This document discusses the role of economics, geography, and marketing in analyzing tourist transport systems. It identifies key economic concepts like demand, supply, elasticity of demand, and price elasticity of demand that are used to examine the tourist transport industry. International organizations like ICAO and IATA influence the growth of tourism and air transport by standardizing regulations, recommending fares, and facilitating air travel. The characteristics of different models of tourism are also outlined based on their transport needs.

2. Name Roll
Khadiza Noor 55
Aaqib Md. Shatil 87
Cynthia Islam 101
Zakia Shabnam Maria 27
Poly Talukder 47

3.  Tourism is multi disciplinary area of study and
there are different components. Leiper (1990)
identified the following elements of tourism
system: tourist, traveler generating region,
tourism destination region, transit routes, travel
& tourism industry.
 Volume of travel is known as "connecting the
tourist generating & destination region by
transport.

4.  Tourist transport system is a frame work that
embodies the entire tourist experience of
travelling on particular form of transport. The
analytical value of such an approach is that it
enables one to understand the over all process
of tourist travel from both supplier's &
purchaser's perspective while identifying the
organizations which influences & regulate
tourist demand.

5.  One objective is to overcome the existing
perception of tourist transport as a passive
element. Rather emphasize transport is a
'service' which is increasingly judged by
consumers, providers in relation to the quality,
standard & level of satisfaction in engenders.
 Three social Sciences that has made direct
contribution to tourism transport are:
1. Economy
2. Geography
3. Marketing

6.  Economics approach the analysis of tourist transport based on two
distinct areas of research
1. Transport economics
2. Tourism economics
 Economics is the study of methods of allocating scarce resources and
distributing the product of these resources.
 Resources
1. Natural
2. Labour
3. Capital
 Collectively these resources constitute the factors of production which
are to produce commodities
1. Goods
2. Services

7.  The total output of all commodities in a country over a
period of time is known as national product
 The way commodities are divided among people has
been examined by economists in terms of the
distribution of income and degree of equality and
efficiency in their distribution.
Economist deal with economic activities in two ways
1. Micro economics
2. Macro economics

8. Firm
Consumers
Production and selling
Demand for goods
Supply of goods
How national income operates
Employment, unemployment
Inflation
GDP and Consumption

9.  Tourist transport systems is based on the analysis of
two important economic elements
1. Demand
2. Supply
 Transport economists examined the demand for
different moods of travel and competition between such
moods in relation to price, speed, convenience and
reliability. The demand for tourist transport is also
characterized by:
1. Instantaneous and unpredictable in nature
2. Variability in demand
3. Non-price items

10. Income has an important effect on tourism
demand. Economists measure the impact using
a term known as the “Elasticity of demand’’
Elasticity of Demand = % change in tourism
demand/% change in disposable income
 Demand for luxury items such as tourism and
pleasure travel is variable or elastic
 To assess the impact of price on the demand for
tourism, economists examined the price
elasticity of demand

11. • An inverse relation between price and demand
exists in price elasticity of demand
• Price elasticity of demand = Elasticity of demand/%
change in tourism product
• Contributory factors which is influence the demand
for tourism include the impact of tourist taxation, the
amount of holiday available to the tourist, culture
preference, weather etc

12. The development of transport and tourism
has taken place in six groups

20.  The great advantage of air transport is speed
 It gives two types of service-
1)Domestic Service
2)International Service
 The service they provides are-
1)First class
2Business class
3)Economy class
 World tourism is dependent on it

21.  The principle sectors on which tourist traffic has
developed are
a) Long distance
Trans North Atlantic
Europe –Asia/Australia
Europe – Africa
Europe – Latin America/ Caribbean
b) Medium distance – Europe - Mediterranean basin
Price plays a vital role for tourist travel but not that much
for business travel

22.  These two categories correspond to different markets and there basic
characteristics are briefly as follows:
a) Fare for transport alone
i) Scheduled flights :
1. lowest individual public fare is excursion fare
2. Some issues are considered for promotional fare :
-validity limited to certain period of time
-reservation and payment several weeks in
advance
-stop-over prohibited or limited in number
only partial refund in case of cancellation
ii) Charter Flights :
1) If the frequency of operation is very high
2) tourist population of a generating country is very well
acquainted

23. b) Tourist product on ITX and ITC:
1) tourists purchase full services before departure with air ticket
2)Service depends on
i) accommodation ranging from Deluxe to ordinary category
ii) the length of stay and recreational activities.
3)The cost of air transport depends on the
i) distance
ii) the fares applied on the route
iii) the type of service
iv) scheduled or charter
v) the demand
vi)carrier
4)The method of marketing influences the price on the basis of the
i)size and the structure of the market
ii) the formula offered
iii)the quality of the product
iv) the sales method.

24. 5)The share of the air transport in the cost of an IT can rise
from 25% - 30 % to 50% - 55% depending on
i) whether the travel is medium or long distance.
ii) in winter or summer period
iii) whether the hotels are deluxe or medium
iv) whether the accommodation is with full board or
half board
6) The share of the transport cost in the total price is lower
for a stay of several weeks than for a limited stay

25.  Run all year usually set times from a limited number of
airline
 It's 'frequency' is registered with various ATC's etc. and
it always departs on that schedule, irrespective of how
many passengers it has aboard
 Only air fare and ground service cost are needed to fly.
So the fare is not high.
 are those used by tour operators during the holiday
season they may be owned by the TO or seats
purchased from an external source
 it's 'frequency' is also initially registered but it can be
changed, canceled or consolidated at a few hours notice
dependent on it's load factor and the operator's ability to
fly it profitably
 One nights accommodation must be included in the price.
So the fare is higher than scheduled flight

26.  Essentially interdependent sector
 Three patterns reflect their needs of air transport
1) Resort tourism
2) Holiday tourism
3) Itinerant Tourism
Descriptions are given below:
1) Resort Tourism:
a) Traveler visits only the destination at which he is going to stay
without making any further major trips until he returns to his point
of origin
b) exploitation of single tourism resource
c) this tourism occurs for reasons other than recreations.
d) Demand of volume is high but price is low

27. e) Its development depends on two factors:
i) a rise in the living standards of the population of
Europe and North America is the source of the traffic.
ii) the development of a commercial aviation system
capable of carrying a heavy volume of traffic at low price.
f) charter flights are playing the most important role of this tourism
2) Holiday tourism:
a) travel to different areas
b) tourist product may be homogenous or very contrasting
products.
c) popular in Europe, Latin America and Asia.
d) travelling most distant destination of the same region having an above
minimum hotel infrastructure at all points in the route.
e) based on Air maritime or ground transport.

28. 3) Itinerant Tourism:
a) For selective clientele with medium or high income
b) may be resort tourism with high quality service
c) involve several means of transport
d) less clear cut geographical distribution than other two
e) associated with charter flights but most frequently it uses
scheduled service as means of transport
f) it may be backed up by third level aircraft or helicopters.
g) lack of flexibility to variations in the price of ticket.
There is a fourth type o model
a) not for leisure purpose
b) involves a stay lasting more than 24 hours.
c) travel for business reason
d) different and heterogeneous
d) lack of adaptation in variation of fares.

29.  To meet the requirements of this model of tourism which includes
travel and accommodation of large number of traveler air transport
must have following characteristics :
A) a low price of transport, since the price of the tourist product as
a whole must be reasonable
B) utilization of large capacity transport with a view to minimizing
large operating cost, obtaining high load factors and avoiding the
risk of permanent excess of offer.
C) large capacity airport installation permitting heavy movement of
aircraft, passengers and baggage at peak periods while avoiding
long delays.
D) scheduled delays of high frequency or supplemented by an
appropriate system of non-scheduled flights.

30.  According to WTO, the Civil Aviation sector is not
capable of providing services called for by tourism.
 There exists an unfavorable fare situation vis-à-vis
regions
 A fare policy really based on lower possible operating
cost has to be established
 Higher operating cost causes unfavorable fare condition
 Air Transport sector must be regarded as a public
service
 Private sector must be assisted

31.  A large number of international agencies influence the growth of
tourism, two main organizations are-
a) International Civil Aviation Organization (ICAO) &
b) International Air transport Association (IATA)
 ICAO
-After 1st world war, international civil aviation began to grow quickly.
- In 1919, International Commission for air navigation was set up to
oversee matters connected with ICAO.
-ICAO standardized statistics on air traffic.
- 2nd world war made the use of air transport more rapid. In 1944, US
and it's 55 allies met for meeting in November in Chicago as they were
anxious about the principle of complete freedom of air and its outcome
was the convention on International Civil Aviation.
– Chicago convention adopted 96 articles and established the
privileges and restrictions of all contracting states.

32.  ICAO is governed by
a council,
 ICAO has an
assembly which is
the sovereign body
 most of the work of
the assembly is
divided between an
executive committee
 Council is elected by
assembly for three
years
 council elects the
president of the
organization
 ICAO works in a
close collaboration
with U.N, WMO,
ITAA

33.  provides better facilities for air transport,
especially better navigation and landing
facilities.
 Facilitation measures to reduce paper work at
airports or air crafts.
 Development of universal law; studies of the
impact of civil aviation on environment
 Helps to train technicians and administrators to
run their air service.
 publishes wide variety of technical, economic
and legal publications.

34.  IATA is an association run by airlines.
 IATA exists to serve the needs of the airlines
and consumers.
 The chief importance of the IATA is that it is
the body which discusses and recommends,
through separate conferences for each area,
the fares to be charged on all the
international routes.

35.  To provide safe, regular and economical air
transport for the benefit of the people of the
world to foster air commerce and to study the
problems connected therewith.
 to provide means of collaboration among the air
transport enterprises engaged directly or
indirectly in international air transport service.
 to cooperate with the international civil
organization and other international
organizations.