Analyzing and

Managing Tourist

Transport

Subject Areas that have a direct

contribution to the analysis of

tourist transport system

Economics

Geography

Marketing

Management

ECONOMICS

According to Craven (1990) Economics

is concerned with the economy of

economic system ad the problem of

allocating resources is a central theme

of economics, because most resources

are scarce

Resources :

Natural resources ( land )

Labor ( human resources)

Capital (man- made aid to assist in producing goods )

Methods and Machines

Collectively these resources constitute the factors of production which are used to produce commodities

The commodities can be

divided into :

Goods ( tangible products such as an

aircraft )

Services ( intangible items such as in-

flight service )

Microeconomics :

The firm

The consumer

Production and Selling

The demand for goods

The supply of goods

Macroeconomics :

How the national economy operates

Employment and unemployment

Inflation

National production and consumption

The money supply in a country

Demand :

Within economics, the concern with the

allocation of resources to satisfy

individual’s desire to travel means that

transport economist examine the

demand for different modes of travel

and the competition between such

modes of in relation to price, speed

and convenience

What affects people’s travel behavior

Supply :

Supply of a commodity, which is often

seen as a function of its price and the

price of alternative goods

Price is often influenced by the cost of

the factors of production

Supply

From the transport operator’s

perspective, the main objective in supply

terms is to maximize profitability from

the available capacity, which is usually

expressed in terms of the load factor

Transport companies can maximize

passenger revenue by minimizing costs

and pricing their product or service at a

competitive rate.

The supply of tourist transport

can be characterized by :

Major capital requirements for passenger

carriage (cost of the aircraft, passenger trains

and ferries)

Government regulations and restrictions to

monitor the supply which is determined by

state policy

Competitive reaction from other business

involved in tourist transport

A high level of expertise required to operate

and manage tourist transport enterprises

The pricing of Air travel -

The various price strategies are:

Single - pricing , where a uniform price is charged for passengers on the same flight

Multiple – pricing, which involves segmenting the market and offering empty seats at a lower price

Yield management, involving management planning, and computer programming to optimize revenue by selecting the optimum mix of travelers

The pricing of Air travel -

The various price strategies are:

Yield management, enhances revenue

from the seat allocation, by restricting

the availability of lower – priced fares,

airlines are able to safeguard against

revenue dilution in an environment

where many of the costs of airline

operations are relatively fixed for each

departure

The pricing of Air travel -

The various price strategies are:

Leg- Based pricing , where seat

allocation is used to maximize revenue

on each sector of a flight

Origin – destination pricing models ,

where complex linear programming

techniques are used to compare

whether a multi-leg passenger trip will

generate more revenue than a single leg

trip , and to allocate seats accordingly

GEOGRAPHY:

Leisure Time

Leisure

The time available to an individual when work,

sleep and other basic needs have been met.

Recreation

Pursuit engaged upon during leisure time

The recreation activity continuum

Home-

based

recreation

Reading,

gardening,

watching TV,

socializing

etc.

Daily

leisure

Visiting

theatres or

restaurants,

going to the

mall, sports

etc.

Day trips

Visiting

attractions,

picnicking

etc.

Tourism

Temporary

movement to

destinations

outside

normal home

and work

place.

Geographical range

Home Local Regional National International

Work

time

Business

Tourism

Geography and

Tourism

When we study the geography of travel and tourism, three key concepts need to be considered:

1. spatial scale

2. the geographical components of the tourism system

3. spatial interaction between the components of the tourist system

Spatial scale

This idea of scale, keeps in focus the area being dealt with

From the geographical point of view, tourism can be considered from number of scale

- world scale

- regional scale

- local scale

The geographical components

of the tourism system

Tourist generating areas - represent the homes of tourists, where journeys begin and end.

Tourist receiving areas - attract tourists to stay temporarily and will have features and attractions that may not be fund in the generating area

Transit routes – link these two types of areas and are a key element in the system as their effectiveness and characteristics shape the volume and direction of tourist flows.

- Such routes represent the transport component of the tourism industry.

The geographical components

of the tourism system

Spatial interaction between the

components of the tourist system

Tourist flow

An understanding of tourist flow is

critical for managing the environmental

and social impacts of tourism , securing

commercial viability of the tourism

industry and for planning new

developments

Explaining tourist flow

Factors that helped to explain these flows:

1. Distances between countries ( the greater

the distance, the smaller the volume of

flow)

2. International connectivity ( shared business

or cultural ties between countries

3. The general attractiveness of the country

MARKETING:

Kotler and Armstrong (1991), marketing

is a process whereby individuals and

groups obtain the type of products or

goods they value

MARKETING:

These goods are created and

exchanged through a social and

managerial process which requires a

detailed understanding of consumers

and their wants and desires so that

product or service is effectively

delivered to the client or purchaser

Within Marketing

Three Areas exist:

Strategic Planning

Marketing Research

The marketing mix

Strategic Planning:

Formal planning process

The process of developing and maintaining a strategic fit between the organization’s goal and capabilities and its changing marketing opportunities

Organizations

Mission To serve great tasting food, bringing the joy of eating to

everyone.

Vision We are the best tasting QSR..

The most endearing brand that has ever been...

We will lead in product taste at all times...

We will provide FSC excellence

in every encounter...

Happiness in every moment...

By year 2020, with over 4,000 stores

Organizations

Values

Customer Focus

Excellence

Respect for the Individual

Teamwork

Spirit of Family and Fun

Humility to Listen and Learn

Honesty and Integrity

Frugality

Organizations

Globe Telecom is a leading

telecommunications company in the

Philippines. We continue to grow and

engage our customers through our clear

commitment of "Making Great Things

Possible."

Organizations

Service excellence

PAL's excellent service has won the hearts of travelers worldwide. This trademark has distinguished it from the pack and has stood guard in an environment that has grown more competitive by the day.

http://www.ust.edu.ph/index.php

Strategic Planning:

SWOT Analysis

S – Strength

W – Weaknesses

O – Opportunities

T – Threats

Marketing Research :

is an organized process associated with the

gathering, processing, analysis, storage and

dissemination of information to facilitate and

improve decision making

It incorporates various forms and research

undertaken by organizations to understand

their customers, markets and business

efficiency

Marketing Mix :

is the mixture of controllable marketing

variables that the firm uses to pursue

the sought level of sales in the target

market

There are four main market variables :

product formulation, price, promotion

and place

Marketing Mix :

Product formulation – the ability of the

company to adapt to the needs of its

consumers in terms of the services it

provides

Price – the economic concept used to

adjust the supply of a service to meet

the demand, taking account of sales

targets

Marketing Mix :

Promotion – the manner in which the

company seek improve customers knowledge

of the services it sells so that those people

who are made aware may be turned into

actual purchasers

- To achieve promotional aims,

advertising, public relations, sales and

brochure production functions are undertaken

Marketing Mix :

Place – the location at which

prospective customers may be induced

to purchase a service - the point of sale

( Travel Agency )

Airline Marketing :

Is to bring together the supply of air

services, which each airline can largely

control , with the demand, and which

can influence but not control and to do

this in a way which is both profitable and

meets the airline’s corporate objectives

Airline Marketing

Strategies:

Strategic Alliances

Examples:

Oneworld is a global alliance that brings

together ten of the world's biggest and best

airlines, all committed to providing world-

class service and value.

Airline Marketing

Strategies: Strategic Alliances

Examples:

StarAlliance - the airline network was established in 1997 as

the first truly global airline alliance to offer customers

worldwide reach and a smooth travel experience.

Airline Marketing

Strategies: Strategic Alliances

Examples:

Sky Team -

Airline Marketing

Strategies:

Acquisition

Joint Ventures

Franchising

Ancillary Services

The role of marketing in the

management of airline services:

1. Identify markets and market segments

using research methods and existing

data sources and traffic forecasts.

2. Use the market analysis to assess

which products to offer.

The role of marketing in the

management of airline services:

3. Develop a marketing plan to plan and

organize the selling of the products

4. Monitor and review the airline’s ability

to meet service standards , assessed

through sales figures, customers

surveys, analysis of complaints and

long term planning to develop new

service and product features

MANAGEMENT:

Getting things done in organizations

through other people

Is concerned with the ability of

individuals to conduct, control, take

charge of, or manipulate the world to

achieve a desired outcome

Management occurs in the context of

formal environment – ORGANIZATION

Management Process :

Planning - so that goals are set out

and the means of achieving the goals

are recognized

Organizing – whereby the work

functions are broken down into a

series of tasks and linked to some

form of structure

Management Process :

Leading – which the method of

motivating and influencing staff so

that they perform their tasks

effectively

Controlling – which is the method by

which information is gathered about

what has to be done

Airline Management :

The process whereby individual ( and

group of) airlines seek to organize,

direct and harness their resources,

personnel and their business activities

to meet the needs of their organization

and customers in an effective and

efficient manner