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Business tourism 101: All you need to know

What is business tourism.

• To participate in internal meetings at different office locations
• To meet business partners (clients or suppliers)
• To go to conferences, exhibitions, trade shows, and other local or international business events
• To take part in company retreats or incentive trips

Why is business tourism important?

• Better understand common goals, needs, and challenges
• Work together more efficiently
• Easily share knowledge and ideas
• Achieve important breakthroughs and solve problems faster

See how to save money on business travel

What are the different types of business tourism, traditional business traveling, incentive trips, conference and exhibitions, how has business tourism evolved over the years.

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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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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 

• World Tourism Organization UNWTO (2015). “Why Tourism?” Retrieved from: http://www2.unwto.org/content/why-tourism ↵
• United Nations Statistics Division (2010, December). “Tourism as an Internationally Traded Service and Beyond.” Newsletter of the Interagency Task Force on Statistics of International Trade in Services. No. 6. p. 1. Retrieved from: http://unstats.un.org/unsd/tradeserv/tfsits/newsletter/TFSITS_newsletter_6.pdf ↵
• World Tourism Organization UNWTO (2015). “Exports from International Tourism Rise 4% in 2015.” Retrieved from: http://media.unwto.org/press-release/2016-05-03/exports-international-tourism-rise-4-2015 ↵
• Association of Bhutanese Tour Operators (2010). “UNWTO Tourism Vision 2020 Forecast Released.” Retrieved from: http://www.abto.org.bt/2010/06/unwto-tourism-2020-vision-forecast-released/ ↵
• United Nations Environment Programme (2016). “Negative Socio-Cultural Impacts from Tourism.” Retrieved from: http://www.unep.org/resourceefficiency/Business/SectoralActivities/Tourism/FactsandFiguresaboutTourism/ImpactsofTourism/Socio-CulturalImpacts/NegativeSocio-CulturalImpactsFromTourism/tabid/78781/Default.aspx ↵
• United Nations Environment Programme (2016). “Tourism’s Three Main Impact Areas.” Retrieved from: http://www.unep.org/resourceefficiency/Business/SectoralActivities/Tourism/TheTourismandEnvironmentProgramme/FactsandFiguresaboutTourism/ImpactsofTourism/EnvironmentalImpacts/TourismsThreeMainImpactAreas/tabid/78776/Default.aspx ↵
• Discover Hospitality (2015). “What is Hospitality?” Retrieved from: https://web.archive.org/web/20150814071021/http://discoverhospitality.com.au/what-is-hospitality ↵
• L. P. Coyle (1982). “Pineapple” in World Encyclopedia of Food . New York: Facts on File. p. 517. ↵
• Colonial Williamsburg Foundation (2016). “The Pineapple in Colonial Williamsburg.” Retrieved from: http://www.history.org/almanack/life/christmas/dec_pineapple.cfm ↵
•   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 – an economic and social phenomenon, share this content.

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Why Tourism?

Over the decades, tourism has experienced continued growth and deepening ‎diversification to become one of the fastest growing economic sectors in the world. ‎Modern tourism is closely linked to development and encompasses a growing number ‎of new destinations. These dynamics have turned tourism into a key driver for socio-‎economic progress.‎

Today, the business volume of tourism equals or even surpasses that of oil exports, ‎food products or automobiles. Tourism has become one of the major players in ‎international commerce, and represents at the same time one of the main income ‎sources for many developing countries. This growth goes hand in hand with an ‎increasing diversification and competition among destinations.‎

International tourist arrivals (overnight visitors) grew 4% in January-March 2019 compared to the same period last year, below the 6% average growth of the past two years.

This global spread of tourism in industrialised and developed states has produced ‎economic and employment benefits in many related sectors - from construction to ‎agriculture or telecommunications.‎

The contribution of tourism to economic well-being depends on the quality and the ‎revenues of the tourism offer. UN Tourism assists destinations in their sustainable ‎positioning in ever more complex national and international markets. As the UN agency ‎dedicated to tourism, UN Tourism points out that particularly developing countries stand to ‎benefit from sustainable tourism and acts to help make this a reality.‎

Travel, Tourism & Hospitality

Global tourism industry - statistics & facts

What are the leading global tourism destinations, digitalization of the global tourism industry, how important is sustainable tourism, key insights.

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Total contribution of travel and tourism to GDP worldwide 2019-2033

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Leading global travel markets by travel and tourism contribution to GDP 2019-2022

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Number of international tourist arrivals worldwide from 1950 to 2023 (in millions)

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Number of international tourist arrivals worldwide from 2005 to 2023, by region (in millions)

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Online travel market size worldwide from 2017 to 2023, with a forecast until 2028 (in billion U.S. dollars)

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Number of aggregated downloads of leading online travel agency apps worldwide 2023

Number of aggregated downloads of selected leading online travel agency apps worldwide in 2023 (in millions)

Market cap of leading online travel companies worldwide 2023

Market cap of leading online travel companies worldwide as of September 2023 (in million U.S. dollars)

Estimated EV/Revenue ratio in the online travel market 2024, by segment

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Selected trends

• Premium Statistic Global travelers who believe in the importance of green travel 2023
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Global travelers who believe in the importance of green travel 2023

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Travel and Tourism: What Businesses Need to Know Now

The pandemic has had a significant impact on both business travel and leisure travel. Here’s what businesses need to know about travel beyond COVID-19.

September 13, 2021

Key Takeaways

• Business and leisure travelers are indicating a willingness to begin traveling again.
• The delta variant has slowed growth and created uncertainty around when travel and tourism will return to pre-pandemic levels.
• Businesses must adjust to the 'new normal' of travel to stay competitive and better serve their employees and customers.

COVID-19 hit the travel industry hard. Business travel, one of the industry’s primary sources of revenue, came to an abrupt halt. On the leisure travel side, vacations and special events were put on hold, damaging the tourism sector as well.

While the travel and tourism industries are slowly starting to recover, the emergence of the Delta variant has slowed growth and created uncertainty around when business and leisure travel will return to pre-pandemic levels. Here’s what businesses need to know to make informed decisions about traveling for their employees and customers amid this changing landscape.

Business travel during COVID-19

After a challenging year and a half, there is cause for optimism in the business travel industry, with companies indicating a willingness to return their employees to the road—or air as the case may be. According to a recent report from The Global Business Travel Association (GBTA), over half of travel buyers and procurement professionals reported that their company’s travel spending increased “somewhat” to “a lot.” Additionally, participants reported a slight increase from the previous month in restarting domestic and international travel for business.

Despite the relative safety of air travel, companies are still being cautious. The survey found that only 40% of companies planned to restart domestic trips within the next one to three months, while a mere 18% of companies planned to restart international trips. Their caution is owed to concerns over the presence of COVID-19 variants. Among survey participants, 78% were “concerned” or “very concerned” about the effects of the delta variant, as well as the possibility of further variants, on the safety of business travel.

The economic impact of pandemic travel restrictions

Amid the pandemic, both domestic and international destinations have placed varying restrictions on travel. In addition to public health concerns, logistical factors like required COVID-19 testing and quarantine periods have significantly reduced where and how often people are traveling. Moreover, many airports and other transportation hubs have been operating with fewer staff, limiting both the efficiency of traveling and options for doing so. The reduction in both business travel and leisure travel cost the airline industry more than $100 billion in lost revenue in 2020, and estimates project a further loss of nearly $50 billion this year.

The loss in air travel has also negatively impacted the tourism sector. Reduced demand for travel has similarly reduced demand for hotels, restaurants and food service, local retail, entertainment, and events. In 2020, international tourism and its related sectors saw a loss of $2.4 trillion due to the effects of the pandemic.

Recovery in travel and tourism will largely depend on global vaccine distribution and the suppression of COVID-19 variants. According to the GBTA survey, approximately 1 in 5 participants reported their company required employees to be vaccinated before traveling domestically. With different countries and even states having their own set of restrictions and vaccination status guidelines, organizations may hold off on business travel until these requirements can be streamlined or more easily understood.

The impact of vaccine inequity on the tourism sector

While most developed countries have seen a successful vaccine rollout, many developing nations are still struggling with limited vaccine access and administration. Depending on the country, vaccination rates range from less than 1% to more than 60%.

As developing countries work to mitigate the spread of COVID-19 without the support of widespread vaccines, they continue to experience greater losses in the tourism sector. This is especially critical, as many less-developed countries are heavily reliant on tourism for jobs and economic growth.

Countries with higher vaccination rates, such as the United States and the United Kingdom, have experienced less severe losses in tourism and are likely to have a more swift recovery. Still, the U.S. tourism industry has taken a hit, with many businesses struggling to find enough workers to keep them open during seasonal tourist peaks.

The long-term outlook for travel and tourism

The “new normal” of a post-pandemic world is expected to have long-term impacts on the travel and tourism industries.

With respect to corporate travel, many businesses have capitalized on new technologies to conduct remote meetings and large-scale conferences. With this, the frequency of business travel is likely to decrease, though it is unlikely to be replaced by virtual meetings altogether.

On the leisure travel side, people will likely continue to explore their own backyards more frequently than pre-pandemic. The summer of 2020 saw an uptick in road trips across America, with people choosing destinations within driving distance and further away from crowded metropolitan cities.

Travelers will continue to use touch-free technology

Contactless technology has seen a rise in recent years, but it has become more widespread than ever amid the pandemic. According to a survey by the U.S. Travel Association , 41% of global transactions are currently carried out through contact-free means, and 74% of Americans plan to continue using touch-free tech even post-pandemic. Apps that allow for contactless check-ins, direct payments, and even mobile hotel keys are expected to increase in popularity over the next several years.

As countries look toward fiscal and public health recovery, business travel and leisure travel are also beginning to recover. However, it is unlikely that things will return to the way they were before COVID-19. Rather, businesses must adjust to the “new normal” of travel to stay competitive and best support their employees and customers.

Traveling during COVID-19? Review the latest CDC guidance for domestic travel and international travel .

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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.

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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 .

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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What is e-tourism and how is it changing travel?

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We live in a digital world nowadays, or an ‘e’ world as some may like to put in. We have concepts such as ‘e-business’, ‘e-commerce’, ‘e-marketing’ and ‘e-service’, so it seems it was only time before the idea of ‘e-tourism’ emerged. But what exactly is e-tourism, how does it work and why is it important? Read on to find out…

What is e-tourism?

Research and development, reservation and bookings, marketing and promotion, the tourist experience, is smart tourism e-tourism, the benefits of e-tourism, the disadvantages of e-tourism, how is e-tourism changing travel, e-tourism- further reading.

E-tourism is all about the introduction of digitalisation into the tourism industry. This manifests itself in many different ways. We see e-tourism before, during and after a holiday or trip itself – and actually there is a lot of e-tourism that goes on behind the scenes, so we don’t actually ‘see’ it at all!

Dimitrious Buhalis is known as an expert in the field of e-tourism and he defines it as the digitization of all processes and value chains in the tourism, travel, hospitality and catering sectors that allow organizations to maximize their efficiency and effectiveness.

This digitalization, over the years, has changed the way that the tourism industry works and in turn has altered the structure of the tourism industry , often for the better- making it more efficient and productive. And this is not unique to the tourism industry by any means, our whole world has been becoming increasingly digitalised for many years now. In fact, we have become so reliant on the digital aspects of our lives that the functioning of the contemporary tourism system and its future seem unthinkable without the technological innovation that we have today!

Examples of e-tourism

E-tourism is ingrained throughout the tourism system, from the booking process right through to the tourist experience and everywhere in between. It would be impossible to discuss every way that technology is used in the tourism industry (ok, well perhaps not impossible, but I would be here a very long time!). Below I have outlined some of the most common ways that that e-tourism occurs.

E-tourism is used to a large extent during the research and development stages of a tourism product or service. There are a wealth of digital resources at the disposal of tourism industry stakeholders , which enables them to collect large amounts of data and research their (potential) customers. In turn, this helps organisations in the travel and tourism industry to better understand their customers and therefore to better satisfy their needs and desires.

Likewise, recent years have seen many options for the tourists themselves to research their travel choices to a greater extent than they have previously been able to. Reading blogs, looking at travel pictures on Instagram, scouring Pinterest… when it comes to heading off on a city break or relaxing beach vacay, tourists often turn to the internet as a source of location inspiration- this is also evidence of e-tourism.

Central reservation systems have come a long way in the past couple of decades. First introduced in the 1960s by airlines, central reservation systems were quickly adopted by hotels and other businesses operating in the travel and tourism industry. Most recently these have been further developed to allow the tourist to play a key role in the booking process by linking their reservation systems to popular online booking platforms such as Expedia or Syscanner as well as in-house developed booking systems.

Nowadays, pretty much everything can be booked online. Tourists don’t need to make a trip into town specifically to visit a travel agent, and sit there while they look through brochures and databases to find a trip that ticks every box for them- tourists can do it for themselves! There is far more freedom and independence now, as consumers are part of the process from the start. Bookings and changes can be made at the tap of a button or the click of a link. This not only makes the process simpler and easier for the tourist, but it also helps the business to operate faster and more efficiently, reducing overhead costs and maximising productivity.

Some years ago the likes of travel agencies and tourist boards would focus their marketing efforts on printed advertising such as posters, brochures and flyers… but those days are long gone now. Whilst there will always be a place for physical advertising of this type, travel and tourism organisations now have a wealth of valuable data at their fingertips that they can use to inform their marketing.

As we live more of our lives online (think shopping, researching, connecting with our friends on social media etc), the organisations that want to sell us their products and/or services are more informed to do so than they have ever been before. Adverts can be targeted to specific customers based on location, age and other relevant demographics. It can also be based around the user’s online activity- yes, if you begin to research ecotourism holidays it is likely that you may begin to be shown adverts about eco lodges in the Gambia or ecotourism in Costa Rica ! Whilst there are certainly some ethical questions about how much of our data is used by organisations for advertising purposes, there is no disputing that the organisations of today have a big foot up in comparison to their counterparts from a decade or two ago!

In addition to this, we have new platforms where marketing can take place. Social media platforms such as Instagram or Facebook allow for both large companies and individuals to promote products, services or places. As I explain in my article about Instatourism , these social media platforms can be powerful tools for the purposes of marketing. And more and more people are working in the field too- many argue that the growth of travel influencers around the world has changed the marketing industry forever!

Technology has also enhanced the travel sector in many ways. More efficient aircraft, trains, cars etc have enabled us to travel further and faster than ever before. They typically create less damage to the environment too, with more environmentally friendly initiatives being researched and implemented such as bio fuels and hybrid models.

Travel is easier for the consumer these days too. No longer do we need to carry around our pocket-sized road maps, or get stressed out when we can’t read directions- all we need nowadays is a 4G connection and a navigation app! There are plenty of other apps that help us travel too, from train apps with timetables to flight comparison sites and more.

There are many ways that e-tourism has helped to enhance the tourist experience and to make the tourism industry more efficient. From having your room service brought to you by a robot, to checking a menu in a restaurant using a QR code, to downloading an app in a theme park that shows queue times for the rides to having an audio programme give you information on your phone as you walk through a museum. E-tourism is everywhere we look!

Is virtual tourism e-tourism?

Virtual tourism is an example of e-tourism in practice. It is essentially a hybrid concept- it combines both the notions of virtual reality and tourism. In essence, virtual tourism facilitates a tourism experience, without actually having to travel anywhere. Virtual tourism takes many different forms and comes in vary degrees of technological capability.

In its simplest form, virtual tourism may comprise of a video of a tourism destination. The ‘tourist’ watches the video, utilising their hearing and sight senses. More sophisticated forms of virtual tourism include being immersed in an environment through use of a headset or simulator. It may involve use of various props, users may be required to wear gloves and there may be additional sensations such as movement (like in a rollercoaster simulator), feeling (for example if the user is sprayed with water ) and smell. You can read a detailed article about the virtual tourism industry here.

Smart tourism and e-tourism are commonly interlinked, however smart tourism is not always an example of e-tourism. Smart tourism is all about tourism that is designed in a ‘smart’ way- the intention is to promote productivity and make the tourism industry efficient. Oftentimes this does require the use of digitalisation, or technology, hence making it a form of e-tourism, but this isn’t always the case 100% of the time. You can read all about the concept of smart tourism here.

Ultimately, e-tourism is a good thing. The use of technology in the tourism industry has helped to make it more efficient, run more smoothly (with less risk of human error) and making it more productive. This generally means that consumers (or tourists) are more satisfied with their tourism experience and that the organisations involved have increased profit margins and lower overheads.

E-tourism has introduced us to a whole new way of thinking and has helped to expose us to invaluable developments in the travel and tourism industry- it has helped to make parts of the industry more environmentally friendly, it has helped to have more effective marketing and product development and it has helped us to embrace new forms of tourism too, such as smart tourism and virtual tourism.

However, as is the case with any form of tourism, there are some negative impacts of e-tourism too. The use of technology sometimes takes away the ‘human’ aspect- customer service from a robot will never replace the smiles and conversations that a real person would bring to the situation. And using technology to a large extent may reduce the number of jobs in the tourism industry too, which can have a negative economic impact on the host community. Furthermore, technology can go wrong- a booking system that is down or a website that doesn’t work properly can cause loss of money and business, for example.

Ultimately, e-tourism is all about making the tourism industry more efficient through the use of technology. As I have outlined in this article, there are many ways that this can be done and the benefits of this can be far reaching. From the perspective of the tourism industry, the digitalisation of travel and tourism can help to enhance business prospects- income, productivity, performance etc. And from the perspective of the tourist it can help to make their tourism experience more enjoyable.

If you have found this article interesting, then I am sure that you will enjoy these too!

• What is smart tourism and why is it so BIG?
• Virtual tourism explained: What, why and where
• What is sustainable tourism and why does it matter?
• What is ecotourism and why is it so important?
• Niche tourism: What, why and where

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• DEFINITIONS

  Vocabulary      

What does Business tourism mean?

Definitions for business tourism busi·ness tourism, this dictionary definitions page includes all the possible meanings, example usage and translations of the word business tourism ., wikipedia rate this definition: 3.3 / 6 votes.

• Business tourism

Business tourism or business travel is a more limited and focused subset of regular tourism. During business tourism (traveling), individuals are still working and being paid, but are doing so away from both their workplace and home.Some definitions of tourism exclude business travel. However, the World Tourism Organization (UNWTO) defines tourists as people "traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes".Primary business tourism activities include meetings, and attending conferences and exhibitions. Despite the term business in business tourism, when individuals from government or non-profit organizations engage in similar activities, this is still categorized as business tourism (travel).

Wikidata Rate this definition: 2.9 / 9 votes

Business tourism or business travel is a more limited and focused subset of regular tourism. During business tourism, individuals are still working and being paid, but they are doing so away from both their workplace and home. Some definitions of tourism tend to exclude business travel. However, the World Tourism Organization defines tourists as people "traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes". Primary business tourism activities include meetings, and attending conferences and exhibitions. Despite the term business in business tourism, when individuals from government or non-profit organizations engage in similar activities, this is still categorized as business tourism.

How to pronounce Business tourism?

Alex US English David US English Mark US English Daniel British Libby British Mia British Karen Australian Hayley Australian Natasha Australian Veena Indian Priya Indian Neerja Indian Zira US English Oliver British Wendy British Fred US English Tessa South African

How to say Business tourism in sign language?

Chaldean Numerology

The numerical value of Business tourism in Chaldean Numerology is: 1

Pythagorean Numerology

The numerical value of Business tourism in Pythagorean Numerology is: 7

Examples of Business tourism in a Sentence

Maurizio Naro :

Milan has turned into a leisure tourism city in the last 10 years exactly to face up to the sharp slump in business tourism .

• ^  Wikipedia https://en.wikipedia.org/wiki/Business_Tourism
• ^  Wikidata https://www.wikidata.org/w/index.php?search=Business tourism

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