history and structure of the travel and tourism industry

history and structure of the travel and tourism industry

Introduction

Tourism is seen as one of the main industries in the world. “The World Travel and Tourism Council (2001) indicated that tourism creates more than ten percent of the global economic output and 1 in 10 jobs worldwide”.

“Tourism starts with the wealthy, with images of prestigious visits to seaside resorts and spas, Grand Tours and the activities of business enterprisers such as Thomas Cook” (Towner, 1995).

This paper describes the history and structure of the travel and tourism industry, the influence of local and national governments and international agencies, local and national economic policy, the effects of supply and demand on the travel and tourism industry and the positive and negative impacts of tourism.

History

Based on my perception, I would categorize the history of travel & tourism industry in three different time bands as follows:

• Before 1945
• 1945-1979
• 1980 to current day

Before 1945

In ancient times and approximately till the end of the 16th century people were living in agricultural communities was stationary, seldom moving from the local area and rural community. “Even with the beginning of the industrial revolution, which was making a slow start in the 18th century in urban and factory development, a richer ‘elite’ class alone enjoyed leisure and travel, while the workers worked in situ. Indeed as industrialization got under way leisure time or holidays where they existed tended to decrease” (Lickorish, Jenkins, 1997)

Prior to the 1950s, tourism was an industry which was inconsistent; hotels, transport operators, tour operators, travel agents, all tended to work separately. Hotels were mainly in the business to sell bed nights. Railways and airlines were in the business to sell seats, Travel agents, were selling travel and holidays however in each case they tended to work very much independently.

Up until 1946, i.e. the period between the world wars, much of international travel was for the privileged, wealthy and elite groups in society.

“Thomas Cook introduced the first package tour in 1841, but in fact by that time the railways (The first passenger railway (Liverpool and Manchester) opened in 1830) themselves were offering excursion trips, for a traffic which they had not originally expected to carry. The first objective had been carriage of freight, and secondly the provision of faster transport for the current stagecoach travelers at far from cheap prices. The popularity of cheap excursion fares for special events was not expected” (Lickorish, Jenkins, 1997)

1945-1979

If we look at the year 1945 as the year in which the development of the main growth in the tourism industry started, we can construct some general explanation concerning to the changes which one can differentiate in the tourism industry.

From the mid-1950s onwards, mainly in the UK, the development of tour operators started changing the character of the industry from individual business activities to more integrated activities. “Hotels, for example, were beginning to see customers as wanting a range of services rather than simply buying accommodation. So hotels began to develop shopping arcades and later to offer secretarial centers in order to increase the spend of guests within the hotel complex. Transport operators, particularly in the airline business, saw the sale of transport services as being integral to a much wider need. Airlines offered insurance and accommodation booking for travelers” (Lickorish, Jenkins, 1997)

From 1950 onwards a combination of factors, such as increase in free time availability, increase in paid holidays, improvement of package tours, and growth in air transport – all combined to offer a wider possible holiday-taking market. This market was different regarding socioeconomic groups from the pre-1950 era.

1980 to current day

By the 1980s several airlines were offering full travel services such as arrangements for holidays, medical services, hiring car, etc.

By 1990 the formation of the tourism industry, especially in the United Kingdom and Europe, was effected by the development of a number of very big companies. “In the USA, American anti-trust laws discouraged, if not prohibited, the development of large integrated companies”. The experience of American in operational tour has been very different from Europe, mainly compared with the United Kingdom (Lickorish, Jenkins, 1997).

Air travel improved even more rapidly. Nevertheless, this is only piece of the story, as nonscheduled traffic (charter services) increased considerably as well. “Making up an estimated 18 per cent of total movement by the 1980s and 50 per cent or more on European routes, where the charter traffic took over the greater part of the holiday movement, as tour operators developed their own services” (Lickorish, Jenkins, 1997)

 

Future

The tourism business is likely to make important help to global economic development in the twenty first century. The cultural trade and understanding that is brought about through tourism is causing a more peaceful and internationalized universal society. Besides contributing to the expansion and renovation of local economies and communities, tourism development is playing an important role in both enhancing education and improving the position of the tourism business aimed at nurturing the next generation of those ready to take on the tourism business.

The Structure of Travel & Tourism Industry

This is the Leiper’s model:

There are 5 key elements of a tourism system

1. Departing Travelers
2. Traveler Generating Region
3. Transit Route Region
4. Tourist Destination Region
5. Returning Travelers

The first is the tourist (the human component), the next 3 components are geographical and organizational and relate to transport, tourist activities and the tourism industry which offers services, goods and facilities for tourists. The last is self explanatory.

And the environment: Economic, Technological, Physical, Political, Socio-cultural, legal, etc.

There are some contemporary influences:

1. Changing actions and motivations of markets
2. Changing patterns of tourist flows
3. Require for planned tourism expansion
4. Force for sustainable tourism expansion
5. Concern for social, cultural and economic impacts of tourism

The influence of local and national governments and international agencies

The position of government is an essential and multipart side of travel and tourism industry, involving policies. State involvement in the trade is a fairly recent practice for central government.

In general the state recognizes that the duties of the public sector must cover such matters as health, safety, fair trading and consumer interests and infrastructure in transport such as roads, railways and ports. These are all matters of direct concern to the resident population. There is a mixed record in the provision of leisure facilities, environmental protection and conservation which includes responsibility for the unique cultural heritage, an important part of Europe’s visitor attractions (Lickorish, Jenkins, 1997).

The state tourism agency, tourist board or government department will have an important role to play in advising on the strategy, offering opportunities to consult and cooperate with a dispersed private sector, and preparing a destination marketing strategy based on an identification of the appropriate markets and their needs and wishes (Lickorish, Jenkins, 1997).

Based on periodic surveys of the government role by the WTO, the OECD and individual countries, the principal functions of a Ministry of Tourism or of agencies under government control can be summarized as:

1. Research, statistics and planning.
2. Marketing.
3. Development of tourism resources.
4. Regulation, including trade regulation.
5. Training and education.
6. Facilitation/liberalization.

Local governments

At the local level the regional or local authority has a role similar to that of the central government and in many ways a more comprehensive and important one. Indeed, in the early days of mass travel stimulated by the growth of the railway network, public sector intervention in tourism was solely at the local level. There were no national tourism organizations.

The growth of large resorts, pioneered in Britain at the main seaside canters, encouraged the development of local tourism administrations to carry out the responsibilities of the host destination (Lickorish, Jenkins, 1997).

International organizations

There are a number of international bodies, both governmental and nongovernmental, with tourism interests. Government bodies reflect the national government’s interest in, and political will regarding, tourism intervention. In the industrialized countries, the tourism priority tends to be low. Because of the wide range of tourism activity the

history and structure of the travel and tourism industry

. history and structure of the travel and tourism industry

history and structure of the travel and tourism industry

Introduction

Tourism is seen as one of the main industries in the world. “The World Travel and Tourism Council (2001) indicated that tourism creates more than ten percent of the global economic output and 1 in 10 jobs worldwide”.

“Tourism starts with the wealthy, with images of prestigious visits to seaside resorts and spas, Grand Tours and the activities of business enterprisers such as Thomas Cook” (Towner, 1995).

This paper describes the history and structure of the travel and tourism industry, the influence of local and national governments and international agencies, local and national economic policy, the effects of supply and demand on the travel and tourism industry and the positive and negative impacts of tourism.

History

Based on my perception, I would categorize the history of travel & tourism industry in three different time bands as follows:

• Before 1945
• 1945-1979
• 1980 to current day

Before 1945

In ancient times and approximately till the end of the 16th century people were living in agricultural communities was stationary, seldom moving from the local area and rural community. “Even with the beginning of the industrial revolution, which was making a slow start in the 18th century in urban and factory development, a richer ‘elite’ class alone enjoyed leisure and travel, while the workers worked in situ. Indeed as industrialization got under way leisure time or holidays where they existed tended to decrease” (Lickorish, Jenkins, 1997)

Prior to the 1950s, tourism was an industry which was inconsistent; hotels, transport operators, tour operators, travel agents, all tended to work separately. Hotels were mainly in the business to sell bed nights. Railways and airlines were in the business to sell seats, Travel agents, were selling travel and holidays however in each case they tended to work very much independently.

Up until 1946, i.e. the period between the world wars, much of international travel was for the privileged, wealthy and elite groups in society.

“Thomas Cook introduced the first package tour in 1841, but in fact by that time the railways (The first passenger railway (Liverpool and Manchester) opened in 1830) themselves were offering excursion trips, for a traffic which they had not originally expected to carry. The first objective had been carriage of freight, and secondly the provision of faster transport for the current stagecoach travelers at far from cheap prices. The popularity of cheap excursion fares for special events was not expected” (Lickorish, Jenkins, 1997)

1945-1979

If we look at the year 1945 as the year in which the development of the main growth in the tourism industry started, we can construct some general explanation concerning to the changes which one can differentiate in the tourism industry.

From the mid-1950s onwards, mainly in the UK, the development of tour operators started changing the character of the industry from individual business activities to more integrated activities. “Hotels, for example, were beginning to see customers as wanting a range of services rather than simply buying accommodation. So hotels began to develop shopping arcades and later to offer secretarial centers in order to increase the spend of guests within the hotel complex. Transport operators, particularly in the airline business, saw the sale of transport services as being integral to a much wider need. Airlines offered insurance and accommodation booking for travelers” (Lickorish, Jenkins, 1997)

From 1950 onwards a combination of factors, such as increase in free time availability, increase in paid holidays, improvement of package tours, and growth in air transport – all combined to offer a wider possible holiday-taking market. This market was different regarding socioeconomic groups from the pre-1950 era.

1980 to current day

By the 1980s several airlines were offering full travel services such as arrangements for holidays, medical services, hiring car, etc.

By 1990 the formation of the tourism industry, especially in the United Kingdom and Europe, was effected by the development of a number of very big companies. “In the USA, American anti-trust laws discouraged, if not prohibited, the development of large integrated companies”. The experience of American in operational tour has been very different from Europe, mainly compared with the United Kingdom (Lickorish, Jenkins, 1997).

Air travel improved even more rapidly. Nevertheless, this is only piece of the story, as nonscheduled traffic (charter services) increased considerably as well. “Making up an estimated 18 per cent of total movement by the 1980s and 50 per cent or more on European routes, where the charter traffic took over the greater part of the holiday movement, as tour operators developed their own services” (Lickorish, Jenkins, 1997)

 

Future

The tourism business is likely to make important help to global economic development in the twenty first century. The cultural trade and understanding that is brought about through tourism is causing a more peaceful and internationalized universal society. Besides contributing to the expansion and renovation of local economies and communities, tourism development is playing an important role in both enhancing education and improving the position of the tourism business aimed at nurturing the next generation of those ready to take on the tourism business.

The Structure of Travel & Tourism Industry

This is the Leiper’s model:

There are 5 key elements of a tourism system

1. Departing Travelers
2. Traveler Generating Region
3. Transit Route Region
4. Tourist Destination Region
5. Returning Travelers

The first is the tourist (the human component), the next 3 components are geographical and organizational and relate to transport, tourist activities and the tourism industry which offers services, goods and facilities for tourists. The last is self explanatory.

And the environment: Economic, Technological, Physical, Political, Socio-cultural, legal, etc.

There are some contemporary influences:

1. Changing actions and motivations of markets
2. Changing patterns of tourist flows
3. Require for planned tourism expansion
4. Force for sustainable tourism expansion
5. Concern for social, cultural and economic impacts of tourism

The influence of local and national governments and international agencies

The position of government is an essential and multipart side of travel and tourism industry, involving policies. State involvement in the trade is a fairly recent practice for central government.

In general the state recognizes that the duties of the public sector must cover such matters as health, safety, fair trading and consumer interests and infrastructure in transport such as roads, railways and ports. These are all matters of direct concern to the resident population. There is a mixed record in the provision of leisure facilities, environmental protection and conservation which includes responsibility for the unique cultural heritage, an important part of Europe’s visitor attractions (Lickorish, Jenkins, 1997).

The state tourism agency, tourist board or government department will have an important role to play in advising on the strategy, offering opportunities to consult and cooperate with a dispersed private sector, and preparing a destination marketing strategy based on an identification of the appropriate markets and their needs and wishes (Lickorish, Jenkins, 1997).

Based on periodic surveys of the government role by the WTO, the OECD and individual countries, the principal functions of a Ministry of Tourism or of agencies under government control can be summarized as:

1. Research, statistics and planning.
2. Marketing.
3. Development of tourism resources.
4. Regulation, including trade regulation.
5. Training and education.
6. Facilitation/liberalization.

Local governments

At the local level the regional or local authority has a role similar to that of the central government and in many ways a more comprehensive and important one. Indeed, in the early days of mass travel stimulated by the growth of the railway network, public sector intervention in tourism was solely at the local level. There were no national tourism organizations.

The growth of large resorts, pioneered in Britain at the main seaside canters, encouraged the development of local tourism administrations to carry out the responsibilities of the host destination (Lickorish, Jenkins, 1997).

International organizations

There are a number of international bodies, both governmental and nongovernmental, with tourism interests. Government bodies reflect the national government’s interest in, and political will regarding, tourism intervention. In the industrialized countries, the tourism priority tends to be low. Because of the wide range of tourism activity the

history and structure of the travel and tourism industry

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