tourism component industries

Components of tourism: Structure of the tourism industry

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

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

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

Structure of the tourism industry

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

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

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

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

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

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

Components of tourism: Tourist boards

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Tourist information centres are funded by the local Government.

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

Components of tourism:Transport services

The relationship between transport and tourism is strong.

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

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

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

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

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

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

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

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

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

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

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

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

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

Travel by water is also an important component of tourism.

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

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

Components of tourism: Accommodation services

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

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

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

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

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

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

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

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

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

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

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

Homestays have become an increasingly prominent component of tourism.

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

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

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

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

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

Components of tourism: Conferences and events

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

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

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

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

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

Examples of major conferences and events around the world

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

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

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

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

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

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

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

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

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

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

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

Glastonbury attracts many domestic tourists as well as international tourists.

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

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

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

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

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

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

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

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

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

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

Components of tourism: Attractions

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

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

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

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

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

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

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

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

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

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

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

Components of tourism: Tourism services

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

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

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

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

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

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

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

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

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

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

Ancillary services are another core component of tourism.

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

Here are some examples of ancillary products:

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

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

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

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

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

Tourism: Meaning, Types, Nature, Components & Importance

Meaning of tourism.

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

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

Types Of Tourism

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

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

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

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

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

Nature of Tourism

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

Tourism and service

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

Tourism is economy contributor

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

Tourism products are highly perishable

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

Tourism assists in educating the mass

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

Tourism industry is sustainable

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

Components of Tourism

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

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

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

Attraction can also be classified into two ways: – 

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

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

Accessibility

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

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

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

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

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

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

Accommodation

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

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

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

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

Importance of Tourism

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

Brings in Influx of Wealth

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

Large job opportunities

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

Building infrastructure

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

Source of diverse income

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

Environmental protection

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

Gender equality

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

Preserves heritage

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

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Complete Overview of the 5 Sectors in the Tourism Industry

Overview of the sectors in tourism

The interplay of sectors in tourism, impact of each sector on the tourism industry, challenges and opportunities in each sector.

Would you prefer to listen rather than read?👇🏼🎧

The tourism industry is one of the most dynamic landscapes . That’s primarily because it consists of several unique sectors. Each one of these sectors goes through comprehensive changes and is subject to many factors. 

Nevertheless, understanding these sectors is quite essential! Why? Because it can help you make informed business decisions, identify valuable growth opportunities, future-proof your travel brand, and, ultimately, set it up for success.

That’s because the industry encompassing various segments that work together to create a seamless travel experience. These tourism sectors include transportation, accommodation, food and beverages, recreation and entertainment, and travel services. Let’s dive deeper into each of these sectors to understand their impact and significance.

The tourism vertical is quite extensive. It consists of six sectors, making it one of the most diverse industries. These sectors are transportation, accommodation, food and beverage, travel agencies, and attractions. Let’s take a closer look at the sectors, their sizes, and their economic impact.

Transportation in Tourism

Transportation in tourism is a big sector. It encompasses a wide range of forms of travel and enables tourists to reach their destinations safely and efficiently. The sub-sectors include air travel, land transportation and maritime travel, each playing a vital role in the tourism sectors . Efficient and reliable transportation services are essential for a positive travel experience.

When it comes to inbound tourism, air travel comprises the largest share, 57% . Travelers trying to reach faraway destinations often choose from various travel options. One can actually gauge the momentum of the tourism sector recuperation after the COVID-19 pandemic by looking at air transportation trends. The latest report states that total air traffic is up by 52% compared to 2022 . 

Land transportation for tourists has been increasing in recent years. A recent study reveals that car transportation makes up 77% of all journeys . The reasons that explain this trend are flexibility, price, and independence. 

Maritime travel or cruise tourism is also experiencing steady growth. This subsector is estimated to continue to grow at a CAGR of 10.4% from 2022 to 2031 .

Transportation is one of the pillars of the tourism industry, and as such, it has a tremendous economic impact on the vertical – its efficient functioning is critical for not only attracting tourists to destinations but also enabling them to reach their desired locations . It allows companies to generate revenue through ticket sales. However, by enabling tourists to reach their destinations, it also drives economic activity in hospitality.

Accommodation in Tourism

All the lodging options tourists can choose from comprise the accommodation subsector of the tourism industry. It includes hotels, resorts, hostels, vacation rentals, Airbnb, and more.  

The hotel occupancy rates metric is the best one to keep track of the developments in this subsector simply because there are almost 750,000 hotels and resorts worldwide . In April 2022, hotel occupancy rates were highest in the Americas, reaching 64% . Europe was in second place with the hotel occupancy rates at 63%, followed by the Middle East and Africa at 49% and the Asia Pacific at 48%. 

When it comes to the economic impact, the best metric to track is revenue per available room or RevPAR. The RevPar reached $93.27 in 2022, an 8.1% increase compared to 2019 . The average daily rate is up by 13.6%, which makes $148.83 for the same period. Occupancy rates are still not at the pre-pandemic level, but with only a 4.9% difference, they are getting there. 

The revenue this sector generates has a tremendous impact. The money is used toward creating new jobs, developing infrastructure, and boosting local economies. Local communities and governments also benefit from the taxes and fees collected from accommodation providers. 

Food and Beverage in Tourism

The food and beverage tourism sector is quite diverse and doesn’t just include restaurants and cafes. It also encompasses various dining establishments where tourists can experience local culinary traditions and cuisine.

According to the National Restaurant Association research, the sales in the fine dining segment to travelers and visitors went down by 41% . However, total restaurant industry sales are projected to reach $.1.2 trillion by 2030 , and traveler purchases will significantly contribute to this positive development. The food tourism market is projected to reach $1,796.5 billion by 2027 in size, which is a 16.8% growth given that its size in 2022 is $1,116.7 billion. 

One of the most extensive studies done recently encompassed the data from over 50,000 travelers to conclude that 64% of travelers base their traveling decisions on the food and drink options available at their destination. 

There are two sides to the economic impact of food and beverage in tourism. First, it helps generate more direct revenue, and second, it fosters culinary entrepreneurship and can significantly boost agricultural and food production sectors. It can also help create more job opportunities.

Travel Agencies and Tour Operators 

Travel agencies are travel brands that specialize as intermediaries. They provide tourists with access to accommodation and other tourism options. Travel agencies can also offer various services, such as tour packages, accommodation reservations, and transportation booking . 

Online travel agencies or OTAs are currently dominating this space. In 2022, the online global travel market size reached $475 billion and is projected to reach over one trillion US dollars by 2030. OTAs, including the most significant players such as Booking.com, Trip.com, and Expedia, captured over 40% of the total market . 

While travel agencies continue to generate revenue, it’s important to note that global travel agency revenue is growing at a CAGR of 2.5% . 

Travel agencies, both offline and online, are vital parts of the entire travel ecosystem. They both contribute to the whole sector and facilitate tourism overall. Travel agencies stimulate economic activity through other sectors as they are responsible for actually funneling tourists to destinations. They also help create new jobs, improve travel satisfaction, and ensure repeat business.

Tour operators, the companies that create packages for travel agencies to sell, also make up a sizable sub-sector. The market size of the tour operators industry in the US in 2022 was $8.6 billion . The US market will continue to grow at a CAGR of 17% to reach $30 billion in size by 2023 . Across the ocean, we have Europe, with its tour operator market size projected to reach $74 billion by 2026 , with Germany as the leader in the field with a market size of $24 billion.

Tourism Attractions

Tourism attraction is a place of interest. Generally speaking, tourism attractions’ primary role is to attract tourists to a particular destination. It can be anything from natural wonders and historical sites to museums and cultural landmarks. 

According to the latest data , the most visited attractions are spread across the globe. These include Nagashima Spa Land, Japan; Universal Studio, USA; Palace of Versailles, France; and Bourbon Street, USA.

Theme parks are also among the most popular tourist attractions. In 2022, these parks attracted almost 200 million visitors . The museums are right behind theme parks, with an attendance of 57 million. 

Tourism attractions also have a significant economic impact. They support jobs in the vicinity, boost local economies, and positively impact the overall tourist experience. They are also the number one factor that often drives visitation. 

The most important thing to understand about sectors in the tourism industry is that they are not separated from one another. In fact, the interplay of sectors in tourism is quite elaborate and happens on so many different levels. 

Let’s start with transportation. The affordable, dependable, and reliable means of transportation can facilitate visitation. Transportation is also responsible for the tourist experience. It can improve access to tourism attractions, make tourism agencies more attractive, and drive sales in the accommodation and food and beverage sectors. 

Accommodation in tourism often interplays with travel agencies. It can help improve the brand image of a travel agency by enhancing the stay experience. It can also lead to increased food and beverage sales if the hotel or a resort has its own facilities, such as a restaurant or bar. In return, the food and beverage sector can improve the standing of accommodations and destinations in the eyes of travelers.

Travel agencies interplay with all of the sectors. The services they offer have to live up to the descriptions found on the websites. They can help boost the average daily rates for accommodation providers, increase booking rates at transportation companies, and bring more people to attractions. 

The best way to look for the interplay of sectors in tourism is to closely examine partnerships. The transportation, accommodation, and other various travel brands have recognized the value of the interplay and decided to partner up to reap even more benefits. 

The most common are partnerships between airlines, hotels, and travel agencies. It enables airlines to remain competitive while helping hotels and travel agencies maintain high customer satisfaction and enhanced travel experience.  

The real-world example that comes to mind is Wilderness Safaris’ partnership with Qatar Airways . The big hospitality brand wanted its guests to arrive well-fed & rested, ready to engage in adventures in the great outdoors. Given that Qatar Airways received high marks in the catering and business class areas, it was the perfect pick for Wilderness Safaris.

Another real-world example is AEGAN’s partnership with Booking.com. Here, we have a transportation company and OTA joining forces together to reap unique benefits. AEGAN, an airline brand, wanted its customers to be able to conveniently check hotel availability in real-time, book accommodation at competitive prices, and benefit from friendly cancellation policies. 

To encourage travelers to choose AEGAN services through Booking.com, the company also launched the Frequent Flyer Program and awarded consumers extra miles with every hotel booking using AEGAN transportation services.

As one of the largest industries, the tourism vertical contributes 10% of all jobs or 333 million . All sectors contribute to job creation and the global tourism market size of $2.4 trillion . 

Accommodation and food and beverage sectors have a significant impact on the tourism industry as well. In terms of GDP, these sectors contributed 3.3% , a significant growth, given that the US average is 2.87% .

In raw numbers, it looks like the following. Global accommodation in tourism generates $903 billion . Almost half of it, 49%, comes from the USA sector. Europe, APAC, Middle East, and Africa contribute with their shares of 25%, 22%, 3%, and 2%, respectively. The global hotel and resort industry currently employs approximately 10.5 million people . 

The global travel agency services industry’s revenue has reached $475 in 2023 . Travel agencies in the US employ 402,835 people. Over the last 5 years, the number of people working in the travel agency sector went up by 12%. On a global scale, travel agencies employ approximately 2 million people . 

While every industry and sub-sector is unique, they all share a few things in common. In each one of them, you can find a couple of opportunities and encounter a few challenges. Let’s see what challenges and opportunities there are in each sector. 

Transportation in tourism

Challenges:

• Ever-increasing prices of fuel – to remain profitable, airlines need to manage operational costs, and one of the enormous costs is fuel;
• Becoming green – transportation companies need to reduce carbon emissions and adopt sustainable travel practices, which can be challenging and costly;
• Infrastructure in remote destinations – building roads and developing infrastructure can be pretty challenging in remote destinations with tremendous tourism potential.

Opportunities:

• Using technological advancements – transportation technologies can help improve customer experience and improve operational efficiencies;
• Implementing sustainable practices – becoming eco-friendly can help brands attract environmentally conscious travelers;
• Improving connectivity – with connectivity expansion, transportation brands can help local economies and create new tourism opportunities.

Accommodation in tourism

• Online offer – as more and more competitors join online marketplaces, accommodation providers need to embrace a new paradigm;
• Overtourism – limited accommodation capacity is a massive problem in destinations where over-tourism is a norm;
• Guest safety and security – in some situations and locations, accommodation providers can struggle with ensuring guest safety and security.
• Going digital – embracing cutting-edge technologies can help enhance guest experience and ensure longer and repeat stays;
• Personalized accommodation – offering boutique and experiential lodging can help accommodation providers cater to modern travelers;
• Partnerships – aligning with relevant companies and local brands can help providers attract more travelers.

Food and beverage in tourism

• Quality and safety of food – upholding the highest food quality and safety standards can be challenging;
• Fluctuating demand – seasonal destinations can struggle with handling fluctuating food and beverage demand;
• Shifting dietary preferences – guests may have diverse dietary preferences, which require planning and management.
• Innovation – innovative dishes and fusion cuisines can attract guests who feel more adventurous;
• Farm-to-table – cooperating with local farmers can help bring fresh ingredients to restaurants;
• Focus on local cuisine – bringing local dishes into the spotlight can help attract people interested in authentic cuisine.

Travel agencies

• Harsh competition – travel agencies have to compete against hundreds of online travel booking platforms;
• Tailored services – many travelers look for personalized experiences, which can prove hard to provide if you are a small agency;
• Agility is required – getting ready for a wide range of disruptions is costly and hard to sustain at scale.
• Customization – offering unique packages can help generate more bookings;
• Multi-channel presence – being present across online and offline channels is paramount;
• Focus on a niche market – staying focused on a specific travel niche can help you truly cater to the needs of your target customers.

Tourism attractions

• Preservation – sustainable management of tourism attractions can be challenging; 
• Seasonality – if traction generates the majority of the revenue through seasonal visitors, it can be a problem;
• Infrastructure demand – a growing number of visitors can cause infrastructure strain.
• Collaboration – partnerships can help create a better ecosystem;
• Interpretive guides and interactive displays – interpretive experiences can delight a wide range of visitors;
• Expanding offer – You can offer new activities to make the offer more attractive.

As you can see, the tourism industry landscape is quite comprehensive, with a lot of moving pieces on the board, and the best way to understand the vertical is to take a look at its subsectors .

By exploring these tourism sectors, we gain insights into the various elements that contribute to the industry’s growth and sustainability.

Hopefully, now you understand transportation, accommodation, food and beverage, travel agencies, and tourism attraction sectors better. They are all intertwined, with many interplay activities. While the tourism sector comes with its fair share of challenges, there are also many opportunities. The current stats and projections tell us that all subsectors are prosperous and expected to grow in the foreseeable future. 

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Marc Truyols has a degree in Tourism from the University of the Balearic Islands. Marc has extensive experience in the leisure, travel and tourism industry. His skills in negotiation, hotel management, customer service, sales and hotel management make him a strong business development professional in the travel industry.

Mize is the leading hotel booking optimization solution in the world. With over 170 partners using our fintech products, Mize creates new extra profit for the hotel booking industry using its fully automated proprietary technology and has generated hundreds of millions of dollars in revenue across its suite of products for its partners. Mize was founded in 2016 with its headquarters in Tel Aviv and offices worldwide.

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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.

Detailed statistics

Total contribution of travel and tourism to GDP worldwide 2019-2034

Number of international tourist arrivals worldwide 1950-2023

Global leisure travel spend 2019-2023

Editor’s Picks Current statistics on this topic

Leading global travel markets by travel and tourism contribution to GDP 2019-2023

Travel and tourism employment worldwide 2019-2034

Further recommended statistics

• Basic Statistic Total contribution of travel and tourism to GDP worldwide 2019-2034
• Basic Statistic Travel and tourism: share of global GDP 2019-2034
• Basic Statistic Leading global travel markets by travel and tourism contribution to GDP 2019-2023
• Basic Statistic Global leisure travel spend 2019-2023
• Premium Statistic Global business travel spending 2001-2024
• Premium Statistic Number of international tourist arrivals worldwide 1950-2023
• Basic Statistic Number of international tourist arrivals worldwide 2005-2023, by region
• Basic Statistic Travel and tourism employment worldwide 2019-2034

Total contribution of travel and tourism to gross domestic product (GDP) worldwide in 2019 and 2023, with a forecast for 2024 and 2034 (in trillion U.S. dollars)

Travel and tourism: share of global GDP 2019-2034

Share of travel and tourism's total contribution to GDP worldwide in 2019 and 2023, with a forecast for 2024 and 2034

Total contribution of travel and tourism to GDP in leading travel markets worldwide in 2019 and 2023 (in billion U.S. dollars)

Leisure tourism spending worldwide from 2019 to 2023 (in billion U.S. dollars)

Global business travel spending 2001-2024

Expenditure of business tourists worldwide from 2001 to 2024 (in billion U.S. dollars)

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

Number of international tourist arrivals worldwide 2005-2023, by region

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

Number of travel and tourism jobs worldwide from 2019 to 2023, with a forecast for 2024 and 2034 (in millions)

• Premium Statistic Global hotel and resort industry market size worldwide 2022-2023
• Premium Statistic Most valuable hotel brands worldwide 2023, by brand value
• Basic Statistic Leading hotel companies worldwide 2023, by number of properties
• Premium Statistic Number of hotels in the construction pipeline worldwide 2024
• Premium Statistic Number of hotel rooms in the construction pipeline worldwide 2024
• Premium Statistic Countries with the most hotel construction projects in the pipeline worldwide 2024

Global hotel and resort industry market size worldwide 2022-2023

Market size of the hotel and resort industry worldwide in 2022 and 2023 (in trillion U.S. dollars)

Most valuable hotel brands worldwide 2023, by brand value

Leading hotel brands based on brand value worldwide in 2023 (in billion U.S. dollars)

Leading hotel companies worldwide 2023, by number of properties

Leading hotel companies worldwide as of June 2023, by number of properties

Number of hotels in the construction pipeline worldwide 2024

Number of hotels in the construction pipeline worldwide as of the first quarter of 2024

Number of hotel rooms in the construction pipeline worldwide 2024

Number of hotel rooms in the construction pipeline worldwide as of the first quarter of 2024

Countries with the most hotel construction projects in the pipeline worldwide 2024

Countries with the highest number of hotel construction projects in the pipeline worldwide as of the first quarter of 2024

• Premium Statistic Airports with the most international air passenger traffic worldwide 2023
• Premium Statistic Market value of selected airlines worldwide 2024
• Premium Statistic Global passenger rail users forecast 2017-2028
• Premium Statistic Daily ridership of bus rapid transit systems worldwide by region 2023
• Premium Statistic Number of users of car rentals worldwide 2020-2029
• Premium Statistic Number of users in selected countries in the Car Rentals market in 2023
• Premium Statistic Carbon footprint of international tourism transport worldwide 2005-2030, by type

Airports with the most international air passenger traffic worldwide 2023

Leading airports for international air passenger traffic in 2023 (in million international passengers)

Market value of selected airlines worldwide 2024

Market value of selected airlines worldwide as of May 2024 (in billion U.S. dollars)

Global passenger rail users forecast 2017-2028

Worldwide number of passenger rail users from 2017 to 2023, with a forecast through 2028 (in billion users)

Daily ridership of bus rapid transit systems worldwide by region 2023

Number of daily passengers using bus rapid transit (BRT) systems as of April 2023, by region

Number of users of car rentals worldwide 2020-2029

Number of users of car rentals worldwide from 2020 to 2029 (in millions)

Number of users in selected countries in the Car Rentals market in 2023

Number of users in selected countries in the Car Rentals market in 2023 (in million)

Carbon footprint of international tourism transport worldwide 2005-2030, by type

Transport-related emissions from international tourist arrivals worldwide in 2005 and 2016, with a forecast for 2030, by mode of transport (in million metric tons of carbon dioxide)

Attractions

• Premium Statistic Most visited museums worldwide 2019-2023
• Basic Statistic Most visited amusement and theme parks worldwide 2023
• Basic Statistic Monuments on the UNESCO world heritage list 2023, by type
• Basic Statistic Selected countries with the most Michelin-starred restaurants worldwide 2024

Most visited museums worldwide 2019-2023

Museums with the highest attendance worldwide from 2019 to 2023 (in millions)

Most visited amusement and theme parks worldwide 2023

Leading amusement and theme parks worldwide 2023, by attendance (in millions)

Monuments on the UNESCO world heritage list 2023, by type

Number of monuments on the UNESCO world heritage list as of September 2023, by type

Selected countries with the most Michelin-starred restaurants worldwide 2024

Number of Michelin-starred restaurants in selected countries and territories worldwide as of August 2024

Online travel market

• Premium Statistic Online travel market size worldwide 2017-2028
• Premium Statistic Estimated desktop vs. mobile revenue of leading OTAs worldwide 2023
• Premium Statistic Number of aggregated downloads of leading online travel agency apps worldwide 2023
• Basic Statistic Market cap of leading online travel companies worldwide 2023
• Premium Statistic Estimated EV/Revenue ratio in the online travel market 2024, by segment
• Premium Statistic Estimated EV/EBITDA ratio in the online travel market 2024, by segment

Online travel market size worldwide 2017-2028

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

Estimated desktop vs. mobile revenue of leading OTAs worldwide 2023

Estimated desktop vs. mobile revenue of leading online travel agencies (OTAs) worldwide in 2023 (in billion U.S. dollars)

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

Estimated enterprise value to revenue (EV/Revenue) ratio in the online travel market worldwide as of April 2024, by segment

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

Estimated enterprise value to EBITDA (EV/EBITDA) ratio in the online travel market worldwide as of April 2024, by segment

Selected trends

• Premium Statistic Global travelers who believe in the importance of green travel 2023
• Premium Statistic Sustainable initiatives travelers would adopt worldwide 2022, by region
• Premium Statistic Airbnb revenue worldwide 2017-2023
• Premium Statistic Airbnb nights and experiences booked worldwide 2017-2023
• Premium Statistic Technologies global hotels plan to implement in the next three years 2022
• Premium Statistic Hotel technologies global consumers think would improve their future stay 2022

Global travelers who believe in the importance of green travel 2023

Share of travelers that believe sustainable travel is important worldwide in 2023

Sustainable initiatives travelers would adopt worldwide 2022, by region

Main sustainable initiatives travelers are willing to adopt worldwide in 2022, by region

Airbnb revenue worldwide 2017-2023

Revenue of Airbnb worldwide from 2017 to 2023 (in billion U.S. dollars)

Airbnb nights and experiences booked worldwide 2017-2023

Nights and experiences booked with Airbnb from 2017 to 2023 (in millions)

Technologies global hotels plan to implement in the next three years 2022

Technologies hotels are most likely to implement in the next three years worldwide as of 2022

Hotel technologies global consumers think would improve their future stay 2022

Must-have hotel technologies to create a more amazing stay in the future among travelers worldwide as of 2022

• Premium Statistic Travel and tourism revenue worldwide 2020-2029, by segment
• Premium Statistic Distribution of sales channels in the travel and tourism market worldwide 2019-2029
• Premium Statistic Inbound tourism visitor growth worldwide 2020-2025, by region
• Premium Statistic Outbound tourism visitor growth worldwide 2020-2025, by region

Travel and tourism revenue worldwide 2020-2029, by segment

Revenue of the travel and tourism market worldwide from 2020 to 2029, by segment (in billion U.S. dollars)

Distribution of sales channels in the travel and tourism market worldwide 2019-2029

Revenue share of sales channels of the travel and tourism market worldwide from 2019 to 2029

Inbound tourism visitor growth worldwide 2020-2025, by region

Inbound tourism visitor growth worldwide from 2020 to 2022, with a forecast until 2025, by region

Outbound tourism visitor growth worldwide 2020-2025, by region

Outbound tourism visitor growth worldwide from 2020 to 2022, with a forecast until 2025, by region

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Understanding the Travel and Tourism Sector: A Business Perspective

The world of business is inextricably linked with the realm of travel and tourism. From corporate travel arrangements to the operation of hospitality giants, this sector plays a pivotal role in the global economy.

The travel and tourism industry is not merely about vacations and leisure; it encompasses a diverse array of activities, services, and businesses that fuel economies, create jobs, and shape the way we explore the world.

In this article, we will embark on a journey to understand the intricacies of the travel and tourism sector from a business standpoint. We will explore its significance in the global economy, delve into the core components of the industry, examine the economic impact, and discuss emerging trends and challenges.

Moreover, we will shed light on the business aspects of travel, highlighting the key players, revenue streams, and marketing strategies that drive success.

But why should business professionals, beyond those directly involved in tourism, care about this sector? The answer lies in the fact that travel and tourism intersect with nearly every industry. Whether you’re in finance, technology, healthcare, or any other field, understanding how this sector operates can unlock opportunities for growth, collaboration, and innovation.

So, fasten your seatbelts and prepare for a journey through the multifaceted world of travel and tourism, where business meets exploration and economic growth meets wanderlust.

Travel and Tourism

Travel and tourism refer to the activities, services, and industries associated with people traveling to and staying in places outside their usual place of residence for leisure, business, or other purposes.

The Core Components of Travel and Tourism

At its heart, the travel and tourism sector comprises several key components, each playing a unique role in the industry’s ecosystem. Understanding these components is crucial for any business professional aiming to navigate this dynamic sector effectively.

Here are the primary elements:

1. Accommodation: Accommodation providers are the backbone of the tourism industry. They include hotels, resorts, vacation rentals, and even unconventional options like Airbnb. These establishments cater to travelers by offering a place to stay, ranging from budget to luxury.

2. Transportation: Travel relies heavily on transportation. This segment encompasses airlines, cruise lines, railways, car rental services, and public transportation systems. Efficient transportation networks are vital for connecting travelers to their destinations.

3. Food and Beverage: Dining experiences are an integral part of any trip. This category includes restaurants, cafes, food trucks, and bars. Culinary tourism, where travelers explore local cuisine, has become a significant trend within this segment.

4. Travel Agencies: Travel agencies and tour operators serve as intermediaries between travelers and service providers. They help plan itineraries, book accommodations, and arrange transportation, making the travel process more convenient.

5. Attractions and Entertainment: Tourist destinations offer various attractions, from historical sites and museums to theme parks and natural wonders. Entertainment options such as theaters and music venues also contribute to the overall travel experience.

6. Travel Technology: In the digital age, technology has transformed the way people plan and experience travel. Online booking platforms, travel apps, and services like TripAdvisor have reshaped the industry’s landscape.

7. Tourism Services: This category includes a range of services such as travel insurance, currency exchange, and visa assistance. These services ensure that travelers are prepared for their journeys and can navigate any unforeseen challenges.

8. Destination Management: Local governments and organizations play a pivotal role in managing and promoting tourist destinations. They invest in infrastructure, marketing, and sustainability efforts to attract visitors.

The Economic Impact of Travel and Tourism

From a business perspective, it’s essential to grasp the significant economic impact of the travel and tourism sector. This industry is a global economic powerhouse that generates jobs, fosters investment and drives economic growth.

Here are some key statistics to illustrate the significance of travel and tourism :

• Job Creation: Travel and tourism directly support over 330 million jobs worldwide, accounting for 1 in 10 jobs globally.
• Contribution to GDP: In 2022, the travel and tourism sector contributed 7.6% to global GDP, highlighting its substantial economic footprint.
• Investment Magnet: This sector attracts investments in infrastructure, hotels, transportation, and more, further stimulating economic activity.
• Foreign Exchange Earnings: Tourism often serves as a vital source of foreign exchange earnings for many countries, boosting their balance of payments.
• SME Growth: Small and medium-sized enterprises (SMEs) play a significant role in the sector, benefiting from the opportunities created by tourism-related businesses.

The economic interplay between tourism and other industries is intricate.

For instance, the hospitality sector relies on agriculture for food supplies, airlines depend on the aerospace industry for aircraft and tourist destinations often collaborate with local artisans and businesses to promote cultural experiences.

In the business world, recognizing the economic clout of travel and tourism can open doors for collaboration, investment, and innovation. Many companies, even those seemingly unrelated to tourism, can find ways to tap into this lucrative market.

Emerging Trends and Challenges

The travel and tourism sector is continuously evolving, driven by changing consumer preferences, technological advancements, and global events. Business professionals must stay attuned to these trends and challenges to adapt and thrive in this dynamic industry.

Here are some notable developments:

1. Sustainable Tourism: Travelers increasingly prioritize eco-friendly and sustainable practices. Businesses that adopt green initiatives not only reduce their environmental footprint but also attract environmentally conscious travelers.

2. Digital Transformation: The digitalization of travel services has reshaped how consumers plan and book trips. Online platforms, artificial intelligence, and data analytics are instrumental in personalizing travel experiences.

3. Health and Safety: Recent global health crises have heightened travelers’ concerns about safety and hygiene. Businesses must implement robust health and safety measures to regain consumer trust.

4. Shifts in Travel Behavior: The pandemic has brought about changes in travel behavior, with a focus on remote and nature-based destinations. Companies need to adapt their offerings to cater to these evolving preferences.

5. Regulatory Challenges: Navigating complex regulations, including visa requirements and health protocols, can be a challenge for travel businesses. Staying informed and compliant is crucial.

6. Geopolitical Factors: Political instability and international relations can significantly impact the tourism industry. Businesses must be prepared to adapt to changing geopolitical landscapes.

The Business of Travel and Tourism

Understanding how businesses operate within this sector is essential for both industry insiders and entrepreneurs looking to tap into this thriving market.

Role of Businesses in the Travel Sector

Businesses play a pivotal role in shaping the travel and tourism landscape. Whether you’re a hotel chain, an airline, a tour operator, or a travel agency, your role is multifaceted, encompassing everything from customer service to marketing and sustainability initiatives.

• Customer-Centric Approach : At the heart of every successful travel and tourism business is a deep commitment to customer satisfaction. Travelers today expect exceptional service and unique experiences. From the moment a traveler starts planning their trip to the time they return home, businesses must focus on providing top-notch services, personalized recommendations, and seamless experiences.
• Innovation and Adaptation : The travel industry is highly competitive and constantly evolving. Successful businesses in this sector are those that innovate and adapt to changing trends. This could mean embracing digital technology, offering eco-friendly options, or creating new and exciting travel packages.

Business Models and Revenue Streams

To thrive in the travel and tourism sector, businesses employ various revenue models tailored to their specific niches. Here are a few common business models:

• Hospitality and Accommodation : Hotels, resorts, and vacation rentals rely on room bookings and additional services such as dining, spa treatments, and event hosting to generate revenue.
• Airlines and Transportation : Airlines make money through ticket sales, baggage fees, in-flight services, and partnerships with other travel-related businesses. Transportation services like taxis, trains, and cruise lines have similar revenue structures.
• Tour Operators and Travel Agencies : These businesses profit from organizing and selling travel packages, tours, and experiences. Commissions, booking fees, and tour sales are primary income sources.
• Online Travel Agencies (OTAs) : OTAs like Expedia and Booking.com aggregate information from various travel service providers and earn commissions on bookings made through their platforms.

Customer Experience and Service Excellence

In the digital age, the travel and tourism sector is driven by customer reviews and recommendations. Travelers share their experiences online, influencing the choices of others. Therefore, providing exceptional customer service is paramount. Here are some strategies to achieve service excellence:

• Personalization : Tailor recommendations and services to individual preferences.
• Seamless Booking and Travel : Make the booking process simple and provide support throughout the journey.
• Feedback and Improvement : Collect customer feedback and use it to enhance services continually.
• Crisis Management : Be prepared to handle unexpected situations, such as flight cancellations or health emergencies, with professionalism and empathy.

Marketing and Promotion Strategies

Effective marketing is essential for attracting travelers to your business. Here are some strategies commonly used in the travel and tourism industry:

• Digital Marketing : Utilize online channels such as social media, search engine optimization (SEO), email marketing, and paid advertising to reach a global audience.
• Content Marketing : Create engaging content, including blog posts, videos, and travel guides, to inspire and inform potential travelers.
• Partnerships : Collaborate with influencers, other businesses, and tourism boards to expand your reach and access new markets.
• Sustainability Promotion : Highlight your commitment to sustainable and responsible travel practices, as eco-conscious travelers seek eco-friendly options.

The business of travel and tourism is a multifaceted realm that demands a relentless focus on customer satisfaction, innovation, and responsible practices.

Success in this sector requires a deep understanding of your niche, a commitment to service excellence, and strategic marketing efforts. As the travel industry continues to evolve, businesses that can adapt and offer unique, memorable experiences will undoubtedly thrive in this exciting and ever-changing market.

Key Players in the Travel and Tourism Industry

As we dive deeper into the business of travel and tourism, it’s crucial to recognize the key players that shape this industry. These players, ranging from airlines to accommodation providers and travel agencies, contribute to the diverse ecosystem of travel and tourism.

Understanding their roles and significance is essential for anyone interested in this dynamic sector.

Airlines and Aviation

Airlines are the lifelines of global travel. They provide the means for travelers to reach their destinations quickly and efficiently. Here’s an overview of their role in the industry:

• Passenger Transportation : Airlines transport millions of passengers daily, connecting cities and countries across the globe. They generate revenue through ticket sales, baggage fees, and in-flight services.
• Cargo Services : Airlines also play a pivotal role in transporting goods and cargo, contributing significantly to international trade and logistics.
• Global Networks : Major airlines operate extensive global networks, allowing travelers to reach virtually any corner of the world.

Hotel Chains and Accommodation Providers

The hospitality sector, including hotels, resorts, and vacation rentals, is another cornerstone of the travel and tourism industry. Here’s how they contribute:

• Lodging : These businesses offer lodging options, from budget-friendly to luxury, catering to diverse traveler preferences.
• Dining and Services : Many hotels provide dining options, spa services, event hosting, and recreational facilities, enhancing the guest experience and generating additional revenue.
• Destination Attraction : Iconic hotels and resorts often become attractions in themselves, drawing travelers to specific destinations.

Tour Operators and Travel Agencies

Tour operators and travel agencies specialize in creating and selling travel packages and experiences. Their roles include:

• Curating Experiences : They design itineraries and packages that offer unique and immersive travel experiences, from adventure tours to cultural excursions.
• Booking and Logistics : These businesses handle the logistics of travel, including accommodations, transportation, and activities, streamlining the process for travelers.
• Expertise : Tour operators and travel agencies provide expert guidance, helping travelers navigate complex travel decisions.

Destination Management Companies

Destination management companies (DMCs) focus on specific regions or destinations. Their roles encompass:

• Local Expertise : DMCs have in-depth knowledge of their respective destinations, enabling them to offer specialized services and experiences.
• Customized Services : They work closely with travel planners and agencies to tailor experiences for groups and individuals.
• Sustainability : DMCs often play a vital role in promoting responsible tourism practices within their destinations.

Online Travel Agencies (OTAs)

Online travel agencies have become a dominant force in the industry, leveraging digital platforms to connect travelers with various travel services. Here’s what they do:

• Aggregation : OTAs aggregate information from airlines, hotels, and other travel service providers, offering a wide array of choices to travelers.
• Booking Platforms : They provide convenient booking platforms, allowing travelers to book flights, accommodations, and more in one place.
• Reviews and Recommendations : OTAs often feature user reviews and recommendations, influencing traveler decisions.

Understanding the roles of these key players in the travel and tourism industry is essential for anyone considering entering this sector.

Each player contributes uniquely to the travel experience, from transportation to accommodation and beyond. Successful businesses often collaborate with multiple stakeholders to offer comprehensive and memorable travel experiences to their customers.

Travel and Tourism Post-COVID-19

The travel and tourism industry, like many others, faced unprecedented challenges during the COVID-19 pandemic. Lockdowns, travel restrictions, and health concerns brought international travel to a standstill. However, the industry has displayed remarkable resilience and adaptability.

Let’s explore how the sector is recovering and adapting in a post-pandemic world.

Impact of the Pandemic on the Industry

• Travel Restrictions : Stringent travel restrictions, including border closures and quarantine requirements, severely impacted international travel. Airlines faced a sharp decline in passenger numbers.
• Hospitality Struggles : Hotels and accommodation providers experienced a dramatic drop in occupancy rates. Many temporarily closed or adapted to offer quarantine and isolation services.
• Cruise Industry Challenges : Cruise lines faced significant setbacks due to onboard outbreaks. The industry had to reimagine health and safety protocols.
• Shift to Domestic Travel : With international travel restrictions, many travelers turned to domestic and regional destinations, boosting local tourism.
• Digital Transformation : The pandemic accelerated the adoption of digital technologies for contactless bookings, health monitoring, and communication.

Recovery and Adaptation Strategies

The travel and tourism industry is rebounding, thanks to a combination of factors:

• Vaccination Campaigns : Widespread vaccination campaigns have increased traveler confidence, making international travel safer.
• Health and Safety Protocols : Airlines, hotels, and other businesses have implemented robust health and safety measures to reassure travelers.
• Flexible Booking Policies : Many travel companies introduced flexible booking and cancellation policies to accommodate changing travel plans.
• Sustainability Focus : There’s a growing emphasis on sustainable and responsible tourism, with businesses integrating eco-friendly practices.
• Digitalization : The industry continues to embrace digital technologies, offering contactless experiences and personalized services.
• Collaboration : Stakeholders across the industry are collaborating to rebuild and promote destinations.

Future Outlook and Resilience

The travel and tourism industry is poised for recovery and growth in the coming years. Here’s what the future may hold:

• Pent-Up Demand : Many travelers postponed their plans during the pandemic, leading to pent-up demand for leisure and business travel.
• Sustainable Travel : Sustainable and eco-conscious travel is gaining momentum. Travelers are increasingly choosing destinations and businesses committed to environmental responsibility.
• Tech Integration : Technology will continue to play a significant role, with advancements in AI, mobile apps, and data analytics enhancing the travel experience.
• Health and Safety : Health and safety measures will remain a priority, with businesses maintaining rigorous protocols.
• Remote Work and Travel : Remote work trends may encourage a blend of work and leisure travel, with more extended stays in diverse locations.
• Resilience Planning : The industry is developing resilience plans to better handle future crises and disruptions.

The travel and tourism industry’s ability to adapt and innovate in the face of adversity demonstrates its resilience. As it recovers and evolves, it offers promising opportunities for businesses and travelers alike.

The key to success lies in embracing change, prioritizing safety, and delivering exceptional experiences that meet the evolving needs of travelers in a changing world.

Sustainable Tourism and Responsible Business Practices

In a world increasingly concerned about the environment and social responsibility, the travel and tourism industry is under scrutiny to adopt more sustainable and responsible practices.

Let’s delve into the importance of sustainable tourism and how businesses can contribute to a greener and more ethical travel sector.

Environmental and Social Responsibility

• Reducing Carbon Footprint : The travel industry is a significant contributor to greenhouse gas emissions. Airlines, for example, are exploring biofuels and more fuel-efficient aircraft to reduce their carbon footprint.
• Preserving Natural Resources : Eco-conscious travelers seek destinations that protect and preserve natural resources. Businesses can contribute by implementing eco-friendly initiatives like energy-efficient facilities and waste reduction programs.
• Conservation Efforts : Supporting local conservation projects and wildlife protection initiatives can be a part of responsible tourism. This can involve financial contributions or active participation.
• Respecting Local Cultures : Responsible tourism respects and celebrates local cultures and traditions. It involves engaging with local communities in a respectful and sustainable manner.
• Community Involvement : Businesses can support the communities they operate in through job creation, fair wages, and community development projects.

Sustainable Tourism Certifications and Initiatives

• Eco-Certifications : Numerous certifications, such as EarthCheck and Green Key , help businesses showcase their commitment to sustainability. These certifications often involve rigorous audits of a company’s environmental practices.
• Zero-Waste Initiatives : Some hotels and resorts aim to become zero-waste establishments, recycling and repurposing nearly all their waste.
• Wildlife Conservation : Tour operators and businesses can partner with wildlife conservation organizations to promote ethical wildlife experiences.
• Local Sourcing : Restaurants and hotels can prioritize local sourcing of food and materials, reducing transportation-related carbon emissions.
• Plastic Reduction : Many businesses are eliminating single-use plastics and opting for sustainable alternatives.

Benefits of Responsible Tourism for Businesses

• Competitive Advantage : Travelers increasingly seek sustainable and responsible options. Businesses that embrace these practices gain a competitive edge.
• Cost Savings : Sustainable practices often lead to cost savings through reduced energy and resource consumption.
• Enhanced Reputation : Businesses committed to responsible tourism build a positive reputation and attract like-minded customers.
• Legal Compliance : Adhering to eco-friendly and ethical standards ensures compliance with evolving environmental and social regulations.
• Long-Term Viability : By protecting the environment and supporting local communities, businesses contribute to the long-term viability of their destinations.
• Guest Satisfaction : Eco-conscious travelers appreciate businesses that share their values, leading to higher guest satisfaction and loyalty.

The travel and tourism sector’s future hinges on sustainable and responsible practices. Businesses that prioritize environmental and social responsibility not only contribute to a healthier planet but also position themselves for long-term success in an industry undergoing profound changes.

As a business professional, understanding and adopting these practices can be a strategic advantage in a world where ethical considerations increasingly influence consumer choices.

Hostile Takeovers

In a hostile takeover, the acquiring company pursues the target company despite the target’s resistance. Hostile takeovers often involve aggressive tactics, such as tender offers directly to shareholders or attempts to replace the target’s board of directors.

Case Studies: Successful Businesses in Travel and Tourism

To gain deeper insights into the strategies and approaches that have propelled certain businesses to success in the travel and tourism sector, let’s examine a few notable case studies.

These examples showcase how innovation, adaptability, and a customer-centric approach can make a significant impact in this dynamic industry.

Airbnb: Revolutionizing Accommodation

Airbnb, founded in 2008, has transformed the hospitality sector. This online marketplace connects travelers with unique accommodations offered by hosts worldwide. What sets Airbnb apart?

Key Success Factors:

• Platform Model : Airbnb operates as a platform, allowing hosts to list their properties and travelers to book them. This asset-light model means Airbnb doesn’t own properties, reducing capital requirements.
• User Reviews : User-generated reviews and ratings build trust among users. Travelers can make informed choices based on the experiences of previous guests.
• Personalization : Airbnb’s recommendation engine suggests accommodations based on user preferences, enhancing the customer experience.
• Diverse Offerings : From treehouses to castles, Airbnb offers a wide range of unique accommodations, appealing to travelers seeking authentic experiences.
• Host Community : Airbnb invests in building a strong host community, providing support and resources to hosts.

Cross-Border Mergers and Acquisitions: Global Expansion

Cross-border M&A transactions involve companies from different countries coming together. These deals offer opportunities for global expansion but also present unique challenges.

Booking.com: Data-Driven Booking

Booking.com, founded in 1996, is a global online travel agency. It leverages technology and data to simplify travel booking.

• Vast Inventory : Booking.com offers a wide range of accommodation options, from hotels to vacation rentals. This extensive inventory caters to diverse traveler preferences.
• User Experience : The platform’s user-friendly interface and transparent booking process contribute to its popularity.
• Data Analytics : Booking.com uses data analytics to understand traveler behavior, enabling personalized recommendations and pricing strategies.
• Global Reach : With a presence in over 220 countries and territories, Booking.com serves a global audience.
• Instant Confirmation : Providing real-time booking confirmation enhances the customer experience.

Delta Air Lines: Customer-Centric Air Travel

Delta Air Lines, a major U.S. carrier founded in 1924, is known for its customer-centric approach.

• Reliability : Delta prioritizes operational reliability, minimizing flight cancellations and delays.
• Fleet Upgrades : Investing in a modern and efficient fleet enhances the passenger experience and reduces operating costs.
• Customer Service : Delta emphasizes excellent customer service, and its efforts are reflected in high customer satisfaction ratings.
• Global Alliances : Participation in global airline alliances expands route networks and offers travelers more choices.
• Innovation : Delta embraces innovation, introducing features like biometric boarding and in-flight entertainment options.

These case studies highlight the diverse strategies and approaches that have driven success in the travel and tourism sector. From disruptive online marketplaces to data-driven booking platforms and customer-centric airlines, businesses that prioritize innovation, customer experience, and adaptability are well-positioned for growth.

By studying these examples, business professionals can gain valuable insights into the industry’s evolving landscape and identify opportunities to innovate and excel in their own travel and tourism endeavors.

Lessons Learned from Industry Leaders

The travel and tourism sector offers a treasure trove of lessons for business professionals across various industries. Let’s distill some key takeaways from the successes and innovations of industry leaders:

1. Customer-Centricity Is Paramount

Whether you’re running an airline, hotel, or travel agency, prioritizing the customer experience is non-negotiable. Happy and satisfied customers become loyal patrons and brand advocates. Invest in personalized services, efficient booking processes, and responsive customer support.

2. Embrace Technology and Data

Technology is a game-changer in the travel industry. From data analytics that inform pricing strategies to mobile apps that enhance on-the-go experiences, leveraging technology can set your business apart. Be open to adopting new tools and systems that improve efficiency and customer satisfaction.

3. Diversity and Choice Matter

Offering a diverse range of products or services can attract a broader audience. In the travel sector, this means providing various accommodation types, transportation options, and tour packages. Embrace diversity to meet the unique preferences of your customers.

4. Transparency Builds Trust

Transparency in pricing, policies, and terms and conditions builds trust with customers. Hidden fees and ambiguous policies can lead to dissatisfaction. Clear communication and honesty go a long way in establishing credibility.

5. Sustainability Is the Future

Sustainability and responsible tourism are becoming central to the industry’s ethos. Travelers are increasingly conscious of their environmental impact. Consider eco-friendly practices and promote responsible tourism. It’s not only good for the planet but also a selling point for your business.

6. Innovate or Stagnate

Innovation is the lifeblood of the travel and tourism sector. Whether it’s introducing new services, improving efficiency, or enhancing the customer journey, staying ahead requires a commitment to innovation. Monitor industry trends and be open to creative solutions.

7. Globalization Expands Reach

Participating in global networks and alliances can expand your business’s reach. Collaborate with international partners to offer customers a wider range of options. Globalization also provides resilience in the face of economic fluctuations.

8. Resilience Is Crucial

The industry has weathered numerous storms, from economic crises to health emergencies. Building resilience into your business plans, such as having contingency measures for crises, is essential. Flexibility and adaptability are key.

9. Community and Culture Matter

Embrace the culture and communities where your business operates. Engage with local communities, respect their traditions, and contribute positively. This fosters goodwill and can lead to meaningful partnerships.

10. Continuous Learning Is a Competitive Advantage

The travel and tourism sector is ever-evolving. Continuous learning and staying informed about industry trends and regulations are essential. Attend conferences, workshops, and industry events to network and gain insights.

Incorporating these lessons into your business strategy can set you on a path to success in the dynamic and rewarding world of travel and tourism. By combining innovation, customer focus, and a commitment to sustainability, you can thrive in an industry that promises new horizons and unforgettable experiences for travelers worldwide.

The travel and tourism sector represents a dynamic and resilient industry with a significant impact on the global economy. As a business professional, understanding the nuances and opportunities within this sector is paramount. In this comprehensive guide, we’ve explored the multifaceted world of travel and tourism, delving into its significance, components, trends, and challenges.

We’ve seen how the industry intersects with business, offering a wide array of opportunities for entrepreneurs and established enterprises alike. Whether you’re considering venturing into travel-related ventures or seeking to enhance an existing business through tourism, the sector holds immense potential.

Key takeaways from this exploration include:

• The Economic Powerhouse : Travel and tourism contribute significantly to GDP, job creation, and foreign exchange earnings in many countries. This sector’s resilience is evident through its ability to rebound from crises.
• Diverse Components : The industry encompasses hospitality, transportation, attractions, travel services, and more, creating a rich tapestry of business opportunities.
• Trends and Challenges : Emerging trends like sustainable tourism and digital transformation offer avenues for innovation. Yet, challenges such as health concerns and environmental responsibility must be addressed.
• The Business of Tourism : Customer-centricity, technology adoption, transparency, and sustainability are vital principles for success in this sector.
• Key Players : Airlines, hotel chains, tour operators, and online travel agencies are among the key players shaping the industry’s landscape.
• Post-COVID-19 Era : The pandemic prompted significant shifts in travel behavior. Recovery strategies and adaptability are critical for businesses in the post-COVID-19 world.
• Sustainable Tourism : Responsible practices not only benefit the environment but also appeal to conscious travelers and can drive business success.
• Lessons from Industry Leaders : Customer-centricity, innovation, transparency, and resilience are valuable takeaways from successful travel and tourism businesses.

As the world evolves, so do the travel and tourism opportunities. By staying informed, embracing innovation, and aligning with sustainability, you can position your business for success in an industry that promises both profitability and the chance to create unforgettable experiences for travelers around the globe.

Now, armed with insights from this guide, you’re better equipped to navigate the exciting and ever-changing world of travel and tourism, contributing to its growth and shaping its future. Bon voyage!

• United Nations World Tourism Organization (UNWTO). (2022). Tourism Highlights 2022 Edition. Link
• World Travel & Tourism Council (WTTC). (2022). Economic Impact Reports. Link
• International Air Transport Association (IATA). (2022). IATA Economics. Link
• Deloitte. (2022). Travel, Hospitality, and Leisure Reports. Link
• Statista. (2022). Statistics and Market Data on Travel and Tourism. Link
• McKinsey & Company. (2022). Travel, Logistics & Transport Infrastructure. Link
• Booking.com. (2023). Link
• TripAdvisor. (2023). GreenLeaders. Link
• The New York Times. (2023). Travel and Tourism. Link
• National Geographic. (2023). Sustainable Travel. Link
• The World Bank. (2023). Tourism. Link
• World Tourism Organization (2022). Global Code of Ethics for Tourism. Link

Tumisang Bogwasi

2X Award-Winning Entrepreneur | Empowering Brands to Generate Leads, Grow Revenue with Business Strategy and Digital Marketing | Founder, CEO of Fine Group

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• Travel Tips

What Are The 7 Sectors Of Tourism

Published: December 12, 2023

Modified: December 28, 2023

by Mable Roldan

• Travel Guide

Introduction

Welcome to the exciting world of tourism! As travel enthusiasts, we often embark on journeys to discover new destinations, experience different cultures, and create unforgettable memories. But have you ever wondered about the various sectors that make up the tourism industry? Understanding these sectors can help us gain insight into the complex web of services and experiences that come together to create the perfect travel experience.

The tourism industry encompasses a wide range of activities and services, all aimed at providing travelers with comfortable and enjoyable experiences. These sectors work harmoniously to ensure that every aspect of a trip, from accommodation to transportation and beyond, is well taken care of. In this article, we will explore the seven key sectors of tourism, each playing a vital role in the overall travel experience.

From finding the perfect place to stay, to indulging in delectable local cuisine, to getting around efficiently, each sector offers unique services and experiences that contribute to the overall success of a trip. So, let’s dive into the world of tourism sectors and discover how they come together to create unforgettable journeys!

Accommodation Sector

The accommodation sector is a fundamental pillar of the tourism industry, providing travelers with a home away from home during their travels. This sector comprises a diverse range of options, ranging from luxurious hotels and resorts to budget-friendly hostels and vacation rentals.

Accommodation providers strive to ensure that guests have a comfortable and pleasant stay by offering a variety of amenities and services. From well-appointed rooms and spacious suites to 24/7 reception and room service, the accommodation sector aims to meet the needs and preferences of all types of travelers.

In recent years, there has been a remarkable surge in alternative accommodation options such as home-sharing platforms like Airbnb, allowing travelers to rent unique properties directly from homeowners. This trend has provided travelers with a wider range of choices and the opportunity to experience local neighborhoods and cultures more authentically.

Additionally, sustainability and eco-consciousness have become important factors in the accommodation sector. Many establishments are implementing eco-friendly practices, such as energy-efficient lighting and recycling programs, to reduce their environmental impact and attract guests who prioritize sustainable tourism.

Furthermore, technology has played a significant role in enhancing the accommodation sector. Online booking platforms and mobile apps have made it easier than ever for travelers to research, compare, and book accommodations, providing a seamless experience. The use of keyless entry systems and personalized mobile concierge services have also become popular, allowing guests to have a hassle-free and customized stay.

Whether it’s a cozy bed and breakfast nestled in a charming countryside or a luxurious beachfront resort with stunning ocean views, the accommodation sector offers a wide range of options to suit every budget, preference, and travel style.

Food and Beverage Sector

The food and beverage sector is a vital component of the tourism industry, as it provides travelers with culinary experiences that reflect the local culture and traditions of a destination. This sector encompasses a wide range of establishments, including restaurants, cafes, bars, food trucks, and street food vendors.

One of the highlights of travel is indulging in diverse cuisines and trying new flavors. The food and beverage sector caters to these cravings by offering a plethora of dining options, from upscale fine dining restaurants to casual eateries serving traditional local dishes. Travelers can savor authentic flavors, culinary masterpieces, and innovative fusions that highlight the region’s unique gastronomy.

Many destinations are known for their vibrant food scenes, with local markets and street food stalls offering a rich tapestry of flavors and aromas. Exploring local markets and trying street food can be a memorable and immersive experience, allowing travelers to get a taste of the authentic culinary culture of a place.

The food and beverage sector also caters to specific dietary needs and preferences. With an increasing number of people following vegetarian, vegan, or gluten-free diets, many establishments now offer diverse menu options to accommodate various dietary requirements. This inclusivity ensures that travelers with dietary restrictions can still enjoy delicious meals and be part of the culinary exploration.

Moreover, the sector has witnessed a rising trend of farm-to-table dining and emphasis on local, sustainable ingredients. Restaurants and cafes are partnering with local farmers, growers, and producers to source fresh, seasonal ingredients, supporting the local economy and reducing the carbon footprint associated with long-distance food transportation.

Technology has also made its mark on the food and beverage sector, with online restaurant reviews, recommendations, and food delivery apps allowing travelers to discover and enjoy the best dining experiences effortlessly. Additionally, some establishments employ innovative concepts like interactive dining experiences, fusion cuisines, and molecular gastronomy, aiming to provide unique and memorable meals that go beyond traditional dining.

From savoring Michelin-starred delicacies to sampling street food treasures, the food and beverage sector offers a diverse and enticing array of culinary experiences for travelers to delight their taste buds and create lasting memories.

Transportation Sector

The transportation sector is an essential component of the tourism industry, connecting travelers to their desired destinations. It encompasses various modes of transportation, including air travel, train and rail services, bus and coach services, cruises, and car rentals.

Air travel is a major player in the transportation sector, providing international and domestic flights that enable travelers to reach their destinations quickly and efficiently. Airlines strive to offer comfortable seating, in-flight entertainment, and quality service to enhance the overall travel experience. With the expansion of low-cost carriers, air travel has become more accessible and affordable, driving tourism growth around the world.

Train and rail services are another popular mode of transportation, especially for intercity travel and scenic journeys. Traveling by train allows passengers to enjoy stunning landscapes, experience local culture, and connect with different regions or countries in a convenient and sustainable way.

Bus and coach services provide economical transportation options for both urban and rural areas. They are often preferred by budget-conscious travelers or those seeking a more immersive experience, as they allow passengers to interact with locals and witness the changing landscapes along the journey.

Cruise tourism has also gained popularity, offering unique travel experiences on sea voyages. Cruise ships provide a floating resort-like experience, with amenities such as restaurants, entertainment venues, and recreational activities, while allowing travelers to explore different destinations without the need for constant packing and unpacking.

Car rentals give travelers the freedom to explore at their own pace, particularly in destinations with extensive road networks and scenic drives. Renting a car allows for flexibility and the opportunity to venture off the beaten path, discovering hidden gems and experiencing a more personalized travel itinerary.

Advancements in technology have revolutionized the transportation sector, making it more convenient and accessible for travelers. Online platforms and mobile apps allow for seamless booking and ticketing, real-time travel updates, and navigation assistance. Ride-hailing services have also gained popularity, providing an alternative mode of transportation in urban areas.

Transportation plays a crucial role in shaping a traveler’s overall experience, as it sets the tone for their journey and connects them to the various attractions and activities of a destination. Efficient and well-connected transportation networks contribute to the accessibility and attractiveness of a place, making it easier and more enjoyable for travelers to explore and immerse themselves in new cultures and experiences.

Travel Agency Sector

The travel agency sector plays a pivotal role in the tourism industry, acting as a bridge between travelers and their dream destinations. Travel agencies provide valuable services and expertise to help travelers plan and organize their trips, ensuring a smooth and hassle-free experience.

Travel agencies serve as a one-stop-shop for all travel-related needs. They assist travelers in selecting destinations, finding the best deals on accommodations, arranging transportation, and curating itineraries based on individual preferences and budgets. Whether it’s a solo adventure, a family vacation, a romantic getaway, or a group tour, travel agencies cater to a wide range of travel styles and requirements.

These agencies maintain relationships with airlines, hotels, tour operators, and other service providers, enabling them to secure discounted rates and exclusive packages for their clients. They have firsthand knowledge of destinations, attractions, and local customs, allowing them to offer valuable advice and recommendations to travelers.

In addition to organizing the logistics of a trip, travel agencies often specialize in specific types of travel experiences. They may focus on adventure travel, luxury vacations, cultural immersion, or niche markets like eco-tourism or culinary tours. This specialization allows them to provide expert guidance tailored to the specific interests of their clients.

With the rise of online travel booking platforms, some may question the relevance of travel agencies. However, travel agencies still hold a significant advantage with their personalized service and expertise. They can offer valuable insights and recommendations, handle complex itineraries, and provide support in the event of any unexpected issues during the trip.

Furthermore, travel agencies often offer additional services such as travel insurance, visa assistance, and 24/7 customer support. These added benefits alleviate the stress and uncertainties that can arise when planning and embarking on a journey, giving travelers peace of mind.

In recent years, travel agencies have also embraced technology to enhance their services. Many agencies have online platforms where travelers can research, compare, and book travel services. They utilize social media and content marketing strategies to inspire and engage potential clients, sharing travel tips, destination highlights, and special offers.

Overall, the travel agency sector plays a vital role in facilitating seamless and enjoyable travel experiences. Their expertise, personalized service, and access to exclusive deals make them valuable partners for travelers seeking professional assistance and guidance in planning their adventures.

Adventure and Recreation Sector

The adventure and recreation sector of the tourism industry caters to thrill-seekers and outdoor enthusiasts, offering a wide range of exciting activities and experiences. This sector is perfect for those looking to step out of their comfort zone, immerse themselves in nature, and create unforgettable memories.

Adventure tourism encompasses activities such as hiking, mountaineering, rock climbing, zip-lining, white-water rafting, and paragliding, among others. These activities provide a unique opportunity to explore natural landscapes, challenge oneself physically and mentally, and appreciate the beauty and wonders of the great outdoors.

Recreation tourism, on the other hand, focuses on leisure and relaxation. This sector includes activities such as beach vacations, golfing, spa retreats, wellness retreats, and wildlife safaris. Recreation tourism offers a chance to unwind, rejuvenate, and engage in activities that promote overall well-being and tranquility.

While adventure and recreation activities differ in their nature, both sectors contribute to sustainable tourism by raising awareness about environmental conservation and supporting local communities. Many adventure tourism operators and recreational facilities follow sustainable practices, ensuring the preservation of natural resources and the protection of delicate ecosystems.

Adventure and recreation tourism also provide economic opportunities for local communities. These activities often require specialized guides, equipment rental services, and accommodation facilities, creating employment and generating income for the host destinations.

Technology has played a significant role in the growth of the adventure and recreation sector. Online platforms and mobile applications make it easier for travelers to research and book activities, access trail maps, and connect with local guides. Adventure and recreation companies often leverage social media platforms to showcase their offerings and inspire potential travelers.

The adventure and recreation sector offers a diverse range of experiences, catering to a variety of interests and skill levels. Whether it’s summiting a mountain peak, scuba diving in a vibrant coral reef, or simply enjoying a peaceful yoga retreat, this sector ensures that travelers can find activities that align with their preferences and desired level of excitement.

It’s important to note that safety and responsible tourism practices are essential in the adventure and recreation sector. Travelers should choose licensed operators, follow guidelines provided by professionals, respect the environment, and prioritize their own safety and well-being while engaging in adventurous activities. This ensures a positive and sustainable experience for both travelers and the destinations they visit.

Events and Conferences Sector

The events and conferences sector of the tourism industry plays a pivotal role in bringing together professionals, enthusiasts, and like-minded individuals from various fields. This sector is responsible for organizing and hosting a wide range of events, conferences, trade shows, and exhibitions that contribute to knowledge-sharing, networking, and business growth.

Events and conferences serve as platforms for professionals to exchange ideas, showcase innovations, and discuss current trends in their respective industries. They provide opportunities for networking, collaboration, and learning, fostering professional development and driving innovation.

The sector encompasses a diverse range of events, including academic conferences, industry exhibitions, music festivals, sports competitions, cultural festivals, and trade shows, among many others. These events attract participants from different parts of the world, contributing to the economic growth of the host destination.

Events and conferences often require specialized infrastructure and facilities, such as convention centers, exhibition halls, and hotels with conference facilities. These venues provide the necessary space, technology, and amenities to accommodate large gatherings and ensure the smooth execution of events.

The events and conferences sector contributes to the tourism industry by boosting visitor numbers, filling hotel rooms, and driving revenue for local businesses such as restaurants, transportation services, and event vendors. Host destinations often see a surge in tourism during major events, as attendees explore the local attractions and contribute to the local economy.

Technology has played a significant role in enhancing the events and conferences sector. Virtual conferences and hybrid event formats have gained popularity, allowing participants to attend events remotely, reducing travel expenses and environmental impact. Event management software, mobile apps, and online registration systems have streamlined event organization, making it easier for attendees to access event information, sign up for sessions, and engage with other participants.

It’s important to note that the events and conferences sector is not limited to business-related gatherings. Cultural festivals, music concerts, and sporting events also fall under this sector, offering unique experiences that celebrate art, music, sports, and local traditions.

A well-executed event or conference can leave a lasting impact on participants, fostering professional connections, knowledge exchange, and inspiration. By bringing people together, this sector contributes to the growth and development of various industries and promotes cultural exchange and mutual understanding.

Tourism Services Sector

The tourism services sector is a vital component of the overall tourism industry, providing a wide range of support services to both travelers and businesses operating within the tourism sector. This sector encompasses various services that enhance the travel experience and contribute to the seamless operation of the industry.

One of the key services in this sector is tourism information and assistance. Tourism information centers, both physical and virtual, provide valuable resources and guidance to travelers, offering information about destinations, attractions, accommodation options, transportation, and activities. These centers play a crucial role in helping travelers plan their itineraries and make informed decisions.

Another important aspect of the tourism services sector is travel insurance. Travel insurance provides coverage for unexpected events such as trip cancellations, medical emergencies, lost baggage, and travel interruptions. It offers peace of mind to travelers, ensuring that they are protected from unforeseen circumstances that may disrupt their travel plans.

Visa assistance is another significant service within this sector. Many destinations require travelers to obtain visas before entry, and navigating the visa application process can be complex and time-consuming. Visa assistance services, whether provided by travel agencies or specialized companies, help travelers understand the requirements, gather the necessary documentation, and facilitate the visa application process.

Translation and interpretation services are also essential in the tourism services sector, particularly in destinations where the local language may be a barrier for some travelers. These services ensure effective communication between travelers and local residents, allowing for a smoother and more immersive experience.

Additionally, currency exchange services play a vital role in facilitating financial transactions for travelers. The ability to exchange currencies conveniently and at fair rates ensures that travelers have access to the local currency for their expenses during their trip.

Technology has transformed the tourism services sector, making these services more accessible and convenient. Mobile applications, online platforms, and virtual assistants provide travelers with instant access to information, assistance, and services. Many travel service providers offer online booking options and 24/7 customer support, allowing travelers to make reservations and address any queries or concerns at their convenience.

The tourism services sector acts as a backbone for the overall tourism industry, ensuring that travelers have access to the necessary support, information, and services they need throughout their journey. By providing valuable assistance and enhancing the travel experience, this sector plays a vital role in fostering customer satisfaction and driving the growth of the tourism industry as a whole.

The tourism industry is a complex and multifaceted sector, composed of various interconnected sectors that work together to provide unforgettable travel experiences. From accommodations and food to transportation and events, each sector plays a crucial role in shaping the overall travel experience and contributing to the success of the tourism industry.

The accommodation sector ensures that travelers have a comfortable and enjoyable place to stay, offering a wide range of options to suit every preference and budget. The food and beverage sector tantalizes taste buds with diverse cuisines and culinary experiences, reflecting the local culture and traditions of a destination.

The transportation sector connects travelers to their desired destinations, providing convenient and efficient modes of travel. Travel agencies serve as invaluable resources, offering expertise and assistance in planning and organizing trips, while the adventure and recreation sector caters to thrill-seekers and outdoor enthusiasts craving adrenaline-pumping experiences.

Events and conferences bring professionals together, fostering knowledge sharing, networking, and innovation. Finally, the tourism services sector provides essential support services such as information and assistance, travel insurance, visa facilitation, translation and interpretation, and currency exchange.

Technology has revolutionized the tourism industry, making information and services more accessible, convenient, and personalized. Online booking platforms, mobile apps, and virtual assistance have transformed the way travelers research, plan, and book their trips.

In conclusion, understanding the various sectors of the tourism industry allows us to appreciate the intricate web of services that work harmoniously to create remarkable travel experiences. Whether it’s relaxing in a luxurious hotel, savoring local delicacies, exploring beautiful landscapes, attending a conference, or receiving helpful assistance, each sector contributes to the success and enjoyment of a trip. By recognizing the importance of these sectors and embracing technology’s advancements, we can continue to enhance and evolve the tourism industry and provide unforgettable experiences for travelers around the world.

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The Emerald Handbook of Entrepreneurship in Tourism, Travel and Hospitality

ISBN : 978-1-78743-530-8 , eISBN : 978-1-78743-529-2

Publication date: 11 July 2018

The scope of this chapter is to present in a simple and synoptic way the main components of tourism as a consumer-driven business field. The main purpose of this chapter is to discuss the tourism system and tourism value chain as the analytical frameworks for tourism businesses.

Methodology/approach

A literature review was conducted on conceptual issues and managerial aspects of tourism system and value chain.

This chapter highlights the fact that tourism is not a science or a scientific discipline; it is just a body of knowledge. It presents, in a synoptic and clear way, the building blocks of the tourism, that is, the approaches of tourism system and tourism value chain, as well as the concept of tourism experience.

Research limitations/implications

This chapter is explorative in nature, because the discussion is mostly based on a literature review.

Practical implications

Tourism is a multifaceted activity, which touches upon many different economic activities that are connected as a system. Thus, tourism must be understood as a system that includes interrelated elements working together. The model of a value chain can be applied in tourism, both at business and destination levels. Tourists are the focal point of the global value chain in international tourism.

Originality/value

This chapter analyses analytical frameworks, models and concepts in an integrated way. This analysis is very useful in creating a better understanding of the tourism industries and the business ventures in this field.

• Tourism system
• Analytical frameworks
• Tourism experience
• Value chain
• Global value chain

Varvaressos, S. (2018), "Framework for Tourism Industries: Tourism System and Tourism Value Chain", Sotiriadis, M. (Ed.) The Emerald Handbook of Entrepreneurship in Tourism, Travel and Hospitality , Emerald Publishing Limited, Leeds, pp. 19-31. https://doi.org/10.1108/978-1-78743-529-220181002

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The state of tourism and hospitality 2024

Tourism and hospitality are on a journey of disruption. Shifting source markets and destinations, growing demand for experiential and luxury travel, and innovative business strategies are all combining to dramatically alter the industry landscape. Given this momentous change, it’s important for stakeholders to consider and strategize on four major themes:

• The bulk of travel is close to home. Although international travel might draw headlines, stakeholders shouldn’t neglect the big opportunities in their backyards. Domestic travel still represents the bulk of travel spending, and intraregional tourism is on the rise.
• Consumers increasingly prioritize travel—when it’s on their own terms. Interest in travel is booming, but travelers are no longer content with a one-size-fits-all experience. Individual personalization might not always be practical, but savvy industry players can use segmentation and hypothesis-driven testing to improve their value propositions. Those that fail to articulate target customer segments and adapt their offerings accordingly risk getting left behind.
• The face of luxury travel is changing. Demand for luxury tourism and hospitality is expected to grow faster than any other travel segment today—particularly in Asia. It’s crucial to understand that luxury travelers don’t make up a monolith. Segmenting by age, nationality, and net worth can reveal varied and evolving preferences and behaviors.
• As tourism grows, destinations will need to prepare to mitigate overcrowding. Destinations need to be ready to handle the large tourist flows of tomorrow. Now is the time for stakeholders to plan, develop, and invest in mitigation strategies. Equipped with accurate assessments of carrying capacities and enhanced abilities to gather and analyze data, destinations can improve their transportation and infrastructure, build tourism-ready workforces, and preserve their natural and cultural heritages.

Now boarding: Faces, places, and trends shaping tourism in 2024

Global travel is back and buzzing. The amount of travel fell by 75 percent in 2020; however, travel is on its way to a full recovery by the end of 2024. More regional trips, an emerging population of new travelers, and a fresh set of destinations are powering steady spending in tourism.

There’s no doubt that people still love to travel and will continue to seek new experiences in new places. But where will travelers come from, and where will they go?

We share a snapshot of current traveler flows, along with estimates for growth through 2030.

The way we travel now

Which trends are shaping traveler sentiment now? What sorts of journeys do today’s travelers dream about? How much are they willing to spend on their trips? And what should industry stakeholders do to adapt to the traveler psychology of the moment?

To gauge what’s on the minds of present-day travelers, we surveyed more than 5,000 of them. The findings reveal disparate desires, generational divides, and a newly emerging set of traveler archetypes.

Updating perceptions about today’s luxury traveler

Demand for luxury tourism and hospitality is expected to grow faster than for any other segment. This growth is being powered in part by a large and expanding base of aspiring luxury travelers with net worths between $100,000 and $1 million, many of whom are younger and increasingly willing to spend larger shares of their wealth on upscale travel options. The increase is also a result of rising wealth levels in Asia.

We dug deeper into this ongoing evolution by surveying luxury travelers around the globe about their preferences, plans, and expectations. Some widely held notions about luxury travelers—such as how much money they have, how old they are, and where they come from—could be due for reexamination.

Destination readiness: Preparing for the tourist flows of tomorrow

As global tourism grows, it will be crucial for destinations to be ready. How can the tourism ecosystem prepare to host unprecedented volumes of visitors while managing the challenges that can accompany this success? A large flow of tourists, if not carefully channeled, can encumber infrastructure, harm natural and cultural attractions, and frustrate locals and visitors alike.

Now is the time for tourism stakeholders to combine their thinking and resources to look for better ways to handle the visitor flows of today while properly preparing themselves for the visitor flows of tomorrow. We offer a diagnostic that destinations can use to spot early-warning signs about tourism concentration, along with suggestions for funding mechanisms and strategies to help maximize the benefits of tourism while minimizing its negative impacts.

Six trends shaping new business models in tourism and hospitality

As destinations and source markets have transformed over the past decade, tourism and hospitality companies have evolved, too. Accommodation, home sharing, cruises, and theme parks are among the sectors in which new approaches could present new opportunities. Stakeholders gearing up for new challenges should look for business model innovations that will help sustain their hard-won growth—and profits.

Unbundling offerings, cross-selling distinctive experiences, and embracing data-powered strategies can all be winning moves. A series of insight-driven charts reveal significant trends and an outlook on the future.

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UN Tourism | Bringing the world closer

Tourism – an economic and social phenomenon, share this content.

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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.‎

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The Tourism Industry: An Overview

• First Online: 30 September 2017

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• Mark Anthony Camilleri 2  

Part of the book series: Tourism, Hospitality & Event Management ((THEM))

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This chapter introduces its readers to the concept of tourism. It sheds light on the rationale for tourism, as it explains the tourists’ inherent motivations to travel. It also describes different aspects that together make up the tourism industry. Tourists travel to destinations that are accessible to them. They require accommodation if they are visiting a place for more than 24 h. Leisure and business travellers may also visit attractions, and engage themselves in recreational activities. Hence, the tourist destinations should have the right amenities and facilities. In this light, this chapter clarifies how destinations may offer different products to satisfy a wide array of tourists. Tourism products can include; urban (or city) tourism, seaside tourism , rural tourism , ecotourism , wine tourism , culinary tourism , health tourism, medical tourism , religious tourism , cultural (or heritage) tourism , sports tourism , educational tourism , business tourism (including meetings, incentives, conferences and events), among others. In conclusion, this chapter lists major points of interest in North America to clarify how diverse destinations may be appealing to different tourists, for many reasons.

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Department of Corporate Communication, University of Malta, Msida, Malta

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Camilleri, M.A. (2018). The Tourism Industry: An Overview. In: Travel Marketing, Tourism Economics and the Airline Product. Tourism, Hospitality & Event Management. Springer, Cham. https://doi.org/10.1007/978-3-319-49849-2_1

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"People want to travel": 4 sector leaders say that tourism will change and grow

The global travel and tourism industry's post-pandemic recovery is gaining pace as the world’s pent-up desire for travel rekindles. Image:  Unsplash/Anete Lūsiņa

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Shinya katanozaka, gilda perez-alvarado, stephen kaufer.

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• In 2020 alone, the travel and tourism industry lost $4.5 trillion in GDP and 62 million jobs - the road to recovery remains long.
• The World Economic Forum’s latest Travel & Tourism Development Index gives expert insights on how the sector will recover and grow.
• We asked four business leaders in the sector to reflect on the state of its recovery, lessons learned from the pandemic, and the conditions that are critical for the future success of travel and tourism businesses and destinations.

The global travel and tourism sector’s post-pandemic recovery is gaining pace as the world’s pent-up desire for travel rekindles. The difference in international tourist arrivals in January 2021 and a similar period in January 2022 was as much as the growth in all of 2021. However, with $4.5 trillion in GDP and 62 million jobs lost in 2020 alone, the road to recovery remains long.

A few factors will greatly determine how the sector performs. These include travel restrictions, vaccination rates and health security, changing market dynamics and consumer preferences, and the ability of businesses and destinations to adapt. At the same time, the sector will need to prepare for future shocks.

The TTDI benchmarks and measures “the set of factors and policies that enable the sustainable and resilient development of the T&T sector, which in turn contributes to the development of a country”. The TTDI is a direct evolution of the long-running Travel and Tourism Competitiveness Index (TTCI), with the change reflecting the index’s increased coverage of T&T development concepts, including sustainability and resilience impact on T&T growth and is designed to highlight the sector’s role in broader economic and social development as well as the need for T&T stakeholder collaboration to mitigate the impact of the pandemic, bolster the recovery and deal with future challenges and risks. Some of the most notable framework and methodology differences between the TTCI and TTDI include the additions of new pillars, including Non-Leisure Resources, Socioeconomic Resilience and Conditions, and T&T Demand Pressure and Impact. Please see the Technical notes and methodology. section to learn more about the index and the differences between the TTCI and TTDI.

The World Economic Forum's latest Travel & Tourism Development Index highlights many of these aspects, including the opportunity and need to rebuild the travel and tourism sector for the better by making it more inclusive, sustainable, and resilient. This will unleash its potential to drive future economic and social progress.

Within this context, we asked four business leaders in the sector to reflect on the state of its recovery, lessons learned from the pandemic, and the conditions that are critical for the future success of travel and tourism businesses and destinations.

Have you read?

Are you a 'bleisure' traveller, what is a ‘vaccine passport’ and will you need one the next time you travel, a travel boom is looming. but is the industry ready, how to follow davos 2022, “the way we live and work has changed because of the pandemic and the way we travel has changed as well”.

Tony Capuano, CEO, Marriott International

Despite the challenges created by the COVID-19 pandemic, the future looks bright for travel and tourism. Across the globe, people are already getting back on the road. Demand for travel is incredibly resilient and as vaccination rates have risen and restrictions eased, travel has rebounded quickly, often led by leisure.

The way many of us live and work has changed because of the pandemic and the way we travel has changed as well. New categories of travel have emerged. The rise of “bleisure” travel is one example – combining elements of business and leisure travel into a single trip. Newly flexible work arrangements, including the opportunity for many knowledge workers to work remotely, have created opportunities for extended travel, not limited by a Monday to Friday “9 to 5” workweek in the office.

To capitalize on this renewed and growing demand for new travel experiences, industry must join governments and policymakers to ensure that the right conditions are in place to welcome travellers as they prepare to get back on the road again, particularly those who cross international borders. Thus far, much of the recovery has been led by domestic and leisure travel. The incremental recovery of business and international travel, however, will be significant for the broader industry and the millions who make their livelihoods through travel and tourism.

Looking ahead to future challenges to the sector, be they public health conditions, international crises, or climate impacts, global coordination will be the essential component in tackling difficult circumstances head-on. International agreement on common – or at least compatible – standards and decision-making frameworks around global travel is key. Leveraging existing organizations and processes to achieve consensus as challenges emerge will help reduce risk and improve collaboration while keeping borders open.

“The travel and tourism sector will not be able to survive unless it adapts to the virtual market and sustainability conscience travellers”

Shinya Katanozaka, Representative Director, Chairman, ANA Holdings Inc.

At a time when people’s movements are still being restricted by the pandemic, there is a strong, renewed sense that people want to travel and that they want to go places for business and leisure.

In that respect, the biggest change has been in the very concept of “travel.”

A prime example is the rapid expansion of the market for “virtual travel.” This trend has been accelerated not only by advances in digital technologies, but also by the protracted pandemic. The travel and tourism sector will not be able to survive unless it adapts to this new market.

However, this is not as simple as a shift from “real” to “virtual.” Virtual experiences will flow back into a rediscovery of the value of real experiences. And beyond that, to a hunger for real experiences with clearer and more diverse purposes. The hope is that this meeting of virtual and actual will bring balance and synergy the industry.

The pandemic has also seen the emergence of the “sustainability-conscious” traveller, which means that the aviation industry and others are now facing the challenge of adding decarbonization to their value proposition. This trend will force a re-examination of what travel itself should look like and how sustainable practices can be incorporated and communicated. Addressing this challenge will also require stronger collaboration across the entire industry. We believe that this will play an important role in the industry’s revitalization as it recovers from the pandemic.

How is the World Economic Forum promoting sustainable and inclusive mobility systems?

The World Economic Forum’s Platform for Shaping the Future of Mobility works across four industries: aerospace and drones; automotive and new mobility; aviation travel and tourism; and supply chain and transport. It aims to ensure that the future of mobility is safe, clean, and inclusive.

• Through the Clean Skies for Tomorrow Coalition , more than 100 companies are working together to power global aviation with 10% sustainable aviation fuel by 2030.
• In collaboration with UNICEF, the Forum developed a charter with leading shipping, airlines and logistics to support COVAX in delivering more than 1 billion COVID-19 vaccines to vulnerable communities worldwide.
• The Road Freight Zero Project and P4G-Getting to Zero Coalition have led to outcomes demonstrating the rationale, costs and opportunities for accelerating the transition to zero emission freight.
• The Medicine from the Sky initiative is using drones to deliver vaccines and medicine to remote areas in India, completing over 300 successful trials.
• The Forum’s Target True Zero initiative is working to accelerate the deployment and scaling of zero emission aviation, leveraging electric and hydrogen flight technologies.
• In collaboration with the City of Los Angeles, Federal Aviation Administration, and NASA, the Forum developed the Principles of the Urban Sky to help adopt Urban Air Mobility in cities worldwide.
• The Forum led the development of the Space Sustainability Rating to incentivize and promote a more safe and sustainable approach to space mission management and debris mitigation in orbit.
• The Circular Cars Initiative is informing the automotive circularity policy agenda, following the endorsement from European Commission and Zero Emission Vehicle Transition Council countries, and is now invited to support China’s policy roadmap.
• The Moving India network is working with policymakers to advance electric vehicle manufacturing policies, ignite adoption of zero emission road freight vehicles, and finance the transition.
• The Urban Mobility Scorecards initiative – led by the Forum’s Global New Mobility Coalition – is bringing together mobility operators and cities to benchmark the transition to sustainable urban mobility systems.

Contact us for more information on how to get involved.

“The tourism industry must advocate for better protection of small businesses”

Gilda Perez-Alvarado, Global CEO, JLL Hotels & Hospitality

In the next few years, I think sustainability practices will become more prevalent as travellers become both more aware and interested in what countries, destinations and regions are doing in the sustainability space. Both core environmental pieces, such as water and air, and a general approach to sustainability are going to be important.

Additionally, I think conservation becomes more important in terms of how destinations and countries explain what they are doing, as the importance of climate change and natural resources are going to be critical and become top of mind for travellers.

The second part to this is we may see more interest in outdoor events going forward because it creates that sort of natural social distancing, if you will, or that natural safety piece. Doing outdoor activities such as outdoor dining, hiking and festivals may be a more appealing alternative to overcrowded events and spaces.

A lot of lessons were learned over the last few years, but one of the biggest ones was the importance of small business. As an industry, we must protect small business better. We need to have programmes outlined that successfully help small businesses get through challenging times.

Unfortunately, during the pandemic, many small businesses shut down and may never return. Small businesses are important to the travel and tourism sector because they bring uniqueness to destinations. People don’t travel to visit the same places they could visit at home; they prefer unique experiences that are only offered by specific businesses. If you were to remove all the small businesses from a destination, it would be a very different experience.

“Data shows that the majority of travellers want to explore destinations in a more immersive and experiential way”

Steve Kaufer, Co-Founder & CEO, Tripadvisor

We’re on the verge of a travel renaissance. The pandemic might have interrupted the global travel experience, but people are slowly coming out of the bubble. Businesses need to acknowledge the continued desire to feel safe when travelling. A Tripadvisor survey revealed that three-quarters (76%) of travellers will still make destination choices based on low COVID-19 infection rates.

As such, efforts to showcase how businesses care for travellers - be it by deep cleaning their properties or making items like hand sanitizer readily available - need to be ingrained within tourism operations moving forward.

But travel will also evolve in other ways, and as an industry, we need to be prepared to think digitally, and reimagine our use of physical space.

Hotels will become dynamic meeting places for teams to bond in our new hybrid work style. Lodgings near major corporate headquarters will benefit from an influx of bookings from employees convening for longer periods. They will also make way for the “bleisure” traveller who mixes business trips with leisure. Hotels in unique locales will become feasible workspaces. Employers should prepare for their workers to tag on a few extra days to get some rest and relaxation after on-location company gatherings.

Beyond the pandemic, travellers will also want to explore the world differently, see new places and do new things. Our data reveals that the majority want to explore destinations in a more immersive and experiential way, and to feel more connected to the history and culture. While seeing the top of the Empire State building has been a typical excursion for tourists in New York city, visitors will become more drawn to intimate activities like taking a cooking class in Brooklyn with a family of pizza makers who go back generations. This will undoubtedly be a significant area of growth in the travel and tourism industry.

Governments would be smart to plan as well, and to consider an international playbook that helps prepare us for the next public health crisis, inclusive of universal vaccine passports and policies that get us through borders faster.

Understanding these key trends - the ongoing need to feel safe and the growing desire to travel differently - and planning for the next crisis will be essential for governments, destinations, and tourism businesses to succeed in the efforts to keep the world travelling.

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Chapter 7. Travel Services

7.1 Components of Travel Services

The travel services sector helps travellers arrange and reserve their vacation or business trips (StatsCan, 2018). This sector is made up of businesses and organizations that work in a coordinated effort to provide travellers with seamless arrangements to maximize their travel experience. Go2HR describes travel services experiences and employment opportunities as follows:

Within this sector, you have the flexibility of working in various capacities with event and conference planning organizations, travel companies and organizations, as well as associations, government agencies and companies that specialize in serving the needs of the tourism sector as a whole. (go2HR, Essential Tips – Travel Services, 2020)

Before we move on, let’s explore the term travel services a little more. As detailed in Chapter 1 , Canada, the United States, and Mexico have used the NAICS guidelines, which define the tourism industry as consisting of transportation, accommodation, food and beverage, recreation and entertainment, and travel services (Tourism HR Canada, 2020). These five sectors are defined and further detailed in B.C. by the B.C. government (BC Government, 2014) and go2HR on their website (go2HR, Career Explorer, 2020).

For many years, however, the tourism industry was classified into eight sectors: accommodations, adventure and recreation, attractions, events and conferences, food and beverage, tourism services, transportation, and travel trade (Yukon Department of Tourism and Culture, 2020; go2HR, 2020, What is Tourism? – Travel Services).

Tourism services support industry development and the delivery of guest experiences, and some of these are missing from the NAICS classification. To ensure you have a complete picture of the tourism industry in BC, this chapter will cover both the NAICS travel services activities and some additional tourism services.

First, we’ll review the components of travel services as identified under NAICS, as well as exploring popular careers within:

• Travel agencies (brick and mortar)
• Online Travel Agencies/OTA
• Tour operators
• Destination marketing organizations (DMOs)

Other Organizations

Following these definitions and descriptions, we’ll take a look at some other support functions that fall under tourism services. These include sector organizations, tourism and hospitality human resources organizations, training providers, educational institutions, government branches and ministries, economic development and city planning offices, and consultants.

Finally, we’ll look at issues and trends in travel services, both at home, and abroad.

While the application of travel services functions are structured somewhat differently around the world, there are a few core types of travel services in every destination. Essentially, travel services are those processes used by guests to book components of their trip. Let’s explore these services in more detail.

Travel Agencies

A travel agency is a business that operates as the intermediary between the travel industry (supplier) and the traveller (purchaser). Part of the role of the travel agency is to market prepackaged travel tours and holidays to potential travellers. The agency can further function as a broker between the traveller and hotels, car rentals, and tour companies (Goeldner & Ritchie, 2003). Travel agencies can be small and privately owned or part of a larger entity.

A travel agent is the direct point of contact for a traveller who is researching and intending to purchase packages and experiences through an agency. Travel agents can specialize in certain types of travel including specific destinations; outdoor adventures; and backpacking, rail, cruise, cycling, or culinary tours, to name a few. These specializations can help travellers when they require advice about their trips. Some travel agents operate at a fixed address and others offer services both online and at a bricks-and-mortar location. Travellers are then able to have face-to-face conversations with their agents and also reach them by phone or by email. To promote professionalism within the travel industry, travel counsellors can apply for a specialized diploma or certificate in travel from ACTA (ACTA, 2020a; go2HR, 2020a).

Today, travellers have the option of researching and booking everything they need online without the help of a travel agent. As technology and the internet are increasingly being used to market destinations, people can now choose to book tours with a particular agency or agent, or they can be identified as seeking Domestic Independent Travel (DIT) or Foreign Independent Travel (FIT) , by creating their own itineraries from a number of suppliers.

Online Travel Agents (OTAs)

Increasing numbers of travellers are turning to online travel agents (OTAs), 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 iTravel2000, Booking.com, Expedia.ca, Hotwire.com, and Kayak.com. OTAs continue to gain popularity with the travelers; in 2012, they reported online sales of almost $100 billion (Carey, Kang, & Zea, 2012) and almost triple that figure, upward of $278 billion, in 2013 ( The Economist , 2014).

In early 2015 Expedia purchased Travelocity for $280 million, merging two of the world’s largest travel websites. Expedia became the owner of Hotels.com, Hotwire, Egencia, and Travelocity brands, facing its major competition from Priceline (Alba, 2015).

Although OTAs can provide lower-cost travel options to travellers and the freedom to plan and reserve when they choose, they have posed challenges for the tourism industry and travel services infrastructure. As evidenced by the merger of Expedia and Travelocity, the majority of popular OTA sites are owned by just a few companies, causing some concern over lack of competition between brands. Additionally, many OTAs charge accommodation providers and operators a commission to be listed in their inventory system. Commission-based services, as applied by Kayak, Expedia, Hotwire, Hotels.com, and others, can have an impact on smaller operators who cannot afford to pay commissions for multiple online inventories (Carey, Kang & Zea, 2012). Being excluded from listings can decrease the marketing reach of the product to potential travellers, which is a challenge when many service providers in the tourism industry are small or medium-sized businesses with budgets to match.

While the industry and communities struggle to keep up with the changing dynamics of travel sales, travellers are adapting to this new world order. One of these adaptations is the ever-increasing use of mobile devices for travel booking. The Expedia Future of Travel Report found that 49% of travellers from the millennial generation (which includes those born between 1980 and 1999) use mobile devices to book travel (Expedia Inc., 2014), and these numbers are expected to continue to increase. Travel agencies are reacting by developing personalized features for digital travellers and mobile user platforms (ETC Digital, 2014). With the number of smartphone users expected to reach 1.75 billion in 2014 (CWT Travel Management Institute, 2014) these agencies must adapt as demand dictates.

A key feature of travel agencies’ (and to a growing extent transportation carriers) mobile services includes the ability to have up-to-date itinerary changes and information sent directly to consumers’ phones (Amadeus, 2014). By using mobile platforms that can develop customized, up-to-date travel itineraries for clients, agencies and operators are able to provide a personal touch, ideally increasing customer satisfaction rates.

Take a Closer Look: PATA — The Future of Travel is Personalisation at Scale

“The industry has changed monumentally over the past decade. The rise of meta-search websites and sharing economy services like Airbnb is giving travellers more control and choice than ever before. However, this is nothing compared to the changes that are on the horizon as technologies like mobile, AR, AI, and VR become mainstream.

One thing is certain; the pace of change is accelerating. Against this backdrop, the travel industry as a whole will need to fundamentally shift its focus to continuous innovation.” (PATA, 2019)

Despite the growth and demand for OTAs, brick and mortar travel agencies are still in demand by travellers (IBISWorld, 2019) as they have both an online presence and physical locations. The COVID-19 pandemic may see an increase in travellers relying on personal contact with brick and mortar travel agencies but at a distance through mail and phone.

Tour Operators

A tour operator packages all or most of the components of an offered trip and then sells them to the traveller. These packages can also be sold through retail outlets or travel agencies (CATO, 2020; Goeldner & Ritchie, 2003). 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 traveller could if purchasing individually. Tour operators generally sell to the leisure market.

Inbound, Outbound, and Receptive Tour Operators

Tour operators may be inbound, outbound, or receptive:

• Inbound tour operators  bring travellers into a country as a group or through individual tour packages (e.g., a package from China to visit Canada).
• Outbound tour operators work within a country to take travellers to other countries (e.g., a package from Canada to the United Kingdom).
• Receptive tour operators (RTOs) are not travel agents, and they do not operate the tours. They represent the various products of tourism suppliers to tour operators in other markets in a business-to-business (B2B) relationship. Receptive tour operators are key to selling packages to overseas markets (Destination BC, 2020) and creating awareness around possible product.

Destination Marketing Organizations

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” (Destinations BC, 2020).

Spotlight On: Destinations International

Destinations International is the global trade association for official DMOs. It is made up of over 600 official DMOs in 15 countries around the world. DMAI provides its members with information, resources, research, networking opportunities, professional development, and certification programs. For more information, visit the Destinations International website.

With the proliferation of other planning and booking channels, including OTA s, today’s DMOs are shifting away from travel services functions and placing a higher priority on destination management components.

Working Together

One way tour operators, DMOs, and travel agents work together is by participating in familiarization tours (FAMs for short). These are usually hosted by the local DMO and include visits to different tour operators within a region. FAM attendees can be media, travel agents, RTO representatives, and tour operator representatives. FAMs are frequently low to no cost for the guests as the purpose is to orient them to the tour product or experience so they can promote or sell it to potential guests.

The majority of examples in this chapter so far have pertained to leisure travellers. There are, however, specialty organizations that deal specifically with business trips.

Spotlight On: Global Business Travel Association (GBTA) Canada

“GBTA Canada is the voice of the Canadian business travel industry. We believe in providing the business travel and meetings community with a global platform to serve as a resource library for their peers, to implement world-class Conferences, workshops and virtual meetings, and to foster an interactive network of innovation and support.” The GBTA state that their economic impact contributes $23.5 billion CAD in Canadian business travel (Economic Impact Study) and “$435+ billion CAD of business travel and meetings expenditures represented globally.” Visit the GBTA website .

Business Travel Planning and Reservations

Unlike leisure trips, which are generally planned and booked by end consumers using their choice of tools, business travel often involves a travel management company, or its online tools. Travel managers negotiate with suppliers and ensure that all the trip components are cost effective and comply with the policies of the organization.

Many business travel planners rely on global distribution systems (GDS) to price and plan components. GDS combine information from a group of suppliers, such as airlines. In the past, this has created a chain of information from the supplier to GDS to the travel management company. Today, however, there is a push from airlines (through the International Air Transport Association’s Resolution 787) to dissolve the GDS model and forge direct relationships with buyers (BTN Group, 2014).

Destination Management Companies

According to the Association of Destination Management Executives International (ADMEI), a destination management company (DMC) specializes in designing and implementing corporate programs, and “is a strategic partner to provide creative local experiences in event management, tours/activities, transportation, entertainment, and program logistics” (ADMEI, 2020). The packages produced by DMCs are extraordinary experiences rather than general business trips. These are typically used as employee incentives, corporate retreats, product launches, and loyalty programs. DMCs are the one point of contact for the client corporation, arranging for airfare, airport transfers, ground transportation, meals, special activities, and special touches such as branded signage, gifts, and decor (ADMEI, 2020). The end user is simply given (or awarded) the package and then liaises with the DMC to ensure particular arrangements meet his or her needs and schedule.

As you can see, travel services range from online to personal, and from leisure to business applications. Now that you have a general sense of the components of travel services, let’s look at some examples in Canada and BC.

Under NAICS, businesses and functions that assist with planning and reserving components of the visitor experience.

Other services that work to support the development of tourism and the delivery of guest experiences.

A business that provides a physical location for travel planning requirements.

An individual who helps the potential traveller with trip planning and booking services, often specializing in specific types of travel.

A trade organization established in 1977 to ensure high standards of customer service, engage in advocacy for the trade, conduct research, and facilitate travel agent training.

A service that allows the traveller to research, plan, and purchase travel without the assistance of a person, using the internet on sites such as Expedia.ca or Hotels.com.

An operator who packages suppliers together (hotel + activity) or specializes in one type of activity or product.

An operator who packages products together to bring visitors from external markets to a destination.

An operator who packages and sells travel products to people within a destination who want to travel abroad.

Someone who represents the products of tourism suppliers to tour operators in other markets in a business-to-business (B2B) relationship.

Also known as a destination management organization; includes national tourism boards, state/provincial tourism offices, and community convention and visitor bureaus.

Tours provided to overseas travel agents, travel agencies, RTOs, and others to provide information about a certain product at no or minimal cost to participants. The short form is pronounced like the start of the word "family" (not as each individual letter).

A company that creates and executes corporate travel and event packages designed for employee rewards or special retreats.

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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Tourism/Introduction

This topic will assist you in developing an understanding of the many aspects of the tourism industry, and an appreciation of its place in the global and local economies.

This topic is used in:

• International tourism
• 1 Learning support and certification
• 2 Introduction
• 3 What defines tourism
• 4.1 International Organisations
• 4.2 Regional International Organizations
• 4.3 National Organisations
• 4.4 Local Authorities
• 5.1.1 Water Transportation
• 5.1.3 Land Transportation
• 5.2.1 Grading Systems
• 5.3 Activities and Attractions
• 5.5.1 Food and Beverage
• 5.5.2 Shopping
• 5.5.3 Insurance
• 5.5.4 Foreign Transactions
• 5.5.5 Commission Charges
• 5.5.6 Currency Codes
• 5.5.7 Currency Exchange Rates
• 5.5.8 Tourist publications and information
• 5.5.9 Entertainment
• 5.6 Indirect Elements
• 6.1 Economic Impacts of Tourism
• 6.3 Multiplier Effect
• 6.4 Leakages
• 6.5 Balance of payments
• 6.6 Employment
• 6.7 Investment and development
• 6.8 Social and Environmental Impacts of Tourism
• 8 Review Questions
• 9 References

Learning support and certification

Formal learning support and certification services for this topic is offered by:

Introduction

Tourism is one of the world's fastest growing industries as well as the major source of foreign exchange earnings and employment for many developing countries.

World tourism demand continues to exceed expectations, showing resilience against extraneous factors. According to the UNWTO World Tourism Barometer, released (November 2006):

• In the first eight months of 2006 international tourist arrivals totaled 578 million worldwide (+4.5%), up from 553 million in the same period of 2005, a year which saw an all-time record of 806 million people traveling internationally.
• Growth is expected to continue in 2007 at a pace of around 4% worldwide.

Tourism is vital to the well being of many countries, because of the income generated by the consumption of goods and services by tourists, the taxes levied on businesses in the tourism industry and the opportunity for employment and economic advancement by working in the industry.

What defines tourism

The concept of tourism refers to the broad framework that identifies tourism’s essential characteristics and distinguishes tourism from similar, often related but different phenomena The two terms ‘travel’ and ‘tourism’ can be used in isolation or together to describe three concepts:

• The movement of the people
• A sector of the economy or an industry
• A broad system of interacting relationships of people, their needs to travel outside their communities and services that attempt to respond to these needs by supplying products
• International Tourism: Consists of inbound tourism, visits to a country by non-residents, and outbound tourism, residents of a country visiting another country
• Internal Tourism: Residents of a country visiting their own country
• Domestic Tourism: Internal tourism plus inbound tourism (the tourism market of accommodation facilities and attractions within a country)
• National Tourism: Internal tourism plus outbound tourism (the resident tourism market for travel agents and airlines)

According to the WTO tourists are people who: “travel to and stay in places 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.”

Devised by WTO was endorsed by the UN Statistical Commission in 1993 following an International Government Conference held in Ottawa, Canada in 1991.

Before people can experience tourism they usually need at least:

• disposable income, ie. money to spend on non-essentials
• leisure time
• tourism infrastructure, such as transport and accommodation.
• Other factors such as health and motivation to travel are also important.

As a service industry, tourism has numerous tangible and intangible elements. Major tangible elements include transportation, accommodation, and other components of the hospitality industry. Major intangible elements relate to the purpose or motivation for becoming a tourist, such as rest, relaxation, the opportunity to meet new people and experience other cultures, or simply to do something different and have an adventure.

Following is a range of aspects to do with the tourism industry. Please feel free to expand the dot points with your own findings and research.

Structure and organization

The tourism industry is based on many different components and interrelated parts. For example, transport, accommodation, attractions, activities, marketing and government regulation. Many businesses span more than one sector and the impacts in one part of the tourism industry have significant implications for other sectors.

The tourism industry includes:

• those sectors which enable the tourist to travel to and from the destination (for example travel agents, airlines, bus companies, tour operators and rental car companies)
• those sectors which are part of the product at the destination (for example, accommodation, facilities and attractions)
• the human component of tourism (the labour force)
• public sector or government agencies, regional tourism organisations, professional associations and industry training organisations.

((Figure 4.1 P94 – Tourism,Principles,Practices, philosophies))

International Organisations

World Tourism Organisation (UNWTO) is the most widely recognised and the leading international organisation in travel and tourism today. It is a specialised agency of the United Nations. It serves as a global forum for tourism policy and a practical source of tourism know-how. With its headquarters in Madrid, Spain the World Tourism Organisation plays a central and decisive role in promoting development of responsible, sustainable and universally accessible tourism, with the aim of contributing to economic development, international understanding, peace prosperity and universal respect for and observance of human rights and fundamental freedoms.

Its membership includes 150 countries and territories and more than 450 affiliate members representing local governments, tourism associations, educational institutes and private sector companies including airlines, hotels and tour operators.

Other international organisations which have a specialised interest in tourism include the International Civil Aviation Organisation (ICAO) which is a specialised agency of the United Nations and is concerned with the development of international civil aviation, and the International Governmental Maritime Consultative Organisation (IMCO) which is an inter-governmental organisation concerned with co-operation in sea transport.

The International Air Transport Association (IATA) is an association of airlines concerned with the development and regulation of the air transportation industry. Members comprise of approximately 80% of the world’s international airlines.

Regional International Organizations

The Pacific Asia Travel Association (PATA) is a mix governmental and non-governmental bodies that work together to promote tourism industry professionalism in the Asia and Pacific area. http://www.pata.org

European Civil Aviation Conference (ECAC) this is a regional organisation with a specialised interest in tourism and concerned with co-operation and co-ordination of European airlines. www.ecac-ceac.org

European Travel Commission is a strategic alliance that provides for the collaboration between thirty-three European national tourism organisations. The commission’s goal is to attract customers from overseas markets to come to Europe through promotional campaigns and industry trade shows. www.visiteurope.com

National Organisations

Public (government) sector

The major reason for government involvement in tourism is concerned with the welfare of their citizens and the overall welfare of their country. This relates to areas such as economic stability, protection of natural resources, national security, public health and employment. Tourism activity can occur in all of these areas so governments are concerned that it is regulated and directed so as to ensure maximum benefit for the country and the negative factors are minimised.

The degree of control differs between each country. State organisations in the former Soviet Union had almost total control of tourism from the formation of policy to running the only travel agency Intourist, airline Aeroflot and over 40000 rooms.

The only remaining countries that still control tourism completely so that independent travel is impossible are North Korea and Turkmenistan.

In capitalist countries, the mix of private-sector and public-sector involvement in tourism varies considerably between each country.

The United Nations Conference on International Travel and Tourism in Rome in 1963 adopted the following resolution:

Virtually every country in the world has a national body responsible for tourism. It can be part of a ministry, a constituted part of a government department or an organisation with a separate legal status. Generally the role of a NTO will be to ensure appropriate development and promotion of a nation as a tourism destination. This can include the following functions:

• information and promotion within the country
• overseas promotional activities
• international relations
• development of tourist areas
• overall tourism policy and promotion
• in supporting key tourism interests in a time of financial crisis

A list of NTO’s worldwide is found at http://www.towd.com For example:

• Canadian Tourism Commission
• Tourism New Zealand
• Japan National Tourist Organisation

Local Authorities

Below the National Tourism Organisations, in most countries, there is often a complex web of organisations which complement the work of the NTO at the regional and local level. Their activities are often a scaled-down version of the NTO’s work at a regional level; they often implement national policy and pursue integrated activities with the NTO providing guidance.

((Presentation ‘Key elements of Tourism’ to be inserted here))

Direct elements of the Tourism Industry - Those areas of the tourism industry which come into direct contact with tourists

Accommodation

• Attractions

Ancillary Services

Indirect elements of the Tourism Industry - Often called support sectors. Those parts of the tourism industry which may not come into direct contact with tourists, but without the rest of the industry could not function.

• Infrastructure
• Communications
• Public Toilets
• Manufacturing
• Building Industry
• Electricity
• Water supply
• Sewerage and waste disposal

Tourism, for some countries, is of almost importance. Countries such as Grenada etc.

Direct Elements

Transportation, water transportation.

Transport by water can be an attraction in itself whether you are travelling on a cruise ship in the Mediterranean or on a ferry between Wellington and Picton. Travelling by water has been more popular as tourists seek to avoid the frustrations of air travel with its airport delays, congestion and the lack of comfort in the air (unless travelling first class!). Cruising has undergone a revival and all forms of recreational pursuits on the water including yachting and jet boating have expanded to fulfil this demand.

Advances in aviation technology has meant that travel by air is now relatively safe, economical, quick and reasonably comfortable. The development of the jet airliner after World War II to the first jumbo jet, the Boeing 747 in 1970 led to rapid falls in seat cost per passenger kilometre. The advances have continued with the Airbus ‘super jumbo’ A380 a double-decker aircraft seating between 550-800 passengers enters service in late 2007 with Singapore Airlines operating the aircraft on the London -Singapore – Sydney route.

A380 cabin cross section showing economy class seating

There are two basic type of air transport operation:

• Scheduled services
• Charter services

Scheduled services operate on defined routes, domestic or international, for which licences have been granted by the governments concerned. The airline must operate on the basis of their timetable regardless of the passenger loading.

Fully state owned carriers such as Singapore Airlines and the Emirates are known as the national flag-carriers. Even when the carrier has been privatised as in the case of British Airways the airline is still seen as the national flag carrier. Air New Zealand was privatised but after the 9/11 disaster 80 per cent of the carrier was returned into public ownership. Air transport is very important to the national economy of a country and a government will often assist in times of crisis.

Low Cost Airlines LCA’s or LCLF (low cost low fare) carriers has been a major development in scheduled services in the last decade. A total of 80 million people travelled on European no-frills carriers in 2004 up from 47 million in 2003. These airlines create a cost-competitive advantage by using some of the following means:

• operate from secondary airports which have lower landing fees and are less congested allowing quicker turnarounds and more flights
• operate on high density, short-haul routes with one class of seating
• charge passengers for food, drink and entertainment
• sell only via the Internet
• tickets are inflexible – generally non-refundable
• not operating frequent flying programmes and keeping airport passenger services to a minimum

Charter services do not operate according to a published timetable and so do not have to operate with uneconomical loadings. They are not advertised or promoted by the airlines themselves as they are usually charted by intermediaries – usually tour operators. Many charter flights are sold as part of a package holiday in which the price paid includes flights, accommodation and other services.. Such packages are frequently cheaper than regular schedule airline fares. Furthermore charter airlines frequently operate on routes, or to airports, where there is no scheduled service. Much of the traffic through small and medium sized airports in the United Kingdom consists of charter flights, and the survival of these airports often depends on the airline landing fees they get from the charter companies.

Although charter airlines typically carry passengers who have booked individually or as small groups to beach resorts, historic towns, or cities where a cruise ship is awaiting them, sometimes an aircraft will be chartered by a single group such as members of a company, a sports team, or to travel to a major event.

Many airlines operating regular scheduled services (i.e., for which tickets are sold directly to passengers) have set up charter divisions, though these have not always proved competitive with the specialist charter . In New Zealand, Freedom Air was established by the Mount Cook Group in response to the competition from the charter airline, Kiwi Air (went in to voluntary liquidation in 1996). Freedom Air now operates as a scheduled airline from smaller airports eg Dunedin and Hamilton. The economics of charter flights demand that the flights should operate on the basis of near 100% seat occupancy.

Land Transportation

Land transportation can be used for travelling from home to a host destination, within the destination and between the host destinations.

Tourists can use privately owned cars for independent and flexible holidays both domestic and international. They can take day excursions or longer trips. The explosion in private car ownership has changed the tourism industry by establishing a need for motels, bed and breakfasts, home stays, roadside cafes and car ferry services particularly in Europe.

The car rental business is divided into two categories, the large international companies e.g. Hertz, Avis, Budget and the small, locally based companies. The larger companies will have contracts with airports and railways maintaining a desk at the location for easier collection of vehicles, links with airlines and hotels, (some large hotel chains offering desk space in their reception area) and access to their business through a computer reservation system (CRS) and website.

Rail travel has declined in popularity because of the rise in ownership of private vehicles, the advent of jet aircraft and the failure of rail operators around the world to adapt to changing tourists needs. The Orient Express (www.orient-expresstrains.com), the Trans-Siberian Railway and the Tranz Alpine railway (www.tranzscenic.co.nz) are all well known for their sight seeing appeal and are attractions in their own right. Rail can provide efficient links between airports and city centres and can carry large numbers of passengers and luggage. E.g. London, Frankfurt, Paris and Rome. Trains often have an advantage over coach travel as they are a lot faster. Inter-city express services operate in Britain, Europe, U.S.A. and Japan. For rail travel within a city, tourists tend to travel by underground trains such as the ‘Tube’ in London, Le Metro in Paris and the ‘Bart’ in San Francisco, Hong Kong, Singapore, Rome and Prague also have their own underground rail systems. Tickets offering unlimited travel by train, marketed to inbound tourists and only sold prior to departure, have boosted sales of rail travel. These included Eurailpasses in Europe and Britrail pass in Britain.

These are becoming increasingly popular both in New Zealand and overseas especially in the USA where more than 25 million Americans make use of them each year. While not cheap to hire, they have the advantage of flexibility and independence providing both transportation and accommodation.

Coach operations can be categorised as follows:

• express coach services, domestic and international
• private hire services
• tour and excursion operations
• transfer services

Greyhound in the USA is one of the most famous inter city express coach operators but must compete with budget airlines and AMTRAK rail services for its customers. In New Zealand, the Intercity bus service operates between major cities. Coaches can be hired by groups to travel to special events e.g. Millbrook concerts or for educational purposes e.g. tourism students educational tours. Escorted package tours are the most visible use of coaches in the travel industry where there is a combination of accommodation, sightseeing by coach and transportation between cities. E.g. Trafalgar Tours, Contiki Tours. The majority of coaching holidays are booked by the over-45s. City sightseeing tours for half-day or full-day are usually undertaken by coaches or mini-buses. They can be specialised coaches such as London’s double-decker buses or open-decked used in Auckland.

Transfers from airports to hotels are often by provided coach transportation especially when the distance makes the cost of travelling by taxi prohibitive. Some accommodation providers will also provide complimentary transfers by mini-coach or they will be included in the cost of the package holiday.

The accommodation sector provides an enormous variety of accommodation types to suit a wide range of visitors. Accommodation ranges from luxury 5 star hotels which provide facilities and services such as 24 hour room service, gyms, swimming pools etc. to camping grounds where the visitor is provided with a patch of ground on which to pitch a tent. Classification of different types of accommodation is very difficult as they can mean something different in another country. In the USA, the meaning for an ‘inn’ is hotel or motel style accommodation usually operated by a chain e.g. Holiday Inns. In Britain, and ‘inn’ would describe pub-style accommodation offering bed and breakfast style accommodation.

Grading Systems

There are many grading systems recognised by visitors and the accommodation industry. Grading Systems are used to encourage and ensure a consistency of quality.

Systems may be administered by public organisations or privately by organisations such as accommodation chains and franchises. The most recognisable of these grading systems is the “star” system where individual accommodation is rated depending on its levels of service, cleanliness, décor and facilities. For instance most people recognise that a 5 star hotel will have excellent service, be exceptionally clean and tidy with housekeeping staff on call 24 hours, have up to date, luxurious décor and have a wide range of facilities on offer. A 3 star hotel on the other hand will have fewer facilities, less luxurious décor and more limited service, e.g. a limited 24 hour room service menu instead of the entire restaurant menu.

While this “star” system is recognised internationally it is not administered at an international level, but rather at a national or in some cases regional level. This leads to inconsistencies as to what the star grades actually mean. Many national tourism organisations are now actively developing standardised grading systems and encouraging accommodation providers to allow their accommodation to be graded.

The benefits of this are:

• Visitors can easily choose accommodation which will suit their needs and budget, while being assured of quality.
• Accommodation providers have a clear understanding as to what standards are expected of them.
• Accommodation providers can use their rating on their promotional material.
• As more accommodation businesses join the grading scheme the over all quality of a destinations accommodation improves.
• This gives visitors an overall impression of the destination as one of quality.

New Zealand uses the Qualmark model to grade its accommodation. This model is recognised internationally and uses a Qualmark star grading of 1 to 5. Accommodation is rated by type:

• Holiday home
• Holiday park
• Student accommodation
• Self contained & serviced

In the United Kingdom, accommodation is graded according to stars, diamonds or crowns. In the USA a 5 star hotel would be graded as ‘deluxe’ then to ‘first class’ to ‘superior’ and the minimum grading would be ‘tourist’ or ‘budget’.

Activities and Attractions

All destinations require features that will attract tourists to come and see and experience these activities and attractions. They can range from physical features; beauty of the mountains to the quality of a beach to activities such as jet boating down a river or shopping and entertainment.

Attractions can be categorised as either natural which includes mountains, geothermal areas, forests or constructed attractions which must be created and maintained. Examples of constructed attractions are amusement parks, museums and art galleries, wildlife parks, events, staged entertainment, cultural exhibitions, gardens and historical buildings.

Also known as the travel sector, sales involves the distribution of tourism products to the consumer through retail travel agents, tour operators and wholesalers. As already demonstrated the tourism product is diverse and includes transport, attractions/activities, accommodation and ancillary services. The sales sector is especially important in tourism because the customer and the service are geographically separated. For example, a customer in Brisbane may purchase the bulk of their Central Otago skiing holiday at home, before they leave, including: air tickets, transfers, hire car, hotel accommodation and ski passes.

The tourism product can be sold in a variety of ways:

1.The customer purchases directly from the supplier (principal) Many companies such as Air New Zealand are encouraging their customers to do this, especially for domestic flights. The growth in internet use and the ease of gaining information and booking via the web means more and more visitors are choosing to book tourism products themselves.

Advantages for the supplier are more profit as no commission has to be paid to intermediary, save time and reduce possibility of mistakes and supplier maintains control of sale e.g. a hotel could offer an upgrade to a suite to promote future business with customer. Disadvantages would be increased cost to supplier in establishing an office to promote their product and can antagonise intermediaries

2.The customer accesses the supplier through an intermediary Intermediaries include retail travel agents, conference planners and information offices (I-Site in New Zealand). Sometimes organisations usually considered to fall within the other sectors may also act as intermediaries e.g. a hotel booking guests into an activity and taking payment, or a tour company booking clients into accommodation. Intermediaries usually gain a commission of between 10 and 20% for making bookings.

An intermediary will provide a service that adds value for the traveller. For example, a travel agent may negotiate with an airline for special rates or conditions, or they may offer value in other ways such as providing specialised knowledge or a greater range of choices for itinerary planning. Travel agents may specialise in particular destinations, modes of travel or provide services for niche market segments.

3.The customer accesses the supplier through two intermediaries. Travel agents will often use wholesalers to book products for their clients. Wholesalers negotiate with suppliers and sell products such as all-inclusive tours. Many retail travel agencies have wholesaling arms e.g. the retail travel agency chain House of Travel has the wholesale arm Travel Plan.

Wholesale tour operators put together tours combining transport, accommodation, activities and in the case of fully inclusive tours ancillary services such as food etc. These tours are usually sold via a travel agent. Some tour operators do deal directly with the public i.e. Contiki.

The travel agents role is different to other retailers because they do not purchase a product for resale to their customers.

Travel agents and tour operators can earn their income from commission paid by the service provider they are representing, and not by the purchaser. Airlines are reducing the levels of commission they currently pay to agents making it necessary to sell more to make larger amounts of commission these days.

Examples of commission rates to travel agents include 5-9% on international air tickets, 10% for a tour package, cruise or accommodation (this can be more depending on the preferred status held with the supplier), and 33% for travel insurance.

With the current changes to the commission system such as a single capped fee, direct booking over the phone or internet and e-ticketing, agents are working harder to make their commission. The focus on selling domestic fares is lower as there is very little to be made on these bookings now days and more concentration is taking place on the add-ons to the international flights.

Some travel agencies also generate income from bureau de change or traveller’s cheque operations. Traditionally, this has been a significant source of income for some major travel chains such as Thomas Cook and American Express. However, with electronic banking, direct booking and the introduction of the Euro, their income is also decreasing. It represents a saving for the consumers who are benefiting by saving on commission.

ancillary services of tourism Ancillary Services are the 'Extras' of a holiday, such as; -Travel Insurance -Park/Event Tickets -Car Hire -Car insurance -Airport Parking -Money; Foreign Exchange -Luggage -Tour Guide -Chauffeur Service

These are the things you would need to complete your holiday, apart from booking your hotel and accommodation the ancillary's is what makes the holiday and are all the extra important pieces you would need to sort out. For example with travel insurance if your luggage is lost at the airport the travel insurance would cover that and help and secure you along the way of finding your luggage no matter what it took.

Car Hire/Insurance/Airport Parking all come under the same category, you would need to have a valid driver's license to drive over in a different country therefore if you was going somewhere, were you would need to travel to far distance places a car hire would be very reasonable and useful, then you would have to pay for the insurance on that car to use it abroad and pay for the parking at the airport.

Again if you are visiting different parks, in Florida maybe you would need to have a car to travel to all the different parks or events that might be happening on your holiday, therefore you would need to purchase your park/event tickets. Before you even go on holiday if it's an outbound holiday you would have to change your currency for example if you was going on holiday to Spain you would have to change pounds to euros or Florida; pounds to dollars. There are many different aspects to ancillary's which are very important and make up your holiday and make it secure and easier for you, if don't have many of these aspects covered especially if you know you need them to get through your holiday then you probably aren't going to get very far and if anything goes wrong.

Ancillary services refers to organisations that do not have a direct role in travel and tourism, but play a supporting role, perhaps offering related products and services. Example of a travel agency, the main products it sells are holidays and flights, but it will offer a wide range of ancillary services in order to provide a full service for its clients and earn extra revenue. Examples include insurance companies that offer travel insurance and car parks operators that provide parking facilities at airports as well as in other locations. Some other examples are:

• luggage • foreign exchange • car hire • luggage transportation • theatre and event tickets • tour guiding

The commission earned on the sale of these items is often higher than the travel agent receives for selling holidays and flights, so they are an important source of extra income. There are a growing number of companies that specialise in offering ancillary services to the travel trade and direct to the public. Selling extras is also an important source of income for tour operators.

Food and Beverage

One of the most important experiences while on holiday for a lot of travellers is the consumption of food and beverage, enhanced when the food and drink in question is exceptional and/or exotic which is often the case on holidays abroad.

Countries with well-established reputations for their food and drink have ensured that these attractions are promoted prominently in their tourism campaigns. Tours are now from New Zealand offering tuition in French cooking and the many food and wine festivals around the world attract both domestic and international tourists.

One of the most famous Festivals is Oktoberfest, held annually in Munich, Germany for 2 weeks. The Speights brewery tour in Dunedin is world renowned with tourists having to book in advance.

Research conducted by Tourism New Zealand has shown that ‘Interactive Travellers’ to New Zealand are especially interested in experiencing the country’s local food and wine.

The dominance in the UK and around the world of transnational corporations such as McDonalds, KFC and Burger King has changed the eating habits of travellers. The more unadventurous of tourists can now be comfortable eating food similar to the food at home. Research conducted by Tourism New Zealand has shown that ‘Interactive Travellers’ to New Zealand are especially interested in experiencing the country’s local food and wine.

Shopping has become the number one activity of tourists in the world. Designer brand outlets are very popular destinations throughout the United States attracting millions of visitors each year from countries such as China, Brazil, and UK. Top US destinations include Orlando Premium Outlets, Woodbury Commons Premium Outlets, Las Vegas Premium Outlets and Desert Hills Premium Outlets near Palm Springs.

Shopping can be both an attraction and a basic facility which tourists will expect at a destination. This can include souvenir shopping or purchasing basic necessities such as shampoo. Products which identify with a destination are always popular. In New Zealand, anything to do with the kiwi is sold in huge numbers in Hawaii its pineapples and macadamia nuts.

Insurance is a very important aspect of a tourist’s travel arrangements. Most policies will cover the following:

• medical care and hospitalisation
• personal accident
• cancellation/curtailment of holiday
• delayed departure
• baggage loss
• personal liability

The traveller must ensure that medical coverage is sufficient to meet their needs particular in countries where hospital care is very expensive. In the USA, costs in excess of $1 million are not uncommon for serious illnesses.

Foreign Transactions

The cost of an international trip can be substantial and often difficult to estimate in advance. Several factors can influence this with the key one being fluctuating exchange rates. Local taxes and tipping may be add-ons to prices that were not anticipated in advance. It is also important to consider the e cost of living between countries and how that contributes to the travellers perceptions of value.

An example of cost of living in countries would be those who want to travel to Scandinavia. The cost of living is very high especially when buying food. In somewhere like Bali the cost of living is not as high – food and souvenirs are much cheaper but it must also be remembered that tourists help to boost the economy. Hence, after the bombing in Bali in 2003 the economy took a dive until tourists deemed it safe to travel there again.

International travellers have an increasing number of ways they can pay for goods and services while in a foreign country. These include:

• Taking cash from home. However, this may lead to theft or loss, and some countries have restrictions on the import or export of their currencies.
• Taking traveller’s cheques. Used widely around the world, traveller’s cheques provide security with compensation for theft and loss. Standard premium charge of 1%.
• Arrange for the advance transfer of funds to a foreign bank.
• Use travel vouchers provided by travel intermediaries. Tour, transport, accommodation or meals may be purchased in advance.
• Use a credit card to purchase goods and services or for cash advances. Fees may apply and if there is a delay between purchase transaction and debit of the holder’s account, currency exchange fluctuations may alter the amount of the purchase.
• Use an eftpos card to access money/make purchases. The card needs to have the internationally recognised symbol on the back of it and then funds are accessed direct from bank account and are available from ATM machines 24 hours a day.

Commission Charges

The standard commission charged is 1.5% which can be a relatively small amount if the traveller is not purchasing much. Therefore, there is a minimum charge which is passed on to the client of $5.00 if the 1.5% commission is less than $5.00. This discourages people from only exchanging small amounts of traveller’s cheques over the counter.

Currency Codes

Currency codes are three letter standard abbreviations which identify the currency of the country. Eg. NZD = New Zealand Dollars, GBP = Great British Pounds The introduction of the EURO has reduced the number of foreign currencies now used in Europe and makes it easier for the traveller when carrying traveller’s cheques, for instance.

Currency Exchange Rates

International transactions require buyers and sellers to deal in foreign currencies. The price of one currency in terms of another is called the exchange rate. Currency exchange rates are usually floating and values fluctuate depending on supply and demand in the global marketplace. Fluctuation, either appreciation or depreciation, depends on a number of economic and political considerations. If a country, for example, suffers a war or terrorist attack then it becomes politically unstable and people will not go there. If it is not receiving large numbers of tourists anymore then the economy suffers and the value of the currency will drop.

Changes in exchange rates are usually small in the short term, but over a period of weeks or months, trends can result in substantial differences. Changes in some currencies can have knock-on effects for others too. For example, the value of the New Zealand dollar is linked to the US dollar and the Japanese Yen.

International travellers have an increasingly wide range of ways in which they can now pay for their goods and services abroad. These can include:

• Traveller’s cheques - which are still widely used as they are readily available and recognised throughout the world and offer the security of replacement if lost or stolen.
• Both credit card and cash card usage are increasing but it is recommended that travellers also take an assortment of notes and travellers cheques in case of card theft.

Tourist publications and information

Traditionally this information has been in the form of brochures, but the Internet is now an increasingly important source of information for tourists and for tourism operators. Availability of current information for tourists is vitally important e.g. weather, local transportation, attractions etc. Travel guides such as the Lonely Planet series are immensely popular and continue to be updated and extended each year. Some guidebooks are now taking the form of travel blogs and wikis, such as Wikivoyage and Wikitravel . Podcasts prove to be very useful as the audio information can be downloaded over the Internet to a computer, then transferred automatically to a portable audio player. Virgin Atlantic was one of the first companies to offer this service when they launched a guide to New York . The key benefit is that it is free, can be instantaneously updated and quick and easy to use while on the move.

i-SITE offices in New Zealand have a vital role in providing information on local and national visitor attractions and activities, accommodation and transport. They are operated and funded by local councils e.g. Dunedin City Council.

Entertainment

This category includes cinemas, theatres, nightclubs, bars, casinos and shows. Many tourists will look for entertainment and expect these facilities to be available especially in cities. If it is not available, this is reflected highly in visitor’s surveys as a reason for dissatisfaction.

Indirect Elements

Infrastructural needs

Infrastructure is critical to the success of the tourism product. Without suitable access to a destination whether by road or air, the tourist will not be able to visit. Airports must have certain facilities to gain status as in international airport e.g. Duty Free facilities.

Communications also play a vital role especially today when people expect cell phone coverage and internet access to keep in touch with family and friends or for business.

Access to clean public toilets can be very important to the satisfaction of a tourist’s holiday. Clear signage is vital for independent travellers both within the cities to show routes to attractions, on roads to point out the way to destinations and also within and outside tourist attractions providing information.

The manufacturing and building industry are vital to providing the superstructure tourists need – hotels, restaurants, shops and attractions.

Business of tourism

Economic impacts of tourism.

Tourism is considered by many to be the largest industry in the world and the fastest growing. Tourism can provide many benefits for host communities and countries but there are also negative effects. Impact studies are carried out with the aim of improving our understanding of the positive and negative impacts of tourism so that steps can be taken to lessen the negative effects and work at sustainable tourism development. In other words, sustainable tourism development is concerned with maximising the benefits while minimising the negative effects.

Tourism is seen by governments as a useful tool for economic development. The economic benefits tourism may offer include:

• Employment: tourism is a labour intensive industry,
• Entrepreneurial opportunities,
• Generate tax revenues,
• Development in rural regions,
• Foreign exchange generator,
• Tourism promotes other industries, particularly in services sectors of the economy.

Tourism contributes in four major areas of the national economy:

• Balance of Payments
• Regional economic development

Salaries, interest, rent and profits all contribute to income generation. In the tourism industry, which is labour intensive, the greatest proportion of income will be derived from salaries paid to the workers both directly serving tourists or from those benefiting indirectly from tourists’ spending.

Tourism is the main income generator for one-third of the developing nations but is also a major generator in the Western world. In New Zealand, tourism is of prime importance in areas where there is little other industry such as in Wanaka and the Bay of Islands. Interest, rent and profits can generate income from loans to companies building hotels or rental paid to the landowner for a tourism attraction.

Taxation also contributes to income in the form of G.S.T. in New Zealand and V.A.T. in the United Kingdom. In Fiji, there is an accommodation tax of 3% levied on hotel rooms. Departure taxes are now levied by most countries and some including the USA also have an arrival tax.

The sum on all incomes is called the national income and the importance to a country’s economy is measured by looking at the proportion of national income created by tourism. In New Zealand, for the year ended 2004, tourism contributed $6.2 billion or 4.9% of New Zealand’s total industry contribution the GDP.

Multiplier Effect

The tourist income multiplier or ‘ripple’ effect accounts for the indirect impact of tourist spending on the economy. The multiplier is expressed as a ratio between one dollar of tourist spending and the number of times it is re-spent. For example, a multiplier of 0.72 has been calculated for Fiji. This means that 72 % of each dollar of original visitor spending is re-spent in the Fijian economy.

Some major weaknesses have been identified in calculating economic multipliers. One particular problem is the difficulty involved in collecting accurate data of tourist expenditure. Tourism involves a large number of sectors in the economy and tourists spend their money on extremely diverse goods and services. Also, tourism comprises many small, owner-operated businesses. It is likely that a number of operators do business informally, though cash or barter transactions and some transactions are never recorded. Due to the difficulties in obtaining accurate data on how much money is spent by tourists and the numerous small and informal businesses in the industry, multiplier ratios can only be approximations.

Determining the economic impact of tourism is more complicated than simply calculating tourist expenditure. The value of tourist expenditure to the host country is reduced by the value of imported goods and services required to satisfy the needs of tourists. This is referred to as leakage. If the host country has constraints on its ability to supply goods and services to tourists, the grater the number of visitors the more imports will be required and the multiplier ratio will fall. Imports may include materials for construction, petrol, information technology and even food and water for some small island communities. Leakages explain why only a portion of the income generated is re-spent in the local economy.

Balance of payments

International tourists contribute to a receiving country’s balance of payments through money being spent credited to their balance of payments. A New Zealander spending money in Australia, places a debit on New Zealand’s and a credit on Australia’s balance of payments. The outflow of New Zealand money being spent abroad by New Zealanders is an import, while the inflow of foreign tourists’ money spent in New Zealand counts as an export.

The total value of receipts minus the total payments made during the year represents a country’s balance of payments of the tourism account.

International tourism is an ‘invisible’ export which helps to balance imports and thus improve the balance of payments.

The UNWTO has estimated that around 260 million people work in jobs directly related to tourism worldwide and will represent approximately 8.3% of total world employment.

In tourism dependant countries such as the Caribbean, as many as 25% of all jobs are associated with the tourism industry. An estimated 102,700 full-time employees (or 5.9% of total employment in New Zealand were actively engaged in producing goods and services for tourists in 1994.

Developments in technology are affecting labour opportunities in employment. Computer reservation systems are replacing manual systems and as a result fewer agents are working in airlines and hotel chains. The increasing use of the Internet for reservations has also reduced numbers of travel agencies are airline offices.

Call centres are replacing branches, often situated in low-wage countries like India. The success of the tourism industry relies on the supply of a skilled labour force to serve the needs of the tourists.

Investment and development

The level of investment in tourism can determine the success of a region. The investment can be private of public. Often there is a ‘chicken and egg’ situation where there is an unwillingness to invest until there is a flow of tourists but the tourists will not come to the region until there is facilities e.g. hotels, restaurants to attract them.

Often there is a flow on effect and other industries will be attracted to the area to provide services for both tourists and workers

Another consideration in calculating the economic effects of tourism involves the opportunity costs. Money and other resources, committed to tourism could have been used for different purposes, providing alternative benefits for the host community. Labour is a good example. If local workers are employed in tourism then other industries such as fruit picking or agriculture may suffer. If there is a shortage of skilled labour, workers may be imported from other countries, resulting in further leakages from the economy. Capital expenditure on developing tourism-related establishments precludes spending scarce resources on other types of development with alternative uses. Inflation can be caused by high levels of expenditure by foreign tourists which increase the prices of food, transportation, and clothing and as in the case of Queenstown, land values,

Social and Environmental Impacts of Tourism

A cost-benefit analysis for tourism developments should assess the social and environmental impacts as well as economic effects. Sustainable development means that tourism is designed to fit with the social and natural environment and not cause the destination to become less desirable for visitors and permanent residents. Social and environmental can also have the negative impact, for example, tourist that coloring the tree, destroy the pathway of the forest and so on

This Glossary is based on original wook done in wikibooks .

attraction - a place, event, building or area which tourists want to visit

biodiversity - a variety of wildlife in an area

business plan - an action plan that entrepreneurs draw up for the purpose of starting a business; a guide to running one's business

component - a constituent part

culture - people's customs, clothing, food, houses, language, dancing, music, drama, literature and religion

destination - the end point of a journey

diversity - variety; multiplicity; range; assortment

domestic - within one's own country. A domestic tourist is a person who engages in tourism in his/her own country; domestic flights are those within the airline's own country.

economy - wealth of resources of a community

ecosystem - an area where living and non-living things interact

eco-tourism - a combination of tourism and the environment (e.g. planning before development; sustainability of resources; economic viability of a tourism product; no negative impact on either the environment or local communities; responsibility for the environment from developers, the tourism industry and tourists; environmentally-friendly practices by all parties concerned and economic benefits flowing to local communities)

endangered species - in severe danger of becoming extinct in the near future unless immediate steps are taken to protect the species

environment - the diverse community activities and cultures of a country's inhabitants, as well as its scarce and sensitive natural resources

event - an occurrence of importance

excursionist - a temporary visitor, staying less than 24 hours, including cruise travellers but excluding travellers in transit

fauna - all the animals of a particular area

flora - all the plants of a particular area

gateway - the point of access to a country or region, usually an airport or seaport, although certain frontier points and railway stations can be given the designation

global - worldwide

Greenwich meridian - the meridian of longitude that passes through Greenwich (London) and from which all other meridians are numbered; also known as the prime meridian or the zero meridian

heritage - a very broad expression that describes anything that has a link with some past event or person (e.g. cultural heritage refers to past customs and traditions with the unspoken implication that these are worthwhile or creditable)

heritage site - a place that capitalises on its connection with heritage

human-made attraction - an attraction created by people

icon - a symbol representing something

inbound tourist - tourist coming into a country from another country

international tourist - tourist travelling to and between foreign countries

itinerary - the written details of a customer's travel arrangements in the form of dates, times and destinations

local - belonging to a particular place or region

macro business - a large, formal business that employs many people

micro business - a small, often informal, business that employs very few people

natural attraction - a tourist attraction that has not been made or created by people

natural disaster - a destructive force (e.g. earthquake, flood, volcanic eruption)

outbound tourist - a tourist departing to a destination beyond the borders of the country of residence

profitability - capacity to make profit

region - an area of land having more or less definable boundaries

sector - a part or branch of the whole industry that provides particular goods and/or services

service - work done for the benefit of another

service delivery - the manner in which customer needs are met

service provider - a person or company that supplies a particular service

short haul - 1-3 hour flight

souvenir - a product purchased by a tourist as a reminder of a holiday

sustainable - something which can be kept in the same or a better condition for the future

tourism - the all-embracing term for the movement of people to destinations away from their place of residence for any reason other than following an occupation, remunerated from within the country visited, for a period of 24 hours or more

tourism geography - the knowledge of countries, regions, major cities, gateways, famous icons, monuments, building structures, and geographical features such as rivers, seas, mountains, deserts and time zones

tourism industry - a group of businesses that provide services and facilities for consumption by tourists

tourism infrastructure - roads, railway lines, harbours, airport runways, water, electricity, other power supplies, sewerage disposal systems and other utilities to serve not only the local residents but also the tourist influx (suitable accommodation, restaurants and passenger transport terminals form the superstructure of the region)

tourism product - different things to the various members of the tourism industry. To the hotel it is `guest- nights'. To the airline it is the `seats flown' and the `passenger miles'. To the museum, art gallery or archaeological site, the product is measured in terms of the number of visitors. For the tourist the product is the complete experience resulting from the package tour or travel facility purchased, from the time they leave home until their return.

tourist - one who travels for a period of 24 hours or more in a place other than that in which he or she usually resides, whose purpose could be classified as leisure (whether for recreation, health, sport, holiday, study or religion), business, family, mission or meeting

tourist facility - a feature created for utilisation by tourists

tourist route - a route developed to attract tourists to an area to view or experience something unique to that area (e.g. wine route, whale route, heritage route, battlefield route)

tourist trend - a general tendency to visit a country, region or destination or to pursue a specific tourist activity

world heritage site - a site designated by UNESCO as being of special historical, cultural or natural importance

BB - Bed and Breakfast

Review Questions

• http://www.biodiv.org/programmes/socio-eco/tourism
• http://www.world-tourism.org/newsroom/Releases/2006/november
• Wikipedia:Tourism
• Page, Stephen J and Connell Joanne, (2006) Tourism a modern synthesis, second edition, Thomson Learning, London, UK.

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Travel ABC: The 7 Essential Components of Tourism

By Jorge Coromina

Travel and tourism have become an integral part of modern life, offering people the opportunity to explore new destinations, cultures, and experiences. 

While we often associate travel with leisure and relaxation, the industry's complexities go far beyond just booking a flight and hotel. 

To truly understand the dynamics of travel and tourism, we need to delve into its seven essential components, each playing a vital role in creating memorable journeys for travelers worldwide.

Transportation

Transportation serves as the backbone of the travel and tourism industry. Whether it's crossing international borders or exploring local attractions, the availability of efficient and reliable transportation is crucial. Airlines, railways, buses, cruise lines, and other modes of transportation connect destinations, making it possible for travelers to reach their desired locations. Advancements in transportation technology have also made travel more accessible, convenient, and eco-friendly.

Accommodation

Accommodation is a fundamental component of travel and tourism, encompassing a wide range of options to suit every traveler's preferences and budget. From luxurious five-star hotels to cozy bed and breakfasts, hostels, vacation rentals, and camping sites, the diversity in accommodation choices allows travelers to personalize their experience. The hospitality industry's dedication to providing comfortable and welcoming spaces plays a significant role in ensuring tourists enjoy a memorable stay.

Attractions

The attractions at a destination are what entice travelers to visit and explore. Whether they are natural wonders, historical landmarks, cultural sites, amusement parks, or adventure sports, attractions are the heart of tourism. They showcase the unique identity of a place, revealing its history, traditions, and values. Government and private initiatives to preserve and promote attractions contribute to the sustainable growth of the tourism industry.

Cuisine and Dining

One of the most enjoyable aspects of travel is indulging in the local cuisine and dining experiences. Food is an essential part of culture, and trying traditional dishes gives travelers an authentic glimpse into the destination's way of life. Restaurants, street food vendors, food festivals, and cooking classes all contribute to the gastronomic adventure that enriches a traveler's journey.

Entertainment and Events

Entertainment and events are integral to enhancing the overall travel experience. Music festivals, art exhibitions, cultural performances, and sports events add excitement and vibrancy to destinations. These events often draw large crowds of tourists, fostering cultural exchange and economic growth for the local community.

Travel Services and Infrastructure

Behind the scenes, travel services and infrastructure work tirelessly to ensure seamless experiences for travelers. Travel agencies, tour operators, travel insurance providers, and online platforms facilitate trip planning and booking. Additionally, efficient infrastructure, such as airports, roads, public transportation, and communication networks, plays a crucial role in supporting the smooth movement of tourists.

Hospitality and Customer Service

At the core of travel and tourism lies the importance of hospitality and exceptional customer service. The warmth and friendliness of locals, as well as the professionalism of tourism employees, leave a lasting impression on visitors. From tour guides to hotel staff, these individuals play an invaluable role in creating a positive and welcoming environment for tourists.

The travel and tourism industry is a multifaceted ecosystem comprising various components that work harmoniously to provide enriching experiences for travelers. From the moment a journey is conceived to the point of departure, each aspect plays a vital role in shaping memories that last a lifetime. 

As this industry continues to evolve, a focus on sustainability, responsible tourism, and embracing cultural diversity will ensure that future generations can enjoy the wonders of travel while preserving the beauty of our world's destinations.

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Forth Road Bridge at 60: Why have all three Forth bridges become a must visit tourist attraction?

As the Forth Road Bridge turns 60, we explore how Scotland's timeless engineering marvels spanning three centuries have become a tourism magnet.

Where the Firth of Forth meets the horizon, three extraordinary titans of civil engineering stand shoulder to shoulder, weaving a tale of innovation and endurance across three centuries.

The Forth bridges – each a unique testament to the ingenuity of its era – stand as monuments to human ambition, linking the past, present and future in one breathtaking panorama.

The iconic Forth Bridge , a UNESCO world heritage site with its towering red cantilevers, has been an unyielding symbol of industrial might since 1890, its latticework of steel a daring feat of Victorian railway engineering.

The Forth Road Bridge , with its sweeping suspension spans, ushered in a new age of mobility in 1964. With a span of 1,006 metres between the two main towers, it was the fourth-longest in the world and the longest outside the United States when it opened.

Only later was its reputation for engineering excellence tarnished by traffic congestion and maintenance problems .

Completing the trio, the Queensferry Crossing , a marvel of modernity with its elegant, fan-shaped towers, reaches skyward, embodying the sleek, forward-thinking spirit of the 21st Century since its opening in 2017 .

Together, these bridges are more than just transport links – they are the guardians of Scotland’s heritage, stretching across time and tide, connecting communities, and inspiring awe in all who stand beneath their majestic arches.

But with the 60th anniversary of the Forth Road Bridge being celebrated on September 4 – a date that also marks the official opening of the Queensferry Crossing by the late Queen in 2017 – what impact are the three Forth Bridges together having on tourism?

Forth bridges offer endless opportunity for Dundee photographer

The Forth bridges hold a special significance for Dundee photographer Shabaz Majeed , whose work has been deeply inspired by these iconic structures.

Aerial images he took famously featured on the £5 Clydesdale and £20 Bank of Scotland polymer notes.

As a photographer, Majeed, 41, is naturally drawn to bridges, often capturing their intricate designs and majestic presence from every conceivable angle.

However, the Forth bridges in particular offer an endless array of perspectives.

“Photographers are often attracted to bridges, whether featuring them as interest in their images or capturing abstract or architectural views of their construction/design,” he said.

“I am no different, having captured the Forth road and rail bridges for many years before the inclusion of the Queensferry Crossing, and now the trio in every possible way and angle possible.

“Having been under them, over them, and on top of one of them and even recently abseiling off the Forth rail for charity, their allure is unquestionable.”

Shahbaz has taken many a group of photographers to the bridges to capture them at sunrise and sunset. It never fails to surprise him the array of images people capture.

But now with the explosion of drones, there’s even more photographic potential.

Forth bridge ‘selfies’ are not uncommon

Outside the Forth Road Bridges Contact and Education Centre in South Queensferry, it’s not uncommon to see busloads of international tourists stop off for a quick selfie with the bridges as a backdrop.

These visitors, often from cruise ships berthed in the Forth, are usually on their way to and from Edinburgh.

But according to Fife Council’s Forth Bridges area tourism strategy manager Karen Stewart , who works with a coalition of local councils and national agencies, the bridges are as much a magnet for local tourists as they are for international guests.

The Forth Bridges Trail , a centrepiece of the tourism strategy linking North and South Queensferry, encourages visitors to engage more deeply with the area, exploring the historic and scenic surroundings by foot, bike, or even boat.

“The bridges are pivotal to regional tourism strategies that aim to transform fleeting visits into memorable, immersive experiences,” said Karen, who grew up in Bridge of Allan and remembers the “excitement” of crossing the Forth Road Bridge as a child when it had tolls.

“Three bridges spanning three centuries crossing the Forth. It’s of interest to people.

“The idea for the Forth Bridges Trail actually came during the Covid-19 lockdown when we weren’t allowed to leave our local authority area.

“It’s about taking the experience of the bridges and expanding it into something more – a half-day or even a full-day visit.”

Sustainable tourism at heart of strategy

Initiatives have been designed to make the journey as enjoyable as the destination.

Whether it’s a walk across the Forth Road Bridge – itself now a public transport corridor – a cycle through the connecting communities, or a boat trip offering unparalleled views of all three structures, there’s a concerted effort to ensure that visitors can appreciate the bridges from multiple perspectives.

Sustainability is also pivotal to VisitScotland, which recently delivered a joint digital marketing campaign with Sustrans which focused on ‘ An Epic Cycling Adventure Round The Inner Forth ’.

This pointed visitors to a dedicated webpage that details the route with a suggested itinerary.

VisitScotland’s own research shows ‘the Forth Bridges’, ‘Forth Rail Bridge’, ‘Forth Road Bridge’ and ‘Queensferry Crossing’ are popular search terms, with around 15,000 searches of ‘Forth Bridge’ a month.

According to their Scotland Visitor Survey , 13% of visitors to Scotland stated they visited a UNESCO site, rising to 16% for European visitors and 28% for long-haul visitors.

Outdoor activities are a core motivation for people coming to Scotland, with around a third mentioning it in the visitor survey. Scotland’s UNESCO Trail was also named in Rough Guides’ 24 best destinations to visit in 2024.

Feat of engineering

Caroline Warburton , destination development director at VisitScotland, said: “The Forth Road Bridge was a feat of engineering and the 60th anniversary is an opportunity to recognise its significance in connecting communities in Fife, Edinburgh and the Lothians.

“Its current use as a bus corridor, and a cycle and walking route, means it plays an important role in our responsible tourism activity, as we inspire visitors to use sustainable modes of transport.

“We know, from our research, that the iconic Forth bridges continue to be popular with visitors and are a key part of the visitor experience in the region.

“The Forth Bridge, in particular, is one of Scotland’s major landmarks and a special attraction which is recognised across the world.

“The Forth Bridge Trail and the Round the Inner Forth cycle route are great examples of the work being done by local partners, and VisitScotland, to capture the interest in the bridges and encourage visitors to explore the surrounding communities by bike or on foot; helping to spread the benefits of tourism around.”

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