Chapter 5

Passenger Transportation

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Learning Objectives

•Comprehend the importance oftransportation in tourism.

•Understand the airline industry and its role in travel.

•Examine the domination of the automobile in travel.

•Learn about the role of rail and motor coach travel.

•Study the cruise industry.

Operating Sectors of the Tourism Industry

Passenger Transportation Structure

Other

Transportation

Road Rail Water

MotorBike

MotorBike

AutoAutoBusBus VehiclesUsed for Accommodation

VehiclesUsed for Accommodation

InlandInland MaritimeMaritime

Air

Charter

Private

ScheduledCharter

andTour

Operator

Scheduled

Rental

PrivatelyOwned

TruckCamper

MotorHome

TravelTrailer

TentTrailer

Other

Commercial

PrivateCommercial

Private Private SnowmobilesFoot

BicyclesHorseDrawn

VehiclesAerial

Tramwaysand Ski Lifts

CharterScheduled

Commercial

CharterScheduled

Urgent Transportation Problems

1. Congestion

2. Safety and security

3. Environmental damage

4. Seasonality

www.virgingalactic.com

Airline Industry

•World airline industry carries over 1 billion passengers per year.

•The U.S. airline industry in 2005

* Employs 600,000 people

* Records revenues of over $100 billion

However, since 2001 (9/11), U.S. carriers have suffered large losses. A weak air transportation system affects the rental car business, hotels, and attractions.

Low-cost carriers are growing.

Two different business plans

Hub to Hub vs secondary routes

600 passengers (pax) vs 300 pax

Airbus and Boeing

Open skies agreements (page 126)

Read and answer Discussion Questions

Checkout

“State of the Industry” video

www.iata.org

http://video.google.com/videoplay?docid=-6670565021267648028

or

What do business people want?

They hate standing in long linesThey hate wasting timeThey hate being lateThey want to be looked afterThey want efficient quality serviceThey want flexibility and choice

Low Fare Airlines

You get a low fare, but that’s allNo foodCramped seats, “Cattle class”They drop you off 100 miles from your

destinationLittle or no serviceTry to buy a ticket for next day travel, and

compare it to the full service airlines

No Train. No Gain

No Train. No Gain

High speed rail, what does it mean?

The natural choice

Time savings

Cost savings

Enhanced traveller experience

Going green

The future…

The Return of the Train...

Check out www.virginrail.com

Motor coach Industry

•Intercity bus passengers tend to be lower income non-business travelers who are very price sensitive.

•Intercity bus service is becomingless important due to increased auto ownership and aggressive airline pricing.

•Bus travel is characterized by:• More travel to and from rural areas

and small towns than other modes of transportation.

• Lower average ticket revenues than other modes.•Intercity bus industry is a small-business industry

with a great deal of flexibility.• Many bus companies focus primarily or exclusively on

charter, tour or commuter operations.

The joy of the open road…

                                                                                                                              

Some figures…

Road traffic grown by 81%

Car traffic up by 85%

Light van traffic more than doubled

Car occupancy rates falling

Rapid increases in CO2 emissions from road transport 1980 - 1990

Summary

Car essential part of corporate travel arrangements and benefits packages

Balanced use of other transport means

Be aware of, and manage, the associated risks

The ‘green’ factor

But…

Car Walk Bicycle/Motor cycle

Local Bus Rail / tube Other

Source: Dept for Transport

Automobile• Most popular mode of travel in the world because of

affordability, flexibility, and convenience.

• In the U.S., the Travel Industry Association of America reports that 80% of person-trips are made by auto.

• Rental car industry growingin importance.

* Grosses approximately $20 billion per year.

South-East Asia – 12,600 km

North-east Asia – 32,500 km

Central Asia and Caucasus – 13,200 km

South-Asia + IR of Iran & Turkey – 22,100 km

Trans-Asian Railway Trans-Asian Railway

TAR in Central Asia and Caucasus TAR in Central Asia and Caucasus

To EuropeTo East Asia and beyond

Trans-Asian Railway Northern Corridor

TAR Northern Corridor TAR Northern Corridor

Cruise Industry• Fastest growing segment of the travel industry.

• Since 1980 had average annual growth rate of 8.1%.

• Expanding fleets.

• Adding new ports of call.

• Seeing consolidation.

• Served by the Cruise LinesInternational Association.

The Development of the Cruise Sector

Phases in Cruise Sector Development

Cruise tourism has developed in phases.

So let’s start with a look at the development of the cruise sector of the travel and tourism industry:

Phase 1: Beginnings

In the 1920s, cruise tourism was the preserve of the social and economic elite.

But after WW2, the development of air travel dented the growth of cruising, as it became more fashionable to use passenger aircraft.

Phase 2: Consolidation

In the second half of the 20th century cruise holidays became most popular to the affluent and late middle-aged demographic groups.

Taking a cruise holiday conjured up images of past luxury and opulent lifestyles.

It was also a way to chase the sun in the winter months, while avoiding mass tourism.

Phase 3: Re-birth

In the later years of the previous century, cruise travel was revitalised.

The sector has grown steadily since 1980, at an estimated annual growth rate of 8%.

The cruise industry has targeted new market segments, attracting younger passengers and differentiating the cruise offering.

Phase 3: Re-birth

This stage has seen the development of:

Fly-cruise optionsIncreased cruise ship capacitiesVariable cruise durationsVariable price optionsMore choice over itineraries

Phase 4: The future

In future, analysts expect the following trends to continue:

More mega cruise ships benefiting from larger economies of scale

Greater product differentiation including offerings to families, the youth market and ‘lifestyle’ cruises

More recreational opportunities on board cruise ships

Phase 4: The future

More design and technical innovation in cruise ships

New cruise regions, as traditional areas become congested

New cruise locationsGreater conflict between the cruise

industry and environmentalists

Check outSilver seas video

Cna yuo raed tihs? Olny 55 plepoe out of 100 can. i cdnuolt blveiee taht I cluod aulaclty uesdnatnrd waht I was rdanieg. The phaonmneal pweor of the hmuan mnid, aoccdrnig to a rscheearch at Cmabrigde Uinervtisy, it dseno't mtaetr in waht oerdr the ltteres in a wrod are, the olny iproamtnt tihng is taht the frsit and lsat ltteer be in the rghit pclae. The rset can be a taotl mses and you can sitll raed it whotuit a pboerlm. Tihs is bcuseae the huamn mnid deos not raed ervey lteter by istlef, but the wrod as a wlohe. Azanmig huh? yaeh and I awlyas tghuhot slpeling was ipmorantt!

Please work on Questions for Review and Discussion

(use the Textbook and the handout)

from the textbook …………….Chapter 4 (2-4,15-17)

& Chapter 5 (1,3,5-11)