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Credit value: 10

Learning outcomesAfter completing this unit you should:

1 know the travel and tourism component industries and their organisations

2 understand the role of travel and tourism organisations and their interrelationships

3 know the developments that have shaped the present day travel and tourism sector

4 understand how trends and factors are currently affecting the travel and tourism sector.

The travel and tourism sector is dynamic, exciting and provides a challenging working environment. If you’re reading this book, it’s likelythat you’re considering a career in travel and tourism and that you’re beginning your studies of the sector.

This unit aims to give you a sound introduction to travel and tourism so that you gain anoverview of the various components and how they link together. You will also study theroles and responsibilities of travel and tourism organisations within the sector.

You will learn about the development of travel and tourism, particularly from the 1960sto the present day. You will find out how changes in demand, new travel and tourismproducts and changes in the distribution of products have affected the sector.

You will also look at the factors which currently affect the travel and tourism sector andthe effects on development.

Investigating the travel and tourism sector

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BTEC’s own resources

Assessment and grading criteria This table shows you what you must do in order to achieve a pass, merit or distinction grade, and where you can find activities in this book to help you.

To achieve a pass grade the evidence must show that the learner is able to:

To achieve a merit grade the evidence must show that, in addition to the pass criteria, the learner is able to:

To achieve a distinction grade the evidence must show that, in addition to the pass and merit criteria, the learner is able to:

P1 describe the travel and tourism component industries and provide examples of domestic, inbound and outbound organisations within themSee Assessment activity 1.1, page xx

M1 explain the roles of different organisations within travel and tourism component industries and how they interrelateSee Assessment activity 1.1, page xx

D1 analyse the importance of interrelationships within one travel and tourism organisationSee Assessment activity 1.1, page xx

P2 describe the roles of different travel and tourism organisationsSee Assessment activity 1.1, page xx

P3 review the different types of interrelationships and provide examplesSee Assessment activity 1.1, page xx

P4 summarise key developments (from the 1960s onwards) that have shaped the present day travel and tourism sectorSee Assessment activity 1.2, page xx

M2 explain how developments, trends and factors are currently having a significant effect on the travel and tourism sectorSee Assessment activity 1.2, page xx

D2 analyse how travel and tourism organisations are responding to changing trends and factors See Assessment activity 1.2, page xx

P5 review the trends and factors that are currently affecting the travel and tourism sectorSee Assessment activity 1.2, page xx

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Unit 1 Investigating the travel and tourism sector

This was the first unit we studied and it made me realise how many

different organisations and industries there are in travel and tourism.

I had to get used to working with my group at the same time as all this

new information was coming at me, but I found it easier when we started our

assessment and we began to work together.

I spent a whole afternoon working out what was on the Visit Britain website but I

found lots of useful information. I had to go elsewhere for the developments so I used

textbooks for these. I also found that the Thomas Cook website had historic milestones.

We had to present our information in a lively way as we were going to take it on the road

to three schools. I am quite good at drawing so I drew a timeline for developments with

illustrations of planes, cruise ships and so on. Everything was beautifully labelled and we

had little presentations that we shared to go with the timeline.

Our tutor had a reading area in our base room with trade papers and all the Sunday

papers so that we got used to looking at the press to see what had happened to affect

travel and tourism.

Over to you!1 What resources do you think you will be able to use for your assessments?

2 What newspapers do you regularly access?

3 Think about the kind of presentation you would like to do.

How you will be assessedThis unit sets the scene for all other units in the qualification. Although you might work in a group, you must have evidence of individual work covering all the assessment criteria. You will be assessed on your knowledge of the different components of the sector, their roles and how they interlink. You will show that you know the developments that have shaped the sector and understand the key factors and trends and their effect on travel and tourism.

Mario, 18-year old BTEC National learner

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BTEC’s own resources

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1 Know the travel and tourism component industries and their organisations

1.1 Types of tourismBefore you start looking at the components of theBefore you start looking at the components of

sector there are some important terms to understand. sector there are some important terms to unde

Domestic tourismDomestic tourism relates to people who are travelling Domestic tourism relates to people w

within their own country for tourism purposes. People within their own country for tourism purp

on day trips are not officially tourists as they are not on day trips are not officially tourists as t

staying away from home. Statistics consider tourists to staying away from home. Statistics

be people who stay away for at least one night.be people who stay away for at least

However, as day trippers spend a lot of money in theHowever, as day trippers spend a lot o

tourism sector, particularly on travel and in the visitortourism sector, particularly on trave

attractions sector, it is important to measure the value attractions sector, it is important

of their spending. In England, this is measured in the of their spending. In England, th

UK Tourism Survey which indicated that day visitors UK Tourism Survey which indicate

spent almost £40 billion in 2008.spent almost £40 billion in 200

Inbound tourismInbound tourism measures those people coming in to Inbound tourism measures thos

visit a country which is not their country of residence, visit a country which is not th

for the purposes of tourism. If a tourist comes from the for the purposes of tourism. I

USA to the UK, then they are inbound to the UK. This USA to the UK, then they are i

also means that they are an outbound tourist from their also means that they are an

own country.own country.

Outbound tourism Generally, when we use the term outbound tourism in

the UK we are referring to UK residents travelling out

of the UK. For example, you are an outbound tourist

from the UK if you go to Spain on holiday.

Types of touristThere are many types of tourists, but for statistical

purposes they are categorised according to their

purpose of travel, broadly as follows:

leisure

business

visiting friends and relatives (VFR).

Leisure travel includes travel for holidays, cultural

events, recreation, sports, religion and study.

Business travel includes all travel for business reasons,

such as meetings, conferences and exhibitions. Usually

business travellers have their expenses paid by their

company, which can make a difference to the services

they choose or have chosen on their behalf.

VFR accounts for many trips, particularly within the UK.

Tourism is big business!

Tourism is the provision of services to tourists. Everything that tourists do while

they are away is considered part of the travel and tourism sector. Tourism is a

significant contributor to the UK economy; many businesses depend on tourism,

directly or indirectly.

When we think about travel and tourism, we tend to think of national organisations like

Thomson and Thomas Cook or attractions such as major theme parks. However, many

businesses in the sector are very small such as bed and breakfast accommodation or

small visitor attractions. The sector is a major source of employment and contributes

greatly to the UK economy. Jobs are also created indirectly by travel and tourism, for

example, in construction when a new hotel is built.

How many people do you know who work in travel and tourism?

What kinds of jobs do they do?

Set off

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Unit 1 Investigating the travel and tourism sector

5

Activity: Types of touristStudy each of the examples below. What kind of

tourists are they? Note that some examples might fit

into more than one category.

Example Type of tourist

Marianne is taking a holiday

in the UK. She lives in

Austria.

Raj is going on holiday to

Bournemouth. He lives in

Leicester.

Year 11 at Chichester Village

College are going to visit

Leeds Castle for the day.

Sheena and Donald are

going to Madrid for a

weekend break. They live in

Glasgow.

Mary is a sales director.

She is going to a sales

conference in Barcelona.

The Patel family are going

on holiday to Disneyland,

Paris.

Jerry goes to visit his father

in Dublin every Christmas.

Mario is visiting the UK

from Spain to undertake a

language course.

1.2 Travel and tourism component industriesBy components of travel and tourism we mean

the different parts of the sector that provide travel

and tourism products and services. None of these

components is able to work in isolation. Each relies on

one or more of the other component parts to be able

to operate.

As you study each of the components you will meet

some examples of organisations, their roles and the

products and services they provide.

Travel and tourismsector

Visitor attractions

Accommodation

Transport

Travel agentsTourism

development andpromotion

Tour operations

Ancillary services

Figure 1.1: Components of the travel and tourism sector

AccommodationThere are many different types of accommodation

available in the travel and tourism industry. Remember

that accommodation can be serviced (which means that

meals are on offer and your room will be cleaned for you)

or it can be non-serviced (where you look after yourself

and do your own cleaning, shopping and cooking).

Hotels

Hotels may be independently owned or part of large

chains. The chains tend to be more impersonal, but

they do provide consistency of quality throughout the

world. For example, if you were to stay in a Mercure

Hotel in London or in Paris, the room would offer

exactly the same facilities, and often the layout is

exactly the same.

Hotels offer many products and services, catering

for different customers. The prestigious and more

expensive hotels, like Sofitel, offer greater luxury.

Budget hotels such as Premier Inn and Travelodge offer

good value for money.

In addition, hotels cater for both business and leisure

customers so they need a range of products to suit

each type. Conference customers may come for just a

day and will need different services from the residents.

Activity: Local hotelsList the hotels in your town or local area. Find out

which hotels belong to which group. Are there any

independent hotels?

Choose one of the hotels in your area. Describe how the

hotel appeals to different tourists.

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BTEC’s own resources

tionGuest accommodation

nd breakfast accommodation,This includes bed and breakfast accommodation,

mhouses. Homeowners whoguesthouses and farmhouses. Homeowners who

on the extra space they might have wish to capitalise on the extra space they might have

n this type of accommodation. Many available often run this type of accommodation. Many

t charming and an opportunity to tourists consider it charming and an opportunity to

cultureexperience local culture.

Why are tourists attracted to guest accommodation like this?

Self-catering accommodation may be in holiday parks Self-catering accommodation may be in ho

or in rented apartments or holiday cottages. Cookingor in rented apartments or holiday cotta

facilities will be provided. An example of this kind of facilities will be provided. An example of

accommodation in France is the popularaccommodation in France is the popular gîte.

Transport – roadCarsCars

The private car dominates road travel. Car ownership The private car dominates road tra

s very high in the UK, and most domestic holidays and is very high in the UK, and most

day trips are taken by car. In addition, many people day trips are taken by car. In additio

choose to hire a car when abroad, and this has led to choose to hire a car when abroad

the growth of the car-hire sector.the growth of the car-hire sec

Major car-hire groups in the UK include Hertz, AvisMajor car-hire groups in the U

and Europcar. All have international operations. Theirand Europcar. All have internat

products and services have become very sophisticated, products and services have bec

making car hire very easy and convenient for making car hire very easy an

customers.customers

Car hire companies offer:Car hire companies offe

online or telephone pre-bookingonline or telephone pre-b

airport pick-up or drop-offairport pick-up or drop-off

a wide range of choice of vehiclesa wide range of choice of

all insurances included in fixed prices

one-way rentals – you don’t have to return the car to

the place where you picked it up.

CoachesCo

Coach operators have adapted their products toC

meet consumers’ changing needs and coaches today

are very luxurious. Fly-coach holidays are offered so

that customers do not have a lengthy initial journey

but have the benefits of coach travel for touring, for

example in California.

There are extensive coach networks operating in the

UK, offering scheduled services between towns and

also into Europe. Eurolines is a group of independent

coach companies which claims to connect to 500

destinations within Europe. Coach services are usually

very comfortable with toilets, refreshments and video

available on board.

Transport – rail Network Rail owns and operates the national

rail network in the UK. Its role is to maintain the

infrastructure and renew tracks as necessary.

The train-operating companies (TOCs) lease trains from

rolling-stock companies. There are 25 TOCs in the UK,

and they compete for franchises to run each passenger

service. There are similar companies for freight.

The Department for Transport issues the franchises.

They also monitor the train-operating companies

to make sure the interests of rail passengers are

protected; they can fine the TOCs if they fail to

meet agreed standards. The TOCs are commercial

companies and aim to make a profit, but they do

receive government grants. Examples of TOCs are

Virgin Trains and South West Trains.

The TOCs are represented by the Association of Train

Operating Companies (ATOC), an industry body

that helps to promote their interests to stakeholders,

government and the media.

Other important aspects of the rail system are the

London Underground, Docklands Light Railway and,

of course, Eurostar. Eurostar is the passenger train

service through the Channel Tunnel. It operates from

St Pancras International in London and Ashford in

Kent to Paris, Lille and Brussels. Eurostar is owned

by London and Continental Railways, and run by a

management company.

Think about it!

WorkSpace

How did you manage to get

a job in the tourist information centre and what

skills does your job require?

I was able to get a part-time job at weekends here at the tourist information

centre while I was doing my BTEC. But to get a full time position here I did have to do

a lot of research and study all of the University colleges as they are a main tourist attraction.

I have to have excellent customer service as that is essentially what my job is. I found that the

BTEC helped me a lot with this. I have to be able to answer any question about the city and its

attractions and services. I also have to know the location of pretty much everything in the city –

I probably know my way around better than a taxi driver now! The main skills I need are to be as

friendly and helpful as I can to the customers.

Where do you see yourself in the future and do you think this is a good job to

gain experience?

I’ve gained some amazing experience here that will help me in the tourism industry.

I will continue to work here for another year or so and then I would like to join

the tourism department of the city council and get more involved in

tourism strategy. I’m sure that my BTEC National qualification

and experience working for the tourism information

office should help me move on.

1 Where is your local tourist information centre?

2 Find out what kind of services they offer.

3 What kind of work experience is available there?

Sarah is a twenty-one year old

BTEC National Travel and Tourism graduate who

currently works in the tourist information centre for the city of

ambridge. ‘I’ve lived in Cambridge most of my life and know all the

ghts and attractions, so armed with my BTEC in tourism I find this job

eally satisfying and enjoyable’.

Her role is to respond to any questions or queries that tourists might have

about the city and to recommend to them any activities they might enjoy

on their visit to the city. A city like Cambridge relies on people like

Sarah to ensure that tourists have a good time and are satisfied as

tourism spend contributes to the city’s economy.

Sarah Turner

BTEC’s own resources

30

Although lots of statistics are given in this unit, they change all the time. Make sure you know your way

around the VisitBritain website to find current figures.

Every time you come across a useful report, download a copy onto your PC so you can find it again easily.

You will only know about current trends and factors and their impact if you read newspapers and the

trade press.

Useful websites are:

www.visitbritain.org.uk

www.tttglive.com

www.travelweekly.com

How did the development of low-cost airlines impact on travel and tourism?1.

What is meant by deregulation?2.

What are the elements of a package holiday?3.

Give an example of legislation affecting tourism in the UK.4.

Describe the different methods of distributing travel and tourism products to consumers.5.

Why has Croatia increased in popularity as a holiday destination?6.

What is the difference between scheduled and charter airlines?7.

How do call centres motivate their staff?8.

Who are the major tour operators?9.

What is horizontal integration?10.

What is vertical integration?11.

Which government department is responsible for tourism?12.

What is the role of a tourist information centre?13.

What is the role of the AUC?14.

Describe the two types of motivation to travel and give an example of each.15.