This document provides an introduction to the UK travel and tourism industry. It defines key terms like travel, tourism, and tourists. It also outlines the different types of tourism including inbound, outbound, and domestic tourism. The document discusses the various types of tourists and organizations involved in the industry, such as airlines, airports, accommodation providers, attractions, tour operators, travel agents, and government/tourist boards. It provides examples of major players in each sector and explains concepts like direct sales, integration, and distribution channels.

1. Introduction to the
UK Travel &
Tourism Industry

2. What is Travel and
Tourism??
What do you think the following mean?
Travel
Being transported to one destination to another
Tourism
Provision of services to tourists
A tourist
Someone who travels from their environment to
another for more than 24h.

3. Different types of Tourism
Inbound Tourism
Overseas tourists visiting the UK
e.g. Singh family from UAE visiting London for a week
In 2013 29.6 million visitors came to the UK from other
countries, spending £16.7 billion!!!
Outbound Tourism
UK residents going on holiday aboard
e.g. Sarah and John from Wales going to Greece
Domestic Tourism
UK residents going on holiday in the UK
e.g. The Ernest family from Southampton going to
Edinburgh

4. Different types of Tourists
Leisure Tourists
People generally going on holiday. Could include,
single people, groups, families, people with special needs,
educational etc.
Business Tourists
Main purpose of trip is for business e.g. attending a
conference or meeting
Visiting Friends and Relatives (VFR)
The main purpose of trip is to visit friends and
relatives but they still undertake normal activities e.g.
visiting attractions

5. Organisations that operate in
Travel and Tourism
In your groups, can you name the many
types of organisation that are part of the
UK Travel and Tourism Industry???

6. Different types of organisations
• Public sector - Organisations run/owned by
the government for profit (e.g. Visit Britain)
• Private sector – Organisations that are run
by individuals and companies for profit (to
make money). They are not owned or
operated by the government (e.g. Virgin
Atlantic)
• Voluntary sector – Organisation that are run
by individuals and companies not for profit.
May also be run/funded by government
(Tourism Concern)

7. Different types of organisations
• Local – Organisations operating ‘locally’, in
your town or city (e.g. Fareham or
Portsmouth)
• Regional – Organisations operating within you
county (e.g. Hampshire) or area of UK (e.g.
South East)
• National – Organisational that operate within
the UK
• International – Organisations that operate
overseas

8. Call Centre

10. Transport – the many forms

11. Airports
• Heathrow Airport Holders (HAH) is the major
organisation in airport ownership. E.g. Southampton,
Aberdeen, Southampton
• Running an airport is complex but profitable. It provides
products and services for groups of people and
businesses:
– Airlines provided with infrastructure and services to operate
flights
– Customers provided with facilities e.g. shops
– Other businesses provided with location where they can operate
from e.g. car hire
How many UK airports can you name???

12. Airlines
• All UK airlines are privately owned
• British Airways is one of the world’s most
famous
• Largest in UK and flies to more than 200
destinations
• It has 4 different categories of cabin and its
main bases are at Heathrow and Gatwick
How many airlines can you name???

13. Airlines – 2 different types
Scheduled
•Run to a regular timetable
like a bus
•This is only changed for
winter and summer seasons
•Flights depart even if
not all seats are booked
•E.g. Virgin Atlantic, BA
•Can also be a low cost or
budget airline
•They aim to keeps costs as
low as possible by charging
for extras e.g. luggage
•E.g. Ryanair, Easyjet
Charter
•Usually contracted for a season
and run to a timetable set my
tour operator
•It’s the flight that forms part
of the package holiday
•They will try to fill every single
seat and may even cancel flights
if they are 75% full
•Major tour operators have their
own airlines e.g. Thomson
•May use other airlines e.g.
Monarch

14. Accommodation
• Many different types, serviced (meals are offered and
your room cleaned), or non-serviced you look after
yourself e.g. do your own cleaning)
• Hotels may be independently owned or part of a large
chain. Chains tend to be more impersonal, but provide
consistency of quality throughout the world
• Offer many product and services, catering for
different customer types e.g. leisure and business
• For example a business guest may require WiFi access
and conference facilities, where as a
leisure guest might prefer a spa and a
child’s play area.

15. Accommodation
• Guest accommodation includes bed and breakfast and
guesthouses, which is generally in a large converted
house
• A B&B would be fully serviced whereas a guest house
would not offer meals
• Also have self catering accommodation such as lodges,
caravans, tents, apartments, villas and cottages
How many hotels in the local area can you think
of???

16. Attractions
• Natural attractions – Not built just formed! E.g. coastlines,
mountains, woodland. Often they are protected, for example
National Parks and AONB (areas of outstanding natural
beauty).
• Heritage attractions – Not all created for tourism
originally. E.g. historic houses, castles, museums, historic
dockyard. Heritage attractions are often looked after and
run by English Heritage and The National Trust.
• Purpose built attractions – Built purely for tourism. E.g.
theme parks, museums, experiences (e.g. Madam Tussauds).
• Events – E.g. Notting Hill Carnival, Isle of Wight Festival,
Glastonbury Festival, Boat show, Ideal Home Exhibition.

17. Ancillary Services
This refers to organisations that do not have a
direct role in travel and tourism, but play a
supporting role, perhaps offering related
products and services.
Examples include:
• Insurance companies providing holiday insurance
• Foreign exchange bureaus
• Car parks
• Shops
• Restaurants, cafes

19. Tour Operators
Role to put together all different components that
make up a holiday and sell them as a package to
consumer.
They make contracts with hoteliers, airlines and
other transport companies.
Domestic tour operators – Only sell package holidays
within the UK
Outbound tour operators – Sell packages from the UK to
go abroad
Inbound tour operators – Sell packages to come to the UK

20. What is a package holiday???
Accommodation + Transport = Package Holiday
• Sold for an inclusive price
• Be offered for sale
• Must include transport and accommodation
• May also include services including holiday
representative, transfers, excursions etc.

21. Tour Operators
Mass Market
• Considered ‘mass market’ as they sell similar package
holidays that appeal to majority of holidays makers
• Major outbound tour operators include Thomson, First
Choice and Thomas Cook
• ‘Big Two’ dominate the market and own many of the
UK’s most popular tour operators, travel agencies etc
• Also sell ancillary products and services to increase
revenue e.g. car hire, insurance, foreign currency and
excursions

22. Tour Operators
Specialist
• Becoming more popular as people want more
than the usual package holiday
• They tend to specialise in a particular thing like
a destination or product e.g. Greece or diving
• They respond well to trends e.g. tailor made
holidays
• An example could be Anatolian who specialise in
holidays to Turkey

23. Call Centre

24. Travel Agents
• Role is to give advice and information, and sell and
administer bookings for a number of tour operators,
accommodation and transport providers
• Also sell flights, ferry bookings, car hire, insurance,
foreign currency, excursions and accommodation
(ancillary products and services)
• Can operate through the following:
• Retail shops
• Call centre
• Over the internet

25. Travel Agents
Leisure Travel Agents
• Most are part of a multiple chain and dominate market
e.g. Thomas Cook and Thomsons
• These can be linked to tour operators and may
prioritise their own company’s products
• Been slight reduction in number of agency branches in
past few years.
Why is this????
• Ideally located on high street or in
shopping centres for convenience, to attract
customer attention and passing trade

26. Travel Agents
Business Travel Agents
• Specialise in the business market
• Aim to handle all travel arrangements for large
companies http://www.waytetravel.co.uk/
• ‘Implants’ are travel agents located within another
business. They set up office within a company so that
they are on hand to deal with travel requirements of
company’s personnel

27. Direct Sale
What is direct sale???
Selling direct to the customer on the internet or over the
telephone.
This can also mean ‘missing out the middle man’?!?

28. Chain of distribution
Principles
Hotels, airlines,
transfer companies,
attractions
Wholesaler
Tour operator
Retailer
Travel agent
Customer
E.g. Thomas Cook
airline
E.g. Thomas Cook tour
operator
E.g. Thomas Cook travel
agent
Direct Sale
???

29. Vertical integration
When two or more organisations owned by the
same parent company are at different levels
of the chain of distribution
Airline
Tour operator
Travel agent
Fly Thomas
Cook
Thomas Cook
Thomas Cook
Travel Agency

30. Horizontal integration
When two or more organisations owned by the same
parent company are at the same level of
distribution
tour operator tour operator tour operator
Thomas Cook Airtours Club 18-30

31. Direct Sale
On-line
• Websites are most up to date means of distributing
travel and tourism products
• May only operate over the internet, do not have shops
on the high street www.travelsupermarket.com
• All major tour operators have websites where you can
book

32. Direct Sell
Call Centres
• Increasingly people prefer to book over the phone and
internet
• Some call centres are tour operator or airline owned
and sell their own products and service
• Some are not owned by a tour operator but just sell
their products and services http://www.icelolly.com/
• Call centres rely on high staff productivity to be
successful. They motivate staff through incentives such
as bonuses on sales targets reached
• Call answering time, call durations, sales
and complaint ratios are closely monitored

34. Government & Tourist Boards
What is a tourist board?
An official organisation that encourages people
to visit an area, city, or country, and that
provides information about travel, places of
interest, where to stay etc.
http://dictionary.cambridge.org/dictionary/business-english/tourist-board

35. Government & Tourist Boards
Government Department
Department for Culture, Media and Sport
Department for Transport
Department for Children, Schools and Families
Department for the Environment, Food and Rural Affairs
UK Tourist Board
VisitBritain
National Tourist Boards
Enjoy England Visit Wales Visit Scotland Discover
Northern Ireland
Local Tourist Boards
Visit Hampshire Visit Portsmouth
TIC’s (Tourist Information Centres)

36. Trade Associations & Regulatory Bodies
An association of people or
companies in the travel and
tourism industry. You can become
a member and it is organised to
promote common interests
An authority who exercise power
over areas of the travel and
tourism industry. They may issue
licenses and control how
organisations operate.
TASK - Who are they and what do they do???
• AITO – Association of Independent Tour Operators
• ABTA – Association of British Travel Agents
• CAA – Civil Aviation Authority