Tourism supply issues - PowerPoint PPT Presentation

1 / 47
About This Presentation
Title:

Tourism supply issues

Description:

Chapters 5 to 9 Objectives To understand the types of tourism suppliers involved producing the tourism experience Determinants of supply Tourism supply is a ... – PowerPoint PPT presentation

Number of Views:205
Avg rating:3.0/5.0
Slides: 48
Provided by: Alastair69
Category:

less

Transcript and Presenter's Notes

Title: Tourism supply issues


1
Tourism supply issues
  • Chapters 5 to 9

2
Objectives
  • To understand the types of tourism suppliers
    involved producing the tourism experience

3
Determinants of supply
  • Tourism supply is a complex phenomenon because
    both the nature of the product and the process of
    delivery. It cannot be stored, cannot be
    examined prior to purchase, it is necessary to
    travel to consume it, heavy reliance is placed on
    both natural and human-made resources and a
    number of components are required, which may be
    seperately or jointly purchased and which are
    consumed in sequence
  • Sinclair and Stabler, 199758

4
Main aspects of tourism supply
  • Destination areas are comprised of
  • Attractions and activities
  • Accommodation
  • Transportation
  • Institutional elements
  • Other tourist facilities and services
  • And I would add hospitality
  • Inskeep, 1994

5
Attractions
  • A vital part of the tourism industry as they are
    the focal point of leisure travel
  • Include
  • Natural resources
  • Man-made resources
  • Activities such as special events and festivals
  • Swarbrookes typology of tourist attractions
  • See pages 76-78

6
Types of attractions
  • Museums and galleries
  • Cathedrals and churches
  • Leisure parks and piers
  • Wildlife attractions
  • Gardens
  • Farms
  • Country parks
  • Visitor centres
  • Workplaces
  • Steam railways
  • Special events
  • Others?

7
Characterized by
  • Scope
  • Ownership
  • Permanency
  • Drawing power

8
Ownership
  • Public
  • Tourism is not the primary use of the land,
    balanced with other agendas example National
    parks, historic sites
  • Not for profit
  • Primary use is for a social good, tourism is
    balanced with other causes examples, festivals,
    museums
  • Private
  • Primary motive is for profit, tourism is usually
    a means to this end examples theme parks,
    outdoor adventures etc.

9
Permanency
  • Site attractions
  • Are physical in nature
  • Natural or mand made
  • Permanent or semi permanent
  • Expensive to develop (require capital)
  • Examples?
  • Theme parks, convention facilities, museums,
    galleries
  • Event attractions
  • Are often intangible
  • Location can be changed
  • Not permanent
  • Inexpensive to develop
  • Can be used to help attract visitors (raise
    awareness)
  • Used to finance site attractions
  • Examples include festivals and events, tours

10
Drawing power
  • Refers to how much an attraction can draw people
    over the friction of distance and price
  • Local
  • Regional
  • Provincial
  • National
  • International significance
  • Examples?

11
Travel and tourism intermediaries
  • Tourism comprises thousands of products and a
    complex delivery system
  • Enhanced through improved distribution by travel
    intermediaries who package several different
    components (accommodation, transport, services).
  • Enhances access for consumers while increasing
    revenue for those in supply

12
Some benefits
  • Financial economies of scale
  • Bulk purchase of seats and rooms means customers
    benefit in two ways
  • Cost of package holidays are cheaper
  • Purchases can be made conveniently

13
Strategies used by intermediaries
  • Vertical integration
  • Companies purchasing or operating companies at
    different levels of the supply chain (hotel, car
    rental company, tour operator)
  • Horizontal integration
  • Companies purchasing other companies at the same
    level of the supply chain to maximize market
    share (hotels buying other hotels)
  • Diagonal integration
  • Companies use market to sell unrelated products
    to same customer base which provides more economy
    of scope
  • See p 86-88 for examples

14
Trend in intermediaries
  • Disintermediation
  • Elimination of the need for intermediaries
    through the advent of the WWW
  • People can now access and plan their own travel
    through the WWW taking away the need for the same
    range of intermediaries.
  • Sheer scale has increased dramatically and has
    changed the supply of tourism products
  • Examples?

15
Transportation
  • is acknowledged as one of the most significant
    factors to have contributed to the international
    development of tourism (Page, 1991,1)
  • Provides the essential link between the tourism
    origin and the destination areas and facilitates
    the movement of holiday makers, business
    travellers, people visiting friends and relatives.

16
Types of transport
  • Land based transport
  • Cars, coaches, rail, cycles, and other modes
  • Water based transport
  • Cruise ships, personal transport
  • Air travel
  • International, domestic carriers

17
Transportation Selection Model (Sheth)
  • Travelers choose modes on five performance
    dimensions
  • Functional utility
  • (how well does it perform? Is it efficient?
    Effective?)
  • Aesthetic or emotional utility
  • (how do I like it?)
  • Social or organizational utility
  • (how well is arranged?)
  • Situational utility
  • (where is it located?)
  • Curiosity utility
  • (what is it like?)

18
Factors influencing the choice of travel mode
(Morrison)
  • The availability of the mode
  • The mode design
  • The way the mode is operated
  • Personal demographics and lifestyles
  • Familiarity and satisfaction with the mode
  • Trip purpose
  • Impact of unexpected events

19
Transportation issues facing policy makers
  • Congestion
  • Safety and security
  • Environment
  • Seasonality
  • Ritchie and Goeldner, 2002

20
Evolution of air travel
  • 1918 first scheduled air service in U.S.
  • 1939 first transatlantic passenger flight.
  • 1960s number of inter-city air passengers
    greater than for trains.
  • 1970 first jumbo jet (Boeing 747).
  • 1978 airline deregulation in U.S.
  • Approximately 14,000 airports, employing more
    than 3 million people
  • US (2000) launched 24,600 flights per day and
    carried 1.6 million people each day earning
    129.5 billion in revenue
  • Incredible safety record the safest place to be!

21
Trends and issues
  • Deregulation and alliances
  • A high level of concentration exists to the
    extent that a wave of alliances have formed
  • US and EU are investigating how to deal with
    alliances
  • Will they continue? Will they benefit the
    customer? Will they create oligopoly?

22
Travel by Automobile
  • The growth of automobile travel
  • Led to the demise of rail travel.
  • Spread the benefits of tourism more widely.
  • Encouraged development of resorts.
  • Caused a more random pattern of travel movements.
  • North American travelers use automobiles for the
    majority of visits.

23
Attractive Attributes of Automobile Travel
  • Control over route and stops en route.
  • Control of departure time.
  • Ability to carry baggage and equipment easily.
  • Low out-of-pocket expenses of traveling with
    three or more persons.
  • Freedom to use automobile at the destination.
  • Safe mode of transportation.
  • Like of driving as a recreational experience.

24
Travel by Bus and Motor Coach
  • Benefits of traveling by motor coach
  • Companionship/making friends
  • Convenience
  • Expertise of tour company
  • Safety
  • Price
  • Most energy efficient mode of transport
  • High economic impact (192 per passenger, per day
    or 7,680 per day with 40 passengers)
  • Hub and spoke concept

25
Travel by Bus and Motor Coach
  • Negatives images of motor coach tours
  • Negative perceptions of the bus/coach (although
    studies are finding riders to be younger, better
    educated and more affluent than thought p.134
    GR).
  • Regimentation, inflexibility, and passivity of
    tours
  • Having to be part of a group
  • Infirm, older, and inexperienced travelers

26
Trends in motor coach travel
  • In competition with rail travel in Europe for
    youth travellers
  • Hub terminals are now changing, mirroring airline
    terminal concept to obtain more revenue from
    waiting passengers and to link to more travel
    products

27
Travel by Train
  • 1841 First tour by train (Thomas Cook).
  • 1869 First transcontinental route completed in
    the U.S.
  • 1830-1930 Height of train travel.
  • 1920s Influence of automobile starting.
  • 1970 Rail Passenger Service Act (U.S.)
  • 1971 Amtrak created.
  • 1977 Via Rail Canada created.
  • Outside of North America, rail travel takes on
    greater importance (Europe, India, China, Russia)

28
Reasons for Favoring Rail Travel
  • Safety
  • Ability to look out of trains and see interesting
    things en route.
  • Ability to get up and walk around.
  • Arriving at the destination rested and relaxed.
  • Personal comforts.
  • Source Amtrak

29
Negative Perceptions of Rail Travel
  • Slowness in reaching the destination.
  • Relatively inflexible departure times.
  • Lack of quality in food service.

30
Contemporary Trends in Rail Travel
  • The advent of high-speed trains (e.g., TGV in
    France, Bullet train in Japan).
  • Trains are increasingly being used as tourism
    attractions
  • The Orient Express
  • The Ghan, Australia
  • Algoma Central Railway, Canada
  • Strasburg Railroad, Pennsylvania, U.S.

31
Travel by Ship
  • 1840s beginning of steamship era.
  • 1957 peak of transatlantic ship travel.
  • 1958 more passengers crossing Atlantic by air
    than by ship.
  • 1960-75 declining volumes of scheduled liner
    passengers.
  • 1970-2000 growth in volumes of cruise ship
    passengers.
  • Since 1980 average annual growth rate of 8.4
  • 6.88 million passengers in 2000
  • Average length of cruise 6.5 days

32
Cruise Ship Travel
  • Two-thirds of worlds passengers are from U.S.
  • High repeat business
  • Expanding into new markets in Europe
  • Trying to expand into younger segments
  • Negative perceptions of cruises
  • Isolation, storms, seasickness.
  • Ships are slow, cramped and boring, with
    regimented activities.

33
Most Popular Cruising Areas
  • Caribbean
  • Alaska (adding in the Canadian west coast)
  • Mexican Riviera
  • Mediterranean
  • Strong growth expected in cruising in the
    Asia-Pacific region
  • Cruise lines international association is the
    marketing, promotional trade organization
    comprised of 23 major cruise lines.

34
Organization of Tourism
35
Objectives
  1. Understand the magnitude of world tourism in
    terms of the number of organizations that serve
    the needs of their diverse memberships.
  2. Recognize the variety of types and functions of
    tourism organizations.
  3. Know why government is often involved in tourism
    promotion and development.
  4. Learn how national, regional and trade
    organizations are structured and operated.

36
Organizing the tourism system
  • The tourism system is complex and requires
    numerous organizations at multiple levels to
    deliver tourism experiences to visitors.
  • Levels include International, national, state or
    provincial and local or regional.
  • Organizations provide
  • Policy and planning (to guide development of the
    industry)
  • Regulation (to control negative impacts and
    ensure safety)
  • Marketing (to promote travel and destination
    development)
  • Delivery (to connect visitors to tourism
    experiences)

37
International Organizations
  • World Tourism Organization
  • World Travel and Tourism Council
  • International Air Transport Association
  • International Civil Aviation Organization

38
Regional International Organizations
  • Organization for Economic Cooperation and
    Development
  • Pacific Asia Travel Association
  • European Travel Commission

39
National Organizations
  • Office of Travel and Tourism Industries (OTTI)
  • Canadian Tourism Commission
  • Travel Industry Association of America
  • China Tourism
  • Tourism Malaysia
  • And many others

40
Provincial or State Tourism Organizations
  • In Canada, provinces and territories coordinate
    with CTC
  • Example
  • Tourism BC
  • In the United States, there is no CTC equivalent
    so States market themselves
  • Example
  • Travel Michigan

41
Regional organizations
  • As there is still diversity in tourism
    destination areas at the provincial/state level,
    regional organizations are involved in promotions
    and product development
  • Example
  • Tourism BC Regions
  • Tourism Vancouver Island

42
Coordinating tourism development and promotion
  • Strengths
  • Tourism bodies represent industry and
    destinations
  • Areas of specialization have developed (policy,
    measurement, promotion)
  • Progressive, action oriented organization of the
    industry
  • Weaknesses
  • Rapid growth leads to overlap of work
  • Bodies do not represent environment or
    communities
  • Difficult to integrate activity from
    international to regional level
  • Definitions and methods differ

43
Discussion questions
  • What components of tourism development are the
    organizations concentrating on?
  • What components seem to be receiving less
    consideration?
  • Can you foresee any problems with this
    distribution of emphasis?
  • Is there a need for industry and government
    bodies or are there other models?

44
WTTC Blueprint for Tourism
  • In order to meet the challenges ahead and achieve
    the vision, the Blueprint establishes three
    fundamental conditions1. Governments must
    recognize Travel Tourism as a top priority2.
    Business must balance economics with people,
    culture and environment 3. All parties must
    share the pursuit of long-term growth and
    prosperity

45
Governments must recognize Travel Tourism as a
top priority
  • To meet the first condition, governments must
    Elevate Travel Tourism as an issue to the top
    level of policy making Create a competitive
    business environment Ensure that quality
    statistics and data feed into policy and
    decision-making Invest in developing the
    appropriate human capital Liberalise trade,
    transport, communications and investment Build
    confidence in safety and security Promote
    product diversification that spreads demand
    Plan for sustainable tourism growth, in keeping
    with cultures and character Invest in new
    technology, such as satellite navigation systems

46
Business must balance economics with people,
culture and environment
  • To meet the second condition, the industry
    must Expand markets while protecting natural
    resources, local heritage and lifestyles
    Develop people to narrow the gap between the
    haves and have-nots Provide traditional
    tourism products sensitively Reduce seasonality
    and increase yields with imaginative new products
    Improve quality, value and choice Agree and
    implement quality standards at all levels
    Transfer skills and best practice throughout the
    industry Increase the sophistication of
    information, to make better business decisions
    Communicate more broadly and more effectively

47
All parties must share the pursuit of long-term
growth and prosperity
  • To meet the third condition, all the main
    stakeholders must Ally best practice in
    tourism with government policy Prepare
    sustainable master plans for entire
    destinations Create locally driven processes
    for continuous stakeholder consultation
    Restructure national tourism boards Set
    environmental policy goals that can be met
    Develop and deploy skills effectively
    Collaborate on information requirements
    Collaborate on security Develop confidence on
    all sides
Write a Comment
User Comments (0)
About PowerShow.com