CHAPTER 4:

Transportation Sector
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.
Transportation and Travel Evolution
These are the:
1. The pre-industrial travel system era,
2. The early-industrial travel system era,
3. The mature- railway system era,
4. The express-travel system era,
Transportation and Travel Evolution
These are:
5. The automobile-based travel system era,
6. The modern-tourism travel system era, and 7.
The post-mobility adjustment era.
1. 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.
1. Pre-Industrial Travel System Era
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
2. 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
3. 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.
3. Mature-Railway System Era
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.
4. 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.
5. 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.
6. 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 II occurrence.
6. Modern-Tourism Travel System Era
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.
7. 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.
7. Post-Mobility Adjustment Era
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.
 Historical Development of the Transport
System
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.
 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.
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
factors, namely: functional, aesthetic/emotional,
social/organizational, situational, and curiosity.
The functional utility of a mode is its expected
performance for a specific purpose. Examples
are departure and arrival times, safety record,
the directness of the trip, and the number of
stops or transfers
,Aesthetic/emotional is related to such aspects
as fear, social concerns, style, luxury, comfort,
and other personal feelings that the form of
transportation might evoke.
Social/organizational shows that the frequent users
of certain kinds of transportation are stereotyped
according to sex, racial origin, income, price/cost,
and education. For example, those who take bus
trips are usually perceived to be female, either
young or old, while those who take bus tours and
cruises are generally retired people.
Situational refers to how conveniently
located the particular mode of
transportation and its terminal facilities
are for the traveler.
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.
 Travel by Train
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. With
the advent of the steam locomotive in 1825
until after World War II, travel by train
became the primary means of movement
within the United States.
 During the latter part of the 1800s and the
first part of the 1900s, the train connected
major population centers and popular spas
and resorts such as the Niagara Falls, Long
Beach, Saratoga, New Jersey, and Las Vegas.
 This dependence on the train is shown in
the development of Las Vegas where large
hotels were located downtown, a short
distance from the railroad station. This gave
tourists who arrived by train quick and easy
access to hotels and casinos.
 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. Ten years later, an elaborate meal
could be obtained in all trains.
 The popularity of the train lasted only for a brief
period after World War II when the automobile
began to gain more popularity as a passenger
transportation mode. US railroads carried 77% of the
nation's passenger traffic. By 1950, with the rapid
growth of private automobile ownership and usage,
passenger traffic declined to 46%.
 In an effort to save the railroad industry, the Rail
Passenger Service Act became a law in October 1970.
The act created the National Railroad Passenger
Corporation, now commonly known as Amtrak, which
began its operations in May 1971 and was intended to
be a profit-making corporation. Canada's equivalent of
Amtrak is VIA Rail Canada, which was created in
1977.
 Both Amtrak and VIA Rail have the national
responsibility of providing intercity passenger rail
transportation. Since their establish nonst, both
organizations have been successful in increasing
passenger volumes. They have done so by improving
the equipment and services they offer and by
promoting the benefits of traveling by train more
effectively.
 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.
 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 facile
est sensational rail accomplishment after World War I
was Japan's shinkansen or bullet trains which travel at
speeds greater than 140 miles per hour.
The bullet trains run north and south and link
major metropolitan areas. These began operations
in 1964 in time for the Olympics in Japan. They
make the run of 550 miles in three hours and 10
minutes from the former time of 18 hours.
They provide a ride so smooth that a passenger can
leave a cup of tea or coffee on a windowsill and not
a drop will spill. A computerized control center
feeds information to a lighted board that shows the
location of every train and the conditions of the
track, switches, and wires.
 France has its own supertrain, 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.
 Tres Grande Vitesse
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. However, the introduction of
the jet aircraft led to the rapid decline in the ships
as scheduled passenger transportation mode.
 In the late 1990s, the era of travel by ships
expired. Cruise chips took the place of regularly
scheduled passenger ships. Many passenger ships
were converted into cruise ships. Those that were
too old or too large were junked or scrapped..
 Others that had historical value were converted
into tourist attractions. For example, the Queen
Mary which is permanently docked in Long
Beach, California became a tourist attraction and
a hotel.
 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 Boot.
 Cruises are divided into three types
depending on the duration of the trips. Short
cruises are one week of 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.
 Cruise Ship
In addition, there is no changing of hotels,
airports, and food and beds which may cause
sleeplessness and other problems. Examples of short
cruises are the three-night cruises from Los Angeles
to Mexico and cruises on the St. Lawrence River on
vessels such as the Canadian Empress.
 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.
 Many ships now have fully equipped gyms,
health spas, and an athletic counselor Cruise
directors plan activities and entertainment for the
passengers which may be full-scale musical
productions, live entertainment with well-known
performers, discos, bingo, gambling, courses in
self-improvement, and the like.
 The cruse 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 top ports are Mani New York,
San Juan, Port Everglades, Los
Angeles, San Francisco, Seattle,
and New Orleans
 The Caribbean is the world's largest cruise
destination Cruise passengers for destinations within
the Caribbean comprise 50% of total visitor arrivals.
Other major cruise destinations include the
Mediterranean, Scandinavia, Alaska, and the Pacific
Cruises are announced several months before the
departure and are also sold mostly by travel agents as
packages.
 The fly cruise package has grown in popularity
because It combines the speed and efficiency of jet
travel with the relaxing, romantic attribute of
cruise ships. One significant marketing strategy
used by the cruise industry is to offer heavily
discounted or free air flights to the port of
embarkation.
 As an added convenience for cruise passengers,
some cruise line agents greet passengers at the
airport and then transport them to the ship's pier, 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.
 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.
 Travel by Automobile
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 II 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
II were the tourist court and the motor hotel or
motel.
 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.
A coach (also known as a coach
bus, motorcoach, or parlor coach) is a type
of bus built for longer-distance service, in
contrast to transit buses that are typically
used within a single metropolitan region.
Often used for touring, intercity, and
international bus service, coaches are also
used for private charter for various purposes.
Coaches are also related and fall under a
specific category/type of RVs.
 Travel by Bus/Motor Coach
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. Discount airfares
have proven to be a major competition for intercity
bus service. Thus, intercity bus service has declined,
while charter and tour services have grown.
 Bus ridership patterns also changed to short-
haul distances of 250 miles or less. Continental
Trailways and Greyhound Lines Inc. are the two
major intercity companies, with Greyhound
accounting for 60% of the market.
 The main reasons for selecting bus travel
over other modes of travel are convenience and
economy. Few people choose the bus for
business travel. Bus riders tend to be older and
have less income.
 Bus riders tend to be older and have less income.
Bus service is available in practically every town of
1,000 people or more, and a passenger station or ticket
agent for bus service is at hand in each of these
communities. Most people do not choose bus travel for
long trips. Surveys have shown that women bus riders
outnumber men.
 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.
 Travel by Air
The airplane had a revolutionary impact on tourism
from World War II onward. The history of air
transportation can be divided into three parts-Pre-World
War II, World War II, 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.
 Travel by Air
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.
 Travel by Air
The airplane had a revolutionary impact on
tourism from World War II onward. The history of
air transportation can be divided into three parts-Pre-
World War II, World War II, 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.
 Travel by Air
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.
 As the airline industry grew, the travel industry
depended on it more. Cruise lines, rental car
companies, airport hotels, and ground transportation
operators depended on the airline industry to
generate the bulk of the business. Executive business
travel and international tourism are dependent on it.
 The impetus of air travel to people traveling on
business is its time-saving advantage; for the
pleasure traveler, it is the affordable price that has
the greatest impact.
 The Boeing 747 jumbo jet is a long-haul plane. The
tail stands 63 feet and 5 inches tall, about as high as a
five-story building. It weighs 775,000 pounds and
cruises at 625 miles per hour, with some models having
a range of 6,210 miles without refuelling. It is
distinguished by the hump on the nose that houses the
flight crew and an upper lounge for the first-class
passengers.
 Each 747 costs approximately $90 million,
depending on spare parts and extras ordered. It is
safer and gives a smoother ride because its huge
size lessens its reaction to air turbulence. It carries
cargo in its belly.
 Airline Regulation
International tourism requires a system of
international air transportation. This Systein requires
negotiations among nations and carriers in the form
of bilateral system reds. Overflight privileges must be
obtained from all nations over which an alftime
willcross during international flights.
 Airline Regulation
Airlines are or may be assessed overnight charges
for the privilege of flying over other nations
including countries which dhangt 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 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.
 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.
 A large number of flag carriers are government-
owned enterprises. Some are subsidized by the
government because of national pride, fear of
dependency on foreign carriers, as a means of
supporting economic development, and to ensure air
freight for export products.
 Airlines of the United States and other countries
are owned and operated by private enterprises and
must operate for a profit.
 The use of the bilateral air agreements was not
enough to meet the need for cooperation between
international airlines with different profit orientation.
After the Chicago Conference, several scheduled
carriers met in Havana and the International Air
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 for listening!

Prepared by
Maria Luisa A. de Guzman, LPT
Instructor