Investigating 1travel and Introduction The travel and tourism industry is dynamic, exciting and provides a challenging working environment. If you’re reading this book, it’s likely that you’re considering a career in travel and tourism and that you’re beginning your studies of the industry. This unit aims to give you a sound introduction to the industry so that you gain an overview of its various components and how they link together. You will also study the roles and responsibilities of travel and tourism organisations within the different sectors of the industry. You will learn about the development of the industry, particularly from the 1960s to the present day. You will find out how changes in demand, new travel and tourism products and changes in the distribution of products have affected the industry. You will also look at the factors which currently affect the travel and tourism industry and are likely to affect future trends in its development. After completing this unit you should be able to achieve the following outcomes: 1 Know the components of travel and tourism and how they interrelate 2 Know the roles and responsibilities of travel and tourism organisations within the different sectors 3 Understand how recent developments have shaped the present-day travel and tourism industry 4 Understand the trends and factors affecting the development of travel and tourism.

[] BTEC National | Travel & Tourism | Book 1 1.1 Investigating

Thinking points travel and tourism You need to understand what is meant by the travel and tourism industry before you start your studies, and hopefully you will realise that it is not just about exotic holidays – although they are covered! Tourism is the provision of services to tourists. Everything that tourists do while they are away is considered part of the travel and tourism industry. Tourism is a significant contributor to the UK economy; many businesses depend on tourism, directly or indirectly. Many businesses in tourism are very small. Government figures show that the tourism industry consists of 127,000 businesses and that 80 per cent of these have a turnover of less than £250,000 per year. Five per cent of all people in employment work in tourism, that is 1.5 million people. The businesses which make up the travel industry are complex and diverse. In this section of the unit we will examine the various components which make up the industry. Who do you think make up the travel and tourism industry? How many travel and tourism organisations can you name?

1: Investigating travel and tourism [] 1.1 Know the components of travel and tourism and how they interrelate

By components of travel and tourism we mean the Inbound tourists are those coming in to visit a country different parts of the industry that provide travel which is not their country of residence, for the purposes and tourism products and services. None of these of tourism. If a tourist comes from the USA to the UK, components is able to work in isolation. Each one relies then they are inbound to the UK. This also means that on one or more of the other component parts to be able they are an outbound tourist from their own country. In to operate. the same way, you are an outbound tourist from the UK if you go to on holiday. Inbound tourists to the UK spent about £14.25 Visitor attractions Accommodation billion in 2005. Domestic tourists are those people who are travelling within their own country Ancillary services Travel and tourism Transport for tourism purposes. People on day Industry trips are not officially tourists as they are not staying away from home. Statistics consider tourists to be people who stay Tourism development Tour operations Travel agents and promotion away for at least one night. However, as day trippers spend a lot of money in the tourism sector, particularly on travel Figure 1.1 Components of the travel and tourism industry and in the visitor attractions sector, it is important to measure the value of their spending. In , this is measured in the Leisure Visits Survey. Day visitors spent almost £37.4 billion in 2005. Tourists There are many types of tourists, but for statistical Accommodation purposes they are categorised according to their purpose There are many different types of accommodation of travel, broadly as follows: available in the travel and tourism industry. We will look • leisure at the different types. Remember that accommodation • business can be serviced, which means that meals are on offer and • visiting friends and relatives (VFR). your room will be cleaned for you, or it can be non- serviced where you look after yourself and do your own Leisure travel includes travel for holidays, cultural cleaning, shopping and cooking. events, recreation, sports, religion and study. Business travel includes all travel for business reasons, such as meetings, conferences and exhibitions. Usually Hotels business travellers have their expenses paid by their Hotels may be independently owned or part of large company, which can make a difference to the services chains. The chains tend to be more impersonal, but they choose or have chosen on their behalf. they do provide consistency of quality throughout the VFR accounts for many trips, particularly within . For example, if you were to stay in a Mercure the UK. hotel in or in Paris, the room would offer In addition you should know about some other types of exactly the same facilities, and often the layout is tourists. exactly the same.

[] BTEC National | Travel & Tourism | Book 1 1.1 Activity

Study each of the examples below. What kind of tourists are they? Note that some examples might fit into more than one category.

Example Type of tourist

Marianne is taking a holiday in the UK. She lives in Austria. Raj is going on holiday to Bournemouth. He lives in Leicester. Year 11 at Chichester Village College are going to visit Leeds Castle for the day. Sheena and Donald are going to Madrid for a weekend break. They live in Glasgow. Mary is a sales director. She is going to a sales conference in Barcelona. The Patel family are going on holiday to Disneyland, Paris. Jerry goes to visit his father in Dublin every Christmas. Mario is visiting the UK to undertake a language course.

Many hotels are owned by international groups who encompass several chains within them, aiming at different types of customers. An example is InterContinental Hotels Group, a large international group that has 3500 hotels. They are not all owned outright – some are run on a franchise arrangement. This means that the owner pays for the right to use the hotel name, but in return must follow corporate policies. InterContinental Hotels brands are: • Crowne Plaza • Holiday Inn • Express by Holiday Inn • Holiday Inn Express • Staybridge Suites • Candlewood Suites. There are many more hotel groups, and you will be familiar with names like Best Western and Moat House. Hotels offer many products and services, catering for different customers, and the prestigous and more expensive hotels like Sofitel, offer greater luxury. In addition, hotels cater for both business and leisure customers so they need a range of products to suit each type. Conference customers may come for just a day and will need different services from that of the residents.

Figure 1.2 Express by Holiday Inn is part of the InterContinental hotel group and aims to provide comfortable, modern accommodation at affordable prices

1: Investigating travel and tourism [] Assessment practice

1 List the hotels in your town or local area. Find out Self-catering which ones belong to which group. Are there any independent hotels? P1 Self-catering accommodation may be in holiday parks or in rented apartments or houses. Cooking facilities will 2 Choose one of the hotels in your area. Describe how the hotel appeals to different tourists. be provided.

3 Explain how your chosen hotel interrelates with other areas of travel and tourism, for example tour Youth hostels operators or transport providers. Make sure your examples include domestic, inbound and The Youth Hostel Association (YHA), which is a charity outbound tourism. P2 M1 serving the needs of young people, runs hostels in the UK. However, you do not have to be a young person to be a member. It is very cheap to join the YHA and some of the hostels are of a very high standard, almost like Grading tips hotels. There are 226 youth hostels in both city and rural To reach Pass level, you would need to describe the locations in the UK. The original aim of the YHA was to facilities of the hotel and say what type of tourist it promote love, care and understanding of the countryside appeals to. in principle and in practice. To reach Merit level, you would need to think about There is also an International Youth Hostel Federation, all the other organisations the hotel works with with 5000 hostels in 60 countries. The YHA provides not and how they are interdependent. You could draw only accommodation but a range of activity holidays. a diagram illustrating the relationships, along with explanatory notes. Campus accommodation Universities are keen to rent out their halls of residence outside term time. They encourage conference trade as Guest accommodation they can also offer meeting rooms and catering facilities. This includes bed and breakfast accommodation, This is an excellent means of using empty rooms and guesthouses and farmhouses. Homeowners who increasing revenue during students’ holidays. wish to capitalise on the extra space they might have available often run this type of accommodation. Many tourists consider it charming and an opportunity to Grading standards experience local culture. This type of accommodation is very popular in France, where gîtes are rented out for VisitBritain has created quality standards for a wide holidays. range of accommodation in England. , and Northern Ireland have their own schemes. Trained assessors determine these gradings. Holiday parks and campsites Hotels are given a rating from one to five stars – the Holiday parks and campsites are popular with British more stars, the higher the quality and the greater the tourists heading for France and Spain, although range of facilities and level of service provided. camping is probably less popular in the UK because of Guest accommodation is rated from one to five the unreliable weather. Holiday parks offer chalets and diamonds. The more diamonds, the higher the mobile homes so that tourists do not have to worry so overall quality in areas such as cleanliness, service and much about weather conditions. hospitality, bedrooms, bathrooms and food quality.

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Figure 1.3 Youth Hostels offer opportunities for travel and activities in many countries

operator and engineering company Ferrovial SA at a cost of £10 billion. BAA owns the airports at: • London Heathrow • Edinburgh • London Gatwick • Aberdeen • London Stansted • Southampton • Glasgow. BAA also has management contracts or stakes in ten other airports outside the UK, plus retail management contracts at two airports in the USA. There are 144 million Self-catering accommodation is also star-rated from passengers travelling through BAA airports every year. one to five. The more stars awarded to an establishment, Other major UK airports are Birmingham, Manchester the higher the level of quality. Establishments at and London Luton, all owned by different consortia. higher rating levels also have to meet some additional Running an airport is a complex but profitable operation. requirements for facilities. The airport provides products and services to various Holiday parks and campsites are also assessed using groups of people and businesses: stars. One star denotes acceptable quality. Five stars • are provided with the infrastructure and denotes exceptional quality. services to operate their flights The aim of the grading system is to make it easier • customers are provided with facilities, such as for tourists to compare the quality of visitor restaurants and shops accommodation offered around the country. However, • it provides a location in which other businesses can as the Scottish and Welsh tourist boards use different operate, for example, car hire, retailing or ground systems and the English system uses a diamond system handling. and a star system, it is still confusing. The airport earns revenue from all these sources but When you travel abroad, you will find that there is no also has to work hard at keeping all its groups of standard system. The star grading system is more or less customers happy. accepted in but cannot be wholly relied upon. Tour operators tend to use their own grading standards so that they can indicate a level of quality to their customers. An example is the ‘T’ system adopted Assessment practice by Thomson. Study an airport of your choice. This might be one that you are able to visit or one that you can examine via its website.

1 Describe the role and responsibilities of the airport Transport provision in relation to its customer groups, airlines, freight companies and passengers. You could make this Airports into a wall display with explanatory notes. P1 2 Explain how an airport interrelates with other The British Airports Authority (BAA) is the major organisations from the travel and tourism industry, organisation in airport ownership in the UK. In 2006, giving examples that include domestic, inbound the company was taken over by a Spanish airport and outbound tourism. P2 M1

1: Investigating travel and tourism [] Airlines Key terms All UK airlines are privately owned. British Airways Scheduled – these airlines run to a regular timetable (BA) is one of the world’s most famous airlines and that is changed only for the winter and summer one of the largest in terms of international scheduled seasons. The flights depart even if not all the seats services. It is the largest in the UK and flies to more than have been booked. 200 destinations around the world. In 2005, around 36 Charter – these aircraft are usually contracted for million people chose to fly with the . a specific holiday season and run to a timetable British Airways’ main bases are at the London airports set by the operator. For example, each major tour of Heathrow and Gatwick. The airline’s products include operator will need seats for its summer passengers four different types of cabin service ranging from flying to the Mediterranean. They fill every seat on Economy to Club World. It also fully owns subsidiaries the contracted aircraft and each seat forms part of such as British Airways CitiExpress. the holiday package. The major tour operators own The role and responsibilities of BA are: their own charter airlines, for example TUI owns Thomsonfly airline. • to meet the needs of passengers by providing travel on the routes demanded and good in-flight service • to meet the needs of freight customers. The airline carried 877,000 tonnes of cargo in 2005 offered to the customer without further charge. In this • a responsibility to its shareholders, who expect way the low-cost operators are able to offer very cheap British Airways to make a profit and provide a return fares. The low-cost airlines are scheduled airlines. on investment They practise a system known as ‘yield management’ a responsibility to provide sufficient remuneration • which means that bookings are constantly monitored and good working conditions to staff. The airline and prices are adjusted accordingly. In periods of high employs nearly 50,000 people. demand, such as school holidays or weekends, prices will be higher and can even be more expensive than traditional airlines like BA. Theory into practice One of the most successful low-cost airlines is Irish- based Ryanair, which reported record quarterly profits of Find out about the products and services available €116 million to 30 June 2006. to British Airways customers. Compare Economy Airport charges are paid per passenger and vary depending with Club World and make a table charting your on who owns the airport and the deal negotiated by the comparison. This information is available on the BA website (www.ba.com). airline. Low-cost airlines often fly to regional airports because of lower charges. Ryanair recently moved its business from Birmingham to East Midlands airport, to Other major UK airlines include British Midland and take advantage of lower charges. It is also currently in – these airlines are scheduled airlines. dispute with Stansted over airport charges. The UK also has many charter airlines, such as Monarch Low-cost airlines usually have a fleet of aircraft all of the and Thomsonfly. Hundreds of other airlines from all same type, often Boeing 737s. This gives flexibility, as the over the world fly in and out of UK airports, paying for planes can be moved to any route as needed, and it also the services they use. means that maintenance is simpler. There is no business class on a low-cost flight, allowing ■ Low-cost airlines more seats to be put in the plane. Ryanair’s new planes The principle behind the operation of a low-cost airline do not have reclining seats or pockets for magazines, is to keep costs as low as possible, with few or no ‘extras’ resulting in further savings.

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The airlines rely heavily on newspaper advertising, which is costly, but they gain revenue by carrying advertising Sea travel on their own websites. Ryanair carries advertisements on As residents of the UK we live on an island, sea transport seatback covers, bringing an extra source of revenue. has always been an important part of the travel and The airlines charge the customer extra for food, drink tourism industry. Historically, the main mode of transport or paying by credit card, and even sell lottery tickets on to the Continent was by sea across the English Channel. board some flights. The airlines also sell hotel rooms, car When the Channel Tunnel opened, it was expected that hire and insurance on a commission basis. ferry services across the Channel would be threatened. The tunnel did take about 50 per cent of the market, but passenger ferries have also been severely hit by low-cost Regulation of air travel airlines offering cheap fares to the Continent. It is often The Civil Aviation Authority (CAA) regulates the UK cheaper to fly and drive rather than take your own car. aviation sector. The CAA is an independent statutory In 1997, over 21 million passengers passed through body. The responsibilities of the CAA are to: Dover, which is the biggest port in the UK. By 2004, • ensure that UK civil aviation standards are set and numbers had declined to fewer than 15 million. The first achieved full year of Channel Tunnel operation was 1995. • regulate airlines, airports and National Air Traffic Services’ economic activities and encourage a diverse The Channel Tunnel and low-cost flights are not the and competitive industry only competition faced by the ferry operators – there is also a high-speed catamaran operated by SpeedFerries. • manage the UK’s principal travel protection scheme, the Air Travel Organisers’ Licensing (ATOL) scheme, SpeedFerries is offering low fares to attract customers. license UK airlines and manage consumer issues Other operators in the Channel include Sea France and • bring civil and military interests together to ensure Brittany Ferries. Brittany Ferries operates on longer that the airspace needs of all users are met as routes to France and Spain, for example Poole to equitably as possible. Cherbourg, Plymouth to Santander and Portsmouth to The CAA also advises the government on aviation issues. Caen, St Malo or Cherbourg. Ferries also operate to the It receives no government funding but is funded by the Channel islands, for example and . charges it makes for its services. The established ferry operator P&O revealed that its The Air Transport Users Council (AUC) is the UK’s ferries lost £40 million in the financial year 2003–4, consumer council for air travellers. It receives its funding because of competition in the Channel and from low- from the CAA. It acts as representative cost airlines. The company announced 1200 job losses of air passengers and aims to complement and assist the in September 2004 as it cut its routes from Portsmouth CAA in furthering the reasonable interests of passengers. to Cherbourg, Le Havre and Caen and from Rosslare to National Air Traffic Services (NATS) is the organisation Cherbourg. Hoverspeed also ceased trading. responsible for air traffic control. It is a public/private Not all ferry travel is across the Channel. Here are some partnership owned by the government, a consortium of examples of other important routes: seven airlines and NATS staff. It looks after UK airspace Stranraer – Belfast Hull – but also the eastern part of the North Atlantic. NATS Fleetwood – Larne Holyhead – Dublin handles more than 2 million flights a year carrying over Fishguard – Rosslare Pembroke – Rosslare 180 million passengers. Holyhead – Dun – Liverpool The major air traffic control centres are at Swanwick, Laoghaire Isle of Wight – Hampshire; West Drayton, Middlesex; and Prestwick, Hull – Zeebrugge Portsmouth. Ayrshire. There are also air traffic control services at the country’s major airports.

1: Investigating travel and tourism [] In the event of business failure, the Passenger Shipping Theory into practice Association provides financial protection to the customers of some tour operators who offer cruise and ferry-based holidays. 1 Check the ports listed above on a map and make sure you know the location and the country of each. ■ The cruise market 2 Choose one route and find out which ferry operators serve it. Produce an information The cruise sector has enjoyed steady growth over the sheet detailing the services provided and past decade or more. In 2003–4, 28 new ships including extra products available on that route. A ferry the Queen Mary 2 were launched, as companies invested brochure will help you. in new liners. Seven new ships were delivered in 2006 including Royal International’s Freedom of The Scottish islands are accessible by ferry, both from the Seas, the largest passenger ship ever built, carrying the mainland and via inter-island services. more than 4000 passengers. In 2005, 1.21 million British people went on cruise holidays. Cruise companies are doing their utmost to Lewis Outer reach new markets, such as families and younger people, Hebrides rather than just the older age groups who traditionally take cruises. Harris Berneray One newcomer is Easycruise. The company aims to North Uist attract young, independent travellers who can embark or Benbecula disembark at any port on the ship’s route as long as they Raasay Inverness stay on board at least two nights. The ships are in port South Skye Uist during the day and sail at night so that passengers can Eriskay Canna Mallaig make the most of time ashore. Barra Rum Most cruises take place on the sea and most passengers Eigg Muck from the UK take fly-cruises. This means they fly Coll to the ship’s starting point. The Mediterranean and Tiree Staffa the Caribbean are very popular cruise destinations. Mull Lismore Inner Iona Those people who are looking for something different Hebrides might take a cruise to a colder place like the Arctic to Colonsay Cowal experience the beautiful scenery and the wildlife. Glasgow River cruises are also growing in popularity; destinations Islay Bute Great include the rivers Rhine, Moselle, Danube and Nile. Cumbae Gighra Major cruise companies you may have heard of are P&O Kintyre Cruises, Cunard, Royal Caribbean and Princess. Rathlin Island Arran

Figure 1.4 Map showing the Scottish islands BTEC Travel and Torism AW 1.4 Tek-Art (MJH) Theory into practice Consider this Choose a cruise from a brochure. Outline all the Irish Ferries advertises its ferries as ‘cruise ferries’. facilities and services included in the price of the Do you think this makes them more appealing? cruise.

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Figure 1.5 The cruise sector has enjoyed steady growth over the last decade

Road travel There are extensive coach networks operating in the UK offering scheduled services between towns and also into The private car dominates road travel. Car ownership Europe. Eurolines claims to connect to 500 destinations is very high in the UK, and most domestic holidays and within Europe. Its services are very comfortable with day trips are taken by car. In addition, many people toilets, refreshments and video available on board. choose to hire a car when abroad, and this has led to the growth of the car-hire sector. Rail travel

■ Car hire Network Rail owns and operates the national Major car-hire groups in the UK include Hertz, Avis rail network in the UK. Its role is to maintain the and Europcar. All have international operations. Their infrastructure and renew tracks as necessary. products and services have become very sophisticated, The train-operating companies (TOCs) lease trains from making car hire very easy and convenient for customers. rolling-stock companies. There are 25 TOCs in the UK, They offer: and they compete for franchises to run each service. • online or telephone pre-booking The Strategic Rail Authority issues these franchises. This • airport pick-up or drop-off body also monitors the train-operating companies to • a wide range of choice of vehicles make sure the interests of rail passengers are protected; • all insurances included in fixed prices they can fine the TOCs if they fail to meet agreed • one-way rentals – you don’t have to return the car to standards. The TOCs are commercial companies and the place where you picked it up. aim to make a profit, but they do receive government One of the largest companies in car hire is Holiday grants. Autos, which claims to be the world’s largest car-rental Examples of TOCs are Virgin Trains and Central Trains. service with access to over 750,000 cars worldwide. The National Express Group, a British-owned transport Holiday Autos is part of the Lastminute.com group. group, owns Central Trains. Other important aspects of the rail system are the ■ Coaches London Underground, Docklands Light Railway and, Coach operators have adapted their products to meet of course, Eurostar. Eurostar is the passenger train consumers’ changing needs and coaches today are very service through the Channel Tunnel. It operates from luxurious. Fly-coach holidays are offered so that customers London Waterloo and Ashford in Kent to Paris, Lille and do not have a lengthy initial journey but have the benefits . Eurostar is owned by London and Continental of coach travel for touring, for example in California. Railways, and run by a management company.

1: Investigating travel and tourism [11] Visitor attractions Case study: Rail Passenger Council The UK officially has 6500 visitor attractions. These UK attractions are important to both the domestic tourism In summer 2004, an investigation was undertaken by the Rail Passenger Council, the watchdog for market and the inbound tourism market. There are, of the rail sector. Passengers had complained that course, hundreds of different types of attractions, but advance tickets, normally much cheaper, were not they can be broadly divided as follows. always available. For example, passengers travelling from London to Manchester should be able to buy Natural attractions tickets for £22. Instead they were forced to book later at higher prices – an open return from London to These include beautiful beaches, lakes and landscapes. Manchester costs £182. In order to protect them, some are designated Areas of The problem occurs because Network Rail does not Outstanding Natural Beauty (AONBs), National Parks give the TOCs advance notice of engineering works, or Heritage Coasts. so timetables cannot be confirmed. Customers telephone to book advance tickets and are told Heritage attractions they are not yet available as train times cannot be confirmed until engineering works are scheduled. In the UK we have a wealth of historic houses, often cared for by the or English Heritage. We also Sceptics have suggested that Network Rail is disregarding passenger interests and that the TOCs are have museums and galleries such as Britain and Tate profiting from the situation by receiving higher fares. Modern, the Victoria and Albert Museum. These examples are in London, but there are museums throughout 1 Describe the roles and responsibilities of the the country, for example the National Museum of organisations mentioned. P3 Photography, Film and Television in . 2 Compare these with the roles and responsibilities of organisations from different sectors M2 Purpose-built attractions 3 Describe how the problems outlined affect the travel and tourism industry. D1 Purpose-built attractions may be historic also, for 4 What is your opinion of this situation? How can example most museums are purpose built. Favourite it be resolved? Recommend a course of action, purpose-built attractions include theme parks, for with justifications. Discuss it with your group and example the theme park resort Alton Towers. write up the findings. D2 You could use this case study for assessment Events practice. If you do, follow the grading tip. Events such as the Edinburgh Festival or the Notting Hill Carnival attract many visitors. There are events in the business tourism sector too, such as the World Travel Market. Grading tip Paying and non-paying To reach Distinction level, you should think about how other transport companies look after passenger Another way of categorising attractions is to divide them interests and see if their strategies are suitable for into paying and non-paying. Museums, for example, this sector. are usually free, as the principle is that we should all be able to view the nation’s heritage. It is usually difficult to charge visitors to natural attractions as it would mean creating barriers to access.

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Non-paying attractions are still important for the free attraction with an estimated 6.5 million visits per economics of tourism, as they attract visitors to an area year. However, although it is free to enter the Pleasure where they spend money on food, accommodation and Beach, you have to pay to go on a ride. shopping. Blackpool Pleasure Beach is the most popular

Attraction Location 2004 2005 Percentage change British Airways London Eye London 3,700,000 3,250,000 –12 Tower of London London 2,139,366 1,931,093 –10 Flamingo Land Theme Park & Zoo Yorkshire 1,380,110 1,400,210est. 1 Kew Gardens London 1,063,384 1,354,928 27 Windermere Lake Cruises Cumbria 1,289,866 1,282,702 –1 Drayton Manor Family Theme Park Staffordshire 1,100,000 1,200,000 9 Eden Project Cornwall 1,223,959 1,177,189 –4 Chester Zoo Cheshire 1,161,684 1,089,576 –6 Canterbury Cathedral Kent 1,091,684 1,054,886est. –3

Table 1.1 Major paid admission attractions est. = estimate (Source: http://www.tourismtrade.org.uk) d Attraction Location 2004 2005 Percentage change Blackpool Pleasure Beach Lancashire 6,200,000 6,000,000 –3 London 4,868,127 4,536,064est. –7 Brighton Pier Brighton 4,500,000 4,500,000est. 0 London 4,959,946 4,202,020est. –15 Tate Modern London 4,441,225 3,902,017 –12 Natural History Museum London 3,240,344 3,078,346 –5 Science Museum London 2,154,366 2,019,940 –7 Victoria & Albert Museum London 2,010,825 1,920,200 –5

Table 1.2 Major free admission attractions est. = estimate (Source: http://www.tourismtrade.org.uk)

Activity

To improve your knowledge of the UK visitor attractions sector, create a table similar to the one below. Use your local Tourist Information Centre and the VisitBritain website (www..com) to help you complete it. Check your answers with your teacher or tutor.

Type of attraction Two national examples A local example Historic house Garden Museum Art gallery Wildlife attraction Theme park Historic monument Religious building

1: Investigating travel and tourism [13] considered to be mass market tour operators as they Associations sold similar holidays in packages that appealed to the The British Association of Leisure Parks, Piers and majority of holidaymakers. In contrast, specialist tour Attractions (BALPPA) was founded in 1936. It is non- operators sold more individually tailored holidays or profit-making and its role is to represent the interests specialised in one destination or activity. Today, the large of owners, managers, suppliers and developers in the tour operators also offer many specialised products. TUI UK’s commercial leisure parks, piers, zoos and static UK is the UK’s largest holiday company and includes attractions sector. It has about 300 members. the leading UK brand Thomson Holidays. It employs The International Association of Amusement Parks and around 10,000 people, 7000 of whom work overseas Attractions (IAAPA) is a similar organisation to BALPPA in around 40 holiday destinations. Its parent company, but it is an international association and has members World of TUI, is the largest travel group in the world. all over the world. The mission of the association MyTravel is a major player in the market for air-inclusive is to promote safe operations, global development, holidays and other leisure travel services. It also has professional growth and commercial success in the travel agents, hotels and airlines in its group. amusement industry. The third largest operator, First Choice, has a major travel agent in its portfolio and an airline. It offers holidays in destinations such as Majorca, Menorca, the Consider this Canaries, Spain, Turkey, Greece and the Caribbean. Winter sports destinations include France, Austria, Italy, Andorra, Bulgaria and Switzerland, and many specialist Sometimes trade associations have a code of ethics. brands such as Twentys, aimed at young people, and These are not compulsory but members are asked Sunstart, aimed at budget holidaymakers. to abide by them. The IAAPA includes in its code of ethics the aim ‘to fill the hearts of children and all German-owned also has travel agencies, those young in spirit with joy while spending their airlines and hotels as well as brands, hours of play and recreation’. including JMC, and Club 18–30. These companies produce an astonishing range of different holidays packaged in brochures according to type of holiday or type of customer. Here are the brochures Tour operations selling holidays within the Thomson organisation: The role of tour operators is to put together all the • Jetsave & Jersey Travel different components that make up a holiday and sell them • Simply Travel as packages to the consumer. They make contracts with • Headwater Holidays hoteliers, airlines and other transport companies to put • Magic Travel Group the package together. All the holiday details are described • Crystal Holidays in a brochure which is distributed either to travel agents or • Thomson Ski and Snowboarding directly to customers. There are three main types of tour • Thomson Lakes and Mountains. operators catering for the different categories of tourism: • outbound • inbound • domestic. There are many other tour operators in the market; some specialise in particular destinations, for example Simply Spain, or in a product, for example diving holidays. Outbound tour operators Cosmos is the UK’s largest independent tour operator Four major tour operators dominate the outbound and part of the Globus group of companies, a family- market. These are often referred to as the ‘big four’. run organisation established in 1928 which encompasses They are TUI, MyTravel, First Choice and Thomas Cosmos Tourama, Avro, and Archers Cook. Traditionally, these major tour operators were Direct, along with Cosmos.

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Case study: Thompson cuts Turkey capacity by one-fifth

Thomson and Thomas Cook have cut their Turkey has been greater understanding of the situation and capacity in response to a lapse in demand following bookings have resumed normal levels.’ the bird flu outbreak. Nick Wrightman, managing director of Tapestry Thomson’s 20 per cent cut means its summer 2006 Holidays, said Turkey bookings had been strong programme has been reduced to a similar capacity as recently but were still down on last year. last year. Meanwhile, research by Trip-Vision showed that 16 per A Thomson spokesman said the Turkey programme cent of travellers polled said bird flu considerations had was still under review and capacity could be increased influenced their travel plans in the week to 1 March. quickly if demand picked up. Just over 2 per cent of the whole sample said they ‘We trimmed back the programme slightly because of had ruled out some countries and decided on another the decline in demand, although in the last couple of location. Spain was the most popular alternative, weeks we have seen it picking up again,’ he said. chosen by 26 per cent. ‘There is nothing to stop us putting flights back in.’ Trip-Vision managing director David Jones said 6.4 per Thomas Cook chief executive, Manny Fontenla- cent of travellers polled said they still planned to go to Novoa, said it had cut back in response to falling one of the infected countries. demand, adding that Spain appeared to be a favoured (Source: Travel Trade Gazette, 10 March 2006) alternative destination. However, he said Thomas Cook 1 Why did Thomson and Thomas Cook cut capacity could quickly reinstate capacity in Turkey if necessary. to Turkey? Some specialist operators say demand for the country is returning to normal. 2 Do you think this was the right decision? Upmarket Turkey specialist, Exclusive Escapes, said 3 Thomson say they could put flights back if sales had returned to 2005 levels after a surge in necessary. How would they do this? bookings during the past two weeks. Until Christmas, Exclusive Escapes had reported Turkey sales up by 50 per cent on the previous year, Taking it further but sales collapsed after reports of the outbreak. Research some current events which are Managing director Andrew Lee said: ‘Bird flu certainly impacting on demand for specific destinations. had a very negative impact on bookings to Turkey at Give examples of what tour operators are the start of the year. In recent weeks, however, as doing in response to changes in demand. P4 bird flu has emerged just across the Channel, there

Key term Inbound tour operators Inbound tour operators cater for the needs of overseas Air Travel Organisers’ Licensing (ATOL) – a scheme visitors to the UK. An example is British Tours Ltd, that protects air travellers and package holiday which claims to be the longest-established inbound makers from losing money or being stranded abroad if air travel firms go out of business. When a tourist operator. It offers tours for different sizes of groups and books a holiday the cost of this financial protection has a wide variety of products, including a Harry Potter is included in the price. Any package firm that tour. The tours are available in many languages. includes a flight should by law hold a licence. ATOL is An example is a ‘fun for children’ tour, which includes managed by the Civil Aviation Authority. Robin Hood and his Merry Men, Maid Marion and the

1: Investigating travel and tourism [15] bad Sheriff of Nottingham; HMS Victory, where Nelson Thus, they are distributors of products. lay wounded; Henry VIII’s battleship the Mary Rose; Travel agents may operate through: HMS Warrior, England’s first armoured battleship; • retail shops a lively and noisy fort where children can ‘fire’ guns • business shops and handle swords; and Legoland, a drive from • a call centre Windsor Castle, or one of the many theme parks. • online. Most travel agents are part of a multiple chain, and these Domestic tour operators dominate the business. Examples you will be familiar with are Thomas Cook, Thomson and Going Places. These Domestic tour operators package holidays within the particular chains are linked to tour operators and may try UK for UK residents. They include coach companies to prioritise their own company’s products. which place advertisements in newspapers. Like outbound operators, they offer beach, city, touring and There has been a slight reduction in the number of special-interest holidays. branches of multiple chains in the past few years as customers choose to buy travel and tourism products through other means, particularly through travel websites. Tour operators’ associations Independent travel agents are usually run by their owner UKinbound is the trade body which represents tour and a small team, and may have only one or two outlets. operators and tourism suppliers to the UK. It was There are also independent chains – an example is founded in 1977 to represent the commercial and Travelcare. political interests of incoming tour operators and Travelcare is the UK’s largest independent travel chain suppliers to the British inbound tourism industry. It is a with branches nationwide The chain is very successful non profit-making body governed by an elected council with profits rising by £0.9m to £1m in 2004. The chain and funded by subscriptions from its members and from was voted favourite major high street travel agent in the revenue-generating activities. Guardian/Observer 2004. This company is part of the The Association of Independent Tour Operators (AITO) Co-operative Group. is an organisation which represents about 160 of the UK’s specialist tour operators. AITO members are independent companies, most of them owner-managed, specialising in particular destinations or types of holiday. Key term The Federation of Tour Operators (FTO) is an Association of British Travel Agents – the body organisation for outbound tour operators. It aims to representing the sector. It also has tour operators as ensure the long-term success of the air-inclusive holiday members. According to ABTA figures, in 2005 it had by influencing governments and opinion formers on the 866 tour operator members and 1468 benefits to consumers of air-inclusive holidays compared members with 6164 travel agency offices. with other types of holiday. Members pay an annual subscription based on the size of their organisation. All current members are also members of ABTA, and the Business travel agents two organisations work very closely together. Business travel agents specialise in the business market. They aim to handle all the travel arrangements for large Travel agents companies. The role of travel agents is to give advice and information, ‘Implants’ are travel agents located within another and sell and administer bookings for a number of tour business. They set up office within a company so that operators. They also sell flights, ferry bookings, car hire, they are on hand to deal with the travel requirements of insurance and accommodation as separate products. the company’s personnel.

[16] BTEC National | Travel & Tourism | Book 1 1.1

Q13c Which of these methodologies have you ever used to book package holidays?

Q17 Thinking about booking holidays over the next two years, which of these methodologies do you think you might use?

Ever used Likely to use

Through a travel agent 76% 71%

Direct with a tour operator by telephone 20% 32%

Using Teletext 10% 19%

The internet via a computer 24% 52%

The internet via digital TV 1% 5% 0 10 20 30 40 50 60 70 80 Base: All (724) MORI

BTEC Travel and Torism AW 1.6 Tek-Art (MJH) (Source: http://www.abta.co.uk) Figure 1.6 Changing booking methods in the travel and tourism industry

Call centres Online

Almost everyone has experience of speaking to staff Websites are the most up-to-date means of distributing in call centres – they are widely used by banks and travel and tourism products and services. Table 1.3 insurance companies as well as in the travel and tourism shows visits to some popular travel websites between industry. Increasingly customers prefer to book travel by 2005 and 2006. telephone or the internet rather than by visiting a travel You will learn more about travel agents in Unit 9. agent. Figure 1.6 shows that 52% of people polled are likely to book their holiday over the internet in the next Climbers: the old Jan 06 Jan 05 % Growth 2 years, a big increase on those who have booked on it rockers before. However, travel agents are still the most popular • Thomson • 5.92% • 4.53% • +31 option. • Thomas • 4.46% • 2.45% • +82 Call centres are often in out-of-town locations where Cook rents, rates and labour are cheaper. Some banks and • First Choice • 4.37% • 3.11% • +41 other companies have relocated their call centres to • MyTravel • 4.18% • 2.30% • +82 India to take advantage of lower costs. Some call centres Fallers: the are operator- or airline-owned and sell on behalf of that new wave company exclusively; others are specialist call centres • Expedia • 9.23% • 9.27% • –0.4 and handle calls and bookings for many companies. • Lastminute • 5.30% • 6.10% • –13 Call centres rely on high staff productivity to be • Ebookers • 1.83% • 2.44% • –25 successful. They motivate staff through incentives such • Opodo UK • 1.47% • 1.68% • –13 as bonuses on sales targets reached. Call answering time, (Source: http://www.hitwise.co.uk/) call durations, sales and complaints ratios are carefully Table 1.3 Share of visits to selected travel websites, January 2006 monitored.

1: Investigating travel and tourism [17] Tourism development and The chain of distribution and integration

promotion The chain of distribution is the means of getting the The development and promotion of tourism in the UK product to the consumer. It applies in any industry, and is mostly undertaken by organisations in the public traditionally takes this form: sector such as VisitBritain and the VisitWales. Their role is described on page ??? In addition, trade associations Producer and regulatory bodies have a role to play in development and promotion as they represent the interests of Manufacturer their members and help them operate successfully in business. The relevant trade associations for each

component of the travel and tourism industry have been Wholesaler discussed as we have studied each sector. In each sector of the industry, we have seen that there are regulatory and trade bodies whose role it is to advise members Retailer and represent them, particularly to the government. Ensure you have understood the role of each of these associations or regulatory bodies. Consumer

Figure 1.7 Chain of distribution

Ancillary services In the travel and tourism industry there is also a This term refers to organisations who do not have a traditional chain of distribution: direct role in travel and tourism but play a supporting role, perhaps offering related products and services. Principals – that is hotels, airlines and other Examples include insurance companies who offer travel transport companies insurance and car parks who operate parking facilities at

airports as well as in other locations. Tour operators Key term

Travel agencies Economies of scale – these occur when a company Interrelationships and is able to spread its costs over mass-produced goods or services. Savings can be achieved through interdependencies in the Consumers discounts for bulk purchasing, rationalisation of administration systems and management, and lower industry production costs. Figure 1.8 Simple chain of distribution in We have examined the different components of the the travel and tourism industry travel and tourism industry, and it is obvious that the various businesses cannot work in isolation. Each of In this traditional chain of distribution, businesses fit neatly them relies on others for its success. In this section of the into a category such as ‘travel agency’ and perform the unit we will examine how businesses work together, and role of that business. However, the industry is much more who needs whom. complex than that and in many cases the traditional chain has been shortened. Figure 1.9 gives some examples. In addition, companies do not stick rigidly to one line of business. They tend to buy or merge with other

[18] BTEC National | Travel & Tourism | Book 1 1.1

Figure 1.9 Chain of distribution in Principal Internet Consumer the travel and tourism industry agencies, airlines and often hotels besides Principal Tour operator Call centre Consumer different tour-operating businesses. In fact, their operations are not limited to the UK; all are global operations. Principal Call centre Consumer The has companies in all parts of the chain of distribution: Principal Tour operator Television Consumer airlines, hotels, tour operators, travel and incoming agencies. Its global and UK operations are described on its website. businesses, always striving for greater commercial The group encompasses 33 tour operators, about 3600 success and market dominance. When companies do this travel agencies, a portfolio of 76,000 controlled hotel beds, it is known as vertical or horizontal integration. a fleet of 77 aircraft and a workforce numbering some Vertical integration occurs when two companies at 24,000. The company is represented in the sales markets different levels in the chain of distribution merge or are of , , Ireland, France, , bought. This may be backwards integration – for example, Luxembourg, the , Austria, Hungary, Poland, a tour operator buys a hotel – or forwards integration, for Slovakia, Slovenia, Egypt, India and . example a tour operator may buy a travel agency. The UK’s third-largest vertically integrated leisure Tour operators have bought or created airlines, hotels business comprises the tour operator brands Thomas and travel agencies. This means they own all the Cook, Thomas Cook Signature, JMC, Neilson, Style, different components in the chain of distribution and Club 18–30, Cultura, Time Off, Sunset, Sunworld are able to control the whole operation. They claim that Ireland and roomsandhotels.com. Under the tour this gives them economies of scale and allows them to operator brand, Thomas Cook, the company offers offer better prices to customers. It can also mean that package holidays. smaller operators are forced out of business. With more then 1500 outlets, ThomasCook UK is the market leader in the British travel agency business. It Key term also owns UK, Britain’s second- biggest charter carrier with 24 aircraft. Economies of scale – these occur when a company (Source: http://www.thomascook.info/tck/de/en/nws; is able to spread its costs over mass-produced Thomas Cook Jobs website 2006) goods or services. Savings can be achieved through At an Institute of Travel and Tourism conference in discounts for bulk purchasing, rationalisation of 2004, the chief executive of Thomas Cook UK explained administration systems and management, and lower why Thomas Cook had become a vertically integrated production costs. company: ‘We were a successful retailer, but felt If a tour operator buys another tour operator at the vulnerable without our own product. We also wanted to same level in the chain of distribution, this is known control the quality of the holidays we were selling – that as horizontal integration. A recent example was the was important for the brand.’ acquisition of the specialist schools tour operator Travel There are those, however, who think that vertical Class by First Choice in 2006. First Choice already runs integration is no longer suitable for today’s market, a schools ski programme in France and owns a North because it means that capital is tied up in assets and is American student tour operator. subject to risk. Also, if customers do not want to buy from All of the major tour operators in the UK are vertically the high street agencies, many of the chain stores will close and horizontally integrated, owning their own travel as tour operators invest in other types of distribution.

1: Investigating travel and tourism [19] 1.2 Know the roles and responsibilities of travel and tourism organisations within the different sectors

The not-for-profit sector Department for Culture, Media and Sport This sector includes public sector organisations, regulatory bodies and conservation groups. National Tourist Boards The role of the not-for-profit sector is one of supporting and guiding different businesses so that everyone, including tourists, employees and management, can Regional Regional benefit from tourism while minimising problems. Development Tourist Agencies Public sector organisations receive their funds from Boards local or central government and usually aim to provide a service. Examples include the national and regional Figure 1.10 tourist boards and some visitor attractions. Funds for Tourist Information Centres Public sector tourism public sector tourism organisations come from central government through the Department for Culture, Media and Sport (DCMS) or from local councils. These Other government departments have responsibilities organisations are judged on issues such as numbers of for areas of tourism. The Department for Transport visitors achieved and quality, rather than on financial looks after aviation, railways, roads and the London success. Underground. The Department for Education and In some countries the state owns and runs companies, Skills (DfES) has responsibility for sector skills councils re-investing the profits into other state ventures. Many and training organisations. The Department for the transport facilities are state-owned, although not in the Environment, Food and Rural Affairs (DEFRA) is UK where privatisation has taken place. Privatisation responsible for issues affecting the countryside, wildlife means the state selling assets previously in the public and waterways, among others. sector to the private sector, to raise money. The structure of public sector tourism is shown in Within the public sector in the UK, the DCMS is Figure 1.10. responsible for supporting the tourism industry at The UK has four tourist boards: VisitBritain, national level. In 1999, the government’s overall strategy VisitScotland, the Northern Ireland Tourist Board and for the development of tourism was published in the VisitWales. report Tomorrow’s Tourism Today. This policy was VisitBritain reports to the DCMS. VisitWales reports reviewed and updated in 2004 and a new statement of to the National Assembly for Wales and VisitScotland the roles and responsibilities in tourism of the DCMS, reports to the Scottish Executive. VisitBritain, Regional Development Agencies, local government and the Tourism Alliance was issued, covering the following areas for action: VisitBritain • marketing and e-tourism The role of VisitBritain is to market the UK to the • product quality – introducing common standards for accommodation grading schemes British and the rest of the world. Formed by the merger of the British Tourist Authority and the English Tourism • workforce skills, supporting People First, the sector skills council Council, its mission is to build the value of tourism by creating world-class destination brands and marketing • improved data and statistics. campaigns. It also aims to build partnerships with other organisations which have a stake in British tourism.

[20] BTEC National | Travel & Tourism | Book 1 1.2

Theory into practice Regional Development Agencies (RDAs) and Regional Tourist Boards (RTBs)

You will use the VisitBritain website (www.visitbritain. Regional Development Agencies (RDAs) have com) a lot during your studies as it is an invaluable responsibility for tourism in their regions and usually tourism resource. Look at it now to find out the work closely with Regional Tourist Boards (RTBs). objectives of the organisation. Make a note of them and ensure you understand the terminology From 2003 to 2006, the RDAs received £3.6 million used. You should be able to answer the following per year from the DCMS specifically for tourism. This questions. money was to be passed on to the RTBs until the end of • What is a domestic tourist? 2005–6. The RDAs determined the objectives and targets • What are the National Tourist Boards? the RTBs should meet in return for the funds. There • What is meant by impartial tourist information? is overlap between the roles of the RDAs and RTBs. • Who funds VisitBritain? • What is the current grant given to VisitBritain? Sometimes the tourist boards adopt a different name • What are Regional Development Agencies? to explain more precisely what they actually do. An • Where are VisitBritain’s overseas offices? example is Marketing Manchester, the tourist board for Greater Manchester. Its role is to: • provide destination leadership • attract the visitor These organisations include the British Council, • support the industry UKinbound, the British Hospitality Association and the • service the visitor. UK Immigration Service. These organisations are not totally dependent on Part of VisitBritain’s role is to advise the government government funding. Funds can be raised from business and other bodies on issues that might affect the British membership fees and from the provision of training tourism industry. The aim is to provide advice that courses to tourism organisations and employees. reflects the needs of both the tourism industry and the tourist, and to recommend courses of action to the government. Local authority tourism departments The overseas offices work closely with British diplomatic Local authorities play an important role in supporting and cultural staff, the local travel trade and media, to the tourism industry because of their statutory duties stimulate interest in the UK. and because they recognise that tourism is a major Another example of the role of VisitBritain is its contributor towards the economy. They have tourism campaign to persuade high-spending tourists to come departments and plans. Most towns also have a Tourist to the UK. It is important that inbound tourists spend Information Centre (TIC). These are run independently money and boost the UK economy. – most are subsidised by the local council. They all rely heavily on generating income to ensure their financial VisitBritain has launched a magazine called So British, aimed chiefly at high-spending US tourists, but also at viability. emerging markets like Russia. The magazine features The TIC provides a full information service for both luxury British brands like Harrods, Barbour and residents and visitors. It gives information on visitor Wedgwood, and carries articles on destinations in attractions and on accommodation. It usually provides the UK. a booking service for accommodation, and often VisitBritain owns the VB grading scheme, which is incorporates a shop selling locally made crafts and administered by the Regional Tourist Boards. gifts, as well as books of local interest. The shop is more than a service for visitors – it is an important means of generating funds.

1: Investigating travel and tourism [21] Theory into practice Key term

Public limited company – a business that is owned Visit your local Tourist Information Centre. Your by shareholders. Its shares are bought and sold on teacher or tutor may wish to organise a group the . Avoid confusing this type visit. Find out about the services it offers, and try of business with one which is ‘in the public sector’. It to determine how many of its services generate is not the same thing. A business in the public sector revenue for the TIC. Discuss your findings with the is owned and usually financed and run by national or group when you return. local government.

Conservation groups Roles and responsibilities Conservation groups are usually voluntary organisations We have looked at the roles and responsibilities of with charitable status. Many are run by volunteers, various organisations as we have discussed the various although some have paid employees. They may be components of the travel and tourism industry. However pressure groups, such as Greenpeace and Tourism there are some general points to be made about how Concern. Others, for example the National Trust, aim to roles and responsibilities may differ from sector to preserve and protect historic buildings and landscapes. sector. Conservation groups do not aim to make a profit, but The not-for-profit sector: this does not mean they cannot be commercial. Any • Provides services which benefit the public or the revenue they gain will be re-invested to further the aims community of the group. • Provides the services at rates that make them accessible to all – often subsidised • Provides services which are beneficial to society, Profit sector e.g. promote health Most organisations in the travel and tourism industry • Reinvests any profits in the organisation are privately owned. These organisations may be huge • Depends mainly on government grants or donations companies like British Airways or small businesses. for funding. They usually aim to make a profit and are commercial The profit sector: companies. When they fail to make a profit over a period • Makes profits for shareholders of time they are likely to cease trading. All theme parks, • Remains competitive restaurants, tour operators and travel agents in the UK • Achieves company objectives, e.g. growth in market are privately owned. There are different types of private share or improved company image. ownership ranging from sole trader to public limited companies. Sole traders are small and run by one person, as the name suggests. A public limited company is listed on the stock market and is owned by its shareholders who may buy and sell shares as they see fit.

[22] BTEC National | Travel & Tourism | Book 1 1.3 Understand how recent developments have shaped the present-day travel and tourism industry

Since the 1960s, the travel and tourism industry has changed dramatically. It is unlikely that your Key term grandparents had regular holidays abroad unless they were quite wealthy, but today foreign travel is within the Deregulation – this occurs when a government reach of almost all segments of society. In this part of decides to remove restrictions on the operation of a the unit we are going to look at the key developments business to allow greater competition and hopefully that have made the possibility of travel open to almost greater efficiency and reduced prices for customers. all of us.

Legislation Air passenger duty The UK government has always recognised the In 1996, air passenger duty was reduced on economy importance of tourism to the economy and has flights, removing a barrier to the growth of inbound introduced new policies and laws over the years. tourism. However, in 2006 it was greatly increased.

Development of Tourism Act 1969 Tourism strategy The Act established a British Tourist Authority and In 1999, , the government’s tourist boards for England, Scotland and Wales. The Tomorrow’s Tourism Today tourism strategy, was published. It is still valid, although British Tourist Authority and the English Tourism it has been reviewed. Council have now been merged to form VisitBritain, which is described earlier in this unit. The Act’s aim was to co-ordinate all the organisations that make up Package Travel, Package Holidays and the tourism industry and provide it with a single voice. Package Tours Regulations 1992 Since this Act was passed the responsibility for tourism As a result of an EC Directive, since 1992 all UK tour funding and development in Scotland and Wales has operators offering package holidays have been subject to been devolved to the Scottish Parliament and the Welsh the Package Travel Regulations. The regulations set out the Assembly. Also, VisitScotland and VisitWales have been tour operators’ responsibilities to their customers and what given the power to market overseas independently of those customers can do if the regulations are breached. VisitBritain. This has caused a lack of clarity in the role of VisitBritain, as its role is to market Scotland and Wales as well as England. Product development

Transport Acts 1980 and 1985 Holiday camps

The 1980 Transport Act ended licensing regulations Billy Butlin was on holiday in Skegness in the 1930s affecting express coach routes and tours of over 30 miles. when he noticed a group of miserable holiday makers, It led to competition between National Bus (then a public sitting on a bench in the rain. They had nowhere to go company) and private companies. The 1985 Transport Act as, in those days, when you stayed in a boarding house brought about wholesale deregulation. This meant private you were expected to leave in the morning and not companies could operate on any route. come home until the evening, rain or shine. He saw the opportunity of providing for these people and decided to open a holiday camp. It opened in Skegness in 1936.

Unit 1: Investigating travel and tourism [23] The concept was very popular and attracted about developed the concept. Derksen liked to escape from 2 million visitors a year. The appeal of Butlins was that it everyday life and get back to nature. His idea was for ‘a provided, on one site, all the facilities and entertainment villa in the forest’. He built 30 luxury villas and an outdoor a family could wish for, including childcare, swimming pool in a forest in Limburg, constructing everything to lessons, bingo and ballroom dancing. Between 1945 harmonise with nature, a rule which still applies today. and 1960, holiday camps were at their peak, catering for This park was the birth of a company which has since about 60 per cent of the holiday market. Warners and expanded throughout Europe, Center Parcs. Pontins were other important names in the market. The Center Parcs leads the short-break holiday market in the holiday camp went into decline in the 1970s as demand UK. The first park was opened in 1987 at Sherwood Forest. for sunshine and package holidays abroad grew. It offers short-break holidays, with midweek or weekend Butlins still exists and is owned by the Bourne Leisure breaks all year round, and longer stays if desired. Center Group. See the case study in Unit 3 to find out what has Parcs achieves occupancy figures of over 90 per cent at all happened to Butlins. its villages and repeat bookings of more than 60 per cent within a year. Elveden Forest opened in August 1989 and Holiday parks Longleat in 1994. A competitor, Oasis, was acquired in 1997. The following case study gives a description of one A forerunner to Center Parcs was opened in 1968. It was of the parks from the Center Parcs website. in Holland and named De Lommerbergen. Piet Derksen

Case study: Sherwood Forest

Opened July 1987, 786 villas, 39 apartments, 400 acres, up to 4206 guests per break. Eleven themed restaurants and bars, five retail outlets and an extensive range of indoor and outdoor sport and leisure facilities. Most of the restaurants, bars and shops are in and around the Village Square, the open centre of the Village, where the Subtropical Swimming Paradise is also located. The newly opened Aqua Sauna is an outstanding Spa facility. Indoor sports facilities are mainly located in the Jardin des Sports, quite close to the Village Square and also containing the Figure 1.11 Sherwood Forest village Time Out Club for children and teenagers. There is a the BBC News website (news..co.uk/). You separate Country Club in another part of the Village, might find out what has happenned to plans for with an additional restaurant and bar and sports a fifth Center Parc at Warren Wood near Woburn, facilities including a golf driving range. where a £160 million development was planned. (Source: http://www.centerparcs.co.uk) 2 What changes in society and consumer 1 Carry out some research to find out what Center expectations have contributed to the Parcs’ future plans are. Try looking on the success of Center Parcs? internet at the websites of publications such as P4 Leisure Opportunities (www.leisuremedia.com) or 3 Find out about another holiday centre (not Business Week (www.businessweek.com), or at Butlins) and compare it with Center Parcs.

[24] BTEC National | Travel & Tourism | Book 1 1.3

were fairly efficient but were of course subject to human Package holidays error, and double bookings could easily arise. Thomas Cook is credited with being the first person As demand for travel grew, reservations departments to organise a package holiday. That was a trip from were introduced. With the advent of computers, tour Loughborough to Leicester by train – not very far at all! operators and airlines developed their own systems. It was in 1841. The first package as we know it today was Eventually these systems were linked to travel agencies in 1949 and was organised by Vladimir Raitz. He took 32 via terminals, and travel agents could make bookings passengers to Corsica on a DC3 aeroplane. He charged in their offices. These are known as ‘Viewdata’ systems. them £32.50. The package included accommodation Thomson decided to accept bookings only through in tents, return flights, transfers and full board. He Viewdata, which meant that the system was essential established Horizon Holidays in the same year, and by for any travel agent. By today’s standards Viewdata is the end of the 1950s the company had grown to be one unsophisticated technology, although it is still used. of the UK’s major tour operators. Meanwhile, airlines developed computer reservation Other companies followed Horizon’s example and systems (CRS). Airlines started to use computers in the package tours grew in popularity. The major growth came 1950s to store the huge amount of information they in the 1970s as people became more prosperous and keen needed to access. The CRS was used internally by airlines, to see new places. Most of the package holidays were to and agents would use a publication called OAG (the Spain and its islands, where hotels were built rapidly to Official Airline Guide) to look up flight times and details, fulfil the demand from British and German tourists. then telephone the airline to make a booking. Today Currency restrictions were lifted in the 1970s; before travel agencies have direct access to the CRS systems. this, tourists were allowed to take only £50 in sterling Global Distribution Systems (GDS) link up several CRS out of the country. This led to an increase in the appeal systems and present them to the travel agent. of the package holiday as tourists could take more spending money with them. Internet booking – unpackaging

The internet is growing rapidly as a means of booking Destination development holidays and flights. The growth in internet booking As the world realises the economic benefits tourism can be attributed to the low-cost airlines, which brings, more and more governments plough money into educated passengers in how to book quickly and easily attracting tourists from overseas. via the internet and offered discounts for doing so. With increased confidence and access to information, has constructed hotels, residential developments travellers happily book all aspects of their holiday online and shopping centres to attract tourists and added the and in effect make their own packages. Travel agencies infrastructure and transport links to bring the tourists will have to redefine their role as this trend continues. in. There are few places in the world where tourists have yet to venture. Some more examples of ‘new destinations’ are given on page ??? Theory into practice

Technological development Use the internet to package your own imaginary holiday to Majorca. You will be travelling with a friend One of the areas of greatest impact through new for a week. You will need to find a flight, a suitable technology has been in the way bookings are made. hotel and car hire. Do not use any resources other Bookings in the period following the Second World War than the internet. Make notes on the products (1939–45) were simple to make, as airlines and tour available, the web addresses and the costs. (Stop operators had charts on the walls of their offices and before you get to the final booking page!) took bookings by telephone or by post. These charts

1: Investigating travel and tourism [25] In 1969, Boeing produced the 747 Jumbo Jet, a wide- Self check-in at airports bodied jet. The 747 can seat 500 passengers, though it usually holds 385. It cruises at about 965 kilometres Where this service is available, passengers can save time per hour and has a non-stop range of just over 11,500 by checking in at a kiosk where they can choose their kilometres. It usually has a forward first class (or seat and print their own boarding pass. From there they ‘business class’) section and a second level on which the can go to a ‘fast bag drop’ and leave their hold baggage. cockpit and a lounge are located. This aircraft had the Passengers without baggage can go straight to the following impact on the package holiday market: boarding gate. • it became possible to fly further in less time, making long haul destinations more accessible On line check-in for airlines • increased capacity on the jet led to a decrease in the price per seat, bringing the price of holidays down Using this system, passengers can check in without even • as jumbo jets were used more, smaller aircraft were being at the airport. From home or the office they go available for charter operations. online and follow instructions to check in, choosing In 1976, British Airways, in collaboration with Air their seats and printing their boarding passes. Online France, started the first supersonic airliner service, check-in is used by several airlines including Ryanair, Concorde. Concorde ceased flying in 2003 but it had set reducing queues at check-in desks. the standard for luxury air travel.

■ Introduction and growth of low-cost Transport development airlines Deregulation of air travel in Europe led to the development of low-cost airlines. The Aviation (EU) started the liberalisation process in 1987, when The aviation sector in travel and tourism includes cost-related fares and certain types of discount fares airlines and airports, and the industry is heavily were first allowed. The final stage of deregulation came dependent on this sector for transporting passengers to in 1993. their destinations. What deregulation meant was that EU airlines could During the Second World War great advances were establish themselves in any EU member state and made in the development of aviation – in the building obtain an operating licence. All routes within the EU of planes, in navigation and communication, and in are available to all EU carriers. Thus an airline such flight procedures. When peace returned to Europe it as Ryanair can have a base in Hahn and fly was possible to put these resources into civilian travel. to and from countries all over the EU. In 1994, easyJet There were also many RAF-trained pilots available for launched a low-cost airline offering two routes from employment. These developments meant that aircraft Luton to Glasgow and Edinburgh. Now there are about became important for leisure travel. 77 low-cost airlines flying travellers all over Europe. The first British fully jet-powered passenger aircraft, In 2004 there was much expansion in routes as the EU the de Havilland Comet, was put into service in grew to 25 states. The new member states in eastern 1949. In 1954, two of the earlier models crashed Europe brought opportunities for travel to and from in the Mediterranean, and services using the plane these countries. EasyJet introduced flights to Budapest were suspended. In 1954, Boeing introduced its new (Hungary), Ljubljana (Slovenia) and Bratislava passenger jet aircraft, the Boeing 707, and when it began (Slovakia). Ryanair flies to Riga in Latvia. commercial service in 1959 it dominated the market. In The impact of the low-cost airlines on the travel and 1963, the Boeing 727 was introduced, one of the most tourism industry has been to encourage people to travel successful series of passenger jetliners of the past 50 years. more and to gain new travellers – that is, people who

[26] BTEC National | Travel & Tourism | Book 1 1.3 were unused to travelling abroad but were attracted by the low prices. Many of the low-cost airlines operate Sea from regional airports, so travel is even more convenient for people in the regions, who now have direct flights to ■ Channel Tunnel many destinations. A tunnel under the English Channel between France and In December 2001, the first non-stop flight went around England was just an idea for many years. But in 1986 the the world without refuelling. In 2004, the longest non- Anglo-French Channel Tunnel Treaty was signed and the stop passenger flight yet was launched by Singapore idea became reality. The tunnel would allow the British Airlines. It flies from Singapore to New York, over the to leave their island without flying and without risking North Pole, in 18 hours, with no need for a refuelling stop. seasickness, and encourage our continental neighbours to visit the UK. In 2001, the unmanned aircraft Global Hawk flew automatically from Edwards Air Force Base in the USA In 1987, the boring for the tunnel began in the UK. to Australia non-stop and without refuelling . Although The tunnel opened in 1994. Its original budget was the technology will soon be in place for passenger £4.8 billion but its final cost exceeded £10 billion. Ten aircraft to fly unmanned, it remains to be seen whether major British and French construction companies people will accept this. were involved in the building of the tunnel, collectively known as ‘Transmanche’. ■ Super planes The is on its way. The aircraft can seat between 555 and 800 passengers. It is expected that there Theory into practice will be a range of activities on offer on board, including Jacuzzis! Virgin Atlantic has ordered six of these to start delivery in 2007. However, airports which accept the The French call the English Channel ‘La Manche’. Do you know, or can you find out, what this word means? aircraft have to make changes to infrastructure in order to accommodate the large plane and the large numbers of passengers boarding and disembarking. Some airports are reluctant to make such changes until major American airlines have committed themselves to these ■ Super ships huge aircraft. A new £36-million passenger ferry has been created Another new aircraft is the 7E7 Dreamliner introduced by a French naval architect, Gilles Vaton. It is called a by Boeing. It has lower operating costs and fuel Bateau à Grande Vitesse (BGV), which means high- consumption than the current Boeing 767 and a greater speed boat. The biggest boat will carry 1200 people and flight range, so it is expected to be a popular choice for 250 cars, or 1000 lorries as a cargo ship. Because of its airline fleets. For example, this plane can fly from the high speed, the ferry cuts the journey from Portsmouth UK to Hawaii non-stop. First Choice, the tour operator, to Caen in France from 6 hours to under 3, and the has ordered six. 20-hour journey from Marseilles to Algiers to 9 hours. High speed is not the boat’s only advantage – there are already fast catamarans operating as ferries – but the BGV can maintain its speed in all weathers, whereas the Consider this catamarans have to stay in port in rough weather. On the French Riviera, the local council is thinking How long do you want to be in the air without of buying a small version of the BGV, carrying 350 stopping? Do you think such long flights will cause passengers, as a means of sea transport between Monaco health problems for passengers and crew? and St Tropez. The aim is to reduce congestion on the Riviera’s roads.

1: Investigating travel and tourism [27] Figure 1.12 The TGV high-speed train offers fast travel across France

Rail Thalys, to increase price competition between rival operators by 2010. ■ High-speed trains Rail’s proportion of the total EU passenger travel market has been falling for some time: it dropped from High-speed train lines, such as France’s extensive Train 10 per cent in 1970 to 6 per cent in 1998, according to à Grande Vitesse (TGV) network, have helped maintain European Commission data. the success of the railways in some countries. The TGV is operated by the French nationally owned and subsidised rail company, the SNCF. The TGV travels at speeds of over 300 kilometres per hour. Lifestyle changes The European high-speed rail network has been extended and TGV services now run direct from Paris, Pattern of taking holidays the Channel Tunnel and Brussels towards Germany. In 2004, the education minister Charles Clarke gave the The Belgian high-speed trains are known as Thalys. It is go-ahead for plans to change the school year to a six- important to note that such trains require new tracks to term year. The school year is now divided into terms of run on, which means substantial investment. more equal length than the old three-term system. This The Eurostar service through the Channel Tunnel is will impact on holiday seasons for tour operators and operated with TGV trains, but the track on the UK side should lead to more even prices during July and August. of the tunnel has only recently been renewed. New track It is hoped there will be less demand in the summer as reduces the journey time of the UK leg from London by parents have more choice of when to take a holiday. It almost half. is a recognised problem that children are being taken For the future, in order to compete with low-cost out of school to go on family holidays during cheaper airlines, international train services in Europe will need periods, and the new arrangement of terms in the school to be overhauled. The European Commission wishes year may solve this to some extent. to open up competition in cross-border passenger rail Another change in holiday patterns is that people links, including high-speed links like Eurostar and are taking more short breaks. There has been an

[28] BTEC National | Travel & Tourism | Book 1 1.3 immense growth in this market, both within the UK The more educated we are, the more we are aware of the and with people travelling abroad. Cities are very world and its possibilities. We are curious about different popular destinations, especially London, New York and cultures and languages and keen to experience them. As . we live in a multicultural society we are more familiar with different religions, foods and cultures and less anxious about the unfamiliarity involved in travelling to Increased income and expectations new places. We are wealthier as a nation and have higher expectations than in the past. Most people have been More leisure time abroad and most expect to take at least one holiday a year; this is in contrast to previous generations. People’s The increase in leisure time can be attributed to several income can be described as follows: factors. • gross income – pay before deductions like tax, Most households have a range of labour-saving National Insurance, etc. appliances, including dishwasher, washing machine and • net income – pay in hand after deductions (also microwave. This means the household chores are not the known as disposable income) drudgery they once were and we are free to use our time • spending money – the amount left over after essential to do other things. outgoings such as rent or mortgage payments (also People are also living longer. One of the most important known as discretionary income). markets in travel and tourism is the ‘grey’ market. Discretionary income is important in the travel and This refers to older people who have plenty of time tourism industry because without it people are less likely and available funds and want to travel. Older people to go on holiday or travel. Fortunately, most people have these days are usually in good health due to the success a greater discretionary income these days, and travel is of the National Health Service and the availability of relatively cheap. good food. Contributing to private pension schemes Official figures show disposable income rather than over their working years has led to a good income in discretionary income, as it is easier to measure. retirement for many people. If the mortgage has been paid off and the children have left home, older people can party! Saga is the most famous tour operator Key terms catering for older people, but all tour operators are aware of and market to this group. Disposable income – what’s left after tax, National It has become common for people to retire earlier, even Insurance and pension contributions are deducted in their fifties, and take advantage of good pension from pay. arrangements. This trend will reverse in the future as Discretionary income – what’s left after essentials many pension schemes have experienced difficulties, like rent or mortgage, food and the cost of travel to and the government is also encouraging people to work work are deducted from disposable income. longer. As the older section of the population increases, the younger working people cannot generate enough in taxes to support a large section of the population not working. This is a concern for the British government, Improved education which is constantly reviewing pension schemes to find The government aims to improve the level of education ways around the problem. achieved by people from all sectors of society. It aims to get It is a legal requirement for employers to give their staff more students into university and more of the population paid holidays, and now most UK employees receive at achieving at least a Level 2 qualification, for example a least four weeks’ holiday a year. This had led to people GCSE. being able to take more holidays than the traditional

1: Investigating travel and tourism [29] summer break, and many people also take a winter holiday and/or several short breaks. Those who benefit Contribution to countries GDP from flexitime working can arrange their hours so that they are able to take weekend breaks. How we spend our leisure time varies greatly according to taste, age, income and expectations. There is, however, Key terms an increase in demand for travel and attractions to visit. Gross Domestic Product (GDP) – the value of all final goods and services produced within a country in Numbers employed in a given period of time. Balance of payments – one of the UK’s key travel and tourism economic statistics. It measures the economic transactions between the UK and the rest of the There are an estimated 1.4 million jobs in tourism in world. It tells us the difference between spending on the UK, some 5 per cent of all people in employment. imports and exports. Approximately 130,400 of these jobs are in self- employment. Tourism contributes to the economy and therefore to the Total Tourism-related (millions) (millions) GDP as visitors spend money on goods and services and also on transport to enter a country. Total employment 28.4 1.42 Employee jobs 24.6 1.29 The impact on the economy of incoming and outbound Self-employment 3.6 0.13 tourism is recorded in the balance of payments. Each sector of the economy is measured in terms of its (Source: Labour Market Trends, April 2005; http://www.tourismtrade.org. uk/MarketIntelligenceResearch/KeyTourismFacts.asp) imports and exports. Travel services have their own Table 1.4 Employment in tourism-related jobs balance which contributes to the overall balance of payments. Unfortunately, the travel services balance Table 1.5 shows where most jobs are in travel and shows a deficit (£15.8 billion in 2003) and has done for tourism and in hospitality. some years. This means that more money is spent by UK residents travelling overseas than by inbound tourists 2003–4 and domestic tourists. Transport is shown separately Restaurants 518,700 from travel services. Hospitality services 402,000 Contract food service provision 179,600 Gambling 74,000 Hotels 247,100 Activity Youth hostels 2300 Visitor attractions 10,600 Find out what the current travel balance is. You can find Holiday parks/self-catering this in The Pink Book, a government publication, in your 51,400 accommodation library or online. Look at the transport balance also. Is Travel and tourist services 114,700 there a deficit or a surplus? Discuss your findings with Pubs, bars and nightclubs 368,400 your teacher or tutor. Sector total 1,968,800

(Source: Labour Force Survey, average of four quarters) Table 1.5 Workforce by industry

[30] BTEC National | Travel & Tourism | Book 1 1.1 1.4 Understand the trends and factors affecting the development of travel and tourism

Trends affecting More independent travellers

development According to a 2004 Mintel report, in 2003 the number As people become more affluent they are able to take of independently booked holidays exceeded the number more frequent holidays. This had led to the popularity of package holidays taken for the first time. The rise in of the short break, often to a city. independent travel is set to continue to an estimated 55 per cent of all holidays. This is almost entirely due Nights Percentage of trips to the internet. It is not only young travellers who go 1 29 independently but also more upmarket customers who 2 27 plan their own luxury trips but want value for money. 3 15 However, it is not expected that the package holiday 4 9 market will decline completely as it offers convenience 5 5 and in some instances cheaper packages. 6 3 7 6 Adventure travel 8–13 3 14 2 There is no one definition of adventure travel. Surveys 15+ 2 have shown that some adventure holidays include Average 3.37 activities such as birdwatching and cultural activities. Others perceive adventure holidays to include extreme (Source: Tourism Survey 2004) sports and risk taking. In spite of the difficulty of Table 1.6 Duration of all domestic tourism trips taken by UK residents, 2004 defining adventure travel, it is clear that organisations offering ‘adventure travel’ report increased interest and Paris, Amsterdam, Bruges and Rome were 2004’s top increased bookings. four destinations. Tour operators are aware of the trend and have created or acquired activity or adventure holiday businesses. An Greater flexibility of booking example is TUI UK who acquired Explorers, the dive As people become more confident about travel and more operator, in 2006. TUI UK has a specialist active and used to travelling abroad and seeing different cultures, adventure division. they are able to book the component parts of their holiday themselves rather than go to a travel agent. This is most likely to happen for more frequent lower-priced trips. When people are spending a lot of money, for Consider this example on a wedding or cruise, they are more likely to seek expert advice from a travel agent. Many people now What is your idea of an adventurous holiday? have access to the internet at home and are able to carry Birdwatching or extreme sport? out research into travel and destinations and make their own bookings online. Websites like Expedia have profited from internet growth by providing the ability to make up New destinations holiday packages, selecting flights and accommodation as desired. In spite of this ABTA still reported sales of 18.5 Tourists are constantly looking for new and more million package holidays sold in 2005. exciting destinations. These days there are very few new

1: Investigating travel and tourism [31] Figure 1.13 Tourists on a diving holiday

destinations to visit as improved transport has made of Yugoslavia. Now that the area is peaceful again more almost everywhere accessible. ABTA carries out its own and more tourists are going, not only for its beauty but research through its members and predicts that the because it is relatively cheap. The popular areas are the following destinations will rise in popularity, but for beautiful resorts of Dubrovnik, Split and Rovign on different reasons. the Dalmatian coast. There are also hundreds of idyllic islands dotted along the coast and it is ideal for sailing. ■ New Zealand According to ABTA the islands regularly top travel ■ Bulgaria surveys and more and more British people are choosing The UK is Bulgaria’s third-largest market after Germany to visit them. New Zealand offers beautiful scenery with and Greece. Bulgaria has a lot to offer; it has beaches rainforests, glaciers, fjords and geothermal pools. It has a along the Black Sea coast, lively cities and skiing in the lot to offer for adventure tourists, as white-water rafting, winter. It is improving all the time with investment in jetboating and bungee jumping are all available. The infrastructure and new hotels. Lord of the Rings films have also been an influence in attracting visitors to New Zealand. ■ Tasmania Another destination growing in popularity according ■ Croatia to ABTA is Tasmania. It lies off the coast of south- Croatia could be described as a revamped destination east Australia. Tasmania has one of the most beautiful as it was a popular resort for UK travellers before the beaches in the world, Wineglass Bay. It also has a World Balkan wars in the 1990s. At that time Croatia was part Heritage site, Cradle Mountain Lake St Clair.

[32] BTEC National | Travel & Tourism | Book 1 1.4 Assessment practice

ABTA reports that eastern European destinations are Grenada badly, the hurricane of 2005 in New Orleans seeing a surge in demand. Write a short informal and the tsunami in the Far East in late 2004. The report for a travel agent. Make sure you give examples tsunami resulted in thousands of deaths across twelve of specific destinations. countries. The human death toll was appalling but the livelihood of the survivors is also threatened because of 1 Describe the key trends and factors that have led to an increase in demand for eastern European the devastation of infrastructure and the hesitation of destinations. P5 tourists to return to the area. 2 Analyse the effect of these factors on the future development of the travel and tourism industry. M3 Health warnings and epidemics

Taking it further Foot and mouth disease had a devastating effect on travel and tourism in the UK in 2001. Animal, rural and Recommend how travel and tourism organisations farm-based attractions were badly affected by the crisis could adapt to the increase in demand for caused by the disease. Overall, 26 per cent of attractions eastern European destinations. D2 were forced to close for part of their normal opening season in 2001. Fortunately, figures from the following year saw a large increase in visits to farms, gardens and countryside attractions, as tourism recovered from the outbreak: farm visits were up 50 per cent. Growth and expansion of regional airports In the winter of 2002–3 an outbreak of the respiratory The UK government has a policy of expansion for disease SARS affected tourism, particularly in the Far regional airports, demonstrated by growth at Stansted, East. People were discouraged from travelling to and Manchester, and at smaller airports like Coventry or from countries which were affected, such as Hong Kong Robin Hood airport in Doncaster. Such expansion has and Canada. This had an impact on the UK economy advantages in that it takes some pressure off London as these countries provide many of the UK’s inbound airports and brings tourists into the regions, boosting tourists. their economy. Much of the increased capacity at Stansted and Liverpool is due to the growth of the low- Terrorism cost airlines. The devastating terrorist attacks of 11 September 2001 in the USA also had an impact on the UK and the worldwide Factors affecting tourism industry. People were afraid to fly, particularly American tourists, resulting in a decline in visitors to the development UK and a decline in worldwide travel for leisure and for business. Natural disasters The impact of 9/11 has been long term. Security is high Natural disasters, such as hurricanes and earthquakes, bring priority at airports, passengers easily become alarmed about a decline in tourism. They are considered an ‘Act of and there are many incidents of planes diverting or God’ and not covered by insurance, so, if a flight is delayed being delayed due to zealous security checks or panic for technical reasons passengers will be compensated, but if incidents. Travel insurance has risen as some companies a plane is struck by lightning, they will not. have reviewed their policies to include terrorist incidents Climatic disasters have a devastating impact on which are normally excluded. On a positive note, destinations and on their tourist industry. Recent international organisations have had to work together to examples include the hurricane of 2003 which hit respond to security threats.

1: Investigating travel and tourism [33] In October 2002, a terrorist bomb in Bali resulted in the price of the holiday. Many hotels are now described over 200 deaths. The tourism industry in Bali was as ‘spa hotels’. ruined, and only began to pick up again 2 years later. The increase in car ownership has meant that people There have been similar bombings in Istanbul, elsewhere choose to drive to their destination rather than take in Turkey, in Kenya, Madrid and London over the a train or a coach. It also led to a demand for car use past few years. Each of these events results in a loss of on holidays. If you have access to a car at home why tourism for the area involved until travellers begin to not when you are away? This demand has brought forget about the incidents and feel safer. about the growth of a huge car hire industry operating internationally. Tour operators developed ‘fly drive’ holidays to give customers flexibility. Environmental issues The wedding market has been developd into an As society and government policy become more ‘green’, extensive product range. About 50,000 couples get the awareness of tourists about environmental issues married abroad each year, according to ABTA. Although grows. This leads to a demand for responsible travel and exotic holidays are expensive, they are much cheaper an expectation that travel and tourism companies will than a traditional wedding at home. Some couples act in an environmentally friendly way. These issues are persuade a few friends to holiday with them to attend explored in detail in Unit 11. the wedding. The top destinations for weddings abroad are the Caribbean, Sri Lanka, Mauritius and Florida. Cost of travel Some companies have found their niche in catering for particular types of activity holidays. One example Travel is relatively cheap today, particularly air travel. is Cycling for Softies. It provides bikes and all the The advent of low-cost airlines has brought down the equipment you might need at the starting point of price of air travel and many people take advantage of your holiday. The cycling is fairly gentle and each night this to take frequent short breaks in addition to their is spent in a different hotel along the route where the main holidays. Long haul travel prices are more fluid holidaymakers can relax and enjoy dinner. but there are often bargains to be had. For example, tight security restrictions in the summer of 2006 and the inconvenience of travelling without travel essentials on flights to the USA led to a reduction in bookings for transatlantic airlines. Fares were reduced to entice Assessment practice passengers back and the resulting fares were some of the lowest ever, with returns to New York from £160. Look in the quality newspapers and find examples of events, trends or factors that have affected the travel and tourism industry in the past week.

New products and services 1 Describe these events, trends or factors and how they have affected the industry. P4 P5 Different holiday products have been developed to meet changing consumer demand. Demand for shorter, 2 Explain how such events, trends or factors are likely to affect future development of travel and more frequent holidays has led to city break products. tourism. M3 As consumers have become more aware about the dangers of sunbathing, they demand active or adventure Taking it further holidays. Those seeking safety and reassurance about the cost of a holiday before they go can choose an all- Say what you think the industry could do inclusive holiday. in response to such events or factors. Recommend courses of action and give Another area of growth is the ‘spa’ holiday. Massage and your justifications. D2 special treatments and activities like yoga are included in

[34] BTEC National | Travel & Tourism | Book 1 1.4

Grading tips

Examples of events to look for include natural disasters, heatwaves, transport strikes, the introduction of new products or technology and outbreaks of war. To reach Merit level you need to think about whether the event will impact on demand for products, how products and services are delivered and the profitabilty of travel and tourism companies.

Knowledge check

1 How did the development of low-cost airlines impact on travel and tourism?

2 What is meant by deregulation?

3 What are the elements of a package holiday?

4 Give an example of legislation affecting tourism in the UK.

5 What are the problems affecting the UK railways?

6 Describe the different methods of distributing travel and tourism products to consumers.

7 Why is Croatia increasing in popularity as a holiday destination?

8 What is the difference between scheduled and charter airlines?

9 What are the drawbacks of accommodation grading schemes?

10 How do call centres motivate their staff?

11 Who are the ‘big four’ tour operators?

12 What is horizontal integration?

13 What is vertical integration?

14 Which government department is responsible for tourism?

15 What is the role of a Tourist Information Centre?

16 What is the role of the AUC?

1: Investigating travel and tourism [35] End of unit assessment

Preparation for assessment

Your college has a thriving travel and tourism department 1 To give students an overview of the industry, describe and wishes to ensure its continued success. In order to the components of the industry. To do this effectively do this it wants to carry on recruiting students who are you should include the following: enthusiastic about the industry and interested in pursuing • a description of the different components P1 a career in one of its diverse sectors. Each year the college • an explanation of the ways that the components holds two open days and these are well attended and interrelate. P2 M1 efficiently organised, but the students who come have already decided they are interested in travel and tourism and are easy to recruit. Grading tip Your tutor thinks it would be a good idea to ‘spread the word’ about travel and tourism, and proposes a road show To reach Merit level on this task you must ensure for local secondary schools. The purpose is to spend half you have examples of organisations within the components that cover domestic, outbound and a day in each school mounting an exhibition/information inbound tourism. session/interactive activities for Year 10 pupils. This will differ from the usual careers evening sessions in that it will be organised by students and it will be about the travel 2 Students need to understand the roles and and tourism industry, not just the courses. It is hoped that responsibilities of organisations in travel and the students will be so enthused by what you tell them tourism. Add the following to your display: • a description of the roles and responsibilities that they will come flocking to college to study travel and of travel and tourism organisations, tourism. including at least one from each sector P1 For the following tasks you might produce a display with • a comparison of the roles and responsibilities illustrations and explanatory notes, and an information of travel and tourism organisations from sheet to be distributed to students. different sectors M2 • an assessment of how the roles and responsibilities of organisations from different sectors affect their operations. D1

Grading tips

To reach Merit level, you could produce a comparative chart with explanatory notes. To reach Distinction level, you need to give examples of organisations and how their aims impact on what they do, for example an organisation in the not-for- profit sector will not spend extravagantly on advertising and will have to account for all spending very carefully. Any surplus will be re-invested in projects.

[36] 1.1 End of unit assessment

Preparation for assessment

3 Students need to know about the development of the travel and tourism industry. Add to your display: • an explanation of recent developments that have shaped the present-day travel and tourism industry P4 M3 • an explanation of key trends and factors that will affect the development of travel and tourism P5 M3 • recommendations with justifications on how the industry could respond to key trends and issues affecting the future development of travel and tourism. D2

Grading tip

To reach Merit level, analyse how developments have shaped travel and tourism. M3 This could be represented in a timeline with pictures and detailed explanatory notes. The difference between a Pass and a Merit is that to reach Pass level you need to say what the key developments were and when they occurred. To reach Merit level you must show an understanding of the effect of the development. For example, to reach Pass level you should mention the introduction of low-cost airlines, to reach Merit level you must say that this has led to an increase in demand for short haul holidays as passengers can access cheap flights from regional airports such as Stansted and Liverpool. To reach Distinction level, you might discuss how rising fuel prices affect airlines, the prices of seats and consequently holidays. You should recommend courses of action for airlines or tour operators to deal with this problem and justify your recommendations. D2

1: Investigating travel and tourism [37] Grading Criteria Activity Pg No.

To achieve a pass grade the To achieve a merit grade the To achieve a distinction grade evidence must show that the evidence must show that, in the evidence must show that, learner is able to: addition to the pass criteria, in addition to the pass and the learner is able to: merit criteria, the learner is able to: P1 describe (giving examples M1 explain how the D1 assess how the roles and including domestic, inbound components of travel and responsibilities of travel and and outbound tourism) the tourism interrelate, giving tourism organisations from components of the travel and examples that include different sectors affect their tourism industry domestic, inbound and operations Assessment practice page outbound tourism Case study page Assessment practice page P2 describe the ways that M2 compare the roles and D2 recommend and justify how components of travel and responsibilities of travel and the travel and tourism industry tourism interrelate tourism organisations from could respond to key trends Assessment practice page different sectors and issues affecting the future Case study page development of travel and tourism Case study page P3 describe the roles and M3 explain how recent responsibilities of travel and developments have shaped the tourism organisations from present day travel and tourism different sectors industry and how key trends Case study page and factors are likely to shape the industry in the future Assessment practice page P4 describe recent developments (from the 1960s onwards) that have shaped the present day travel and tourism industry Taking it further page P5 describe the key trends and factors that will affect the development of travel and tourism Assessment practice page

[38] BTEC National | Travel & Tourism | Book 1