Page 1 of 26

Title page

Page 2 of 26

TABLE OF CONTENTS

Topic Page No

Introduction 3

Unit 1 4

Unit 2 10

Unit 3 14

Unit 4 18

Conclusion 25

References 26

Page 3 of 26

INTRODUCTION

Travel and tourism (T & T) is one of the popular and fastest growing industries in the world.

According to World Tourism Industry (WTO), tourism is about activities of persons

travelling to and staying in a place which is outside their routine environment (for not more

than 1 consecutive year). Main types of tourism includes domestic, inbound and outbound

tourism.

WTO acknowledged that tourism is now growing economic sector which give foreign

exchange earnings as well as providing jobs in its related industries such as, construction,

transport, media, etc. The purpose of this study is to give understanding about this biggest

industry. The whole discussion will cover four units about the subject matter.

Page 4 of 26

Unit 1 Travel & Tourism (Analysis)

This is important part of the study, it based on different tasks and provides useful information

about this industry and helpful for students for further progress. This unit give information

about domestic (UK) as well as international travel market. Development in tourism industry

from 1950 to present will be discussed in detail.

Task 1 key factors in development in T & T industry since 1950.

In past, people travelled from one place to another for the purpose of war, trade and religious

activities. With the passage of time, individuals started to travel for different purposes such

as, holidays, health & fitness, sports, education, culture and sometime for business reasons.

Task 1 can further explained below:

1.1 Identify and evaluate 2 areas of development in travel & tourism industry.

Travel and tourism industry based on different factors which plays an important role in its

development and growth. Two of them are discussed here in detail.

Technological development

Technological advancement in any area of business is important, for tourists it also has great

attraction. Previously there was a link among tour operators and travel agencies via terminals

which allow travel agents to done bookings over the system (called view-data systems). But

now this outdated even somewhere still in use.

In 1950’s, airlines developed CRS (computer reservation systems) to store information which

they can access easily. CRS worked by airlines internally and agents makes booking and look

up flight times via telephone. Now travel agencies can use CRS directly without contacting

airlines. GDS (global distribution systems) were introduced to create a link among CRS for

accessibility of travel agents.

(Hitwise United Kingdon Newsletter June 2007)

The internet is the preferred method of obtaining

travel information

0 10 20 30 40 50 60 70

Web Search

Personal Recommendation

TV Program

Travel agents office

Newspaper

Other Method

Op

tio

ns

No. of People

Page 5 of 26

Internet is now used as a main developing factor, which provides opportunity to tourists to

become more independent and self-confident. They can arrange their holidays and

accommodation plans whenever they want.

Legislation (implementation of law & regulations)

Rules and regulations are very important in any business, it enhance the standard or quality of

a product or service. some of the legislation defined below which influenced on development

of tourism industry.

Development of Tourism Act 1969: Established by British Tourist Authority for

England, Scotland and Wales for the purpose of co-ordination among organizations

belong to tourism industry.

Transport Acts 1985: transportation Act implemented in 1985, aimed to wholesale de-

regulation. It allows to private companies to use any road without restriction.

Package Travel, Holidays and Tours Regulations 1992: UK tour operators are offering

holidays packages under the regulation Act. Responsibilities of operators are defined

for convenience of customers, in case of miss-commitment; customer can file a case

against service provider.

1.2 Public sector influence on travel and tourism industry.

In travel and tourism industry, public sectors plays a significant role in terms of funding,

promotions, regulations as well different services for tourists such as: provide information

centres, sports facilities, etc. Public sector involvement in tourism was restricted for many

years mainly to:

Local authorities :includes county, metropolitan & district councils.

RTB (regional tourist boards), which were established during development of tourism

Act 1969 (includes Scottish & Wales Tourist Boards).

Public sector influenced on development of tourism industry is important due to following

reasons:

Responsible for formulating and implementing tourism policies.

Check goals and plans on routine basis

Government can offer incentive programmes for local investors to use architectures

designs to attract tourists.

Create investment and employment opportunities

TASK 2: structure of travel & tourism industry

This section describes overall tourism industry structure and roles of organizations. Impact of

organizations on growth and development of industry and their products and services will be

discussed.

Page 6 of 26

2.1 Impact of two voluntary organization on growth of tourism

A new form of tourism began popular in 1970’s in travel industry known as voluntary

tourism. It was complicated due to its increasing size and growth rate, though, marked as

growing sector in tourism (Brown & Morrison, 2003). In this type of travelling and tourism,

people contribute their efforts and funds for development and growth of industry, work for

benefit for whole community.

One of the best examples of voluntary tourism is ‘Elephant Nature Park’ in Chiang Mai,

Thailand. This Park was created in 1995 with just one elephant, now it extended with

different domestic animals. Volunteer tourists take part in daily activities of park and does

not receive any government fundings, they manage expenses with revenue received from

tourism and donations from outside visitors.

Another volunteer organization ‘Child Wise Tourism’ working since 1993, addressing the

issue of child abuse and exploitation. This volunteer organization is member of Australian

member of ECPAT international alliance (in 77 countries). They give trainings to tourism

staff so they evaluate and identify situation when children are at risk. They work on children

rights and help child in tourism industry.

These organization (volunteer) influenced on growth and development of tourism industry

and attract other individuals to take part in volunteer activities.

2.2 Assess the effect of organization on influencing tourism in any country.

To consider and assess the effect of organization (national or international) on tourism, a case

study of Nepal (an Asian country) has selected, it will helpful to assess the tourism effects

and role of organizations in a specific region. Asia known as place of social, cultural,

technological and political changes over the past decade. In most of Asian countries, tourism

is considered best source of foreign exchange.

Nepal known as small and one of the poorest country in the world, having per capita income

170$ p.a. and very few employment opportunities. This developing country attracts tourists

with its physical uniqueness of jungle resort camps where people trekking in snow capped

mountains and enjoy a lot. Now tourism is attractive for Nepal community as it is best

sources of earning money as well as employment opportunities. In lots of economic crisis and

poverty, tourism is a hope for local people of Nepal.

In past, there were just few hotels in its surroundings, no travel and trekking arrangements

available. After 1970’s, tourists arrival risen and simultaneously new hotels, travel agencies

and trekking offices established. According to Ministry of Tourism published data, there

were 168 hotels in 1990 for tourist’s visits. Overall, tourism industry gives great return on

investment to hotels owners and organizations.

TASK 3 Analyse effect of supply and demand on tourism industry.

Page 7 of 26

The purpose of this section is to examine the effects of supply and demand on T & T

industry. Furthermore, main factors which effect tourism will be discussed.

3.1 Factors which effect demand of tourism.

In different cultures, factors which can effect demand of travel and tourism can be different,

but now main aspects will be discussed.

Motivating factors

People travel at different places to fulfil their desires and to themselves motivated. It is said

that there are two basic reason of travelling. ’wanderlust & sunlust’. Wanderlust mean those

people who have desire to observe different cultures and livings of other people. Sunlust are

those who just want to change their routine location to keep them fresh and warm, rest from

their climate for a certain time period. Some other motivating factors can be:

Relaxation

Escape from family

Rest from job

Spend time with friends

Prestige, etc.

Enabling factors

Sometime people want to go for tours but due to insufficient funds and time they cannot go.

If someone cant afford a visit then its not easy to travel. Enabling factors includes enough

money and time to visit a place. Some other enabling factors which influence of demand can

be:

Transport availability

Suitable product package

Ease of booking for trip, etc.

Technological factors

Technology is one of the main reason of increasing demand of tourism. Now people have lots

of opportunities to decide place of their interest at their desired time. Internet is great

invention of moderation age which makes individuals more confident and independent. Some

other factors can be:

Changing consumer needs

Product development.

Inventions and innovations, etc.

3.2 Factors which affect supply of tourism

Tourism supply can be defined as availability of all assets, goods and services which are

required by the visitors. Different factors influence on supply of tourism includes:

Page 8 of 26

Availability of resources: people want to visit a place which have wide diversity of

resources such as, Parks, forests, lakes and waterways,

Accommodation: tourists have demand of accommodation at best places from which

they always enjoy places of interest, such as, sea-side, and hilly areas. They don’t

want to waste any moment of joy.

Transport : Transport and tourism always side by side. Tourists requires best

transportation service already arranged by tour operators. For example, train are

fastest transportation mode in London.

Technological factors: use of technology allows people to keep themselves aware

about news and activities. Internet is best way to getting information.

Legal and Political factors: It is also important to check political and legal

implementations on tourism industry. Rules and regulations awareness must ne

provided to tourists.

TASK 4 positive and negative effects of tourism

This section of unit 1 give understanding about positive and negative impact of tourism (local

and national scale). Also it provides strategies which can be helpful to minimize negative

effects.

4.1 Two negative effects of tourism.

Tourism is considered people-oriented business, therefore, it has lots of opportunities of

general public as well as government. But at the same time it also has some drawbacks.

Negative effects in tourism industry can be:

Seasonal work:

Usually it is season based job, sometime employees are not loyal and committed to their job

description so they just take little knowledge about subject. It also has observed that its a time

taking job, but employees are not rewarded according to their efforts. If employees don’t

provide good service to visitors then may be they also discuss with their fellows and it can

decline the industry.

Inflation:

Another negative effect of tourism can be inflation in a specific area. If price of goods and

services are high for outside visitors, then local residents may suffer due to high price of

commodities. Its a practice that in tourist area, price of houses, transport, routine grocery

items price is high, so for local citizens it becomes difficult to manage. If amount is spending

on specific area, then other important projects may behind such as school, hospitals, etc.

Page 9 of 26

4.2 Strategies to minimize negative effects.

Tourism industry is considered as growth industry, but sometime it also have some drawback.

Negative effects on this growth oriented business must be minimized to make it more popular

and demanding among general public. Proper check and balance is important to overcome it

negative impacts.

Government must check employees satisfaction level during their job, if they are

giving best services to outside visitors, then they also must be rewarded according to

their efforts. It is good if wages and salaries are paying to employees per hour, so

they are sure that they will receive remuneration according to their services provided.

Most of people worried about their job as this is seasonal work, sometime due to

weather, tourists don’t travel, in this situation it is good if employees involved in other

activities such as, indoor services. But if they are sure that they will receive wages

even weather permitted or not, then they can adopt tourism industry as a profession.

To minimize inflationary effects, government should implement proper check and

balance system for the continence of local residents. At tourists places, prices of

commodities and living are obviously high as compared to local areas, because this is

the way to earn maximum foreign exchange. So they can give awareness to people.

They must understand benefits of tourism instead of keep focusing on its negative

impacts. Its up to local individuals efforts, if they can visit local markets rather than

specially organized tourists areas.

Page 10 of 26

UNIT 2 Global Destinations

This unit of study is helpful to understand the importance of global destinations which can

attract tourists and can play an important role in growth of tourism industry. This part give

information about major factors influence on tourism in terms of transport, locations for visit,

etc.

TASK 1 Source of references and research skills for tourism business

Search about destination for visit is an important issue for tourists as well as travel agents;

they want to visit new and interesting places every time. It is essential to get right and up to

date information on time about global destinations.

1.1 Reasons of measuring tourist flows among generating country and receiving

country.

Receiving countries are the places of interests where tourists want stay for a specific period

of time where as generating courtiers are actual place of visitors. Tourist flows are the

movements of people between places. Williams and Zelinsky (1970) nominate 14 countries

which are stable to understand tourist flows. There are measuring reasons of tourist flows:

These measurements are important for tourism planner and agents to operate

effectively whole procedure, as well as it is basic to make future planning. It can be

assess with the help of measurement of tourist flows that how much revenue are

generating as well as provides comparisons in last years and current years,

Measurement is necessary to evaluate the magnitude of tourist flows in a certain

period of time. It is helpful in projections of future market trends for both public and

private sector. Organizations used it for marketing purpose.

1.2 Two sources of information for tour operator searching a new destination.

In tourism industry, there are two types of tour operator. Wholesale operators arrange tours

through retail travel agencies. Other one is direct sell operators, who advertise their product

and service to public directly instead of involving travel agencies. E.g: American Express,

Thomas Cook, Kuoni and Preussag. They find out new destinations through different

resources.

Tour operators get information from Tourist Information Centres (TICs) which are

located in central points of the city. TICs have information in form of leaflets,

broachers, timetables of tours in local areas. They also gives information about

planned veneues and timing of trips in future.

Internet and other mode of technology is best source of information for tour operators

to find out a best place of interests. It is up-to dated and easily assessable mode of

technology for any purpose.

Page 11 of 26

TASK 2 Analyse major transport routes in terms of generating and

receiving areas.

This section of unit 2 describe transportation routes available to tourist generating and

receiving areas, it will discuss about transportation system of Europe as well as since 1950’s.

2.1 Generating and receiving area in Europe as tourism destination

Generating areas are those destinations where tourist lived, whereas, receiving areas are those

regions that people visit for tour purposes. One destination at a time can be generating and

receiving such as London. Europe, is one of the best tourist destination in the world with

more than 372 million visitors on annual basis (approximately). According to facts, largest

growth areas for tourists is expected in Central and Eastern Europe. According to future

expectations, a long-haul arrival can increase up to 15% till 2020.

A sound transportation system in necessary to create a link among destinations. Tourism is

impossible with travel, an transport is important for travelling. Now motor vehical makes

possible to travel at different places in less time. Airlines and trains are best transportation

systems in Europe for tourism purpose. Now day trains are playing biggest role in

development of tourism industry.

2.2 Transportation mode using in tourism since 1950.

Sir Michael Bishop, ‘chairman of BMI, ‘transportation system act as a back bone in growth

of economy’. Overall any transportation mode is important in travel industry but rail network

and airlines play an important part in success of tourism.

A major change in transportation system began in late of 1950s with introduction of ‘Boeing

707 (first durable high capacity airline used commercially). It was wonderful opportunity for

people to travel on long distances in short time, specially it was helpful for business tourists.

After growth of travel industry, lots of companies merged with airlines. For air traffic control,

National Air Traffic Services (NATS) organization is responsible. Overall, in development

and growth of tourism industry, airlines are most prominent mode of transportation. During

the period of 1965 and 1989, 700% passengers travelled through airline which was great

development in tourism industry. A good airline transportation system must includes:

Good infrastructure and services to operate flights.

Restaurants, toilets, parking, shops facilities must available.

Proper sitting arrangements for visitors or relatives of travellers, etc

In growth and development of tourism industry, overall every type of transport has

importance, but airlines have major contribution

TASK 3 Factors contribute toward a destination appeal.

This part of unit focus on reasons or factors which appeal and inspire people to come and

visit different places. . It gives information about Britain as well as discusses other

destinations as a whole.

3.1 Two factors which make Britain popular for tourism

Page 12 of 26

‘Habit of travelling at different places for pleasure is as old as recorded history’

(Brendon199). In history, people come in Britain form different places for the purpose of

trade, education, religious matters as well as for war. With the passage of time, trends and

traditions changes and individuals preferences towards travelling also diversified. Tourists

visit different places due to various reasons, but now two main factors discussed here which

force a common man to visit Britain.

Cultural and environmental factors: most of people come to Britain to observe

different cultures, as this is the place of mixed people from all over the world.

Individuals belong from different backgrounds came here. After 1980, people become

more aware about fitness and health as well as they had environmental awareness.

People consider all these aspects before travelling anywhere.

Technological factors: innovations and inventions always preferred in every society.

T & T (travel and tourism) is industry with extensive use of new technology features.

Visitors preferred to come in Britain due to its growing technological equipments, for

example, transportation advancement. In London, train system is one of the best

transportation modes in the world. It also has great attraction for tourists.

3.2 Three factors for popular tourism destination.

People travel at different places, their decision of selection of a place of interest based on

certain factors which appeal them to come and see through travelling. Overall there may be

lots of reasons of preferences among tourists but now three of them can be:

Attraction of man-made and natural places: this is the biggest reason of travelling

from one place to another, people come to view historical natural and human made

places. Such as Taj Mehal in India is famous tourist place. In London, highly popular

place of interest is Thames Park, tourism industry generate $15 billion every year

from tourists. Other places of interest also force people to come such as, parks,

museums, zoo, farms, etc.

Economic and Political stability: This is one of the important factors which cannot be

neglected when you have a plan to visit any place of interest. Tourist feel insecure and

afraid if there is no proper check and balance in economic state.

Weather: lots of people want to visit different places due to good weather. People get

bored with same weather over a long time so they want to spend sometime in nice

weather area. For example, France is one of the best tourist place in Europe. There is

always a nice sunny weather specially in south (France), which attracts toursists to

enjoy.

TASK 4 Tourism potential of different location.

This activity is related to understanding of tourism potentials and to find out factors which

can limit the potential a tourist place. Different tourist destination examples will be

discussed from UK and international.

4.1 Three factors, which limit destination to reaching it potential.

Page 13 of 26

To find out a place of interest is also a time taking effort for tourists. Sometime it happens

that a destination if full of entertainment and interests, but does not have potential for

tourists. There may be different reasons which limit the potential of a destination.

Economic determinants: It includes personal income of an individual, currency

value, exchange rate, etc. usually its happened that an individual want to visit a place

but due to low income, it cannot be affordable. So it becomes a limit in way to

reaching a destination. For example, an overseas tour is not possible for every

individual, so they prefer to visit local place of interest. In London, tourist visit

London Eye but due to insufficient funds they just view rather than visiting as a

passenger.

Social determinants: It covers demographic variables including gender and age type

of people and social backgrounds. Different places of interest appeal different people

according to their age category. For example, old age people don’t want to visit in

rush areas like young tourists.

Technological determinant: this is world of technology; people want to travel a

place which is modern in terms of expertise. For example, in developing countries,

there is less ratio of tourist just due to poor technological system, even that there is

potential of visitors.

4.2 Carrying capacity in relation to tourist dentations.

World Tourism Organization (WTO) define tourism carrying capacity as,’ a maximum

number of individuals which can visit a destination at the same time. This visit must be

without causing any destruction (physical, socio-cultural environment, economic) and with

visitor satisfaction’. Tourists want to visit a place of interest without any destruction as they

are paying money and time to spend at that place. The concept of TCC was developed in

‘fields of range and wildlife management’ based on a concept that a number of individuals

can survive only within a defined range (Carey, 1993: 141):

An example of carrying capacity in UK, Thames River is one of the best examples in relation

to tourism carrying capacity. Tourists find here a friendly atmosphere especially at Tower

Bridge or across the Thames. This is open air place of interest where tourists can visit without

any destruction.

Another example of best tourist place other than UK can be beach side of Karachi (Pakistan,

sea side). Lots of domestic and overseas visitors/tourists came here and spend time without

any limitation.

Page 14 of 26

UNIT 3 WORLD TRANSPORT

This whole unit is related to transportation system globally. This unit is helpful to evaluate

the effect of transport into the tourism industry. Transportation modes, advantages and its

effect on tourist will be discussed in this unit.

TASK 1 Development of transport industry.

This part of the study focus on overall growth and development of transport industry in 20th

century, as well as it benefits for whole industry.

1.1 Advantages of privatization on transportation system.

For this discussion, a case study of privatization of British Rail will be discussed. In 1993,

British Rail privatized during conservative government under relevant board of transport.

Due to this implementation, some of the most common advantages are:

Customer Service: it gives a better change in customer service in terms of on-board

and station based services for general public. People feel more satisfied with extra

attention of staff member.

Fares and Timetable: for passenger’s continence, a proper timetable and stable fare

system introduced by privatized system. With the passage of time, fares charges

increased due to increase in taxes, but passengers compromise as they are getting

good services.

Punctuality and Reliability: passengers pay money not only for travel but as wee for

on time and punctual service. In early period of privatization, it was observed that

there were no improvements in punctuality. But after that this system organized and

managed.

Profitability and Efficiency: after privatization, profitability and efficiency of whole

system increased. Passengers are willing to pay required fares for getting satisfied

services, which also increase revenue.

Privatization can bring a change in any mode of transport, for discussion in this topic, rail

service selected.

1.2 Methods to relieve road traffic congestion.

Traffic congestion on road occurs due to increased vehicular queues and slower speed of

some vehicles. This situation is known as traffic jam or snarl-up. Road congestion can create

problems in overall setup of an individual routine life. Every one become disturbed if there is

crowed on road. Different methods are adopted by traffic controllers to relieve road

congestion in different countries.

In UK, there is best system to control traffic congestion. It is important to adopt

measures before occurrence of an event. Traffic signals should be followed and

pedestrians must wait for their turn before crossing the road. It can help a lot in

controlling traffic congestion. Whereas, motor vehicle drivers follow their defined

Page 15 of 26

speed limit according to road precautions. Overall in UK, traffic congestion chances

are less because it is based on proper traffic system.

Other example will be taken from developing country, Pakistan. Unfortunately, there

is no proper check and balance on traffic congestion system. There are traffic signals

but people don’t bother to follow it. Traffic sergeants are helpful to manage traffic

crowed up to some extent.

TASK 2 Transportation mode impact on development of tourism

industry.

This phase of study is about understanding of main features and mode or transportation

which is helpful in growth of tourism industry. It will cover major transportation mode in

last 20 years.

2.1 Choose one transportation mode and its effect on tourism industry.

Transport and tourism are always side by side. It is not possible for tourists to travel without

help of transport. There are different sources for travelling, but for this discussion airline

mode of transportation has selected. These both (tourism and air transport) are complement

of each other. It is fact that tourism depends of transport and vice versa. Development and

growth of tourism industry directly influenced with transportation system. Since last 25

years, number of tourists has increased by 100%, major reason behind this growth is best

transport system. Air transport play an important role in development of tourism because:

Air transport is main source of international travelling.

Fast and relaxing journey.

Attractive marketing promotions also helpful in industry expansion.

Best source of employment as it provides 6.7 million jobs worldwide directly in

tourism industry.

Reliable, punctual and comfortable source of travelling.

2.2 Choose a destination and analyze transportation effect on its development.

There are lots of places which attracts tourist to view and stay for a certian period of time.

For discussion in this part of unit 3, Khewra Salt Mines are selected, which are best tourist

places in Pakistan, it has lot of attraction for domestic tourists as well as outsiders. This is 2nd

largest salt mine in the world, this place attracts more than 40,000 tourists per year in South

Asia.

Transportation system is necessary to visit this place, as it is situated on hills and covered

with salt mines, have 19 stories with 11 below grounds. Just 50% salt extracted from mine

and rest of 50% left which worked as pillars to give support to whole mountains. Whole

tunnel length is more than 40 kilometers. Visitors come here through cars, tractors, jeeps and

busses. There is a small internal train system working inside the mine which is designed

according to tunnel size and just drive inside the tunnel. It allows tourists to view whole

destination. Transportation system effects a lot on development and growth of this tourist

place, as without transportation aid, no one can view any tourist destination.

Page 16 of 26

TASK 3 Current issues effecting transport in UK/Europe.

This activity is related to concerns which effect transport in UK. Understand the effects of

airlines on travel and tourism industry as a whole. Heathrow terminal 5 discussion also

presented here.

3.1 Effect of low cost air lines on tourism industry (in Europe).

Air lines always known as biggest growing transportation mode in development of tourism

industry. It makes possible economic growth, international trade and investment in tourism

industry. History shows that air travel has grown by 7% p.a. as people travel for business as

well leisure purpose. Low cost airline involvement brings a major change in tourism industry.

Previously, people who cant afford expensive transportation mode, are now able to use this

beneficial facility. Low cost air line target the audience who are sensitive in terms of paying

high amount. Overall, airlines play an important role in growth of tourism industry when they

cut down their routine prices. Air line influence in terms of:

Number of tourists increase due to low price of journey.

A common man also can afford low air line packages to fulfil his desires.

Due to increase in tourists, revenue also increase.

3.2 Terminal 5 (Heathrow) effect on tourism and travel industry.

Heathrow airport (South West, London), with more than 200,000 population. In 1946, there

was one runway at Heathrow, due to requirement of large airport, a terminal was established

at the airport. Terminal 5 is new addition at Heathrow since 2008. It was predicted that

terminal 5 (runway 3) act as economic doorways for new job opportunities. Management

staff said that ‘ it is expected that terminal 5 give highest quality airport facilities, helpful to

reduce passenger congestion as well as beneficial to reduce delay in flights’.

The new terminal gives opportunities to routine passengers of air lines as well as It is

beneficial for tourism industry and work for development of economy as a whole. UK is one

of the best places of interest for tourists; a new terminal opening is also beneficial for tourists

as now they have more opportunities of travel. Opening of terminal 5 at Heathrow is:

Helpful to reduce passengers or tourists congestion

Source of revenue for tourism industry as well as airport itself.

Income generating source for government

Attract potential customers (passengers as well as future tourists)

Introduce new way of travelling for tourists.

TASK 4 Competitive nature of transport industry.

Final part of unit 3 is about marketing strategies used by transport companies to compete

in highly competitive environment. Also understand effect of completion on tourists.

4.1 Strategies using by transport providers for getting market share.

Page 17 of 26

This is the world of completion, in any area of business, there is race to get achievements and

success. It is now very difficult to become market leader in highly competitive environment.

Transportation sector has also great challenges in competitive market. Among all of available

transportation modes, airline sector is highly competitive. To get maximum market share and

become leader in their business sector, transport providers are using strategies such as:

Offering new packages to attract potential customer market.

New advancements and technological developments are important to attract users and

keep them loyal with existing transport mode.

Discounts, offers on purchasing of tickets at some specific period.

By offering best customer service, as lots of passenger demand good customer

service, even that price of travel is high.

Also offering extra facilities during journey such as shop, restaurants, toilets, etc.

Entertainment facilities provided in transport during journey such as, music, movie,

documentary, etc.

Companies are adopting wide range of strategies to keep retain their existing customers and

to attract new ones. These strategies can vary according to transport sector. Nature of airline

business and a bus or coach sector will be different in terms of getting market share and

offering services to its customers.

4.2 How competition among different transports beneficial for tourists?

Tourism and travelling always live together. Tourists have to choose best way of travelling, it

is also an important decision to select best suitable mode of transport according to time,

money and preference. Due to innovative technological features, it is now more easy for a

common man to choose and compare best source of journey according to their demand.

Online facilities through internet is great opportunity for tourists, they can select their

transportation mode anywhere, anytime, without tension of physically visit to a local travel

agent.

To attract potential customers, companies are offering different incentives. Tourist also get

benefit with this competitive situation, as now they can:

Choose best source for travel according to their income level, time and preferences.

Wait for offers, discounts or ticket fares to get ticket on reasonable price.

They enjoy marketing benefits which companies offer occasionally for its existing

customer, for example, any gift, voucher or a holiday trip with family, etc.

due to competition among transporters, passengers get best customer service because

no one want to lose their potential strength, so try to give best services every time.

Due to a health competition in market, now tourists and visitors have variety of services and

transportation modes, now its up to the choice of the individual to choose best one according

to their demand.

Page 18 of 26

UNIT 4 Marketing and Sale Promotion

This is one of the important unit of whole study, which provides useful information regarding

marketing and sales promotional activity. This will be helpful to understand the importance

of sales and marketing, especially in travel and tourism industry.

TASK 1 Application of marketing principles in tourism sector.

This part of unit 4 discuss marketing principles which influenced on development of tourism

industry. Benefits of market segmentation and application of marketing mix strategies would

be discussed here.

1.1 Marketing mix principles applied to tourism industry.

Marketing is not only to advertise product or service; it is exactly to find out the demand of

final consumers and offer them the product after satisfaction. Marketing Mix term used by

Neil Borden (1953), after that 4 p’s (price, place, product, promotion) classification in 1960

was proposed by E.Jerome McCarthy.

Figure: Marketing Mix. www.provenmodels.com/.../jerome-e.-mccarthy/

Principles of marketing applied in every business, in tourism industry it is also important to

implement these basis strategies to become successful in competitive market environment.

Price: price is major influencing factor on customer’s preferences related to specific

product. Tourists can attract customer by offering prices according to:

Seasonal demand of package

Competitive price according to competitor’s strategies.

Place: Place mean is to offer right product at right time to potential customers. It

includes:

Distribution channel must be in access of customers

To provide retail services such as travel agents

Page 19 of 26

Give information about product availability via using electronic media, such as

Internet,

Direct marketing to potential customer, such as deliver package detail to customer

through direct mail.

Product: product is the actual thing for which customer are paying their money and

time. In tourism industry it can includes.

Product feature detail

Describe services as well which are complimentary with product.

Give brief detail which is expected to be visited, can use projectors and

multimedia for better understanding.

Promotion: promotional activities are best way to attract customers. It can

includes:

Advertisement of product features

Offer , discounts, sale on non-seasonal timings.

Use of media.

1.2 Segmentation benefits for tour operators.

Segmentation means to separate market into smaller groups of potential customers on the

basis of common characteristics. Segmentation helps to allow a business to develop a product

plan according to desires of customers.

Figure: Market segmentation. http://magia3e.files.wordpress.com/2007/12/web2-user-

roles.gif?w=600

In travel and tourism sector, tour operators also can use segmentation techniques, on the

basis of customers characterises and their interest towards the offered product. Segmentation

criteria’s can be different for domestic tourists and outsiders. Tour operators can segment

whole population in terms of:

General business/leisure tours

Long term trips

Short term trips

Page 20 of 26

Holidays (family, group, activity based holidays)

After a proper segmentation, it becomes essay for operators as well as final consumer

(tourists) to fit themselves in best category.

TASK 2 Marketing strategies and communication strategies

understanding.

This phase of study cover marketing strategies as well communication strategies applied on

tourism industry. Furthermore, this whole activity is related to discussion about advantages of

branding with relation to any product (such as holiday product studied by student).

2.1 Advantages of branding.

Implementation of marketing strategies is important of any business, as well as

communication of providing information regarding the features is also great art. There are

different ways to introduce product or service in front of target audience.

Brand can be defined an idea or image about product/services which is offered to final

consumer. Brand can be identified by name of product, slogan, logo or a specific design of

company to represent it name. Branding is important for:

Build brand recognition

To create good will of product

Good market reputation

To set of standards (that company want to maintain)

Help to reduce marketing expenses (as customers aware about product already)

Extensions in business becomes easy if company already have good brand value.

For completion of this task, a brand information as a holiday product has examined (study of

Affinton International Travellers). They provides different range of products/services

according to customer needs in travel and tourism sector. Company provide holiday products

in competitive and dynamic market. With a strong brand positioning, they offer wide range of

holiday products. (from annual family trips to an individual exotic place of interest).

Company is getting advantage of it brand name good will by using

Experience

Knowledge

Connection with other service providers.

They offer a wide range of compelling consumer benefit which includes

On sign up to the programme, a free European flight offer (excluding tax)

Page 21 of 26

Fully established travel agency, admit to offer 5% lowest price at time of booking. As

well as provide assistance throughout the abroad with travel helper.

60% discount in more than 20,000 hotels (world wide).

Free membership pass in VIP lounge access.

Offer discounts on seasonal basis

Company belief that they have maintained a unique set of trust and benefits among its

customer, their brand name is name A strong brand positioning helps to promote product in

potential customer market. Friends and families discussed in social gatherings about brands

when they have to discuss any product.

TASK 3 Use of sales and promotions in travel and tourism industry.

This part of study discuss the benefits of promotional activities to promote products and

services in T & T industry. External influences effect on tourism market will be examined as

well marketing objectives would be discussed.

3.1 Two external influence which affect a tourism product.

External influences can be any change in behaviour of consumers due to outside factors. It

can be change in individuals lifestyles, law and regulations, competitors policies, political

factors, technological factors, etc. A change of external influence can change a consumer

decision regarding use of any product or service. in a tourism industry, there can be different

influences from external market, two are discussed here.

Competitor’s policy: Tourism industry is surviving in highly competitive

environment, even that they have to face challenges from outside world. Every

business want to become market leader its brands. A minor change in competitors

policy regarding a product directly influence on other tourism companies.

Businessmen have to aware about outside attractions to survive further.

Technological Influence: This is world of inventions and innovations. A minor or

major change in product or services influenced on every business. On travel and

tourism sector, technological changes have great importance. Now customers have

access to internet to keep themselves up to date about any product or service offered

by travel operators. Tourists have information about booking or reservation system by

self; they can choose best available service anytime with the use of technology.

3.2 Analysis of 3 marketing objectives in a promotional campaign

Marketing objectives are the goals and targets which a company want to achieve through its

products of services. These targets or objectives should be definable and quantifiable (can be

achieved). A successful promotional campaign must provide these outcomes at the time of

completion.

Promotional message must conveyed to target segment of people

Page 22 of 26

Objective must be understandable by audience

A time period should be defined for completion of objectives

It should be measurable in terms of achievement of desired goal.

In a promotional campaign, marketing objectives can be:

To earn profit: this is one of the main objective that every organization want to

achieve. Completion of this objective is possible by offering best products and

services to keep happy and retain existing customer and to attract new one.

Market share: most of companies set their target to earn a specific percentage of

market share, for example, company decide to achieve 10% market share this year in

tourism industry.

Customer relationship building: customers are main identity who can help to achieve

organization’s targets and objectives. Now companies are paying more attention on

customer relationship by giving them best services or ask them for feedback.

TASK 4 Marketing research in selling of products & services.

This activity of unit 4 is designed to discuss marketing research areas in selling of products

and services. Research methods (primary and secondary) will be discussed along with

advantages and disadvantages. Furthermore, sources used by tour operators to plan a holiday

would be explained.

4.1 Advantages/disadvantages of primary & secondary research method.

Primary Research: A fresh collection of data or information is known as primary

research. This is up to date information which is collected first time, also known as

first hand data. Information in primary research collected through questionnaire,

interview, observation, etc.

Advantages:

Provide specific information according to researchers requirement, which can be

utilized directly on research purpose.

Fresh, unpublished information which is collected first time.

Disadvantages:

This is expensive way of data collection as compared to other sources of information.

Its a time taking activity, sometime data becomes older if project time is long.

Secondary Research: this is second hand source on information, which based on

already published material. Information gathered in this research type form reports,

Page 23 of 26

Newspapers, Government & NGOs statistics, journals or any source of published

data. Sometime secondary sources used at initial stages of research to estimate

existing situation and take measures to get more information. Internet are basic source

to collect secondary information.

Advantages:

Easily available in form of published material, can collected through lots of sources

such as internet, paper media, electronic media.

A time and effort saving way of data collection.

Disadvantages:

Outdated and old information, which does not meet quality information criteria

Sometime this information not exactly according to researcher’s requirement.

Information can be related to subject matter but not exactly according to criteria.

4,2 Internal & external sources of information used by tour operators.

In any business, information collected through various sources. It’s a big challenge for

organizations to sort out relevant and important information.

Internal source of information: Information which is collected from inside the

organization. Information can be of different types, depending on situation or

requirement of current system. Internal sources for information can be employees,

recorded data, surveys, organizational charts, financial reports, etc.

To collect information for overseas holiday trip, a tour operator have different means of

information collection, two of them can be:

Internet is one of the fastest and rapidly growing mean of booking flights and

overseas holiday trips. According to survey, British use internet 5 to 10% for holidays

arrangement, where as America is about 30%. Tour operators are using internet

facility for product/service presentation.

Company reports (news letters) are also an internal source of information using by

tour operators. With the help of existing recorded information about a specific tourist

place, operators can choose easily destination for new visitors/tourists.

External source of information: External information refers to data collected from

outside the organization.

Market research: Tour operators can search outside market as well to check the trends

and preferences of people about a place of interest. Competitors strategies and overall

market tendency helpful for tour operator to choose a place for holiday trip.

Page 24 of 26

Consumers demand: Visitors or tourists are also best external source of information,

who give suggestions and feed back to tour operators about a place of interest. They

can directly discuss about overseas destination which they want to visit.

Page 25 of 26

CONCLUSION

Travel and tourism has become popular and fastest growing human activity. People want to

spend time with themselves, friends and family for a certain period. This whole study was

about tourism facts and information which can be helpful for a common man as well as for

tourists or visitors.

Four units covered a lot of information about development and growth of tourism industry,

famous places of interest, marketing techniques which appeal customers to visit these places.

A comprehensive detail provided about transportation services availability for tourists.

Overall, this whole study focused learning outcomes, which are essential to be met by

learners.

.

Page 26 of 26

REFERENCES

Text book

Allen L.R, P.T. Long, R.R. Perdue, and S. Dieselbach. 1988.’The impact of tourism

development on resident’s perception of community life’. Journal of Travel Research 27(1): 16-21.

Deller , S.C., D.W. Marcouiller, and G.P. Green. 1997. ‘Recreational housing and local

government finance’. Annals of Tourism Research 24(3): 687-705.

‘Marketing in Travel and Tourism’ By Victor T. C. Middleton, Alan Fyall, Michael Morgan,

Ashok Ranchhod.

‘Strategic management for travel and tourism’ By Nigel Evans, David Campbell, George

Stonehouse.

Web links

http://www.affinioninternational.com/travellersadvantage.html

http://www.atheuk.com/course-delivery-guides-resources/resources/advanced-international-

diploma-in-travel-a-tourism/13-unit-1-travel-a-tourism-an-analysis/79-supply-and-demand

http://assets.cambridge.org/052189/235X/sample/052189235XWS.pdf

http://www.bookish.co.nz/compare-prices-for-a-

book.aspx?isbn13=9780415424318&title=International+Business+and+Tourism

http://scholar.lib.vt.edu/theses/available/etd-11142000-

15560052/unrestricted/FrontMatterDissertationDefense.pdf

http://www.wttc.org/