1. AICE Travel & Tourism Terms & Concepts Review
Chapters 1, 2, 3, 5 and 8
*This will cover a lot of the material but not all of it. Refer to the PDF chapters online to review more intensively

2. Chapter 1: Features of the Industry
Key Terms
Domestic: Traveling within a countries boarders
International: Traveling outside of a countries boarders
Outbound: Going from
Inbound: Going to
Accommodation: Hotels, Building, RV, Boat, etc…
Niche Market: Specialized interests activities which appeal to a particular sector of the tourist mkt.
I.C.T: Information Communication Technology
M.I.C.E: Meetings, Incentives, Conferences, Exhibitions
VFR: Visiting Friends and Relatives

3. Fill in the Blank
In, Europe the ________________were created following a European directive, which answered numerous complaints throughout Europe, of the lack of redress a consumer had in a package holiday contract.
Package Travel Regulations

4. Fill in the Blank
__________________ has had the most impact on holiday consumer protection
Regulation 15

5. Fill in the Blank
These focus on interests and activities which appeal to a particular sector of the tourist market _____________________
Niche Markets

6. Responsible Tourism
Responsible Tourism emphasizes that all stakeholders are responsible for the kind of tourism they develop or engage in.

7. 5 Main Types of Travel
Car
Rail
Coach
Air
Water

8. Travel Agencies & Tour Operators
The purpose of a Tour Operator is to “package the deals together”
For example: The cost of transportation, accommodations, food, etc will all be included for one lump sum.
The Tour Operator then gets the “packaged deals” to the Travel Agencies which are then sold to the consumer/tourist(s).

10. Seasonality, Perishability, Intangibility
Seasonality: demand for various tourism products and services will vary throughout the year.
Perishability: travel and tourism service products, unlike other products such as manufactured goods, cannot be stored for sale on future occasion.
Intangibility: cannot be demonstrated or easily evaluated before its purchase. No testing or sampling

11. Rostow Model of Development

12. Groups of Travelers
Money rich, time poor: interested in a wide range of high style, high fashion, short breaks – city culture, total relaxation, the exotic.
Money and time rich: Successful business men and women who are now retired with lots of cash.
Money and time poor: interested in a wide range of affordable holidays, often in the domestic mkt.
Money poor and time rich: often retired, interested in inexpensive trips. Backpacking, hiking, biking, etc…

13. Five Types of External Factors
Legislation - ex/ the package regulations
Role of local authorities & government – ex/national and local governments can exercise influence on the development of that country’s tourism industry.
Fluctuations in currency – ex/Currency exchange rates have a significant effect of the decisions made by both international tourists, suppliers, etc.
Climatic change & natural disaster - ex/ The threat of climate change puts tourism at risk in many destinations and important mkt changes could result.
War, Civil unrest, terrorism, and crime – tourists have been involved in both violent and non-violent crimes, usually have extra money on them. After 9/11 people were less inclined to travel to New York city due to the terrorist attacks.

14. The 6 Sub-sectors of Travel & Tourism
Transportation
Attractions
Accommodation and catering
Tourist Info & Guiding Services
Tour Operators
Travel Agents

15. Private, Public, and Voluntary Sector
Private Sector – Operate Solely for a profit. Most businesses operate in the private sector.
Public Sector – Government funded organizations that provide a service to both the local and visiting populations
Voluntary Sector – Applies to those organizations that are not directly controlled by the state and nor do they operate solely to generate profit.

16. Chapter 2: Management and Development of Tourist Destinations
Is tourism attempting to make a low impact on the environment and local culture, while helping to generate future employment for local people.
Sustainable Tourism

17. Principles of Sustainable Destination Management
It is about managing the visitor impact on a local destination’s economy, social fabric and physical environment in a way which benefits everybody, residents, businesses, landowners and visitors alike, both now and in the future.

18. The Triangular Relationship
The Host Population – the local people living in the destination
The agents of tourism development – the various public, private and voluntary organizations that are present in the destination
The tourists – who come to visit the destination

19. Government Policy Aims (pg. 39)
Economic
Tourism can boost employment creation both indirect and direct.
Generates increased foreign currency earnings
Contributes to countries balance of payments and GDP.
Tourists who spend money contributes to the Multiplier effect

20. Government Policy Aims (pg. 39)
Political
Tourism can help to enhance the image of an area is important to the government of LEDCs or of countries that may be perceived in a negative way due to war or natural disasters.
Governments can claim credit for helping to create a regional or national identity that boosts domestic morale and encourages increased visitor numbers.

21. Government Policy Aims (pg. 39)
Socio-cultural
Tourism can help to promote understanding between the cultures of visiting tourists and the local population.
Can help improve the quality of life for the local population by:
Providing facilities that can be used by both locals and tourists.
Can help create a sense of pride in their national and/or regional identity

22. Government Policy Aims (pg. 39)
Environmental
Tourism can help with the regeneration and conservation of the built and natural environment.
A concern for environment can stimulate improvements for the benefit of the local people

23. Fill in the Blank National Tourism Policy Goals
Government development strategies can combine previous aims and objectives (Economic, Political, Socio-cultural, Environmental) to produce ___________________________.
National Tourism Policy Goals

24. Impacts of Tourism Development
V.I.C.E
Visitor, Industry, Community, Environment

25. V.I.C.E
Idea behind the VICE model of destination management is the need to achieve a balance between:
A prosperous tourism industry which sustains jobs and the local economy
The environment and social pressures from increased number of visitors which could undermine the quality of life and the resources on which the industry itself depends.

26. Fill in the Blank
Illustrates the ways in which any new economic activity can lead to prosperity and increasing economic development within a destination which has some form of initial advantage.
Multiplier effect

27. Positive economic impacts of tourism
An important indicator of the role of international tourism is its generation of foreign exchange earnings.
Some countries seek to accelerate growth by requiring visitors to bring in a certain amount of foreign currency for each day of their stay.
Tourism is on the top five export categories for as many as 83 percent of countries

28. Direct & Indirect Employment
Tourism can generate jobs directly through hotels, restaurants, nightclubs, taxis, and souvenir sales, and indirectly through the supply of goods and services needed by tourism-related businesses.

29. Tourism Facts Tourism supports over 10% of the world’s workers.
Money is earned from tourism through informal employment
Examples: Street vendors, informal guides, rickshaw drivers

30. Negative economic impacts of tourism
Richer countries are often better able to profit from tourism than poorer ones (LEDCs)
Leakage from a destinations economy can take place in a variety of ways.
Thailand tourism faces economic leakage (refer to pg. 46 for example)
Tourism can cost the government and taxpayers a great deal of money.
Real estate development and increasing costs can make it tough for locals that live in tourist areas to remain living there.

31. Tourism and Economic Development
Good Example: St. Helena in the Southern Atlantic Ocean (pg. 47)
One of the most remote places on earth.
Lack of natural resources
Utilizing tourism as a key driver in economic development
Had an airport constructed to make air transportation another option besides water transportation. (More ways to go to and from)
Should help grow the economy increased foreign exchange earnings ultimately

32. Socio-Cultural impacts of tourism
Four Important Factors that influence the extent to which tourism creates particular types of cultural impact within destinations:
The types and numbers of tourists
The relative economic importance of the tourism industry
The size and stage of development of the tourism industry
The pace of tourism development

33. Positive socio-cultural impacts of tourism
Preservation of customs and crafts
Provision of community facilities and public services
Aiding of international understanding
Encouraging travel, mobility and social integration.

34. Negative socio-cultural impacts of tourism
Conflicts with the host community
Crime
Loss of cultural identity
The Demonstration Effect
Changes to family structure
Social problems (Begging, Prostitution, Vandalism)

35. Positive Environmental Impacts
Positive Impacts – improved assets, landscaping, conservation, regeneration and compliance with building regulations.
Tourism can significantly contribute to environmental protection, conservation, and the restoration of biological diversity and to the sustainable use of natural resources.
Promotes the idea of ‘Ecotourism’

36. Negative Environmental Impacts
Negative impacts –
Traffic congestion
Erosion of natural resources
Pollution of air and water
Litter
Increased in noise levels
Destruction of wildlife systems and breeding patterns

37. Carrying Capacity
Maximum number of people that may visit a tourist destination at the same time without causing destruction of the physical, economic, socio-cultural environment and an unacceptable decrease in the quality of visitors satisfaction’

38. Different Types of Tourist Destinations
High density recreational areas
General outdoor recreational areas
Natural environments or established wilderness areas
Unique areas of outstanding natural beauty or scenic grandeur
Primitive areas of undisturbed wilderness

39. Sustainable Development
Responsible tourism is a pathway to sustainable tourism.
Responsible tourism and sustainable tourism have an identical goal, and that is sustainable development.

40. Tourism Area Life Cycle (TALC) model Butler model of destination evolution
Changes in the evolutions of destinations
Exploration
Involvement
Development
Consolidation
Stagnation
Decline versus rejuvenation

41. CHAPTER 3: Principles of Customer Service
The term customer service is now applied to any aspect of an organizations dealings with its various clients.
Excellent customer service means consistently exceeding expectations of customers rather than just meeting them.
Travel and tourism industry is highly competitive because of a large number of organizations provide similar products and services.

42. Steps a tourist might go through during a holiday…
Initial contact with a travel agent when planning or booking a trip
Dealings with airport staff and flight cabin crew during the journey
Using the services and facilities of the hotel staff during the stay
Seeking the help and advice of the resort representative
A poor standard of service by any of these would lower the value and satisfaction of the holiday product in the mind of the customer

43. The Key Dimensions of Service
Reliability – the ability to perform the promised service dependably and accurately.
Responsiveness – the willingness to help customers and provide prompt service.
Assurance – the knowledge and courtesy of employees and their ability to convey trust and confidence in dealing with a request.
Empathy – the caring, individualized attention provided to the customer.

44. Some implications of poor customer service delivery…
Customers not getting information they need
High staff turnover because employees do not feel valued
Inefficient and unhappy workforce
Loss of income to the organization because of cancellations or customers not returning
Not meeting customer expectations, ultimately leading to less customers visiting the organization

45. Zones of customer experience
Zone of Outrage – The customer is upset by the very poor service
Zone of Dissatisfaction – The customer is unhappy with service
Zone of Satisfaction – The customer is satisfied/happy with service
Zone of Delight – The customer is very happy with service because their expectations have been exceeded

46. Moment of Truth
Every time a customer interacts with a travel and tourism organization and experiences any of its operational procedures can be thought of as a ‘Moment of Truth’.

47. Customer
A customer is anyone who has the right to ask or expect an employee to provide a service as part of their job role.

48. Internal & External Customers
For most employees within Travel, Tourism, and Hospitality organizations this means that they will have to deal with two types of customers at work – internal and external

49. External Customers
External Customers are an organizations visitors or users.
Individuals
People with children
Foreign visitors
Members and non-members of travel organizations
People with specific needs, etc…

50. Internal Customers
Internal customers are members of staff within an organization or an organization’s suppliers who contribute towards the service provided to external customers.
Immediate colleagues and those in other departments
Management and supervisors
Employees of other organizations (ex/ retail outlets at an airport are internal customers of the airport)

51. Meeting Customer Needs
Maslow’s Hierarchy of Human Needs

52. Different Generations have different Characteristics
Baby Boomers ( ) – ‘getting older, thinking younger’
Generation X’s ( ) – this group are technologically competent, independent and flexible
Generation Y’s ( ) – this group are sociable, goal- oriented and highly familiar with digital media

53. Tourist family lifecycle (in order)
Early childhood
Early teenage
Young person
Partnership stage
Family stage-late
Family stage-early
Empty Nest
Retired

54. T.I.C (Tourist Information Center)
People that are likely to come into a TIC, they will tend to be a mix of:
Families, singles and couples, some with particular disabilities
Older, middle-aged and young
Backpackers, campers, or five star hotel clients
From local areas or overseas destinations
Those interested in nature, nightlife, shopping or cultural experiences

55. Internal Customers have Needs as well…
If you were a manager and you’re happy with your staff’s effort you should tell them; if you’re not happy you should tell them. (Constructive Criticism)
Ways TIC managers may reward their staff:
Implenting staff swap programs with other TICs
Organizing morning breakfast to thank staff
Paying for attendance at industry conferences and workshops
Organizing familiarization trips to other regions
Having incentives such as “employee of the month” awards

56. Interpersonal Skills/Soft Skills
Interpersonal Skills are also known as
Communication skills
People skills
Soft skills
How we deal with others can greatly influence our professional and personal lives, improving these skills builds confidence and enhance our relationships with others.

57. Examples of Soft Skills
Some basic company standards employees should adhere by could include:
Posture
Look and Listen
Expression
Appearance
Speech
Eagerness

58. Customer Service Training for Staff
Professionalism and skill in the service encounter
Staff attitudes and behavior
Reliability and trustworthiness of staff
Recovery of a situation when things go wrong
Ensuring that the organizations brand image has a reputation and creditability
Customers being able to access staff and feeling they are able to help

59. Stages of Staff Development
Stage 1 – Waits to be told
Stage 2 – Asks what to do
Stage 3 – Recommends what to do
Stage 4 – Takes action, reports immediately
Stage 5 – Take action, reports routinely

60. Assessment of the quality of customer service
Most international travel, tourism and hospitality organizations have a range of informal and formal quality assurance systems to support meeting the needs of customers and to evaluate the effectiveness of their customer service provision.

61. Benchmarking
Is the process of identifying the best practice in relation to customer service identity.
“Studying practices used in a rival organization” (Ex/Target vs. Walmart)
Looking to see how others achieve their performance levels and to understand the processes they use.

62. Benchmarking: 4 Key Steps
Understanding in detail all exsisting customer service processes within the organization
Analyzing the customer service processes of others (Target vs. Walmart)
Comparing own customer service performance with other competition.
Implementing the steps necessary to close the performance gap
(Example: Maybe your organization will implent a ‘price match guarantee’ to compete with competitor pricing)

63. Observation
Opportunity to collect feedback about an organizations customer service procedures.
The activities of the personnel performing the duties can be observed by a member of management and a note made of any particular aspects that need further consideration and development.

64. Surveys Quantitative Data and Qualitative Data
In order to achieve customer satisfaction , organizations must in some way meet the needs and wants of their customers.
In an organizations survey they may ask questions that involve the customer to answer questions in a quantitative or qualitative manner.
Rating service features with 1 being the lowest and 10 being the highest ranking would be quantitative data.
Asking a customer to provide details how the organization could improve would be qualitative data.

65. Suggestion Box Usually placed randomly throughout an organization
Gives employees and customers an opportunity to let that organization knows ways in which they could improve
Suggestion boxes are often quick to implement as they require relatively little infrastructure and pre-planning

66. Mystery Shoppers
Mystery Shoppers are a tool used externally by market research companies or internally by companies themselves to measure quality of service
Mystery consumer specific identity is generally not known by the establishment being evaluated.
Mystery shoppers will:
Purchase products, ask questions, register complaints, behave in a certain way…
Then they will provide a detailed report or feedback about their experiences.

67. CHAPTER 5: Ecotourism

68. Ecotourism: What is it?
Ecotourism Society defines it as “responsible travel to natural areas which conserves the environment and improves the welfare of the local people”

69. Specialized Tourism: 3 Distinct Sections
Ecotourism
Cultural tourism
Adventure tourism

70. Features of Ecotourism
Economically feasible
Socially responsible
Culturally aware
Environmentally friendly

71. Where the term ‘Ecotourism’ came from…
Hector Ceballos-Lascurain is credited with coining the term ‘ecotourism’ in 1983 when describing a new form of nature travel.
Since that time definitions to describe ecotourism have been:
Responsible tourism
Green tourism
Humane tourism
Nature tourism

72. Supporters involved in ecotourism projects
Hosts
Public Sector
Private Sector
Voluntary Sector
Destination

73. Contribution of ecotourism to cultures and beliefs
Different links to culture to be considered:
Language
Traditions
Gastronomy
History
Religion
Education
Dress
Handicrafts
Art & Music
Local Work
Architecture
Leisure Activities
Ancient and historical Sites
Marine and coastal environment
Inland environment and habitats
Biodiversity & Endangered species
Energy Systems
Water Supplies & Waste Disposal

74. Chapter 8: Planning and managing a travel and tourism event

75. Business Plan Should include: A description of the event
Objectives and timescales
Resources needed (physical, human and financial)
Legal aspects of the event (health and safety, security, insurance)
Methods to be used to evaluate the event

76. Feasibility Studies
A thorough investigation into the viability of the event
This is to ensure that informed decisions can be made and help to prevent mistakes and problems occurring when event is running.

77. CAGR Compound Annual Growth Rate
Refers to the year-over-year growth rate of an investment over a specified period of time. The compound annual growth rate is calculated by taking the nth root of the total percentage growth rate, where n is the number of years in the period being considered.

78. SWOT analysis
Strengths
Weaknesses
Opportunities
Threats

79. SWOT analysis
SWOT analyses are used by businesses and many marketing departments whilst they are planning a business venture or campaign.
It aids with consideration for all the issues that may affect a promotion, event or campaign – both positive and negative.

80. SWOT Analysis Strengths and Weaknesses are internal factors
Opportunities and Threats and external factors (factors that are beyond the control of the organization)
SWOT is an important tool to assist an organization in its planning and promotion of certain goods or services.

81. Mission Statement
The purpose of a mission and/or vision statement is:
A phrase or sentence that sums up exactly what is to be achieved and why. A mission statement can help focus and make clear the intentions of the group and assist with clarifying overall aims and objectives.

82. Mission Statement
Example: Jebel Ali International Hotels Mission Statement:
“To take real pleasure in welcoming you in to our space, where we capture the generous spirit of heartfelt hospitality, a space where we take pride in the grandest of gestures and the smallest of details. This is a place where everything is taken care of, and where you can truly feel that you have arrived”

83. Aims and Objectives
Aims and Objectives for the event should be clearer when the mission statement is complete.
All Aims and Objectives should follow a SMART criteria.

84. SMART Specific – clearly applicable to the chosen event
Measurable – can be assessed for its effectiveness
Achievable – an event that can be easily completed within the time and deadlines
Realistic – can be achieved within the financial guidelines
Time-framed – deadlines and the stages that are taken towards the finished event are achievable

85. Staffing the Event: Roles (pg. 253)
Chairperson or coordinator
Marketing Rep
Finance Rep
Health and Safety and Security Rep
Administration Rep

86. Teamwork
Team Definition from AICE:
People working together in a committed way to achieve a common goal or mission. The work is independent and team members share responsibility and hold themselves accountable for attaining the results.

87. Tuckman’s model of team building

88. Tuckman’s model of team building
Forming – is where team is gathered together and tasks allocated.
Storming – this is where ideas are progressed.
Norming – stage where teams become harmonious and they are able to agree on the rules and standards on how they operate.
Performing – stage where the team are clearly aware of the task.
Adjourning – stage seen as the completion of the group’s event or task.

89. Types of Leadership Autocratic leadership Democratic leadership
Bureaucratic leadership
Laissez-faire leadership

90. Team Performance Curve: 5 Stages

91. Team Performance Curve: 5 Stages
Working group – the members of the group come together.
Pseudo team – team is located at the bottom of the curve and is therefore the weakest of the five levels.
Potential team – this type of team shows real gain in productivity and performance.
Real team – consists of a small group of people who share common purpose, goal, and approach to work
High performance team – same characteristics of real, but are profoundly committed to each other and are mutually accountable.

92. Marketing Mix: The 4 P’s Product – The event
Price – Cost of planning and running the event
Place – Two aspects for place one is the physical location, the other is the chain of distribution used to get the product to the customers
Promotion – The methods used to get the message across to the customers. (advertising, press releases, broadcasting, internet, etc…)

93. Finance Funding sources can/will vary greatly
Sponsorships, businesses, individual contributions
Assistance may not always be in the form of direct cash…
Facilities
Equipment
Human resources
All examples of other ways to save money and help with the running of the event

94. Finance
Funding allocation - expenditure for each aspect of the event must be carefully recorded.
Sufficient funds must be available in order that payments can be made.
Contingency funds must also be considered should there be any unexpected costs.
Appropriate insurance coverage or contingency funds necessary.

95. Finance Income and Expenditure
The event organized may not incur many costs but it is important that a budget for the event is produced.
Many times extra costs can occur and it’s important to readjust your budget accordingly
Some events simply run to ‘Break Even’ where all income matches expenditure

96. Finance Cash Flow Linked to event timescales
Tells organization or event manager how much money is in the bank at any one time. It will show the amount of surplus or deficit on received funds/income less expenditure made.
A cash flow forecast reflects anticipated timings of income and expenditure and resulting balance figures.

97. Financial Documents used while organizing an event
Invoices – official document that requests payment for goods/services.
Purchase order statements – provides details of goods/services requested.
Cheques – form of payment that instructs a transfer between accounts to a bank account.
Receipts – written evidence of payments received.
Quotations – written details of goods or services with anticipated costs for the stated goods or services usually within/valid a certain time limit.

98. Financial Documents used while organizing an event (continued)
Delivery Notes – evidence of goods received usually signed and dated
Ticket Stubs – evidence of tickets sold.
Bank statements – these are issued by the bank showing the latest transactions that have occurred in the form of income and expenditure from a particular account over a period of time.

99. Business Plan
An event summary – overview of the business you want to start
Short description of the event – who you are, what you plan to offer, why and to whom
Your marketing and sales strategy – why you think people will buy into your event, what you want to sell and to whom and how you plan to sell to them
The team – the people you plan to work with (including yourself)
Operations – where the event will take place, production facilities, your management information systems, staffing, resources, procedures and IT.
Financial forecasts – this section translates everything you have said in the previous sections into numbers
Evaluation – methods to assess success or failure. This form is from a personal perspective, team reflections and group interaction.

100. GANTT Chart
Event Timescale
GANTT - chart in which a series of horizontal lines shows the amount of work done or production completed in certain periods of time in relation to the amount planned for those periods.

102. Risk Assessments & Contingency Planning
Risk assessments and making a contingency plan or ‘Plan B’ are essential for the safe and realistic organization of any event.
Contingency plans should be included to respond to problems that could arise during the event.
Example – If your event is outdoor, what is your backup plan if the weather gets bad?
Contingency plans simply address the “what if” scenario.

103. Rating Risk To obtain the Risk Factor Score:
Take the score for the likelihood and multiply it by the severity score.
A “4” for likelihood and “5” for severity = ____ risk factor score?

104. Review Review these slides
To really prepare yourself for the end of the year exam PRINT these slides out with “Notes” next to each slide
The AICE exam is June 8th at 8:15 AM!
DO NOT MISS THE EXAM OR YOU WILL NO LONGER BE ABLE TO TAKE AICE EXAMS!