THC 1 Preliminary Reviewer - Macro Perspective of Tourism and Hospitality PDF

THC 1 PRELIM REVIEWER – MACRO PERSPECTIVE OF TOURISM AND HOSPITALITY Tourism came from the Hebrew word “torah” which means studying, learning, and searching. - Spending time away from home Hospitality came from the Latin word “hospitare” which means to receive a guest. - Welcomed...

THC 1 PRELIM REVIEWER – MACRO PERSPECTIVE OF TOURISM AND HOSPITALITY Tourism came from the Hebrew word “torah” which means studying, learning, and searching. - Spending time away from home Hospitality came from the Latin word “hospitare” which means to receive a guest. - Welcomed by a host where needs are provided. These two promote each other and cannot be separated. Evidences – artifacts HISTORY OF TOURISM (what happened or what were the things they contributed) Empire era - Use of lodging - Hospitality services started in the Egyptian Kingdoms Egyptian Kingdoms. First known civilization to have consolidated governmental functions. Greek Empire - Money of some Greek City states became accepted as common currency of exchange. - Leisure activities were developed; shopping, eating, drinking, gaming, watching spectator sports and watching theatrical performances. - Most notable group of travelers are the Greeks because of their numbers. Roman Empire. - Inns were also built - Horse activities were also offered. Middle Ages - Travel disappeared because of the feudal system. - Feudal system. Higher ranks protect lower rank people in exchange of loyalty and service. - Crusades were also executed which all 9 of them failed. - Crusades. Religious war between the Christians and the Muslims in the reason of retaking the Holy Land. Marco Polo - Italian Merchant - Traveled to places well beyond the territories visited by the crusaders - Helped in the rebirth of travel and tourism - Traveled from Europe to Asia for 24 years Cyriacus of Ancona - First recorded tourist - Attributed in the idea of traveling for the sake of learning and experience - Traveled thru mediterranean sea to learn and experience Greek and Roman History - Lead to the GRAND TOUR ERA Grand Tour Era - Luxurious travels - Upper class European young men and higher rank people travel - Travels took in France, Germany, Switzerland, and Italy Industrial Revolution. - Led to more efficient forms of transportation. Mobility Era - Increased travelers - People were no longer tied to daily tasks - Developed roads and modes of transportation Thomas Cook. Father of Travel Agency. - Introduced the tour package - He organized his first tour that consists of 570 people that attended a temperance rally in Loughborough, England. - It costed 12 pence. It included picnic lunch, brass band, and a train. Henry Ford. - Mass production Model T. Orville and Wilbur Wright. - Inventors of Airplane. - First successful Flight Test in Kitty Hawk, North Carolina. Modern Era - George Westinghouse proposed the annual paid vacation, believes that this could increase an employee’s productivity. - Demand in tourism became higher - Large number of vehicles are now produced - Motel. Used for a short time. Used by motorcycle riders. - Credit card was created in the form of Diner’s Clubcard. - Jet travels were introduced. 2 GROUP OF TRAVELERS Organized mass tourists. Buys packaged tour and follows the itinerary prepared by tour operators. Individual mass tourists. Independently travels but still uses tourism services.  CHARACTERISTICS OF TRAVEL AND TOURISM Tourism products are mainly service products which have several characteristics. CHARACTERISTICS OF TOURISM Intangible. - Cannot be touched or seen. - Cannot be handled or grasped before purchased. - Cannot transfer ownership Psychological. - Acquires experience - Social factor that influences the behavior of the consumer - Expectations are set from reviews from other people Highly Perishable. - Means cannot store the product for a long time. - If remained unused: the opportunity vanishes - The opportunity of the revenue is already lost Composite Product. - The tourist product covers the complete experience. - Ex: Airline supplies seats, hotel provides rooms and restaurants, travel agents do the bookings for the itinerary. - **Composite means made up of different things or parts. ** Unstable Demand. - Tourism demand is affected by seasonal, economic political and others such factors. - Unpredictable demand - Forecasting - Very challenging to forecast. Services should be ready to cater the demand and should be innovative to attract customers. Fixed supply in the short run. - Cannot be brought to the consumer like a manufactured product; the consumer must go to the product. Absence of Ownership. - Service can be bought for consumption but ownership remain with the provider of the service. - For consumption and experience only but not for ownership Heterogenous. - Tourism products tend to vary in standard and quality over time - Service is not always the same - Every day is a different scenario - Ex: Accommodation, could vary in price, quality, and offering. Each tourist's experience is influenced by personal preferences, expectations, and the specific combination of products and services consumed. Risky. - The risk is heightened since it is to be purchased before its consumption. Marketable. Is marketed at two levels. First level. National and regional organizations engage in persuading potential tourists to visit the country or a certain region. Official tourist orgs first create knowledge of its country in tourist –generating markets and persuade visitors in these markets to visit the country. Second level. Various individual firms providing tourist services, market their own components of the total tourist product to persuade potential tourists to visit that region. TRANSPORTATION Land Transport. Movement on land. a. Road transport o Man Driven o Animal Driven o Motor Driven ADVANTAGES LIMITATIONS - Cheaper - Limited carrying capacity - Goods are transported at a faster speed by - High cost in transport of heavy goods road - Affected by adverse weather conditions - Loading and unloading is possible. Door-to- door service. - Move and carry goods from one place to another which are not connected by any other means like hilly areas b. Rail Transport - Most dependable mode of transport over a long distance - Provide leisurely sightseeing - PNR – PAMBANSANG DAANGBAKAL NG PILIPINAS o JUNE 2, 1964 o Built during Spanish period o Province to province - LRT. LIGHT RAIL TRANSIT o Low capacity, shorter distance o Within urban center - MRT. METRO RAIL TRANSIT. o Higher capacity, longer distance ADVANTAGES LIMITATIONS - Convenient - Expensive for carrying goods over short - Relatively faster than road transport distance - Suitable for carrying heavy goods in large - Not widely available quantities over long distance - Fixed time schedule - Less affected by weather - Not flexible for loading and unloading - Heavy losses of life  c. Pipelines transport - Liquids and gases are transported - Most convenient for transport for petroleum - Large capital investment for installation and maintenance o Malampaya Pipeline d. Ropeway transport - Transport which connects two places on the hills, or across a valley or river. o Cable Car, zipline, trolleys Water Transport. - Cargo. River cruise, adventure cruise, luxury ship o Regent world cruise. Most expensive cruise. o Carnival Corporation. Largest cruise line company. o Royal Caribbean International. Largest cruise ship. o Norwegian Cruise line. Number 1 Cruise Line. ADVANTAGES LIMITATIONS - Economical mode of transport for bulky and - Slow moving heavy goods. - Cost is low for maintaining and constructing routes and most are naturally made. - Promotes int’l trade. Air Transport. - by aircraft - fastest ADVANTAGES LIMITATIONS - useful in transporting goods and passengers - more expensive compared to other mode to the area of transport - convenient during natural calamities - not suitable for transporting heavy and bulky goods TRAVEL AGENCY AND TOUR OPERATOR TRAVEL AGENCY. - Makes the necessary arrangements for travelers; airline tickets and hotel rooms. - Engaged in selling and arranging transportation, accommodations, tours. - Business entity that provides tourism related services. LEADING TRAVEL AGENCIES OF PHILIPPINES 1. Surfista Travels 2. Fly Dragon International Travel Agency 3. Reli Tours and Travel Agency (Makati Branch) 4. Philoxenia Travel and Tours 5. WOW Philippines Travel Agency 6. Thomas Cook Travel Agency 7. Aerostar Travel and Tours 8. Adkins Travel Agency 9. LJ4 Travel and Tour Services 10. Reli Tours and Travel Agency (Mandaluyong Branch) TRAVEL AGENCY TYPES. Wholesaler Travel Agents. - Puts together tour offerings. - Marketed to public thru retail agents. - Does not directly deal with the consumer. Retail Travel Agents. - Sells travel services directly to customers. - Sold in two ways i.e., commission basis and mark up the price. o Mark up price is the difference between the retail price and wholesale cost. Forms of a Travel Agency Proprietorship. Person who solely owns a business and is personally responsible for its debts. Partnership. Owned by two or more individuals. Corporate. Owned by shareholders/stockholders. Functions of Travel Agency o Advisory. the agency advices potential travelers on resorts, carriers, travel companions and travel facts worldwide. HOW THEY WOULD PROMOTE. o Reservation. the agency makes reservations for all the travel requirements. ADVANCE BOOKING. o Planning. it plans itineraries o Computation. It computes accurate airline and other fares and does costing of tours and ticketing. o Correspondence. It correspondences by telephone, letter, telex, fax etc, with travel principals and customers. o Records. It maintains accurate files on reservation. o Travel brochure. It maintains and displays stock of travel brochures. o Complaint Handling. It intercedes with principals in the event of customers complaints. o Insurance- it arranges insurance facilities for the customers. o Liaison- it maintains liaison with providers of the services. o Foreign exchange- it provides foreign exchange facilities for customers. o Miscellaneous- it arranges any other special services ordered or required by the customer. Linkages of a Travel Agency o Airlines o Accommodation Companies o Cruise Companies o Insurance Companies o Banking Companies o Educational Institutions o Travel Trade Associations Tour Operator o Buy a range of tourist products in bulk – airline’s seats, hotel rooms and coach services. They ‘package’ them for subsequent sale to retailers or consumers. o Inclusive Tour Packages. Functions of Tour Operators 1. Production - Delivers value added to the customer better product, easier to organize, cheaper than own organization by customer. 2. Marketing/Sales- - Acts as hinge between service providers and demand - Buys part of service providers offers over specific period of time for specific price. - Bundling, packaging of several offers into a one-stop package. 3. Risk - Tour operators have to bear the merchandising risk and the quality of risk. 4. Information - Information about possible destinations and activities. 5. Social Function - They offer national and international tours for persons, who would otherwise not dare to travel. 6. Destination Development - Support the touristic development of destinations. - Offer predictable demand, enabling investment in infrastructure. 7. Destination Changes - They help in giving value to otherwise economically valueless resources.