SUCH THINGS AS SEED, FERTILIZERS, AND IMPORTED RAW
MATERIALS. ANY INCOME SPENT ON IMPORTS HAS LEAKED OUT OF THE LOCAL
ECONOMY. THIS PROCESS CONTINUES UNTIL THE ADDITIONAL INCOME GENERATED BY
A NEW ROUND OF SPENDING ESSENTIALLY BECOMES ZERO. LEAKAGE IS THE VALUE OF
GOODS AND SERVICES THAT MUST BE IMPORTED TO SERVICE THE NEEDS OF TOURISM
AND HOSPITALITY. TO ESTIMATE THE TOTAL ECONOMIC IMPACT ON AN AREA, IMPORTS
THE POSITIVE AND NEGATIVE IMPACTS OF
TOURISM AND HOSPITALITY
FINAL PROJECT

• MINI RESEARCH: THE ECONOMIC IMPACT OF TOURISM AND HOSPITALITY IN

THE PHILIPPINE ECONOMY.

• TO BE PASSED ON JANUARY 20, 2022