TOURISM INDUSTRY

CHAPTER 6

Learning Outcome

Understand the travel and

tourism industry
2. Elaborate differences between
travel agent and tour operator
1.

WHAT IS TOURISM?
Activities of person traveling to and staying
in places outside their usual environment
for not more than one consecutive year for
leisure, business and other purposes
(World Tourism Organization, 2004)

Tourism is a composite of activities,

services, and industries that delivers a

travel experience: transportation,
accommodations, eating and drinking
establishments, shops, entertainment,
activity facilities, and other hospitality
services available for the individuals or
groups that are traveling away from home
McIntosh et. Al(2000, pg 14)

4 Different perspectives of tourism

1. The tourist
2. The businesses providing tourist goods

& services
3. The government of the host community
or area
4. The host community

4 Different perspectives of tourism

1. The tourist

Seeks various physic and physical experiences and

satisfactions.
determines the destinations chosen and the activities

2. The businesses providing tourist goods and

services

Businesspeople tourism as an opportunity to make a

profit by supplying the goods and services that the
tourist market demands.

4 Different perspectives of tourism

3. The government of the host community or
area

Politicians tourism as a wealth factor in the economy of

their jurisdictions
Related to incomes their citizens can earn
Foreign exchange receipts (tax receipts collected from
tourist expenditures)

4. The host community

Local people tourism as cultural and employment

May be beneficial or harmful

Types of tourism
1. International tourism
a) Inbound tourism
b) Outbound tourism

2. Internal tourism
3. Domestic tourism
4. National tourism

Types of tourism
1. International Tourism
a) Inbound tourism: visits to a country by nonresidents. E.g. Australian to Malaysia
b) Outbound tourism: visits by residents of a
country to another country. E.g. Malaysian to China

2. Internal Tourism

Visits by residents of a county to their own country

E.g. Kuching to Kuala Lumpur

Types of tourism
3. Domestic Tourism

Internal + inbound
E.g. Kuching to Kuala Lumpur (Malaysian)
E.g. Australian to Malaysia

4. National Tourism

Internal + outbound
E.g. Kuching to Kuala Lumpur (Malaysian)
E.g. Malaysian to China

Definitions of Tourists
1.

Visitor

Same-day visitors?
Tourists?

2.

International tourists

3.

Excursionists

4. Domestic tourists

Definitions of Tourists
Visitor

1.

Same day visitors visitors who do not spend the night

in a collective or private accommodation in the country
visited. E.g. a cruise ship passenger spending for hours
in a port or day trippers visiting an attraction
Tourists visitors who stay in the country visited for at
least one night. E.g. a visitor on a two week vacation

2. International Tourists

Temporary visitors staying at least 24 hours in the

country & purpose of journey can be classified:
leisure (recreation, holiday, study, religion, sport) or
business (family, mission, meeting)

Definitions of Tourists
3.

Excursionists

4.

temporary visitors staying less than 24 hours,

including passengers on cruise ships

Domestic Tourists

referring to tourists who do not go outside their

country of residence

Nature of Tourism
movement of people to and stay in various
places of destinations
outside usual environment or normal place of
resident and work
temporary periods and short term
visited for purposes other than permanent
employment and residence

Nature of Tourism
1.Travel
the action and activities of people taking trips to a place
or places outside their home communities for any purpose
except daily commuting to and from work

2.Leisure
a combined measure of time and attitude of mind to
create periods of time when other obligations are at a
minimum free time

3.Recreation
the action and activities of people engaging in
constructive and personally pleasurable use of leisure time

COMPONENT OF TOURISM & TOURISM

MANAGEMENT
1. The tourist
2. Catalyst, planning, development &
promotion organizations
3. Operating sectors (spirit of hospitality)
4. Natural resources & environment
5. The process, activities & outcomes of
tourism
6. Careers in tourism

COMPONENT OF TOURISM & TOURISM

MANAGEMENT
1. Tourist
2. Catalyst, planning, development &
promotion organization
- Public sector and private sector

3. Operating sectors (Spirit Of Hospitality)

- Accommodation, tourism services, transportation,
entertainment, food services, adventure & outdoor
recreation, attractive, events, travel trade.

COMPONENT OF TOURISM & TOURISM

MANAGEMENT
4.

Natural resources and environment

- Physiographic, climate, people
- Built environment (information, culture, technology,
government, superstructure, infrastructure)

5. The processes, activities and outcomes of

tourism

- Organization Philosophy Research Policy Vision

Strategy Planning Development Marketing
Visitation Behaviors Experiences Impacts Monitoring
Evaluation - Stewardship

6. Careers in tourism
- Lodging, Food n Beverage, Travel & Tourism Industry

Basic Structure of the U.S travel

industry
Governments
IATA,ATA
other
Airlines &
Other
Carriers
Hotels

Any Tour
Wholesaler

Other
Destination
Services

Retail Travel
Agent or Other
Retail Outlet

Suppliers
Public

A. TOUR OPERATORS

A. TOUR OPERATORS
Put together a tour & all of its components, sells the tour
through his/her own company through retail outlets &/or
through approved retail travel agencies
Offer vacation packages to the traveling public at prices
lower than individual traveler can arrange
Because wholesalers can buy services
( transportation, hotel rooms, sightseeing services, airport
transfers & meals) in large quantities at discounted prices

A. TOUR OPERATORS
Planning, preparing & marketing a vacation tour including
making reservations & consolidating transportation &
ground services into a tour
Tour sold to the public through retail outlets (travel agents
& airline ticket offices)
Provide the retailer & the public with a wide selection of
tours to a large number of destinations at varying cost,
durations & various seasons

A. TOUR OPERATORS
Supply advance notice & increased assurance of future
passenger volumes to suppliers
Consolidating the services of airlines & other carriers with
the ground services needed into one package, can be sold
through travel agents to the consuming public

A. TOUR OPERATORS
ORGANIZATIONS:
1.
2.
3.
4.
5.
6.

NTA
USTOA
ASTA
PATA
CTO
TIA

A. TOUR OPERATORS
NTA (National Tour Association)
Interest in the packaged travel sector
Promoting partnering & networking among members,
suppliers & destinations
Focuses on development, promotion & increased use of
packaged travel
Consumer advocate through code of ethics, membership
requirement & education
Provides marketing assistance, educational programs,
governmental representation & communication for
membership and produces (NTA Convention and Tour &
Travel Exchange)

A. TOUR OPERATORS
USTOA (United States U.S. Tour Operators
Association)
Ensure consumer protection & education
Inform the travel industry, government agencies & public
about TO activities & objectives
Maintain high level of professionalism
Members required to represent all information about tours,
maintain high level of professionalism, state clearly all cost
& facilities in advertising & promotional materials

B. TRAVEL AGENTS

B. TRAVEL AGENTS
Middleman a business / person selling the travel
industrys individual parts / combination of the parts
to the consumer
Agent middleman, acting on behalf of the client,
making arrangement with suppliers of travel (airlines,
hotels, tour operators) & receiving commission from
suppliers / fee from client

B. TRAVEL AGENTS
Agent of the principal
Legally appointed agent, representing the principal in a
certain geographic area
As broker (bring buyer & seller together) for the other
suppliers (hotels, car rentals, ground operators & tour
companies)
Expert, knowledgeable in schedules, routing, lodging,
currency, prices, regulations, destinations & other
aspects
Specialist & counselor , save client both time & money

B. TRAVEL AGENTS
The Changing World of the Travel Agent
1.
2.
3.

Tangible factor contribute decline

Internet
Airlines now attempt to bypass travel agents

B. TRAVEL AGENTS
ORGANIZATIONS
1.

ASTA

2.

ARTA

3.

NACOA

4.

ICTA

5.

CTC

6.

CTA

B. TRAVEL AGENTS
ASTA (American Society of Travel Agents)
1.
2.
3.

4.
5.
6.

7.

8.

Promote & encourage travel among people of all nations

Promote the image & encourage the use of professional TA
Promote & represent the views & interests of TA to all levels
of government & industry
Promote professional & ethical conduct in the TA industry
Serve as an information resource for the industry worldwide
Promote consumer protection & safety for the traveling
public
Conduct educational programs for members on subjects
related to the travel industry
Encourage environmentally tourism worldwide