This document describes various tourism products and services. It defines tangible vs intangible, separable vs inseparable, homogeneous vs heterogeneous, and stored vs incapable of being stored. It also discusses the differences between products and services. The main types of tourism products and services are packages, independent, and all-inclusive holidays. Tour operators assemble and market tourism packages, while travel agents sell products to customers. Supporting facilities for tourism include transportation infrastructure like roads and airports, as well as communication networks. Both public and private sectors fund tourism infrastructure and facilities.

1. Travel and tourism
products and services
Unit 4 – Part 1

2. 4.1 Identify and describe tourism
products and services

3. Describing TNT products
and services

4. Describing TNT products
and services
• Tangible vs. Intangible
• Separable vs. Inseparable
• Homogeneous vs. Heterogeneous
• Stored vs. incapable of being stored

5. tangible vs. intangible

6. TANGIBLE
• capable of being touched
• discernible by the touch
• material or substantial.
INTANGIBLE
• not tangible
• incapable of being perceived by the
sense of touch
• it's not physical, cannot be "possessed,"

7. separable vs. inseparable

8. homogeneous vs. heterogeneous

9. HOMOGENEOUS
• of the same kind or nature
• essentially alike.
HETEROGENEOUS
• quality can vary of time of day (people get
tired), experience, attitude, knowledge, style,
etc.
• diverse, varied, miscellaneous, assorted,
mixed, different, differing, motley;

10. stored vs.
incapable of being stored

11. Perishability
• You can't store services for future use.
When a client misses an appointment
with his attorney, that time can never
be recaptured.
• Empty hotel rooms
• Unsold theater tickets, airline seats --
the value has vanished.

12. Business links
Inter-relationship between travel and
transport, catering and
accommodation, attractions, leisure
and recreation and business facilities

13. Products vs. Service
A service is intangible, that is you cannot
touch it, such as a haircut or a massage. You
cannot touch the act of giving a massage.
A product, on the other hand, is tangible. It
can be touched. For example, if buying
scissors to cut your own hair, the scissors
would be the product. Products are also
known as goods.

14. Products vs. Service
• "Products" are tangible items - furniture,
appliances, electronic devices, etc. The
purchaser can see them and use them.
• "Services" are intangible items - legal
counsel, medical advice, repair work. The
purchaser cannot see them and is often
used by them.

15. Products vs. Service
• Products are items you can buy and take
with you.
• Services are when you pay someone to do
something but you don't end up with an item
you can keep. Paying a caterer for a party
would include both. You'd have the food that
was prepared as products and the cooking
and serving of the food as services.

16. Products vs. Service
• a service is something someone can do
for money Ex: workers
• a product is an item that can be sold or
traded Ex: ipods, x boxes, furniture,
others

17. Types of Products and
Services
Refer to pages 89-91 of your book

18. 3 Main types of Tourism
products and services
• Package
• Independent
• All-inclusive

19. Package Holidays

20. Package Holidays
Flights + accommodation + airport
transfers at destination.
Travel Agency

21. Package Holidays

22. Independent Holiday

23. Independent Holiday
DIY
Traveler
most of the people who do not take
vacation packages are younger,
single individuals.

24. All-inclusive Holidays

25. All-inclusive Holidays
all meals and
locally produced
drinks are
included
Married people with families are the main users
of vacation packages and especially all inclusive
vacation packages.

26. All Inclusive (AI)
means all meals and locally produced
drinks are included (until midnight, when a
cash bar system may operate. This may
vary depending on the accommodation).
You may also be entitled to entertainment
and non-motorised water sports laid on by
your hotel.

27. What does board basis
mean?
Board basis simply means the sort of
dining arrangements that you have
selected for your holiday.

28. Room Only (RO)
means that no meals will be included in
the price you have paid for your
accommodation/holiday package.

29. Self Catering (SC)
means that no meals are included in the
cost of your accommodation/holiday
package, but you will be provided with
catering facilities in your accommodation
to cook light meals.

30. Bed and Breakfast (BB)
means that breakfast is included in the
price you have paid for your
accommodation/holiday package.

31. Half Board (HB)
means that your breakfast and evening
meal is included in the price you have paid
for your accommodation/holiday package.
In some cases you can choose to receive
lunch instead of breakfast - the hotel will
confirm this upon arrival.

32. Full Board (FB)
means that breakfast, lunch and evening
meals are included in the price you have
paid for your accommodation/holiday
package.

33. Ancillary
– what does it mean?
providing necessary support to the
primary activities or operation of an
organization, institution, industry, or
system

34. Ancillary services
• guiding
• currency exchange
• translation services
• insurance
• marketing services

35. Guiding services

36. Currency exchange
(bureaux de change)

37. 4 Exchange Rates
1-2 Buy and sell rate for
traveller’s check and
3-4 Buy and sell rate for notes

38. Translation services

39. Insurance services

40. Insurance services
The most common risks that • Lost, stolen or damaged
are covered by travel baggage, personal effects or
insurance are: travel documents
• Medical/dental expenses • Delayed baggage (and
emergency replacement of
• Emergency essential items)
evacuation/repatriation of • Legal assistance
remains
• Car rental collision coverage
• Return of a minor child • Sports with an element of risk
• Trip (e.g. skiing, scuba diving)
cancellation/interruption • Travel to high risk countries
• Accidental death, injury or (e.g. due to war, natural
disablement benefit disasters or acts of terrorism)
• Overseas funeral • Kidnap and ransom
expenses insurance
• Delayed departure, missed
connection

41. 4.2
Explore the roles of
tour operators and
travel agents

42. Tourism Chain
of Distribution
• “All the goods and services that go into
the delivery of tourism products to
consumers. It includes all suppliers of
good and services whether or not they
are directly contracted
• Tourism supply chains involve many
components.” (Tapper and Font, 2004)

43. Private Sector Producers Public Sector
Support Services Support Services
- Travel guides -National tourist
- Travel insurance & Attractions boards (NTBs)
financial services Natural: - Regional tourist
- Travel trade press boards (RTBs)
- Marketing Support -Mountains - Tourists information
- Private education & Carriers centres (TICs)
-Lakes
training -Air - Public education &
-Rivers
- Private ports -Sea training
-Beaches
-Rail - Public ports
-Road - Visas and passport
Constructed:
-Theme parks offices
Accommodation
-Ancient
- Hotels
monuments
- Guest houses
-Activity centres
- Chalets
- Villas
- Apartments
- Camp sites
- Holiday centres
- B&Bs

44. Tour Operators
Direct
Travel Agents booking
Tourists

45. Tour operators
• Wholesalers of tourism products in that
they assemble the component parts of a
holiday
• The buy in bulk and break this bulk
down into separate packages which are
then marketed to the consumer
• Can be small independent or chain
• Packages have at least 2 elements
(transport and accommodation)

46. PACKAGE
HOLIDAY

47. Types of Tour Operators
1. Outbound
2. Inbound
3. Domestic
4. Specialist

48. Outbound tour operators
• Outbound tour operators develop and sell holidays
for British people wanting to travel abroad
• Some are very big companies that sell millions of
holidays every year, the so-called‘mass-
market’ tour operators, while others are small
and medium-sized enterprises (SMEs) employing
just a few people
• TUI UK/Thomson and Thomas Cook are the UK’s
biggest outbound tour operators – together they
arrange around 11 million package holidays every
year / Thomson, Airtours, Kuoni, Cosmos

49. Inbound or
incoming operators
• Inbound, or incoming, UK tourism is concerned
with meeting the needs of the increasing numbers
of overseas visitors who choose to visit Britain
• A travel agent in the USA, for example, who has a
client wanting to spend a week in Scotland, has to
contact a tour operator to make all the
arrangements
• Many incoming tour operators in the UK are
members of Ukinbound
• British Heritage and Evan Tours

50. Domestic tour operators
• Domestic tour operators are companies
that specialise in holidays in the UK for
British people
• They offer a very wide range of holiday
products, from packages in holiday
centres to coach holidays in all parts of
Britain
• Many domestic tour operators deal
directly with their customers rather than
selling through travel agents

51. Specialist tour operators
These are holiday companies that
specialise in a particular type of holiday
or destinations
Examples:
• Golfing trips
• Expeditions to the Himalayas
• Holidays for over 50s
• Holidays in remote locations

52. Tour operators’ products

53. Concept: Economies of scale
As the tourist operators buy
in bulk from the providers -
the better price they pay.
They are able to obtain
reduced rates for airline
seats and hotel
accommodation

54. Method of Marketing
1. Direct Selling – press,
magazines, TV, brochures,
Internet, telephone etc.
2. Travel Agencies

55. Trade Associations
Membership to an organization is
designed not only to protect their
members but also to guarantee
certain standards of performance
which can be expected by clients

56. AITO – Association of
Independent Tour Operators
Dedicated to providing a quality
product, personal service and
choice to the consumer…
(www.aito.co.uk)

57. BITOA – British Incoming
Tour Operators Association
Independent organization aiming to
provide a forum for the exchange of
information and ideas and to follow
an accepted code of practice when
dealing with other bodies in the UK
with a common interest in tourism
matters.

59. Other functions of these
associations
1. Consumer protection by monitoring
members
2. Support any tour operator who fails to
provide the service
3. Other consumer protection concern areas
• Health and safety in accommodations
• Cruise ships and aircrafts
• Quality of bathing water and other environmental issues
• Protection of payments made by customers whether in
deposits or final payment

60. Travel Agencies
• “A travel agent or travel agency is a shop
or office where you can go to arrange a
holiday or journey”
(Collins English Dictionary)
• Retail sector of tourism industry – they sell
the products of the providers. For this, they
receive commission

61. Commission Rate in the UK
• Package holidays 10%
• Airline tickets 7.5 – 9 %
• Ferry bookings 9%
• Traveller’s cheques 1%
• Travel insurance 35-40%

62. Types of Travel Agencies
Type Description Example
Multiple • Found nationally Thomas
• Chain of branches Cook
• Lots of products and
services offered
Independent • One shop
• Limited number of
services
• Possibly family-
owned/sole-trader
business

63. TNT Industry Scope
of Operation

64. Tourism Industry
Vertical (backward)
Integration integration
-Accommodation
-Transport
Horizontal
integration
Private
Tourism
MERGER Organisation
TAKEOVER
Vertical (forward)
integration
- Retail: travel
agencies, website

65. Vertical Integration
one organisation buys an element at another level
Backward Forward/Downward
• Tour operator
• Tour operator
buys/owns elements
buying/creating own
of package holiday
travel agencies
• Purchasing an airline,
• Internet allowed online
hotel group etc
access and purchase
• Thomson
• Thomas Cook

66. Horizontal Integration
two companies offering the same products merge, or one
takes over another
Merger Takeover
• Fusing of two • One company buys
companies to become another company and
one takes it over
• Two airlines sharing • One airline buys
the same routes another

67. 4.3
Describe support facilities
for travel and tourism

68. Concept of infrastructure
The provision of
1. utilities such as drainage, water
supply
2. power cables
3. telecommunication links
4. Roads
5. Ports and/or airports

69. Roads

70. Airports

71. Railroads

72. Communication

73. All these
require
money…

74. Funding
• Basic infrastructures is generally provided
by public bodies, whether national or local
governments or bodies reporting to
government departments such as tourism
boards.
• The funds are provided through taxation
• Funding from external sources such as
WTO or United Nations Development
Programme

75. Funding
The provision of facilities such as
accommodation, attractions, catering and
entertainment tends to be funded by
private organizations

76. Regulatory controls – why is
there a need?
Without planning and regulatory controls, it
is possible that a destination may became
overcrowded or over-developed, thus
spoiling the initial attraction of the place

77. Infrastructure revisited
The development of infrastructure will
influence the development of tourism in
an area, and the two are inseparably
linked – the one will not happen without
the other being developed or in place.
Infrastructure = tourism development

78. End of Part 1