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Intro to Tourism & HospitalityChapter 7
Copyright
Introduction to Tourism and Hospitality in BC by Morgan Westcott, Editor, (c) Capilano University is used under a CC-BY 4.0 International license.
This chapter is by Heather Knowles and Morgan Westcott and is used under a CC-BY 4.0 International license.
Learning Outcomes
Describe the key characteristics of the travel services sector
Define key travel services terminology
Differentiate between types of reservation systems and booking channels
Discuss impacts of online travel agents on the sector
Identify key travel services in Canada and British Columbia
Explain the importance of tourism services not covered under NAICS
Describe key trends and issues in travel services worldwide
Overview
Travel Services: assist with planning and reserving components of the visitor experience (Government of Canada, 2014) Travel agencies OTAs Tour operators DMOs Other
Tourism Services: includes consultants, accommodations, etc.
Figure 7.1: HelloBC.com
Travel Agencies
Intermediary between the travel industry (supplier) and the traveller (purchaser)
Market prepackaged tours and holidays to potential travellers
Broker between traveller and hotels, car rentals, tour companies
(Goeldner & Richie, 2003)Figure 7.2: A travel agency in the UK
Online Travel Agents (OTAs)
Companies that aggregate accommodations and transportation options
Booking.com, Expedia.ca, Hotwire.com, Kayak.com
In 2012, sales of almost $100 billion (Carey et al, 2012) and almost triple that in 2013
Expedia buyout of Travelocity ($280 million) in 2015 meant decreased competition (Alba, 2015)
Challenge for the industry: commissions eat into profits, some businesses can’t afford to be inventoried, taxes aren’t remitted to destinations
Travel Agents
Direct point of contact for traveller
Can specialize in certain types of travel (e.g. outdoor adventures, culinary tours)
Some at fixed address (bricks-and-mortar), some offer services online, some do both
Usually have a specialized diploma or certificate
(go2HR, 2014)
Tour Operators
Tour operators package all or most of a trip components and then sell to the consumer
Inbound: bring travellers into the country
Outbound: send travellers out of the country
Receptive Tour Operators (RTOs): not agents, don’t operate tours – represent tourism products to tour operators (B2B
Figure 7.3: A group tour in Alberta
Other Organizations
DMOs (with OTAs they provide fewer trip planning functions and work instead on FAMs and other travel trade support)
Travel management companies (e.g. Concur), which support business travel planning
Destination Management Companies (DMCs) that plan and package travel to be used as rewards or awards (incentive travel)
Travel Services in Canada and BC
Many agencies are members of ACTA (Association of Canadian Travel Agencies)
In Vancouver alone there are over 500 travel agencies
In Canada tour operators use events like Canada’s West Marketplace (BC and Alberta) and Rendezvous Canada to sell to RTOs
Figure 7.5: Whales spotted from a tour
Travel Services in Canada and BC
Destination Canada (formerly the Canadian Tourism Commission) is our national DMO
Destination BC uses the HelloBC brand to help consumers trip plan
BC’s five RDMOs (regions) support trip planning as do CDMOs at the community level
Figure 7.6: Visitors check out the VC
Tourism Services (not under NAICS)
Sector-specific organizations
Tourism HR organizations
Training providers
Institutions
Government branches
Economic development and city planning offices
Consultants
Figure 7.7: Student-Industry Rendezvous
Trends and Issues
Budgets – Destination BC and others are challenged to provide innovative services for less money Competing destinations
have more resources
Technology has revolutionized this part of the industry
Figure 7.8: Booking is now possible 24/7
Conclusion
Financial resources are limited and competition for tourist dollars is strong
Just 20 years ago, travel agents were paramount to the process, now they must innovate
Rapid pace of change means everyone must stay abreast and adapt as quickly as possible
References
Alba, Davey. (2015, January 23). Expedia buys Travelocity, merging two of the web’s biggest travel sites. WIRED. Retrieved from www.wired.com/2015/01/expedia-buys-travelocity-merging-two-webs-biggest-travel-sites/
Carey, R., Kang, K., & Zea, M. (2012). The trouble with travel distribution. Retrieved from www.mckinsey.com/insights/travel_transportation/the_trouble_with_travel_distribution
Attributions
Figure 7.1 HelloBC Homepage by LinkBC is used under a CC BY-NC-ND 2.0 license.
Figure 7.2 Travels Agent, Huddersfield by Dave Collier is used under a CC-BY-ND 2.0 license.
Figure 7.3 Up on the glacier by Paul Gorbould is used under a CC BY NC ND 2.0 license.
Figure 7.4 Whales off Victoria, BC by Brian Estabrooks is used under a CC-BY-SA 2.0 license.
Figure 7.5 Visitor Information by Heather Harvey is used under a CC-BY-SA 2.0 license.
Figure 7.6 Floe Lake, Kootenay National Park 037 by Adam Kahtava is used under a CC-BY 2.0 license.
Figure 7.7Tourism Vancouver’s Rick Antonson addresses the audience at Rendezvous by LinkBC is used under a CC-BY-NC-SA 2.0 license.
Figure 7.8 5 Top Rated Tablet PCs by Siddartha Thota is used under a CC-BY 2.0 license.