Int Tourism Ch 03 Transportation Services

8/3/2019 Int Tourism Ch 03 Transportation Services

1/28

Transportation Services


2/28

Chapter ObjectivesChapter Objectives

To understand the historical development of

passenger transportation

To identify the roles and important aspects of ground,

sea, and air transportation

To understand the basic aspects of internationalairline regulations

To identify challenges facing the transportationindustry


3/28

Introduction TransportationIntroduction Transportation

Transport is the key element in the tourism industry

Transportation lies at the heart of the tourist industry

The link between home and destination

There is a direct relationship between advances intransportation and growth in the tourism industry

The role of automobile and jet airplane

In the case of air destinations theavailability of air access is the sine quanon.


4/28

Historical Development ofHistorical Development of

Passenger TravelPassenger Travel Early Modes of Travel

By land (3500 BC Wheels on carts)

By sea (3500 BC River boats)

Railroads and Ocean Liners

Steam engine technology (1787)

Railway expansion (1814 - )

Ocean liners (trans-Atlantic Voyage)


5/28

Historical Development ofHistorical Development of

Passenger TravelPassenger Travel

Automobile and Airlines

Auto replaces trains (1885 and 1908)

Plane replaces liners (1903)

Development of passenger planes


6/28

AutomobileAutomobile

Mass production of automobile pioneered by Ford Motors

With mass production automobile become affordable

Most popular mode of travel in the world

In the U.S. 80% of person-trips are made by auto.

Rental car industry growing in importance.

*Grosses approximately $20 billion per year.


7/28

Airline IndustryAirline Industry

First flight: Orville and Wilbur Wrights at Kitty Hawk (1903)

PassengerService 1910

First schedule airplane passenger began in the U.S.

Introduction of Jet aircraft 1958

Jumbo Jet was introduced in 1970

Concorde began service in 1976


8/28

Airline IndustryAirline Industry

Air transport is the main mode of International tourism

The global airline industry consists of over 2,000 airlines operating more

than 23,000 aircrafts

Providing service to over 3,700 airports In 2006, the worlds airlines flew almost 28 million scheduled flight

departures and carried over2 billion passengers.

The growth of world air travel has averaged approximately 5% per year

over the past 30 years


9/28

Air TravelAir Travel

Airport Taxes and FeesA variety of taxes and fees are to be paid to airports.

U.S. Domestic Transportation Tax(7.5%)

Federal Flight Segment Tax ($3.00)

U.

S. International Departure Tax ($15.10)

U.S. International Arrival Tax ($15.10)

Passenger FacilityCharges ($3.00 -18.00)

Federal Security Segment Tax ($5.00)

September 11th Security Fee up to $10

U.S. Custom fee ($5.00)

Immigration fee ($7.00)

Health Inspection Service ($3.10)

These charges increases the total cost of airline operations and canhave a significant impact on the price of the ticket.


10/28


Airports

Operations

Control of air traffic at in and in the vicinity of the airport

Automobile rental operation

Baggage processing

Cargo and mail

Custom and immigration operations

Restaurant and retail operations


11/28

2006

(000) thousands

AirportsNumber ofPassengers

1 ATLANTA (ATL) 84,846

2 CHICAGO (ORD) 77,028

3 LONDON (LHR) 67,530

4 TOKYO (HND) 65,810

5 LOS ANGELOS (LAX) 61,041

6 DALLAS (DFW) 60,226

7 PARIS (CDG) 56,849

8 FRANKFURT (FRA) 52,810

9 BEIJING (PEK) 48,655

10 DENVER (DEN) 47,325

11 LAS VEGAS (LAS) 46,193

12 AMSTERDAM (AMS) 46,065

13 MADRID (MAD) 45,501

14 HONG KONG (HKG) 43,858

15 NEW YORK JFK 43,762

Airport Capacity

Top 15 Airports - Number of Passenger Served


12/28

Biggest Airports of the World

(Area Square Mile)

1. King Khalid Intl Airport 81 square mile

2. Denver International Airport 53 square mile3. Dallas Ft. Worth 30 square mile

* The area of Denver International airport is bigger than Boston orBuffalo.


13/28


Airline Passenger Services

Scheduled services (general public)

Charter services (privately contracted)

Safety and Security

Importance of regulations

Security concerns

Cost of accidents


14/28

Airline Companies Passengers (000)

1 A m e r i c a n A i r l i n e s 8 8 , 2 4 1

2 D e l t a A i r l i n e s 8 4 , 2 4 5

3 S o u t h w e s t A i r l i n e s 7 4 , 7 8 74 U n i t e d A i r l i n e s 6 6 , 1 0 0

5 J a p a n A i r l i n e s 5 8 , 2 4 1

6 N o r t h w e s t A i r l i n e s 5 1 , 9 7 5

7 D e u t s c h e L u f t h a n s a 4 5 , 4 0 0

8 A i r F r a n c e 4 3 , 7 0 09 A l l N i p p o n A i r w a y s 4 2 , 2 5 1

10 U . S . A i r w a y s 4 1 , 2 6 3

Biggest Airline Companies (2003)


15/28

Rail IndustryRail Industry

Railways were the first form of mass transportation

Passenger service began in the early 1800s with railroad cars

Around 1830, the Baltimore & Ohio company began using a car that held

about 60 passengers The Pullman sleeping cars was patented in 1864

Reached its peak volume in the U.S. in 1920.

By the 1930s rail travel had become faster and more comfortable

Amtrak was founded in 1971 Passenger rail service is much more important outside of North America.

Efficient, economical, high speed trains provide an alternative to air

travel.


16/28

International Rail ServiceInternational Rail Service

Rail Service still very important in Europe and Asia

High-Speed Trains in Japan, France, Germany, Spain, China, SouthKorea, and Taiwan

High-speed trains carry passengers between large population centers

France TGV 357 mile; Japan 361 mileFrance TGV 357 mile; Japan 361 mile

Often train travel is faster and cheaper than air travel

Importance ofEurailpass to non-European international travelers

Channel Tunnel allows travelers to travel between Europe and U.K.(opened in 1994).

31.5 mile


17/28

Highways and Byways

Development of national highway systems increased auto

travel

Automobiles

84% of all overnight weekend travel by U.S. residents is by auto

Cost, convenience, flexibility and ability to explore

U.S. and Canada have funded highways instead of rail track

Growth in rental car market

Better Vehicles


18/28

Automobile Rental

Rent A Car Services Started by Joe Saunders in 1906, in Omaha

His first customer was a traveling salesman who had a date with a local girl.

By 1925 Saunders had car rental operations in 21 states

After the World War II, the car rental industry grew rapidly, carried along bythe expanding economy.

Major car rental companies

Enterprise (27%)

Avis

Hertz (20%)

Budget

Alamo/National (16%)

.


19/28

Other Ground TransportationOther Ground Transportation

Buses

Intercity bus passengers tend to be lower income non-

business travelers who are very price sensitive

Scheduled intercity travel and charter/group travel

New designs have increased comfort, services available

and capacity

Flexibility

Bus Tours

Economical and comfortable


20/28

Other Ground TransportationOther Ground Transportation

Recreational Vehicles

-Transport and accommodation combined

-RV campgrounds provide hook-ups for

water, electricity, and sewage.


21/28

Water TravelWater Travel

Cruise Ships

A passenger ship used for pleasure voyages

Floating Resorts

The voyage itself and the ship's amenities are part of the

experience.

Transportation and destination in one

Become a major part of the tourism industry

Fly-cruise packages


22/28

Cruise ship DestinationsCruise ship Destinations

MajorCruise Ships Destinations

The Caribbean (50%)

The Mexican Riviera (5%)

Alaska (8%)

S. Europe and Mediterranean (15%)

N. Europe and Scandinavia (4%)

Panama Canal (6%)

South Pacific (2.2%)

Popular Departure Locations:

Miami

New York

Port Canaveral

Ft. Lauderdale

Baltimore

New Orleans


23/28

Cruise IndustryCruise Industry

Fastest growing segment of the travel industry.

Since 1980 the industry growth rate is 8.1 %

In 2004; 230 cruise ships carried almost 10.6 million tourists

More than 90% American tourists

11.4 % increase over 2003

Utilization is consistently over 90%

Expanding fleets; 20 New ships will be added in 2008

Adding new ports of call.

Served by the Cruise Lines International Association.


24/28

Cruise ship DestinationsCruise ship Destinations

Genes isLargest Cruise Ship

Price Tag: $1.2 billion

Completion Date: 2009

Total Length: 1180 feet

Passengers: 6400

http://www.youtube.com/watch?v=y5HuHqtsw-ohttp://www.youtube.com/watch?v=vvJk6FKulO4&NR=1


25/28

Soaring Through the Skies

Air travel is a 20th century mode of travel: jet travel only in

second half of century

Cooperative organizations make the industry more efficient

Marketing muscle for frequent-flyer programs, pioneered by

American Airlines

Airlines operate on thin profit margins, so controlling costs andmaximizing revenues is a major concern


26/28

Soaring Through the Skies

Operating in a deregulated environment

Airline travel was deregulated in U.S. in 1978

Changes due to deregulation

Competition on price

Increase in number of airlines serving any city

Airlines enter and leave airport service at will

Airlines can package and market services


27/28

Regulation and Deregulation of Air TravelRegulation and Deregulation of Air Travel

Economic Aspects ofRegulationAirline business is a significant capital investment

Regulation has often been used to protect that investment by limiting

competition and preventing the market from adjusting prices.

In 1978 United States deregulated the airline industry with the AirlineDeregulation Act.

Deregulation movement has gained momentum in other countries

Deregulation gave freedom in setting air fares, creating discount air

fares, and entering new routes.Yield management techniques used in pricing


28/28

Other Aspects of the Airline IndustryOther Aspects of the Airline Industry

Computerized Reservation Systems (CRS)CRSs such as Apollo, Sabre, Amadeus, and Galileo have had adramatic impact on the industry.

CRS increased speed, effectiveness and efficiency of airlinereservations.

Through the Internet, customers can search for the best fares andbook reservations using CRSs.

Computerized Navigation and Traffic Control

Technological advances greatly improved the safety, and efficiencyof air travel.

The air traffic system includes satellites, ground radar, air trafficcontrol centers, and the airplanes.

Much ofEurope ground control centers use a multitude of differentoperating systems.

Int Tourism Ch 03 Transportation Services

Documents

Transcript of Int Tourism Ch 03 Transportation Services