Tourism & Transportation Management

TOURISM TRANSPORTATION MANAGEMENT

TOURISM & TRANSPORTATION MANAGEMENT

(TOU1703)

STUDENT NOTESATI COLLEGE

CHAPTER 1: INTRODUCTION TO TRANSPORTATION

Transport is acknowledged as one of the most significant factors to have contributed to the

international development of tourism. It gives invaluable opportunity to the local people as it


gives them jobs and good economic upturn. In global terms, the expansion of international

tourism continues to generate an insatiable demand for overseas travel.

Transport provides the essential link between tourism origin and destination areas and

facilities the movement of holidaymakers, business travelers, people visiting friends and

relatives (VFR) and those undertaking educational and health tourism. Transport is also a

key element of the ‘tourist experience’ (Pearce 1982) and some commentators (Middleton

1988; Tourism Society 1990) view it as an integral part of the tourism industry.

What is tourist transport?

(Collier 1994) provides an interesting insight into tourist transport, arguing that 3 needs need

to be fulfilled;

Transporting the tourist from the generating to the host area

Transport between host destinations

Transport within host destinations

Collier also clasifies tourist transport on several bases;

Public or private sector transport

Water/land/air/rail transport

Domestic and international transport

Mode of transport

Changes Towards Transportation

The major steps in the development of tourism have been linked with advancement in

transport. Tolley and Turton (1995) points out 4 major phases can be discerned in the

evolution of transport technology;

The transition from horse and windpower

The introduction of the steam engine

The development of the combustion engine

The use of the jet engine

While such innovations in technology have meant that global shrinkage has occurred with

reduced journey times, cost reductions and improved capacity, (Wackermann 1997) asserts

that the transformations that have been taken place as a result of this economic opening up

and globalization of the recreational sector, supported by high performance means of

transport and communication have made socities less dependent on natural resources and

the limitations of distance or of time.


Transportation Establishment

Transportation in Malaysia among the finest in Asia, Malaysia road system, which was

begun during British colonization, is expensive and covers about 63,445km. There is a main

highway that reaches the Thai border from Singapore, a distance of over 800km (500 miles).

Although Peninsular Malaysia's road system is good, Sabah and Sarawak have less

developed roadways and the majority of the interior roads are not that great.

The role of transport is increasingly important for economic growth in Malaysia as the

country develops its manufacturing base. The transport sector has come under close

scrutiny in major World Bank studies on national transport and national port. The intention is

to have the department and function of the Transport Ministry and the communication

aspects of the Ministry of Energy, Telecommunications and Posts to be privatized soon.

Aviation, telecommunications, roads, railways and ports have been all targeted for this

transition and in many cases the changes has been implemented.

Ministry of Transportation (Jabatan Pengangkutan Jalan)

Objective

“To plan and formulate transportation policies, to provide for the development and

implementation of an efficient, safe and integrated transportation system (air, sea and land)

to accelerate the socio-economic development of the country.”

Its functions are:

To formulate transport policies and strategies to support an efficient, cost effective and

safe transportation systems.

To coordinate and monitor the implementations of development projects;

To ensure and promote transport safety and to ensure proper enforcement of transport

safety legislations;

To revise transport laws and regulations to support new directions and priorities in

transport policies and programmes;

To ensure that transportation user charges are fair and equitable.

Transportation System In Malaysia

Getting around the country poses little difficulty. There are various modes of travel - air, rail,

or road. Each mode is efficient, convenient, and affordable. More Malaysians are now

utilizing the North-South Expressway, which stretches from Johor Bahru at the southern tip

of the peninsular all the way up to the Thai border in the North. This may not be the Orient


Express of old, but KTM or the Malaysian Railway provides a charm and romance of its own

to anyone who chooses to travel this way. KTM has a number of travel plans for both

domestic and foreign tourists.

Taxi

Taxi service is another good way to travel overland in the country. Usually there are taxi

stands that take you to your destinations like Melaka, Johor Bahru or even to Penang. You

could in fact get a taxi Ride to any part of the country. But remember that the law allows for

four passengers and that you only pay your share of the ride. Hence, there is no need to hire

the whole taxi. Taxi services are readily available in most towns and most charges are

metered by the distance, but flat rates apply for trips to the airport. Additional charges are

incurred if you "book" a taxi in advance. Midnight charges are usually 50% more than shown

in the meter. Since late 1996, new rates have been introduced for taxi fares in the Federal

Capital. Refuse to use a taxi that demands a fixed rate for any journey.

Bus

There are regular bus services to almost every part of the country. You could easily take an

express bus into Singapore or Thailand. These buses are usually air-conditioned and run on

express service and stay very much on schedule. They are efficient and quite convenient.

The bus services have undergone a major overhaul. Today more buses that are air-

conditioned are found on the streets. Buses commute at very regular intervals between all

the major cities and towns in the country. Many of these buses are now "tourist" class in that

the seats are extremely comfortable and the fares charges are reasonable.

Car Rental

Several car-hire services are available, even international ones like Avis, Hertz etc. You can

hire a car in one city and self-drive it to another and leave the car at a pre-designated stop.

Usual car rental formalities apply. You need an excellent road map, an international driving

license, and insurance. Most companies also accept payment by major credit cards. Your

travel agent or the hotel could provide you with the details.

Ferry

Ferries serve some of the country's islands. Some popular resorts that are serviced by

ferries are:

Langkawi Island - there are three places where you can take the ferries to Langkawi

Kuala Perlis, Kuala Kedah and Penang Island.

Pangkor Island - you begin your journey at Lumut.


Tioman Island - Mersing-Tioman Island ferry service.

Penang Island - Sultan Abdul Halim Ferry Terminal, a 24-hour ferry service from

Butterworth.

Rail

Within the city, the Light Rail Transit (LRT) is available for use to help meet Malaysia's need

for mobility that's is safe, predictable, reliable and comfortable. There is a railway system

that is state-run, but it generally covers only West Malaysia, with a brief jaunt into Sabah. It

covers a total of 1798km of track.

Air

Malaysia has six international air-ports, with the KLIA being the latest located at the south

Kuala Lumpur. The main airline in Malaysia was started in 1971 and is Malaysia Airlines,

which provides international and domestic air service. There are two more carriers that offer

domestic and regional flights.

Road Transport

Malaysia's road transport system evolve from providing access to the major areas of rubber

and tin production and linking these areas to the main trading ports. The highway network of

Peninsular Malaysia now comprises about 30,000 km of roads, which about 80 percent are

paved. On the island of Borneo, Sabah has about 9000 km of roads and Sarawak about

6.000km. The main trunk roads in Peninsular Malaysia are the Federal highway routes

serving the west coast and the highway from the capital cross to the coast Kuantan and

north to Kota Bahru.

North-South Expressway

Officially opened on Sept. 8, 1994, the expressway starts at Bukit Kayu Hitam and ends at

Johor Bahru. With a total traveling distance of approximately 847.7 km, traveling time from

the two furthest points have been cut by half, that is 8 hours. The concession period is 30

years, starting from May 31, 1988. By mid 2018, PLUS (Projek Lebuhraya Utara Selatan

Berhad) is expected to hand back the expressway, fully-operational and well-maintained to

the Government. In 1999, however the concession period was extended to include another

12 years.

Under the terms of the concession agreement, PLUS is obliged to construct 462 km of NSE,

35 km of NKVE (New Klang Valley Expressway) and undertake improvement works to 15 km

of the FHR2 between Subang and Klang. It is also obliged to provide all related toll and other


facilities as well as operate and maintain the expressway during the concession period. In

return, the Government will transfer the existing sections, authorise PLUS to collect and

retain tolls, provide PLUS with certain financial support and make land available.

Two overhead bridge restaurants overlooking the busy highway have also been constructed

as one-stop centres for travelers, one at 4S8.4 kin near the Sungai Buloh Interchange and

the other at 210 kin near Ayer Keroh, Malacca. Apart from the two overhead bridge

restaurants, there are 18 rest and service areas and 46 lay-bys along the highway.

The NSE uses both the open and closed toll system. Additional facilities offered to users

include the SmartTAG and Touch 'n Go. SmartTAG is a new hi-tech replacement of the old

PLUSTAG that incorporates a Touch 'n Go card for added convenience. It allows users to

use the service at 21 toll plazas from Bukit Beruntung to Senawang on the NSE and from

Shah Alam to KLIA on the ELITE highway. The Touch 'n Go prepaid smart card is

embedded with a chip and antenna which stores prepaid RM value and provides

expressway users with a cashless and faster method to pay toll. This exact toll fare is

deducted from the value in the Touch 'n Go card while the remaining balance is displayed on

an electronic board. Touch n' Go can be used at all PLUS toll plazas. With the accessibility

of the highway network, this has naturally encouraged domestic travel. For a trip to the resort

island of Penang it takes only about three and half hours from the Federal Capital, Kuala

Lumpur, while to the south of Johore or Singapore, its takes only less than four hours. The

highway authorities have made travel easy as well by providing rest areas where food and

drinks can be obtained. There are also stops for those who want to take a break. PLUS the

authority that's runs the North-South Highway has breakdown services as well emergency

telephones are located along the way. Speed limits are mostly 110km while some areas this

is reduced to 90km for safety reasons. If you begin your journey in the south, there are

several major towns in Johor and your trip will take you into Malacca, Negri Sembilan and on

to Selangor before you break journey in Kuala Lumpur. From Kuala Lumpur, you head north

and the first major city is lpoh, in the heart of the tin-mining state of Perak from there its only

another hour and a half to Penang. If you are heading up north, you will make it to the border

town of Bukit Kayu Hitam in another two and a half hours.

In the states of Sabah and Sarawak, the conditions of roads have greatly improved in recent

years. Where once the only means to travel was by boat or even by air. There are still some

areas in Sarawak that can only be reached by boat, but that only seems to add to the

romance of the journey! In both Sabah and Sarawak 4 wheel drives are used to journey you


to the interior regions. Taxi services are readily available in most towns. There are fixed

rates for the journey.

Penang Bridge

The Government's dream of connecting the mainland of the Peninsular with Penang island

came to fruition sometime in 1971 when numerous consultations and surveys were carried

out to assess the possibility of making this dream a reality. The wheels were set in motion

and come September 1987, the bridge, built by the Malaysian Highway Authority, was

fully-completed and opened to the public. The Penang Bridge, which stretches for 13.5 km.

was privatised to Mekar Idaman Sdn Bhd on 15 August 1994 with the agreement that all

operations and maintenance of the bridge would come under the jurisdiction of the

concessionaire, Penang Bridge Sdn Bhd. The concession agreement lasts for a period of

some 24 years, starting from September 1993 to May 2018. The main portion of the bridge,

which stretches for 225m, was built using the 'cable stayed girder’ method and its highest

point measures 32m from sea level. The bridge is built with two carriageways on each side

and widens to accommodate three carriageways each in the main portion. The bridge was

awarded the '1993 FIA13CI Award of Distinction' due to its important role in spurring the

development of the island.

Rail

The railway in Malaysia, known as Keretapi Tanah Melayu Berhad or KTMB is one of the

most important and economical forms of passenger and freight transport in the country.

Indeed history of Railways in Malaysia began as a need to find an economical and efficient

means of transporting bulk commodities way back in the second half of the 191h century.

The first railway line was laid between Port Weld and Taiping a distance of 12.8 km in 1885.

August 1992 marked the most radical change in the history of KTM. It became the first

railway in the ASEAN region to be corporatised. KTMB is now entirely a private sector

organisation, accountable for all its revenue and development activities.

Today, with 1668 km of track to its credit, KTMB lines run the breadth and width of the

Peninsular providing the country with regular passenger, freight and supplemental services.

KTMB has taken measures to improve its performance in terms of services, efficiency and

safety. Ticket and Seat Reservations - up to 60 days in advance of their intended date of

travel and in most cases right up to two hours before the train is due to leave, or for early

morning trains, up to the previous evening. There is no change for seat reservations on the

express train services.


Commuter Service - the commuter system branded, as 'KTM Komuter' is a product offered

as a suburban railway service that runs outside the city of Kuala Lumpur and Petaling Jaya.

This is the first such commuter service introduced in Malaysia and will change the entire

community patterns for residents in and around the Klang Valley.

The fully air-conditioned electric train service for the KTM Komuter began operations on 14

August 1995. The service using Electric Multiple Units (EMUs), running on a 25 kV AC

system, covers the Rawang to Seremban and Sentul to Port Klang through Kuala Lumpur

sector. It operates with speed, safety and efficiency for urban commuters whilst protecting

the environment. KTM Commuter trains operate from 5.30 am to midnight daily, at interval of

every 15 minutes during peak hours.

KL Central Station dubbed the 'Virtual City Airport", KL Central Station is located in

downtown brickfields. It integrates all major rail services in the city, and has the only direct

rail access to Putrajaya and the Kuala Lumpur International Airport through its Express Rail

Link. Passengers can check in and proceed to KLIA by taking 30 minutes ride direct to the

departure gate at the airport.

The STAR system was completed in time for the Commonwealth Games that was hosted by

Kuala Lumpur in 1998. About 70 per cent of spectators of the international sports event

traveled to the Bukit Jalil stadium by STAR. Currently running through 25 stations covering

the far corners of the Klang Valley, the system links Sentul Timur, Ampang and Sri Petaling

through the city center. Star LRT operated system routes run from Sentul Timur to Ampang

and Sri Petaling. Operation hours are 6 am to 11.30 pm daily. During peak hours the arrival

time for each train averages three minutes. Single trip and return trip tickets are available as

well as stored value tickets of RM20 and RM 50. Feeder bus services are available at the

following station as Maluri, Pandan Jaya, Cempaka, Ampang, Bukit Jalil, Titiwangsa and Sri

Petaling Sentul. Prices for a single trip ticket range from 70 cent to RM2.90, depending on

the distance and destination. The train frequencies also vary, arriving at stations every four

to six minutes during peak hours (between 7.30arn to 9.00am on Mondays to Saturdays and

between 4.30pm and 7.30pm on Mondays to Fridays). At all other times, train frequencies

are reduced to a train every six to ten minutes. The train service starts at all stations at

6.00am. The last trains from Ampang and Sri Petaling to Sentul Timur leave at 11.30pm

whereas the last trains from Sentul Timur to Ampang and Sri Petaling leave at 11.30pm.

Some stations provide feeder bus facilities from the station to nearby neighborhoods for the

convenience of the commuters. The stations providing such services are Sentul, Chan Sow


Lin, Maluri, Pandan Jaya, Cempaka, Ampang, Cheras, Salak Selatan, Bukit Jalil and Sri

Petaling.

Projek Usahasama Transit Ringan Automatik (PUTRA) was incorporated on 1511, February

1994 to design, construct, operate and maintain the LRT System 2 for Kuala Lumpur and is

a wholly owned subsidiary of Renong Berhad. Putra LRT the world's longest: "driverless"

train system. The LRT System 2 known as PUTRA LRT cover a total distance of 29 km and

run at an average speed of 40 kmph, linking the eastern and western suburbs of Kuala

Lumpur servicing some of Kuala Lumpur's most affluent and heavily populated areas. It is

using the Advanced Rapid Transit Mark 11 technology, which has been successfully tested

and proven in North America and Europe with a very high performance specification

specially, designed to meet the needs of Kuala Lumpur.

It commenced operation in June 1999. Featuring the state-of-the-art transport system, The

PUTRA LRT operates with 35 two-car units traveling at an average of 40 km per hour. Its

initial capacity of 10,000 passengers per hour per direction is expected to increase to 30,000

in the near future.

Express Rail Link (ERL) is at a countdown for the commencement of the KLIA Express

service and KL City Air Terminal on 20 April 2002. Stay updated with the progress of the

construction of the ERL.

Air Transportation

Malaysia Airlines' humble origins began in the golden age of travel. A joint initiative between

the Ocean Steamship Company of Liverpool, the Straits Steamship Company of Singapore

and Imperial Airways approached the government of the colonial straits settlement to run an

air service between Penang and Singapore. The result was the incorporation of Malayan

Airways Limited (MAL) on October 12 1937. On April 2 1947, the first fare paying

passengers boarded an MAL, Airspeed Consul plane in Singapore heading to Kuala

Lumpur.

A year after the Independence of Malaya in 1957, MAL would take the next step in becoming

part of the new corporate scene in Malaysia. The participation of BOAC, QANTAS, the

government of the Federation of Malaya, Singapore and the Territory of North Borneo

launched MAL as a public limited company. The acquisition of an 82-seater Briston Britania

in 1960 made mass transport by air a reality. This marked the first international non-stop

service for MAL, which operated directly between Kuala Lumpur and Hong Kong.


The sixties was a period of change for the world and for MAL. The formation of Malaysia in

1963 was the catalyst for the company to change its name to Malaysian Airlines Limited

(MAL). The formation of a new nation also saw the need for MAL as a national carrier, to

integrate and connect the far comers of Malaysia. The governments of Borneo and the

Peninsular saw a need for more integration of the nation's transport system. This led to the

amalgamation of Borneo Airways with MAL that same year, resulted in closer ties being

forged, and further fleet expansion with the acquisition of five F27 aircrafts.

Three years later in 1966, the Governments of Malaysia and Singapore became the majority

shareholders in the national carrier. In 20 years, MAL had grown from a single aircraft

operator to a company of 2400 employees, and a fleet operator using the latest Comet IV jet

aircraft, six F27s, eight DCs and two Twin Pioneers.

In 1967, a new branding exercise after the formation of Singapore saw MAL changing its

Name to Malaysia - Singapore Airlines (MSA). In the late 60s, MSA strived to keep

expanding its reach to even more destinations. MSA made its first flight to Tokyo in 1968.

In 1971, the partnership between Malaysia and Singapore was dissolved, and Malaysia

Airlines Berhad was incorporated in April the same year. With an authorised capital of

RM100 million, the company made a final revision to its name in November 1971, and

Malaysian Airline System Berhad (MAS) was born. By 1972, Malaysian Airline System was

already servicing 34 domestic routes and six international destinations. In November 1972,

Malaysian Airline System became a member of the Orient Airlines Association (OAA), after

the 13th Presidential Assembly of the OAA in Sydney, Australia.

By May of 1973, the company's rapid growth saw it carrying its one-millionth passenger. The

fast pace of air travel would see Malaysian Airline System carrying its two millionth

passenger by the end of 1973. The first publication of The Wings of Gold in flight magazine

was made available on all Malaysian Airline System services.

1976 saw Malaysian Airline System enter the information age, when it computerized its

whole operation. The delivery of its first wide-bodied DC10 aircraft, allowed Malaysian Airline

System to offer new and exciting inter-national destinations. In the 1980s, Malaysian Airline

System became the first major government agency to be privatized.

Global Reach


1986 would see Malaysian Airline System offer the first flight service to the United States.

The service, which runs twice a week to Los Angeles via Tokyo, also saw the first

deployment of the brand new Boeing 747-300 stretched upper desk Combi aircraft. By the

end of 1987, Malaysian Air-line System had established itself as an international carrier of

choice, offering 34 domestic routes and 27 international destinations.

Malaysian Airline System has always been a customer-driven organization. The introduction

of its Esteemed Traveller loyalty programme in September of 1987 demonstrated Malaysian

Airline System's commitment to customer relationship management. A month later,

Malaysian Airline System (MAS) changed its corporate identity and became known as

Malaysia Airlines, with the objectives to create a greater awareness of Malaysia. This was in

line with the government's effort to make Malaysia an internationally acclaimed travel

destination and trading nation.

In this new age of technology, Malaysia Airlines is committed as both a carrier as well as a

responsible corporate citizen in the global economy. Apart from being a carrier, Malaysia

Airlines has diversified its operations into human resource development, training, catering,

property consultancy and technical ground support for aircrafts. In the limelight of having an

ultra modern Kuala Lumpur International Airport (KLIA), providing world-class cargo

management facilities to meet the needs of our partners.

Water Transportation

Water travel is a main or part of tourism and contributes considerably top the development of

travel on land and by air. Forms of water travel include cruise ship, passenger travel on

freighters, ferry boats, river stem-wheelers, chartered boats and yacht, houseboats, smaller

family boats and canoes. Cruise ships and other large vessels need convenience piers and

good land air transportation connections for the passengers. Smaller boats and docks and

loading - unloading ramps for easy accessibility to water. Charter boat operators must have

reliable weather forecasting and ready availability of needed supplies and repair services.

When rental canoes are popular, delivery and pick up services are often necessary.

Main Seaports In Malaysia

In Malaysia, we have 8 main seaports that boast the modem cargo handling facilities and

services and also serve as a main port for embarkation and disembarkation for international

cruises. This indeed has contributed to boost tourism activities via sea. The government with

the co-operation of the private sector is and has taken various steps and measures so as to

ensure the best of facilities and services is catered and available to the port users.


The 8 main seaports in Malaysia are (as per Feb. 2002)

KLANG PORT AUTHORITY (Port Klang) - is Malaysia's load centre and hub port.

Facilitating trade with over 120 countries worldwide and with more than 600 shipping

lines calling at the port. Klang Port was formed on 1st July 1963.

Port Klang has 3 areas of operations - West Port, North Port and South Port.

West Port - situated in Pulau Indah, Selangor, one of the newest ports in Malaysia. I the

year 2005, it will boast of having 32 berths.

North Port - located in Port Klang was gazetted as a free commercial zone, with Klang

Port Authority as the Free Zone Authority to administer the zone.

South Port - covers an area of 48 hectares. This gateway has 8 berths.

PENANG PORT COMMISSION (PPC) - established under the Penang Port Commission

Act, 1955 on Is, January 1956. It is a statutory body under the purview of the Ministry of

Transport. Since January 1994, PPC through the privatisation exercise has liscenced

Penang Port Sdn Bhd (PPSB) to under-take the port and ferry services. This port caters

plays an essential role for the Nor-them Region.

BINTULU PORT AUTHORITY - established on 15th August, 1981, under the

Bintulu Port Authority Act, 1981 and commence its operations in 1st Jan. 1983. It is

strategically located along the busy sea-lanes between the Far East and Europe.

JOHORE PORT AUTHORITY - located in Pasir Gudang, Johor Bahru. Functions as one

of the main port for the Southern Region.

KUANTAN PORT AUTHORITY - located at Tanjung Gelang, it is a prime maritime centre

for the East Coast of Peninsular Malaysia.

Cruise

One of the newest offering in sea travel is cruising It is also known as a 'Floating Hotel' with

facilities and activities such as casinos, theatres, 5-star room and meal services, with indoor

swimming pool, tennis courts, spa, gym and etc. Being one of the world major players,

Malaysia boasts of having 12 international luxurious cruise liners and one of this is the

'Super Star Virgo’, which can accommodate 6,000 passengers. Star Cruises was

incorporated in September 1993, representing a bold initiative to tap Asia-Pacific's potential

as an international cruise destination. Star Cruises presently operates 9 cruise vessels in the

Asia-Pacific. They are Star Pisces; Superstar Aries, Superstar Gemini, Superstar Leo and

Superstar Virgo; and the Megastar Aries, Megastar Taurus, Norwegian Star I and Superstar

Capricorn. Star Cruises is also committed to developing the growing meetings and incentive

segment of the cruise MICE market in Asia-Pacific. Super Star Leo and Superstar Virgo are


able to cater to meeting and incentive groups of various sizes with their world-class food and

beverage, entertainment and recreation facilities.

Fly cruise programmes will be intensified to capture the medium to long haul markets, and

provide wider marketing opportunities. Currently, Star Cruises is developing its fly cruise

hubs located in Singapore, Port Klang (Malaysia), Hong Kong, Bangkok (Thailand) and

Phuket (Thailand). For those who wish to park or make port of call for private boats there are

various yacht clubs in Penang, Port Klang, Lumut , Port Dickson and Langkawi. There are

also private marinas in Port Klang, Penang and Melaka.

River Transport (inland water transportation), which are usually privately owned by

operators that may take tourists to National Parks Lakes or canals.


CHAPTER 2: CHOOSING THE TYPES OF TRANSPORTATION

Choice of Transportation

The types of transportation chosen depend on a number of factors including the length of the

trip, the number of people in the travel party and the income of the traveler. These factors as

well as availability, frequency of trips, cost, time spends in traveling and comfort in travelling

to the destination are important in the decision making proocess.

Jagdish Sheth developed a theory to identify transportation variables and the values of

travelers. According to him, traveler will choose a travel mode based on their psychological

needs, which will be influence by these five factors:

1 Functional or the performance of the transportation, such as the speed, safety

records, frequency or availability, direct or transit and the schedulling.

2 Aesthetic and emotional factor related to the feelings of the passenger such as fare,

social concern, style, luxury, comfort and other personal attitudes.

3 Third factor social and organisational, indicates that the dominant users of certain

kinds of transportation are stereotyped according to sex, racial origin, income,

price/cost and education. For example those who take bus trips are generally

perceived to be people – either younger old, while bus tours and cruises have been

seen as popular tours for empty nesters (retired people).

4 The fourth factor is situational which refers to how conveniently located the particular

mode of transportation and its terminal facilities are for the traveler’s perceived need.

5 The fifth factor is curiosity, some people would like to try things out of curiosity, and

perhaps the thing is new to them.


The Tourist Transport system: A Framework for Analysis

One needs to build a framework, which can synthesise the different factors and processes

affecting the organisation, operation and management of activities associated with tourist

travel. The main objective of this framework is to help us understand how does tourist

interact with transport, the processes and factors involved and their effect on the travel

component of the overall tourist experience. The framework will be use to analyse the tourist

transport needs to incorporate the tourist’s use for transport services from the pre-travel

booking stage through the completion of the journey and to recognise the significance of the

service components. It also need incorporate the different modes of transport used by tourist

for example, air travel by scheduled or charter service, sea travel using ferries or cruise

ships and land-based transport including the car, train, coach, motorcaravan, motorbike and

bicycle. One of the methodologies used by researchers to understand the nature of the

tourism phenomenon is a systems approach. A system can be defined as a set of elements

or parts that are connected to each other by at least one distinguishing principle, which

connects the different components in the system around a common theme. A system

approach has the advantage of allowing the researcher to consider the effect of such

changes to the tourism system to asses the likely impact on other components.

Leiper (1990) identified the following elements of a tourism system:

a tourist,

a travellers-generating region,

transit routes for tourists travelling between generating and destination areas

the travel and tourism industry (example, accommodation, transport, the firms, and

organisation supplying services and products to tourist).

In this analysis, transport forms an integral part of the tourism system, connecting the tourist

generating and destination regions which is represented in terms of the volume of travel. The

significance of transport of the tourism system is also apparent in the model developed by

Laws (1991), where a series of smaller sub-systems were also identified (example transport

system) which can be analysed as a discrete activity on its own right whole also forming an

integral part of the wider tourism systems. Thus a tourist transport system is a framework,

which embodies the entire tourist experience of travelling on a particular form of transport.

The analytical value of such an approach is that it enables one to understand the overall

process of tourist travel from both the supplier and purchaser’s perspectives while identifying

the organisations, which influence and regulate tourist’s transport. This is aptly summarised

by Lamb and Davidson (1996) who highlight the principal relationships that exist between

the tourist, transport and their overall experience where; the purchaser of the tourism


product (the tourist) must experience the trip to access the product, the quality of the

transportation experience becomes an important aspect of the tourist experience and

therefore a key criterion that enters into destination choice.

Poor service, scheduling problems and long or delays associated with a transportations

service for example can seriously affect a traveler’s perceptions and levels of enjoyment with

respect to a trip. Tourists require safe, comfortable, affordable and efficient intermodal

transportation network that enable precious vacation periods to be enjoyed to their maximum

potential. This highlights the importance of:

The tourist

The integral relationship between the transport and overall tourist experience

The effect of transport problems on traveller perception

The tourist requirement for safe reliable and efficient modes of transport.

CASE STUDY: the relationship between transport and tourism, the case of Ontario

Canada.

According to Lamb and Davison (1996) there are number of interfaces between transport

and tourism. In their pioneering study on Ontario, Canada they provide a range of examples,

which highlights the multifaceted nature of tourism, transport and the relationship with

government and shows some of the functional roles transport infrastructure provides.

Ontario is arguably Canada’s most prominent tourism region, since in 1991 it accounted for

36 per cent of the national tourism revenue. Nevertheless, in the early 1990s, it was losing

market share at a time when the dominant American car-based holidays experienced a

decline due to airline deregulation, which aided the development of a more competitive

domestic tourism business. Tourism Canada saw poor airlines, an ageing highways

infrastructure, airport congestion, declining intercity rail services and the inability to tap into a

growing cruise ship industry as key factors affecting the competitiveness of the Ontario

tourism industry. This highlighted the key role of transport in the tourism industry. In 1993,

the Ontario ministry of Tourism, in consultation with the industry stakeholders identified the

following priorities for action to improve the situation including:

Pearson international Airport in Toronto, which received 45 per cent of arrivals to

Canada needed to be upgraded

Ottawa, Niagara Falls Toronto and Windsor and Sault Ste Marie were viewed as

gateways for American tourist and needed to be developed as the starting point for

regional tours

Ontario’s highways air and waterways needed improving.


A study developed by Ontario’s ministry of transportation specifically focused ob the

transport tourism linkages in Ontario and is relatively rare in higlithing the important integral

relationship and synergise that exist. For example Lamb and Davidson argue that in terms of

air transport, the tourism industry requires:

Good geographical coverage and frequent services from the main sources areas

Competitive fare structures

Attractive, user-friendly airport infrastructure (customs, ticketing, baggage handling

and airport-related services)

Other findings about Lamb and Davidson research are, identification of three characteristics

of coach travelers in North America:

A growing preferences for shorter trips, where fly to a destination then take a coach

trip

The greatest users of tourist coach travel are the senior market, with a median age of

66-77 years of age

Comfort and convenience and ease of access to coaches are deemed important

Coach tours encourage overnight stay and s can stimulate spending en route

Due to the increased in demand for coach services, the Ontario transport department

decided to improve the scenic touring routes by providing road infrastructure,

accommodation and stopping points as lookouts. Others facilities are signage, tourist

information centres and traffic management systems.

Tourist transport as a service

Gilbert (1989) discovered the growing importance of service quality and consumer

satisfaction in tourism in the late 1980s. Kotler and Armstrong define service as:


Service intangibility – a service is something, which cannot be seen, tasted, felt

heard or smelt before it is purchased.

Service perishability – a service cannot be stored for sale of use at a later date

Service inseparability – a service is usually produced and consumed at the same

time and cannot be separated from providers.

Van Dierdonck (1992) argues that the intangible nature of a service is determined by the fact

that unlike manufactured goods, a service is provided and communicates its form to

customers. Even so, it is possible to identify six core elements in a service if it is defined as a

product, where each element affects customer perception of the service:

The service process

Customer demand service provider

Image of the service

The of personnel with whom customers interact

Image differences within the same sector as the service provider (e.g. how a service

compares with those offered by its compares with those offered by its competitors)

Consumer benefit

Service concept

Service offer

Service delivery system

Service provision


The customers group targeted

The influence of the physical environment in which the service is delivered (example

building)

The working atmosphere, in which the service is formulated, designed and delivered.

An alternative view of a service is that is constitutes a process rather than an end product

which actually disappears once it has been made. In this respect, a service can be

conceptualised as a process which responds to the diverse need of consumers. Since

consumers are not homogenous it is difficult to standardise a product to meet every need.

The process of providing a serivce which tailors something to meet precise and varied needs

its integral to the concept of responsive service provision.

The consumer benefit

At the outset the supplier of a service tries to understand ehat the consumer wants and how

they may benefit from the service. At this stage, a detailed understanding of consumer

behaviour is required which recognises the relative importance of the factors influencing the

purchase decision. These include social, economic, cultural, business and family influences

and how they condition and affect the attitudes, motives, needs and perception of

consumers. In the case of tourist transport services, asignificant amount of research on the

social psychology of tourist has examined what olidays toursit choose, the mode of tranport

selected and the factors affecting their decision making as consumers. Following the

consumer benefit stage, the service provider translates the assesment of consumer

demands into a service concept.

The service concept

At this point the supplier examines the means of producng a service and how it will be

distributed to consumers. Marketing research at both the consumer benefit and service

concept stage is essential to assist in identfying the specific market segment to target and

the nature of the consumer/producer relationship (example is the service to be sold direct to

the public or via a different distribution channel such as a travel agent). Laslty the producer

identifies and develops the image which is to be associated with the service. Having

established what the service will comprise in concept form, it is developed further into the

service offer.

The service offer

At this point the service is given more shape and developed wihtin precise terms set by

managerial decisions which specify:


The elements – the ingredients

The form – how it will be offered to consumers

The levels of service – what the consumer will expect to receive in terms of the

quality and quantity of the service.

The composition of the service elements is discussed in detail by Gonroos (1980). The form

of the service concept also needs to be considered in terms of how the corporate image will

be communicated to the public. Furthermore the service levels, the technical aspects of

serivce quality and how it is redered also need to be assesed as part of the service quality in

a defintive way. For example, Lovelock aknowledges that service such as tourist transport,

which have a high degree of customer contact, need to be recognised when entering the last

stage service delivery.

The service delivery system

This is the system, which is developed to deliver the service to the customer and will

comprise both the people responsible for the different aspects of the services experience

and the physical evidence such as the transport and environment in which it is delivered.

The tourist experience of these components is embodied in the service encounter. It is in the

service delivery system that barriers may occur in he provision of a satisfactory encounter

and a great deal of marketing research has been directed to identifying deficiencies, critical

incidents and ways of overcoming dissatisfaction in this area. The pursuit of excellence in

service delivery has meant companies monitoring what the consumer wants and then

providing it. In this context marketing assumes a critical role both in terms of research and

communication with customers. By providing quality in service provision it may help to

develop customer loyalty in the patronage of tourist transport. As competitive market for

tourist transport intensifies, the demand for service delivery systems, which are customer-

centered, is likely to be an important factor in affecting tourist use of transport services. The

consumer is a key player in the service process, being an active participant and important

judge of quality. It is therefore essential to consider how transport providers can intergrate

many of the perspectives discussed in the chapter so far, to meet customer’s needs and to

run a tourist transport business successfully.


Management studies and tourist transport

Having examined the role of other disciplines and their contribution to the analysis of

transport, it is useful to consider one area which draws the others together and harnesses

their skills. That area is management. For this reason, it is pertinent to examine what

management is, its rationale, the principles which guide managers and the factors which can

impact upon the need to manage. This is followed by a case study of airline management. In

a purely abstract academic context, management is concerned with the ability of individuals

to conduct, control, take charge of, or manipulate the world to achieve a desired outcome. In

a practical business setting, management occurs in the context of a formal environment - the

organisation (Handy 1989). Within organisations (small businesses through to multinational

enterprises), people are among the elements which are managed. As a result, Inkson and

Kolb (1995:6) define management as 'getting things done in organisations through other

people'. In a business context, organisations exist as a complex interaction of people, goals

and money to create and distribute the goods and services which people and other

businesses consume or require. Organisations are characterised by their ability to work

towards a set of common objectives (e.g. the sale of holidays to tourists for a profit). To

achieve their objectives, organisations are often organised into specialised groupings to

achieves particular functions (e.g. sales, human resources management, accounts and

finance) as departments. In addition, a hierarchy usually exists where the - organisation is

horizontally divided into different levels of authority and status, and a manager often

occupies a position in a particular department or division a specific point in the hierarchy.

Within organisations, managers are grouped by level in the organisation from the:

Chief executive Officer (CEO) or General Manager at the top who exercises

responsibility over the entire organisation and is accountable to a Board of Directors

or other representatives for the ultimate performance of the organisation.

Top managers are one level down from the CEO and their role is usually confined to

a specific function, such as marketing or sales. They may act as part of an executive

who work with other top managers and the CEO to provide advice on the relationship

between different parts of the organisation and contribute to corporate goals.

Middle managers fill a niche in the middle of the hierarchy with a more specialized

role than the top managers. Typically they may head sections or divisions and be

responsible for performance in their area. In recent years, corporate restructuring

removed a large number of middle managers to cut costs and placed more first line

manager responsibility on top managers or the level below – First line manager.


First line managers are the lowest level of manager in an organisation, but arguably

perform one of the most critical roles - the supervision of other staff who have

non-managerial roles and who affect the day-to-day running of the organisation.

Managers can also be classified according to the function they perform (i.e. activity for which

they are responsible). As a result, three types can be discerned.

Functional managers manage specialised functions such as accounting, research,

Sales and personnel. These functions may also be split up even further where the

organisation is large and there is scope to specialise even further.

Business unit, divisional, or area managers exercise management responsibilities at

a general level lower down in an organisation. Their responsibilities may cover a

Group of products or diverse geographical areas and combine a range of

management tasks, requiring the coordination of various functions.

Project managers manage specific projects which are typically short-term

undertakings and may require a team of staff to complete them. This requires the

coordination of a range of different functions within a set time frame.

The goals of managers within organisations are usually seen as profit-driven, r as the

following list suggests, they are more diverse:

Profitability, which can be achieved through higher output, better service, attracting

new customers and by cost minimisation.

In the public sector, other goals (e.g. coordination, liaison, raising public awareness

and undertaking activities for the wider public good) dominate the agenda in

organisations. Yet in many government departments in developed countries, private

sector, profit-driven motives and greater accountability for the spending of public

funds now Feature high on the agenda.

Efficiency, to reduce expenditure and inputs to a minimum to achieve more

cost-effective outputs.

Effectiveness, achieving the desired outcome; this is not necessarily a profit-driven

motive.


In practical terms, however, the main tasks of managers are based on the management

process, which aims to achieve these goals. Whilst management theorists differ in the

emphasis they place on different aspects of the management process, there are four

commonly agreed sets of tasks. McLennan et al (1987) describe these as:

Planning, so that goals are &cc out and the means of achieving the goals are

recognised,

Organising whereby the work functions are broken down into a series of tasks and

linked to some form of structure. These tasks then have to be assigned to individuals.

Leading, which is the method of motivating and influencing staff so that they perform

their tasks effectively. This is essential if organisational goals are to be achieved.

Controlling, which is the method by which information is gathered about what has to

be done.

Managing requires a comparison of the information gathered with the organisational goals

and, if necessary, taking action to correct any deviations from the overall goals.

Fundamental to the management process is the need for managers to make decisions. This

is an ongoing process. In terms of the levels of management, CEOs make major decisions

which can affect everyone in the organisation, whereas junior managers often have to make

many routine and mundane decisions on a daily basis. Yet in each case, decisions made

have consequences for the organisation. To make decisions, managers often have to

balance the ability to use technical skills within their own particular area with the need to

relate to people and to use 'human skills' to interact and manage people within the

organisation, and clients, suppliers and other people external to the organisation. Managers

also need these skills to communicate effectively to motivate and lead others. They also

need cognitive and conceptual skills. Cognitive skills are those which enable managers to

formulate solutions to problems. In contrast, conceptual skills are those which allow them to

take a broader view, often characterised as 'being able to see the wood for the trees',

whereby the manager can understand the organisation's activities, the interrelationships and

goals and can develop an appropriate strategic response (Inkson and Kolb 1995).

In recent years, there has been a growing recognition that to perform a managerial task

successfully, a range of competencies are needed. A competency, according to Inkson and

Kolb (1995 : 32) is 'an underlying trait of an individual - for example a motive pattern, a skill,

a characteristic behaviour, a value, or a set of knowledge - which enables that person to

perform successfully in his or her job. The main motivation for organisational interest in

competency is the desire to improve management through education and training. As Table

2.6 shows, competencies can be divided into three groups:


Understanding what needs to be done

Getting the job done

Taking people with you

The McBar management competencies model

Competency Components of the model

Understanding what needs to be done Critical reasoning

Strategic visioning

Business know-how

Getting the job done Achievement drive

Proactivity

Confidence

Control

Flexibility

Concern for effectiveness

Direction

Taking people with you Motivation

Interpersonal skills

Concern for impact

Persuasion

While the concern with competencies questions the traditional planning, organising, leading

and control model as a description of the management process, an overriding emphasis on

the skills manager managers need to perform tasks people also has inherent problems.


Research has shown that the view that such skills are generic and can be generalised to all

situations is incorrect. In fact, human skills are very much related to personality and

individual style and conceptual skills. based on the natural abilities of individuals. However, a

certain degree of training and development as well as everyday learning may assist

managers to improve their effectiveness. What is critical is the manager's ability to be

adaptable and flexible to change, particularly in fast-moving areas such as tourism.

Change is a feature of modern-day management and any manager needs to be aware of,

and able to respond to changes in the organisational environment. For example, general

changes in society, such as the decision of a new ruling political party to deregulate the

economy, have a bearing on the operation of organisations. More specific factors can also

influence the organisational environment including:

Socio-cultural factors, which include the behaviour, beliefs and norms of the

population in a specific area.

Demographic factors, which are related to the changing composition of the

population

(e.g. Birth rates, mortality rates and the growing burden of dependency where the

increasing number of ageing population will have to be supported by a declining

number of economically active people in the workforce).

Economic factors which include the type of capitalism at work in a given country and

the degree of state control of business. The economic system is also important since

it may have a bearing, bearing on the level of prosperity and factors which influence

the system's ability to produce distribute and consume wealth.

Political and legal factors that are the framework in which organisations must work

(e.g. Laws and practices).

Technological factors, where advances in technology can be used to create products

more efficiently. The use of information technology and its application to business

practices is a case in point.

Competitive factors, which illustrate that businesses operate in markets and other

producers may seek to offer superior services or products at a lower price.

Businesses also compete for finance, sources of labour and other resources.

International factors, where businesses operate in a global environment and factors

which obtain in other countries may impact on the local business environment. For

example, in December 1997 the unexpected financial crisis in South Korea led air

New Zealand to cease its four-times-a-week service to Seoul and from 1 February

1998, Qantas also withdrew services.


Change and uncertainty are unpredictable in free market economies, and managers

have to ensure that organisations can adapt to ensure continued survival and

prosperity, as exemplified by the rapid response of air New Zealand and Qantas to

the financial crisis in South Korea to offset potential losses. Change continually

challenges all organisations and change in any one factor within an organisation.

Can impact upon how it functions. Various techniques can be used to help to

overcome internal resistance to change within organisations. As Kotler and

Schlesinger (1979) observe, these include:

Education and communication

Participation and involvement is facilitation and support

Negotiation and agreement

Manipulation and co-optation

Explicit and implicit coercion

Change may be vital for organisations to adapt and grow in new environments and the

introduction of information technology is one example where initial resistance within

businesses had to be overcome. Increasingly, managers do not only have to undertake the

role of managing, but also the dynamic role of 'change agent'. Managers have to understand

how systems and organisations work and function to create desirable outcomes. It is the

ability to learn to manage in new situations where there are no guidelines or models to

follow, which Handy (1989) views as the way people grow, especially in a managerial role.


CHAPTER 3: THE ELEMENTS OF TRANSPORT

There are 4 basic physical elements in any transport system. The characteristics of these

elements in each mode of transport vary from one to another

The WAY

The TERMINAL

The CARRYING UNIT

The MOTIVE POWER

a. The Way

The way is the medium of travel used by the various transport modes. It may be purely

artificial such as roads, railways, trams or cableways, natural such as air or water, or a

combination of both such as air and road. A variety of distinctions are important to be noted,

a cost will incur if the way has to be provided artificially, The cost of the way can be influence

by sharing with other users i.e. roads, sole use of a specialized way which is railway, or cost

of the way.may increase if It is subject to traffic cortrol such as air and shipping. The nature

of the way is an important consideration for the carrying units, terminals and motive power:

b. The Terminal

A terminal gives access to the way for the users while a terminal is the furthest point to

which the transport system extends, Terminals acts as interchanges where travelers may

transfer between modes for example car to train. Terminals vary considerably in their design

and the amenities they provide. The length and complexity of the journey and the

expectations of the passengers often determine the design and amenities.

c. The Carrying Unit

Each 'way’ demands a distinctive form of carrying unit. Some units such as aircraft, ships,

and road vehicles are very flexible as their use of the 'way' rarely restricts other vehicles.

Trains, monorails and trams are often confined to a track where overtaking is virtually

impossible and breakdowns can cause extensive delay.

d. The Motive Power

The historical development of motive power technology reads almost like a history of

tourism. As tourism enters the new millennium, it relies almost exclusively on artificial power

for reaching a destination. Motive power combines with the 'way' and the carrying unit to

determine the speed, range, and capacity of the transport mode. Size of the carrying unit


also becomes a question where the challenge is to find the correct combination of carrying

unit and motive power that can hold the maximum number of passengers.

Transport Cost and Pricing

Transport cost and pricing are fundamental to the geography of tourism. The distinctive cost

structure of each mode influences consumer choice and thus determines the volume of

traffic on a route. There are 2 basic types of transport cost:

a. Social and environmental costs

Cost are not paid for by user of the transport but borne by community i.e. noise pollution.

b. Private costs

Users and operators directly or indirectly pay the costs.

It can be further divided into 2 groups

o Fixed Costs - Incurred before any passengers are carried i.e. interest on

capital invested.

o Variable Costs - Costs include such as level of service provided, distance,

etc.

Transport Modes, Routes and Networks

a. Modes

In transport the term 'mode' is used to denote the manner in which transport takes place.

Each mode has distinct operational characteristics, based on different ways in which

technology is applied to the four elements of any transports system, Technology determines

the appropriateness of each mode for a particular type of journey. It also ensures that some

modes overlap in their suitability for journeys and this may lead to competition on certain

routes.

b. Routes

Transport routes do not occur in isolation from the physical and economic conditions

prevailing in different parts of the world. Mountain ranges, river, valleys or even climatic

factors influence transport routes, as do the location of major cities, political boundaries, and

the tourist generating and destination areas. Not all modes of transport are equally affected

by these factors.

c. Networks


Each transport, network is made up of a series of links (along which flow takes place) and

nodes (terminals or interchanges). The accessibility of places on a network is of particular

interest to tourist geographers. Geographers analyze and describe these route networks in a

variety of way:

Flow Map -, which shows the volume, of traffic on each route. It gives a rough indication

of major nodes and links.

Graph Theory -, which gives a more accurate picture with descriptive measures.

Air Transport

The most influential developments for international tourism took place after the World War 2

(WWII). Technological advances have opened up many parts of the world. No part of the

world now is more than 24 hours of flying no time. It is estimated that 20% of international

tourism uses air transportation The main advantages of air transportation are that it allows

direct flight, speed, and high capacity. The disadvantages are that it require large terminal

area, expensive, and depends on natural resources as fuel.

Air transport

MODE Air

WAY Natural

CARRYING UNIT Aircraft

CARRYING CAPACITY High

MOTIVE POWER Turbo fans engines, turbo prop, piston engines

ADVANTAGES Speed and range

Low fixed costs

Suited for long journey

DISADVANTAGES High fuel consumption

Stringent safety regulations makes air an expensive

mode

High terminal costs

SIGNIFICANCE FOR TOURISM Speed and range opened up most part of the world

Provide drive for growth of mass international tourism


The World Pattern of Air Routes

The development of air routes is determined by the extent of the demand for air travel, the

existence of adequate ground facilities for handling passengers and cargo, and international

agreement. The Chicago Convention in 1944 defined five freedoms of air that are put into

practice by bilateral agreements, which are:

The privilege of using another country's airspace.

To land in another country for technical reasons.

The 3rd and 4th freedoms relate to commercial point-to-point traffic between two

countries by their respective airlines.

The 5th freedom allows an airline to pick up and set down passengers in the territory of a

country other than its destination.

In many parts of the world, these freedoms are greatly affected by international politics. The

importance of international and national agreements is decreasing as deregulation of the air

transport system takes place. It means that governments are no longer allowed to control

routes, fares and volumes on flights within and across their borders. Deregulation

encourages competition amongst airlines, encourages the building of strategic alliances

amongst airlines, encourages growth of regional airlines and regional airports, and has led to

the developments of low-cost 'budget' airlines on busy routes.

The routes and tariffs of the world's scheduled international airlines are to an extent

controlled by the International Air Transport Association (IATA). The International Air

Transport Association has divided the world into three Traffic Conferences Areas:

Area 1 - North, Central and South America and Environments.

Area 2 - Europe, Middle East, Africa

Area 3 - For East, Australia, New Zealand and Pacific Islands

Most of the world's air traffic is concentrated in three major regions: Eastern part of USA,

Western Europe, and East Asia. This is partly due to the market forces originating from their

vast populations and partly due to strategic location of these areas. The busiest

intercontinental routes are between Europe and North America.


Surface Transport

Unlike air, transport, road and rail communications are constrained by national boundaries

and subject to greater degree of control by national governments. Surface transport can be

divided into 3 categories: Road, Poll, and Sea.

Road Transport

MODE Road

WAY Surfaced road

CARRYING UNIT Car, bus, coach

CARRYING CAPACITY Low

MOTIVE POWER Petrol, Diesel, Gas Electric

ADVANTAGES Door to door flexibility

Driver in total control

Suited to short journeys

DISADVANTAGES Ways shared by others leading to possible congestion

SIGNIFICANCE FOR TOURISM Door to door flexibility allows tourist to plan routes

Allows carriage of holiday equipment

Acts as link between terminal and destination

Acts as mass transport for excursions in holiday areas.

Rail Transport

MODE Rail

WAY Permanent way with rails

CARRYING UNIT Passenger’s carriages


MOTIVE POWER Diesel engines, electric, steams

ADVANTAGES Sole user of way allows flexible use of carrying units

Suited to medium or long journeys

Suited to densely populated urban areas

Non-polluting

DISADVANTAGES High fixed cost

SIGNIFICANCE FOR TOURISM Open up areas that are inaccessible

Special carriages can be added from scenic viewing

etc.

Carry significant volume of tourist traffic


Sea Transport

MODE Sea

WAY Natural

CARRYING UNIT Ships


MOTIVE POWER Diesel engines or steams turbine

ADVANTAGES Low initial investment

Suited for long journey

Suited for short ferry operation

DISADVANTAGES Slow

High labor costs

SIGNIFICANCE FOR TOURISM Cruising


CHAPTER 4: GROUND TRANSPORTATION

The development of Ground Transportation

Tourism and transportation are inextricably linked. As world tourism increases addiional

demands will be placed on the transportation sectors looking at the position occupied by the

various modes of passenger transportation, one finds that air travel dominates long-distance

and middles-distance tourism. The private automobile dominates for shorter trips ans is the

most popular means of travel for most domestic journeys. The automobile is also very

important in regional and international tourism. Rail travel now plays are more limited role

than it did in the past. However, this mode could increase its market share, especially in

Europe. The development of high speed trains and the opneing of Channel Tunnel will

increase rail traffic. Motorcoach transportation reaches many communities that are not

served by any other public mode: but quantitaively, motorcoaches account for very small

percentage of vehicle miles. An increase in traffic due to world torusim growth puts pressure

on transportation facilities and this can have adverse effects. Situations in the world vary

widely within regions, countries, states and province. Alsom variations exist between such

areas. Even so, the problem seem to be the same all over the world. Those needing the

urgent attention of policymakers are as follows:

1. Congestion

Serious congestion affects most passenger transportation modes, particularly on

roads and at airports during peak periods. In major cities there is the danger if

reaching gridlock. Congestion means delays that are a serious waste of time and

energy.

2. Safety and security

Ensuring safety and security in transportation is a basic requirements for tourism.

3. Environment

An increase in traffic may harm the environment if an area does not have the carrying

capacity for additional for traditional tourist. Transportation planning must take

economic, social, cultural and natural resource costs into account when designing

expanded facilties.

4. Seasonality

Seasonal patterns of travel demand create overcrowding at certain times. Conversely

low occupancies and load factors will occur at other periods. At peak travel periods

the problem of congestion, security and the environment become more severe.


The Motorcoach Industry

Do you expect to enjoy a fulll-length feature fikm in your next motorcoah trip? Or relax in a

comfortable seat? If you think you can do these trvelling only on an airline think again.

Leisure motorcoach travel is a popular way to see the view. Today’s luxury vehicles have

rclining seats and air-conditioning and are among the safest and cleanest modes of

transportation available. On a United Motorcoach association consumer profile, the profile of

motorcoach riders was determined to be younger, better educated and more affluent than

many believed. The “baby boomer” generations ages 35 to 54 is the largest segment of

motorcoach travelers. The “boomer” group has more bus users, 36 percent than those 55

and older or 18 to 34 years olds, 32 percent have a household income of US50.00 or more

and 33 percent have a household income of US25.00 to US 49.000.

Case study:

Motorcoach industry rolling into Wisconsin

Wisconsin will be in the motorcoach industry spotlight December 6-11 as Milwaukee hosts

the American Bus Association’s (ABA) annual convention. The Department of Tourism has

been a strong partner in bringing the convention to the state, and committing funding and

staff hours to promote the event over the past three years.

The state will show off its hospitality to more than 2000 motorcoach and tour operators on

December 7, when the Department hosts a "Wisconsin State Fair" reception. From cream

puffs to custard to the Cheese League, convention delegates will get a true taste of

Wisconsin throughout the evening. Wisconsin State Fair Park joins the Department in

sponsoring the event.

ABA is one of two national motorcoach associations. Its annual convention attracts

individuals from throughout North America. Motorcoach travel is expected to bring $12

million to Wisconsin in 1999.

I have just read one of the better articles ever on the motorcoach group tour business and

want to share with you a few excerpts from an article entitled "Decline & Fall of the

Motorcoach Industry by Brian J. Niddery appearing in the January/February 2001 issue of

American Bus Exchange.

"It is my belief that the motorcoach industry would already have declined and fallen into

complete oblivion by the seventies had it not been for a fortunate marketplace reprieve! In


the sixties, group travel became popular with a whole generation of people who at that time

happened to be retiring. This senior generation, having lived through two wars and a

depression, had little opportunity in their lives for leisure travel…this generation was simply

happy just to be able to see the countryside. Most worked all their lives in 'physical' jobs

such as in factories or on farms, and their idea of leisure was the ability to sit in a

comfortable chair and watch the world pass by. What better way to do this than in a coach

seat, looking through a big picture window, enjoying the scenic countryside, and travel great

distances along those wide new interstate highways!

"Unfortunately, this generation of seniors are now well into their twilight years! The next

generation, the so-called baby-boomers, will soon be on the verge of retirement. This

upcoming generation of seniors has tons of discretionary income and money available to

them, and will soon have a great deal of leisure time. And how do they want to spend their

leisure time and money? We already know that travel is number one on their 'To Do' list!

Sounds good so far?

"Foolishly some industry people are in the belief that the motorcoach industry will somehow

magically inherit this market, and with usual minimal effort and complacency, will merrily

enjoy another thirty years of good times!

"Read my lips! It ain't going to happen! The baby-boomer generation is used to world-class

service, luxury, and is very demanding consumers! They have no patience for an industry

that doesn't have the necessary skills to provide quality service in an efficient and

convenient manner, along with an infinite array of such services, all of which are 'beyond

customer expectations'!

"Service beyond customer expectations' isn't exactly what our industry has been noted for!

One must understand that baby-boomers have generally held 'sedentary' jobs for most of

their lives, and their idea of leisure is active and physical - quite the opposite of the previous

generation! For one thing, they have already traveled extensively, and so travel by itself is

not attractive to them! ... Short duration vacations are more attractive than longer annual

vacations.

"The motorcoach industry will require a whole new set of products and services to attract this

generation. It will also need to develop far more effective marketing practices to even reach

these people….


"The key element in generating higher revenues, more profitability, and developing new

market opportunities is high quality service and the ability to provide a range of services that

are, 'beyond customer expectations' consistently and predictably'!"

Our challenge as Virginia suppliers to this industry is to come up with innovative new ideas

to offer the operators. We don't need to completely reinvent the wheel, we just need to

repackage our history, beaches, mountains and entertainment venues to make them exciting

interactive experiences and then give the customer more than they expected. As quoted

above, as regards the baby-boomers, we must go "beyond their expectations."

Types of motorcoach

The motorcoach can be divided into five basic types:

City buses

Bare-boned commuting vehicle that are rareky used for tours,

School buses also seldom used for anything but school outing

Minibuses or vans

It’s a downsized vehicles that accommodate small groups

The Recreational Vehicle Features

RV's comprise a whole family of vehicles that combine transportation and temporary living

quarters for recreation, camping and travel. Some provide a simple place for sleeping and

eating, while others are virtually luxury lodges on wheels. Conveniences range from the

basics like running water, cooking and bathroom facilities, and a power source (either

electricity or liquid propane) to added comforts such as air conditioning, entertainment

systems and slide out rooms. Obviously, there is an RV model suitable for virtually every

family, and every budget.

Folding Trailer

Low price appeals to many first-timers as a perfect, inexpensive entry unit into RVing.

Lightweight allows for towing by most motorized vehicles, even some small compact cars.

Also allows unit to be unhitched from vehicle and maneuvered by hand into tight spots.

Compact size and collapsible sides allow for quick set up at your destination and easy

storage between uses. When set up, many folding camping trailers provide kitchen, dining

and sleeping facilities. The living space in a folding camping trailer is amazingly spacious


with many modern home conveniences and amenities such as stoves, refrigerators and

showers available depending on the model. Some even include a slide out section which

creates additional open floor space in the center of the unit. Folding camping trailers are

tents on wheels with collapsible walls made of canvas or fiberglass. The folding camping

trailer consists of a chassis and a hard roof that is raised when one reaches a campsite.

Their low profile saves on gasoline, provides greater stability when towing, and decreases

buffeting by wind. The low profile often allow folding camping trailers can incorporate power

converters that allow you to enjoy home entertainment appliances like television, VCR, and

stereo’s visibility through the car’s rear window as well, which makes it a most convenient

vehicle to pull With this unit, you'll usually need to plan on using the bathroom facilities at the

RV Park or campground you are staying at. Most tent trailers do not have toilet facilities but

are quite capable of accommodating some form of portable toilet. Camping trailers are also

known as Soft Top, Hard Top, Fold Down or Tent Trailers

Travel Trailer

As with all towables, unit can be detached at your destination, freeing up towing vehicle for

short trips and excursions, running errands and other conventional uses. Travel trailers are

available with all the conveniences of home for sleeping, showering, cooking, dining, and

relaxing. Without floor space needed for the driver's cab, travel trailers offer a wide, flexible

variety of floor plans a feature found on many of today's travel trailers is the slide out. At the

touch of a button, the slide out moves a portion of the RVs exterior wall outward as much as

3-1/2 feet to enlarge the living, dining, sleeping or even kitchen area. When extended, the

slide out protrudes beyond the normal outside walls of the RV, like an addition on a

conventional home Today's market offers a large selection of suitable tow vehicles. Travel

trailers can be towed by most full-size and many midsize family automobiles, SUVs, vans or

other truck-based vehicles (consult your dealer for specifications). Telescoping travel trailers

offer improved fuel economy. They can be lowered to car-top level for travel, eliminating the

gasoline consuming wind drag. These units can also be lowered for storage in a garage or

carport. New lightweight travel trailers have recently been introduced, designed light enough

to be towed by most six-cylinder family vehicles. This lightweight version of towable travel

trailers retains all the modern conveniences of the traditional vehicles and some even offer

special features like the slide out. The travel trailer category was the first of the recreational

vehicles ever developed, and remains the most popular of the many types of RVs in use

today. The mid-size travel trailers, in the 18 - 24 foot range, tow easily behind properly

equipped full size cars, and are a pure pleasure when towed behind a van or pickup truck.

Interior facilities depend largely on the size and cost of the vehicle. Sleeping capacity varies

with size, but trailers typically accommodate six to eight adults in comfort, and contain full


kitchens, bathroom facilities, and the comforts of a pressurized hot water system with

shower stall. The full size travel trailer is built for mobility, and with an excellent weight

distribution, can often be the easiest of the travel trailer sizes to tow! Is it any wonder that so

many people select this category of travel trailer you can tour the continent, set up seasonal

living quarters close to home in the summer, and winter in the sunny south you can even

choose your favorite campground, and use the full size travel trailer as a movable cottage!

With a travel trailer no set-up is required other than unhitching and leveling. The average

travel trailer is a completely self-contained unit with storage areas for lawn chairs, sporting

equipment and extra clothing. They usually come with holding tanks for fresh water, and also

for all wastewater. As with all towables, the fifth-wheel travel trailer can be detached at your

destination, freeing up the towing vehicle for short trips and excursions, running errands or

other conventional uses. The unique bi-level dimension of the fifth-wheel travel trailer raises

the unit's spacious "master bedroom" over the truck bed, thereby providing more room for

family activities in the "living" section of the unit. Many have large windows at the rear for

panoramic views. This overlap reduces the overall length of the two vehicles, which

contributes to improved traction and handling as a result of the forward-placed trailer tongue

weight. The fifth wheel trailer is the easiest handling vehicle in the towable RV category. The

raised section also allows for their unique split-level floor plans that appeal to many RVers.

The typical use for the forward section of the fifth wheel trailer is as a master bedroom, and

with a full eight foot width, and almost as much space in the length of this area, the effect of

the floor plan is very impressive. Two-thirds of all fifth-wheel travel trailers built today offers

at least one slide out. At the touch of a button, the slide out moves a portion of the RVs

exterior wall outward as much as 3-1/2 feet to enlarge the living, dining, sleeping or even

kitchen area. When extended, the slide out protrudes beyond the normal outside walls of the

RV, like an addition on a conventional home. A fifth-wheel travel trailer requires a properly

equipped and compatible full-size pickup or a custom tow vehicle. It is important to match

the weight of the trailer to a tow vehicle which has the necessary towing capacity (consult

your dealer for specifications). New lightweight fifth-wheel travel trailers have recently been

introduced, designed light enough to be towed by smaller trucks. The fifth wheel tends to

be among the larger RV models, with every convenience feature required for up to eight

people. It can last for many years, and with the option of a fully winterized construction it is

suitable for all-round use.


Park Model

Park trailers are recreational vehicles used primarily as destination camping units rather than

traveling camping units. When set, park trailers may be connected to utilities necessary for

operation of installed fixtures and appliances. It's built on a single chassis that is mounted on

wheels. At one time, these trailers qualified as eight-foot-wide RVs, but without self-

contained features. They were normally pulled infrequently, perhaps to and from an owner's

summer and winter haunts. Now, with admittedly some exceptions, many have evolved into

miniature mobile homes, sometimes 12 feet in width. The park model trailer is typically from

28 to 45 feet in length, often with sliding glass patio doors, extension sections, and

residential style appliances. The park model trailer is generally connected to all available

utilities, so you can add cable television, telephone, and even washer and dryer if you like.

There’s plenty of room, especially if you choose a model with slide-out or tip-out sections,

which will increase the width of the bedroom and living room area from about eight feet to

almost sixteen feet More mobile than a mobile home, and much better equipped for full time

living than a conventional travel trailer, the park model is a viable alternative to the country

cottage if you have access to lakefront land, or it can be installed in a trailer park on a

seasonal basis. If you have access to lakefront land, or it can be installed in a trailer park on

a seasonal basis. These units are manufactured according to stringent guidelines, which

include requirements from the national plumbing and electrical codes. In some states, some

models require professional delivery and some models are intended for one-time setup on a

permanent site. Park models are also regulated by various state agencies and by the rules

established by the individual RV parks and campgrounds that accept these trailers. For

example, some parks and/or states prohibit 12-foot-wide trailers. Some parks may allow

electric water heaters and others gas. Some parks have full sewer systems and allow house-

type toilets; others require marine toilets with holding tanks Before you begin shopping for a

park model, take the time to research any restrictions and/or regulations the state or RV

Park may have concerning these units. Knowing this information up front will help you select

the park model that best fits your camping needs.


IS Checklist on Transportation

YES NO

1. Validity of Road Tax and it is displayed.

2. Validity of Driver Driving Licenses.

3. Cleanliness of Coach/Van/Bus/Car:

Cushions

Post Seat

Dustbin

Carpet is cleaned and without bad odors

Exterior is washed

Windscreen

4. Check petrol level.

5. Check water level.

6. Check engine oil.

7. Audio Visual aids are working:

I. Video Player

II. Radio

III. Mike

8. First Aids Box- contents are check and refilled.

9. No smoking sign.

10. Telecommunication equipment is working.

11. Brakes are in working order.

12. Lights are working-front/ rear/ signal/ brake.

13. Rear mirror is usable.

14. Passenger door is serviceable.

15. Drawer seat is serviceable.

16. Color of coach complies with the government's ruling.

Public And Telecommunication System


VIDEO

Sizes/Formats Of Videotape

VHS, SVHS (1 / 2 inch)

Very popular size

Inexpensive

Easy to get

Hi 8 (8mm)

Better quality than VHS

Designed for low cost industrial use

Optional Feature

Automatic lamp changer on some models

Bright light model for large screen application

Optional Accessories (usually additional charge)

Acetate roll

Acetate sheets

Markers (may be included in price of projector)

Lavaliere microphone

Electric or laser pointer

Advantages

Can be used with high ambient light

Allows impromptu development of presentation for group too large for flipchart or

blackboard - Uses simple to operate projector, completely controlled by speaker

Easy to produce

Disadvantages

Easy to get out of sequence during presentation

Works only for simple production techniques

Difficult to obtain square image and equipment cuts into seating space when used with

large audiences.

AUDIO EQUIPMENT

Microphones


More than one microphone usually requires a mixer

Standard mixers have four channels, meaning they can handle four microphones. There

has to be one mixer channel per audio source

A sound technician should be used when a mixer larger than 4 channels is used

Miscellaneous

Overhead speakers in a meeting room should be used as a last resort

Audio control should be placed in the same area as the audience

ELECTRICAL

Audio, lighting and video should all have separate circuits available. This will help

prevent hums and buzzes in audio and video

Separate outlets do not necessarily mean separate circuits. There could be four wall

outlets all connected on the same circuit

Lighting equipment has the greatest power requirements

Calculations

Average current per breaker electrical circuit is 20 amps

Average voltage for outlet is I 10 volts -1000 watts

10 amps Example: four 1000-watt lights (typical lighting tree configuration) 40 amps.

Therefore, you would need two separated circuits to use all lights without blowing a

circuit breaker.

Sound Sources.

Amplifier - Intensifies sound

Output - (Speakers) Allows audience to hear sound.


TYPES OF MICROPHONES

Handheld

Microphone that can be used in a stand or held in a speaker's hand.

Type of Stand/Holder Most Common

Application Gooseneck Podium

Desk/Table Panel Discussion, Audience Q&.A, Standup

Entertainers, Musical Instruments Boom

LAVALIERE

Small microphone that hangs around speaker's neck or attaches to clothing. Gives speaker

more mobility, but can cause "feedback" when volume is turned up high.

WIRELESS (can be handheld or lavaliere)

Advantage

Total mobility for speaker

Disadvantages:

Expense

Subject to interference, not totally reliable

Some models use batteries that can run down quickly.

Requires "hard-wired" backup


1 Verify Road Tax

2. Drivers license

3. Cleanliness of Vehicles

4. Petrol Level

5. Water Level

6. Engine Level

7. Audio Visual Aids

8. First Aid Box

9. Signs

10. Telecommunication equipments

11. Brakes okay

12. Lights

13. Rear mirror

14. Serviceable passenger door

15. Serviceable drawer seat

16. Color coach compiled


CHAPTER 5: TYPES OF LAND TOURS

TYPES OF LAND TOURS

The tour business is constantly changing and expanding to fit the newest travel trends, and

tour companies can vary their focuses greatly, from whitewater rafting specialty tours to bus

tours of the Napa Valley wine country. Most tours, however, do fit into one of the following

major categories.

1. Sightseeing / Bus Tours

Land tours of this variety are the most common type of organized tour. They almost always

involve travel by motorcoach, overnight hotel lodging, and usually air transportation to the

tour departure area. Sightseeing guides are the quintessential guides – the ones easily

identifiable by their busload of tourists. Picture a dashing, blue- scarfed tour guide as she

take charge of the group, enlightens them on the history and geography of the area they are

visiting, stopping for a quick photo or video shot, then whisks them off to a new destination.

As noted earlier, tour areas can take place virtually anywhere in the world, although the most

likely travel areas for American tour companies are in North America. Popular destinations

include national parks such as Yellowstone and the Grand Canyon; the Canadian Rockies;

New England; and most large cities, such as New York and San Francisco.

2. Shore Excursion Tours

Some tour companies are affiliated with or even run by cruise companies. Passenger ships

like to offer their customers tours in the most interesting port of call, and hire tour guides to

give bus tours and narration of the nearby area. This arrangement is popular particulary in

Alaska, where several cruise companies run affiliated tour companies in towns like Juneau

and Valdez, and even run train tours to Denali National Park. Alaska tour positions are

usually seasonal, enabling students to work in Alaska without interrupting their school

schedules, although many student guides do end up taking some time off. Also, excursion

operators enjoy the advantage of living in more or less permanent location when tours

instead of being on the road most of the time.

3. Adventure / Sporting Tours

These types of tour companies have gained in popularity in recent years, many have begun

to specialize in particular types of tours and special interest clientele. Some tour companies

have begun to cater to a younger clientele with more active tour, and others are specializing

in everything from “eco-tours” to white rafting. There even “women-only” tours.


Tours emphasizing the environment niche in the tours industry. These companies offer both

land and sea-going tours, and the most popular new destinations are Central America, the

Amazon River, and Alaska. Seagoing companies sail small, yacht-style cruise ships to

Alaska, British Columbia, South Americaca, and various other wilderness destinations.

These trips are very unlikely the typical cruise trip, however. The ships usually hold only

about 100 people and shun traditional cruise ship trip entertainment. An eco-tour company

representative describes their mission :

“ Our ships offer an intimate, naturalist educational style of cruising. There are no

bands, dicos, magician, or casinos, just lots of sightseeing, hiking, and the lecturers

on local ecology, botany, zoology, and history.”

Tour Types Explained

Getting to know Tour Maintanance

Often it can be confusing when starting out to understand the differences between the tour

types. All the tours which are day tour, day tour with components, acoomodation, adhoc @

route (bus) are designed with a different purpose in mind. In choosing the type of tour, which

is required, it is important to understand what each tour type offers Some thinking also

needs to go into how the availability of the tour is to be driven (by room, or by tour departure

time)


Day Tour

Definition…

Any tour which needs;

A bus route associated to it and / or;

The availibility to be driven by the tour departure time.

Features…

Multiple departure time (schedule).

Multiple bus routes can be associated to each departure time (routes)

The cost & sell price is defined using the price matrix : Pax Type (P), Pax Type &

Basis (PB) or Pax Type, Basis & Sub Basis (PBS).

Can be used as a “stand alone” or as a component within another day tour or adhoc.

Invoicing – allows you to generate an invoice to pay the supplier of the tour (if it is not

you).

Rules…

Availability is driven by by departure times (schedule)

Advance Features…

Component Only tickbox – This changes the tours so you can not book it as a ‘stand

alone’, & it does not appear on sales reports. This is usually used when the

component is purely for invoicing puposes.

Day Tour – with components


Definition…

Any tour which needs:

A bus route associated to it and / or;

The availibilty to be driven by the tour departure time and / or;

Has a multiple of tours within it and therefore requires a series of components.

Features…

Multiple departure time (schedule).

Multiple bus routes can be associated to each departure time (routes)

The cost & sell price is defined using the price matrix : Pax Type (P), Pax Type &

Basis (PB) or Pax Type, Basis & Sub Basis (PBS).

The cost price will be driven from the sum of the tours within it.

Can be use as a ‘stand alone’ or as a component withn another day tour or adhoc.

Rules…

Availability is driven by departure time/s (schedule) and / or;

The availibility (Resources, Max Pax) of the tours within it.

Advanced Feature…

Can have Components – Allows the tour to be a compilation of tours and / or

accommodation. This allows you to share the availibility of the tours within it, and to

generate invoices to suppliers if you are using outside operators.

Accommodation

Definition…

Usually used for hotels, boats, car hire. Where the availability needs to be driven by

the basis (room type) and subbasis (bedding arrangements)

Feature…


Price matrix is defined per person, per night (not per room)

Within the booking you can define (and override) the number of nights (or days in the

case of car hire).

Can be used as a ‘stand alone’ or as a component within a day tour or adhoc.

No departure time, therefore bus routes cannot be associated.

Rules…

Availability is driven by the tours and / or accomodation added to it.

Route (Bus)

Definition

A pick up location can be allocated a pickup time when used for a particular tour. You

can use the same bus route for multiple tours if timing sequence of pickups is the

same.

Features…

Multiple departure time (schedule)

Can be used as a pick up and / or drop off route.

Route…

Availibility is driven by departure time/s only (schedule)


CHAPTER 6: TRANSPORTATION MARKETING

What is marketing?

According to Kotler and Armstrong (1991), marketing is a process whereby individuals and

groups obtain the type of products or goods they value. These goods are created and

exchanged through a social and managerial process which requires a detailed

understanding of consumers and their wants and desires so that the product or service is

effectively delivered to the client or purchaser. Within tourism studies, there has been a

growing interest in marketing (e.g. Middleton 1988; Jefferson and Lickorish 1991; Laws

1991; Lumsdon 1997a; Horner and Swarbrooke 1996; Seaton and Bennett 1996) compared

with transport studies, which has tended to employ marketers when required to deal with

such issues. More recently, new marketing-for-tourism texts have begun to incorporate

material on marketing transport services, although this usually tends to focus on airlines

(Seaton and Bennett 1996; Horner and Swarbrooke 1996). In transport studies, marketing

has assumed less importance than operational and organisational issues, but there is a

growing awareness that 'transport operators are seeking to augment their basic product with

add-on services that generate more income but also satisfy more of the consumers' needs'

(Horner and Swarbrooke 1996 : 319). Gilbert (1989) considers the growth and establishment

of marketing within tourism and the critical role of a consumer orientation among transport

providers. For example, British Airways explained its financial turnaround from a loss of 544

million pound in 1981/82 to a profit of 272 million pound in 1983/84 in terms of a greater

marketing orientation based on recognising customer needs and attempting to satisfying

them (Gilbert 1989). In this respect, marketing has a fundamental role to play in analysing

tourist transport. Within marketing, three key areas exist:

Strategic planning

Marketing research

The marketing mix

Strategic planning for tourist transport (based on Kotler and Armstrong)

Defining company mission.

Setting company objective and

goalsDesigning business

portfolioBusiness unit products

and marketing

Formation of a marketing strategy for a tourist transport service.


Strategic planning

Within any business or company, there is a need to provide some degree of order or

structure to its activities and to think ahead. This is essential if companies are to be able to

respond to the competitive business environment in which organisations operate. For this

reason, a formal planning process is necessary which is known as strategic planning.

According to Kotler and Armstrong (1991: 29) strategic planning can be defined as 'the

process of developing and maintaining a strategic fit between the organisation's goals and

capabilities it’s changing marketing opportunities’. Businesses need to be aware of their

position in the wider business environment and how they will respond to competition and

new business framework. To illustrate how strategic planning operates and its significance to

tourist transport, it is useful to focus on the structured approach devised by Kotler and

Armstrong (1991). As Figure 2.6 the first stage is the definition of an organisation's purpose,

which a company to consider:

Business is it in?

Who are its customers?

What services do its customers require?

Following the definition of purpose, a company may incorporate these principles into a

mission statement (see David 1989). This provides a focus for the company activities, as can

be seen in the case of BR's Passengers Charter, which identified the following alms as part

of its mission for customer service:

A safe, punctual and reliable train service

Clean stations and clean trains

Friendly and efficient service

Clear and up-to-date information

A fair and satisfactory response if things go wrong

Although a mission statement may be used for public relations purposes, as in the case of

BR, it is necessary to set objectives and goals. For example, the BR Passengers Charter

required the organisation to consider:

What were its business objectives?

Was it seeking to improve its market share of tourist travel by rail?

Was the overriding business concern to improve the financial turnover and profitability?

If so, what marketing objectives would need to be set to achieve these goals?

Was the overall marketing objective to improve the public image of BR and to emphasise

customer care and service standards?


Within this context, BR had to prepare a marketing strategy which acknowledged its

business and marketing objectives and identified the resource requirements to achieve

internal targets (e.g. achieving a greater market share of tourist travel) as well as the

implications for research, sales and promotion and how this translates into an overall benefit

for BR in a given timescale, such as a one-year or five-year period. Obviously, the

Passenger 's Charter was only one aspect of strategic planning for BR's passenger services

in 1992, but it does emphasise how important marketing and strategic planning are in

launching such a new business initiative. The next stage following the setting of objectives

and goals is termed the business portfolio. Here the company analyses its own products or

services In terms of its own business expertise and how competitors' products and services

may affect them. This is frequently undertaken as a SWOT analysis, which considers: (of its

products and services in the business environment.)

The Strengths

The Weaknesses

The Opportunities

The Threats

For those operators who may wish to develop a strategy which incorporates an element of

organisational growth and expansion, a number of options exist. As Horner and Swarbrooke

(1996: 325) show, these can be divided into:

Marketing consortia, where a group of operators cooperate to create and develop a

product such as the Euro Domino joint railway ticket, permitting rail travel on different

European railways.

Strategic alliances, where different businesses agree to cooperate in various ways. This

has varied by sector in the tourism industry, but may involve marketing agreements or

technical cooperation. However, in the airline industry, Gallacher and Odell (1994)

observed that 280 alliances existed among 136 airlines, 60 per cent of which were

formed after 1992. Hanlon (1996 : 201) outlined the nature of such alliances among

airline companies, which included joint sales and marketing; joint purchasing and

insurance; joint passenger and cargo flights; code sharing; block spacing; links between

frequent flyer programmes; management contracts; and joint ventures in catering,

ground handling and aircraft maintenance. The strategic value of such alliances is

reconsidered in Chapter 6, as they can result in 'horizontal alliances ... (involving) ...

firms selling the same product ... vertical alliances ... [being] ... those with suppliers,

distributors or buyers. And external alliances ... with potential entrants or with the

producers ... in other industries' (Hanlon 1996 : 204). The main concern for governments,

as Chapter 3 will show, is that the transport industry may be over concentrated among a


limited number of companies or consortia that could eventually lead to market

domination and higher prices. For example, Youssef and Hansen's (1994) study of the

Swissair and SAS alliance indicated that on the main hub Geneva - competition was

sever higher profits for the airlines on the hub to hub routes.

Acquisition, which is the purcl Scandinavian company Stena's a in the UK.

joint ventures, where operators seek to create new carriers.

Franchising, where major operaters use their market presence and brand image to

extend their influence further by licensing franchisees to operate routes using their

corporate log and codes (e.g. the British Airways agreement with Maersk, Air UK, Manx

Airlines and Loganiar)

Ancillary activities, the development of which adds value to the operator or organisation's

core business. For example, many Europeans ferry operators now offer inclusive tour

operations.

Marketing research

This process is one which is oft (Brunt 1996) but as the following definition by Seibert (1973)

implies, in reality it is a much broader concept associated with the gathering, processing of

information to facilitate and improve decision making. It incorporates various forms of

research undertaken by markets and business efficiency. The actual research methods used

to investigate different aspects of a company’s business ultimately determine the type of

research undertaken. The main types of research can be summarized into six categories. A

number of good introductions to marketing research are available and more recent books on

tourism are recommended as preliminary reading on this topic. Marketing research allows

the company to keep in touch with its customers to monitor needs and tastes which are

constantly changing in time and space. However, the actual implementation of marketing for

the tourist transportation ultimately depends on the marketing mix.


The Marketing Mix

The marketing mix is the mixture of controllable marketing variables that the firm uses to

pursue the sought level of sales in the target market. This means that for a given tourist

transport organisation such as an airline, there are four main marketing variables which it

needs to harness to achieve the goals identified in the marketing strategy formulated through

the strategic planning process. These variables are:

Product Formulation - the ability of a company to adapt to the needs of its customers in

terms of the services it provides. These are constantly being adapted to changes in

consumer markets.

Price - the economic concept used to adjust the supply of a service to meet the demand

taking account of sales targets and turnover.

Promotion - the manner in which a company seeks to improve customer’s knowledge of

the services it sells so that those people who are made aware may be turned into actual

purchaser. To achieve promotional aims, advertising, public relations, sales and

brochure production functions are undertaken. Not surprisingly promotion often

consumes the largest proportion of marketing budgets. For transport operators the

timetable is widely used as a communication tool, whole brochures and information

leaflets are produced to publicise product products. Some of the other promotional tools

used to increase include promotional fares, frequent flyer programmes and piggy-back

promotions, where purchasing one type of product such as the Sainsbury British Airways

promotion in the early 1990s.

Place - the location at which prospective customer may be induced to purchase a

service, the point of sale.

As marketing variable, production, price, promotion, and place are normally called the four

P’s. These are incorporated in to the marketing process in relation to the known competition

and the impact of market condition. Thus, the marketing process involves the continuous

evaluation of how a business operates internally and externally and it can be summarized as

‘the management process which identifies, anticipates and supplies customers requirements

efficiently and profitably.


CHAPTER SEVEN: ANALYZING THE DEMAND & SUPPLY FOR TOURIST TRANSPORT

Leisure travel has become a key feature of the leisure society which now characterizes

many developed countries. This growth in travel both poses its pros and cons. Pro – it gives

job opportunity, economic stability of the residents, opens up areas for tourism and as for the

cons, it can bring many challenges for the transport industry since understanding the

demand for tourist transport is a critical part of the strategic planning process for transport

operators and organizations associated with the management and marketing of transport

services for tourists.

At government level, accurate information on the use of tourist tranport infrastructure is

critical when formaulating transport policies and particularly assesing the future demand.

At the level of individual transport operators, it is necessary to have a clear understanding of

the existing and likely patterns of demand for tourist transport, to ensure that they are able to

meet the requirements of tourists.

This means that for transport providers, high quality market intelligence and statistical

informationa are vital in the strategic planning process and day-to day management of

transport, so that services offered are responsiveand carefully targeted at demand, cost

effective.

Forecasting the Demand for Tourist Transport

Forecasting the demand for tourist transport is essential for commercial operators. Reliable

forecasts are essential for managers and decision makers involved in service provision

within the tourists transport system to try and ensure adequate supply is available to meet

demand, while avoiding oversupply, since this can erode the profitability of their operation.

Forecasting is the process associated with an assesment of future changes in the demand

for tourist transport. Forecasting is a technique used to suggest the future pattern of demand

and associated marketing activity is required to exploit the market for tourist transport

services.

Let’s take this as an example…what are the future forecast for the following groups’s

transportation choices?

Senior market

Business travel


Young adults

The supply of transport referred to;

Manpower

Knowledge and skills

Capital

Land

Tourism & Transportation Management

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