IHTI Chapter 9: Tourism Organisations PDF

Chapter 9 : Tourism Organisations After today’s class, you should be able to:  Understand the sectors that forms travel and tourism industry:  Destination Organization  Tour operators, Travel agency  Transportation sectors The sectors that forms travel and tourism industry...

Chapter 9 : Tourism Organisations After today’s class, you should be able to:  Understand the sectors that forms travel and tourism industry:  Destination Organization  Tour operators, Travel agency  Transportation sectors The sectors that forms travel and tourism industry Accommodation Sector Attraction Sector Hotels / Resort Guest houses Theme Parks Museums Farmhouses Apartments Wildlife parks Zoos Vacation villages Homestays Heritage sites Art Galleries Caravan/Camping Villas Gardens Etc Etc Transportation Sector Airlines Cruise lines Railways Bus/Coach operators Car Rental operators Etc Travel Organization Sector Destination Organization Sector Tour Operators National, Regional & Local tourist offices Tour wholesaler/brokers Tourist Associations Retail travel agents Etc  Destination Organization Sectors Most countries today have developed National Tourism Organisation - roles, function and structures vary Example : Malaysia Tourism Organization : 1) Ministry of Tourism, Art & Culture Outline and enforce any tourism related policies, licensing with the broad , objective of improving the country’s tourism industry in all aspects Promote all aspects in relations to the Malaysian culture, arts, and heritage through the emphasis on highlighting the important values within the various practices.  Destination Organization Sectors 2) Malaysia Tourism Promotion Board 4) Tourist Information Center ( TIC) (MTPB) TIC is a state funded, non profit tourism body Promoting Malaysia as a tourist destination that serves only one main purpose- to assist the at a domestic and international level tourists by all means, offering any tourism through various activities related information as per guidance and convenient to the tourist 3) Malaysia Convention & Exhibition Bureau (MyCeb) Promote and position Malaysia internationally as the preferred destination for meetings, incentives, conventions, exhibition, major events, festival etc. 5  Travel Organization Sectors The chain of distribution in the travel business Travel Principals = Producer/suppliers (Airlines, hotels, coach companies, attractions, restaurants..) Tour operators = Wholesalers Travel Agencies = Retail Shops Customers Tour Operators Is a company who purchase the different items that make up an inclusive holiday in bulk, combines them together to produce package holidays and then sells the final products to the public either directly or through travel agencies https://www.cntraveller.com/gallery/best-tour-operators-world 7 A multi-award winning luxury travel company specializing in tailor-made travel and luxury villas started in 2011 by George Morgan-Grenville. “We sell what we know and we say what we think” From Euro 9807 per charter Travel Agencies  Travel agencies provide important sales and information links between tourism service suppliers and the traveling public.  Travel Agents form the retail sector of the distribution chain, buying travel services on request by their clients.  They carry no stock, simple acting as an intermediary between the consumer and the supplier, and their main role is to provide a convenient network of sales outlets for the traveling public.  Few ways to make profit - receiving their remuneration in the form of a commission, incentives, service charges and mark-up the products cost 9  What do Travel Agencies Offer? Entertainment/ Visa Entry Tickets Applications Cruises Air Travel Components Tickets Travel Excursion Insurances Hotel Reservation Transportation Type of Holiday Tour Product/ Packages All Inclusive Escorted Tour Free & Easy ( air ticket + ground arrangement) Self drive packages European campsite holidays Winter holidays Island Escape Cruises / Rail holiday Stopover packages Tailor made packages  Tour Defined by Special Interest Special interest with a focus either activities or destination, with the new form of experiences, involving more to participating. Gastronomy / Cooking /Winery Wellness Skiing/ Diving / Sailing Cycling Tour /Horse ridding Hiking / Trekking Festival/ sport events Antiques / Archaeology / Castle / museum  Transportation Sectors Transportation is an integral part of the tourism industry. Due to the growth of air transport, long distance travel has become much simpler and affordable. Due to the technology advance - transportation also shorten the duration of journey, made the journey faster, more reliable and comfortable. For example high speed train. Easier for people to travel between destinations because of various modes of transportation available, even to remote area. Long journeys can be made in a minimal time - convenient for tourists who have limited time Besides moving people, transportation also becomes attractions or part of tourism products such as cruise, Scenic Rail, Bicycle, cable car, helicopters, hot air balloons, kayak, trishaw, segway and others 13 14 Road Transportation Today, the most popular and widely used mode of road travel is automobile or the car. To promote tourism, the vehicles required are coaches for large tourist groups travelling together on a specified tour itinerary. Road transportation is the most widely used and the most dominant in the world tourism notably due to its flexibility and accessibility. Car rental segment of the tourism industry is in a very advanced stage in foreign country. The client can book a car and self drive to the destination that they want to explore as GPS is widely use. Public buses, taxi plays an important role for independent travelers. Ridesharing apps: applications for mobile devices that allow users to share rides with strangers, undercutting the taxi industry, eg : Indriver, Uber, Grab 15  Airline Industry Air transport plays a dominant role in the inter-regional transport movement of tourists that entails movement over long distances The term open skies refers to policies that allow national airlines to fly to, and above, other countries. These policies lift restrictions where countries have good relationships, freeing up the travel of passengers. Increased international trade and economic activity, which necessitates travel Full service airline A full service airline typically offers passengers in flight entertainment, checked baggage, meals, beverages and comforts such as blankets and pillows in the ticket price. Full service airlines offer passengers the choice of economy, business class or first class travel. The seats generally have more recline than a low cost carrier as well as more leg room. A flag carrier airline is an airline which is subsidized or owned by the country in which they are registered. The airline often seeks preferential rights or privileges by the government for international operations.  Example of Flag Airline Singapore Airline Emirates Airline Garuda Airline Finn Air World’s Best First Class, the Scandinavian Airway World’s Best First Class Seat, the World’s Best First Class Qantas Airline Comfort Amenities and took top position as the Best Germany Airline in Asia. Hong Kong Netherland Qatar World’s Best Business Class, the World’s Best Business Class Seat, the World’s Best Business Class Lounge (the Al Mourjan lounge at Japan Hamad International Airport), the World’s Best Business Class Lounge Dining and the Best Airline in the Middle East.  Low Cost Carriers ( No-frills) LCC is generally offer lower fare with fewer comfort LCC Business model - based on the idea that people would fly a lot more often if it were affordable. World’s Best Long Haul The main LCC mission is to make air travel the most simple, Low-Cost Airline. convenient and inexpensive form of transportation in the world. LCC success strategy is to move the maximum number of passengers at the minimum of cost. Currently, LCC can be found in North America, Europe, Africa and Asia, and new low budget airlines are still being established. World’s Best Low-Cost Airline award, a title it has won each year since 2010  How LCC offers cheap fare High aircraft utilization  Aircraft is kept flying as much as possible, the first flight starts as early in the morning possible and the final flight typically ends at midnight.  A fast turnaround is critical to ensure time spent of the ground is minimal – an airline makes money when the aircraft is flying, not when the aircraft is parked.  LCC turnaround time is about 25 minutes, whereby normal scheduled flight can be 1 hours and above. Turnaround – The process of unloading & loading and aircraft involve in few process as below: Aircraft Turnover for Commercial airline Aircraft Turnover Low cost airline Aircraft Landing Aircraft Landing Loading passengers & Luggage Loading passengers & Luggage Cleaning internal of aircraft – done by other party Cleaning – done by cabin crew (outsourcing to other party) Catering Replenishment – (outsourcing by local airport Catering Replenishment – (prepared both way by own caterer) caterer) Re-fuel Re-Fuel (only for long haul routes) Maintenance & engine checked Maintenance & engine checked (when necessary) Uploading Passengers & baggage Uploading Passengers & baggage Aircraft Take off Aircraft Take Off How LCC offers cheap fare No frill  No free food & beverages, in-flight entertainment. Passengers can purchase food & drinks & in-flight entertainment from the cabin crew.  Ticketless airlines. Less hassle for the customer, who doesn't have to worry about collecting tickets before travelling, and cost-effective for the airlines (paper, printing, distributing).  No refund to no show passengers and do not offer refunds for missed flights.  A single passenger class, no first class, business or economy class, some airline offers hot seat which is the front seat.  How LCC offers cheap fare Standardize Operations  Making the process as simple as possible is the key of a successful LCC.  Single type or limited to few type of aircraft used. Pilots, flight attendants, mechanics and operations personnel are specialized in a single type of aircraft, which means save cost for re-training of staff for maintaining, knowledge and skills in order to operate and maintain different types of aircraft with their own characteristics  Low cost carriers mostly fly to and from secondary airports or low cost carriers terminal : for example, London - Stanstead rather than London - Heathrow. KLIA2 instead of KLIA. These are often referred to as secondary airports.  Parking Fee for secondary airports is cheaper and less congested than from the bigger major airports, turnaround times are a lot shorter How LCC offers cheap fare Simple & Cost Effective Distribution Channel  Distribution channel is how the products reach consumers. Traditional airlines rely on travel agencies and computer reservation system whereby the airlines has to pay commission to travel agencies and booking fee to computer reservation system.  LCC will keep their distribution channel as simple as possible –Internet Sales. This is the most cost effective distribution channel whereby passengers directly book their ticket through internet and pay by credit card.  lCC do not use travel agencies. This means that the airlines do not pay any commission to a travel agent, Also, they do not participate in computer reservation system and thus save costs.  Limited Sales office established , further reduce the operating cost.  Ticket sales can be done via call center. This is a simple and cost effective way to manage. How LCC offers cheap fare Point to point network  Almost all LCC flights are point to point. oEg : Kuala Lumpur to Sydney without stopover  No arrangement have been made with other airline companies on connecting flights (other airlines) , on possibilities of flight transfers or luggage transfer.  How LCC offers cheap fare Extra Revenue Generation of ancillary revenue from a variety of activities, such selling of meals, duty free products, in flight entertainment Passengers paying charges for extras for example counter check in, seat selection for check in luggage Some LCC works with hotels/car rental/ tour operators to offer extra services. Extra revenue for LCC Further reduce cost by using self check in through internet and Kiosk check in (cut down staffs for counter check in) SEA TRANSPORTATION The ship is one of the oldest and most important forms of transportation. The cruise is one of the most successful of all travel products. a leisure vacation experience- to relax, to get away from work, to experience, to learn, to be pampered, and to have fun. Ferry and speed boat transfer passengers & vehicles from mainland to island Rail Transportation  With the introduction of high speed electric trains as compared to the old locomotive steam engines transport is made faster more reliable and comfortable and this contributes positively to the tourism sector.  Intercity train/metro/tram/ subway are serving local community to reduce the traffic stress in the city  Touring companies like Rocky Mountaineer, Glacier Express has successful shifting the focus from transportation to the sightseeing experience. It is promoted as luxury product, and focusing on the unique experiences  In many foreign countries, rail travel offers a leisurely pace and unique views of scenic countryside along routes rarely seen by road or air. Japan Bullet Train New York Subway  Runs from Zermatt to St.Moritz in about 7.5 hrs, making it the slowest express train in the world Scenic journey to the roof of the world includes 291 bridges, 91 tunnels, about 180 miles through rugged alpine landscape. Enroute will pass through : Swiss countryside, glacier in winter and spring, magical carpet of flower in spring, splendid of colour in Autumn, cultural & architecture in different regions. On board RECAP: After today’s class, you should be able to:  Understand the sectors that forms travel and tourism industry:  Destination Organization  Tour operators, Travel agency  Transportation sectors