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In-depth outline for Chapter 1

by: Jessica Arena

In-depth outline for Chapter 1 133-01

Marketplace > Massasoit Community College > BUSN > 133-01 > In depth outline for Chapter 1
Jessica Arena


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About this Document

All of my chapter outlines will be like this.
Introduction to Tourism
Joan Noble Ostheimer
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This 5 page Study Guide was uploaded by Jessica Arena on Friday September 9, 2016. The Study Guide belongs to 133-01 at Massasoit Community College taught by Joan Noble Ostheimer in Fall 2016. Since its upload, it has received 28 views. For similar materials see Introduction to Tourism in BUSN at Massasoit Community College.


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Date Created: 09/09/16
Chapter 1 Notes Our Industry: Past and Present The Difference between Travel and Tourism  Travel- to go from place to place, to journey, to move in a given direction or path, to traverse.  Tourism- the practicing of traveling for recreation, the guidance or management of tourists, the promotion or encouragement of touring.  Inbound tourism bring business into a city, town, hotel, or a business.  Outbound travel involves participants purchasing services for going away, such as airline tickets or hotels in another city or country.  Inbound services are usually handled by separate companies called Destination Management Companies. Evolution of the World’s Largest Industry  People have been travel forever whether it be for religious journeys, to trade goods or to pay their taxes in the biblical times. th  By the 19 century thousands of Americans and European’s began to travel for pleasure and self-improvement.  The golden age for train travel extended from the late 1800s through the early 1900s. th  By the mid-20 century cars and planes were competing with railroads and then they were starting to be phased out.  Today, Travel and Tourism, and all of its’ subindustries are recognized by many as one of the largest industries in the world. Today’s Travel Industry and Its Segments  There are many segments of the industry: however, the main segments fall into 3 major categories: o Suppliers  They own the goods and services the travelers use.  This includes transportation, food, shelter, entertainment, and attractions.  Airline and railroad companies, car rental companies, hotels, and cruise lines are all major suppliers. o Distributors  They act as intermediaries between suppliers and travelers, helping travelers obtain goods and services owned my suppliers and helping suppliers promote their products where travelers can find them.  Examples of distributors are tour operators/packagers and travel agencies. o Supporting businesses and organizations  They either provide travel-related services like maps and travel insurance or they aid or regulate the travel industry.  The American Society of Travel Agents (ASTA), is a trade association that lobbies governments and speaks to the public on behalf of its members.  National tourist offices (NTOs) are government agencies that promote travel to their countries. Travel Agencies  A travel agency sells travel products and services directly to the public.  Agencies sell two major types of travel o Leisure travel  Also referred to as vacation travel o Business travel  Also referred to as corporate travel  Some agencies sell both, others may specialize in one or the other.  The people who do the selling go by many names o Travel agent, travel manager, sales representative, travel consultant, and travel counselor. o The preferred name is travel counselor because those who sell travel to the public should be able to offer professional advice to the client, above and beyond just booking the needed travel arrangements.  Some travel products are sold through a conference system, which is an arrangement where the organization of suppliers appoints travel agencies to sell their products.  Travel counselors also earn commission-a fee or percentage of the sale- for selling their products to the public.  Travel agencies also earn income from suppliers by establishing preferred supplier relationships, which are commitments from the travel agency to certain suppliers to maximize their use of those suppliers and to steer clients to them.  Some suppliers may offer higher commissions and/or overrides, which means an extra payment for a large volume of sales, as well as other benefits, such as training programs and even familiarization trips (fam trips) for the agency’s staff.  Travel counselors save time for travelers or suppliers, and the provide expert knowledge about travel products. Online Travel Agencies  Online travel agencies exist ONLY ONLINE. Ex. Travelocity, and Expedia. Airlines  Most airlines no longer automatically pay commissions to agencies for selling air tickets, which is why most travel agencies charge travelers a service fee for air reservations now. Rail Travel In many other countries railways are still a main form of transportation. o Including the government-financed high-speed rail systems TGV in France and Japan’s Bullet Train. Special train journeys are making a comeback like some of the greats: o California Zephyr o City of New Orleans o Orient Express o Blue Train o Glacier Express Other Ground Transportation Travel agencies receive commissions from well-known auto rental companies such as Hertz Avis, Auto-Europe and many more. Accommodations  The Industry that supplies this service is known as the hospitality industry and sometimes referred to as the lodging industry.  Many of the people in the industry have mastered a specialized field. o Managing room inventories o Food service o Meeting/convention handling o Event handling o Security  Nevertheless, travelers make more than half of the booking for their rooms directly on their own. Cruise Lines  Some cruise lines have their own websites set up to fill their ships.  They also have their own travel agencies, or so called cruise-stores that they also use to fill up their ships.  Travel agencies that sell cruises will have a cruise counselor specialist that has personally been on the cruises that the agency is trying to sell. o This allows them to bring a personal aspect to the sale. Tours/Packages  Some of the tours will include: o Air and ground transportation o Lodging o Food o Attractions, Ex. Theme parks or museums  The only thing that tours and packages have in common is that they are sold as a unit and prepaid at a set package price.  They are commonly considered a “better deal” for the customer finance wise instead of buying the components separately.  This only works if the client is willing to commit to the dates, hotels, and the other feature of the package. The Travel Market: Basic Concepts Marketing Fundamentals  Marketing is a series of decisions and actions taken by a seller to create a match between customers’ preferences and a product or service.  The target market consists of the demographics that the company wants to mainly appeal to.  Other agencies try to appeal to particular market segments, or cluster of individuals who have similar needs.  Market segmentation is the process of identifying clusters of individuals who can forma target market. o Young singles can be considered a demographic segment  Demographic Segmentation o Categorizes people according to characteristics such as age, sex, or marital status. Ex. Senior citizens, singles  Price Segmentation o Divides a population into segments based on how much people are able and willing to pay for a product.  Psychographic Beliefs o Groups people with similar attitudes, interests, and beliefs into distinct target markets. Ex. White-water rafters and art lovers, for example might each form a market segment.  Usage Segmentation o Divides people according to the purpose to which they would put a product. Ex. Some travelers are taking a trip for business; some for vacation, others, for education.  A commodity is an item that travelers are likely to buy wherever it is most convenient or least expensive, unless they are very loyal to a particular seller. Essentials of Selling  Selling is the aspect of marketing that ensures that they purchase your product and service. o Identify the customer’s needs. o Identify the products or services that will meet those needs. o Translate the features of products and services into benefits for the customer. o A feature is an inherent characteristic of a product or a service. o A benefit is the positive result that a feature brings to a particular client. Understanding Travelers and the Travel Product Business (Nondiscretionary) Travel  Nondiscretionary travel is usually business travel, also referred to as corporate travel.  Meeting travel consists of trips to organized gatherings such as conventions.  Incentive travel is travel that is offered by an organization as a reward, often for meeting goals such as sales quotas. Discretionary Travel  More than three-fourths of trips taken by Americans are discretionary. o VFR travel- travel to visit friends or relatives. o Leisure Travel- For pleasure or vacation  Special-interest travel- consists of trips devoted to a particular activity or interest. Analyzing leisure Travelers  Venturers- They center their lives on varied interests.  Dependables- They focus on everyday problems and value familiarity and comfort.  High season- When rates and traffic peak.  Low season- When rates and traffic are at their lowest.  Shoulder season- The periods between the high and low seasons. Travel Careers: Paths to Success  Most positions in this industry are challenging, exciting, and satisfying. But are also exhausting, stressful, and intense. Starting Out  Preparing for a career in Tourism o Interpersonal relationships o Language o Math o Technology o Ability to learn Building a Career  Professionals- people who train themselves to become experts in a field, use that expertise to benefit clients, and do so in an ethical manner.


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