Tourism & Travel Bussiness

SEKOLAH TINGGI PARIWISATA TRISAKTI

Session 8
Business tourism is concerned with
people travelling for purposes which
are related to their work.
As such it represents one of the
oldest forms of tourism, man having
travelled for this purpose of trade
since very early times.
(Davidson, 1994)
Bisnis Pariwisata berkaitan dengan orang-orang
yang bepergian untuk tujuan yang berhubungan
dengan pekerjaan mereka.
Karena itu merupakan salah satu bentuk pariwisata
tertua, manusia telah melakukan perjalanan untuk
tujuan perdagangan ini sejak dulu
What is business travel and tourism?
Business Tourism
Istilah 'perjalanan bisnis' dan 'pariwisata bisnis' sering
digunakan hampir secara bergantian ada perbedaan kualitatif
di antara mereka.

Bisnis pariwisata adalah istilah yang lebih luas yang

mencakup semua aspek pengalaman dari pelancong bisnis.
Selanjutnya, menggunakan interpretasi standar dari istilah
'pariwisata' atau 'turis' istilah ini tampaknya berfokus pada
orang-orang bisnis yang memang benar benar wisatawan,
dengan kata lain, mereka yang tinggal jauh dari rumah
setidaknya selama satu malam
A typology of business travel and tourism The
broad definition of business travel and tourism is
simple but it embraces a variety of different forms
of business travel and tourism

An individual general business trip could

involve:
• a salesperson trying to sell his or her
company’s food product to a new
customer a computer consultant visiting
• a client to sort out the client’s problem
• the senior manager of a major
multinational corporation visiting
• a branch factory a business person
visiting a government department to
apply for an export licence.
It is clear, therefore, that business travel
and tourism is a diverse, complex field.

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Meetings, conferences and conventions

According to Davidson
A meeting is: an organised event which brings people
together to discuss a topic of shared interest. [It may] be
commercial or non-commercial . . . may be attended by 6, or
many hundreds . . . it may last from a few hours to a week . . .
[What makes] a meeting qualify as part of business tourism is
that it engages some of the services of the tourism industry,
and (is usually) held away from the premises of the
organisation running it. (Davidson, 1994)

The terms used to describe meetings tend to vary depending

on the size of the event and where it is held. A small gathering
is a meeting but a large meeting is usually called a
conference in the UK, a convention in the USA and a congress
in much of mainland Europe
 Exhibitions

Davidson defines exhibitions as:

presentations of products or services to an
invited audience with the object of inducing a
sale or informing the visitor . . . Exhibitions are
considered part of the business tourism
industry because they stimulate travel (for
both exhibitors and visitors). [They also]
create a high level of demand for travel
services, catering, and accommodation.
(Davidson, 1994)

Exhibitions may also be called trade fairs or

expositions in different parts of the world
 Product launches

These are the high-profile special events

which many organizations now use to
attract publicity for new products and
services they are launching. They usually
have a range of audiences including the
media, retailers and consumers. They
often take place over a short time period
– as little as a few minutes – but often
involve a very large budget.
 Incentive travel

The key professional body, the Society of Incentive

Travel Executives (SITE) defines this form of
business tourism as follows

Incentive Travel is a global management tool

that uses an exceptional travel experience to
motivate and/or recognize participants for
increased levels of performance in support of
the organizational goals. (SITE, 1998)

☺ The italic words are those identified by SITE as being

elements of the definition. Interestingly, incentive travel uses
leisure tourism as a reward for good performance at work. It
therefore bridges the divide between leisure tourism and
business tourism. We will return to this distinction between
the two types of tourism later in the chapter.
 Training courses

These are events where participants gather together

at a specific time and place to receive information or
to be helped to develop their skills. These can be
‘internal’ training courses where all the participants
are employed by a single organization, or ‘open’
events where the training organization offers a
programme which is available to all those who feel it
might benefit them.
The structure of business travel and tourism

Model the structure of the types of business travel and tourism

which are the core concern of this book. Of course, the reality
is much more complex than this simple diagram suggests. For
example, transport operators include: air, rail, ferry, cruise liner,
taxi, bus, coach and rail operators transport operators offering
transport to the destination transport operators operating
transport networks within the destination. It is also clear that
there is a high degree of interdependency between the various
players involved in business travel and tourism.
For example, incentive travel agencies rely on the services of
airlines, entertainment providers, hotels, restaurants and visitor
attractions so that they can meet the needs of their clients
 The scale of business travel and tourism

By anyone’s standards, work-related travel and tourism is big business. A few figures will serve to illustrate the global scale of business travel
and tourism:
1. The WorldWide Guide to Conference and Incentive Travel Facilities, 1999–2000 guide listed more than 6000 major venues worldwide. This
was a clear underestimate as this guide focuses disproportionately on the UK.
2. It is estimated that in the late 1990s, business tourism contributed around £12 billion to the UK economy alone (Rogers, 1998).
3. In the mid-1990s, the German conference market amounted to DM43 billion (approximately £16 billion) at 1996 prices. This represented
more than 1 per cent of the German gross national product (German Convention Bureaux, 1996).
4. Deloitte and Touche estimated that in 1996 the meetings, convention, exhibition and incentive travel market in the USA was worth around
$83 billion (around £55 billion) at 1996 prices (Rogers, 1998).
5. A survey of international convention delegates in Australia in 1996 found that they spent an average of over £2000 each on their visit to the
city (Sydney Convention and Visitors Bureau, 1997).
6. A single political party conference in the UK injects over £10 million to the destination economy over a period of just three or four days
(Rogers, 1998).
7. The global incentive travel market is already worth more than $20 billion even though it is a relatively recent development (SITE, 1998).
8. The average cost of running an association conference in the USA was $130 000 (£85 000 approximately) in 1997–8, while convention
and exhibition delegates spent an average of $696 (around £460) attending events which involved a three-night stay in 1997–8
(International Association of Convention and Visitor Bureaux, 1998).
9. The 1998 Association of British Travel Agents Conference in Marbella cost a total of £1.5 million to organize (Conference and Incentive
Travel, 1998).
10. Over a seven-day period the launch of the Peugeot 206 car in Birmingham, UK, cost the company £1.6 million (Conference and Incentive
Travel, 1998).
11. In France, towards the end of the 1990s, 750 million francs were spent expanding the Palais de Congres in Paris ( ´ Conference and
Incentive Travel, 1998). 12 Over 7300 organizations exhibited at the International Confex exhibition which took place in London in March
1999 (Conference and Incentive Travel, 1999). It is clear therefore that business travel and tourism is a major economic phenomenon,
around the world.
 The benefits of business travel and tourism for destinations

Given the expenditure levels of business travellers noted in the previous section, it
is not surprising that many destinations a keen to attract all forms of business
tourism.
There is also a belief that business tourism can lead to increased inward
investment. While there is little empirical evidence to support this idea, the
suggestion is that the business tourist who is an owner of an enterprise visits the
destination as a business tourist, likes what he or she sees and decides to set up a
new business or transfer their existing business to the destination. It is not
surprising therefore that business tourism has been used as a key point of the
strategy of both: industrial cities, seeking to diversify and modernize their
economies, such as Birmingham in the UK traditional coastal resorts which are
keen to extend their season and attract higher spending business tourists, such as
Brighton and Bournemouth in the UK. Of course, business tourism can also bring
problems for destinations in terms of congestion and the attraction of criminals
who see the business tourists as easy, lucrative targets. Serving the demanding
business traveller can also force destinations to make large investments in
infrastructure such as airports and convention centres, with no guarantee these will
repay the investment.
Nevertheless, overall it appears that business tourism is a positive phenomenon, as
far as destinations are concerned.
The relationship between business tourism and leisure tourism

Business tourists also often pay more for the use of the
same hotels at airports as used by the leisure traveller,
because business travellers often need, or at least demand,
better quality services or extra specialist facilities, compared
to the leisure tourist.
However, in terms of the demand side, there are four ways in
which the world of business tourism and leisure tourism
overlap, as follows:
1. The business traveller usually becomes a leisure
traveller once the working day is over.
2. Conferences often include a programme of leisure
activities in between conference sessions for delegates.
3. Incentive travel, as we saw earlier, involves offering
leisure travel as a reward for good performance at work.
4. Many business travellers are accompanied by their
partners and/or children. These accompanying persons
are to all intents and purposes leisure travellers for all or
most of the duration of their trip.
☺ On the other hand, there are real
differences between leisure tourism and
business tourism on the demand side.
Some of these were identified in 1994
by Davidson, and a modified version of
his model is
 Problems of studying business travel and tourism

For those wishing to study this dynamic sector of tourism, there are
two real problems.
֍ First, there is the lack of literature and reliable up-to-date statistics.
Often what data there is has been collected on different bases in
different countries, which makes comparison very difficult.
֎ Second, there is the problem of terminology. There are national and
cultural differences in the terms used within the business tourism
industry.

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Tugas kelompok :
Mencari contoh Tour
Operators, Travel Agency, Tour
Whole Saler and Consolidator,
Destination Management
Companies (DMC).
Terima Kasih