1. Introducing the World’s Largest Industry, Tourism
Chapter One:
Introducing the World’s Largest Industry, Tourism
TMT tourism resume.
How many students have worked in the tourism/hospitality industry?
- Class discussion
Who is majoring in Tourism/Resort Management?
What do you want to get out of this course?
Fill out index cards.
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved

2. Learning Objectives
Understand and explain the basic definition of tourism
Identify the major participants and forces shaping the tourism industry
Explain the historical factors that encouraged the development of tourism
Explain the impact of physical, human, and regional geography on tourism activities
Explain why tourism should be studied from marketing, management and financial perspectives
Identify future challenges and opportunities facing the tourism industry
Discuss career prospects in the tourism industry
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved

3. Services and Tourism Service and Tourism go hand in hand
Growth rate of services sector faster than any other
Tourism is the leader in the production of new jobs
Tourism has developed an important part of the economic foundation of many countries
Components of Tourism; transportation, accommodations, food and beverage, attractions, entertainment, activities, and management of all of these.
Tourism related businesses are the leading producers of new jobs worldwide.
Tourism in Kenya is the leading producer of foreign currency; followed by coffee and tea. Safaris and Indian Ocean beach vacations.
Tourism has proven to offset economic declines; seldom goes into a deep recessionary decline-people have to have their vacation activities.
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved

4. What is Tourism?
“Tourism is the temporary movement of people to destinations outside their normal places of work and residence, the activities undertaken during their stay in those destinations, and the facilities created to cater to their needs”
Class discussion; how would you define tourism? See Fig 1.1 Elephant.
People taking trips away from home (business and/or pleasure) and the industry which has developed to serve them.
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved

5. A Tourism Model Dynamic and interrelated nature of tourism
The traveling public (tourists) are the focal point (heart) of the model
Tourism promoters link the traveling public with the suppliers of services
Tourism suppliers provide the services that tourists need when they travel
External forces affect all participants in tourism; tourists, promoters and suppliers
Figure 1.2 O/H.
External factors
Service suppliers
Promoters
Travelers
All inter-related
Vail cut back re Iraq.
Gulf war
9/11 impact on Tourism
Problems in Israel
Economy
Promoters provide information and other services;
Suppliers provide services. Cooperate and compete.
External Environment sets the Tourism agenda/atmosphere.
Don’t operate in a vacuum.
Internet having a profound effect on the model. Traveler much more knowledgeable!
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved

6. The History of Tourism Early travelers migrated for food and hunting
Phoenicians, Olmecs, early Chinese traveled for trade and military control
The Empire Era
Affluent population with time and money to travel
Safe and easy travel
Widely accepted currencies
Widely used languages
Legal system which protects personal safety
Table 1-1 O/H
Seasonal for survival. Curiosity
Egyptians; seasonal celebrations
Trade routes; Shang Dynasty, Phoenicians
Empire Era; Egypt, Greece, Roman Empire BC-300AD. Nile river. Greek city-states, acceptable currency, common language. Roman Empire-good roads (50,000 miles), inns 30 miles, common currency, language,
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved

7. The History of Tourism, continued
The Middle Ages (5th to 14th centuries) and the Renaissance Era (14th to 16th centuries)
Transportation and safety declined
Less acceptance of currencies and less knowledge of common languages
Some travel by crusaders to Holy Land
Marco Polo’s historic travels in the late 13th century
Increased interest in travel for commerce and pleasure
Middle Ages; AD travel almost disappeared! Roman Empire replaced with feudal system. Fragmentation of roads, currencies and languages.
- 9 Crusades; ; attempts to take the Holy Land from the Muslims. All failed. Instilled a desire for travel
Marco Polo ( ); Middle East and China.
Renaissance Era; Merchant travel, more geographic control, trade routes developed,
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved

8. The History of Tourism, continued
The Grand Tour Era (1613 to 1785 A.D.)
Trend of luxurious travel started by wealthy English
Developed as a status symbol and spread throughout Europe
Goal was to experience the “civilized world” and study the arts and sciences
These travels often lasted for several years
Growth in travel for business reasons
Started by British and spreads thru Western Europe.
Favorite countries were Switzerland, France, Italy and Germany.
Industrial Revolution 1750
- Moved from agriculture to industrial commerce.
- More efficient forms of transportation.
- Integration of markets across geographic and international boundaries.
- Higher personal incomes.
- Travel became a business necessity.
- Days of extended travel faded away.
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved

9. The History of Tourism, continued
The Mobility Era ( )
Growing economic prosperity
Increase in systems, modes, and speeds of travel (roads, railroads, steamships)
Thomas Cook developed tour packages for mass travel
Invention of automobile and airplane expanded freedom to travel
Advent of leisure time.
Availability of affordable travel.
Get away from jobs.
New forms of transportation; roads, trains, ships.
Thomas Cook in 1841 organized the first tour group; 570 to attend a temperance rally in Leicester, England.
Wilbur and Orville Wright’s first flight in 1903.
Henry Ford’s Model T in 1914
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved

10. The History of Tourism, continued
The Modern Era (1945 to present)
Paid vacations introduced in the early 1900’s made leisure travel possible for working and middle classes
Millions of people were introduced to international travel during World War II
Postwar prosperity made mass ownerships of automobiles possible
Advent of jet travel shortened travel time
Time, money, safety and interest in travel led to unparalleled growth of tourism
Development of mass tourism
George Westinghouse created the first paid vacation in ???
World War II; 17 million US and Canadian citizens exposed to many different cultures. Wanted to share with family and friends.
Lifting of gas rationing caused a large increase in car demand.
Prosperity returned to industrialized countries..
Diner’s Club card in Credit around the world; reduced the hassle of foreign currency.
Jet travel in the 1950’s
Mass Tourism;
- Group Tours; packaged tours with planned itinerary.
- Individual mass travelers; popular attractions and Tourism services marketed thru mass media.
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved

11. Bringing Tourism into Focus
Typical reasons for travel
Vacation and leisure trips
Visits to friends and relatives
Business and professional trips
Host community affected by tourism
Can study tourism from a variety of perspectives
Wide variety of questions relating to tourism need to be answered
Technology having unprecedented affect on tourism industry
Figure 1.4-O/H
Continued growth of international tourism may well be the world’s peace industry.
We still have the sense of curiosity and adventure.
Geography, business management, anthropology, sociology, economics and psychology.
See list of questions on page 15.
The Internet is changing the way tourism services are sold.
And automation/technology is being adapted for new uses.
Tourism flourishes when:
- Individuals have time and money to travel.
- Travel is easy safe and inexpensive
- Currencies are easily exchangeable
- Common languages are spoken
- Legal systems create personal safety
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved

12. Geography Describes the Traveler’s World
Physical geography- study of natural features of region
Human geography- study of a region’s cultures and peoples
Regional geography-combination of physical and human geography
Helps answer why people desire to travel to different places.
Physical geography creates an environment that can either encourage or discourage tourism activities.
- Mountains for skiing.
- Beaches for sun and surf
- Changes with the seasons
- Accessibility
Human geography; the culture of dress, language, food, arts, crafts can enhance the tourism experience.
- Economics and politics can play an important in tourism; European Common Union.
Regional geography; physical and human geography come together.
- Large population centers with good transportation systems create high levels of tourism.
- Climate, time of year and proximity to large bodies of water.
- Regions can play an important part; Rocky Mts., wine regions, Riviera.
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved

13. Studying Tourism from Business Perspectives
Marketing
Management
Finance
Marketing concepts provide insights into why people travel and how best to meet their needs.
Management concepts provide insights into the processes needed to meet travelers’ current and future needs.
Financial concepts provide the tools needed to understand, design and supply profitable levels of visitor services.
Marketing; create and deliver desired levels of good and services.
- The marketing concept; understanding and meeting the needs of the customer.
- The marketing mix; product, price, place and promotion. (ask students to give examples of the 4 P’s)
- Market segmentation; individuals, families, young, old, business, groups, etc.
Management; a unified approach to planning, organizing, directing, and control present and future actions to accomplish organizational goals.
- Keeps the organization moving in the desired direction.
- Example in text of planning a group trip.
Finance; the management of resources, revenues and expenses.
- Businesses main objective is to ethically and morally make a fair profit from the sale of goods and services.
- Language of business is accounting; the accounting cycle reports and analyzes business results. Internal and external reports. See Figure 1.8
- Margin, turnover and Leverage; see Figure 1.9
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved

14. Tourism’s Challenges and Opportunities
Encourage growth of tourism as it creates jobs and brings money into the community or country.
It also serves an important need for the consumer.
May change social structure
Unplanned tourism can lead to excessive demands of transportation, public services and degrade the environment.
How to avoid environmental problems?
What will be the impact from technology?
As we move toward a world economy will tourism increase?
Will tourism have positive effects on the culture of communities and countries?
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved

15. Where do you fit in? Projected to remain the world’s largest industry.
Travel and tourism sales will grow at a rate of 4.1% a year through the year 2020.
Have the choice of working in a really fun place!
See Table 1.3
Sean example.
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, All Rights Reserved