Transportation & Tourism Review: Travel Systems & Marketing

CHAPTER 4: Transportation Sector prevalent during the 1950s and 1960s. Transportation and Travel Evolution 1.​ Pre-Industrial Travel System Era Selection of Transportation Mode (18th century)...

CHAPTER 4: Transportation Sector prevalent during the 1950s and 1960s. Transportation and Travel Evolution 1.​ Pre-Industrial Travel System Era Selection of Transportation Mode (18th century) Common reasons why people select one -​ It was before the development of transportation mode over another for their railways in the two continents. business and pleasure trip: (Europe & North America) -​ Cost -​ It was the era of the stagecoach and -​ Traveling time the wayside inn. -​ Safety -​ Only a few people had the money -​ Convenience and the reason to travel. -​ Comfort 2.​ Early-Industrial Travel System Era Jagdish Sheth (1760 to 1850) -​ developed a theory identifying -​ broad improvements such as transportation variables and the railways, canals, and steamship value of travelers services were brought -​ found out that travelers choose a -​ Travel increased because more travel made based on how they people who had money traveled. psychologically weigh five factors 3.​ Mature-Railway System Era ( 1850 5 factors according to Sheth: to 1880 ) 1.​ Functional -​ railways expanded their operations 2.​ Aesthetic/Emotional by running hotels and providing 3.​ Social/Organizational other travel-related services. 4.​ Situational -​ Travel agencies and tour companies 5.​ Curiosity were formed. -​ Thomas Cook began his company's TRAVEL MODES: activities in the United Kingdom in -​ TRAVEL BY TRAIN 1840. -​ TRAVEL BY SHIP -​ TRAVEL BY AUTOMOBILE 4.​ Express-Travel System Era ( 1880 -​ TRAVEL BY BUS/ MOTOR COACH to 1920 ) -​ TRAVEL BY AIR -​ express service increased. -​ Trains and other forms of TRAIN transportation stopped only at the -​ They provided a means for the major stations. masses to explore distant locations, enhancing both travel and tourism. 5.​ Automobile-Based Travel System -​ First organized train tour or Era ( 1920 To 1945 ) excursion in Britain by Thomas Cook -​ The automobile was predominant in 1841. over other travel modes from 1920 -​ The train facilitated the growth of to 1945. seaside resorts in Britain. -​ In 1863, George M. Pullman built the 6.​ Modern-Tourism Travel System Pullman coach, a luxury first-class Era ( 1945 to 1974 ) sleeping and dining facility. -​ The introduction of wide-bodied jets -​ AMTRAK = The act created the in 1970 greatly increased air travel. National Railroad Passenger -​ The "mass tourism" philosophy and Corporation, began its operations in marketing approaches were  May 1971 and was intended to be a -​Cruise ships provide hotel-like profit-making corporation. accommodations and various -​ VIA RAIL = Canada established VIA amenities Rail Canada in 1977 for intercity -​ large vessels/ultra-yachts which travel. can accommodate 180 or more -​ Four evident factors: cost/price, passengers comfort, safety, and the ability to see -​ small vessels/mini-cruises which the area where the train is passing. carry less than 100 passengers. -​ downtown-to-downtown routing -​ Ferry boats are important for of trains saves the time of the short-distance travel, often utilized in passengers. coastal and island areas. -​ The Euro City network offers AUTOMOBILE extensive rail services across 10 -​ invented by Carl Benz in the countries. 1880s. -​ Japan's shinkansen (bullet trains) -​ Henry Ford introduced mass began operation in 1964, providing production with the Model T in 1908. rapid travel -​ RVs & Car Rentals: RV camping -​ across distances. became popular, and car rental companies expanded, especially at TRES GRANDE VITESSE airports. -​ Very High Speeds -​ France has its own supertrain, the BUS/MOTOR COACH Tres Grande Vitesse which travels at -​ an affordable and flexible option. a speed of 175 miles per hour -​ Greyhound became the largest U.S. between Paris and Lyons and bus company in 1928. Marseilles. AIR SHIP -​ Faster, cheaper flights fueled -​ primarily serve as ferries and cruise tourism and business travel. vessels. -​ Boeing 747: Revolutionized -​ The steamship era began in 1840. long-haul travel. -​ Decline in regular passenger service -​ Charter Flights: Made air travel due to the rise of jets in the late 20th more accessible. century. -​ Water transport has two major roles CHAPTER 9: THE MICE INDUSTRY in travel and tourism ferrying and (MEANING & IMPORTANCE) cruising. -​ Many passenger ships were Meetings, Incentives, Conventions, and converted into cruise ships. Exhibitions (MICE) Industry -​ Others that had historical value were -​ a hospitality and tourism sector that converted into tourist attractions. involves planning, organizing, and executing large-scale events. CRUISE SHIP -​ MICE activities usually occur outside -​ A cruise ship is both a floating hotel the peak season of leisure travel. and resort because the guests are -​ Asia's first international convention housed, fed, and entertained. center was Phil. International -​ Cruises are categorized by trip Convention Center (1976). duration: 1. Short (one week or less) MEETINGS 2. Intermediate (one to four weeks) -​ designed to bring people together in 3. Long (up to three months) order to exchange information. -​ usually organized by corporations, ​ Panel = Consists of two or associations, or social, military, more speakers stating their educational, viewpoints. -​ religious, and fraternal groups (SMERF). ​ Lecture = an expert speaker -​ THREE TYPES OF MEETING: addresses an audience. ​ Theater Style ​ Classroom Style INCENTIVES ​ Boardroom Style -​ rewards for achievement used by corporations to motivate -​ FORMS OF MEETING: employees to higher-sales efforts. ​ Symposium = subject is -​ It may be in the form of goods or discussed by experts and a trips. consensus of the group is gathered. CONVENTIONS -​ usually larger meetings which ​ Forum = assembly for a include some form of exposition or discussion of the group’s trade shows. common concerns featuring a panel of experts who take EXHIBITIONS / EXPOSITIONS opposite sides. -​ are events designed to bring together suppliers of products and ​ Seminar = gathering of services. professionals who work together under the guidance KEY PLAYERS IN THE MICE INDUSTRY of a discussion leader. Meeting Planners ​ Workshop = small group led -​ May be independent contractors by a trainer concentrating who offer their services to on skill enhancement. associations and corporations as the need arises or they may be ​ Clinic = Involves small full-time employees of corporations groups who interact with or associations. each other individually. Conventions and Visitors Bureau (CVB) ​ Colloquium = An informal -​ Non-profit organization that discussion on represents an urban area that tries group-selected topics. to solicit business to pleasure-seeking visitors. ​ Conference = formal -​ Convention Centers: large facilities meeting of professionals where meetings and expositions are for exchange of opinions and held. info. Events Management ​ Convention = large -​ process of planning, organizing, and meeting of people executing events. assembled for a common -​ Specialized Services: Companies purpose. offering specialized services -​ Professional Associations: CIC, IACPCO, PCMA & MPI, EMILG, ICCA, IFCT, IACVB, FIM, ASAE  -​ consists of all those activities Convention and Special Events necessary to bring a product or Management service from the manufacturer to the -​ Destination Management end-user. Companies (DMCs): offer services primarily for inbound customers. IN TOURISM: -​ Independent Meeting -​ Marketing is the systematic Management Companies (IMMCs): process by which an organization provide services to outbound tries to maximize tourist demand groups. satisfaction through research, forecasting, and the selection of -​ Travel Management Companies tourism products and services to (TMCs): organize DMCs as part of meet that demand. their larger travel services product offerings. -​ It is a management philosophy which, in the light of tourist demand, -​ Major Event Producers (MEPs): makes it possible through research, high-tech, high-visibility, and have forecasting, and selection to place components that are dangerous tourism products on the market in without proper cautions. line with the organization's purpose for the greatest benefit. Convention and Special Events UNIQUENESS OF TOURISM MARKETING Management ​ TOURISM SERVICE - intangible -​ Special Events Market: encourage experience is being sold. networking among attendees, build camaraderie within the group, and ​ SERVICE - service provided is provide memories that last for years. usually composed of several -​ Types of Events in the Special components (transportation, Events Market: accommodation, food and beverage, ​ Corporate Events attractions) ​ Meetings, Conventions, Expositions ​ TRAVEL INTERMEDIARIES - ​ Public Events necessary to bridge the gap ​ Retail Events between the producer and the ​ Social / Private Events tourist. EMERGING TRENDS: ​ TOURISM DEMAND - highly elastic, -​ The internet provides an seasonal in character, and subject to accessible format for virtual changes in taste and fashion. meetings and exhibitions, video conferencing, and online education. MARKET ORIENTATION -​ necessary to develop a philosophy Two of the leading factors are: or orientation to guide one's 1.​ Changes in Communication marketing efforts. Systems 2.​ Changing Character of Nations ​ PRODUCT ORIENTATION - emphasizes the products or services CHAPTER 10: TOURISM MARKETING that are available. MARKETING  ​ CUSTOMER ORIENTATION - ​ DECLINE - advertising expenses places the tourist's needs and wants are lower in this stage, and there are foremost in the mind of the marketer. few competitors. ​ SOCIETAL-MARKETING MARKETING PLANNING: APPROACH (SOCIETAL 1.​ Collection of Data - from secondary ORIENTATION) - focuses on the sources and from primary sources. satisfaction of tourist needs and wants while respecting the long-term 2.​ Analysis of Data - Data is usually interests of the community. organized and interpreted. MARKET SEGMENTATION 3.​ Identification of Alternative -​ the grouping of people with similar Strategies for Reaching the needs and wants to serve the Desired Goal market better. 4.​ Cost-Benefit Analysis - a way to 4 CRITERIA OF MARKET decide if a project or action is worth SEGMENTATION pursuing by comparing its potential 1.​ SOCIOECONOMIC/DEMOGRAPHI benefits to its costs. C - collecting data 2.​ PRODUCT-RELATED - Information 5.​ Selecting Alternatives and Plan is gained directly related to the Formation - it is then decided which particular product in question. one should be carried out by the 3.​ PSYCHOGRAPHIC - Useful in other organizations. describing segments. 4.​ GEOGRAPHIC - necessary to select 6.​ Control Procedures - the methods which segments the destination that analyze the progress made in would like to attract and serve. achieving the project's goals. PRODUCT LIFE CYCLE 7.​ Plan Implementation - Putting into -​ additional guide on what strategies effect the plan of action and should be used in choosing, supervising it. attracting, and serving target markets. SELECTING A MARKETING STRATEGY: -​ It suggests that a product, service, -​ Identifying the market segment; or destination moves through distinct -​ Determining the preferences of the stages. market segment; -​ Determining what influences the ​ INTRODUCTION - requires high segment most promotional expenses and visibility. -​ Realizing the importance of two high incidence of failures. clients -​ Determining the marketing mix that ​ GROWTH - product or service is will influence the segment identified accepted by consumers. -​ Establishing a price policy that will ​ MATURITY - mature product is maximize profits by balancing the well-established in the marketplace. number of tourists with the capacity of the attraction. ​ SATURATION - sales volume reaches its peak. MARKETING MIX -​ the combination of elements - product, price, promotion, and  distribution (place) that interact accomplish and the plan of action to and complement each other to attain attain these goals. the objectives of the market plan. GOALS CHAPTER 11: TOURISM PROMOTION -​ important in developing promotional strategies. TOURISM PROMOTION -​ Goals must be SMART: specific, -​ means stimulating sales through the quantifiable, measurable, realistically dissemination of information. attainable, and time-bound. -​ trying to encourage actual and (SPECIFIC, MEASURABLE, potential customers to travel. ATTAINABLE, RELEVANT, -​ According to Wahab (1997), the TIME-BOUND) objectives of promotion are: -​ should be quantitative so that they 1.​ To make the tourist product can be measured to determine if the widely known; outcome is achieved. 2.​ To make it very attractive in -​ should have a specific time period in order to encourage many which they are to be completed. people to try it, and -​ should be written clearly and 3.​ To make the message concisely and be as specific as attractive without being possible. dishonest. COMMON THEME PROMOTION & COMMUNICATION -​ necessary in establishing a market -​ Good promotion is good target. communication. -​ It is mandatory that a promotion plan -​ The communication system is made recognizes both characteristics of up of the sender, receiver, and marketing. message. -​ Behavior modification is the end MARKET TARGETS goal of promotion. -​ Segmentation provides the necessary guidelines for isolating THREE TYPES OF PROMOTION: target markets. It identifies people 1.​ Information promotion - more according to their: important during the early stages of ​ socioeconomic status the product life cycle. ​ social influences 2.​ Persuasive promotion - used in its ​ personality features early stages of growth, so its owners ​ attitudes, values put very much promotional efforts. ​ Motivations 3.​ Reminder promotion - important ​ expectations upon reaching a mature stage. THE MESSAGE RELATIONSHIP OF PROMOTION TO -​ The message which is chosen for MARKETING the advertisement follows the goals -​ Marketing is the total process, and objectives of the promotion plan. promotion is one of the major -​ should be understandable, elements in the marketing mix. distinctive, and believable. -​ Its purpose is to create an PROMOTION PLANNING awareness of the attraction. -​ determines the objectives or goals the organization should strive to PROMOTION MIX  -​ the tool that conveys the message to ​ Yellow Pages - gives information to the customers. those requiring service. ​ Outdoor Advertising - uses visible MAJOR TYPES OF PROMOTION MIX spaces like buses, taxis, benches, 1.​ Advertising - Any form of paid-for, and billboards non-personal presentation and ​ Point of Sale - uses displays, racks, promotion of ideas, products, or and counters services by a specific sponsor using ​ Websites - powerful communication some form of mass media. tools that allow businesses to connect directly with customers. 2.​ Personal Selling - An oral presentation to one or more PUBLIC RELATION prospective customers on a -​ presentation of ideas, goods, or face-to-face basis; services about an organization using mass media. 3.​ Sales Promotion - stimulate a -​ it is not paid. purchase; directed toward the -​ designed to create a favorable consumer or toward intermediaries. image of the product, service, or They do this by offering free trips, business unit. tickets to events, or special tours to promote their services. MAJOR FORM OF PUBLIC RELATIONS ​ Travel shows - -​ News Release agencies and tour -​ Radio operators gather -​ Talk Shows travelers to showcase -​ Print News special tours, often -​ Souvenirs (other forms) with food, displays, -​ Memento (other forms) = object kept brochures, and films as a reminder or souvenir of a about destinations. person or event. FORMS OF ADVERTISING: PRINCIPAL COST ​ News Paper -​ the cost per message, the cost per ​ Direct Mail - promotional materials reader,and the cost of repeated are sent to potential customers from messages. mailing lists. ​ Brochure - Provides detailed MAJOR ISSUE OF PROMOTION information -​ accuracy and reliability of ​ Leaflets - usually single sheets information on one hand and false which provide minimum information. and misleading advertising on the ​ Travel Catalogs - Detailed travel other. programs -​ Promotion techniques use words ​ Sales Letter - more flexible. that evoke emotion and create ​ Television - an audio-visual awareness of a product or service. advertising medium used by large -​ The travel agency creates a high organizations.. expectation of an attraction that it ​ Magazines - kept longer than oversells it. newspapers, and are used in waiting -​ False, deceptive, and misleading rooms. advertisement. ​ Radio - a flexible and cost-efficient advertising medium. CHAPTER 12: TOURISM DISTRIBUTION CHANNEL ​ Retail Travel Agents - sell travel services directly to the TOURISM DISTRIBUTION CHANNEL consumer. -​ connects travel service suppliers and consumers. 2.​ TRAVEL OPERATORS - provide -​ a system of distribution networks services as specified in an that makes tourism products advertised tour package, ranging available. from basic airfare, transfers, hotels, meals, sightseeing, and entertainment. TWOFOLD PURPOSE ​ Tour packages - developed -​ Provides necessary travel for the general public or information to potential travelers. organized according to the -​ Facilitates reservations for tourism specifications of a wholesale products. travel agent. ​ Ground operators - provide TYPES OF DISTRIBUTION services at the destination. 1.​ Direct Distribution: Sells directly to and special the consumer. ​ Special Arrangements = 2.​ Indirect Distribution: Sales occur land arrangements. through intermediaries. ​ Inbound agents/Receiving Agents - specialize in services for incoming visitors. CHARACTERISTICS OF TOURISM ​ FIT (Foreign Independent PRODUCTS & DISTRIBUTION Travelers) -​ Tourism products cannot be stored ​ GIT (Group InclusiveTour) or held in inventory. -​ Sales must occur daily for each 3.​ SPECIALTY available slot. CHANNELS/SPECIALTY -​ Unlike traditional industries, tourism INTERMEDIARIES - the power to relies on intermediaries. influence how, where, and when the -​ Intermediaries help package travel product will be distributed. It complementary travel products for a includes: complete experience. ​ incentive travel firms - company may either sell its INTERMEDIARIES professional services for a -​ Also known as Middlemen. buyer or act as an -​ individuals or businesses that act as intermediary for both buyer a link between two parties in a and suppliers. Incentive transaction. travel requires a greater knowledge of destinations 3 TYPES OF TRAVEL INTERMEDIARIES and services. 1.​ TRAVEL AGENTS - arranges travel services from suppliers. ​ Wholesale Travel Agents - ​ meeting and convention organize tour packages planners - specialize in which are sold to the public planning and organizing through a network or retail meetings mainly for agents. corporate clients and  professional associations. -​ No part of the channel exercises Destination planners are control over the system. independent professionals -​ Found in North America and United who help meeting and Kingdom convention planners. 2.​ VERTICALLY-INTEGRATED ​ corporate travel firms - CHANNELS specialize in handling -​ Function of production, retail corporate travel accounts. distribution are owned by a single company -​ Controlled by retail travel agents and ​ motor coach broker - usually found in UK, West Germany organize motor coach tours and North America to full-time professionals. 3.​ VERTICALLY-COORDINATED ​ hotel representatives CHANNELS ​ interline representatives -​ Tour operators control over the ​ association executives channel comes from actual or ​ travel consultants financial commitments with retail agents. 3 DISTRIBUTION CHANNELS: -​ Franchising is an example of this 1.​ PRODUCT system. SUPPLIER-CONSUMER CHANNEL -​ direct distribution without going 3 DISTRIBUTION STRATEGIES through intermediaries. 1.​ INTENSIVE DISTRIBUTION -​ involves making a company's 2.​ PRODUCT SUPPLIER-TRAVEL products available to customers in AGENT-CONSUMER CHANNEL as many places as possible. -​ the most popular form of buying services and products in the tourism 2.​ EXCLUSIVE DISTRIBUTION industry. -​ It limits the channels and outlets for -​ through an intermediary in the form the products. of a travel agent. 3.​ SELECTIVE DISTRIBUTION -​ A strategy which is between 3.​ PRODUCT SUPPLIER-TOUR intensive and exclusive distribution. OPERATOR-CONSUMER CHANNEL -​ The tour operator strives to create CHAPTER 13: TOURISM PLANNING demand. -​ Demand can be produced by tour PLANNING operators who buy blocks of a -​ a dynamic process of determining service or product and sell the goals, systematically selecting package at a reduced price. alternative courses of actions to achieve those goals, implementing 3 TYPES OF DISTRIBUTION CHANNELS the chosen alternatives, and 1.​ CONSENSUS CHANNELS evaluating the choice to determine if it is successful.  -​ ongoing process that must keep up TOURISM PLANNING IN DEVELOPING with the changing character of the COUNTRIES world of the destination area. -​ important in bringing the much-needed foreign currency. TOURISM PLANNING -​ increased employment opportunities and the development of -​ essential to prevent the stagnation infrastructure. or decline of destinations due to poor or no planning. Roles and Responsibilities for Tourism Planning DESTINATION LIFE CYCLE CONCEPT -​ communist countries = all planning -​ Defined by Plog (1973) is done by the national government. -​ destination areas tend to rise and fall -​ democratic countries = the in popularity according to the whims government and the private sector of those in the predominant. play a valid role in tourism planning. -​ Plog categorizes travelers into three main psychographic groups: ​ Allocentrics – These are NATIONAL TOURISM POLICY adventurous travelers. They -​ This policy represents the basic are the first to visit new and foundation from which more specific exotic locations. goals, strategies, objectives, and plans are developed. ​ Midcentrics – form the majority of the travel market. BARRIERS TO PLANNING This stage marks the peak of -​ Many people are against planning in tourism and mass market principle, particularly with the appeal. free-enterprise system. -​ It is expensive. ​ Psychocentrics – more -​ The tourism industry is complex and cautious and prefer familiar diverse. places. This stage signifies -​ Tourism is characterized by few the decline of the destination. large businesses and various smaller enterprises. Consequences of Lack of Tourism Flaming or Poor Tourism Planning A.​ PHYSICAL IMPACTS B.​ HUMAN IMPACTS TOURISM PLANNING PROCESS C.​ MARKETING IMPACTS 1.​ Background analysis phase D.​ ORGANIZATIONAL IMPACTS -​ establishing a national E.​ OTHER IMPACTS tourism plan, -​ Tourism policy goals are TOURISM PLANNING IN DEVELOPED usually classified into four, COUNTRIES namely: economic, -​ less difficult consumer/social, -​ important and should provide a resource/environmental, quality environment for both tourists and government and residents. operations 2.​ Detailed research and analysis -​ Presented in 2 parts: (1) the phase summary report containing the plan -​ A valid tourism plan cannot itself (2) a more detailed technical be formulated without report containing all the research, research. findings, and conclusions. -​ Research should be concentrated in four district CHAPTER 14: TOURISM DEVELOPMENT areas namely: resources, markets, activities, and competition. TOURISM DEVELOPMENT -​ provides overall guidelines for 3.​ Synthesis phase development, outlines broad -​ where major conclusions development concepts, and regarding the previous work identifies individual development are formulated. opportunities for further analysis -​ FIRST STEP: preparation of through feasibility studies and position statements on each cost-benefit analysis. of the five subjects. indicates "where we are now" The Roles of the Government and Private -​ SECOND STEP: "where we Sector in Tourism Development would like to be" or the ​ PRIVATE SECTOR - provides desired future situation. tourism facilities and services. They -​ Tourism plans provide the contribute capital for tourism projects "bridge" between the and also supply technical skills. present situation in a ​ NON-PROFIT ORGANIZATION - destination area. typically operate attractions like museums, galleries, and community 4.​ Goal-setting, strategy selection, halls. and objective-setting phase -​ to define the planning goals, ​ GOVERNMENT - act as a catalyst strategies, and objectives. and complement the efforts of the -​ They must be private sector, including the nonprofit complementary to policy organizations. goals and objectives. -​ This can be classified as an economy-oriented approach TOURISM DEVELOPMENT PROJECTS to tourism. can be initiated through tourism planning or -​ lifespan of usually five by the private sector. years. Tourism development projects have 5.​ Plan development phase different profit- generating capabilities: -​ includes the actions needed 1.​ Profit-generating projects: Hotels, to achieve the objectives, restaurants, and commercial implement the strategy, and attractions. Subjected to cost-benefit satisfy the planning goals. analysis to determine their financial feasibility. -​ Once the tourism plan has been laid out in detail, it is then written in 2.​ Non-profit-generating projects: formal reports. Travel information centers,  infrastructure facilities (roads, 6.​ Developer and Operator airports), and public restrooms. Capabilities - The developer and These are vital for the overall the operator of the project must be tourism experience and destination capable of developing and operating appeal. the business successfully; Tourism development encompasses a 7.​ Compliance with Policies, Plans, wide range of elements: and Programs - complies with the 1.​ Construction projects: Involve tourism policies, plans, and building superstructures like hotels, programs of the destination; resorts, and restaurants. 8.​ Equity Contributions - 2.​ Programming and events: Require profit-generating and the investors human resources and equipment, have enough equity to include in the such as guided tours, festivals, and venture; and cultural events. 9.​ Feasibility - profit-generating and it 9 criteria which will assist a government is economically feasible. agency in identifying desirable projects are the following: Steps in the Tourism Project Evaluation 1.​ Economic Contributions - creates and Analysis System a significant level of income and 1.​ Pre-feasibility Study employment benefits; -​ determines the justification of a more detailed economic 2.​ Environmental Impact - developed feasibility study of a project in compliance with existing and the subjects which the legislation and regulations governing detailed study should tackle. the conservation and protection of the environment; 2.​ Site Analysis -​ A large proportion of 3.​ Social/Cultural Impact - does not tourism-related projects jeopardize the social well- being of require physical site location. the citizens; -​ Tourism project site criteria are divided into three categories. These are: 4.​ Competitive Impact - complements ​ Market-Related Site rather than competes with the Criteria = Proximity existing tourism business without of site to potential seriously jeopardizing the financial market. Proximity and viability of any individual enterprise; ease of accessibility. ​ Criteria Related to 5.​ Tourism Impact - adds to the the Physical destination's tourism potential by Characteristics of creating an attraction, by improving Sites = Aesthetics of the area's capacity to receive and adjoining lands and cater to visitors, or by being land uses. beneficial to the tourism industry; ​ Other Criteria  3.​ Market Analysis coefficient, -​ a crucial part of an economic Mathematical models feasibility study. ​ Guesstimate - -​ often the most expensive and Individual or group time-consuming process. estimates (Delphi, -​ TYPES OF MARKET Committee). RESEARCH: ​ Primary Research = Involves surveys and data collection. -​ FORECASTING Essential for detailed TIMEFRAMES economic feasibility ​ Short-term - 1 day – studies. 2 years ​ Medium-term - 2 – 5 ​ ​ ​ METHODS: years ​ ​ ​ - Questionnaire ​ Long-term - 5 – 15 Method years ​ ​ ​ - Focus-Group ​ Futurism - Over 15 - Delphi Method years ​ Secondary 4.​ Economic Feasibility Analysis Research = Analysis -​ determines the capability of a of published sources. project in producing Used in pre-feasibility satisfactory financial return studies. for its investors. -​ MARKET ANALYSIS 5.​ Cost-Benefit Analysis PROCESS: -​ They help these agencies ​ Implementation of measure and weigh all the Primary Research costs and benefits of ​ Review of Secondary alternative projects. Research 6.​ Role of Government Financial -​ FORECASTING Incentives in Tourism TECHNIQUES: Development ​ Extrapolation - -​ TWO CATEGORIES OF Linear, Exponential, GOVERNMENT FINANCIAL and Cyclical Trends INCENTIVES FOR ​ Covariation & TOURISM PROJECT: Correlation - ​ Fiscal Incentives - Relationships special allowances for between variables. income tax and other ​ Summation & Tests tax purposes. - Linear, Exponential, 1.​ Tax holidays and Cyclical Trends - defers the ​ Calculating Methods payment of - Sales potential, Unit income taxes sales, Elasticity or other taxes for a  predetermined project's time period. interest costs during its operating life; 2.​ Remission of tariffs - relaxes or 4.​ Forgivable removes loans - loans import duties funds to the on goods and project and services then "forgives" required by all or part of the project. these over an agreed time period; 3.​ Tax reductions - lowers the 5.​ Loan normal tax guarantees - rates that guarantees a would have loan or loans been paid by given to a the project. project by a private financial ​ Direct and Indirect institution. incentives - include 6.​ Working several programs capital loans aimed at easing the - loans funds financial requirements to meet the of tourism projects. working 1.​ Non-refunda capital needs ble grants - of a project. Reduce the capital budget of a project. 7.​ Equity participation - buys some 2.​ Low-interest of the loans - available Reduce the shares in the amount of project and interest that therefore the project becomes an must pay equity during its investor. operating life. 8.​ Training 3.​ Interest grants - rebates - provides a rebates a non-refundabl portion of the e grant to the  project for staff training EMPLOYMENT OPPORTUNITIES IN purposes. TOURISM & HOSPITALITY A.​ Airlines 9.​ Infrastructure ​ FLIGHT ATTENDANT assistance - ​ TICKET AGENTS, assumes the RESERVATION AGENTS, costs of some CLERKS or all of the ​ AIRLINE FOOD SERVICE infrastructure ​ FLIGHT DISPATCHER required for ​ OPERATIONS AGENTS, the project. STATION RAMP AGENTS ​ SALES MANAGER/DISTRICT 10.​Leasebacks - SALES MANAGER purchases ​ AIRLINES LOUNGE lands, RECEPTIONIST buildings, or ​ FLIGHT ATTENDANT equipment SUPERVISOR and then ​ RAMP FLIGHT ATTENDANT leases them to ​ CREW SCHEDULER the project. ​ FLIGHT-CREW-TIME CLERK 11.​Land ​ FLIGHT RESERVATIONS donations - MANAGER donates land ​ GATE AGENT free of charge ​ GATE SERVICES to the project. SUPERVISOR ​ GROUND HOST/HOSTESS 7. Private Sector Financing for ​ PASSENGER SERVICE Tourism Development REPRESENTATIVE ​ RESERVATIONS AGENT -​ generally supplies the majority of the ​ SENIOR RESERVATIONS financing to tourism projects. AGENT -​ ranges from individual citizens to ​ TICKETING CLERK major institutional lenders. ​ AIRCRAFT LOG CLERK ​ AIRPORT ATTENDANT 8. Detailed Design and Construction ​ FLIGHT INFORMATION -​ Preparation of the preliminary EXPEDITER architectural concepts ​ AIRPORT MANAGER -​ Preparation of the preliminary ​ STATION MANAGER architectural design ​ CHIEF AIRPORT GUIDE -​ Preparation of the final architectural ​ TRAFFIC AGENT design -​ Construction B.​ Tours ​ TRAVEL AGENT CHAPTER 15: EMPLOYMENT ​ TRAVEL INFORMATION OPPORTUNITIES AND QUALIFICATIONS CENTER SUPERVISOR IN THE TOURISM AND HOSPITALITY ​ TOUR OPERATOR  ​ TOURIST INFORMATION ASSISTANT ​ TOUR GUIDE C.​ Hotels & Motels ​ MANAGER OF A HOTEL OR MOTEL ​ LODGING FACILITIES MANAGER ​ HOTEL CLERK ​ SALES REPRESENTATIVE D.​ Cruise Lines ​ CRUISE LINE DIRECTOR ​ DOCUMENTATION SUPERVISOR ​ CHIEF STEWARD/STEWARDESS ​ SOCIAL DIRECTOR ​ BOOKING SUPERVISOR E.​ Motor Coaches ​ BUS DISPATCHER ​ BUS ATTENDANT ​ DISPATCHER CLERK F.​ Car Rental Companies ​ SALES RENTAL AGENT ​ RESERVATION AGENT ​ CAR RENTAL SALES REPRESENTATIVE ​ AUTOMOBILE RENTAL CLERK G.​ Gaming Entertainment Industry ​ HOTEL OPERATIONS ​ FOOD AND BEVERAGE ​ CASINO OPERATIONS ​ RETAIL OPERATIONS ​ ENTERTAINMENT OPERATIONS