travel components of tourism industry

Components of tourism: Structure of the tourism industry

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The travel and tourism industry is argued by many as being the largest industry in the world. It is, therefore, no surprise that the structure of the tourism industry is quite complex, involving many components of tourism.

With many different types of tourism and types of businesses operating within the tourism industry, from private companies to charities and NGOs, the structure of the tourism industry is made up of many different segments and components.

In this article I will provide you with an overview of the structure of the tourism industry, outlining the types of organisations and stakeholders in tourism that are involved.

Structure of the tourism industry

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The importance of tourism is demonstrated when you can see how big the industry is!

The structure of the industry is made up of several components of tourism and involves many different stakeholders. These components are all interrelated in one way of another. The components of tourism make up the entire tourism system.

There are several integral components of tourism. Without these components, the tourism industry would struggle to function. I have explained what this means below, but before you read on, take a look at this short video that I made (and if you like what you see, don’t forget to subscribe to my YouTube channel)!

This was demonstrated, for example, during the Coronavirus pandemic, which halted air travel around the world. Travel services are a vital component of tourism and without these services being operational, the tourism industry struggled to survive!

There are six major components of tourism, each with their own sub-components. These are: tourist boards, travel services, accommodation services, conferences and events, attractions and tourism services.

Below, I will explain what each of the components offer to the tourism industry and provide some relevant examples.

Components of tourism: Tourist boards

A tourist board is an essential component of tourism and an integral part of the structure of the tourism industry.

A tourism board is responsible for the promotion of tourism in a particular area. This could be a city, a region, a country or a group of countries.

A tourism board is usually Government funded and is usually a public travel and tourism organisation (although this is not always the case).

A tourism board is also often referred to as a Destination Marketing Organisation (DMO).

Most tourist boards focus on promoting tourism in a particular area, city or country. There are, however, some organisations which aim to promote tourism across more than one country.

Whilst these organisation often have many functions other than tourism, they will also play a role in the promotion of tourism in particular parts of the world. This could include the European Union , the ASEAN network or organisations such as the United Nations.

A national tourist board is a national organisation whose aim is to promote tourism across the country.

There are usually several management bodies that are involved with a national tourist board. They are essential stakeholders who determine many aspects of tourism in the country, such as budgets, taxation and regulations.

Said management bodies include the parliament, the tourist board, an auditing committee and the Prime Minister, President or Head of State.

The national tourist board is funded from tourist taxes, membership fees, Government funding and other sources.

Examples of national tourist boards (often most commonly referred to by their ‘campaign title’ as opposed to the Government title) include Visit Britain , Incredible India and Amazing Thailand .

A regional tourist board is a tourist board that focusses on a particular region of a country. They are often a sub-division of a country’s national tourist board.

Regional tourism boards are often funded and operated in the same way as national tourist boards.

Examples of successful regional tourism boards include: Visit Cornwall in the UK, Kerala Tourism in India, Visite Montreal in Canada and Cape Town Tourism in South Africa.

A tourist information centre is the place where tourists can go for advice and help with regards to all matters related to tourism in the area.

In the tourist information centre (TIC) you will find staff who are knowledgeable about the local area. There will often be a range of printed and digital information for you, including leaflets, maps, coupons and guidebooks. Sometimes there will be virtual tourism facilities.

Tourist information centres have been an important component of tourism throughout the history of travel and tourism , however, they are coming under increasing pressure as a result of information that is available online. This has resulted in fewer people visiting TICs in person.

Most major tourist areas will have a tourist information centre. These are usually centrally located.

Tourist information centres are funded by the local Government.

Other posts that you might be interested in: – What is tourism? A definition of tourism – The history of tourism – Stakeholders in tourism – Dark tourism explained – What is ABTA and how does it work? – The economic impacts of tourism

Components of tourism:Transport services

The relationship between transport and tourism is strong.

According to the most commonly accepted definitions of tourism, a person must travel away from their home environment for at least one night in order to be a tourist (although I would argue that this definition needs updating given that it doesn’t account for novel forms of tourism such as a staycation or virtual tourism ).

Based on this fact, therefore, transport is an integral component of tourism. Without transport, people cannot reach their intended destination.

There are a range of different transport types. The most common and popular methods of transport that make up the structure of the tourism industry, however, are: air, road, train and water .

Travel by air has grown exponentially in the past few decades. With the introduction of low cost airlines and deregulation, the competitive market has been a tourist’s paradise.

New routes opening up has introduced tourists to areas that they may never have been able to reach before and low prices have resulted in more of us taking more trips abroad using air travel as our means of transportation.

Travel by air is an essential component of tourism and this was demonstrated during the Coronavirus epidemic. During this time most air traffic was halted, which had a devastating impact of the tourism industry world-wide.

Travel by road is also a core component of tourism, particularly for domestic tourism .

Travel by road is more popular in some countries than others. This largely depends on accessibility options (i.e. what is accessible by road), distances required and road conditions.

In destinations where travel by road is popular, there are often many car hire or rental companies.

Travel by train is very popular in destinations that have good rail networks in infrastructure.

In some parts of the world, such as China and Japan, there are world-class high-speed railways that can be more efficient than flying.

In other parts of the world, the rail journey is part of the tourism experience. A good example of this is the Siberian Railway.

In Europe you can buy an affordable interrail pass , which allows you to travel throughout Europe using the rail system.

Travel by water is also an important component of tourism.

The structure of the tourism industry includes cruises, ferries and leisure boats, among other types of travel by water.

Travel by water can vary considerably in price and can include anything from a round the world cruise to a short long tail ride in Thailand .

Components of tourism: Accommodation services

Accommodation services make up an important part of the structure of the tourism industry.

Whilst accommodation services were traditionally focussed mainly around the hotel industry, nowadays accommodation options for tourists are much more varied. This adds an additional layer of complexity to the structure of the tourism industry.

There are many hotel chains that operate throughout the tourism industry and that are a key component of tourism.

Multinational corporations have expanded throughout the tourism industry with key players being hotel chains such as Marriott, Radisson, Hilton, Travel Lodge and Holiday Inn.

However, hotel chains such as these have come under increased scrutiny as a result of the economic leakage in tourism that they cause.

Hostels and budget accommodation options are popular with budget travellers and backpackers.

There are a range of hostels found throughout the world. These are particularly popular in destinations where accommodation is expensive, such as London, New York and Singapore.

The Youth Hostel Association (YHA) and Hostelling International are popular hostel providers that are found across the UK and overseas.

Billy Butlin changed the face of the British holiday market with the introduction of his seaside holiday parks back in 1936.

Since this time, other similar chains have expanded throughout the UK and the rest of the world.

Camping is also an important component of tourism. There are camp sites situated throughout the world ranging from safari camps to glamping (glamorous camping).

Homestays have become an increasingly prominent component of tourism.

Whilst bed and breakfast accommodation has been around for a very long time, nowadays there are many more options that are grounded on the concept of a homestay.

The sharing economy has seen the growth and introduction of many types of accommodations into the travel and tourism sector that did not exist before.

The most popular of these is Airbnb, where people rent out a room or an entire property to tourists. You can read more about how Airbnb works here .

In recent years consumers have been demanding new and unusual experiences more than ever. In response to this, we have seen many accommodation innovations emerge throughout the world.

From staying in an ice hotel in Finland, to sleeping in a hammock in Borneo to a night in a haunted castle in Wales, there are many different types of accommodation options that can make your holiday a little bit more exciting!

Components of tourism: Conferences and events

Conferences and events make up a significant part of the structure of the tourism industry.

Conferences, which often come under business tourism , come in all shapes and sizes around the world.

From a small academic gathering to a large-scale summit involving national leaders from around the world, conferences are an important component of tourism.

Likewise, the event sector is also a significant part of the tourism industry.

There are millions of events that take place around the world each year that vary in size and function. Many of these form an integral part of the tourism industry.

Examples of major conferences and events around the world

There are many major conferences and events that take place around the world every year. Here are a few of my favourites:

The World Travel Market (WTM) is held in London each November. This is a large event that is held at the Excel venue.

WTM provides travel industry experts with the opportunity to showcase their work, learn more about the industry and to network.

ITB is the world’s leading international travel trade show. It is held in Berlin each year.

Similar to the WTM, this large-scale event enables industry professionals to network and undertake continuous professional development.

The vast majority of people are familiar with the Football World Cup.

The Football World Cup is held every four years in a different location.

The Football World Cup attracts millions of tourists from all over the world. The event also acts as a stimuli for tourism as the nation will often use the opportunity of hosting the event as a chance to market tourism in the area to those who are tuning in from their TVs from around the world.

Sports tourism , which includes events such as the Football World Cup, contributes significantly to the overall tourism industry.

Glastonbury is a popular British music festival. It takes place each summer in Somerset.

Glastonbury is a five-day festival of contemporary performing arts. In addition to music, the festival hosts dance, comedy, theatre, circus, cabaret, and other arts to entertain visitors.

Glastonbury attracts many domestic tourists as well as international tourists.

San Fermin is a festival that is held in Pamplona, Spain each July.

San Fermin, also known as the ‘Running of the Bulls’ is a historically-rooted festival that lasts five days. It involves dancing, eating and drinking, games and the famous bull races and fights.

San Fermin has been subject to a lot of controversy in recent years, with many people protesting that it is a cruel form of animal tourism .

Holi Festival is known as the ‘festival of spring’, the ‘festival of colours’ or the ‘festival of love’.

Holi Festival is celebrated in India each year during the month of March.

Holi Festival is famous for the way in which coloured paints are used and often thrown onto people’s faces and clothes.

This is a Hindu festival that signifies the victory of good over evil.

The Day of the Dead festival, locally referred to as ‘Dia de los Muertos’, is a festival that is celebrated in November each year in Mexico.

This day is a celebration of the deceased, whereby it is believed that the alive and the dead are reunited. On this day many people will create offerings for the deceased.

Many people choose to dress up as skeletons and in halloween-type outfits and they celebrate with food, drink and music.

Components of tourism: Attractions

An essential component of the tourism industry are the tourist attractions.

There are a multitude of different tourist attractions around the world.

Some are built, some are natural. Some are paid, some are free. Some are famous, others are not. Some are large and some are small.

Natural attractions are just as it says on the tin – natural. In other words, they are attractions that have not been made by man.

Natural attractions are found all over the world and vary in size and scope. There is even a definitive list of the seven natural wonders of the world .

I have visited many natural attractions around the world, here is a list of some of my favourites:

• Drakansburg Mountains, South Africa
• Mount Kilimanjaro, Tanzania
• Mount Toubkal, Morocco
• Sahara Desert, Morocco
• Red Sea, Egypt
• Dead Sea, Israel
• Sierra Nevada, Spain
• Chicken Island, Thailand
• Niagara Falls, USA
• Rocky Mountains, Canada
• Pammukale Thermal Pools, Turkey
• Iceland (the island is filled with wonderful natural attractions!)
• Amazon Rainforest , Ecuador
• Cenotes, Mexico
• Iguazu Falls, Brazil
• The Great Barrier Reef, Australia
• Ha Long Bay, Vietnam
• Waterways of Kerela, India
• Mount Hallasan, South Korea

Built attractions also make up an important part of the structure of the tourism industry.

There are many built attractions throughout the world. Some attractions are built for the purpose of tourism, such as theme parks or museums. Other attractions are built for other purposes but then become tourist attractions, such as the Empire State Building or the Sydney Opera House.

I have visited many built attractions throughout the world. Here are some of my favourites:

• Robin Island, South Africa
• The Pyramids of Giza, Egypt
• La Sagrada Familia, Spain
• The Eiffel Tower, France
• The United States Capitol Building, USA
• Statue of Liberty, New York
• Petronas Towers, Malaysia
• Marina Sands Bay Hotel, Singapore
• Angkor Wat, Cambodia
• Taj Mahal, India
• Sydney Harbour Bridge, Australia
• Houses of Parliament, UK
• Sheikh Zayed Mosque, UAE

Components of tourism: Tourism services

Tourism services are an essential component of tourism. Without many tourism services, the tourism industry would fail to adequately function.

Below I will explain the three major tourism services that make up the structure of the tourism industry.

A tour operator is the individual or organisation who puts together a trip.

Typically, a tour operator would package together essential elements including accommodation, transport and transfer. They would then sell this package to the tourists.

However, tour operators are becoming fewer in recent years. Consumers are now far more Internet savvy and are more capable of researching the individual elements of their holiday and booking this independently. This is known as dynamic packaging .

Traditionally, a travel agent would sell the product that the tour operator has produced i.e. the package holiday.

While travel agents have and continue to sell individual holiday components, they have historically been most commonly used by tourists who wish to book a package holiday.

In today’s society, there is far less scope for travel agents than there used to be. A few years ago it would be easy to finish school and to get a job in a travel agent selling holidays. Now, however, people are more likely to set up their own travel agent business online or to be employed by an online retailer.

Many high street stores have now closed as there is little demand these days for holidays to be booked in this way. Instead, many people are selling holidays and travel services via their blogs or websites.

The travel agent does still exist, but he has changed the way he looks.

Ancillary services are another core component of tourism.

Ancillary basically means ‘extra’ or ‘additional’. An ancillary service in the context of tourism, therefore, is any product or service that is additional to the core elements of accommodation, transport and transfer.

Here are some examples of ancillary products:

• Attraction tickets
• Meal tickets
• Extra luggage
• Currency exchange
• Airport parking

As you can see, the tourism industry is large and complex, but understanding the different components of tourism isn’t too difficult.

All of the components of tourism are interconnected in one way or another and many rely on one another to be successful.

Want to learn more about the structure of tourism? I have listed some recommended texts below.

• An Introduction to Tourism : a comprehensive and authoritative introduction to all facets of tourism including: the history of tourism; factors influencing the tourism industry; tourism in developing countries; sustainable tourism; forecasting future trends.
• The Business of Tourism Management : an introduction to key aspects of tourism, and to the practice of managing a tourism business.
• Tourism Management: An Introduction : gives its reader a strong understanding of the dimensions of tourism, the industries of which it is comprised, the issues that affect its success, and the management of its impact on destination economies, environments and communities.

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16 Chapter 16 Hospitality & Tourism

Richard Parsons; Stephen Skripak; Anastasia Cortes; Anita Walz; and Gary Walton

Learning Objectives

• Understand what tourism is: definition, components, and importance.
• Understand the economic, social and environmental benefits and costs of tourism.
• Define hospitality and the pineapple tradition.
• Identify the types of hotel categories and how they are determined.
• Examine the different categories of food service operations.
• Understand the different types of events, meetings and conventions.

The tourism industry is often cited as the largest industry in the world, contributing 10% of the world’s GDP. In 2016 there were over 1.2 billion international tourists: that’s a substantial economic impact and movement of goods and services! 1 Tourism is also considered an export and is unique in that the consumers come to the product where it is consumed on-site. Before we dig any deeper, let’s explore what the term “tourism” means.

Definition of Tourism

There are a number of ways tourism can be defined. The United Nations World Tourism Organization (UNWTO) embarked on a project from 2005 to 2007 to create a common glossary of terms for tourism. It defines tourism as follows:

A social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes. These people are called visitors (which may be either tourists or excursionists; residents or non-residents) and tourism has to do with their activities, some of which imply tourism expenditure. 2

In other words, tourism is the movement of people for a number of purposes (whether business or pleasure). It is important to understand the various groups and constituencies involved in this movement. Of course it includes the tourist, but also the vast array of businesses providing goods and services for the tourist, the government and political structure of a destination, and the local residents of the destination community itself. Each of these components are necessary parts of a successful tourism destination and operate within private and public sectors, the built environment, and the natural environment. All these come together to create the processes, activities, and outcomes of tourism.

If it all seems a little overwhelming, it might be helpful to break tourism down into broad industry groups, each of which will be covered in this chapter:

Accommodation and Lodging

• Food and Beverage Services (F & B)

Recreation and Entertainment

• Convention & Event Management

Travel Services

• Private Clubs

Benefits and Costs of Tourism

Tourism impacts can be grouped into three main categories: economic, social, and environmental. These impacts are analyzed using data gathered by businesses, governments, and industry organizations. Some impacts gain more attention than others. It is also important to recognize that different groups and constituencies are impacted differently.

Economic Impacts of Tourism

The tourism industry has a huge economic impact that continues to expand to new markets and destinations. According to the UNWTO, in 2016 “The total export value from international tourism amounted to US$ 1.5 trillion.” 3  Regions with the highest growth in terms of tourism dollars earned (2016 vs 2015) are Africa, Asia and the Pacific, the Americas Europe. Only the Middle East posted negative growth at the time of the report. As well, the UNWTO’s Tourism 20 3 0 Vision report predicts that international arrivals will reach nearly 1.8 billion by 2030. 4 Figure 16.2 provides additional information about the impact of tourism worldwide.

Positive impacts from this economic boom include robust foreign exchange, increases in income, and GDP growth. Tourism can also offer diverse employment opportunities, can be developed with local products, and is often compatible with other economic activities within a destination. Tourism often injects money into the community that leads to secondary economic development as well. For example, successful resorts may create the need for a commercial laundry facility or a pet boarding business.

However, there are also negative impacts. Property values may increase to the point of unaffordability for local residents, and the seasonality of the tourism industry may create a feast-or-famine economy. As with any economy, if too many resources are focused on just one industry, communities may be vulnerable to any unexpected economic, social, or environmental changes. One example is the New Jersey shore after the devastation of Hurricane Sandy in 2012. The tourism industry was severely impacted, leaving no economic fallback for local residents.

Social Impacts of Tourism

In addition to the economic benefits of tourism development, positive social impacts include an increase in amenities (e.g., parks, recreation facilities), investment in arts, culture, heritage and tradition, celebration of indigenous communities, and community pride. Tourism also has the potential to break down language, socio-cultural, religious, and political barriers. When developed conscientiously, tourism can, and does, contribute to a positive quality of life for residents and promotes a positive image of the destination.

However, as identified by the United Nations Environment Programme, negative social impacts of tourism can include: change or loss of indigenous identity and values; culture clashes; changes in family structure; conflict within the community for the tourism dollar; and ethical issues, including an increase in sex tourism, crime, gambling, and/or the exploitation of child workers. 5

Environmental Impacts of Tourism

Tourism relies on, and greatly impacts, the natural environment in which it operates. In some destinations, there is a great appreciation of the environmental resources as the source of the tourism industry, and as such there are environmental protection policies and plans in place. Tourism has helped to save many delicate ecosystems and their flora and fauna. Preservation of these important resources benefits not only the tourist but also the local residents as well.

Even though many areas of the world are conserved in the form of parks and protected areas, tourism development can still have severe negative economic impacts. According to The United Nations Environment Programme, these can include the depletion of natural resources (water, forests, etc.), pollution (air pollution, noise, sewage, waste and littering), and physical impacts (construction activities, marina development, trampling, loss of biodiversity, and spread of disease). 6

The environmental impacts of tourism can reach beyond local areas and have an effect on the global ecosystem. One example is increased air travel, which is often identified as a major contributor to climate change.

Whether positive or negative, tourism is a force for change around the world, and the industry is transforming at a staggering rate.

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The Hospitality Industry

When looking at tourism it is important to consider the term hospitality. Some define hospitality as “the business of helping people to feel welcome and relaxed and to enjoy themselves.” 7 Simply put, the hospitality industry is the combination of the accommodation and food and beverage groupings, collectively making up the largest segment of the industry.

The pineapple has long been the symbol of hospitality. The Caribs, indigenous people of the Lower Antilles in the Caribbean, first used it as such a symbol. The Spaniards knew they were welcome if a pineapple was placed at the entrance to the village. This symbolism spread across Europe and North America where it became the custom to carve the shape of a pineapple into the columns at the entrance of the plantation. 8 Charles Carter added a three and a half foot wooden pineapple to the peak of the roof at Shirley Plantation, the first plantation in Virginia. 9 It is now common to see the image of the pineapple as a sign of welcome, warmth and hospitality.

The types of employees and resources required to run an accommodation business — whether it be a hotel, motel, or even a campground — are quite similar. All these businesses need staff to check in guests, provide housekeeping, employ maintenance workers, and provide a place for people to sleep. As such, they can be grouped together under the heading of accommodation and lodging . Figure 16.4 summarizes the various groupings within the industry.

Hotel Types

Hotels are typically referred to by hotel type or other classifications. Hotel type is determined primarily by how it will function and what amenities will be included within the property. Size, location, service levels and type of business or targeted market segments are additional classifications. Industry also classifies hotels by chain scale…separating hotels into categories determined by their average daily rates. Various ownership structures and brand affiliations also differentiate hotels.

Classifications

Hotels may be classified on a number of different variables. Type of Hotel : There are numerous classifications by hotel type including all-inclusive hotels, all-suite properties, B&B/Inns, boutique, convention/conference centers, condo hotels, resort, extended stay, full service, casino, limited service and timeshare properties. Size and Complexity: A hotel can be classified by the number of guest rooms it has; hotel sizes can range from a small boutique hotel with fewer than 50 rooms to a large resort hotel with more than 1,000 rooms. The complexity of the hotel is determined by the volume and number of additional revenue generating functions such as the square feet of available conference space, number of F&B operations and additional services and amenities like pools, fitness centers, spas, golf, etc. Location: The location of a hotel can also determine the type of guest served. An airport hotel may be very different from a city-center property in an urban environment, or a remote island resort or a small quaint bed and breakfast located on top of a mountain. Hotels that specialize in conferences, may locate near entertainment destinations like Las Vegas or Disney theme parks to provide pre-post conference activities for attendees. Service Level: The level of service provided is also a key variable, ranging from an inexpensive budget or economy hotel, (Limited or Focused Service Hotels) which may have limited services and amenities, to upscale and luxury hotels (Full Service Hotels) with many services and a wide range of amenities. Market Segmentation: Figure 16.5 on the next page outlines the characteristics of specific hotel types that have evolved to match the needs of a particular traveler segment. As illustrated, hotels adapt and diversify depending on the markets they desire and need to drive occupancy levels and generate revenues. Some hotels will specialize in a specific market segment, but in today’s competitive environment, most hotels will target a combination of these segments.

There are several other industry related organizations, such as Forbes and AAA which provide Consumer Ratings for individual hotels….another form of classifying a property. Forbes has traditionally awarded 1 to 5 “Stars” and AAA, 1 to 5 “Diamond” ratings. Additionally, many social media applications like Trip Advisor offer hotel property ratings to consumers.

Chain Scale: Smith Travel Research (STR) is an organization that provides the lodging industry with global data benchmarking, analytics and marketplace insights. STR classifies the lodging industry into six chain scale segments according to their respective brand Average Daily Rate (ADR). The six segments are defined as Luxury ; Upper Upscale ; Upscale ; Mid-Scale with F&B ( Upper Mid-Scale ); Mid-Scale without F&B ( Mid-Scale ) and Economy . Through STR’s 30 –plus years of service to the hospitality industry, they have developed vital benchmarking performance solutions, established market trend transparency and provided data used by the investment community to support hotel development projects. Their core product, the STAR report, provides hotel owners and operators with comparative performance data between their property and a defined set of market competitors and allows you to follow trends in hotel occupancy, average daily rate (ADR) and revenue per available room (RevPar). Developers, investors, industry analysts, hotel brands and management companies all utilize STR data when determine what type of hotel to build and what location would provide maximum opportunity for success.

The type of ownership, brand affiliation and management are also very important variables in the classification of hotels. Owners may manage their own hotels independently but in today’s competitive environment, they would likely sign a Franchise Agreement with a nationally recognized brand as well as a Management Contract with a hotel management company to manage the property. A hotel chain such as Marriott, Hilton, Hyatt or IHG (Intercontinental Hotel Group) is comprised of multiple brands: Marriott, following their recent merger with Starwood currently has 30 different hotel brands, with each name representing a different level of price, service or targeted market segments.

Branding Decision

Selecting a brand affiliation is one of the most significant decisions hotel owners must make. 10 The brand affiliation selected will largely determine the cost of hotel development or conversion of an existing property to meet the standards of the new brand. The affiliation will also determine a number of things about the ongoing operation including the level of services and amenities offered, cost of operation, marketing opportunities or restrictions, and the competitive position in the marketplace. For these reasons, owners typically consider several branding options before choosing to operate independently or to adopt a brand affiliation.

Franchise Agreements

Another managerial and ownership structure is franchising. A hotel franchise enables individuals or investment companies (the franchisee) to build or purchase a hotel and then buy or lease a brand name to become part of a chain of hotels using the franchisor’s hotel brand, image, loyalty program, goodwill, procedures, cost controls, marketing, and reservations systems. 11

A franchisee becomes part of a network of properties that use a central reservations system with access to electronic distribution channels, regional and national marketing programs, central purchasing, revenue management support, and brand operating standards. A franchisee also receives training, support, and advice from the franchisor and must adhere to regular inspections, audits, and reporting requirements.

Selecting a franchise structure may reduce investment risk by enabling the franchisee to associate with an established hotel company. Franchise fees can be substantial, and a franchisee must be willing to adhere to the contractual obligations with the franchisor. 12 Franchise fees typically include an initial fee paid with the franchise application and continuing fees paid during the term of the agreement. These fees are usually a percentage of revenue but can be set at a fixed fee. The total percentage of sales ranges significantly for hotels from 3.3% – 14.7% with a median of 11.8%. 13

Management Contracts

It is common for ownership to utilize a management contract , which is a service offered by a management company to manage a hotel or resort for its owners. Owners have two main options for the structure of a management contract. One is to enter into a management agreement with an independent third-party hotel management company to manage the hotel. There are hundreds of these companies, but some of the large organizations include Aimbridge, Benchmark Hospitality, Crescent Hotels, Interstate Hotels, and White Lodging. A slightly different option is for owners to select a single company to provide both the brand and the expertise to manage the property. Marriott, Hilton, and Hyatt, are companies that provide this second option to owners.

Food and Beverage Services

The food and beverage sector is commonly known to industry professionals by its initials F&B. The F&B sector grew from simple origins to meet the basic needs for food and beverage services to increasing demand for unique experiences and broader options. As the interests of the public became more diverse, so too did the offerings of the F&B sector. The increasing awareness and demand for organic, sustainable, local or craft options as well as special dietary needs in food and beverage continue to challenge this industry. In addition, in order to better attract and serve a diverse array of diners, the F&B industry now consists of a variety of segments. The following is a discussion of each.

Quick Service Restaurants

Formerly known as fast-food restaurants, examples of  quick-service restaurants , or QSRs, include Chick-fil-A, Subway, and Pizza Hut. This prominent portion of the food sector generally caters to both residents and visitors, and it is represented in areas that are conveniently accessed by both. Brands, chains, and franchises dominate the QSR landscape. While the sector has made steps to move away from the traditional “fast-food” image and style of service, it is still dominated by both fast food and food fast; in other words, food that is purchased and prepared quickly, and generally consumed quickly as well.

Fast Casual Restaurants

Fast Casual restaurants focus on higher quality ingredients than QSR’s and provide made-to-order food in an environment that does not include table service. Customers usually queue and order at a counter. The seating area is more upscale and comfortable. Examples would include Chipotle Mexican Grill, Panera and Jason’s Deli.

Full-Service Restaurants

Full-service restaurants  are perhaps the most fluid of the F&B operation types, adjusting and changing to the demands of the marketplace. Consumer expectations are higher here than with QSRs. 14 The menus offered are varied, but in general reflect the image of the restaurant or consumer’s desired experience. Major segments include fine dining, family/casual, ethnic, and upscale casual. Fine dining  restaurants are characterized by highly trained chefs preparing complex food items, exquisitely presented. Meals are brought to the table by experienced servers with sound food and beverage knowledge in an upscale atmosphere with table linens, fine china, crystal stemware, and silver-plate cutlery. The table is often embellished with fresh flowers and candles. In these businesses, the average check, which is the total sales divided by number of guests served, is quite high (often reviewed with the cost symbols of three or four dollar signs: $$ \$\$\$ or \$\$\$\$ $$.) Examples include the Inn at Little Washington, Ruth’s Chris Steakhouse and Capitol Grille.

Casual restaurants serve moderately-priced to upscale food in a more casual atmosphere. Casual dining comprises a market segment between fast casual establishments and fine dining restaurants. Casual dining restaurants often have a full bar with separate bar staff, a larger beer menu and a limited wine menu. This segment is full of chains such as Chili’s, Outback, Red Robin and Cracker Barrel as well as many independent restaurants in regional or local markets.

Family restaurants  offer affordable menu items that span a variety of customer tastes. They also have the operational flexibility in menu and restaurant layout to welcome large groups of diners. An analysis of menus in family/casual restaurants reveals a high degree of operational techniques such as menu item cross-utilization, where a few key ingredients are repurposed in several ways. Both chain and independent restaurant operators flourish in this sector. Examples of chains in this category would be Golden Corral, Cici’s Pizza and Ponderosa Steakhouse.

Ethnic restaurants  typically reflect the owner’s cultural identity, Vietnamese, Cuban, Thai, etc. The growth and changing nature of this sector reflects the acceptance of various ethnic foods within our communities. Ethnic restaurants generally evolve along two routes: toward remaining authentic to the cuisine of the country of origin or toward larger market acceptance through modifying menu items. 15 Examples would be P.F. Chang’s, Tara Thai or Pei Wei.

Bars, Wineries, and Craft Distilling

The beverage industry continues to evolve as well with a strong focus on local craft beers, wines, cider and distilling. Wineries exist in almost every state, with over 250 in Virginia as of 2015. 16 Wine, bourbon, cider trails and brew pub crawls, etc. are used to generate awareness and create experiences for customers. Wineries often use event space or festivals to take advantage of the beauty of the winery and supplement their revenues.

Institutional Food Service

Institutional f ood s ervice is large scale and often connected to governmental (National Parks) or corporate level organizations. Often run under a predetermined contract, the institutional F&B sector includes:

• Educational institutions
• Prisons and other detention facilities
• Corporate staff cafeterias
• National Park restaurants and concessions
• Cruise ships
• Airports and other transportation terminals and operations

Examples of companies who focus on Institutional Food Service are Compass, Sodexho, Aramark.

Accommodation Food Service

This sector includes hotel restaurants and bars, room service, and self-serve dining operations (such as a breakfast room).  Hotel restaurants are usually open to the public and reliant on this public patronage in addition to business from hotel guests. Collaborations between hotel and restaurant chains have seen reliable pairings such as the combination of Shula’s Steakhouse and Marriott Hotels.

Restaurant Industry Profitability and Cost Control

According to the National Restaurant Association, QSRs have the highest pre-tax profit margin at 6.3%, while full-service restaurants have a margin of 4.7%. There will be significant variances from these percentages at individual locations, even within the same brand. 17

A number of costs influence the profitability of an F&B operation. Some of the key operating expenses (as a percentage of revenue) are detailed in Figure 16.16, above, where food cost and salaries & wages are the two major expenses, each accounting for approximately a third of the total. Other expenses include rental and leasing of venue, utilities, advertising, and depreciation of assets. These percentages represent averages, and will vary greatly by sector and location.

Cost control and containment is essential for all F&B businesses. Demanding particular attention are the labor, food, and beverage costs, also known as the operator’s primary costs. In addition to these big ticket items, there is the cost of reusable operating supplies such as cutlery, glassware, china, and linen in full-service restaurants.

Recreation can be defined as the pursuit of leisure activities during one’s spare time 19 and can include vastly different activities such as golfing, sport fishing, and rock climbing. Defining recreation as it pertains to tourism, however, is more challenging.

Let’s start by exploring some recreation-based terms that are common in the tourism industry. Outdoor recreation can be defined as “outdoor activities that take place in a natural setting, as opposed to a highly cultivated or managed landscape such as a playing field or golf course.” 20   This term is typically applied to outdoor activities in which individuals engage close to their community. When these activities are further away, and people must travel some distance to participate in them, they are often described as “adventure tourism”. According to the United Nations World Tourism Organization (UNWTO), adventure tourism is “a trip that includes at least two of the following three elements: physical activity, natural environment, and cultural immersion.” 21

Ultimately, categorization is based on a combination of several factors, including manner of engagement in the activity (risk exposure, experience requirement, group or solo activity), the distance travelled to access the activity, and the type of environment (proximity to nature, level of challenge involved) in which the activity occurs.

A 2013 adventure tourism market study discovered that people who travel for adventure experiences tend to be well-educated, with 48% holding a four-year degree or higher credential. They value natural beauty and rank this factor highest when choosing a destination. The most cited reasons for their travel are “relaxation, exploring new places, time with family, and learning about different cultures.” 22

Globally, it is estimated that the continents of Europe, North America, and South America account for 70% of adventure tourism, or US$263 billion in adventure travel spending. 23

Entertainment

Entertainment is a very broad category which overlaps with many of the areas discussed elsewhere in this chapter, like hotels and accommodation. Two major types of entertainment that we’ll discuss here are gaming and theme parks.

Gaming has grown significantly in the U.S. and globally. The number of casinos in the U.S. has been growing since 2010, and in 2013, there were over 500 commercial casinos, as shown in Figure 16.16. Casinos are found all over the U.S. in major cities, riverboats, and on Native American lands. However, U.S. casino revenue has been relatively flat, while global gaming revenues have been on the increase, largely due to Asian market growth. Most casinos involve other facets of the Hospitality industry such as lodging, F&B, golf, entertainment, spas, etc., but they also have the added challenges of casino operations.

Theme Parks

Theme parks have a long history dating back to the 1500’s in Europe, and have evolved ever since. Today, it is hard not to compare any amusement park destination to Disneyland and Disney World. Opened in 1955 in sunny California, Disneyland set the standard for theme parks. Theme parks outside of California and Florida are often highly seasonable operations challenged with significant staffing and training requirements each year.

Convention and Event Management

A convention is a large meeting of people with similar interests who meet for a period of at least a few days to discuss their field. An  event  is a gathering at a given place and time, usually of some importance, often celebrating or commemorating a special occasion.

Both conventions and events can be extremely complex projects, which is why, over time, the role of meeting planners has taken on greater importance. The development of education, training programs, and professional designations such as CMPs (Certified Meeting Planners), CSEP (Certified Special Events Professional), and CMM (Certificate in Meeting Management) has led to increased credibility in this business and demonstrates the importance of the sector to the economy.

Meeting planners may be independent contractors hired to facilitate the planning process, work directly for the company full time to coordinate their meeting, or work for hotels, conference centers and event venues directly.

• The various tasks involved in meeting and event planning include:
• Conceptualizing/theming
• Site inspection & selection
• Logistics and planning
• Human resource management
• Marketing and public relations
• Budgeting and financial management
• Sponsorship procurement
• Management and evaluation

Event Categories

Mega events.

A m ega-event is a large scale, highly prestigious event such as the Olympic Games, the FIFA World Cup, or a global economic summit. These events typically gain tremendous media coverage and have major economic impacts on the host location, both positive and negative. High levels of tourism (1 million+ visitors) associated with a mega-event brings revenue, but the revenue may be outweighed by substantial capital and social costs incurred by the host. The events are often awarded to host destinations through a bidding process and gain tremendous media coverage.

Special Events

A special event is a one-time or infrequent specific ritual, presentation, performance, or celebration. Special events are planned and created to mark a special occasion, such as a presidential inauguration or the Queen of England’s 90 th birthday. Like mega-events, there may be significant media coverage and economic impact for the host city or destination.

Hallmark Event

A hallmark event is a unique event that is often identified with the location where it is held, like Carnival in Rio de Janeiro or Oktoberfest in Munich. Hallmark events contribute significant economic benefits and even can create a competitive advantage for the host city or destination that attracts tourists.

A festival is a themed public celebration that conveys, through a kaleidoscope of activities, certain meaning to participants and spectators. Festivals are often celebrations of community or culture and feature music, dance, or dramatic performances. Examples include Lollapalooza, the Cannes Film Festival, and Junkanoo in the Bahamas.

Local Community Events

A local community event is generated by and for locals; although it may attract tourists, its main audience is the local community. The community may experience measurable economic impacts, as might happen at The Steppin’ Out Street Fair in Blacksburg (think hotel stays and eating out). Fundraisers and community picnics are also examples in this category.

Meetings and Conventions

The tourism industry also has a long history of creating, hosting, and promoting meetings and conventions that draw business travelers. In fact, Convention and Visitor Bureau’s (CVB’s) work hard to attract these meetings and conventions to their city to drive economic benefit for hotels, restaurants, entertainment venues, etc.

There are several types of such events.

Conventions  generally have very large attendance, and are held on a regular schedule but in different locations. They also often require a bidding process.  Political conventions are one such example.

Association M eetings or C onferences are held regionally and nationally for hundreds of associations or events focused on specific themes. Examples would be the National Restaurant Association Annual Convention, ComicCon, or the National Auto Show.

Corporate M eetings will vary significantly in size and purpose and include regional or national sales meetings, shareholder meetings, training sessions, or celebrations. The location will vary depending on the nature of the meeting. They may be held at an airport property, a traditional corporate meeting facility or even an upscale resort.

Trade S hows and T rade F airs  can be stand-alone events, or adjoin a convention or conference.

S eminars , W orkshops , and R etreats are examples of smaller-scale events.

As meeting planners have become more creative, meeting and convention delegates have been more demanding about meeting sites. No longer are hotel meeting rooms and convention centers the only type of location used; non-traditional venues have adapted and become competitive in offering services for meeting planners. These include architectural spaces such as airplane hangars, warehouses, or rooftops and experiential venues such as aquariums, museums, and galleries. 24

Transportation and travel services are another large element of the tourism industry. This area includes cruise ships, airlines, rail, car rentals, and even ride sharing such as Uber and Lyft. Each of these segments is impacted significantly by fuel costs, safety issues, load factors and government regulation.

If you’ve ever been on a cruise, you are in good company. According to CLIA (Cruise Lines International Association), 23 million passengers were expected to go on a cruise worldwide on 62 member lines in 2015. 25 The industry employs over 900,000 people. 26

Over 55% of the world’s cruise passengers are from North America, and the leading destinations (based on ship deployments), according to CLIA are: 27

• The Caribbean (36%)
• The Mediterranean (20%)
• Northern Europe (11%)
• Australia/New Zealand (6%)
• Alaska (6%)
• South America (3%)

The t ravel services sector is made up of a complex web of relationships between a variety of suppliers, tourism products, destination marketing organizations, tour operators, and travel agents, among many others. Under the North American Industry Classification System (NAICS), the travel services industry group includes “establishments primarily engaged in travel arrangement and reservation services. Examples … are tourist and travel agencies; travel tour operators and wholesale operators; convention and visitors’ bureaus; airline, bus, railroad and steamship ticket offices; sports and theatrical ticket offices; and airline, hotel and restaurant reservation offices.” 28 Tourism services support industry development and the delivery of guest experiences.

Travel Agencies

A travel agency is a business that operates as the intermediary between the travel industry (supplier) and the traveler (purchaser). Part of the role of the travel agency is to market prepackaged travel tours and holidays to potential travelers. The agency can further function as a broker between the traveler and hotels, car rentals, and tour companies. 29 Travel agencies can be small and privately owned or part of a larger entity.

Online travel agencies (OTAs)

Online travel agents (OTAs) are companies that aggregate accommodations and transportation options and allow users to choose one or many components of their trip based on price or other incentives. Examples of OTAs include Booking.com, Expedia.com, Hotwire.com, and Kayak.com. OTAs are gaining popularity with the travelling public; in 2012, they reported online sales of almost $100 billion 30 and almost triple that figure, upward of $278 billion, in 2013. 31 Over 40% of U.S. travelers booked flights online in 2014. 32

Tour operators

A tour operator packages all or most of the components of an offered trip and then sells them to the traveler. These packages can also be sold through retail outlets or travel agencies. 33 Tour operators work closely with hotels, transportation providers, and attractions in order to purchase large volumes of each component and package these at a better rate than the traveler could by purchasing individually.

Destination marketing organizations (DMOs)

Destination marketing organizations (DMOs) include national tourism boards, state/provincial tourism offices, and community convention and visitor bureaus around the world. DMOs promote “the long-term development and marketing of a destination, focusing on convention sales, tourism marketing and service” 34 .

Country Clubs

Country c lubs are another part of the Hospitality industry with a very different service strategy focusing on serving members who will develop relationships with the staff compared to a more transactional service interaction in lodging, restaurants or airlines.

Country clubs do not focus as strongly on profit as they do on maximizing member satisfaction, retention and growth while maintaining an attractive fee structure. Country (or city) clubs, will typically have restaurant and bar operations, catered events and other amenities such as golf, tennis, pool, fitness facilities, etc. Depending on the type of club, family and youth events are important to maintain and grow membership.

Strong customer service, culinary, event management and general management skills are necessary to be successful in clubs.

Chapter Video

As in any other fast-moving industry, the landscape in Hospitality and Tourism is always changing. This video explores 10 of the more important current trends impacting the industry.

(Copyrighted material)

Key Takeaways

• The Tourism industry is the largest industry in the world with significant benefit and costs to a region. The global competition for the tourism dollar is significant within the US and between countries.
• Hotels vary significantly in size, quality, purpose, chain affiliation, and ownership. The complexity of the operation and leadership vary as well.
• Food and Beverage is made up of a wide variety of restaurant types from QSR, Fast Casual, Fine Dining and Ethnic. Institutional food service in business , hospitals, education, parks and concessions are a significant part of the Food and Beverage industry.
• The evolution of tastes and consumer expectations in food and beverage continue to provide opportunity and challenges in the industry for ethnic sustainable, organic, local, craft, and other unique experiences.

Chapter 16 References and Image Credits

Portions of this chapter were adapted from Westcott, Morgan (Ed)  Introduction to Tourism and Hospitality in BC.  CC BY 4.0  https://opentextbc.ca/introtourism  Available for free at:  http://open.bccampus.ca

Image Credits: Chapter 16

Figure 16.1: JackMac34 (2015). “Untitled.” Public domain. Retrieved from: https://pixabay.com/en/italy-burano-postcards-971575/

Figure 16.2: “The Impact of Global Tourism.” (2016) Data retrieved from: http://www2.unwto.org/content/why-tourism

Figure 16.3: Yellowute (2007). “Shirley Plantation.” Public domain. Retrieved from: https://commons.wikimedia.org/wiki/File:Shirley_Plantation_2006.jpg

Figure 16.6 “Example of a Hotel Market segmentation by STR’s chain scale” Author’s own work. Licensed CC BY 4.0 .

Figure 16.7: Christina Hsu (2009). “San Diego City and Bay at Night.” CC BY-NC-SA 2.0 . Retrieved from: https://flic.kr/p/6KZ5Cv

Figure 16.8: Anastasia Cortes (2016). “The Inn at Virginia Tech.” Public domain. Provided by author.

Figure 16.9: Dale Cruse (2014). “New Zealand langoustines at Troquet.” CC BY-NC-SA 2.0 . Retrieved from: https://www.flickr.com/photos/dalecruse/8551895022/

Figure 16.10: Imzadi1979 (2012). “An example of a typical American logo sign.” Public domain photograph. Retrieved from: https://en.wikipedia.org/wiki/Logo_sign#/media/File:Logo_Sign.svg

Figure 16.11: J. Winters (2008) “A Red Robin Restaurant in Tukwila, Washington.” Public domain photograph. Retrieved from: https://commons.wikimedia.org/wiki/File:Red_Robin_in_Tukwila,_Washington.jpg

Figure 16.12: “Le Procope.” © Michael Rys. CC BY-NC-SA 2.0 . Retrieved from: https://en.m.wikipedia.org/wiki/Restaurant#/media/File%3AInside_Le_Procope.jpg

Figure 16.13 “The restaurant industry career path” Author’s own work. Licensed CC BY 4.0 .

Figure 16 .15 : JohnSM (2013). “Rafting in Turkey.” Public domain. Retrieved from: https://pixabay.com/en/rafting-turkey-travel-1125213/

Figure 16 .16 : Graph data sources: Statista (2016). “ Number of commercial casinos in the United States from 2005 to 2013.” Retrieved from: http://www.statista.com/statistics/187972/number-of-us-commercial-casinos-since-2005/ and “ Global casino gaming revenue from 2006 to 2015 (in billion U.S. dollars).” Retrieved from: http://www.statista.com/statistics/271577/global-casino-gaming-market-revenue/ and “ U.S. casino gaming market revenue from 2004 to 2015 (in billion U.S. dollars) .” Retrieved from: http://www.statista.com/statistics/271583/casino-gaming-market-in-the-us/

Figure 16 .17 : Josh Hallett (2009). “ The ‘Big Bang’ at Wishes – Magic Kingdom – Walt Disney World .” CC BY-NC-SA 2.0 . Retrieved from: https://www.flickr.com/photos/hyku/3830182777

Figure 16.18: Peter23 (2011). “Beijing National Stadium.” CC BY- SA 3.0 . Retrieved from: https://en.wikipedia.org/wiki/Beijing_National_Stadium#/media/File:Beijing_national_stadium.jpg

Figure 16.19 : Skeeze (2014). “Mardi Gras in New Orleans.” Public domain. Retrieved from: https://pixabay.com/en/mardi-gras-new-orleans-festival-1176483/

Figure 16 . 20 : Roger W. (2012). “ Charlotte Amalie – Panorama (Postcard) ” CC BY-NC-SA 2.0 . Retrieved from: https://www.flickr.com/photos/24736216@N07/7170231567

Figure 16 . 21 : Dan Perry (2006). “Riviera Country Club in Pacific Palisades, California.” CC BY-NC-SA 2.0 . Retrieved from: https://en.wikipedia.org/wiki/Country_club#/media/File:Riviera_Country_Club,_Golf_Course_in_Pacific_Palisades,_California_(168828797).jpg

Video Credits: Chapter 16

Sisyanti, Ling Ling, Wasim Amsal,Ella Qiu, and Rebecca Catherine Stephany. “10 trends in Hospitality and Tourism Industry.” February 6, 2015. Retrieved from:  https://www.youtube.com/watch?v=SJ8Momwv7Qk 

References: Chapter 16

Chapter 16 Hospitality & Tourism Copyright © 2018 by Richard Parsons; Stephen Skripak; Anastasia Cortes; Anita Walz; and Gary Walton is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

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Phocuswright-The Trusted Analyst of Components of Tourism Industry

For more than a decade, Phocuswright has sized and assessed the U.S. travel marketplace and the major trends that shape how travelers shop for and purchase travel. Distribution trends across air, lodging, car rental, cruise, packages, and rail are well understood. But the travel industry has lacked essential market data on a central element of the travel landscape: what leisure travelers do “when they get there.” These are essential components of tourism industry that many travel industry insiders forget to consider as part of their overall strategy.

The travel activities market includes a broad range of different types of activity providers

of varying sizes and degrees of technological sophistication. This variation precludes a one- size-fits-all approach. A multinational amusement park shares little in common with a local surfing-lessons business run out of a hut on the beach. A large share of the activity provider’s landscape is comprised of small, local providers, many of which have little or no integration with the travel distribution chain.

Components of tourism industry and the activities

To gain a clearer picture of activity provider technology, marketing, and distribution practices, Phocuswright undertook a directional email survey of activity providers, fielded through project sponsors and other travel industry partners. As a result of this methodology, survey respondents may be more likely than the general provider population to be engaged with the travel industry and reliant on travelers rather than local residents.

The activity landscape is comprised mostly of small providers, with more than three out of five reporting under $1 million in revenue (see Figure 16). One third of providers report gross sales of less than $250 thousand. Notably, because many respondents were providers that were working with travel distribution intermediaries, the survey sample is likely skewed toward larger companies. The Long Tail of small activity providers may be even longer than these revenue numbers indicate.

When providers do embrace online distribution, the most commonly used online channel is the provider’s own website; 58% report provider direct website sales. Forty-five percent of providers use destination marketing organizations, while roughly four out of 10 use traditional agents, tour operators, and online travel agencies. Multi-attraction passes attract 17% of providers, and museums/attractions are most likely to distribute through that sales channel.

Although the incidence of online distribution is relatively low among activity providers, online channels are growing the fastest. Reliance on provider websites, online activity specialists, and online travel agents is increasing, while distribution through travel agents and tour operators is in decline. Many activity providers as Components of tourism industry , are focusing on direct distribution, deterred from working with online intermediaries predominantly because of cost and display restrictions that limit how products can be presented.

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Chapter 1. History and Overview

1.1 What is Tourism?

Before engaging in a study of tourism , let’s have a closer look at what this term means.

Definition of Tourism

There are a number of ways tourism can be defined, and for this reason, the United Nations World Tourism Organization (UNWTO) embarked on a project from 2005 to 2007 to create a common glossary of terms for tourism. It defines tourism as follows:

Tourism is a social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes. These people are called visitors (which may be either tourists or excursionists; residents or non-residents) and tourism has to do with their activities, some of which imply tourism expenditure (United Nations World Tourism Organization, 2008).

Using this definition, we can see that tourism is not just the movement of people for a number of purposes (whether business or pleasure), but the overall agglomeration of activities, services, and involved sectors that make up the unique tourist experience.

Tourism, Travel, and Hospitality: What are the Differences?

It is common to confuse the terms tourism , travel , and hospitality or to define them as the same thing. While tourism is the all-encompassing umbrella term for the activities and industry that create the tourist experience, the UNWTO (2020) defines travel as the activity of moving between different locations often for any purpose but more so for leisure and recreation (Hall & Page, 2006). On the other hand, hospitality can be defined as “the business of helping people to feel welcome and relaxed and to enjoy themselves” (Discover Hospitality, 2015, p. 3). Simply put, the hospitality industry is the combination of the accommodation and food and beverage groupings, collectively making up the largest segment of the industry (Go2HR, 2020). You’ll learn more about accommodations and F & B in Chapter 3 and Chapter 4 , respectively.

Definition of Tourist and Excursionist

Building on the definition of tourism, a commonly accepted description of a tourist is “someone who travels at least 80 km from his or her home for at least 24 hours, for business or leisure or other reasons” (LinkBC, 2008, p.8). The United Nations World Tourism Organization (1995) helps us break down this definition further by stating tourists can be:

• Domestic (residents of a given country travelling only within that country)
• Inbound (non-residents travelling in a given country)
• Outbound (residents of one country travelling in another country)

Excursionists  on the other hand are considered same-day visitors (UNWTO, 2020). Sometimes referred to as “day trippers.” Understandably, not every visitor stays in a destination overnight. It is common for travellers to spend a few hours or less to do sightseeing, visit attractions, dine at a local restaurant, then leave at the end of the day.

The scope of tourism, therefore, is broad and encompasses a number of activities and sectors.

Spotlight On: United Nations World Tourism Organization (UNWTO)

UNWTO is the United Nations agency responsible “for the promotion of responsible, sustainable and universally accessible tourism” (UNWTO, 2014b). Its membership includes 159 countries and over 500 affiliates such as private companies, research and educational institutions, and non-governmental organizations. It promotes tourism as a way of developing communities while encouraging ethical behaviour to mitigate negative impacts. For more information, visit the UNWTO website .

NAICS: The North American Industry Classification System

Given the sheer size of the tourism industry, it can be helpful to break it down into broad industry groups using a common classification system. The North American Industry Classification System (NAICS) was jointly created by the Canadian, US, and Mexican governments to ensure common analysis across all three countries (British Columbia Ministry of Jobs, Tourism and Skills Training, 2013a). The tourism-related groupings created using NAICS are (in alphabetical order):

• Accommodation
• Food and beverage services (commonly known as “F & B”)
• Recreation and entertainment
• Transportation
• Travel services

These industry groups (also commonly known as sectors) are based on the similarity of the “labour processes and inputs” used for each (Government of Canada, 2013). For instance, the types of employees and resources required to run an accommodation business whether it be a hotel, motel, or even a campground are quite similar. All these businesses need staff to check in guests, provide housekeeping, employ maintenance workers, and provide a place for people to sleep. As such, they can be grouped together under the heading of accommodation. The same is true of the other four groupings, and the rest of this text explores these industry groups, and other aspects of tourism, in more detail.

It is typical for the entire tourist experience to involve more than one sector. The combination of sectors that supply and distribute the needed tourism products, services, and activities within the tourism system is called the Tourism Supply Chain. Often, these chains of sectors and activities are dependent upon each other’s delivery of products and services. Let’s look at a simple example below that describes the involved and sometimes overlapping sectoral chains in the tourism experience:

Before we seek to understand the five tourism sectors in more detail, it’s important to have an overview of the history and impacts of tourism to date.

Long Descriptions

Figure 1.2 long description: Diagram showing the tourism supply chain. This includes the phases of travel and the sectors and activities involved during each phase.

There are three travel phases: pre-departure, during travel, and post-departure.

Pre-departure, tourists use the travel services and transportation sectors.

During travel, tourists use the travel services, accommodations, food and beverage, recreation and entertainment, and transportation sectors.

Post-departure, tourists use the transportation sector.

[Return to Figure 1.2]

Media Attributions

• Front Desk by Staying LEVEL is licensed under a CC BY-NC 4.0 Licence .

Tourism according the the UNWTO is a social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes.

UN agency responsible for promoting responsible, sustainable, and universally accessible tourism worldwide.

Moving between different locations for leisure and recreation.

The accommodations and food and beverage industry groupings.

someone who travels at least 80 km from his or her home for at least 24 hours, for business or leisure or other reasons

A same-day visitor to a destination. Their trip typically ends on the same day when they leave the destination.

A way to group tourism activities based on similarities in business practices, primarily used for statistical analysis.

Introduction to Tourism and Hospitality in BC - 2nd Edition Copyright © 2015, 2020, 2021 by Morgan Westcott and Wendy Anderson, Eds is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

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International travel plays a critical role in the US economy. Prior to the COVID-19 pandemic, in 2019, international visitors spent $233.5 billion experiencing the United States; injecting nearly $640 million a day into the U.S. economy. The U.S. travel and tourism industry generated $1.9 trillion in economic output; supporting 9.5 million American jobs and accounted for 2.9% of U.S. GDP. At 14.5% of international travel spending globally, international travelers spend more in the United States than any other country. As recovery efforts continue, the International Trade Administration actively supports the industry via the twin pillars of the National Travel and Tourism Office (NTTO) and the U.S. Commercial Service . Working together, we provide a range of data and related products to support the international outreach and promotion efforts of U.S. destinations and attractions. With over 100 offices throughout the United States and in 75 countries around the world, we are where you are and where you want to be.

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As Taiwan recovers from the Covid-19 impact on the tourism industry, Taiwan travelers and the U.S. tourism exports to Taiwan has reached its peak since 2020. 

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Category: Travel

Date: August 18, 2023

Everything You Need to Know About Travel & Tourism Industry

The travel and tourism industry is one of the biggest and fastest-growing industries in the world. We are still witnessing the continued interest of many people preferring to spend their spare time on travel.

This has given an enormous opportunity for travel and tourism-related business like travel agencies and tour operators to cater to the needs of this emerging demand.

In an effort to help people who want to enter the travel business, we have written this comprehensive introduction blog about the travel and tourism industry. We also regularly share informative resources for people in the travel industry . Do check out our blog section on a regular basis to read information-rich resources.

Let’s dive in.

What is the Difference Between Travel & Tourism Industry?

The terms travel and tourism are often used side by side and are closely linked. However, there are differences between the two. In this blog, we will find out more about the difference between both travel and tourism and the activities that set them apart.

• What is tourism industry? – Tourism is the act of traveling to a different location for either business or pleasure for more than one consecutive year
• What is travel industry? – Travel refers to moving from one location to another. It can be long-distance, short-distance, overseas or domestic travel and can cover a wide variety of different travel purposes.

It is completely understandable that many find it hard to figure out the distinction between both the terms because there seems to be a significant overlap. Many of the businesses and service providers seem to carter for both travel and tourism.

Despite the progressive and adaptive nature of the industry where the changes are evident via new introduction of tourism forms , there is no attempt to develop a commonly accepted definition of travel and tourism.

While we have attempted to define the concept of travel and tourism from a generic perspective, the practical application of the meanings we outlined can be difficult when used for specific types.

We would say that academics and practitioners from the industry have to come up with appropriate definitions so that it will represent the travel and tourism industry that operates today.

Evolution of the Travel & Tourism Industry

Here is a graphic we prepared that highlights the evolution of the travel and tourism industry .

What Are the Sectors and Components Within the Travel and Tourism Industry?

In this section, we will explain the various sectors and components that are present in the travel and tourism industry.

Sectors Within the Travel and Tourism Industry

1. transportation, airline industry.

The transport (accessibility) system is one of the main key parts of the travel and tourism industry. It is considered as a link between tourist generating and tourism destination regions. Some of the major airlines in the world are,

• Emirates Airline
• Jet Airways
• Malaysia Airlines
• Air France KLM
• Southwest Airlines

People give a lot of importance to comfort while traveling. That is why there is a huge rise in companies that provide a variety of vehicles according to requirement and comfort of the clients. Some of the famous car rental companies are,

• Budget Rent a Car

Water transport

Waterways are important to the transportation of people and goods throughout the world. It has played a vital role in drawing different parts of the world closer and is essential to foreign trade. The different types of water transport are,

• Tug boats, Rigs

Bus & coach

Buses and coaches are one of the most important forms of passenger transport around the world. They have been shaping sustainable mobility for more than a century. Here are some of the luxury busses in the world,

• Marchi Mobile EleMMent Palazzo
• Featherlite Vantare Platinum Plus
• Prevost H3-45 VIP
• Foretravel IH-45 Luxury Motor Coach
• Country Coach Prevost

Railways have helped mankind in many ways – in both voyages of commerce and discovery. They are still the most popular form of transport and given the environmental benefits , they will be with us for many years to come. Here are some of the most famous trains in the world,

• Trans-Siberian Express
• Orient Express
• Flying Scotsman
• Golden Arrow
• Maharajas’ Express

This type of transportation has developed in recent years and is going to be quite influential in the years to come. The most famous company offering commercial space tourism is Virgin Galactic .

2. Accommodation

Hotels are one of the most popular forms of accommodations for tourists or anyone who is looking for a place to stay overnight or on a short-term basis. They provide guests with private rooms, bathroom and other facilities. Some of the popular hotels in the world are

• Emirates Palace
• Rancho Valencia Resort & Spa
• The Westin Excelsior
• Burj Al Arab Hotel

Shared accommodations

Shared accommodations are commonly defined as two or more people living in accommodation together. Usually, each person will have their own bed and will share certain common areas such as kitchens and bathrooms. This is a budget-friendly option for tourists. Some of the most popular shared accommodation service providers are,

• OneFineStay

Camping or temporary shelter is an outdoor accommodation which is in the form of a tent. Travelers who camp will also prefer to stay at a commercial campsite which has additional facilities. Some of the popular camping sites in the world are,

• Mount Cook National Park, New Zealand
• Devon, England
• Loch Lomond & The Trossachs, Scotland
• The Alps, France
• Hossa National Park, Finland

Bed and breakfast (B&B)

Bed-and-breakfast are cozy accommodations that are inviting, intimate environment where innkeepers are often present to look after every guest. In some cases, the owner of the B&B may live in the building too. Some of the most popular B&B’s in the world are,

• Le Quartier Sonang — Amsterdam
• Bed and Breakfast by the Beach — Bournemouth, England
• Arbor Guest House — Napa Valley, California
• Glendon Guest House — Derbyshire, England.
• Cliffside Inn Bed And Breakfast — Newport, R.I.

Cruise is a combined form of transportation and accommodation. People who go on cruise travel will have their own cabin where they can rest and relax. A major part of the passenger’s time is spent on the cruise ship. Some of the most popular cruise destinations in the world are,

• Avignon, France
• Glacier Bay, Alaska
• Vienna, Austria

Timeshare accommodation

Timesharing is shared ownership of a vacation property. A management company handles the construction of a property and sells shares where buyers can spend a specific amount of time on the property usually 1 week per year. Famous timeshare resorts in the world are,

• The Ritz Carlton Club
• The Disney Vacation Club
• The Marriott Vacation Club
• The Hilton Grand Vacations Club
• The Hyatt Residence Club

3. Food & Beverage

Restaurants.

The restaurant and dining business is equally important as the scenery, accommodations, and destination areas because tourists want to engage in local culture when they go on a holiday. If you have any plans to create a restaurant website we have written a detailed blog about the essential elements a restaurant website must-have . Here are some of the famous restaurants in the world,

• Osteria Francescana
• El Celler de Can Roca
• Eleven Madison Park

Bars & cafés

Bars & Cafés give a relaxed environment for travelers to eat and drink. Bars tend to focus on selling alcoholic drinks and soft drinks whereas cafés sell hot drinks and snacks. We have also written a detailed blog that has an amazing list of bakery & cafés website design inspiration , do check it out. Some of the world-famous bars & cafés are,

• The Broken Shaker
• Bell in Hand Tavern
• El Floridita
• Sant’Eustachio il Caffe
• La Cafeotheque

Nightclubs are commercial establishments that will stay open until late at night. These places combine music, dance and alcohol sales. Some of the world-famous nightclubs are,

• Green Valley

4. Entertainment

Casinos are similar to indoor amusement parks, but it is for adults. It has many games of chance such as slot machines, blackjack, roulette, craps, keno and baccarat provides billions of dollars in revenue for casinos. Some of the world-famous casinos are,

• WinStar World Casino
• Venetian Macau
• City of Dreams

Shopping plays a vital role in the travel and tourism industry as it caters the basic necessities and it is also a form of entertainment. Many people specifically travel to experience shopping in those destinations. Some of the world-famous shopping destinations are,

• New York City

Museums have objects and materials of cultural, religious and historical importance in one place. They are presented to the public for education and enjoyment. Some of the world-famous museums are,

• Zeitz Museum of Contemporary Art
• National Gallery of Canada
• Tate Modern
• The Metropolitan Museum Of Art
• Mauritshuis

Theme parks

A theme park has various attractions, such as rides, games and events for entertainment. They will also have shops, restaurants and other entertainment outlets. Such types of parks can be enjoyed by adults, teenagers and children. Some of the famous theme parks in the world are,

• Universal Studios
• Pleasure Beach
• Alton Towers

Components of Travel Services

Travel agency.

A travel agency sells or arranges transportation, accommodations, tours and trips for travelers. Some of the functions of a travel agency are to recommend a particular service that will be suitable for the traveler, provide assistance in procuring travel documents, process travel arrangements and give assistance in case of refunds or cancellations.

Online travel agency (OTA)

An OTA is a travel website that specializes in providing travel services to customers including flights, hotels, car rentals, cruises, activities, and packages. These websites have in-built booking systems that allow users to instantly book.

Some of the popular examples of OTAs are Expedia, Priceline and Orbitz. We have also written a detailed blog about what is an online travel agency and the benefits of partnering with them. If you are planning to create an OTA website, you can take inspiration from these 100+ travel websites .

Tour operators

A tour operator will combine tour products and travel services together to offer packaged holidays to the customers. Usually, a packaged tour will have a combination of air travel, accommodation and entertainment. The tour operator will provide organized activities for customers.

Destination marketing organizations (DMO)

DMO’s represent destinations and help to promote a particular destination as an attractive one by creating a long-term travel and tourism strategy.

Through this, they try to strengthen the economic position of that place which in turn will improve the employment opportunity for the people in that region. At ColorWhistle, we can help any type of travel and tourism provider to improve online visibility . All you have to do is, just get in touch with us to learn how we can help.

Drive Conversions and Boost your Business with Expert Travel Website Development.

How can colorwhistle’s digital solutions help travel and tourism businesses.

One thing that is common in this blog is that when we were researching to find the famous travel-related product or service provider in the world, each one of the big players had amazing websites. Those websites were the gateway through which those players showed their expertise to the world.

That is where ColorWhiste can help. We will help you to present your capability to the online world. If you are Solopreneur looking to enter the travel arena or growing or established travel business, we understand that improving your current state of affairs will always be on your mind.

Our amazing team at ColorWhistle can offer professional assistance. We have a powerhouse of multi-talented people experienced in web development and digital marketing .

If it is redesigning your existing website or creating a new one, we can polish your online image in no time. Get in touch with us today and let’s talk business!

In quest of the Perfect Travel Tech Solutions Buddy?

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About the Author - Anjana

Anjana is a full-time Copywriter at ColorWhistle managing content-related projects. She writes about website technologies, digital marketing, and industries such as travel. Plus, she has an unhealthy addiction towards online marketing, watching crime shows, and chocolates.

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Tourism: Meaning, Types, Nature, Components & Importance

Meaning of tourism.

Tourism refers to social, cultural and economic phenomenon entailing the movement of people to foreign countries or places outside their usual environment for leisure or business motives. It is simply an act of travelling to places away from your hometown or usual area. It is quite interesting and thrilled filled activity that peoples have either done or would love to do it. Tourism is a collection of activities, services and industries that together provides better travel experience to peoples travelling away from their home. It comprises of transportation, eating and drinking establishments, accommodation, entertainment, retail shops and other hospitality services provided either to individuals or group of travellers. 

The World Tourism Organization (WTO) has specially defined tourism as a practice of travelling and staying away from your home or usual environment for 1 year or less in case if it is for leisure purposes, or for 24 hours or less if meant for business/professional purposes. Tourism concept is distinct from travel. In order for tourism to happen, some displacement must be there: a person has to travel using any mode of transportation (person can even travel on foot that is nowadays the case for poorest societies and happens even in more developed countries). Also, not all travels can be considered as tourism.

Types Of Tourism

Tourism is mainly of two types based on the purpose of visit and alternative forms of tourism. It can be categorized as international and domestic tourism. 

International tourism involves people travelling outside the boundary of their home country to some other foreign country. For travelling to foreign country, one need to go through several formalities and require documents such as valid passport, visa, foreign exchange, health documents etc. It is also divided into 2 types: Inbound Tourism and Outbound Tourism. 

Inbound Tourism: Inbound tourism refers to tourist belonging to some outside country entering a particular country. Travelling outside the home country to some another country is categorised as inbound tourism for the country where people are travelling. Like for example, when Indian origin tourists travel to Australia, then it will inbound tourism for Australia as foreign tourists have entered the country. 

Outbound Tourism: This refers to people travelling from their origin country to some different country. When tourists move to some foreign place, then it is categorized as outbound tourism for their own country as they are going outside their home country. For example, when Indian tourists travel to Australia, then it will be outbound tourism for India and inbound tourism for Australia. 

Domestic Tourism refers to tourism activities of people within their home country. When people travel to different parts of their home country, then it is covered under the domestic tourism. Travelling within the home country is easier because it does not need formal travel documents and tedious formalities such as compulsory health check-ups and foreign exchange. People when travelling domestically does not face much language issues or foreign exchange issues unlike in case of foreign travels. 

Nature of Tourism

The nature of tourism is much connected with travelling. It has been the human phenomenon since the beginning of human civilization. This is a sensitive factor for human nature in terms of moving to survive, explore and get to know the unknown things. Humans started travelling as nomads for search of prey and foods, in earlier times. Later on, the agricultural development developed the base for movement of peoples as traveller. After this the industrial revolution made various destinations prominent to travelling. This made the lifestyle of traveller much easier as well as safe to realize their tourism activities. Nature of tourism is further discussed in points below: – 

Tourism and service

Tourism is a service industry comprising of all those sectors of economy that are involved in offering services such as transportation, accommodation, food, beverage, as well as distribution and sales services. The tourism industry has been taken as term of economic growth, productivity, social development, employments income, etc. However, it does not produce any commodity that can be touched or taken home. Therefore, tourism is a hospitality industry and bridge in between peoples. It makes valuable contribution to world’s economy via offering jobs to more and more people than any other industry. 

Tourism is economy contributor

With the help of tourism business, a lot of income is generated within economy in the form of domestic or foreign exchange. A large population gets employed in this industry. Tourism industry is a major contributor to public revenue. Also, nature too can be tapped and friendly relations with other countries can lead to provide benefits for economy. 

Tourism products are highly perishable

The tourism products cannot be transported to customer location. Customers need to move to the products or visit the points of service delivery. For example, hotel rooms, culture, attraction is not possible to be transported from Sri Lanka. ‘Export’ or ‘Export of tourism products’ denote the arrival of tourists or facilities utilized by tourists. 

Tourism assists in educating the mass

Tourism industry plays an effective role in spreading ideas and knowledge among mass population. There is a spontaneous method of learning and exchange of ideas in this industry. Exploration and discovery scope is very high among the adventure tourists. Also, because of tourism, respect for each other’s own life exists. 

Tourism industry is sustainable

There is not any horizon or end to tourism activities. Tourism industry is a long-term industry. It represents non-stop movement of peoples and this incessant move give rise to more and more tourism activities. 

Components of Tourism

Tourism does not operate in isolation, but contains some components without whom it can’t be operated. Tour undertaken by person is affected by distinct elements or components. These components are core parts of tourism and are known as 4 A’s of tourism. 

The four components are: Attraction, Accessibility, Accommodation and Amenities. 

Attraction is considered as the most important component of tourism that creates desire among people to make visits to a specific place or destination. It is anything influencing or inspiring people to make visit/travel. Every country has different type of attraction that attracts in large number of tourists. The lack of attraction cannot pull travellers. Attraction is all those elements, that determines the tourist’s choice to visit one place over others. Peoples can be attracted by different attraction such as trekking, sunrise, waterfall, monument, historical building, cultural sites, national parks, beach resort, flora and fauna, scenic beauty, religious sites etc. The attraction creates flow of tourism to particular area/place and act as magnetic power on pull factor of tourism. 

Attraction can also be classified into two ways: – 

– Core Attraction : Core attraction denotes the basic assets or attributes of particular place/destination. This makes up the main theme of destination. Core attraction may be natural or man-made, cultural recreations, historic or spectator events. 

– Supporting Attraction : It includes the facilities and services that serve the needs of travellers lodging, food service, shopping and local transport, foreign currency exchange and so on. Also, the success of every tourism destination depends not only on its power to attract visitors but also on its ability to hold them. Therefore, a destination must have sufficient attraction such that it is appealing to wider market.

Accessibility

Accessibility is also key component of tourism that denotes reachability to place of destination via distinct modes of transportation. It is simply the way through which tourists can easily reach their destination point. An attraction is not only necessary but it should also be accessible. Tourists reach the place of attraction by using the means of transportation. Therefore, transportation services should be regular, economic, comfortable and safe, as if travel services are better then more will be the tourists coming. Transportation is very crucial and if tourism destination lacks transport facilities, it becomes of little value. 

The passenger transport is categorized into public or private, international air and surface, etc.

– Air Transport : Air transport is the fastest growing means of long-distance tourist transport and served as primary means of transport on many routes. 

– Sea Transport : It plays a major role on short sea routes, waterways and for cruises. 

– Rail Transport : Rail Transport is good for both short and medium distance within the home country or in-between different countries. This assist in reaching destination or for movements at destination. 

More and more tourists will visit a place if it has good modes of transportation available. For example, if we compare rara lake and phewa lake- Rara lake is beautiful destination in western Nepal but only few tourists visit this place due to transportation problem. Whereas, phewa lake is visited by millions of people due to the availability of good transportation.

Accommodation

Accommodation is another component of tourism which is a primary service needed by tourists at the place of destination. It has important role to play in influencing the tourists to choose destination. Accommodation denotes a place where travellers get food and shelter to stay. The tourists can stay in distinct types of accommodation such as staying with relatives, friends, other private accommodation and their own means of accommodation such as tent and caravans. This also include the provision of food and beverages for tourists. 

Tourism arises from the movement of people and stay at the place of destination. Accommodation complements the attraction and every tourist want such accommodation where they can stay comfortably and served good food. They give more priorities to place with good accommodation having all facilities such as hotel, lodges, apartment, bar and restaurant. A huge amount of investments are needed on accommodation that are designed as per the paying capacity of tourists. A well-designed accommodation at nice location with all facilities is also attraction. Tourist must spend at least one night on destination; therefore, accommodation is important. No one is going to visit a place with attraction and accessibility, but no accommodation. 

Amenities are yet another important component of tourism that are extra facilities like service added with attraction, accessibility and accommodation in order to create tourism. They on their own does not generate any tourist flow but their absence may distract the tourists. Amenities are basically the elements which provide pleasure and satisfaction to tourists from destination. Modern amenities are primary elements of tourism and are provided by government, hotel, airlines, travel agencies etc. Different amenities that government provides are visa, entry to archaeological and cultural sites, mountaineering permit, custom facilities etc. The necessary service and facilities for making guest feel comfortable while travelling such as food, rest, sport, communication and entertainment are also included within amenities. For example, sea side resort offer facilities such as swimming, yachting, boating, recreation.

Amenities are both natural and man-made where natural amenities comprise of fishing, trekking, beaches, climbing, viewing, and man-made amenities comprises of cinema, internet, telephone, drama, music, fair and festival, E-mail and fax service.

Importance of Tourism

The tourism industry is important due to the benefits it brings and its role as a commercial activity that creates demand and development for many more industries. Tourism not only contributes towards the economic development, but also generates large number of employment opportunities and revenues. The importance of tourism is well-discussed in points given below: – 

Brings in Influx of Wealth

The biggest advantage tourism provides to every country it that it provides way to economy for receiving influx of wealth. This thing becomes very crucial for nations with newer and weaker economies, and requires the boost. There are numerous countries in Africa that especially need this, and are heavily dependent on tourism sector. Tourists travelling from strong economy countries provide foreign cash that is much stronger than the currency of weak economy countries. This in turn means that tourists are willing to spend more, considering the strength of their money in particular area. Of course, this will bring in more benefits for country. The money spend by tourists not only goes to popular tourist destination and activities, that funds local tour operators and small ventures, but also goes at their general stay.

Large job opportunities

One of the best advantages of tourism industry is that it provides large employment opportunities for locals. Creation of jobs is the most obvious benefit provided to every country. This got spread throughout all industries, from pilots flying the planes for connecting countries to the people washing utensils in restaurant kitchens. Rise of customers during tourist peak season within the wide range of business fields provide enormous benefits. Tourism too creates new jobs for local peoples within the countries, paving the way for opening of new locally run business. More jobs are created from these new businesses both within the travel and tourism sector. 

Building infrastructure

An important benefit of tourism industry is construction and improvement of infrastructural facilities within the country. With the help of wealth inflow from tourists and local communities, large expenses for building up of roads, school, parks, hospital and community areas can be easily afforded. A booming tourism industry won’t be able to survive in country having absence of right infrastructure, as tourists face difficulties in moving around and there won’t be much activities available. For example, if country’s roads are badly damaged and cannot be driven on then tourist won’t be able to move to places where they want to. 

Source of diverse income

Most of the countries are heavily reliant on different industries operating within them, and when these industries fall short then entire economy broke down. Tourism is one of the industries that is much reliable and provides regular flow of income to countries. This means that sometimes the main industry of country can be tourism industry. Tourism remains heavy unlike the other one that changes with seasons. The tourism industry helps in easing the strain caused by suffering industries, and assist in minimizing the massive negative effect this has on overall economy of country. 

Environmental protection

The environmental health is nowadays taken seriously by entire world. Due to this, there is a demand for destinations to be environment friendly. Business involved in tourism activities are taking efforts to make themselves stand out by being more responsible to environment offering eco-tours. These businesses then impact the wellness of environment and improves ways of treating massive habitats. Now, key natural areas remain unharmed and conserved due to their value to tourism industry. Practice of eco-friendly tours and accommodations motivate tourists to respect the untouched sites they are visiting, that helps in keeping these sites and their inhabitants unharmed.

Gender equality

Women fill up the majority of positions in tourism industry among most parts of the world. Unfortunately, they tend to hold more jobs at lower designations and many of them even perform unpaid jobs in their family tourism businesses. That said, the gap in wages is smaller as per the UN Women. Women are earning 14.7% less as compared to men and fill more management roles than in other fields. Tourism industry carries lots of opportunities and strategies that has great potential to further empower women. 

Preserves heritage

Another important advantage of tourism is the preservation of culture and heritage. There are lots of tourist who visit the destination specially to see the local heritage. And due to this, many destinations will take all possible steps to preserve their heritage. This can involve putting restrictions in place or limiting the number of tourists, if necessary. It is also an example of careful planning of tourism and sustainable management of tourism.

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Chapter 16 Hospitality and Tourism

Learning objectives.

• Understand what tourism is: definition, components, and importance.
• Understand the economic, social, and environmental benefits and costs of tourism.
• Define hospitality and the pineapple tradition.
• Identify the types of hotel categories and how they are determined.
• Examine the different categories of food service operations.
• Understand the different types of events, meetings, and conventions.

The tourism industry is often cited as the largest industry in the world, contributing 10 percent of the world’s GDP. In 2016 there were over 1.2 billion international tourists: that’s a substantial economic impact and movement of goods and services! [1] Tourism is also considered an export and is unique in that the consumers come to the product where it is consumed on-site. Before we dig any deeper, let’s explore what the term “tourism” means.

Definition of Tourism

There are a number of ways tourism can be defined. The United Nations World Tourism Organization (UNWTO) embarked on a project from 2005 to 2007 to create a common glossary of terms for tourism. It defines tourism as follows:

A social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes. These people are called visitors (which may be either tourists or excursionists; residents or non-residents) and tourism has to do with their activities, some of which imply tourism expenditure. [2]

In other words, tourism is the movement of people for a number of purposes (whether business or pleasure). It is important to understand the various groups and constituencies involved in this movement. Of course it includes the tourist, but also the vast array of businesses providing goods and services for the tourist, the government and political structure of a destination, and the local residents of the destination community itself. Each of these components are necessary parts of a successful tourism destination and operate within private and public sectors, the built environment, and the natural environment. All these come together to create the processes, activities, and outcomes of tourism.

If it all seems a little overwhelming, it might be helpful to break tourism down into broad industry groups, each of which will be covered in this chapter:

Accommodation and Lodging

• Food and Beverage Services (F & B)

Recreation and Entertainment

• Convention & Event Management

Travel Services

• Private Clubs

Benefits and Costs of Tourism

Tourism impacts can be grouped into three main categories: economic, social, and environmental. These impacts are analyzed using data gathered by businesses, governments, and industry organizations. Some impacts gain more attention than others. It is also important to recognize that different groups and constituencies are impacted differently.

Economic Impacts of Tourism

The tourism industry has a huge economic impact that continues to expand to new markets and destinations. According to the UNWTO, in 2016 “The total export value from international tourism amounted to US$ 1.5 trillion.” [3]  Regions with the highest growth in terms of tourism dollars earned (2016 vs 2015) are Africa, Asia and the Pacific, the Americas Europe. Only the Middle East posted negative growth at the time of the report. As well, the UNWTO’s Tourism 20 3 0 Vision report predicts that international arrivals will reach nearly 1.8 billion by 2030. [4] Figure 16.2 provides additional information about the impact of tourism worldwide.

Positive impacts from this economic boom include robust foreign exchange, increases in income, and GDP growth. Tourism can also offer diverse employment opportunities, can be developed with local products, and is often compatible with other economic activities within a destination. Tourism often injects money into the community that leads to secondary economic development as well. For example, successful resorts may create the need for a commercial laundry facility or a pet boarding business.

However, there are also negative impacts. Property values may increase to the point of unaffordability for local residents, and the seasonality of the tourism industry may create a feast-or-famine economy. As with any economy, if too many resources are focused on just one industry, communities may be vulnerable to any unexpected economic, social, or environmental changes. One example is the New Jersey shore after the devastation of Hurricane Sandy in 2012. The tourism industry was severely impacted, leaving no economic fallback for local residents.

Social Impacts of Tourism

In addition to the economic benefits of tourism development, positive social impacts include an increase in amenities (e.g., parks, recreation facilities), investment in arts, culture, heritage and tradition, celebration of indigenous communities, and community pride. Tourism also has the potential to break down language, socio-cultural, religious, and political barriers. When developed conscientiously, tourism can, and does, contribute to a positive quality of life for residents and promotes a positive image of the destination.

However, as identified by the United Nations Environment Programme, negative social impacts of tourism can include: change or loss of indigenous identity and values; culture clashes; changes in family structure; conflict within the community for the tourism dollar; and ethical issues, including an increase in sex tourism, crime, gambling, and/or the exploitation of child workers. [5]

Environmental Impacts of Tourism

Tourism relies on, and greatly impacts, the natural environment in which it operates. In some destinations, there is a great appreciation of the environmental resources as the source of the tourism industry, and as such there are environmental protection policies and plans in place. Tourism has helped to save many delicate ecosystems and their flora and fauna. Preservation of these important resources benefits not only the tourist but also the local residents as well.

Even though many areas of the world are conserved in the form of parks and protected areas, tourism development can still have severe negative economic impacts. According to The United Nations Environment Programme, these can include the depletion of natural resources (water, forests, etc.), pollution (air pollution, noise, sewage, waste and littering), and physical impacts (construction activities, marina development, trampling, loss of biodiversity, and spread of disease). [6]

The environmental impacts of tourism can reach beyond local areas and have an effect on the global ecosystem. One example is increased air travel, which is often identified as a major contributor to climate change.

Whether positive or negative, tourism is a force for change around the world, and the industry is transforming at a staggering rate.

The Hospitality Industry

When looking at tourism it is important to consider the term hospitality. Some define hospitality as “the business of helping people to feel welcome and relaxed and to enjoy themselves.” [7] Simply put, the hospitality industry is the combination of the accommodation and food and beverage groupings, collectively making up the largest segment of the industry.

The pineapple has long been the symbol of hospitality. The Caribs, indigenous people of the Lower Antilles in the Caribbean, first used it as such a symbol. The Spaniards knew they were welcome if a pineapple was placed at the entrance to the village. This symbolism spread across Europe and North America where it became the custom to carve the shape of a pineapple into the columns at the entrance of the plantation. [8] Charles Carter added a three and a half foot wooden pineapple to the peak of the roof at Shirley Plantation, the first plantation in Virginia. [9] It is now common to see the image of the pineapple as a sign of welcome, warmth and hospitality.

The types of employees and resources required to run an accommodation business—whether it be a hotel, motel, or even a campground—are quite similar. All these businesses need staff to check in guests, provide housekeeping, employ maintenance workers, and provide a place for people to sleep. As such, they can be grouped together under the heading of accommodation and lodging . Figure 16.4 summarizes the various groupings within the industry.

Hotel Types

Hotels are typically referred to by hotel type or other classifications. Hotel type is determined primarily by how it will function and what amenities will be included within the property. Size, location, service levels and type of business or targeted market segments are additional classifications. Industry also classifies hotels by chain scale … separating hotels into categories determined by their average daily rates. Various ownership structures and brand affiliations also differentiate hotels.

Classifications

Hotels may be classified on a number of different variables. Type of Hotel : There are numerous classifications by hotel type including all-inclusive hotels, all-suite properties, B&B/Inns, boutique, convention/conference centers, condo hotels, resort, extended stay, full service, casino, limited service and timeshare properties. Size and Complexity: A hotel can be classified by the number of guest rooms it has; hotel sizes can range from a small boutique hotel with fewer than 50 rooms to a large resort hotel with more than 1,000 rooms. The complexity of the hotel is determined by the volume and number of additional revenue generating functions such as the square feet of available conference space, number of F&B operations and additional services and amenities like pools, fitness centers, spas, golf, etc. Location: The location of a hotel can also determine the type of guest served. An airport hotel may be very different from a city-center property in an urban environment, or a remote island resort or a small quaint bed and breakfast located on top of a mountain. Hotels that specialize in conferences, may locate near entertainment destinations like Las Vegas or Disney theme parks to provide pre-post conference activities for attendees. Service Level: The level of service provided is also a key variable, ranging from an inexpensive budget or economy hotel, (Limited or Focused Service Hotels) which may have limited services and amenities, to upscale and luxury hotels (Full Service Hotels) with many services and a wide range of amenities. Market Segmentation: Figure 16.5 on the next page outlines the characteristics of specific hotel types that have evolved to match the needs of a particular traveler segment. As illustrated, hotels adapt and diversify depending on the markets they desire and need to drive occupancy levels and generate revenues. Some hotels will specialize in a specific market segment, but in today’s competitive environment, most hotels will target a combination of these segments.

There are several other industry related organizations, such as Forbes and AAA which provide Consumer Ratings for individual hotels … another form of classifying a property. Forbes has traditionally awarded one to five “Stars” and AAA, one to five “Diamond” ratings. Additionally, many social media applications like Trip Advisor offer hotel property ratings to consumers.

Chain Scale: Smith Travel Research (STR) is an organization that provides the lodging industry with global data benchmarking, analytics and marketplace insights. STR classifies the lodging industry into six chain scale segments according to their respective brand Average Daily Rate (ADR). The six segments are defined as Luxury ; Upper Upscale ; Upscale ; Mid-Scale with F&B ( Upper Mid-Scale ); Mid-Scale without F&B ( Mid-Scale ) and Economy . Through STR’s 30—plus years of service to the hospitality industry—they have developed vital benchmarking performance solutions, established market trend transparency and provided data used by the investment community to support hotel development projects. Their core product, the STAR report, provides hotel owners and operators with comparative performance data between their property and a defined set of market competitors and allows you to follow trends in hotel occupancy, average daily rate (ADR) and revenue per available room (RevPar). Developers, investors, industry analysts, hotel brands and management companies all utilize STR data when determine what type of hotel to build and what location would provide maximum opportunity for success.

The type of ownership, brand affiliation and management are also very important variables in the classification of hotels. Owners may manage their own hotels independently but in today’s competitive environment, they would likely sign a Franchise Agreement with a nationally recognized brand as well as a Management Contract with a hotel management company to manage the property. A hotel chain such as Marriott, Hilton, Hyatt or IHG (Intercontinental Hotel Group) is comprised of multiple brands: Marriott, following their recent merger with Starwood currently has 30 different hotel brands, with each name representing a different level of price, service or targeted market segments.

Branding Decision

Selecting a brand affiliation is one of the most significant decisions hotel owners must make. [10] The brand affiliation selected will largely determine the cost of hotel development or conversion of an existing property to meet the standards of the new brand. The affiliation will also determine a number of things about the ongoing operation including the level of services and amenities offered, cost of operation, marketing opportunities or restrictions, and the competitive position in the marketplace. For these reasons, owners typically consider several branding options before choosing to operate independently or to adopt a brand affiliation.

Franchise Agreements

Another managerial and ownership structure is franchising. A hotel franchise enables individuals or investment companies (the franchisee) to build or purchase a hotel and then buy or lease a brand name to become part of a chain of hotels using the franchisor’s hotel brand, image, loyalty program, goodwill, procedures, cost controls, marketing, and reservations systems. [11]

A franchisee becomes part of a network of properties that use a central reservations system with access to electronic distribution channels, regional and national marketing programs, central purchasing, revenue management support, and brand operating standards. A franchisee also receives training, support, and advice from the franchisor and must adhere to regular inspections, audits, and reporting requirements.

Selecting a franchise structure may reduce investment risk by enabling the franchisee to associate with an established hotel company. Franchise fees can be substantial, and a franchisee must be willing to adhere to the contractual obligations with the franchisor. [12] Franchise fees typically include an initial fee paid with the franchise application and continuing fees paid during the term of the agreement. These fees are usually a percentage of revenue but can be set at a fixed fee. The total percentage of sales ranges significantly for hotels from 3.3⁠–14.7 percent with a median of 11.8 percent. [13]

Management Contracts

It is common for ownership to utilize a management contract , which is a service offered by a management company to manage a hotel or resort for its owners. Owners have two main options for the structure of a management contract. One is to enter into a management agreement with an independent third-party hotel management company to manage the hotel. There are hundreds of these companies, but some of the large organizations include Aimbridge, Benchmark Hospitality, Crescent Hotels, Interstate Hotels, and White Lodging. A slightly different option is for owners to select a single company to provide both the brand and the expertise to manage the property. Marriott, Hilton, and Hyatt, are companies that provide this second option to owners.

Food and Beverage Services

The food and beverage sector is commonly known to industry professionals by its initials F&B. The F&B sector grew from simple origins to meet the basic needs for food and beverage services to increasing demand for unique experiences and broader options. As the interests of the public became more diverse, so too did the offerings of the F&B sector. The increasing awareness and demand for organic, sustainable, local or craft options as well as special dietary needs in food and beverage continue to challenge this industry. In addition, in order to better attract and serve a diverse array of diners, the F&B industry now consists of a variety of segments. The following is a discussion of each.

Quick-Service Restaurants

Formerly known as fast-food restaurants, examples of  quick-service restaurants , or QSRs, include Chick-fil-A, Subway, and Pizza Hut. This prominent portion of the food sector generally caters to both residents and visitors, and it is represented in areas that are conveniently accessed by both. Brands, chains, and franchises dominate the QSR landscape. While the sector has made steps to move away from the traditional “fast-food” image and style of service, it is still dominated by both fast food and food fast; in other words, food that is purchased and prepared quickly, and generally consumed quickly as well.

Fast-Casual Restaurants

Fast-Casual restaurants focus on higher quality ingredients than QSR’s and provide made-to-order food in an environment that does not include table service. Customers usually queue and order at a counter. The seating area is more upscale and comfortable. Examples would include Chipotle Mexican Grill, Panera and Jason’s Deli.

Full-Service Restaurants

Full-service restaurants  are perhaps the most fluid of the F&B operation types, adjusting and changing to the demands of the marketplace. Consumer expectations are higher here than with QSRs. [14] The menus offered are varied, but in general reflect the image of the restaurant or consumer’s desired experience. Major segments include fine dining, family/casual, ethnic, and upscale casual. Fine dining restaurants are characterized by highly trained chefs preparing complex food items, exquisitely presented. Meals are brought to the table by experienced servers with sound food and beverage knowledge in an upscale atmosphere with table linens, fine china, crystal stemware, and silver-plate cutlery. The table is often embellished with fresh flowers and candles. In these businesses, the average check, which is the total sales divided by number of guests served, is quite high (often reviewed with the cost symbols of three or four dollar signs: $$$ or $$$$.) Examples include the Inn at Little Washington, Ruth’s Chris Steakhouse and Capitol Grille.

Casual restaurants serve moderately-priced to upscale food in a more casual atmosphere. Casual dining comprises a market segment between fast casual establishments and fine dining restaurants. Casual dining restaurants often have a full bar with separate bar staff, a larger beer menu and a limited wine menu. This segment is full of chains such as Chili’s, Outback, Red Robin and Cracker Barrel as well as many independent restaurants in regional or local markets.

Family restaurants  offer affordable menu items that span a variety of customer tastes. They also have the operational flexibility in menu and restaurant layout to welcome large groups of diners. An analysis of menus in family/casual restaurants reveals a high degree of operational techniques such as menu item cross-utilization, where a few key ingredients are repurposed in several ways. Both chain and independent restaurant operators flourish in this sector. Examples of chains in this category would be Golden Corral, Cici’s Pizza and Ponderosa Steakhouse.

Ethnic restaurants  typically reflect the owner’s cultural identity, Vietnamese, Cuban, Thai, etc. The growth and changing nature of this sector reflects the acceptance of various ethnic foods within our communities. Ethnic restaurants generally evolve along two routes: toward remaining authentic to the cuisine of the country of origin or toward larger market acceptance through modifying menu items. [15] Examples would be P.F. Chang’s, Tara Thai or Pei Wei.

Bars, Wineries, and Craft Distilling

The beverage industry continues to evolve as well with a strong focus on local craft beers, wines, cider and distilling. Wineries exist in almost every state, with over 250 in Virginia as of 2015. [16] Wine, bourbon, cider trails and brew pub crawls, etc. are used to generate awareness and create experiences for customers. Wineries often use event space or festivals to take advantage of the beauty of the winery and supplement their revenues.

Institutional Food Service

Institutional f ood s ervice is large scale and often connected to governmental (National Parks) or corporate level organizations. Often run under a predetermined contract, the institutional F&B sector includes:

• Educational institutions
• Prisons and other detention facilities
• Corporate staff cafeterias
• National Park restaurants and concessions
• Cruise ships
• Airports and other transportation terminals and operations

Examples of companies who focus on Institutional Food Service are Compass, Sodexho, Aramark.

Accommodation Food Service

This sector includes hotel restaurants and bars, room service, and self-serve dining operations (such as a breakfast room).  Hotel restaurants are usually open to the public and reliant on this public patronage in addition to business from hotel guests. Collaborations between hotel and restaurant chains have seen reliable pairings such as the combination of Shula’s Steakhouse and Marriott Hotels.

Restaurant Industry Profitability and Cost Control

According to the National Restaurant Association, QSRs have the highest pre-tax profit margin at 6.3 percent, while full-service restaurants have a margin of 4.7 percent. There will be significant variances from these percentages at individual locations, even within the same brand. [17]

A number of costs influence the profitability of an F&B operation. Some of the key operating expenses (as a percentage of revenue) are detailed in Figure 16.16, above, where food cost and salaries & wages are the two major expenses, each accounting for approximately a third of the total. Other expenses include rental and leasing of venue, utilities, advertising, and depreciation of assets. These percentages represent averages, and will vary greatly by sector and location.

Cost control and containment is essential for all F&B businesses. Demanding particular attention are the labor, food, and beverage costs, also known as the operator’s primary costs. In addition to these big ticket items, there is the cost of reusable operating supplies such as cutlery, glassware, china, and linen in full-service restaurants.

Recreation can be defined as the pursuit of leisure activities during one’s spare time [19] and can include vastly different activities such as golfing, sport fishing, and rock climbing. Defining recreation as it pertains to tourism, however, is more challenging.

Let’s start by exploring some recreation-based terms that are common in the tourism industry. Outdoor recreation can be defined as “outdoor activities that take place in a natural setting, as opposed to a highly cultivated or managed landscape such as a playing field or golf course.” [20]   This term is typically applied to outdoor activities in which individuals engage close to their community. When these activities are further away, and people must travel some distance to participate in them, they are often described as “adventure tourism”. According to the United Nations World Tourism Organization (UNWTO), adventure tourism is “a trip that includes at least two of the following three elements: physical activity, natural environment, and cultural immersion.” [21]

Ultimately, categorization is based on a combination of several factors, including manner of engagement in the activity (risk exposure, experience requirement, group or solo activity), the distance travelled to access the activity, and the type of environment (proximity to nature, level of challenge involved) in which the activity occurs.

A 2013 adventure tourism market study discovered that people who travel for adventure experiences tend to be well-educated, with 48 percent holding a four-year degree or higher credential. They value natural beauty and rank this factor highest when choosing a destination. The most cited reasons for their travel are “relaxation, exploring new places, time with family, and learning about different cultures.” [22]

Globally, it is estimated that the continents of Europe, North America, and South America account for 70 percent of adventure tourism, or US$263 billion in adventure travel spending. [23]

Entertainment

Entertainment is a very broad category which overlaps with many of the areas discussed elsewhere in this chapter, like hotels and accommodation. Two major types of entertainment that we’ll discuss here are gaming and theme parks.

Gaming has grown significantly in the United States and globally. The number of casinos in the United States has been growing since 2010, and in 2013, there were over 500 commercial casinos, as shown in Figure 16.16. Casinos are found all over the United States in major cities, riverboats, and on Native American lands. However, US casino revenue has been relatively flat, while global gaming revenues have been on the increase, largely due to Asian market growth. Most casinos involve other facets of the Hospitality industry such as lodging, F&B, golf, entertainment, spas, etc., but they also have the added challenges of casino operations.

Theme Parks

Theme parks have a long history dating back to the 1500’s in Europe, and have evolved ever since. Today, it is hard not to compare any amusement park destination to Disneyland and Disney World. Opened in 1955 in sunny California, Disneyland set the standard for theme parks. Theme parks outside of California and Florida are often highly seasonable operations challenged with significant staffing and training requirements each year.

Convention and Event Management

A convention is a large meeting of people with similar interests who meet for a period of at least a few days to discuss their field. An  event  is a gathering at a given place and time, usually of some importance, often celebrating or commemorating a special occasion.

Both conventions and events can be extremely complex projects, which is why, over time, the role of meeting planners has taken on greater importance. The development of education, training programs, and professional designations such as CMPs (Certified Meeting Planners), CSEP (Certified Special Events Professional), and CMM (Certificate in Meeting Management) has led to increased credibility in this business and demonstrates the importance of the sector to the economy.

Meeting planners may be independent contractors hired to facilitate the planning process, work directly for the company full time to coordinate their meeting, or work for hotels, conference centers and event venues directly.

• The various tasks involved in meeting and event planning include:
• Conceptualizing/theming
• Site inspection & selection
• Logistics and planning
• Human resource management
• Marketing and public relations
• Budgeting and financial management
• Sponsorship procurement
• Management and evaluation

Event Categories

Mega-events.

A m ega-event is a large scale, highly prestigious event such as the Olympic Games, the FIFA World Cup, or a global economic summit. These events typically gain tremendous media coverage and have major economic impacts on the host location, both positive and negative. High levels of tourism (1 million visitors) associated with a mega-event brings revenue, but the revenue may be outweighed by substantial capital and social costs incurred by the host. The events are often awarded to host destinations through a bidding process and gain tremendous media coverage.

Special Events

A special event is a one-time or infrequent specific ritual, presentation, performance, or celebration. Special events are planned and created to mark a special occasion, such as a presidential inauguration or the Queen of England’s 90 th birthday. Like mega-events, there may be significant media coverage and economic impact for the host city or destination.

Hallmark Events

A hallmark event is a unique event that is often identified with the location where it is held, like Carnival in Rio de Janeiro or Oktoberfest in Munich. Hallmark events contribute significant economic benefits and even can create a competitive advantage for the host city or destination that attracts tourists.

A festival is a themed public celebration that conveys, through a kaleidoscope of activities, certain meaning to participants and spectators. Festivals are often celebrations of community or culture and feature music, dance, or dramatic performances. Examples include Lollapalooza, the Cannes Film Festival, and Junkanoo in the Bahamas.

Local Community Events

A local community event is generated by and for locals; although it may attract tourists, its main audience is the local community. The community may experience measurable economic impacts, as might happen at The Steppin’ Out Street Fair in Blacksburg (think hotel stays and eating out). Fundraisers and community picnics are also examples in this category.

Meetings and Conventions

The tourism industry also has a long history of creating, hosting, and promoting meetings and conventions that draw business travelers. In fact, Convention and Visitor Bureau’s (CVB’s) work hard to attract these meetings and conventions to their city to drive economic benefit for hotels, restaurants, entertainment venues, etc.

There are several types of such events

Conventions  generally have very large attendance, and are held on a regular schedule but in different locations. They also often require a bidding process.  Political conventions are one such example.

Association M eetings or C onferences are held regionally and nationally for hundreds of associations or events focused on specific themes. Examples would be the National Restaurant Association Annual Convention, ComicCon, or the National Auto Show.

Corporate M eetings will vary significantly in size and purpose and include regional or national sales meetings, shareholder meetings, training sessions, or celebrations. The location will vary depending on the nature of the meeting. They may be held at an airport property, a traditional corporate meeting facility or even an upscale resort.

Trade S hows and T rade F airs  can be stand-alone events, or adjoin a convention or conference.

S eminars , W orkshops , and R etreats are examples of smaller-scale events.

As meeting planners have become more creative, meeting and convention delegates have been more demanding about meeting sites. No longer are hotel meeting rooms and convention centers the only type of location used; non-traditional venues have adapted and become competitive in offering services for meeting planners. These include architectural spaces such as airplane hangars, warehouses, or rooftops and experiential venues such as aquariums, museums, and galleries. [24]

Transportation and travel services are another large element of the tourism industry. This area includes cruise ships, airlines, rail, car rentals, and even ride sharing such as Uber and Lyft. Each of these segments is impacted significantly by fuel costs, safety issues, load factors and government regulation.

If you’ve ever been on a cruise, you are in good company. According to CLIA (Cruise Lines International Association), 23 million passengers were expected to go on a cruise worldwide on 62 member lines in 2015. [25] The industry employs over 900,000 people. [26]

Over 55 percent of the world’s cruise passengers are from North America, and the leading destinations (based on ship deployments), according to CLIA are: [27]

• The Caribbean (36 percent)
• The Mediterranean (20 percent)
• Northern Europe (11 percent)
• Australia/New Zealand (6 percent)
• Alaska (6 percent)
• Asia (5 percent)
• South America (3 percent)

The t ravel services sector is made up of a complex web of relationships between a variety of suppliers, tourism products, destination marketing organizations, tour operators, and travel agents, among many others. Under the North American Industry Classification System (NAICS), the travel services industry group includes “establishments primarily engaged in travel arrangement and reservation services. Examples … are tourist and travel agencies; travel tour operators and wholesale operators; convention and visitors’ bureaus; airline, bus, railroad and steamship ticket offices; sports and theatrical ticket offices; and airline, hotel and restaurant reservation offices.” [28] Tourism services support industry development and the delivery of guest experiences.

Travel Agencies

A travel agency is a business that operates as the intermediary between the travel industry (supplier) and the traveler (purchaser). Part of the role of the travel agency is to market prepackaged travel tours and holidays to potential travelers. The agency can further function as a broker between the traveler and hotels, car rentals, and tour companies. [29] Travel agencies can be small and privately owned or part of a larger entity.

Online Travel Agencies (OTAs)

Online travel agents (OTAs) are companies that aggregate accommodations and transportation options and allow users to choose one or many components of their trip based on price or other incentives. Examples of OTAs include Booking.com, Expedia.com, Hotwire.com, and Kayak.com. OTAs are gaining popularity with the travelling public; in 2012, they reported online sales of almost $100 billion [30] and almost triple that figure, upward of $278 billion, in 2013. [31] Over 40 percent of US travelers booked flights online in 2014. [32]

Tour Operators

A tour operator packages all or most of the components of an offered trip and then sells them to the traveler. These packages can also be sold through retail outlets or travel agencies. [33] Tour operators work closely with hotels, transportation providers, and attractions in order to purchase large volumes of each component and package these at a better rate than the traveler could by purchasing individually.

Destination Marketing Organizations (DMOs)

Destination marketing organizations (DMOs) include national tourism boards, state/provincial tourism offices, and community convention and visitor bureaus around the world. DMOs promote “the long-term development and marketing of a destination, focusing on convention sales, tourism marketing and service” [34] .

Country Clubs

Country c lubs are another part of the Hospitality industry with a very different service strategy focusing on serving members who will develop relationships with the staff compared to a more transactional service interaction in lodging, restaurants or airlines.

Country clubs do not focus as strongly on profit as they do on maximizing member satisfaction, retention and growth while maintaining an attractive fee structure. Country (or city) clubs, will typically have restaurant and bar operations, catered events and other amenities such as golf, tennis, pool, fitness facilities, etc. Depending on the type of club, family and youth events are important to maintain and grow membership.

Strong customer service, culinary, event management and general management skills are necessary to be successful in clubs.

Chapter Video

As in any other fast-moving industry, the landscape in Hospitality and Tourism is always changing. This video explores 10 of the more important current trends impacting the industry.

(Copyrighted material)

Key Takeaways

• The Tourism industry is the largest industry in the world with significant benefit and costs to a region. The global competition for the tourism dollar is significant within the US and between countries.
• Hotels vary significantly in size, quality, purpose, chain affiliation, and ownership. The complexity of the operation and leadership vary as well.
• Food and Beverage is made up of a wide variety of restaurant types from QSR, Fast Casual, Fine Dining and Ethnic. Institutional food service in business , hospitals, education, parks and concessions are a significant part of the Food and Beverage industry.
• The evolution of tastes and consumer expectations in food and beverage continue to provide opportunity and challenges in the industry for ethnic sustainable, organic, local, craft, and other unique experiences.

Portions of this chapter were adapted from Westcott, Morgan (Ed)  Introduction to Tourism and Hospitality in BC.   CC BY 4.0   https://opentextbc.ca/introtourism . Available for free at: http://open.bccampus.ca

Image Credits: Chapter 16

Figure 16.1: Siebe Warmoeskerken (2018). Unsplash. Public Domain. Retrieved from: https://unsplash.com/photos/mxNrtFzOd-I

Figure 16.2: Data retrieved from: https://wttc.org/Research/Economic-Impact ; World map retrieved from: Max Naylor (2006). “BlankMap-World-Continents-Coloured.” Wikimedia Commons. CC BY-SA 3.0 . Retrieved from: https://commons.wikimedia.org/wiki/File:BlankMap-World-Continents-Coloured.PNG

Figure 16.3: Rodhullandemu (2012). “The Pineapple Hotel, Park Road, Liverpool.” CC BY-SA 3.0 . Retrieved from: https://commons.wikimedia.org/wiki/File:Pineapple,_Park_Road,_Liverpool.jpg

Figure 16.6: Stephen J. Skripak. “Example of a Hotel Market Segmentation by STR’s Chain Scale.” CC BY 4.0 .

Figure 16.7: Christina Hsu (2009). “San Diego City and Bay at Night.” Flickr. CC BY-NC-SA 2.0 . Retrieved from: https://flic.kr/p/6KZ5Cv

Figure 16.8: Anastasia Cortes (2016). “The Inn at Virginia Tech.” Public Domain. Provided by the author.

Figure 16.9: Dale Cruse (2014). “New Zealand langoustines at Troquet.” Flickr. CC BY-NC-SA 2.0 . Retrieved from: https://www.flickr.com/photos/dalecruse/8551895022/

Figure 16.10: Imzadi1979 (2012). “An Axample of a Typical American Logo Sign.” Wikipedia. Public Domain. Retrieved from: https://en.wikipedia.org/wiki/Logo_sign#/media/File:Logo_Sign.svg

Figure 16.11: Mike Mozart (2014). “Panera Bread.” Wikimedia Commons. CC BY-SA 2.0 . Retrieved from: https://commons.wikimedia.org/wiki/File:Panera_Bread_(13883443466).jpg

Figure 16.12: Michael Rys. “Le Procope.” Wikimedia Commons. CC BY-NC-SA 2.0 . Retrieved from: https://commons.wikimedia.org/wiki/File:Inside_Le_Procope.jpg#mw-jump-to-license

Figure 16.13: Stephen J. Skripak. “The Restaurant Industry Career Path.” CC BY 4.0 .

Figure 16.14: Table adapted from National Restaurant Association (2014). 2013 -2014 Restaurant Operations Report .

Figure 16.15: JohnSM (2013). “Rafting in Turkey.” Pixabay. Public domain. Retrieved from: https://pixabay.com/en/raftingturkey-travel-1125213/

Figure 16.16: UNLV Center for Gaming Research. “US and Global Casino Revenues (2005-2019).” (2005-2015) Data Retrieved from: https://gaming.unlv.edu/reports/national_annual_revenues.pdf ; (2016) Data Retrieved from: https://web.archive.org/web/20170301070205/http://gaming.unlv.edu/reports/national_monthly.pdf ; 2017 Data Retrieved from: https://www.americangaming.org/resources/state-of-the-states-2018-the-aga-survey-of-the-commercial-casino-industry/ ; 2018 Data Retrieved from: https://web.archive.org/web/20190201140714/https://gaming.unlv.edu/reports/national_monthly.pdf ; 2019 Data Retrieved from: https://abcnews.go.com/Entertainment/wireStory/us-commercial-casinos-won-436-billion-2019-37-71069042; Global Revenue Data Retrieved from: https://www.statista.com/statistics/271577/global-casino-gaming-market-revenue/ ; Number of Commercial Casinos Data Retrieved from: https://www.statista.com/statistics/187972/number-of-us-commercial-casinos-since-2005/

Figure 16.17: Josh Hallett (2009). “The ‘Big Bang’ at Wishes – Magic Kingdom – Walt Disney World.” Flickr. CC BY-NC-SA 2.0 . Retrieved from: https://www.flickr.com/photos/hyku/3830182777

Figure 16.18: Peter23 (2011). “Beijing National Stadium.” Wikimedia Commons. CC BY-SA 3.0 . Retrieved from: https://commons.wikimedia.org/wiki/File:Beijing_national_stadium.jpg

Figure 16.19: Skeeze (2014). “Mardi Gras in New Orleans.” Pixabay. Public domain. Retrieved from: https://pixabay.com/photos/mardi-gras-new-orleans-festival-1176483/

Figure 16.20: Peter Hansen (2017). “Cruise Ship Photo.” Unsplash. Public Domain. Retrieved from: https://unsplash.com/photos/MeGmdPNe36w

Figure 16.21: Dan Perry (2006). “Riviera Country Club in Pacific Palisades, California.” Wikimedia Commons. CC BY-NC-SA 2.0 . Retrieved from: https://commons.wikimedia.org/wiki/File:Riviera_Country_Club,_Golf_Course_in_Pacific_Palisades,_California_(168828797).jpg

Video Credits: Chapter 16

Sisyanti, Ling Ling, Wasim Amsal, Ella Qiu, and Rebecca Catherine Stephany (2015, February 6). “10 trends in Hospitality and Tourism Industry.” YouTube. Retrieved from: https://www.youtube.com/watch?v=SJ8Momwv7Qk 

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•   C. Crandell, K. Dickinson, and G. I. Kanter (2004). "Negotiating the hotel management contract" In Hotel Asset Management: Principles & Practices . East Lansing, MI: University of Denver and American Hotel & Lodging Educational Institute. ↵
• S. Rushmore (2005). “What Does a Hotel Franchise Cost?” Canadian Lodging Outlook. Retrieved from: www.hotel-online.com/News/PR2005_4th/Oct05_FranchiseCost.html ↵
• Ibid.; N. Migdal (n.d.). “Franchise Agreements vs. Management Agreements: Which One Do I Choose?” Hotel Business Review. Retrieved from: hotelexecutive.com/business_review/2101/test-franchise-agreements-vs-management-agreements-which-one-do-i-choose ↵
• Stephen Rushmore Jr., Erin S. Bagley (2014). “2014 United States Hotel Franchise Fee Guide.” HVS. Retrieved from: http://www.hvs.com/article/7097/2014-united-states-hotel-franchise-fee-guide/ ↵
• H. G. Parsa, K. R. Lord, S. Putrevu, and J. Kreeger (2015). “Corporate Social and Environmental Responsibility in Services; Will Consumers Pay for It?” Journal of Retailing and Consumer Services. Vol. 22. pp. 250-260. ↵
• A. H. Mak, M. Lumbers, A. Eves, and R. C. Change (2012). “Factors Influencing Tourist Food Consumption.” International Journal of Hospitality Management. Vol. 31. No. 3. pp. 928-936. ↵
• Virginia Wine Association (2016). “Virginia Wineries.” Virginia Wines. Retrieved from: https://www.virginiawine.org/wineries/ ↵
• American Restaurant Association and Deloitte Development LLC (2013). 2013-2014 Restaurant Operations Report . Washington, D.C.: National Restaurant Association. p. 7. ↵
• Table adapted from National Restaurant Association (2014). 2013-2014 Restaurant Operations Report . Washington, D.C.: National Restaurant Association. ↵
• J. Tribe (2011). The Economics of Recreation, Leisure, and Tourism , 4th ed. Oxford, England: Elsevier. ↵
• Tourism BC (2013). “2009/2010 Outdoor Recreation Study.” Destination British Columbia. Retrieved from: http://www.destinationbc.ca/getattachment/Research/Research-by-Activity/All-Research-by-Activity/Outdoor-Recreation-Study-2009-2010,-January-2013/Outdoor-Recreation-for-Distribution-14Jan13-FINAL-DRAFT-(2).pdf.aspx ↵
• United Nations World Tourism Organization (2014). Global Report on Adventure Tourism . UNWTO and the Adventure Tourism Trade Association. p. 12. Retrieved from: http://cf.cdn.unwto.org/sites/all/files/pdf/final_1global_report_on_adventure_tourism.pdf ↵
• Ibid., p. 15. ↵
• George Washington University (2013). “Adventure Tourism Market Study 2013.” The Adventure Travel Trade Association. p. 2. Retrieved from: http://files.adventuretravel.biz/docs/research/adventure-tourism-market-study-2013-web.pdf ↵
• K. Colston (2014, April 24). "Non-Traditional Event Venues – Endless Entertainment." Retrieved from: http://helloendless.com/non-traditional-event-venues/ ↵
• CLIA (2016). CLIA 2015 Annual Report: One Voice: Advancing Our Industry Together . Cruise Lines International Association. p. 10. Retrieved from: http://www.cruising.org/docs/default-source/market-research/clia_2015_annualreport_web.pdf?sfvrsn=0 ↵
• Ibid. ↵
• CLIA (2015). CLIA 2015 Cruise Industry Outlook: Cruising to New Horizons and Offering Travelers More . Cruise Lines International Association. p. 28. Retrieved from: http://www.cruising.org/docs/default-source/research/2015-cruise-industry-outlook.pdf ↵
• Government of Canada (2014). “NAICS 2007: 5615 Travel Arrangement and Reservation Services.” Statistics Canada. Retrieved from: http://stds.statcan.gc.ca/naics-scian/2007/cs-rc-eng.asp?criteria=5615 ↵
• C. Goeldner and B. Ritchie (2003). Tourism: Principles, Practices, Philosophies , 9th ed. Hoboken, New Jersey: John Wiley & Sons, Inc. ↵
• R. Carey, K. Kang, and M. Zea (2012). "The Trouble With Travel Distribution." McKinsey & Company. Retrieved from: www.mckinsey.com/insights/travel_transportation/the_trouble_with_travel_distribution ↵
• The Economist (2014). “Sun, Sea and Surfing: The Market for Booking Travel Online Is Rapidly Consolidating.” Economist. Retrieved from http://www.economist.com/news/business/21604598-market-booking-travel-online-rapidly-consolidating-sun-sea-and-surfing ↵
• The Trefis Team (2015). “An Update on the Online Travel Agencies.” Forbes. Retrieved from: http://www.forbes.com/sites/greatspeculations/2015/09/30/an-update-on-the-online-travel-agencies/#60c1ed4d3e0b ↵
• The Destination Marketing Association International (2014). “The value of DMOs.” Retrieved from: http://www.destinationmarketing.org/value-dmos ↵

Chapter 16 Hospitality and Tourism Copyright © 2020 by Stephen J. Skripak and Ron Poff is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

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Tourism – Definition, Types & Forms, History & Importance of Tourism

Tourism is one of the world’s fastest-growing industries and a major foreign exchange and employment generation for many countries. It is one of the most remarkable economic and social phenomena.

The word ‘tour’ is derived from the Latin word tornus, meaning ‘a tool for making a circle.’ Tourism may be defined as the movement of people from their usual place of residence to another place ( with the intention to return) for a minimum period of twenty-four hours to a maximum of six months for the sole purpose of leisure and pleasure.

According to WTO (1993), ” Tourism encompasses the activities of persons traveling and staying in places outside their usual environment for not more than one consecutive year for leisure, business, and other purposes.”

The Rome conference on tourism in 1963 defined tourism as ‘ a visit to a country other than one’s own or where one usually resides and works. This definition, however, did not take into account domestic tourism, which has become a vital money-spinner and job generator for the hospitality industry.

The UNWTO defines tourists as ‘ people who travel to and stay in place outside their usual environment for not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited.

According to the Tourism Society of Britain ,” tourism is the temporary short-period movement of people to destination outside the places where they usually live, work; and activities during their stay at these destinations.” This definition includes the movement of people for all purposes.

The development of technology and transportation infrastructure, such as jumbos jets, low-cost airlines, and more accessible airports, have made tourism affordable and convenient. There have been changes in lifestyle – for example, now retiree-age people sustain tourism around the year. The sale of tourism products on the internet, besides the aggressive marketing of the tour operators and travel agencies , has also contributed to the growth of tourism.

27 September is celebrated as world tourism every year. This date was chosen as on that day in 1970, the Statutes of UNWTO were adopted. The purpose of this day is to raise awareness of the role of tourism within the international community.

History of Travel and Tourism

Inbound tourism, outbound tourism, domestic tourism, forms of tourism, classification of tourism, nature of tourism, importance of tourism, economic impacts, social impacts, cultural impacts, environmental impact, industries related to tourism, tourism products.

Travel is as old as mankind on earth. At the beginning of his existence, man roamed about the planet’s surface in search of food, shelter, security, and better habitat. However, with time, such movements were transformed into wanderlust.

About five thousand years ago, climate changes, dwindling food and shelter conditions hostile invaders made the people leave their homes to seek refuge elsewhere like the Aryans left their homes in Central Asia due to climate changes. Perhaps, this leads to the development of commerce, trade, and industry.

Religion, education, and cultural movement began during the Hindu and Chinese civilizations. Christian missionaries, Buddhist monks, and others traveled far and wide carrying religious messages and returned with fantastic images and opinions about alien people.

For centuries movement of people continued to grow due to the efficiency of transport and the assistance and safety with which the people could travel. By the end of the 15th century, Italy had become Europe’s intellectual and cultural center. It represented the classical heritage both for the intelligentsia and the aristocracy.

During the 16th century, travel came to be considered an essential part of the education of every young Englishman. Travel thus became a means of self-development and education in its broadest sense. The educational travel was known as the ‘ Grand Tour .’

The industrial revolution brought about significant changes in the pattern and structure of British society. Thus, the economy of Britain was greatly responsible for the beginning of modern tourism. It also created a large and prosperous middle class. Because of remarkable improvement in transportation systems in the latter half of the 18th century and the first quarter of the 19th century, an increasing number of people began to travel for pleasure.

Travel was inspired initially by the need for survival (food, shelter, and security), the desire to expand trade, and the quest to conquer. As the transportation system improved, the curiosity for transforming the vast and virgin world into a close neighborhood created a new industry, i.e., Travel and Tourism .

However, the developments of rails, roads, steamships, automobiles, and airplanes helped to spread technology across the globe. Earlier travel was a privilege only for wealthy people, but with the industrial revolution, the scenario altogether changed. Transportation, as well as accommodation, became affordable to middle and working-class citizens.

Essentially, with the development of jet travel, communication, new technology, tourism, and travel became the world’s largest and fastest-growing industry.

Travel and tourism have recently emerged as a dominant economic force on the global scene, accounting for more than 12% of total world trade and growing at 8 percent annually.

Types of Tourism

Tourism has two types and many forms based on the purpose of visit and alternative forms of tourism. Tourism can be categorized as international and domestic tourism .

Tourism has two types and various forms. Based on the movement of people, tourism is categorized into two kinds. These are the following:

International Tourism

When people visit a foreign country, it is referred to as International Tourism . To travel to a foreign country, one needs a valid passport, visa, health documents, foreign exchange, etc.

International tourism is divided into two types; Inbound Tourism & Outbound Tourism.

This refers to tourists of outside origin entering a particular country. Traveling outside their host/native country to another country is called inbound tourism for the country where they are traveling. For example, when a tourist of Indian origin travels to Japan, it is  Inbound tourism for Japan because foreign tourists come to Japan.

This refers to tourists traveling from the country of their origin to another country. When tourists travel to a foreign region, it is outbound tourism for their own country because they are going outside their country. For example, when a tourist from India travels to Japan, it is outbound tourism for India and Inbound tourism for Japan.

The tourism activity of the people within their own country is known as domestic tourism . Traveling within the same country is easier because it does not require formal travel documents and tedious formalities like compulsory health checks and foreign exchange. A traveler generally does not face many language problems or currency exchange issues in domestic tourism.

Tourism has various forms based on the purpose of the visit and alternative forms. These are further divided into many types according to their nature. Forms of tourism are the following:

Some most basic forms of tourism are the following:

• Adventure Tourism
• Atomic Tourism
• Bicycle Tours
• Beach Tourism
• Cultural Tourism
• Industrial Tourism
• Medical Tourism
• Religious Tourism
• Rural Tourism
• Sex Tourism
• Space Tourism
• Sports Tourism
• Sustainable Tourism
• Virtual Tourism
• War Tourism
• Wildlife Tourism

Tourism can be classified into six distinct categories according to the purpose of travel. These are the following:

1) Recreational : Recreational or leisure tourism takes a person away from the humdrum of everyday life. In this case, people spend their leisure time in the hills, sea beaches, etc.

2) Cultural tourism satisfies cultural and intellectual curiosity and involves visits to ancient monuments, places of historical or religious importance, etc.

3) Sports/Adventure : Trips taken by people with a view to playing golf, skiing and hiking, fall within this category.

4) Health : Under this category, people travel for medical, treatment or visit places where there are curative possibilities, for example, hot springs, spa yoga, etc.

5) Convention Tourism : It is becoming an increasingly important component of travel. People travel within a country or overseas to attend conventions relating to their business, profession, or interest.

6) Incentive Tourism : Holiday trips are offered as incentives by major companies to dealers and salesmen who achieve high targets in sales. This is a new and expanding phenomenon in tourism, These are in lieu of cash incentives or gifts, Today incentive tourism is a 3 billion dollar business in the USA alone.

Tourism as a socio-economic phenomenon comprises the activities and experiences of tourists and visitors away from their home environment and are serviced by the travel and tourism industry and host destination. The sum total of this activity experience and services can be seen as a tourism product.

The tourism system can be described in terms of supply and demand. Tourism planning should strive for a balance between demands and supply. This requires an understanding not only of market characteristics and trends but also of the planning process to meet the market needs.

Often tourists from core generating markets are identified as the demand side; the supply side includes all facilities, programs, attractions, and land uses designed and managed for the visitors. These supply-side factors may be under the control of private enterprises, non-profit organizations, and the government. New and innovative forms of partnerships are also evolving to ensure the sustainable development and management of tourism-related resources.

The supply and demand side can be seen to be linked by flows of resources such as capital, labor, goods, and tourist expenditures into the destination, and flows of marketing, promotion, tourist artifacts, and experiences from the destination back into the tourist generating region.

In addition, some tourist expenditures may leak back into the visitors generating areas through repatriation of profits of foreign tourism investors and payment for improved goods and services provided to tourists at the destination. Transportation provides an important linkage both to and from the destination.

For planning purposes, the major components that comprise the supply side are:

• Various modes of transportation and other tourism-related infrastructure.
• Tourist information.
• Marketing and promotion.
• The community of communities within the visitor’s destination area.
• The political and institutional frameworks for enabling tourism.

The tourism system is both dynamic and complex due to many factors linked to it and because of the existence of many sectors contributing to its success. These factors and sectors are linked to the provision of the tourist experience and the generation of tourism revenue and markets .

The dynamic nature of the tourism system makes it imperative to scan the external and internal environment of the destinations on a regular basis so as to make changes when necessary to ensure a healthy and viable tourism industry.

Thus, it is now an accepted fact that tourism development can no longer work in isolation of the environment and the local communities, nor can it ignore the social and cultural consequences of tourism.

Tourism and hospitality , which are inextricably linked to each other, are among the major revenue-earning enterprises in the world. They happen to be among the top employers too. There has been an upmarket trend in tourism over the last few decades as travel has become quite common. People travel for business, vacation, pleasure, adventure, or even medical treatments.

Tourism constitutes an important industry today. It has opened up new vistas for the play of economic emancipation. It provides a very potent contribution by strengthening and developing the financial resources of a country. Moreover, it is a process in which mutual material and mental benefits occur. Furthermore,

• Tourism fetches foreign exchange in the form of invisible exports, which results in the manifold progress of the nation.
• Tourism generates jobs. These employments are the main contribution of tourism to generating national income. But one should remember that employment in the tourism industry is often seasonal.
• Tourism often leads to the commercialization of art forms and especially handicrafts. Art items with cultural or religious meaning are sought by tourists as souvenirs. As more and more tourists visit a destination, souvenir production has increased, often leading to mass production. This production also generates income.

With several business-related activities associated with tourism, the industry has a tremendous potential to generate employment as well as earn foreign exchange. Many countries, such as Mauritius, Malaysia, Singapore, Fiji, and the Caribbean, whose economies are primarily driven by tourism. Tourism can contribute to the economic growth of a country in the followings ways:

Employment Generation

It creates a large number of jobs among direct services providers (such as hotels , restaurants, travel agencies , tour operators , guide and tour escorts, etc.) and among indirect services providers (such as suppliers to the hotels and restaurants, supplementary accommodation, etc.)

Infrastructure Development

Tourism spurs infrastructure development. In order to become an important commercial or pleasure destination, any location would require all the necessary infrastructure, like good connectivity via rail, road, and air transport , adequate accommodation, restaurants, a well-developed telecommunication network, and, medical facilities, among others.

Foreign Exchange

The people who travel to other countries spend a large amount of money on accommodation, transportation, sightseeing, shopping, etc. Thus, an inbound tourist is an important source of foreign exchange for any country.

The World Travel and Tourism Council (WTTC) predict in 1997 that the twenty-first-century economy would be dominated by three industries: telecommunications, information technology, and tourism. The travel and tourism industry has grown by 500 percent in the last 25 years.

Now withstanding this bright outlook and prospects, the tourism and hospitality industries are very vulnerable to the fluctuations of national economies and happenings in the world, especially terrorist attacks that have at times dealt severe blows to business.

In recent years, there have been a few setbacks in tourism, such as the terrorist siege of the Taj and Oberoi in Mumbai, India (26 November 2008); the attack on the World Trade Centre in the United States of America (11 September 2001); bombing in a hotel on the Indonesian island of Bali (12 October 2002); tsunami in Southeast Asia and South Asia on 26 December 2004, in which thousands of the lives where lost and consequently tourism was hit. Nonetheless, the sector is now getting back to business.

Impacts of Tourism

Tourism is a multi-dimensional activity. The scope of tourism activities is so wide and varied that it cannot be restricted to any particular field of activity. Tourism has ramifications in almost all sectors and is influenced by the performance of each of these sectors directly or indirectly. Tourism in any country can be an apt reflection of the nation’s economic and social endowment apart from its natural wealth.

Tourism has vast potential to bring about changes in the country’s economic, environmental, societal, and cultural edifice. Tourism has two basics: the supply of facilities and the demand for participation. The twin market forces of supply and demand interact to produce tourism patterns. These patterns are associated with economic, social, cultural, environmental, and ecological impacts.

Establishing or developing a tourism industry involves expenditure, gains, costs, and benefits. If these impacts are considered from the outset of planning, strengths and opportunities can be maximized while weaknesses and threats can be minimized.

Each destination will be different in terms of tourism characteristics . The cost and benefits of tourism will vary in each destination and can change over time, depending on tourism and other activities in a destination’s local and regional context.

Tourism activities impact the economy of the country as well as the local economy of the destination.

Economics Benefits

• Tourism generates local employment, directly in the tourism sector and in the support and resource management sectors.
• Tourism stimulates profitable domestic industries, hotels and other lodging facilities, restaurants and food services, transportation systems, handicrafts, and guide services.
• Tourism generates foreign exchange for the country and injects capital and new money into the local economy.
• Tourism helps to diversify the local economy.
• Improved tourism infrastructure.
• Increase tax revenues from tourism.

Economic Costs

• Higher demand created by tourism activity may increase the price of land, housing, and a range of commodities necessary for daily life.
• Demands for health services provision and police service increase during the tourist seasons at the expense of the local tax base.

Tourism also affects the society of the destination in good as well as bad ways. It benefits and costs the local communities.

Social Benefits

• The quality of a community can be enhanced by economic diversification through tourism.
• Recreational and cultural facilities created for tourism can be used by local communities as well as domestic/international visitors.
• Public space may be developed and enhanced through tourism activity.
• Tourism Enhances the local community’s esteem and provides an opportunity for greater understanding and communication among people of diverse backgrounds.

Social Costs

• Rapid tourism growth can result in the inability of local amenities and institutions to meet service demands.
• Without proper planning and management, litter, vandalism, and crime often accompany tourism development.
• Tourism can bring overcrowding and traffic congestion.
• Visitors bring with them material wealth and apparent freedom. The youths of the host community are particularly susceptible to the economic expectations these tourists bring which can result in complete disruption of traditional community ways of life.
• The community structure may change, e.g. community bonds, demographics, and institutions.
• The authenticity of the social and cultural environment can be changed to meet tourism demands.

Tourism activities also affect the culture of the host country. There are many positive and negative cultural impacts of tourism.

Cultural Benefits

• Tourism can enhance local cultural awareness.
• Tourism can generate revenue to help pay for the preservation of archaeological sites, historic buildings, and districts.
• Despite criticism about the alteration of cultures to unacceptable levels, the sharing of cultural knowledge and experience can be beneficial for hosts and guests of tourism destinations and can result in the revival of local traditions and crafts.

Cultural Costs

• Youth in the community begin to emulate the speech and attire of tourists.
• Historic sites can be damaged through tourism development and pressures.
• There can be long-term damage to cultural traditions and the erosion of cultural values, resulting in cultural change beyond a level acceptable to the host destination.

Tourism impacts the environment in positive as well as negative ways. These impacts are following below.

Environmental Benefits

• Parks and nature preserves may be created and ecological preservation supported as a necessity for nature-based tourism.
• Improved waste management can be achieved.
• Increased awareness and concern for the environment can result from nature-based tourism activities and development.

Environmental Costs

• A negative change in the physical integrity of the area.
• Rapid development, over-development, and overcrowding can forever change the physical environment and ecosystems of an area.
• Degradation of parks and preserves.

Over the years, tourism has become a popular global activity. Depending upon the nature and purpose of their travel, tourists, need and demand certain facilities and services. This has given rise to a wide range of commercial activities that have acquired industry proportions. Thus travel and tourism nowadays represent a broad range of related industries.

Hotels are a commercial establishment that provides accommodation, meals, and other guest services. In the travel and tourism industry, the hotel industry plays a very significant role, as all tourists need a place to stay at their destinations, and require many more services and facilities to suit their specific needs and tastes.

Restaurants

Restaurants are retail establishments that serve prepared food and beverages to customers. In the travel and tourism industry, restaurants and other food and beverage outlets are very important as tourists like to experiment with the local cuisines of the places they are visiting.

Retail and Shopping

The retail industry is very important as tourists shop for their day-to-day necessities as well as look for mementos and souvenirs. In recent years, some cities in the world have been promoted as shopping destinations to attract people with a penchant for shopping by offering various products, such as garments, electronic goods, jewelry, and antiques. New York, Paris, London, and Milan in Italy are famous as fashion havens of the world.

Transportation

It is the movement of people and goods from one place to another. A well-developed transport industry, as well as infrastructure, is integral to the success of any travel and tourism enterprise.

Travel Agencies

A travel agency is a retailing business that sells travel-related products and services, particularly package tours, to customers on the behalf of suppliers such as airlines, car rentals, cruise liners, hotels, railways, and sightseeing.

Travel agencies play a very important role as they plan out the itinerary of their clients and make the necessary arrangements for their travel, stay, and sightseeing, besides facilitating their passport, visa, etc.

Tour Operators

A tour operator assembles the various elements of a tour. It typically combines tour and travel components to create a holiday. Tour operators play an important role in the travel and tourism industry.

Tourist Destinations

A tourist attraction is a place of interest for tourists, typically for its inherent or exhibited cultural value, historical significance, nature or building beauty or amusement opportunities. These are the basic fundamentals of the tourism industry.

Cultural Industries

Cultural or creative industries are responsible for the creation, production, and distribution of goods and services that are cultural in nature and usually protected by intellectual property rights. As tourists like to visit places of cultural significance and soak in the culture of the area, the cultural industry is very important to travel and tourism.

Leisure, Recreation, and Sport

Leisure or free time is a period of time spent out of work and essential domestic activity. Recreation or fun is spending time in a manner designed for therapeutic refreshment of the body or mind. While leisure is more like a form of entertainment or rest, recreation requires active participation in a refreshing and diverting manner.

As people in the world’s wealthier regions lead an increasingly sedentary lifestyle, the need for recreation has increased. These play a significant role in the travel and tourism sector.

A tourism/tourist product can be defined as the sum of the physical and psychological satisfaction it provides to tourists, during their ‘traveling and sojourn’ en route at the destinations.

Since the travel and tourism industry is an agglomeration of too many sectors that promote travel-related services. These sectors are referred to as travel vendors and their services and goods are called ‘travel products’. A tourism product includes five main components such as physical plant, services, hospitality, freedom of choice, and a sense of involvement.

Thus, whatever the natural and man-made resources and services brought about the consumption of tourists are called tourism products .

Charecterstatics Of Tourism Products

By now, you must have understood what a tourism product is. Now let us look at some of its characteristics:-

1) Intangible : Tourism is an intangible product means tourism is such a kind of product that can not be touched or seen and there is no transfer of ownership, But the facilities are available for a specified time and for a specified use. For e.g. a room in the hotel is available for a specified time.

2) Psychological : The main motive to purchase a tourism products is to satisfy the psychological need after using the product, by getting an experience while interacting with a new environment. And experiences also motivate others to purchase that product.

3) Highly Perishable : Tourism product is highly perishable in nature means one can not store the product for a long time. Production and consumption take place while a tourist is available. If the product remains unused, the chances are lost i.e. if tourists do not purchase it.

A travel agent or tour operator who sells a tourism product cannot store it. Production can only take place if the customer is actually present. And once consumption begins, it cannot be stopped, interrupted, or modified. If the product remains unused, the chances are lost i.e. if tourists do not visit a particular place, the opportunity at that time is lost. It is due to tourism reason that heavy discount is offered by hotels and transport-generating organizations during the offseason.

4) Composite Product : Tourist product is a combination of different products. It has not a single entity in itself. In the experience of a visit to a particular place, various service providers contribute like transportation The tourist product cannot be provided by a single enterprise, unlike a manufactured product.

The tourist product covers the complete experience of a visit to a particular place. And many providers contribute to the tourism experience. For instance, the airline supplies seats, a hotel provides rooms and restaurants, travel agents make bookings for stay and sightseeing, etc.

5) Unstable Demand : Tourism demand is influenced by seasonal, economic political, and other factors. There are certain times of the year that see greater demand than others. At these times there is a greater strain on services like hotel bookings, employment, the transport system, etc.

What Are the Four Components of Tourism and Hospitality?

By Alice Nichols

Are you interested in pursuing a career in tourism and hospitality? Then, it’s important to understand the four key components that make up this industry.

In this article, we’ll take a closer look at each of these components and how they work together to create memorable experiences for travelers. So, let’s dive right in!

1. Accommodation

One of the most crucial components of tourism and hospitality is accommodation.

This includes hotels, resorts, hostels, apartments, and vacation rentals. Accommodation providers are responsible for providing visitors with a comfortable and safe place to stay during their trip.

Types of Accommodations:

• Hotels: These range from budget-friendly options to luxury resorts with top-notch amenities.
• Hostels: These are typically more affordable than hotels and provide shared accommodations for travelers on a budget.
• Vacation Rentals: These can include apartments, villas, or private homes rented out to travelers for short-term stays.

2. Food and Beverage

The second component of tourism and hospitality is food and beverage.

This includes restaurants, cafes, bars, nightclubs, and other types of eateries. Food and beverage providers aim to provide visitors with delicious meals or snacks throughout their stay.

Types of Food and Beverage Providers:

• Restaurants: These can range from fine dining establishments to casual eateries serving local cuisine.
• Cafes: Typically known for their coffee offerings but also serve small meals or snacks.
• Bars/Nightclubs: These are popular spots for socializing over drinks or dancing the night away.

3. Transportation

The third component of tourism and hospitality is transportation.

This includes airlines, buses, trains, taxis, and rental cars. Transportation providers help visitors get from one place to another during their trip.

Types of Transportation Providers:

• Airlines: These provide air travel to various destinations around the world.
• Buses/Trains: These are popular for short-distance travel and often offer scenic routes.
• Taxis: These are a convenient option for getting around a city without having to navigate public transportation.

4. Activities and Attractions

The fourth component of tourism and hospitality is activities and attractions.

This includes museums, theme parks, tours, outdoor recreation, and more. Activities and attractions providers aim to provide visitors with unique experiences that they’ll remember for years to come.

Types of Activities and Attractions:

• Museums: These offer educational experiences on history, art, science, and more.
• Theme Parks: These are popular for families with children and offer exciting rides and attractions.
• Tours: These can range from walking tours to bus tours that explore a city or region’s history or culture.

Overall, tourism and hospitality is made up of four key components – accommodation, food and beverage, transportation, activities and attractions – that work together seamlessly to provide travelers with memorable experiences. By understanding these components, you can better understand the industry as a whole and make informed decisions about your career path within it!

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Components of Tourism Industry

The tourism sector is a range of businesses and organizations involved in delivering the tourism product. All the elements of tourism are related and interact; in essence, the tourism industry is a system of customers and suppliers who demand and supply tourism products and services. In relation to tourism, very often you will come across terms like tourism products and services. These components of travel and tourism can be broadly divided into six key areas highlighted below.

The tourism sector is a range of businesses and organizations involved in delivering the tourism product. Travel agents and tour operators are mostly found in the traveler-generating region, attractions, and the hospitality industry are found in the destination region, and the transport industry is largely represented in the transit route region. Demand for tourism in the generating region is inherently volatile, seasonal, and irrational. Yet this demand is satisfied by a destination region where supply is fragmented, inflexible, and dominated by fixed investment costs. All the elements of tourism are related and interact; in essence, the tourism industry is a system of customers and suppliers who demand and supply tourism products and services.

Travel & Tourism – Products & Services

The tourist products are both, a physical as well as a psychological construction. They all transform a tourist’s dreams into reality. Risks are higher in tourism services because these services are considered luxuries and often not given the same attention as essential services. Local people often express hostility to tourism because they see it as an expression of Five Star culture, extending the gap between their lifestyle and that of the tourist. For the producer of the service, there are also risks. Travel services are consumed while going to and at the destination. They cannot be tested, seen, sampled, or compared in advance.

In tourism, demand is often irrational and trends also change rapidly. But the building up of services often requires lead time. Once capacity is offered, the hotel and transport service, for example, it often lasts longer than the demand for it. This requires great ingenuity on the part of the producer to ensure that the service remains profitable.

The components of travel and tourism can be broadly divided into six key areas. We will discuss each of these areas in this slide and this will help you understand the players in this industry.

1. Travel Agent & Their Services:

The intermediaries constitute the travel agency, tour operator, and guide services. The constituent which co-relates all the components of tourism is the travel agent/tour operator who has accumulated knowledge, expertise, and contacts with providers of services. He is a useful and invaluable intermediary between the traveler and the suppliers of tourist services i.e. airlines, transport companies, hotels, and auto rental companies. The functions of the travel agency depend upon the scope of activities it is involved in and also the size and the location. The agency has specialized departments each having .to perform different functions such as:

• Providing travel information
• Preparing itineraries
• Liaising with providers of services
• Planning and costing tours
• Providing foreign currency
• Insurance, etc.

A travel agent provides information to the people on various travel destinations advises them of available holiday packages to suit their tastes and budget and chart their travel plan. He would generally sell the travel associated products like currency exchange, car rentals, insurance, etc.

2. Tours & Tour Operator’s Services:

Some of the travel agents are also tour operators who manufacture tourism products. They plan, organize, and sell tours. They make all the necessary arrangements e.g. transport,  accommodation,  sightseeing,  insurance, entertainment, and other allied services, and sell this 'package' for an all-inclusive price. A package tour may be a special interest tour, mountain tour, adventure tour, or a pilgrimage tour. These tours are escorted and include transportation, meals, sightseeing, accommodation, and guide services. The escort or the group leader is responsible for maintaining the schedule of the tour and for looking after all the arrangements.

Tours and their characteristics are closely linked to the motivation of the tourist. The motivation or purpose of a visit is usually a holiday or vacation, including a visit with friends and relations, meetings, and conferences, including other business activities, health, and sports, religion and Culture, or special interests, including study tours, etc. The purpose of the visit determines the nature of the tour in the following ways:

• Are you free to choose your destination?
• Is price/time a constraint?
• Is quality a determining factor? What facilities and services do you require?

Tours can be within national boundaries or in any place in the world. Such a decision will have an impact on the economy of both, the country of origin and the tourist’s destination site. Tours also focus on unique natural or geographical features like the coastline, islands, mountains, health resorts, countryside, etc. At such locations, the provision of tourist services and the pressure of tourists are bound to have impacts on the environment, economy, and local social practices and on the people.

In the case of an independent or tailor-made tour, the visitor buys services individually. This he does either by making reservations in advance, directly or through a travel agent, or on an ad hoc basis during the tour. The latter is called a walk-in arrangement which depends on availability. A package or inclusive tour is an arrangement in which packages are assembled by tour operators who buy the individual elements in advance from the producers and the wholesalers. Because these services are bought in advance in large numbers, the tour operator buys at a special discount price (20% to 30% lower than the market price). He then sells individual and group tours either directly or through travel agents who are performing the retail function. For this travel agents earn a commission (2% to 10%).

Tour operators offer holiday packages which comprise of

• Travel like by rail, road, or air.
• Accommodation like hotels, resorts, apartments, guesthouses
• Travel services like airport pick and drop, sightseeing, excursions, etc.

These tour operators may be the wholesale operators who operate tours only through retail travel agencies or they may be direct sell operators who market their product directly to the public. The purchase of a tour is a speculative investment by the tourist, who anticipates the pleasure the consumption of such a product will result in. Tourist consumption and anticipation are related to services that after the basic necessities and comforts are provided, leisure activities are also organized. However, it has often been said that selling tours are similar to selling dreams. For example, a tour is more than buying a mere collection of services like an aircraft seat, a hotel bed, meals, and the opportunity to see the Taj Mahal. The tourist is buying, temporarily, a strange environment including unique climatic and geographical features and intangible benefits like a bargain, luxury service, hospitality, atmosphere, culture, and heritage.

3. Lodging and Catering Services:

A tourist not only travels but also stays somewhere. And here comes in accommodation. It could be of different types i.e. from cottages or tourist lodges to a houseboat or a five-star hotel.  A tourist has to eat also and here comes the role of catering and food. Restaurants, fast-food joints all play a role in this regard with a different cuisine to offer. Different forms of entertainment are provided as attractions at the destinations.

Accommodation can be in the formal (hotel) sector or the subsidiary sector (guesthouse, campsite, apartment on rent, etc.). Catering can be on a meal plan which includes a variety of options. For example, an American plan including 3 meals, a Modified American plan including breakfast and lunch or dinner, and a European plan including breakfast only.

This component consists of those who provide accommodation to the people in the form of hotels, resorts, apartments, camps, guest houses, etc. The accommodation may be marketed individually or through tour operators in the form of a package. Direct marketing may require huge costs on the advertisement and sell through a tour operator guarantees the occupancy rate throughout a holiday season. These service providers also take care of the catering needs of the people b providing them huge cafeterias, various fast food outlets in house or in the form of a Galleria.

4. Various Kinds of Transport:

You need a mode of transport to travel or to suggest one to your client if you are a travel agent or a tour operator. Further, travel depends on the availability of seats, etc. Today, the travel industry is a highly developed industry with its various branches in the areas of road, rail, air, and water. Transport providers are those operating any major form of transport. They could be airlines, cruise lines, car rentals, and rail companies. A tourist’s choice of transport would depend on the travel budget, destination, time, purpose of the tour, and convenience to the point of destination.

Transport and accommodation are purchased at an inclusive price. This means that the prices of the individual components of the services required by the tourist cannot be determined by the buyer. Transport services can be scheduled (run according to a time-table) or chartered (according to demand). Local transfers and sight-seeing can be organized by coach, taxi, etc. For those who like to do things on their own, the rent-a-car option is also available.

5. Information & Guide Services:

The guide services play a  vital role in tourism as a  tourist feels comfortable when the essence of the culture is explained-especially when it is done in his own language. The tourist information and guidance providers include a number of service providers such as those offering insurance, recreational, communication, and banking services; government agencies; tour guides; industry associations; packaging agents; ticketing agents; and holiday sellers.

6. Tourist Attractions:

This part focuses upon the tourism destination as a fundamental unit of analysis for tourism not only do destinations, their images, and their digital traces attract tourists, motivate the visit and therefore energize the tourism system, but they are also at the sharp end of tourism, at the same time suffering and benefiting from visitation. The richness and variety of destinations is a key driver of the success of tourism and they demonstrate a complex pattern across the world where tourism is attracted to the unique, the exotic, and the vulnerable at the same time, tourism destinations are forever expanding as the pleasure periphery reaches ever more distant and remote locations, including the Polar Regions. They are also increasingly represented through tourists leaving digital traces of their visits and memories via online posts and Facebook becomes the new ‘postcard’.

Destinations have many common features, but a key distinction is between the ‘attractions’, which draw the visit, and the ‘support facilities’, which are essential for tourism but support rather than draw the visit. The principle of attraction is to establish the need for the attraction in a particular location to invite more footfalls. It may be a huge theme park, a museum, a gallery, a heritage building, an educational center, etc. Many countries see the need to have one or more visitor attractions in the area to widen their appeal and attract huge potential tourists.

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Types of Tourists

Wealthy people have always traveled to distant parts of the world, to see great buildings, works of art, learn new languages, and experience new cultures, and to taste different cuisines. There has been an up-trend in tourism over the last few decades and now national or international travel for short breaks is very common. Tourists have a wide range of budgets and tastes, and a wide variety of resorts and hotels have been developed to cater for them.

What is Travel & Tourism

We all travel and have been a tourist, perhaps many times in our life. Tourism and tourist are so common words that they find mention in newspapers and magazines almost on a daily basis. In spite of its popularity, have you ever deliberated what the definition of travel and tourism is? What components constitute the tourism industry? Who qualifies to be called a tourist? Well, this article attempts to explore the words "travel”, “tourism” and "tourist'- both technically as well as conceptually.

Impact of Tourism Industry

How does Tourism Industry impact a country? The impact of the tourism industry can be classified into the social & cultural impact, economic impact, and environmental impact. Social & cultural impact signifies the impact which it creates in terms of social changes. The economic impact can be quantified in terms of monetary benefits and overall economic development of the society. Environmental impact refers to the impact on nature and the surrounding areas.

Challenges in the Tourism Industry

Top challenges confronting tourism are taxation, travel marketing, infrastructure issues, and security and cross border regulations. Too many tourism destinations are not prepared for visitors. Tourists or travelers can at times deem travel marketing to be exaggerated. Another major challenge that the tourism industry faces is the fluctuating rates and cost inflation. New challenges seem to arise quickly impacting the industry as a whole.

Economic Impact of Tourism Industry

The tourism industry has contributed to the economic growth of a country through factors like industrialization, education, advanced technology, a higher number of qualified professionals, opening up of foreign markets, liberal trade policies, and better advertising and strategic marketing. The income generated helps the national balance of payments, earning revenue through direct taxation, as well as from indirect taxes on goods and services purchased by the tourists.

Overview of Hospitality Industry

Hospitality is the act of kindness in welcoming and looking after the basic needs of customers. The hospitality industry is a broad group of businesses that provide services to customers. The industry can be broken down into three basic areas: accommodations, food and beverage, and travel and tourism. Hospitality is actually one facet of the service industry. It primarily involves addressing customer satisfaction and catering to the needs of guests.

Environmental Impact of Tourism Industry

The environment is the surrounding atmosphere or condition for existence. The impact of tourism on the environment is both positive and negative. This article considers the major issue of the consequences of tourism for the environment. This is a complex area as, whilst tourism is dependent upon environmental quality to attract and support visitors, it also can have a detrimental effect upon those very environments – and their climate.

Social & Cultural Impact of Tourism

Tourism may have different effects on the social and cultural aspects of life in a particular region depending on the strengths of the region. The effect can be positive or negative. Tours also focus on unique natural or geographical features like the coastline, islands, mountains, health resorts, countryside, etc. At such locations, the provision of tourist services and the pressure of tourists are bound to have impacts on the environment, economy, and local social practices and on the people.

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6 Major Components of the Tourism and Travel Industry

Tourism , then, is the business of attracting visitors and catering to their needs and expectations. The following is an overview of the major components of the tourism and travel industry.

I. Tourist Destinations:

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(a) Government promotion offices

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(b) Regional promotion offices

(c) Resort areas, convention centers.

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II. Transportation:

(a) Airlines.

(ii) National

(iii) Regional

(iv) Nonscheduled /charter.

(b) Ground Transporter

(i) Rent-a-car

(ii) Motor/coach

(iii) Railroad.

III. Accommodation:

(c) Resorts

(d) Cruise lines.

IV. Tourist Attractions:

(a) Attractions

(b) Theme parks

(c) Museums.

V. Travel Brokers:

(a) Travel agents

(b) Travel wholesalers

(c) Tour and charter operators

(d) Ground operators

(e) Travel incentive companies.

VI. Travel Related Services:

(a) Financial (credit cards, travellers cheques, travel insurance).

(b) Travel publications guide books.

Our world is diverse. It is composed of countries with a variety of cultures and customs, rural areas and urban centers, each with its own distinct flavor, and so on.

The activity we call tourism, with its great economic and social benefits, provides citizens of all countries with an opportunity to explore new places, to meet new people, to learn new things, and, perhaps in the process, learn more about themselves.

Travel is a bridge between people. It makes a valuable contribution to the world’s economy, employs more people than any other industry and affects the lives of all in one way or another.

Today, the terms tourism and travel have become almost interchangeable. However, when we look at the history of transporting people, we see that in the early days travel was a far from a pleasurable activity.

The word “tourism” a relatively new addition to the English language, introduced only in the nineteenth century. It connotes the act of travelling for pleasure, as well as the industry that developed to service that activity.

Tourism also connotes the ability of people to escape from familiar surroundings and everyday routine. It is no wonder, then that the history of tourism is the history of those who broadened the horizons of transportation.

It was those who dreamed and those who dared, including Henry Ford and the Wright brothers, who gave us our present day transportation system which harmoniously links speed, safety and economy.

While travel has been a human passion since the dawn of history, tourism only became possible as technological improvements provided comfortable, safe, and, above all, enjoyable ways to travel.

The modern tourism industry is composed of numerous separate industry segments. Sometimes competing, yet more often providing services supplementary in nature. Each segment of the industry developed as a result of different historical forces.

A study of the tourism industry, its development, current issues, and future opportunities can best be introduced by a closer look at the major historical developments.

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Amadeus’s Travel4Impact Goes Global as Greenwashing Cases Make Headlines

Jesse Chase-Lubitz , Skift

April 26th, 2024 at 9:56 AM EDT

A program newly open to Americans as well as Europeans promises to educate travel company leaders on sustainable practices.

Jesse Chase-Lubitz

Amadeus , the travel technology giant, is offering a program that provides subsidized sustainability training for small and medium enterprises in the tourism industry to the Americas for the first time. 

The Spanish company has run the program Travel4Impact in Spain for Europeans for the last three years. What’s new is the program will now also accept applications from companies in the Americas. Applications close on April 30.

The program taps into a general trend toward positive-impact travel by offering C-level executives from small and medium companies a fully funded, six-month training and tutoring program taught by professors at IE University, or Universidad Instituto de Empresa, a Spanish business school. The program will offer spots to around 40 companies and start in September 2024.

The program aims to help companies incorporate sustainable practices and digital strategies into their business models and provides a network of professionals and companies making similar efforts.

“People want to travel, but they want to leave a positive impact,” said Poonam Rawat-Hahne, founder and CEO of Fernweh Fair Travel, in a webinar run by Amadeus on Tuesday. Rawat-Hahne added that she saw a niche for travel operators and agents wanting to take social impact into account increase after the pandemic.

“That niche exists,” said Jake Haupert, CEO of the Transformational Travel Council. “It’s at the bedrock of why we travel — those experiences, those opportunities to connect and learn from others are instrumental.” 

Greenwashing Cases

In recent months, greenwashing cases in the travel industry have made headlines. A Dutch court found the airline KLM had put out a misleading advertising campaign that hyped up the company’s environmental image. 

Booking.com ended its “Travel Sustainable” program, highlighting sustainable properties, in March after the Netherlands Authority for Consumers and Markets said the program “was a possibly misleading sustainability claim.”

“This is a really positive sign of our industry,” says Haupert of these cases. “That these things are happening now. People are going to be thinking a little bit differently before they go to market and make certain claims.”

The Amadeus-backed course changes each year based on the needs of the participants. In 2023, the syllabus addressed the implications of emerging technologies for the industry and specific companies and how to apply circular economic principles.

Following the completion of the course, participants can continue attending future sessions on topics like artificial intelligence and net zero policies.

The program doesn’t appear to lead companies to achieving any specific certifications schemes.

“Our objective at Travel4Impact is to amplify the impact of small businesses by promoting a purpose-driven innovation ecosystem,” an Amadeus spokesperson said.

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Photo credit: Madrid headquarters of travel tech firm Amadeus. Source: Amadeus.

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460 Years Ago, Shakespeare Was Born Here. Or Somewhere.

Every year, millions flock to Stratford-upon-Avon, England, to visit the house known as Shakespeare’s Birthplace. But was he really born there? A whole industry depends on it.

By Elizabeth Winkler

Sometime in the late 18th century, a sign appeared outside a shambly butcher’s hut in the English town of Stratford-upon-Avon: “The Immortal Shakspeare was born in this house,” it announced, using a then common spelling of his name. Devotees began making pilgrimages — dropping to their knees, weeping, singing odes: “Untouched and sacred be thy shrine, Avonian Willy, bard Divine!”

A tradesman grew rich selling carvings from a local mulberry tree, like pieces of the true cross. Some skeptics suspected that the sign was part of a scheme to bring visitors to Stratford; others wondered if it had been hung by the property’s occupant. A local antiquarian criticized the whole scene as “a design to extort pecuniary gratuities from the credulous and unwary.”

Pilgrims flocked to the house, and it became a site so hallowed that one visitor warned that the veneration of Shakespeare threatened to eclipse that of God:

Yet steals a sigh, as reason weighs/ The fame to Shakespeare given,/ That thousands, worshippers of him,/ Forget to worship Heaven!

About 250 years after its break from the Catholic Church, England had its own Bethlehem and manger.

The problem: No one really knows where Shakespeare was born.

Mock Tudors and magic wands

Stratford-upon-Avon lies two hours northwest of London in the Midlands, more or less the heart of England. Today, it is one of Britain’s most popular tourist destinations, drawing up to three million visitors a year. The Birthplace is its main attraction, followed by the cottage reputed to be the place where Anne Hathaway, Shakespeare’s wife, grew up.

Stratford exudes Elizabethan kitsch, with souvenir shops and half-timbered buildings. ​​In the 19th century, the Victorians tried to make Stratford look more “authentic,” which has left it teeming with mock Tudors.

It’s a town whose economy and identity revolve around Shakespearean fervor, which peaks every year on April 23, the date celebrated as Shakespeare’s birthday. It is also, conveniently, St. George’s Day , honoring the patron saint of England.

On my first visit in June 2021, I passed the Hathaway Tea Rooms and a cafe called the Food of Love, a cutesy name taken from “Twelfth Night” (“If music be the food of love, play on”). Confusingly, there were also several Harry Potter-themed shops. Stratford and Hogwarts, quills and wands, poems and spells . Then again, maybe the conflation was apt: Wasn’t Shakespeare a sort of boy wizard, magically endowed with inexplicable powers?

On Henley Street, I arrived at the Birthplace, a half-timbered house yellowed with age. Today, it looks like a single detached building, but it was originally a row of tenements. John Shakespeare bought one tenement on the street in 1556, though he also bought property on nearby Greenhill Street, which could just as easily have been the site of his son’s birth. He bought the property thought to be the Birthplace in 1575, 11 years after his son was born.

Those who believe in the Birthplace point to a record from 1552 showing that a John Shakespeare was fined for keeping a dung heap somewhere on Henley Street. It doesn’t specify the location, but that dung heap has fueled a theory that he must have been living there at the time of his son’s birth, perhaps as a renter.

Similarly, the claim for the authenticity of Anne Hathaway’s Cottage rests on a record that a John Hathaway leased the 90-acre farm on which the building stood 13 years before Anne was born in about 1556. The cottage may well be linked to the Hathaways, but there is no proof that Anne actually grew up in it, just as there is none that Shakespeare was born in the house on Henley Street.

Together, these traditions have sustained Stratford’s tourist industry, worth about $315 million in 2019, before the pandemic. But they have not convinced many skeptics over the years.

“Stratford permits — indeed encourages — one of the biggest frauds in England to rage unchecked,” the journalist Bernard Levin railed in The Daily Mail in 1965. “I mean those two monumental frauds, ‘Shakespeare’’s Birthplace and Anne Hathaway’s Cottage.”

It didn’t help that hucksters have found ways to make the story profitable. In the early 19th century, a tenant of the Birthplace named Mrs. Hornby ran a lucrative hustle showing and selling Shakespeare’s “relics” to gullible visitors. The relics were eventually exposed in an 1848 article in Bentley’s Miscellany , which observed that four different chairs, each purporting to be “Shakespeare’s chair,” had been sold over the years, each made by a well-known local craftsman.

I entered through the Shakespeare Centre, a strange museum that acts as an antechamber to the Birthplace. There were no books owned by Shakespeare or letters in Shakespeare’s hand, because none are known to exist. Instead, a glass case displayed eight Shakespeare busts dating from 1844 to 2000. Another case featured a Shakespeare beer mug (1933), Shakespeare playing cards (1974) and a Shakespeare action figure made in China (2003).

Inside the Birthplace, I went from room to room with the other visitors. Guides regaled us with tales of Shakespeare’s childhood — how he played and ate and dreamed in these rooms. Of course, his childhood is actually a yawning blank: From his baptism in 1564 to his marriage in 1582, there are no records of him. In one room, a table displayed books, quills and ink, indicating a family of learning — but his parents signed documents with a mark, like many illiterate people in Tudor England.

The other visitors murmured to one another in reverent museum whispers and nodded at the guides. I thought of how, in the late 19th century, a Birthplace custodian named Joseph Skipsey resigned his post after a few months, explaining that “not a single one of the many so-called relics on exhibition could be proved to be Shakspere’s” and that “the Birthplace itself is a matter of grave doubt.”

The power of popular faith

Efforts to preserve the property as the official Birthplace began in 1847, when it was put up for sale. In response to fears that P.T. Barnum was going to buy it and make it part of a show, a committee was formed to “save” the house for the nation, and the group began to solicit donations.

Not everyone was convinced. “The extraordinary sensation caused by the purchase of this shabby sausage-shop deserves a prominent place amongst popular delusions,” declared the 1848 Bentley’s Miscellany article . A writer for another British periodical mocked the gullibility of a nation pouring forth funds to buy a “rubbishing mass of lath and plaster in which the Poet was no more born than was the Man in the Moon himself.”

But the belief had already become an article of faith, strengthened by its own repetition. The Birthplace was a better shrine for the very absence of evidence — for the faith it required of its visitors — the publisher Charles Knight wrote at the time. That same year, the committee secured the Birthplace at auction for 3,000 pounds, worth about $323,000 today .

The “shabby sausage-shop” made an uninspiring temple. So the adjoining premises were demolished, walls moved, floorboards replaced, new doorways and staircases created. Its new stewards transformed it into the large, comfortable home of a prosperous Elizabethan family, leaving the cellar as “the only portion which remains as it was,” as the scholar Sidney Lee wrote in 1901. What emerged was less a Tudor dwelling than a Victorian imagination of one.

The committee became the Shakespeare Birthplace Trust , the group that still runs the site, and maintains its authenticity. “We know that, to the best of our current understanding, the building includes the surviving fabric of a property that is traditionally and intimately associated with Shakespeare and his family,” said a spokesman for the trust.

The trust went on to acquire more properties, including Anne Hathaway’s Cottage, a thatched farmhouse where visitors are invited to “relive Shakespeare’s love story.”

A temple to baby Shakespeare

“This is the room where we believe William Shakespeare was born in April 1564,” read a sign in the Birthroom. Next to the bed stood a cradle laid out with blankets and a tiny pillow, encouraging visitors to imagine the baby genius mewling by his parents’ side. For the Victorians, the Birthroom offered the mystical possibility of contact with the poet. Visitors recorded melodramatic accounts of what they felt on entering the room: They burst into tears. They fell down. They kissed the floor. Those desiring a more extended communion spent the night.

Others were unimpressed. “If I were to allude to Stratford, it would not be in connection with the fact that Shakespeare came into the world there,” wrote the novelist Henry James after visiting. “It would be rather to speak of a delightful old house near the Avon which struck me as the ideal home for a Shakespearean scholar.”

But the fantasy is resilient. In a 2023 PBS documentary, “ Making Shakespeare: The First Folio ,” the scholar Michael Dobson, director of the Shakespeare Institute, stood in the Birthplace, gushing over “the very room in which Shakespeare was born.”

I shuffled around the cradle with the other visitors, unsure of what to do. Were we supposed to genuflect? Kiss it? After an appropriate amount of staring, we moved on.

To exit, I had to pass through the gift shop, where any lingering sense of piety dissipated in a tidal wave of consumerism. Visitors were loading up on Shakespeare T-shirts, breakfast teas and tea towels. Shakespeare rubber ducks and windup toys. Shakespeare Christmas ornaments, baby onesies, tote bags and luxury chocolates. Belief is good business.

When I returned to Stratford last February, little had changed since my first visit. The Shakespeare Centre was now showing modern artists’ interpretations of the poet, including a Surrealist painting of a masked figure that suggested the mystery surrounding him. The trinket stands were still hawking their modern versions of those 18th-century mulberry tree carvings. Faith in the traditions is bound up with desire — the need to believe.

Where was “the Immortal Shakspeare” really born? Stories are usually more seductive than the truth.

Sheelagh McNeill contributed research.

Elizabeth Winkler is a journalist, a critic and the author of “ Shakespeare Was a Woman and Other Heresies: How Doubting the Bard Became the Biggest Taboo in Literature .”

Follow New York Times Travel on Instagram and sign up for our weekly Travel Dispatch newsletter to get expert tips on traveling smarter and inspiration for your next vacation. Dreaming up a future getaway or just armchair traveling? Check out our 52 Places to Go in 2024 .

Open Up Your World

Considering a trip, or just some armchair traveling here are some ideas..

52 Places:  Why do we travel? For food, culture, adventure, natural beauty? Our 2024 list has all those elements, and more .

Mumbai:  Spend 36 hours in this fast-changing Indian city  by exploring ancient caves, catching a concert in a former textile mill and feasting on mangoes.

Kyoto:  The Japanese city’s dry gardens offer spots for quiet contemplation  in an increasingly overtouristed destination.

Iceland:  The country markets itself as a destination to see the northern lights. But they can be elusive, as one writer recently found .

Texas:  Canoeing the Rio Grande near Big Bend National Park can be magical. But as the river dries, it’s getting harder to find where a boat will actually float .