Principles of Hospitality Chapter 2

Travel & Tourism: Partners in Hospitality

• _______________and tourism make up the world’s __________________.

• Hospitality Businesses are _____________ or independent from each other, but ___________because they have an ________________

Hospitalitylargest industry

separate

are related

effect on each other

• Destinations and facilities can motivate people to travel.

• Tourists are traveling for pleasure. • The tourism industry is concerned with

attracting people to an area for its attractions and events.

Destinations

• It’s not enough for a destination to be nice, attractive….

• It has to be marketed• Potential tourists have to find out about it• It might be difficult to get to…

– Hawaii, Galapagos Islands• Tourists might not know about great

destinations!

Marketing Destinations

• Destinations can be natural– Example: beach, Grand Canyon, Pyramids

• They still need access such as:– Roads, air flights, places to stay and eat

• Other destinations are constructed:– Resorts (Disney World), major cities

• Access is needed here also– This is known as INFRASTRUCTURE

Marketing Destinations

• Without a good INFRASTRUCTURE, tourists will not want to visit.

• Governments play a role in developing and marketing destinations.– Planning, developing, regulating

Government Role in Marketing Travel

• Tourism is profitable and good for an economy• Government agencies that promote tourism:

– Tourism offices– Destination marketing organizations– Convention and Visitor’s Bureaus

• Their mission is to bring information about their destination to travelers

Role of Private Industry in Marketing Travel

• Tour packages• Frequent Guest Programs• Frequent Flyer Programs for Airline Travel• Developing the right mix of amenities

– Do we need technology services? – Business travelers need to stay “connected”– Tourists might WANT to stay “connected”– Some travelers might NOT want to be “connected”

• Defining the customer – young, old, female, families, singles….

Travel IntermediariesThe “Middleman”

• It’s a challenge for a hospitality business to reach ALL potential customers

• Travel Intermediaries work to make travel EASY for travelers– They make $ for themselves and the businesses

they represent– It’s a SERVICE for the travelers

Types of Travel Intermediaries

• Retail Travel Agents– Get commission (% of what they sell) from the

hospitality companies• Hotels, airlines, rental car agencies• Travelers used to call their Travel Agent to plan and

book travel• Being replaced by on line distribution companies

– Too easy for the traveler to do it themself

Types of Travel Intermediaries

• Tour Wholesalers: – Designs and puts together travel arrangements

• All inclusive: airfare, hotel, restaurant, ground transportation (rental car or bus) admission to attractions

• Sell directly to travelers or to retail travel agents– Charter operators: assemble the tour– Tour Operator: sell the tour, include a guide– Inbound Operators: arrange trips to people visiting the US

from other countries

Types of Travel Intermediaries• Corporate Travel Managers:

– Work directly for a corporation, make arrangements for the employees traveling on business (NOT tourism)

• Incentive Travel: – Put together packages and sell them to companies

as rewards for their employees• Meeting Planner:

– Makes all plans for travelers to attend an exposition or convention

Why do People Travel?

• Business• Pleasure or Leisure

Business Travel

• Business Travelers travel to conduct business– Little choice of destination– Want convenience– Travel is somewhat ELASTIC

• If economy is bad, a company will try to conduct business by phone, or telecommunications

– Competition for business travelers is fierce• They HAVE to travel…will pay more $

–Conventions, trade shows, expositions, congress

Leisure Travel• Demand is very ELASTIC – • if economy is bad, people will not travel• More selective or picky on price – want a deal

Leisure Travel• Reasons:

– Visiting friend/relative– Opportunity for education (elderhostel, study

abroad)– Cultural attractions (museums)– Nature– Recreation– Special Events– Religion– Health(Spas, climate)– COMBINATIONS of the above reasons

Image of a Destination

• Marketing of the Destination is important– The Image of the Destination will attract or repel

travelers• Books, movies, television, photograph, news media,

advertising all contribute to image– Big City, Wide open Spaces, winter, Summer, even state

license plates

• A traveler visiting a destination for the first time will evaluate the trip based on the image he takes with him the first time he travels there

Perception of Image

• Functional Image: • what is there to do?:

– Beach, hike, sleep, see shows, gamble, etc.• Symbolic Image: • what is is it like?:

– Family, teenagers, young children, singles, old people

– Is the destination “MY KIND OF PLACE?”

Does a Destination WANT TOURISM?

• YES! • Brings economic gain….

– Direct spending: • money the travelers spend on restaurants, hotels,

souvenirs, admission to attractions, more.

– Indirect spending: • the $ the employees have after being paid to spend on

their needs (housing, food, etc.)

• All contribute to the local economy

Negative Economic Costs• Opportunity Costs:

– an economy might have to give up something to attract tourists. The $ they would have gotten from what they give up is the opportunity cost.

– Build a convention center, or improve schools?• Leakage: • the local economy might not have all the goods

needed for the tourists, they will have to buy them from yet another economy. The $ is NOT available for the residents….

Other Negatives…• Lives and cultures may change• Residents might want:

– Better housing– Different clothes, foods, etc.– Demonstration effect– Resentment of the tourists and their lifestyle

• Increase in crime, expenses, housing costs, food costs, discrimination (locals get low level jobs, outsiders get managerial jobs)

• Disruption and Pollution of environment

Other Changes

• Understanding of different cultures• Understanding of historical influences• Preservation of ways of life• Preservation of environment (ECOTOURISM)

• No Matter how We look at it….Tourism Industry is BIG and complicated….drives economies and makes a lot of $