Travel and Tourism PDF

1. According to the article on "Catch up" in the wine industry, which two countries led the breakthrough of NW producers? Australia and the USA 2. An advantage of category extension for alcohol is... avoid regulations on advertising 3. The LCBO was created in Ontario in which year? 192...

1. According to the article on "Catch up" in the wine industry, which two countries led the breakthrough of NW producers? Australia and the USA 2. An advantage of category extension for alcohol is... avoid regulations on advertising 3. The LCBO was created in Ontario in which year? 1927/1928 4. Which country is involved in a conflict with the Bacardi company? Cuba 5. Which disease helped to restore the popularity of gin? Malaria 6. In the 1898 referendum in Canada which province voted against prohibition? Quebec 7. The dominance of Old World wine producers has been threatened, in part because… The increasing importance of large distribution 8. Diet coke is an example of... Line extension. 9. Which country experienced the "Gin Craze"? England 10. The French law to restrict advertising of alcohol is called... the Loi Evin LECTURE 7. TRAVEL AND TOURISM INDUSTRIES. Roman Holiday Rome’s power and empire made tourism possible. Two of the preconditions for tourism are: Security to travel without fear and resources to do so.  A roman version of the Grand Tour developed to include southern Italy, Greece, Troy and Egypt to cruise the Nile. Trips to spas, baths, etc Pilgrimages: Christianity, Buddhism and Islam all featured (or feature) a call for pilgrimage. An obligation in many cases. These journeys were also sightseeing opportunities and businesses sprang up to organize and conduct the trips. Other businesses included inns and food and drink provisions. Taking advantage of these pilgrimages. The Grand Tour: Beginning in the 17th Century, especially in England, it became the custom for young gentlemen (20’s and sometimes late teens) to spend 2-3 years touring France, Italy, Greece and other European centers. They saw the sights, especially architecture and art. Only the rich could afford this. If you were an English landowner you had arrangements with your bank. Banks would arrange letters of credit with European banks. Eventually faded away because of the Revolution and the Napoleonic wars which made it much less for young English gentlemen to be around traveling Europe. And when those wars ended the world had changed, industrialism had brought a whole new group of people that wanted to travel, for shorter periods of time. There’s echoes of it, at the end of the 19th Century, wealthy Americans would send their children or accompany their children to live in England for a while to learn culture, etc. Thomas Cook Travel: The company eventually was inherited by Cook’s grandsons in 1899. Remained in family hands until sold in 1928 to the Belgian Company that ran the Orient Express. During World War 2 was taken over by the British Railway companies. After the war they were nationalized, so Cook’s was too. It was privatized in the 1970s. Declared bankruptcy in 2019. Post World War II Travel and Tourism:  New jet plane technology makes travel easier. Air travel was expensive during the deregulation trend (especially North America and Western Europe) of the late 1970s and the advent of discount carriers, especially after 1990. End of the Cold War meant new destinations and new potential travelers. The World Travel and Tourism Council determined that in 2019, prior to the pandemic, Travel & Tourism (including its direct, indirect, and induced impacts) accounted for 10.5% of all jobs (334 million) and 10.4% of global GDP (US$ 10.3 trillion). Meanwhile, international visitor spending amounted to US$ 1.91 trillion in 2019. The World Travel & Tourism Council (WTTC) is projecting a record-breaking year for Travel & Tourism in 2024, with the sector's economic contribution set to reach an all-time high of US$ 15.5 trillion. These numbers are expected to grow. Cruise Ships Titanic to Queen Mary: The idea of passenger cruise ships, where the voyage was not just the means of travel but part of the attraction, began with the Peninsular and Oriental Steam Navigation Company in 1844. They had been sailing from England to Mediterranean destinations delivering mail and people for some time, but in 1844 launched the cruise idea. Advertising sea tours to destinations such as Gibraltar, Malta and Athens, sailing from Southampton. RMS Mauretania and RMS Lusitania (ships): Owned by Cunard Line of England. Launched in 1906. Redefined the way to travel to Europe from North America and back. They were massive.  RMS Mauretania and Lusitania were the largest ships ever built at the time. Carried 50% more passengers than their largest competitors. Designed for speed in response to competing shipping lines. Started the tradition of dressing for dinner and advertised the romance of the voyage. Carried 552 1st class, 460 2nd class, 1,186 3rd class = 2,198 passengers. Lusitania torpedoed on 7 May 1915 by a German U-boat killing nearly 1,200 of the 1,959 people on board. Titanic: Luxury cruises as opposed to simple transportation became increasingly competitive. If you were wealthy you desperately wanted to be in first class. French and English lines built newer machines. Titanic, launched on May 31, 1911, and set sail on its maiden voyage from Southampton on April 10, 1912, with 2,240 passengers and crew on board. On April 15, 1912, after striking an iceberg, Titanic broke apart and sank to the bottom of the ocean, taking with it the lives of more than 1,500 passengers and crew. Business, theater and social leaders were traveling in First Class. Among them were the American millionaire John Jacob Astor IV and his wife Madeleine Force Astor, Isidor Straus from Macy’s and many others including the president of the Grand Trunk Railway. Charles Melville Hayes. 3rd class passengers were accorded for fewer amenities. Stopped at Cherbourg, France and Queenstown, Ireland, then set sail to New York. At 11:40PM on Sunday 14 April the ship struck an iceberg. Titanic had gone down in only 2 hours and 40 minutes. The industry continues: Transocean cruises remain the only method for many years. Early air travel was difficult so the ships remained the choice. The advent of large jet liners in the 1960s changed this and accentuated the decline of transatlantic and transpacific cruises. By the 1980s only Cunard Lines serviced a small clientele of ocean crossers by offering a cruise experience on the Queen Elizabeth II. Cruise lines: The ocean crossing trips have been replaced by the new style of cruise.  Cruise ships are organized much like floating hotels, with a complete hospitality staff in addition to the usual ship's crew. Caribbean, Alaskan and other tours are the focus rather than a journey to a destination. Facilities include night clubs, sports facilities etc. In 1970, about 500,000 people went on cruises; By 2013, that number was higher than 20 million. The Love Boat, a tv series which ran from 1977 to 1986, helped to popularize the idea of taking a vacation at sea on a ship. COVID-19 and Cruise Lines: Cruise ships were particularly affected by the pandemic. People died in the cruises because there were not enough doctors and solutions aboard. Now, the industry is continuously recovering from it. Before the hit TV show helped popularize them, cruises were derided as being for the "newly wed and nearly dead," and were a lot more expensive than they are today. Those not quite rich enough for their own yacht can still splurge on intimate, luxurious trips or high-octane adventures to places like Antarctica. But most cruisers these days are middle-class Americans or Europeans looking to be fed, pampered and entertained on a floating version of home. Many bring their children. The hyper-efficient industry has made that possible by building mega ships that resemble floating theme parks, and even its own islands. In 1980, the first year data is available from industry body Cruise Lines International Association, there were 1.4 million oceangoing cruise passengers. That number had already begun to soar as a direct result of "The Love Boat," the ABC show set aboard the MS Pacific Princess that began its nine-season run in 1977. It was surely one of the most lucrative product placements ever. Next year, the industry expects 36 million passengers. Mass-market operators keep ticket prices low enough to reach full occupancy even during recessions because a substantial part of their cost is the vessels themselves, and their fuel. Once people are on board, more than a third of revenue can come from onboard spending such as drinks, spa treatments, specialty restaurants and gambling. Royal Caribbean's Icon of the Seas launched in January 2024, with a maximum capacity of 7,600 people, not including 2,350 crew members. It is as big as five Titanics. Its incredible size is a selling point in and of itself, but it also highlights the pursuit of savings. Between 2020 and 2022, some 38 ships across the industry were taken out of service, and their average age was six years younger than those retired in the preceding three-year span, according to Cruise Industry News. Icon is powered by relatively clean liquefied natural gas, has a specially coated hull to reduce friction, can hook up to shore power, treats its own waste and can produce nearly all of its water through desalination. Being green pays dividends beyond saving on fuel. With governments and especially cruise destinations aware of the environmental impact of giant vessels and record passenger numbers, there increasingly are incentives to avoid pollution. But Carnival's Burke points out that bigger ships have downsides, such as where they can sail: "At some point you begin to limit your ability to get into certain places." To get around that, and also to save energy and boost revenue, cruise lines have even leased their own private islands a short sail from Florida cruise ports, giving them new names like Castaway Cay and Perfect Day at CocoCay. Often featuring docks that can accommodate megaships, they offer a sanitized version of the tropics where every dollar spent accrues to the cruise line. Hyper-efficiency is nearing its limit, though, and inflation has affected the industry too. Cruise lines have caused some grumbling by charging more for mandatory onboard gratuities. Cruisers are showing up in record numbers anyway, and shareholders are celebrating too. After nearly going under amid Covid-19, all three major operators are laden with debt but have seen their shares rebound by an average of 85% just this year. Commercial Aviation: First paying passenger flight. It was hard to keep it viable as a commercial property, because you could only transport one person at a time. Jan. 1, 1914, the St. Petersburg-Tampa Airboat Line became the world's first scheduled passenger airline service, operating between St. Petersburg and Tampa, Florida. The first flight's pilot was Tony Jannus, the first passenger was Abram C. Pheil a mayor of St. Petersburg who had bought the trip at a charity auction for $400 A service ran for several months, but was limited to one passenger at a time. Air Travel: By the 1930s transpacific flights were expanding although still rare. The Clipper 314 is capable of comfortably flying 74 passengers and 10 crew to distances up to 3,500 miles.  WW2 interrupts the expansion of commercial air travel, but also advances the technology. Military necessity made the technology improve. It was pretty expensive but was an effective way to travel. Boeing 747: The Boeing 747 was conceived while air travel was increasing in the 1960s. Would carry long numbers of passengers over long distances. Goes into service in 1970. It was now possible for airlines around the world to carry passengers at a reasonable fare further than ever before, more than 8,000 miles without refueling. The status of the industry: Precovid and post Between 2004 and 2019 the total number of commercial flights in the world rose from 23.8 million to 38.9 million. This has been reduced by COVID-19 restrictions but projections still suggest levels over 21 million for 2020 and over 30 million for 2021. Statistics indicate air travel continues to get safer, but also indicate the cost to the environment is significant because of pollution. But air travel remains the primary choice of travel for long distances. The first ever passenger flight took off in May 1908 when Wilbur Wright carried Charles Furnas just 2000 feet across the beach at Kitty Hawk, North Carolina. Just one year later, the first airline in the world, the German airship company DELAG, was founded. However, it wasn’t until the 1920s that commercial flights carrying paying passengers started to become commonplace with the introduction of the multi-engine airplane, the Lawson C-2, which was specifically built to carry passengers. During this time, more and more start-up airline carriers were being established, some of which are still in operation today. These include KLM in the Netherlands (1919), Colombia’s Avianca (1919), Qantas in Australia (1920), and Czech Airlines (1923). Aircraft from this period would land frequently to refuel and fly at lower altitudes due to unpressurized cabins. This made traveling by plane noisy, cold, and expensive. Flying times were lengthy, and turbulence was frequent. Passengers regularly experienced air sickness, and many airlines hired nurses to reduce anxiety and tend to those affected. Despite flying being incredibly dangerous and extremely expensive during this period, it was still a fashionable way to travel for the rich. According to the Smithsonian National Air and Space Museum, the number of airline passengers grew from just 6,000 in 1930 to nearly half a million by 1934; the aviation industry was well on its way to becoming hugely important to the global economy. The introduction of the Douglas DC-3 in 1935 also had a big impact on the future of commercial flight. Faster and more reliable, it could carry up to 32 passengers and had a cruising speed of 207 mph with a range of 1500 miles. This made it popular with well-established airlines, including Delta, TWA, American, and United, who soon added the aircraft to their fleets. However, by the end of the decade, the industry was heading towards a new era as Pan Am began operating its fleet of Boeing 307s, which featured the first-ever pressurized cabin. This transformed air travel for passengers, allowing them to enjoy a comfortable experience at an altitude of 20,000 feet. Major airlines were now ramping up their advertising spending and offering travelers smooth journeys to far-flung destinations and business hubs, including Pan Am’s iconic New York-London route. The 1950s and 1960s heralded the age of jet engine aircraft, and with it came an upsurge in commercial flights, airline carriers, and international flying routes. Commercial air travel was booming, and major airlines were fiercely competitive, offering passengers more and more inflight perks, including lavish silver-service meals and fine wines. Pan Am was a front-runner in pioneering and marketing the very best air travel had to offer. It was the first airline to fly worldwide and introduced ground-breaking changes to the industry, such as adding jet aircraft to their fleets and utilizing computerized reservation systems. Offering transatlantic flights in just 3.5 hours, the aircraft was a hit with business travelers and royalty alike. However, tickets were extremely expensive and only a privileged few could afford to travel via Concorde. Seeing a gap in the market for making air travel more accessible to everyday people, British-owned Laker Airways, founded in 1966 by Freddie Laker, was one of the first airlines to start offering a budget alternative by adjusting its inflight offer. Using the budget airline business model that is commonplace today, Laker was able to offer lower fares by reducing inflight services and luxuries, such as free meals. The airline also found innovative ways to reduce fuel consumption and engine wear by introducing the reduced thrust take-off technique and faster climbs to obtain the optimum flying altitude in as little time as possible. Sadly, the airline was a casualty of the 1980s recession and subsequently went bankrupt. However, it paved the way for budget travel and opened a world of possibilities for millions more people to get the chance to travel by air. Today, the world’s largest low-cost carrier is Southwest Airlines in the US. Synonymous with budget travel, the company’s low-cost domestic and short-haul offer has undoubtedly inspired many other well-known brands to tap into the no-frills market, including Ryanair and EasyJet. Larger and more economical aircraft, such as the Boeing 747, had also made cheaper air travel possible. Airlines were now able to carry more passengers than ever before, meaning ticket prices could be sold at a reduced rate. Holidaying abroad was no longer reserved for the rich. First-class cabins, sophisticated onboard bars, and exclusive-use airport lounges meant those who could afford to, could still travel in style. During the 1980s and 1990s, the budget airlines Ryanair and EasyJet launched. Offering airfares for as little as £20, they changed the face of commercial flying and put pressure on traditional carriers to lower ticket prices. The tragic events of 9/11 had a profound effect on air travel. Security at airports was increased significantly and passengers without a ticket at US airports could no longer accompany friends and family through security to the gate. Cockpit security was also heightened. Previously, it had been possible for passengers to visit the flight deck and speak to the pilots. However, after 2001, cockpit doors were locked with only the pilots controlling who could enter. According to the Bureau of Transportation Statistics, it took until 2004 for air passenger numbers to reach pre-9/11 levels and until 2007 to reach a record high. During this period, low-cost carriers were experiencing increased demand as the popularity of booking websites surged, and, by 2009, figures from the tourism research company PhoCusWright reported that half of all travel-related bookings were being made online. Passenger numbers continued to surge throughout the 2010s, and by the end of the decade, the volume of travelers using commercial airlines was at an all-time high. HOSPITALITY: All-inclusive resort hotels are a booming global business that earns billions of dollars per year. For decades, their typical clientele has been families from the United States and Europe seeking convenient vacations on beaches along the Mediterranean or Caribbean. But their appeal now extends to customers, and hospitality providers, across Asia—and with the same basic economic rationale. There are three convergent strands in the history of the modern resort. One is the very idea of seaside living, which goes all the way back to the Romans. So much of this in Europe traces back to the Romans, who had resort towns all along the coasts of what is now modern Italy. And those then really disappeared with the collapse of the Roman Empire. But from the 18th century onward, if not before, Europeans were visiting the seaside, notably in Britain, then also in Germany—Heiligendamm in Mecklenburg was the first German resort on the Baltic. By the 19th century, with railways, you had a lot of seaside resorts that were easily accessible by train from the city. And by the 1930s, you had regular paid holidays, which enabled people to go to the seaside. The other strand is the spa, which also has Roman origins, and we call it “spa” because the Romans had a curative bathing complex in what is now the Belgian town of Spa. But if we’re actually fast-forwarding to the present and asking ourselves when does the modern all-inclusive resort come into existence, it’s again in Britain, the most developed of the European countries in the 1930s, in the legendary Butlin’s holiday camps. And then from the 1950s, Club Med. And it’s really Club Med that, from 1950 onward, founded the modern concept of the all-inclusive, party-focused enclosed resort. The holdup problem, which is fairly familiar from all sorts of settings, commercial and noncommercial, is the problem of your reluctance to enter into a contract when you don’t know whether one party to the contract will subsequently revise the terms of the deal in a very unfavorable way. So basically, the fear of the anxious parent is that you sign up to go to this resort, you’re in a food desert, shops are miles away, and they’ll gouge you when you get there because the restaurants will be too expensive. So in Europe, they in fact resolve this problem by saying, our promise is in British airports that nothing will cost more than it does in the high street, so come and do your shopping in the airport. Whereas you’d have to be a fool to buy anything in an American airport because they resort to this primitive holdup-type thing. If you promise them a fixed price, more people will actually sign up to go. One of the reasons the resorts like it is that the payment is all upfront. So they receive a large lump payment, and then their relationship with their customers is unaffected by any kind of transaction. So it creates goodwill. Once you’re there, you just feel basically they’re extremely generous because the original payment was made beforehand. So, from a cultural and political point of view, they are an extraordinarily colonial model of vacationing. One figure I saw said there were about 860 all-inclusive resorts all over the world and about half of them are in the Caribbean. And so the advocates of the model would say, it’s a tourism-generating business. The critics would say, first of all, why is it that in a situation like the Caribbean, you do this enclosure? Part of it is basically pandering to a bunch of racist or racialized stereotypes about people needing a comfort zone, not wanting to be “distracted” by the particularities of the local region, and just wanting to enjoy the paradise of the beautiful water and needing this enclosed bubble in which to do that. And in economic terms, the consequences of that can be very severe in that for some of the resort systems in the Caribbean, it’s estimated that only about 20% to 30% of the revenue generated by the resort stays locally in the form of wages and local supplies. The obvious solution is actually just to insist on localizing as much as possible to attract local investment and to build supply chains, which actually rely heavily on local economies. So Macau, the great Asian gambling center, if you look at the origin of the 30 million people who visit Macau, 90 percent are from Asia, and 85 percent of those are from Hong Kong and mainland China. Now, that’s 30 million visitors. Vegas gets 40 million visitors a year. So Macau is just 10 million short of Vegas. Mexico’s tourism complex generates 66 million visitors. The Chinese tropical island of Hainan has 99 million visitors a year. Everything’s bigger in China. Chinese visitors are the big drivers of global tourism and global luxury consumption. It’s just a numbers game. And the Chinese middle class is so large. It may once have been a kind of European colonial thing, but, yeah, China does colonialism, too. QUIZ WEEK 7. TRAVEL AND HOSPITALITY. 1. Which American Airline is the world's largest low-cost airline? Correct answer: Southwest Airline 2. Hainan is... Correct answer: A Chinese tropical Island destination 3. Who is generally considered to be the first "travel agent." Correct answer: Thomas Cook 4. In the Foreign Policy article on All Inclusives one participant calls All Inclusives "an extraordinarily kind of colonial, you could say, model of vacationing." Why? Correct answer: Very little of the money generated stays in the area of the resort. 5. All Inclusives solve which problem identified by economists? Correct answer: The "holdup problem" 6. According to Dr. Thomson's video lecture, what are the two preconditions for tourism to exist? Correct Answer: Security to travel and the resources to travel. 7. One of the many ways that the 747 changed air travel was that it was able to travel _____ miles without refueling. Correct answer: 8,000 8. Which plane, introduced in the 1930s changed commercial aviation? Correct answer: The Douglas DC-3 9. Which cruise line took 38 ships out of service during the pandemic shutdown? Correct answer: Carnival 10. Larger ships have many benefits but also problems. One problem is... Correct Answer: Too big to go to some destinations. LECTURE 8. GLOBAL FINANCE. “Money” is defined as any generally accepted medium of exchange which enables a society to trade goods without the need for barter; any objects or tokens regarded as a store of value and used as a medium of exchange. Coins and banknotes collectively as a medium of exchange. Later also more widely: any written, printed or electronic record of ownership of the values represented by coins and notes which is generally accepted as equivalent to or exchangeable for these. Coins: valued for metal content or as representative tokens. Paper money: Issued to represent value. From ancient China to modern societies. Digital currency: Exchanged as information, rather than physical money. All of these work only with a shared consensus of value. KINDS OF MONEY: Commodity money: Gold and silver coins but also things like shells, grain or other items of agreed value. The gold standard which is why major currencies tended to be on before the Great Depression. Token money: Coins or paper that can be exchanged for the face value of gold or silver. The “gold standard” is an example.