Principles of Hospitality Chapter 2 Travel & Tourism: Partners in Hospitality
Hospitality _______________and tourism make up the world’s __________________. Hospitality Businesses are _____________ or independent from each other, but ___________ because they have an ________________ largest industry separate are related effect on each other
Destinations and facilities can motivate people to travel. Tourists are traveling for pleasure. The tourism industry is concerned with attracting people to an area for its attractions and events.
Marketing Destinations Destinations can be natural Example: beach, Grand Canyon, Pyramids They still need access such as: Roads, air flights, places to stay and eat Other destinations are constructed: Resorts (Disney World), major cities Access is needed here also This is known as INFRASTRUCTURE
Government Role in Marketing Travel Tourism is profitable and good for an economy Government agencies that promote tourism: Tourism offices Destination marketing organizations Convention and Visitor’s Bureaus Their mission is to bring information about their destination to travelers
Role of Private Industry in Marketing Travel Tour packages Frequent Guest Programs Frequent Flyer Programs for Airline Travel Developing the right mix of amenities Do we need technology services? Business travelers need to stay “connected” Tourists might WANT to stay “connected” Some travelers might NOT want to be “connected” Defining the customer – young, old, female, families, singles….
Travel IntermediariesThe “Middleman” It’s a challenge for a hospitality business to reach ALL potential customers Travel Intermediaries work to make travel EASY for travelers They make $ for themselves and the businesses they represent It’s a SERVICE for the travelers
Types of Travel Intermediaries Retail Travel Agents Get commission (% of what they sell) from the hospitality companies Hotels, airlines, rental car agencies Travelers used to call their Travel Agent to plan and book travel Being replaced by on line distribution companies Too easy for the traveler to do it themself
Types of Travel Intermediaries Tour Wholesalers: Designs and puts together travel arrangements All inclusive: airfare, hotel, restaurant, ground transportation (rental car or bus) admission to attractions Sell directly to travelers or to retail travel agents Charter operators: assemble the tour Tour Operator: sell the tour, include a guide Inbound Operators: arrange trips to people visiting the US from other countries
Types of Travel Intermediaries Corporate Travel Managers: Work directly for a corporation, make arrangements for the employees traveling on business (NOT tourism) Incentive Travel: Put together packages and sell them to companies as rewards for their employees Meeting Planner: Makes all plans for travelers to attend an exposition or convention
Why do People Travel? Business Pleasure or Leisure
Business Travel Business Travelers travel to conduct business Little choice of destination Want convenience Travel is somewhat ELASTIC If economy is bad, a company will try to conduct business by phone, or telecommunications Competition for business travelers is fierce They HAVE to travel…will pay more $ Conventions, trade shows, expositions, congress
Leisure Travel Demand is very ELASTIC – if economy is bad, people will not travel More selective or picky on price – want a deal
Leisure Travel Reasons: Visiting friend/relative Opportunity for education (elderhostel, study abroad) Cultural attractions (museums) Nature Recreation Special Events Religion Health(Spas, climate) COMBINATIONS of the above reasons
Image of a Destination Marketing of the Destination is important The Image of the Destination will attract or repel travelers Books, movies, television, photograph, news media, advertising all contribute to image Big City, Wide open Spaces, winter, Summer, even state license plates A traveler visiting a destination for the first time will evaluate the trip based on the image he takes with him the first time he travels there
Perception of Image Functional Image: what is there to do?: Beach, hike, sleep, see shows, gamble, etc. Symbolic Image: what is is it like?: Family, teenagers, young children, singles, old people Is the destination “MY KIND OF PLACE?”
Does a Destination WANT TOURISM? YES! Brings economic gain…. Direct spending: money the travelers spend on restaurants, hotels, souvenirs, admission to attractions, more. Indirect spending: the $ the employees have after being paid to spend on their needs (housing, food, etc.) All contribute to the local economy
Negative Economic Costs Opportunity Costs: an economy might have to give up something to attract tourists. The $ they would have gotten from what they give up is the opportunity cost. Build a convention center, or improve schools? Leakage: the local economy might not have all the goods needed for the tourists, they will have to buy them from yet another economy. The $ is NOT available for the residents….
Other Negatives… Lives and cultures may change Residents might want: Better housing Different clothes, foods, etc. Demonstration effect Resentment of the tourists and their lifestyle Increase in crime, expenses, housing costs, food costs, discrimination (locals get low level jobs, outsiders get managerial jobs) Disruption and Pollution of environment
Other Changes Understanding of different cultures Understanding of historical influences Preservation of ways of life Preservation of environment (ECOTOURISM) No Matter how We look at it….Tourism Industry is BIG and complicated….drives economies and makes a lot of $