Author: Andre Coleman

TUI is one of the leading tourism industry across the Europe started since 1997. TUI is the worlds leading travel group which operates in approximately 180 countries worldwide and provide more than 30 million consumers in over 27 base markets. The employees in the TUI travel group are approximately 65,000 and operate a pan-European airline consisting of 146 aircraft. The company mainly serves the leisure travel customer and is organised and managed through four business sectors which are Mainstream, Specialist & Emerging Markets, Activity and Accommodation & Destinations. In the financial year ended 30 September 2009 TUI Travel had revenues of ?13.9bn and an underlying profit before tax of ?366m.

They are providing their services of travel and entertainment to millions of customers in different regions and as well as in different well reputed hotels worldwide. It owns travel agencies, hotels, airlines, cruise ships, retail stores, and container ships. TUI is offering their services in different and easy way through range of high street outlets and online services and as well as different travel agencies for the convenience of their customers. Therefore TUI has become one of the European well known and reputed tourism industries.

Environmental analysis:

TUI environmental analysis can be possible by using different analytical tools such as PESTEL, SWOT and Porter’s five forces. TUI environmental changes can be analysed in both external and internal to investigate how TUI achieved and maintained their leadership in the European tourism industry. However ANSOFF matrix can be useful for the TUI future implication. Furthermore, to talk about the limitations of the analytical tools is part of the report as well.

P.E.S.T.E.L analysis:

TUI external environmental analysis is done by the PEST one of the analytical tools. The PEST is used to analyse Political, Environmental, Social and technological factors of the TUI industry.

Political Analysis:

It includes range of political issues in which terrorist attacks are the major issues which enables government to put restriction on in some regions and also some insurance denied to cover their insurance if travel to these regions. These attacks also results in tight security and immigrations laws which also highly affect the tourism industry. In addition political instability not only affect the tourism industry of particular country but also many other countries nearby.

Economical Analysis:

It analyzes different and wide range of economical issues such as exchange rate, globalisation, oil prices and recession which highly affect the tourism industries. According to Galleggo et al 2007 that exchange rate plays a key role in international business and this highly impact on tourism industries for instance the difference between Pound sterling and Euro exchange rates can affect the tourism from UK into different other European Union countries. The globalisation gives many chances and very useful for international business and particularly for tourism industries to enhance them through many travel agencies and hotels worldwide. (Munoz 2005).

As discussed by Wahab and Cooper 2001 that companies have low barrier for entry to market and take over other companies so then the threat to tourism from globalisation is the tough competition and maintain the quality of the services which they provide to the customers. Porter 1980 stated that when the barrier to entry is low the competition will tough for the company in new market. Aviation and oil prices also impact on the tourism industries. The recent economic disaster is one of the causes of falling down the tourism industry but on the other hand it is a chance for other well stabled companies in market to attract customers. Although, the last economic crises report could be expected and take into account that tourism contributes 10.6% of world GDP (refer case study).

Social analysis:

This factor totally belongs to the life style and behaviour of the customers towards buying a product. Therefore tourism agencies offer a modified holiday packages and online booking services for the convenience of the customers. In additions, consumers are very responsive to environment and are more attracted to those companies who are offering better environmental policies. Another social factor is the brand awareness among the customers and majority of the customer trust in the company’s brand name hence brand loyalty can be the result of past services provided by the company to consumers.

Technological analysis:

Technology and tourism are two of the most dynamic motivators of the emerging global economy. It quite clear from the Office for National statistics 2009 that majority of even household people relying on the internet and have got the access to it. That is the reason that online sales are growing day by day. As described by Porter 2001 that internet has a low barrier of entry and online sales make it easier for customers and companies to cut down their costs by reducing staff and other intermediaries but on other hand it has a threat for the companies because newcomer can easily come into the competition. Another major threat for the tourism industry is televisions which enable people to watch different tourist places live and avoid them from travelling.

Environmental analysis:

An increased emission of carbon CO2 is a big threat and aviations and tourism industries are one of the major contributors of these emissions. The UK government is using new methods to reduce the emission to help the environment. It is a corporate social responsibility of the tourism and aviations industries to maintain their environmental responsibilities. However UK government is arguing for greener holiday locations around because these emissions can cause of many health problems for which tourism industries should be concerned.

Legal:

Companies should be responsible of the legal issues and rules and regulations of other countries if they are going to join them because international trade laws play a vital role in the today’s business world. However, government suggested aviation safety and regulations which cover up different legal issues such as environmental, health, aviations permits and customers issues.

Local Resources:

Tourism industry also affects the local resources like food, water minerals and energy which can be already in shortage.

Water resources:

Tourism industry overuses the water resources which could cause water shortage and degradation of water supplies.

Pollution:

The pollution which can take place because of tourism industry are air emission, noise, solid waste and littering.

Porter’s five forces analysis:

Porter’s five forces industry analysis helps to measure and manage the long-term survival. Michael Porter (1979) provided a framework that shapes the industry as being prejudiced by five forces.

The aims of Porter’s Five Forces framework are

To understand the drivers of competitive behavior in the sector and

To evaluate the long-run profit potential of the sector

To highlight strategies to alter industry structure (Lynch 2000)

Potential entrants:

According to Porter (1987) there is a low threat of entrant to newcomers into market. However, companies already having high shares of the market make high barrier of entrant for the newcomers because more than 70 % of the market shares are taken by the existing leaders in the market. But still the chance for the newcomers is the brand recognition which can help them as a barrier of entrant into the market.

Substitutes:

The substitutes for the tourism industry are the television program and some sort of games which can affect the business of tourism industries but on the other hand the low differentiation of products reduces the risk of substitutes because there is still lack of entertainment as compared with travelling physically.

Competitive rivalry:

Due to the tough competition in the tourism industry the companies with the fixed cost are beneficial in the current circumstances because there is a clear difference in market shares between different companies for example the TUI with 21% and Thomas Cook with 13 % of shares in the market in present which alternatively reduces competition in the tourism industry.

Bargaining power of suppliers:

Companies with low shares have low power against suppliers. But where the companies have more than 50 % of the market shares have high power of negotiation with suppliers which will be power balance in a reasonable bargaining power for the suppliers.

Bargaining power of buyers:

The low differentiation of products and less number of substitutes in the market also reduce the bargaining power of buyer it is because of the changes in online cost sales and the use of internet.

Leadership maintenance in the European tourism industry:

Porter (2006) argued that an Organisation can only sustain their leadership if they set up some differences and keep its business attractive is the way to maintain their leadership.

TUI is one of the tourism industry leading companies with the current 21 % shares of the market and offers their services almost 180 regions internationally.

The internal analysis is carried out through SWOT analysis. It is used for review the general position of the business. Strength and Weakness are the internal factors, Opportunities and Threats are external factors. The strength of TUI helped them to maintain their leadership in the tourism industry. The value chain of TUI helped them to offer cheap prices to the consumer as compared to their competitors. The direct distribution channel plays a major role to boost up the revenue and helped them to cut down expenses of TUI travel group. TUI friendly shareholders and proper management and effective customer service helped them to retain their customers and attract new customers from the market. TUI travel group believed in their differentiated product and brand name attained the competitive advantage for the organisations. TUI always considered their shareholders and employees as the assets of the organisation.

According to Grant 1991 resources and capabilities are fundamentals of strategy direction and profitability. They maintained their capacity management resources to response to the changes happening in the business environment accordingly which helped them to achieve the competitive advantage over the competitors and boosted up the economical level. This high economical scale helped them to beat the rivals in the market. The acquisitions of companies, product differentiation and cost leadership strategies helped to gain a competitive edge. In the market TUI is the one to implement these strategies all together and gained the competitive edge from their rivals in the market.

Future implications of TUI:

The usage of analytical tools such as PESTEL, Porter’s five force, SWOT analysis, Ansoff matrix the macro and micro environmental analysis has been discussed in the previous sections of the report for the TUI travel organization. TUI implemented Ansoff matrix to lead the organisation on the progressive path although TUI is one of the leading tourism industry world wide and already counted in the top leader of the European market. As explained in the previous parts of the report depending on the key finding the future implications of TUI are as published in the Mintel report (2009) that the air flight was increased by short journeys just before the economic crises which benefited the low cost airlines but not for long because the recession has changed the whole scenario. Recessions has turned the consumers to low cost and cheaper alternative such as busses and rails even though these alternatives were more time consuming but because of the recession consumers preferred to have different experience of travelling however, these preference of consumers could be a chance for TUI to enhance their differentiation of products in the form of land transportations for short journeys rather than air flight to cope with the circumstances.

Internet gives an opportunity of low barrier entrant to the newcomers’. Hence, potential entry barrier requires a high investment to enter into the tourism industry. In this situations TUI need to focus on the online services to attract the low spending consumers.

International trade can be highly affected by the fuel price instability and particularly the tourism industry therefore TUI need to deal with the oil companies to overcome this issue for specific period of time but have to take into account that this could be threat until the oil companies stabilize the fuel price fluctuation. In addition TUI needs to focus on the environmental such as the carbon emission factors which could highly impact upon the tourism industry. However, it is clear from previous part of the report that consumers prefer the companies who are aware to the environmental changes therefore TUI need to focus on the environmental changes to overcome this issue.

In the planning for the future implication, TUI should focus on enhancement of their market in the Asia but need to maintain their European market as they already one of the leading tourism industry across European market.

Limitations of the analytical tools used:

The analytical tools I have used in my report to carry out analysis of TUI and its limitations are discussed below:

PESTEL analytical tool is used to analysis both macro and micro environmental changes of the industry and recognize the main issues which can affect the strategy and analyse the threats to the tourism industry, on the other hand there are few limitations of tools used to identify the weakness of tourism industry and shape them for a solution as a result.

The aims of the Porter’s five forces are to measure and manage the long-term survival and to understand the key drivers of competitive behavior in the sector and to evaluate the long run profit potential of the sector to highlight strategies to alter industry structure (Lynch 2000). Hence the limitations are that it does not think about the other products and also ignore most important aspects such as human resource, culture and management skills.

The use of Ansoff matrix is to analyze the corporate strategic growth of the organization and assesses the best position for the organizations but on contrary it only focus on the market shares and growth and does not consider the other significant factors.

The last analytical tool used in my report is the SWOT analysis which reviews the general position of the business. Strength and Weakness are the internal factors, Opportunities and Threats are external factors. It tells about the factor to be focused and helps in the better decision making circumstances. Although, it tells about the strengths of the organisations but no effective suggestions about how to use and be benefited the organisations from them.

Conclusion:

The report examines both macro and micro environment of TUI tourism industry by the help of some useful analytical tools to find out the key factors and as well as explore that how TUI gained the competitive advantage and maintained their leadership in the European tourism industry by identifying their strength and as well as illustrate the future direction to TUI for its growth and success.

However, the recession effect the TUI in both ways when we go for disposable income, it is very true that it had affected all the industry, but the other way round although the group profit of TUI for the financial year ending 2005 has decreased compare to 2004 but in comparison of over all tourism industry TUI did well as of its competitive prices and direct selling channel i.e. internet selling which obviously reduce the operating cost by less staff working. As disposable income have badly effected the TUI but still they need to reshape their marketing structure to attract the new customers. The management of TUI need to take decision to move the company as a profit making with customers satisfaction.

Refrences:

Annual Report. (2008). TUI Annual Report.

http://www.dft.gov.uk/.

eTourism: information technology for strategic tourism management by Dimitrios Buhalis Pearson Education, 2003 – Business & Economics – 376 pages

Gallego et al. (2007). On the impact of exchange rate regimes on tourism.As ociacion Espanola de Economia y Finanzas Internacionales , 1-16

Grant, R. (1991). The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formation. California Management Review, 114-135

http://www.gdrc.org/uem/eco-tour/envi/one.html

Johnson et al. (2005). Exploring Corporate Strategy (7th Ed.). Essex: Pearson Education Limited.

Mintel Reports. (2009, July). Retrieved November 7, 2009, from MINTEL OXYGEN:

http://academic.mintel.com/sinatra/oxygen_academic//display/&id=39545

Munoz, J. (2005). Executive Insights on Globalization. International Journal of

Contemporary Hospitality Management , 17 (4), 365-371

Porter, M. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press , 33-61

Porter, M. E. (1980). How Competitive Forces Shape Strategy. The McKinsey Quarterly , 34-50.

Porter, M. E. (2001). Strategy and the Internet. Harvard Business Review , 63-79.

Porter, M. (1987). From Competitive Advantage to Corporate Strategy. Harvard Business Review , 43-59

http://www.statistics.gov.uk/CCI/nscl.asp?ID

http://www.statistics.gov.uk/cci/nugget

TUI case study

http://www.tui-group.com/en/company

http://www.tuitravelplc.com/tui/pages/aboutus/corporateprofile

Wahab, S., & Cooper, C. (2001). Tourism in the Age of Globalisation. London: Routledge

ELEFTHERIA GIAKOUMOGIANNAKI T230

Taking a country or region of your choice, calculate the net propensity to travel, the gross propensity to travel and the travel frequency.

Where do the people of this country or region travel to most?

Look at the patterns of demand for tourism and explain them in respect of social, technological, economic and political factors.

Germany is a country in Central Europe. The territory of Germany covers 357,021 square kilometers. Germany has a total population 82,438,000 and as the statistics says in 2010 it has the largest population among member states of the European Union. Germany is one of the main generators of international tourism at world level. The total German tourists are 57,111,000 and according to the Eurostat statistics handbook the percentage of the population who travel is 80.7%.

Net Propensity to Travel = Total number of people who travelled/ Total Population, so the net propensity of Germany is 80.7%.

The total holiday trips by resident tourists are 153,276,000. If we want to find the gross travel propensity we have to divide the total domestic abroad by the population. So, we have 153,276,000/82,438,000=185.9% ? gross travel propensity

To find the travel frequency we have to divide the gross travel propensity by the net propensity. So, 185.9%/80.7%=2.30 ?travel frequency, this shows how many times during the year they travel.

German people according to the Eurostat statistics handbook travel most to Spain, Italy and Austria and the percentage of these travels cover the 46.2% of the total holiday trips abroad.

Patterns of demand for tourism:
Social factors

The main social trends that have influenced partaking in tourism are the increase in flexible time, its altering allocation of that time and shifts in the way that society perceives this use of time. The structure that symbolizes this is the division of the day into equal portions of work, rest and leisure activity. As the working time has been reduced, people have more time for leisure activities in general and the changing distribution of this time is also important to tourism. One of the major changes was the introduction of the two-day weekend, which was involved in making stayover tourism achievable to nearby locations. Another major change was the standardization of the annual four-week holiday. The force for such reform came not only from the labor movement but also from corporations, which realized that the labor force required more unrestricted time to obtain and consume the goods and services that they were producing.

Technological factors

The technological development in aviation industry (the introduction of new long-haul aircrafts) plays a crucial role in the diffusion of tourism. Also the development of the car industry during the twentieth century paralleled aviation in its rapid technical development and growth. Information technologies have also played a vital role in the diffusion of tourism. For example, computerized reservation systems accelerate the proceedings of travel by providing travel agencies with flexibility, incorporation with other components of the industry and enhanced cost success.

Political factors

Tourism is dependent on the freedom of people to travel both internationally and domestically. Frequently limited for political and economic reasons in the previous growth stages, freedom of mobility is seldom an issue in Phase Four countries, where limitations are more often restricted to sensitive domestic military sites and certain forbidden countries.

Economical factors

Affluence is the most vital economic factor related with increased tourism demand. Usually, the allocation and volume of tourism increases as a society becomes more economically developed and greater flexible household income then becomes available. In the early stages of development process, regular tourism participation is possible for the elite, as demonstrated by the history of tourism in Europe. ”Burton’s” Phase One refers to these pre-industrial, mainly agricultural and subsistence-based situations where there no mass participation in tourism. In this Phase only the elite travel to domestic and international destinations. In Phase Two, the generation of affluence increases and spreads to a wider segment of the population as a result of industrialization and the rapid growth of urban areas. At the same time an ever-increasing number of newly reach individuals are visiting an increasing selection of foreign destinations. By Phase Three, the mass of population is relatively affluent and the middle class becoming dominant, leading to further increases in mass domestic travel as well as mass international tourism to nearby countries. The elite turn towards long-haul travel. Finally Phase Four represents a fully developed country with widespread affluence and a following pattern of mass international tourism to a varied selection of short and long-haul destinations. Almost all residents participate in a variety of domestic tourism experiences that differ greatly from those in the earlier phase societies.

References:

Eurostat statistic handbook

Tourism Management Fourth Edition-David Weaver, Laura Lawton

1

Trends for Tourism in Europe

The European Travel Commission (ETC) has revised its document ‘Megatrends of Tourism in Europe to the Year 2005 and Beyond’ on the basis of ongoing discussions with its members – the National Tourist Offices (NTOs) of Europe – and advice from the European Travel & Tourism Action Group (ETAG), whose members comprise international organisations representing the key tourism industry sectors.

Changes in society – new ways of travel

Society changes continuously, and trends – whether economic, social or lifestyle – subsequently impact on tourism, as tourism is an integral part of our society. It is important for the tourism sector to assess these changes at an early stage. Existing policies regarding products and services, marketing and investments, all demand appropriate adjustments or adaptations when preferences and behaviour develop differently from the way they have done in the past.

In the past, supply has always dictated demand, whereas today the reverse is true. Increasing saturation of the market and more self-assertive consumers, with more free disposable income and leisure time, determine the profitability of suppliers in the tourism sector. Competition is becoming more volatile. Although some trends are supply-funded, it is also important to forecast trends in demand, as these trends form the basis for determining the time and money required to make the relevant adjustments.

In this overview, we consider trends to be future developments that differ significantly from the past – both quantitatively or qualitatively. The main objective of this analysis is to support suppliers in their longer-term policy making. The trends mentioned relate to Western society – and to Europe in particular for the next five years. They are based on various quantitative and qualitative trend analyses and assessments made by leading international tourism experts.

Finally, analysing trends leads us to the conclusion that every trend creates a counter-trend. Furthermore, it should be stressed that, in many cases, trends are mixed: Mixed in terms of their phase of development, mixed in results and mixed in the level of importance. Given this fact, it is nearly impossible to isolate tourism development into single trends alone.

Trends

DEMOGRAPHY

The number of persons in older age categories will rapidly increase. Seniors will be healthier and will have higher disposable incomes than in the past. Many of them will enjoy early retirement schemes.

In view of this development, the number of more experienced senior travellers will increase faster than the development of tourism demand in general (although a gradual downgrading of pension benefits, and a trend to increase the pensionable age may slow down this development in the long run).

Consequences for the tourism sector:

Increasing demand for quality, convenience and security.

Increasing demand for easy transportation.

Increasing demand for more relaxing entertainment facilities (e.g. golf courses etc.).

Increasing demand for one -person products.

More demand in shoulder months.

In marketing, less emphasis should be put on age and more on comfort.

The average number of persons per household will decrease still further, which will result in higher disposable incomes and spending power. For tourism, this will influence demand in general, and demand for long-haul travel and short breaks in particular.

Consequences for the tourism sector:

Increasing demand for luxury (‘small indulgences’).

Increasing demand for special products which can be obtained on impulse.

Increasing demand for city -breaks and other short breaks abroad – in periods that used to be less favoured.

Higher level of interest in winter sun holidays.

HEALTH

Health-consciousness will increase still further.

Though increasing health-consciousness will not influence the volume of demand, it will certainly influence the decision-making with regard to destinations, and behaviour during holidays.

Consequences for the tourism sector:

Destinations that are perceived as less healthy will be more quickly avoided than in the past.

The demand for sun-holidays only will decrease still further.

Active or activity holidays will increase in popularity, and the demand for facilities that correspond to this type of holiday will be increasingly preferred.

The demand for ‘wellness’ products will increase, including spas and fitness centres.
< AWARENESS & EDUCATION

The average level of education is increasing.

This will res ult in holidaymaking in which the arts, culture and history play a more important role, including more educational and spiritual holidaymaking.

Consequences for the tourism sector:

Increasing demand for special products.

The more prominent inclusion of elements relating to the arts, culture and history in package tours and self-organised holidays.

The need for better and more creative communication of information.

Demand for new destinations in Central and Eastern Europe will increase.

LEISURE TIME

Modern society exerts increasing pressure on peoples’ daily lives, and stimulates the wish for more leisure time and relaxation – which will have an adverse effect on the increase of free disposable incomes. For tourism, this trend is thus by definition unfavourable – also because the increase in the number of days of paid leave for holidaymaking has come to a halt.

Consequences for the tourism sector:

An increasing need to supply additional low-cost products.

An increasing need to offer relaxation.

A shortening of the longer main holiday in favour of more short ones.

TRAVEL EXPERIENCE

More sophisticated consumers are increasingly self-assured regarding their needs and rights.

For tourism, this results in an increasingly critical attitude to quality, and to the price-quality ratio.

Consequences for the tourism sector:

Alternative ways of spending time and money will increasingly compete with holidaymaking, and within holidaymaking the preferences for destinations and accommodation.

Destinations that do not meet up to acceptable standards will suffer more intensely, and for a longer period of time in future.

More mixed behaviour: this holiday simple, the next one luxurious – this year longhaul, next year short -haul.

Holiday preference will become more fragmented in future, and thus influence repeat volumes.

Destination fidelity will continue to decrease over the years.

More experienced tourists will increasingly result in a more critical attitude to the artificial, in favour of greater authenticity – in particular with reference to emotional satisfaction and the need to personalise; artificial supply that does not distinguish itself from others (e.g. theme parks) will decrease in importance if it does not meet with higher standards.

Experience and critical attitudes will stimulate tourists to revisit satisfactory destinations from their travel past.

The increasing preference for mobility will stimulate rentals of cars, motors and bikes.

Regions that offer a full, varied, totally balanced concept will be increasingly preferred, and will demand better destination management.

LIFESTYLES

Lifestyles in Western society change gradually.

For tourism, this influences the tourist’s perception of his/her personal needs and behaviour.

Consequences for the tourism sector:

Though relevant investments may be made, the interest in ‘Bed & Breakfast’ is lessening, since it is regarded as cheap.

As ‘status’ is less important than it used to be, leisure behaviour is becoming more personalised, leading to increased demand for smaller sized accommodation units (like smaller authentic family hotels and tourist farms).

The shift in perception regarding life and lifestyle results in a decline in the demand for fully escorted tours.

Suppliers will benefit more if they are able to create completely new products, concepts and services that distinguish themselves by their added value.

Increasing specialisation by suppliers in relation to specific hobbies and interests will become more important, and will more often be combined with holidaymaking.

The increased preference for solid ‘anchors’ as secure holds in a more uncertain world stimulates the wish to possess second homes, also in areas close to smaller regional airports.

The trend of ‘back to basics’ results in preferences for more simple holidays: from hotel to bungalow, from caravan to tent.

INFORMATION TECHNOLOGY

The penetration of the internet – and its use for information and the purchasing of tourism products and services – will continue to increase. For tourism, the role of the internet – including new means of visual presentation – will increase still further, and will prove to be of the utmost importance in future.

Consequences for the tourism sector:

The ready availability of tourist information on destinations and products, and increasingly sophisticated search engines to analyse such information will lend itself to comparison, and thus influence competition more intensively via ‘grazing’.

Experienced tourists will increasingly put together their own holidays on a modular basis with direct bookings.

The role of travel agents will decrease, as full package tours are increasingly bought directly via the net.

Internet will transform the classical role of the National Tourism Organisations (NTOs) and Tourist Boards at an increasing speed – but will create a new role in e-marketing, including the application of Customer Relation Management (CRM) destination marketing.

Destination marketing (e.g. better branding with public support) will increase in importance as the source to stimulate website visits.

The availability of in-depth information on suppliers ‘ products, either on the destination site or accessible through links, will become of more importance as the basic precondition for the success of websites.

The possibility of ‘shopping’ via the inter net will stimulate later bookings.

The growing need for secure online reservations has to be stressed in relation to more experienced and self-assured tourists.

TRANSPORTATION

The increasing availability of high-speed trains and low-cost carriers will influence classical travel flows. Road traffic will face more congestion.

Consequences for the tourism sector:

Destinations will increasingly benefit from easy and affordable access for short breaks – in particular when major events are organised outside of the main season.

The increasing availability of direct links by train and plane will stimulate demand for international short breaks in cities and city regions, to the detriment of rural areas.

The use of high-speed trains for medium distances will take over a large proportion of the travel currently undertaken by scheduled airlines.

Road congestion will negatively influence transport by private car – in particular in the high season.

Coach trips will decrease in importance.

Barriers which result from non-adapted schedules or inter-modal transportation which is not optimally connected will have a stronger negative influence on destinations that cannot meet the growing wish for easy accessibility.

Cruises – not only expensive cruises, but also those in ‘budget -class’ – will increase in popularity, in particular for those over 50 years of age.

SUSTAINABILITY

Environmental consciousness will continue to increase. For tourism, this will result in more demand for sustainable destinations, in which nature and population will play an increasingly prominent role. In order to mitigate the costs for sustainability, the price will increasingly be passed on to the tourists themselves.

Consequences for the tourism sector:

The regional component in destinations will increase in importance.

Destination management policies need to be improved through more coherent and consistent planning.

The preference for destinations will be more strongly connected to the support given by the local population to welcoming increasing numbers of visitors.

Regions which have suffered from overbuilding (particularly where this is not in keeping with the natural landscape) will increasingly be rejected as attractive destinations.

Eco-tourism should not be confused with sustainable tourism.

SAFETY & SECURITY

Acts of terrorism, regional wars, pollution and other crises have unfortunately become facts of daily life, and influence the need to feel safe and secure. In tourism, this results in an increased need for safety and security, and in tourists avoiding destinations that are perceived as unsafe.

Consequences for the tourism sector:

The quality of water (in lakes and pools, but also of tap water) will increase in importance in the selection of the destination, and demands better protection.

The more critical tourist will more quickly make claims if the product offered does not meet up to the expected standards.

The costs for guaranteeing safety and security will rapidly increase.

4. The industry should be better prepared to meet tourism demand more flexibly in periods of crisis.

The Airlines is one among the inventions that had changed the way how people live and experience the world. In due course of time it has now become impossible to imagine business and leisure travel without air travel. The airline industry exists in an intensely competitive market. In recent years, there has been an industry shakedown, which is expected to the trend towards expanding domestic and international services.

The airline industry is classified into four categories: International, National, Regional and Cargo. Airlines industry facilitates economic growth, world trade, international investment and tourism and so plays a key role in globalization making it a large and growing industry.

Air travel (both business and leisure) has grown by around 7% in the last decade. Business travel has grown as companies having global presence in terms of their investments, their supply and production chains and also their customers. Availability of aircrafts at affordable prices backed by increased tourism had led to rise in leisure travel. Overall in terms of regions in developed regions like Europe and North America a slower growth is seen when compared to developing regions like Asia Pacific.

Airlines’ profitability is closely tied to economic growth and trade. So based on the GDP growth the demand for airplanes and the air travel will increase. So during 1990-1995, the industry suffered from world recession and the air travels were further lowered by Gulf War. Thus financial difficulties impact airlines/aircraft industry. Deregulation is also stimulating competition, such as that from small, low-cost carriers.

Some of the Key terms and ratios for airline industry are listed below.

Available Seat Mile = (total # of seats available for transporting passengers) X (# of miles flown during period)

Revenue Passenger Mile = (# of revenue-paying passengers) X (# of mile flown during the period)

Revenue Per Available Seat Mile = (Revenue) / (# of seats available)

Air Traffic Liability (ATL): An estimate of the amount of money already received for passenger ticket sales and cargo transportation that is yet to be provided.

Load Factor: Measures the percentage of available seating capacity that is filled with passengers. Analysts state that once the airline load factor exceeds its break-even point, then more and more revenue will trickle down to the bottom line.

Airport capacity, technology used, structuring routes and costs to buy or lease the aircraft are very vital for the industry. In addition Weather, Fuel Cost and Labour also play an important role.

The industry has to realise the need for a radical change to sustain and also ensure growth and prosperity for their survival. Currently many cost cutting measures are being adopted in the industry.

Also to meet the requirements of customers and elevate to customer delight from mere customer satisfaction the industry players concentrate on the quality of service that they offer, both on the ground and in the air. The key challenge is to ensure meeting of customer requirements and at the same time make effective cost cutting measures and continuously being efficient and competitive and profit making.

Nevertheless, the aviation industry is characterized by strong nationalist sentiments so in many places despite globalisation airlines will face limitations on where they can fly and restrictions on their ownership of foreign carriers

10 aviation myths

More runways are essential

Environmental organisations try their best to price people off planes

International agreements make the ending of aviation’s privileged tax free status (including tax-free fuel) become impossible

The external costs of the industry are met through Air Passenger Duty (APD)

Building new runways has clear economic benefits

Aviation helps the UK tourist industry

We may be able to fulfil our international obligations with regards to climate change and still have uninhibited growth in aviation and airports

We can lessen the damage done to our environment, heritage and countryside that has been caused by aviation and airport expansion and also compensate for the same

Airports can expand and we can still meet EU air quality standards

Technology has delivered significant environmental improvements in the past and will continue to do so

Emerging Markets

The Asia-Pacific region and Middle East are the emerging markets in airline industry. They are expected to experience a higher traffic growth and expand rapidly. For better analysis please see the graph below:

Regional traffic growth (% change year-on-year): 2009 to 2012F

Note: (Data by ICAO (International Civil Aviation Organisation))

Chief Characteristics of Airline Industry

Capital Intensive: It’s a capital-intensive business which requires huge amounts of money to operate effectively. This industry requires capital for expensive equipments like aircrafts, maintenance systems, control towers, simulators etc.

Labour Intensive: Airlines need personals like pilots, crew members, security guards, cleaners, engineers etc. It’s a very labour-intensive industry and nearly 1/3rd of the revenue is used for the payment of workforce.

Thin Profit Margin: The profit margin is very thin in this industry. It averages to about 1-2% only.

Seasonal: Earlier airlines used to see a heavy load during summers (because of vacations) and a relatively lesser load during winters. The seasonal factors results in rise and fall of airline revenues over the course of the year. Over the years the seasonal effect has reduced to a greater extent.

History and the Current Scenario of the Indian Aviation Sector
Genesis of Indian Airline Industry

1932: Mr. J.R.D.Tata flies a De Havilland Puss Moth from Karachi to Mumbai as part of the first Tata Sons Ltd. Flight to deliver mail carried by British Imperial Airways

1948: Govt. of India acquires 49% stake in Tata Airlines, designated it a flag carrier and renamed it as Air India International

1953: Jawaharlal Nehru, in friendly transaction, convinces the Tata group to let the Government of India acquire a majority stake in Air India International and nationalizes air transport

1953: Indian Airlines formed by merging eight former independent domestic airlines

1960: India enters the jet age with an Air India B707. USA and India are connected for the first time with an Indian Airline

1990: East West Airlines becomes the first private airline since 1953

After 1991

1991: Private airlines were allowed to provide the service under ‘air taxi scheme’ to operate chartered and non-scheduled services.

1994: Private airlines permitted to operate as scheduled air service providers.

2003: Air Deccan lowered down the fares to 17% of previously charged rates thus introducing the concept of budget airlines in India.

Consolidation

The under-pricing of tickets due to the intense competition and the increasing number of budget carriers resulted in losses to the budget carriers as well as to the entire aviation sector. Consolidation was looked as the single way out which would lead to less competition and stable fares.

The main reason for the increasing costs and reduced efficiency and flexibility for the Indian aviation sector was poor Airport infrastructure and manpower shortages. In 2007, there were 13 scheduled carriers which was estimated that this number would fall to 8-10 by 2010 in this fragmented Indian domestic aviation sector and the estimation is almost true considering the current scenario of the aviation sector.

2007: Jet Airways announced that it would buy Air Sahara for US$500 million

2007: Air India and Indian Airlines merged into one entity named NACIL

2008: Kingfisher-Deccan deal was the third alliance in the Indian aviation sector.

Current Scenario of Aviation Industry

The Indian Aviation Industry, being one of the world’s fastest growing aviation industries, has a compound annual growth rate of 18%. There are 454 airports and airstrips in India, of which 16 are international airports. As of May 2006, private airlines accounted for more than 75% of the sector of the domestic aviation market.

The Indian aviation sector saw an increase in revenue by nearly US$ 21.4 million in December 2009 due to increase in traffic movements. Moreover, the Airport Authority of India may gain better margins in the near future as predicted by Ministry of Civil Aviation. These have been attributed primarily to the boost in the share of revenue from Delhi International Airport Limited and Mumbai International Airport Limited. According to a report released by the Ministry of Civil Aviation the number of passengers carried by domestic airlines rose from 67, 61, 000 to 80, 56, 000 for the period January – February 2009 and January – February 2010 respectively. The increase in passenger marked a growth of 19.2% for the aforementioned period. Some of the factors that have resulted in higher demand for air transport in India include the growing purchasing power of middle class, low airfares offered by budget airlines, the growth of tourism industry, increasing outbound travel from India and overall economic growth of India.

Besides this, Indian airports are being ranked among the top airports of the world. The Hyderabad International Airport now ranks amongst the top 5 Airports in the world as per the annual Airport Service Quality passenger survey. The other airports to figure in the top 5 are the ones at Seoul, Singapore, Hong Kong and Beijing. There are even talks going on between India and United States to make the country an aviation hub.

The Airport Authority of India is set to spend over US$ 1 billion in 2010, towards modernization of airports. The civil aviation ministry has also converted Delhi airport into an international hub for passenger airlines to help the airport utilize large amounts of additional capacity.

The investment policy of India in aviation industry currently allows FDI up to 100% under the automatic route for green field projects and for existing projects, FDI up to 100 % is allowed; upto 74% under the automatic route and beyond 74% under the government route.

Potential for Growth

Despite the slowdown and slow recovery, Indian Aviation industry sector still continues to look promising. This is primarily due to the burgeoning middle class with increasing massive purchasing power, low cost carriers providing services at very attractive low fares, the growth of Indian tourism and increasing outbound travel from India. In addition, the Government has planned to modernise non-metro airports, phasing out new international routes, putting into place new airports and renovating existing ones. Experts are estimating the growth of industry as high as 25% YoY.

Since 2006, most of the major Indian airline operators such as Air India, Indian Airlines, Jet Airways and Kingfisher Airlines have reported large losses, reason being high aviation turbine fuel (ATF) prices, rising labour costs and shortage of skilled labour, rapid fleet expansion, as wheel as intense price competition. Adding to all these problems are the new players entering the industry even before the existing players could stabilize their operations. As a result, all the airlines suffered even further when the recession hit.

Even then also the Indian aviation industry has been more prone to crisis as compared to their global counterparts and thus, India has the highest passenger growth rate among the entire airlines sector in the world including economies like Australia and France.

The total number of passengers travelling by air will be a whopping 400 million by 2020.” To meet with this accelerated demand, existing players need to increase fleets and broaden their reach including regional destinations as well. They are also going to get the competition from international low cost airlines like Air Asia (Malaysian) and JetStar Asia (Australian).

Flight into the future

As estimated by the Centre for Asia Pacific Aviation (CAPA), by 2011, the Indian aviation sector is likely to cross the mark of 60 million domestic passengers, whereas the total number of passengers i.e. both domestic and international is expected to cross the 100 million-mark over the next three years.

India is gearing up for heavy investments in the aviation sector of India. According to the Investment Commission of India, Investment opportunities of around US$ 110 billion by 2020 are now being predicted. It is estimated that about US$ 80 billion will go towards purchase of new aircraft and US$ 30 billion for the development of airport infrastructure.

Over the next 10 years, the Indian aviation sector will try to cash in on the potential to grow by 25% annually, as said by Praful Patel, the Minister for Civil Aviation. Also it could attract the highest investments among all the industries in India i.e. an amount up to $45 billion.

India needs improvements in services offered, huge number of skilled personnel and to stop already experiencing shortage of pilots and thereby problems like direct and indirect employment. Hence, India can look at this time to play a transforming role in this sector, as it holds great promise for development as well needed for the Indian economy to grow at a faster rate.

Major players in domestic market

Indian

Kingfisher Airlines Ltd. Full Fare Airlines

Jet Airways Ltd.

IndiGo

Jetlite

Budget AirlinesSpiceJet

Paramount Airways

Go Air

Kingfisher Red

Current Market Shares
Challenges faced by Airline Industry

1) Rising Aviation Turbine Fuel (ATF) Prices: ATF prices form about 40% of the total operating costs of airline industry. As fuel prices climb, a trend of airline stock prices going down has been noticed. The rising fuel prices make it difficult for airlines to increase profits and they are forced to increase the air fares.

2) High input costs: Input costs are high due to:-

Various taxes by State Governments and on repayment of interest on foreign currency loans taken for purchasing aircrafts due to which some airlines are under high debts .

Due to shortage of technical personnel, manpower costs are also high.

3) Decreasing returns: After the advent of Low cost carriers, the legacy carriers were forced to decrease their prices and thus profits were impacted. With the ever-increasing competition, there is a price war that is giving low returns to all airline operators.

4) Employee Management: Training, recruiting and retaining talented employees is a major concern due to shortage of skilled personnel including pilots, unionism and cut-throat competition. After- recession effects like retrenchments, salary cuts along with no-new-hiring policy, strikes by Air India and Jet Airways staff etc. has made this task even more challenging.

5) Infrastructure Upgradation: The infrastructure upgradation progress in India is far behind the western countries. While steps are being taken to upgrade major airports in Hyderabad, Delhi and Mumbai, another issue that is yet to be fully addressed is security. Proper airline scheduling and passenger handling is another task besides physical and IT infrastructure. Attracting private sector investments and implementing the planned projects efficiently is a concern.

6) Overcapacity: There has been excess capacity of aircrafts that were ordered to increase market share before the global slowdown but were delivered after the same.

7) Regional connectivity: Though there is excess capacity in some airlines, some areas are still not well connected due to poor infrastructure. The airlines have to concentrate on building remote regional connectivity other than concentrating only on metros.

8) Environmental Regulations: The carbon emission and fuel efficiency standards have to be met by technology investments and commitment. R&D on bio-fuels, that have the capacity to reduce aviation’s carbon footprint by up to 80%, needs to be carried forward aggressively.

9) Congestion: Due to increased passenger traffic and cargo growth, there has been congestion on major routes on airports like Hyderabad, Delhi and Mumbai etc. This has to be tackled effectively by either expanding capacity or creating new airports.

All this needs real strategic planning in the industry with technological innovations and best management practices.

global scenario and trends

In the past decade, travel by air has increased by 7% per year, for both – business and leisure. Large aircrafts like the Boeing 747 have made it convenient for people to travel at affordable costs. Governments in developing nations give impetus to the development of infrastructure to lure tourists from prosperous countries and add to their national economies. Besides tourism, business travel has grown considerably owing to the rapid growth of world trade in goods and services. Some airlines are owned by the state. The ones that are independent are vulnerable to economic uncertainties. Changes in the regulations of the governments and the presence of an intensely competitive market have led to many hardships in the industry

Commercial flights began within a decade of the invention of aircraft in the early 20th century. There was a surplus of aircraft and pilots worldwide after world wars I and II. DELAG, Deutsche Luftschiffahrts-Aktiengesellschaft, the world’s first airline, was founded on November 16, 1909 with government assistance, and operated airships manufactured by The Zeppelin Corporation. Its headquarters were in Frankfurt. By the 1950s, airline companies created the framework of international travel and commerce that exists to this day.

The Airline industry is highly unionised viz. there exist multi-unions. The industry is highly regulated in terms of routes, hours of work, etc. De-regulation in US in 1978 and in Europe in 1990s and again 2007/08 has removed control of the government over fares, routes and has marked the entry of new low cost airlines in US, Europe and now India and SE Asia.

In Europe, major players like Iberia, TAP, Alitalia, KLM, Air France, Lufthansa were all once state-owned. The aviation industry is governed and set apart by strong nationalist sentiments towards a country’s domestic ‘flag carriers’. In many parts of the world, airlines will, therefore, continue to face confines on where they are allowed to fly and restrictions on their ownership of foreign carriers.

The global airline industry being high competitive has resulted in huge cumulative losses. Many airlines have either gone bankrupt or have collapsed. For example, Sabena, Swissair, Alitalia, Delta, United.

future trends

Worldwide economic activity, reflected in the global gross domestic product (GDP), is the most powerful driver for airplanes demand. The global GDP is projected to grow at an average of 3.2 percent per year for the next 20 years. Reflecting the economic growth, worldwide passenger traffic will average 5.3 percent growth and cargo traffic will average 5.9 percent growth over the forecast period.

The above graph represents the growth in the future. However, this growth can be achieved only if the surging price of fuel is controlled as it directly affect flight schedules, ticket prices and services offered. So order to survive airlines need to become more lean and mean by addressing issues like rising costs, constraints on revenue growth and increasingly dissatisfied customers.

Now we need to understand that three features are vital. That is services that give customers more control over their journeys, an infrastructure that can be easily changed to cope with variations in demand and greater collaboration among travel providers. The 5 technological innovations that can help the industry deliver the above mentioned features are

Self-service solutions: It’s a cost cutting measure but now gives the passengers the choice and control they want

Integrated baggage handling: Using IT systems and process and technologies like RFID together and thereby speed up at the same time efficiently handle the security checks for the customer’s baggage.

Shared Services: There are three levels of shared services. One is share commodity application which reduces infrastructure costs. Next is common service hosting, which allows applications to be used by the partners and other clients. Then finally traditional application hosting, which enables multiple clients to use commodity applications as per their usage rate.

Modular, flexible airport operating systems: Airports need to improve their operating systems and have a modular, flexible architecture so has to improve the efficiency and contribute to growth.

New Security Technologies: Identity management solutions like finger print matching etc. and other such improved techniques have to be employed as the threat of terrorism is growing.

Thus with all such measures we can expect a good growth in the airline industry.

Opportunities

The rise in low cost carriers and increasing disposable income of consumers with the growing population of youth working generation, especially in metros, all give rise to tremendous opportunities to the aviation industry-

1) Enhancing non-aeronautical revenue streams and Airport retailing: Revenues from vehicle parking, advertisements, shop rentals are being targeted with increased modernisation of airports and attracting international luxury brands for a 24/7 shopping experience for the customers. E.g.- New airport terminals such as the T3 in New Delhi.

2) Airport development through PPP: The restructuring of airport infrastructure for metro and non-metro airports, developing Greenfield airports by attracting large private investments is a part of government’s Eleventh Plan, where it expects an investment of around US$ 6.5 billion. This would fulfil the gaps to build world-class user-friendly airports with modern technology and provide airport capacity ahead of demand.

3) Bio-Fuels: Instead of focusing only on crafting fuel-efficient engines, manufacturers of aircraft (like being done by Boeing and Airbus),can focus on developing sustainable bio-fuels that can protect them from wavering profits due to rising fuel prices.

4) Maintenance, repair and overhaul (MRO) business: This offers high investment and business potential. An Ernst & Young report says that the MRO business in the aviation sector can absorb investments of up to US$ 120 billion 2020. Air India has signed an agreement with GE Aviation, a unit of General Electric Co. (GE), to set up a $90 million facility to maintain aircraft engines in Mumbai.

5) Private Jet market: With increasing number of billionaires in the country and the glamour quotient attached to airlines, the private jet market in India is a great business opportunity. The government is also considering permitting private airstrips in the country.

6) Heli-tourism and Commonwealth games: A major portion of visitors during the Common wealth games including spectators, athletes and coaches will travel via airlines. Tourism to various parts of India can be boosted at the same time by heli-tourism or attractive offers by airlines connecting major tourist spots.

7) Exploring alternate revenue streams:

Air Cargo operations

Ground Handling opportunities lie in offering comprehensive ground-handling solutions,3rd party handling and service contracts with private airports.E.g- AI-CIAL at Cochin

Training will be needed for pilots, airhostess, engineers, cabin crew, technicians, ground staff which is a huge business opportunity considering the demand for aviation jobs.

Internet business can be leveraged for e-ticket bookings thus saving agent commission costs and airline websites can pose as one stop shops for all travel related information thus boosting revenues.

Emergency medical services (EMS) business Eurocopter, a division of EADS which is world leader in the field of aerospace defence and related services, is looking forward to entering the emergency medical services (EMS) business in India. Leading hospital majors like the Manipal group and the Apollo group are being considered for the purpose. The company operates around 480 helicopters in India that cover both the civil and military sectors. The company also plans to increase its business area by entering the heli-tourism sector.

Travel means the movement of people between relatively distant geographical locations for any purpose and any duration, with or without any means of transport. Travel also includes relatively short stays between successive movements. Movements between locations requiring only a few minutes are not considered as travel (http://en.wikipedia.org/wiki/Travel). In other meaning, travel can be defined as a journey, a trip or a walk from one place to another place in great distance whether using any transport or without transport.

Travel can be for recreational purposes, for tourism, to visit people, for business or for commuting, and may occur for numerous other reasons, such as to obtain health care, migration, fleeing war, etc (http://en.wikipedia.org/wiki/Travel). There are many purposes of travel such as to rest and relax, to meet friends and relatives, to visit and experience new places and also to having fun and enjoying the memorable moment.

The young tourist can be defined as youth or young generation or population that age between 16 to 30 years old. In advance, young tourists were neglected by researcher because of they were always being assumed same with the rest tourist population in terms of similarities. Pastor (1991,p.7) states that ‘for too long it has been imagined that young tourists are merely more naive versions of the adult tourist, and that their needs are the same as their elders’, but on a smaller, simpler less demanding scale to be considered, in a sense, as sub-requirements’. But, actually tourist population was separated in form of age, behavior and motivational factor. Instead, it is claimed that young tourists have a distinct identity, special interests and different needs which distinguish them from adult tourists (Ravon, 1991).

This research topic was selected because we never known or never took concern about why people want to travel to overseas or in countries, what inspires them to travel and why they willing to spend their money and time merely just want to explore to other places. Furthermore, we do not have taken concern about the significant of travel, types of person that travel in context of age, behavior and inducement.

In addition, tourism industry now increasing quickly to develop and had large potential in order to be major contributor to national economy. At the same time, it can introduce the country to international era with distinctive country’s uniqueness whose can attract various type of tourist to tour. However, every interest or inducement to tour that occurs in tourists themselves are varying because there are various walks of age in tourist population. Hence, we want to study about the young tourists group on their difference of inducement and interest to tour with aged tourists group and what motivates them.

After I read all these journals, may be said that a little bit I can understand it and all the issues just now like answered. Especially, the significant or the importance of travel where it can be teaching us about the meaning of life satisfaction, open widest our mind to look the different corner of the world, know the cultural difference elsewhere which we might never known before and give us the experience to socialize and communicate with various type of people.

SUMMARY

Definition of motivation is general. There is various type of definition that can be used. According to Susan Velez (2008), motivation is the characteristic that is required in order to achieve anything in life; without it you will give up at the first sign of adversity. It is means to inspire and encourage a person to do their best towards something in their life. However, it is a slightly different with the definition of motivation in travel.

Travel Motivation: Linking Theory to Practice

For the first case study, travel motivation is a critical factor and a driving force behind tourist behavior (Crompton, 1979). The purpose of this study is to review the relevant literature on travel motivation and provides a scenario-based discussion on the applications of travel motivation theories in the industry practice (Huang and Hsu, 2009). This study was conducted by a comprehensive literature review on travel motivations that acknowledged the major theories. Two scenarios are presented and discussed by linking two motivation conceptual schemes, Maslow’s hierarchy of needs theory and Plog’s allocentrism/psychocentrism model, to practical issues in travel management (Huang and Hsu, 2009).

However, understanding tourists motivation merely imagination because it is very hard to understand different tourist’s need and wants from various age layer. It is closely related to the theory that applies in travel motivation with practices that theory into the real world. We need to study and understand totally the theory, only then we can fulfill tourist satisfaction according to age layer, their needs in travel, produce experience travel which meant for them and creating the repeat business.

Profiling Young Travelers’ Travel Behavior

According to Sung Chae (2009), the purpose of this study is to segment young travelers’ travel behavior on the basis of travel motivation. It is based on diverse needs and desires on the tourist attributes. Using oblique principal component cluster analysis, this study identified seven factors in travel motivation: Excitement, Tourist Attraction, New Experience, Relaxation, Atmosphere and Remembrance. The results indicate that the Korean young travelers’ travel behavior was varied between defined factors and different sets of socio-demographic and travel characteristics.

The information was gathered by giving the questionnaire to the subject of study. The young tourist more tend to choose vacation that give maximum pleasure, vacation to attracting places so that they would repeat the vacation to that same place, sense new experience that never felt before this, can give satisfaction of resting and relaxing without any interference and pressure, reposed in place that have atmosphere who can cause mood to revel and produce holiday that memorable forever and made as a sweet memory.

Travel Motivations and Destination Activities of Young Travelers of Different Ages: An Empirical Study in the United States

Several studies have investigated the differences in tourism and destination activities of different age groups of the travelers in the United States. Previous research studies suggest different segments of American travelers exist based upon generational groupings. The findings of the study, based upon 744 respondents, clearly identified two distinct segments of tourists in the age group of 18-23 and 24-30 in terms of travel motivation and destination activities. The results can be used by managers to improve the experience of these two distinct groups of young travelers (Michael, Dana and Dinesh, 2008). In this study, two groups of different age were focused which is generation X (born 1961-1981) and generation Y (born 1982-2000).

Through this study, found that both age group that having differences in terms of travel satisfaction, level of travel experience, motivations to travel and travel activities. After that, the result was produces where there are various factors that motivate them to travel and types of travel activities that they want. Some of the factors that motivate them to travel are the desire to travel foreign place, going to coast or island, having romantic holiday with beloved person, returning to place that we have gone before and want to spend time together with family and friends. Some types of travel activities is sightseeing, shopping, partying and celebrating and dining at special restaurant with good atmosphere and food.

CONCLUSION AND RECOMMENDATION

Based on all research paper, can be deduced that there is tourist from various age layer, gender and standard of living. Through these research papers, a little bit can understand what motivate them to travel, which age group more like to travel and what types of place they like to take a trip. Especially young tourists, they expecting the vacations that gratify most maximum, like to gain new experience or try new materials, and they feel really fortunate if they can go travel to place that all this while they wish although lack of financial resources will be cultivated also. Unfortunately, mostly of young tourists group not emphasizing security matter when travel. Not many of them want a safety vacation such as old tourists.

Especially women, because they was barer to various type of danger and threat at night time. Therefore, as a suggestion, they should take several initiatives to prevent thing that did not want to happen. Tell your family and friends on about vacation, keep map when sightseeing, do not carrying goods worth, wearing right clothes such as locals, sensitive with environment or surrounding (especially woman), avoid from dark place and always bring some small tool to defend yourself.

Traveling to New York and Traveling to Florida: Compare and Contrast

Abstract

Florida and New York are considered to be the most important state of United States, not only in terms of politics and Business, but also, due to tourism. These are the states that welcome millions of travelers annually and earn lot of revenue for the country. They have numerous thinks in common like both have the coastline along Atlantic Ocean; Both offer easy transport, economical hotels and cultural diversity. But, they also differ in aspects like like weather, geography, sightings and shopping places. The paper covers all major similarities and differences that a traveler might experience, while one might travel in these states.

Table of Contents

Abstract

Introduction

Body

Wonders of Traveling

Traveling in New York

Traveling in Florida

Comparison

Cultural Diversity

Transport

Hotels

Food

Contrast

Weather

Geography

Sightings and Attractions

Shopping

Conclusion

Works Cited

Traveling to New York and Traveling to Florida: Compare and Contrast

Introduction

World is full of beautiful places and we see around us, we realize that this world is not only the stunning place but the one worth experiencing and traveling. When we broaden our thinking and the experiences, we realize that even different parts of the same city are different. If we visit different places of the same city we realize that world has put before us, its wonders and marvels. People who have travel and love this agree to the fact that travel itself is the source of great success and pleasure. The joys of travel are beyond measure and beyond imagination, unless the one tries it. Every place has its distinct features and the distinct characteristic, so, every new place opens, before travelers, a new world and helps them to enjoy and experience those wonders. Even the place that was visited earlier helps to know and learn new things that the travel might have missed last time or developed and appeared in the time between two visits. America has proved itself to be the land of dreams, opportunities, pleasures and attraction. It annually attracts million of travelers to its different states, from Americans themselves and also a large variety of foreigners. The open grounds from the people from all over the world have made America, a multi cultural, a multi religious and a multi ethnic country. Due to the common element in America, a thing that should be considered is the versatility in different states. This is the compare and contrast paper about traveling in New York and traveling in Florida and covers the details about what a person might experience there.

Body

Everyone as individual interests and there are people who love to travel and explore the world around them. For some people traveling might be the tyring business, but, the people who love traveling are aware of the joy and pleasure that iy might bring to the people and the experiences that they can have by visiting different places. Travelling is not only the recreational, but, also the educational one and offers a lot of benefits.

Wonders of Traveling

Irrespective of thee fact that a person visits a place for educational or the recreational purpose, it always bring positive addition and changes into the personality of the traveler. Some people may visit other places for business purpose, some for educational and some for the leisure, but all the factors contribute towards the personality and health of a person. It helps in improving interpersonal growth, improve information about places and related facts, increase adeptness and deftness and most importantly the most essential skills of life. The psychological impact of relaxation, leisure, satisfaction and motivation are developed in a person, when he takes time, out of the routine and indulges oneself into soothing and relaxing activities. Regarding the role of traveling in success and motivation, it is believed and experienced by a lot of travelers that when they visit new places they come to meet new people, see new things, visit new places and understand about the versatility and the change in perspective. Such activities help a person to see the same problem from a different angle and to provide perspective to life and profession. (Stone and Patrick)

Within America, there are numerous places, which are worth visiting and help the people to develop new ideas, relax and roam around. Among all the states of America, Florida and New York are considered to be the most noticeable ones.

Traveling in New York

New York is one of the busiest cities of the world and hustle and bustle on its every road. The concept of American dream that has been developed years ago, seems true when one visits New York. It is a place that welcomes people from all parts of the world and introduces the developed and most stylish side of United States. America that is shown in movies i.e. place of nightclubs, hotels, architecture, cars and busy life seem true in this city. This is a city that remains awake 24 hours and provides facilities irrespective of the fact that people come out of their house at day or at night. It invites the people all over the world, who want to make their career in Hollywood and become face of the industry. It has wonders, within it, for tourists it is a paradise and they can observe and experience the America that is changing with a rapid pace and has skyscrapers all over. The economic and social growth of the country can be well observed in this city. (Chevron)

Traveling in Florida

Florida is another beautiful place in America and offers the pleasures of nature and sceneries. One can enjoy the beautiful sandy beaches and the memorable theme parks that make this different from any other place in United States. It is well known for the fact how housing field is developing in this area and even this place is known for the people who want to settle here for life time. it s the combination of busy world and the places that offer peace and quiet to the ones, who want to live at a quiet place. Florida is multicultural cities and has people from Caribbean, Latin American, Spanish and Cubans. Its gives the impression of world, within itself and represents different cultures and ethnic groups. Sunny weather invites the people that want to enjoy the beaches and the warm weather. Wilderness and the natural scenes are the special aspect of this place and are the most attractive factor for travelers (Veness and Veness).

Comparison

Although, New York and Florida apparently seem to be the different places, but, there are a lot of things in common and there are numerous facts they share. Some will be discussed here.

Cultural Diversity

It is a well known fact that America is a multi cultural country and is the one that not only respects, but also, celebrates various cultures of the world. New York is a metropolitan and people from not only different parts of America, but, of the world are settled here and are living and working in Harmony. Due to the presence of the Film Industry, people from different countries are also attracted here and work along with Americans. When a traveler leaves the airport he starts having the experience of the lifetime. The experience of cultural diversity starts from the people who land on this airport, taxi drivers belonging to different countries and the people working in the streets and shops. From corporate level to people on the streets, a traveler can see people of different origins, here (Chevron). Florida is considered as the land of the people majorly belonging from Latin America, but, a lot of Asians, people from Caribbean, Cubans, Caucasians and most of the Latin America have become the locals of this city. Cultural diversity is common in Florida and New York and in spite of less busier city than New York; traveler can see people from different backgrounds. One might think that m.ost of them are travelers, but, it is a surprising fact that people of different origins have settled here and made Florida a world in it (Campbell, Denniston and Karlin).

Transport

Most important thing that a traveler will enjoy in New York will be the ease with which he can travel from one place to another and how he can reach his destination, without any issues. The most common modes of communication that are available in New York include: commuter rails, buses, subways and taxis. When a traveler leaves airport or the bus stand he easily finds taxi from the airport or the stand and can reach his destination. It is a common scene in New York that in spite of being the busy city and the lots of traffic, some people also use bicycles to move from on place to another (Chevron). In Florida, intercity rail is the most common and easily available and easily reached transport. In addition to this, travelers can easily find yellow cabs that can take people at their destination. There is an excellent road system n the country and the busses available can take traveler to different parts of Florida easily, anywhere and anytime. (Campbell, Denniston and Karlin)

Hotels

Most amazing thing about New York is that it is the economic hub, busiest city, populace one and the one with millions of visitors, but, traveler can fig most luxurious to the cheapest hotels in this area. People who only want to roam about and experience New York can get most economical place and the ones who want to stay in luxury can find the five starts hotels also. There are around five hundred options of different hotels and inns are available in New York, which serve all types of people (Chevron). Abundance of hotels and restaurants, in Florida, are present due to the abundance of beaches here. Since traveler who come in Florida often visit beaches and countryside, so they prefer guest houses and tents and which are available. In the rural side, economical and most luxurious hotels are available. Varieties of hotels give the choice to the travelers and help then to choose a hotel within their budget (Veness and Veness).

Food

Food truck culture is becoming common in New York, which provides junk, traditional, Mexican, African, Thai and al, kinds of foods are available to the travelers at economical rate. Travelers who want to enjoy more sophisticated restaurants and experience the sophisticated food, and then they can also go to numerous restaurants and shops opened in all parts of New York (Chevron). A variety of food options are available all over Florida and the options vary with the population and the terrain. In rural sides, all types of food i.e. junk t the specialties of different cultures are available. Since, Florida has a large beach, so, seafood is really common in this area and variety of seafood increase at the restaurants and hotels near the beaches. Traditional food of America is available everywhere, but, the people of different nationalities have opened restaurants and the abundance of food trucks helps in increasing the options available. (Campbell, Denniston and Karlin).

Contrast

Being different part of same country, New York and Florida have lot of commonalities, but, they also have numerous differences that make then different from one another and encourage the traveler to visit both states.

Weather

Weather of New York and Florida is totally different from one another. In New York there different seasons, along with summer and winter people also experience spring an autumn. The winters of New York are very cold and the temperature drops to as low as -2 degree centigrade. Heavy snow fall is common in New York and the hurricanes are common in this area (Chevron). In comparison to New York, in Florida, it is either really hot or warm. Winters in this area is not very chilly, the beaches make the temperature normal even in the winter. Southern Florida remains warm even in the winter, but, in northern Florida, temperature may fall to the freezing point and can create difficulties for the locals and visitors (Veness and Veness).

Geography

New York is Atlantic Ocean and the Hudson River, people even use fairies for the leisure purpose, although, its coast line is really small, as comparison to Florida. But, the main cities of New York have developed and there are skyscrapers all over the place. There is varied geography of New York, having plains, mountains, river, lakes and all other natural treasures, but, it is well known for its urban side. There are natural sights, but, the urban world of New York is more popular among the travelers (Chevron). Florida is actually situated on a peninsula made by Atlantic Ocean and the Mexican Gulf. The coastline of Florida is really large and spreads to 13,476 Km in NOAA system. Beaches are the main attraction in these areas and due to such a large coastline, and being at the sea level, the state is generally plain and offers numerous beaches for the travelers (Campbell, Denniston and Karlin).

Sightings and Attractions

In terms of attractions and sightings, New York is one of a kind. Statue of Liberty is considered the most important place that every traveler, in the New York, wants to visit. Metropolitan Museum of Art is another important attraction of the city. Museum of Modern Art, Empire State Building, Times Square, Museum of Natural history, botanical garden and China town are the most popular and most visited places by the traveler. The urban world of New York is really attractive and invites travel to explore its wonders. Most of the places that people love to visit in New York are manmade. In comparison to other places, New York is considered to be the place Museums, art galleries and gardens and offers the combination of old and new world (Chevron). Florida is known for its theme parks and among them; Disney World is considered to be the main attraction. It spreads on 47 miles and has restaurants, themed hotels mater parks, shops and gold course and attracts the people all over the world, it is not only the most favorite place for children, but also for the adult travelers. Universal Orlando made by the universal Studio, Sea world, LegoLand, Kennedy Space Centre and most importantly its beaches are the most visited places. The natural scenes and the sights in Florida are more famous among the travelers and this provides the combination of manmade and the natural sights like John Pennekamp Coral Reef State Park and Everglades that a traveler wants to pay a must visit. This feature has made Florida more attractive place form travelers with different preferences and different likings (Veness and Veness).

Shopping

Both are really big states and the shopping place that are available here are incredible. If analysis of New York’s markets and the shopping complex is done, then because of being the urban area, numerous brands can be found at a single road or street and even in the same shopping complex. There are very expensive shopping malls to the ones that offer the most economical things and the ones with discounts. The most important attribute that these malls and shopping centers offer is that they work 24 hours a day and make it really easy for everyone to shop in accordance with their preferences. The most popular market among the travelers is China town, which attracts people of all ethnicities (Chevron). Shopping Malls in Florida are also incredible like those in New York, but, the versatility is far less here. Another thing that differentiates the markets of Florida from New York’s is that most of the malls close by 11pm. The shops do not remain open round the clock and the variety of traditional and all the ethnicities cannot be found at a single place. (Campbell, Denniston and Karlin)

Conclusion New York and Florida are the beautiful states of America and are the true representatives of American culture, history and the diversity. They workers and travelers from all over the world and the people here facilitate and accommodate them among themselves. Diversity is the most beautiful feature of these states and this ensures that America is actually the land of dreams. It offers all the facilities that a traveler wisher for like easy transportation, economical hotels and the variety of food. Apart from these features they are also different in a lot of aspects. New York is known and celebrated for its urban sides, museums and galleries, whereas Florida is known for its theme parks and beaches. Difference in weather and geography make it worth visiting even from the Americans, belonging to different states. In spite of the similarities and differences in these states, these are the places that should be visited by everyone and should be on the list of travel lover.

Works Cited

Campbell, Jeff, et al. Lonely Planet Florida. Melbourne, Australia: Lonely Planet, 2014.

Chevron, Doris. MARCO POLO Travel Guide New York. Ostfildern, Germany: MAIRDUMONT GmbH & Co. , 2014.

Stone, Matthew J. and James F. Patrick. “The Educational Benefits of Travel Experiences: Literature Review.” Journal of Travel Research, 52(6) (2013): 731-744.

Veness, Simon and & Susan Veness. “The Telegraph Travel.” 2012. Telegraph. 29 June 2015 .

Krobeber develops a related decision making model. Within this model, he claims that the tourist behaviour is determined by three elements: travel perception, travel attitude and travel motivation. He further suggests that there are two level influences. The first level influence of Krobeber (1996, cited from Zhong, Zhang, Yang and Guo 2007) can be affected from internal factors such as personal psychological factor and the second level influence comes from external social factors such as family background or group influence.

Travel motivation

The main contributions regarding motivation is the Maslow’s hierarchy of needs model (Maslow 1970), the escape or seek model (Iso-Ahola 1982; Ross and Iso-Ahola 1991) and the push and pull method (Crompton 1979). Mill and Morrison (1985) argues that travel motivations fit into Maslow’s hierarchical needs – namely, physiological, safety, belonging, self-esteem and self-actualization. Also they identified two other needs: aesthetics and knowledge. The human needs physiological, safety/security and belonging/love were categorized as tension-reducing, while the self-esteem, self-actualization, acquiring knowledge and aesthetic as inductive – arousal-seeking motives (Figure 2.1)

Figure 2.1 Travel/tourism motivations

Source: (Awaritefe 2004, p. 306)

Motivation is one of variables that can explain tourist behavior; it is regarded as one of the most important variables (Baloglu and Uysal 1996). There are many of researches assure that travel decision making is best explained and predicted by the push and pull approach include Backman, Backman, Uysal and Sunshine 1995; Baloglu and Uysal 1996; Ercan, Uysal and Yoshioka 2003. Crompton (1979) explains that motivation is a necessary and important force behind all behavior.

People travel because they are pushed and pulled to do so by motivational factors (Baloglu and Uysal 1996). Push motivation is related to the decision, whether to go, and pull motivation addresses the question of where to go (Klenosky 2002). Crompton (1979) used unstructured in-depth interviews and explored push motivation and pull motivation, he summarizes that push is socio-psychological motives that activate people to travel and pull is cultural motives that attract people to a particular destination. Traditionally, the push motivations have been thought useful for explaining the desire for travel while the pull motivations have been thought useful for explaining the actual destination choice (Crompton 1979). According to Ross and Iso-Ahola (1991), push motivation can be considered as psychological factor and pull motivation is physical factor. These two factors can influence travel decisions and leisure engagements. Jang and Cai (2002) point that push refers to the internal factors that drive individuals to travel and pull is concerned about the external factors that determine where, when, and how they travel. Kim (2008) addresses that the push factor can be considered as to travel by intangible factors such as escape, relax, exploration) and pull factor is to decide destinations by tangible factors such as attractions, facilities.

Motivation as one of the most important theories, it is recognized the key of the success of travel market. Iso-Ahola (1982) observes that people take part in various leisure and travel activities due to their own need. Tourist motivation is associated with individuals’ desires for achieving various purposes through travel (Kim and Beck 2009). Furthermore, studies of tourist motivation can assist destination managers to understand “how well the destination characteristics fit the needs of the travelers” (Goeldner & Ritchie, 2006) and design tourism products and services containing tourist needs.

Destination choice and selection
2.3.1 Influential factors to make tourism decision

Once the decision made to start tourism, the decision maker is in front of many questions, such like where to travel, whom to travel with and how to travel. In general, this is a process to collect, organize and assess the information (Liu, 2008).

2.3.1.1 Environmental perception

Environment perception refers to the tourism information rooted in mind, the old information and collected information. In general, this is the whole impression for the travelling. The potential tourists would be influenced by the environment perception. Though there might be some very significant tourist destinations, the tourists will not go the famous places that have no impression in their mind and perception. That is what we called environmental perception.

Environmental perception mainly include first, the popularity of tourist, which is the first impression of the tourism destination, the tourist will neglect other same destinations; second is tourism distance, the influential factor to the decision is the imaginary distance, not the real distance of the destination. The imaginary distance is made of unreal distance, and time cost, money cost, and energy.

2.3.1.2 Principle of maximum benefit

Principle of maximum benefit refers to the tourists will get the best enjoyment within certain budget during the tourism. Tourists will think it over before making a decision to travel. The main principles of maximum benefit are:

The minimum time on tourism, it means that the decision to travel will be made according to time spending on it, if the time spending is less than a level, then the decision will be made. Tourists are in favor of less time spending on the travelling.

Second is the popularity of tourism destination. The tourism destinations with higher popularity are more attractive, and tourists have gained more information though tourism. Meanwhile, the tourism destination, which has different culture, will arouse the interest for tourism.

Beside the two factors, there are other influential factors: best tourism destination, proper price and comfortable accommodation.

2.3.1.3 Tourism preference

Tourism preference refers to the human’s impression based on their characters over the reality. The tourism preference of tourists is influenced by human’s personal impression. The tourism preference is decided by personal impression of tourists. Regarding tourism preference, there are three factors to research, including age, occupation and education.

2.3.2 Content of tourism decision

Before starting the tourism, the tourists are supposed to make a lot of decisions; any of them will take personal factors and will into consideration besides external factors. For example, they will ask for some suggestions and think about the tourism route and travelling partner. These questions mainly include information channel, decision maker, travelling partners and tourism pattern.

2.3.2.1 Information channel

Information channel is the way to obtain and collect the information. With various channel, it is able to obtain the product information, or other users’ experience of using the products. As the society turns into a information-based ear, the information channel is various, which including networking channel, newspaper, books and magazine, television, internet and tourism institutions and so on.

2.3.2.2 Decision consultant

Decision consultant is someone who the tourist will ask for suggestions before starting tourism. Potential tourists will take suggestions into consideration, and then is more likely to ask for others’ consultation about where to go and how to go.

2.3.2.3 Tourism partners

People would like to find partners when go shopping, the same like tourists, many people like to start tourism with partners. According to experts of consumer behavior, they have made further analysis on the relationship between person and his partners in shopping. According to analysis, the shopping partners are intended to provide the suggestions based on their experience on the products and marketing, while the relationship between them is not intimate, such like neighbor, colleague and schoolmates. However, the suggestions might be focusing on the person’s characters and personal demand, while relationship between them is intimate, such like family members. Choices from tourism partners are not only a reliable resource, but also the suggestions and advices.

2.3.2.4 Ways of tourism

Ways of tourism is focusing on how to reach the destination. In general, there are two ways to travel, first is joining the travelling agency, and another is individual tourism. In this context, it will specify ways of tourism into several aspects, including joining travelling agency, individual tourism depending on maps, company’s tourism, community’s tourism, institution’s tourism and others.

2.4 The senior travel market
2.4.1 The seniors travel market in oversea

For overseas countries, as they started the tourism analysis in an early time, traced from 1980, the understanding towards tourism of the old people is very fruitful (Liu, 2008). It reflects in these aspects:

Research on tourism motivation

Regarding the research of tourism for the old people, it mainly focuses on tourism motivation and perception. The research has applied many methods, including questionnaire, on-spot survey. The method mainly focuses on the incentive and influential factors. Besides these methods, many other scientific measures have been applied. For example, a survey on the old people in Israel has been made by Aliza Fleischer in 2002. According to the survey, it found that the main influential factors are income and health, also the tourism time is also changing according to age. For the people aged from 55 to 65, they have rising free time and income, which is decisive to the increasing tourism times. For the people aged above 65, as their income and health going down, the tourism time is reducing (Aliza, 2002).

Jaesoo et al. (2003) have applied neural network of describing method to estimate the weight of influential factors towards the old people’s tourism. Meanwhile, it applied the non-neural network model to describe the relationship between tourists and tourism products. Anderson and Langmeyer(1982) analyzed the relationship between the old people and tourism. According to survey, tourists aged above 50 prefer tourism or visiting relatives to enjoy themselves. However, tourist aged below 50 prefer out-door activities or other entertainment facility to enjoy themselves

Goossens (2000) proposed the model called enjoyment incentive, which is also called model of intention, stimulation and reaction. The model includes the factor of pulling and pushing. Regarding the factor of pushing, it refers to environment, social status, relax and friendship; in respect of the factor of pulling, it refers to the situation of tourism. It emphasized the relationship between pulling and pushing, it considered that these two factors are two sides of a coin, which is closely tied in tourist’s mind. Crompton and Mckay (1997) pointed out that there are 6 incentives to attend the activities, including experiencing culture, curiosity, return, and balance, social activity with friends, official activity and family activity (Crompton and Mckay, 1997).

Research on tourism behavior of the old people

Regarding the old people, the research on detailed behavior of tourism is comparatively fewer, mainly focusing on the difference of behavior compared with others. Blazey (1992) has made a research on the relationship of tourism before and after retired, plus the usage of tourism information of the old people. Lewiser Aiken (2001) has pointed out that friendship is a networking, a mental support and a resource of information and entertainment for the old people. Meanwhile, he pointed out that the old people are more reliable to get information from prints, such like newspaper and other magazines. Romsa and Blenman (1989) compared the difference of tourists aged below 50 and above 60 in German; the result is that the tourism time is more flexible for the people aged above 60.

Research on tourism market of the old people

The research market of the old people played a part in the whole research, mainly focusing on how to attract the old people in tourism market. Charles D?ZSchewe (1985) indicated that the reason to target the old people in tourism market, as they have large potential and sustainable purchasing power. Francis et al. (1988) regarding the rising number of the old people in USA, it trying to find a way to attract them for the tourism industry, and an information channel to help them set up the vacation plan.

In general, regarding the tourism behavior of the old people, the features are: the main influential factors are income and health; also time, income, health age will influence the length and time of tourism; the tourism time will be reduce in accordance with the rising age; friendship is an important information resource for tourism; tourism time is flexible; purpose of tourism is for self-enjoyment.

2.4.2 The seniors travel market in China

Since 1999, our society became an aged society, the old people was the main part of society, which is also played an important part in the tourism industry. The research of tourism behavior for the old people started from 1990, in this case, the research has been only in the primary step so far. The core of research was the tourism industry of the old people with many results. However, the research of tourism behavior’s feature of the old people is very few (Liu, 2008).

Research on the old people’s tourism

Though the experts have involved in this issue for not a long time, there has some results. Wei (2001) thinks that the tourism incentive of the old people include health, culture, history and recollecting memory. The old people prefer cultural and historical cities, and would like to go travelling with families, friends or fellows. Liu (2005) thinks that the influential factors on the old people’s shopping include friend, culture, economy, mind and heart and commercial environment.

According to a research made by Yu (2003), regarding the old people in Jiangxi, they have large demand on health recovery tourism due to the problems in health condition. Their information channel is mainly the traditional advertisement. Their way to go travelling is mainly following the travel agency. They prefer cultural and historical cities and spend less than average level. Wang (1999) argues that the old people are in a pure shopping stage which is very rational and have high requirement on quality of the products than others. Casual consumption and service consumption takes big proportion.

According to an analysis regarding the old people’s tourism industry in Taiyuan made by Zhang (2006), the travelling rate is higher for male than female, especially among the people aged from 60-65. The tourism purposes are mainly for sightseeing, self-enjoyment and recollecting memories; the shopping level are middle level, and the tourism time are seldom in peak season. A survey regarding the tourisms of the old people in Shanghai, the rate of tourism is high with moderate time. The purposes of tourism are mainly sightseeing and for health recovery which is very traditional. They spend money very carefully and will choose to follow the travel agency. They prefer transportation of bus and train. The distance of tourism mainly focuses on short or medium long. They prefer natural environment (Hou, Yin and Chen, 2005).

Also a survey regarding the old people in Fuzhou, the rate of tourism is divided into two extreme levels, high and low; the spending time of tourism is estimated to reach one week. The purposes of tourism are for sightseeing, health recovery or visiting relatives. They paid much attention on comfort, security and seldom ask for luxury accommodations. The transportation is mainly bus or train. They prefer travelling with partners and fewer will follow the travel agency. Security concern is the main obstacle for tourism (Tang, 2001).

According to an analysis regarding the old people of Chongqing in tourism industry, sports tourism has the same purposes with common tourism; the purposes are for health condition, entertainment and health recovery. The information channel is mainly from company and relatives. They prefer individual travelling. The old people held a prudential attitude towards shopping. Male is the majority to attend sports tourism. The rate of tourism is low for people aged above 65 (Yang, 2003).

The main research methods are questionnaire and interview. The research of the old people’s tourism behavior focuses on the incentive and preference, travelling method, transportation, information channel and spending cost. The features of the old people’s behavior are based on demography and influential factors of tourism behavior.

Research on tourism industry of the old people

In the domestic research, the feature of the old people’s tourism market, feasibility and expansion strategy plays a big part. According to Li (2005), regarding the old people, there are 6 features in tourism industry, such like enjoyment and prefer travelling at off-season. Li (2001) has made an analysis on the old people’s feasibility in tourism industry, which including factors of purchasing power, incentive, purpose, time and health condition. Xu and Chen (2001) proposed that it needs to focus on these factors to explore the tourism market of the old people, including research, products strategy, channel strategy and other promotions.

The research on the old people in tourism industry is mature, which has reached an agreement on features on the old people in tourism industry, feasibility, and development research and mature strategy. These results are significant to the following research. However, these researches are limited due to lack of on-spot examination (Liu, 2008).

In summary, features of the old people in tourism industry are as follows: the purposes are for self-enjoyment, sightseeing and health recovery; natural scenery and historical sites are attractive; travel time is seldom in peak season; health condition is better than before, and is able to attend some not-so-tough tourism; relatives and friends are the main information channel; joining travelling agency is the main way to tourism; prefer the tourism with family, friends and fellows; holding a prudential attitude towards travelling; taking bus and train as the main transportation with high requirements on travelling safety.

2.4.3 Researched the Nanjing seniors travel market

Consumers’ demand will trigger him to shopping and decide his shopping’s way. After entering into the old age, a person has changed psychically with rich experiences in life and consumption. Their consumption behavior is different with other ages, which is very specific and characteristic. This special consumption characteristic could be found in tourism motivation, time, manner and destination preference and other relative aspects. Research on behavior of the aged in tourism will contribute to better understanding to their demand and will help the expansion of tourism industry for the aged (Wei, no date supplied).

Wei (no date supplied) has researched the Nanjing seniors travel market and analysis several behaviors below:

2.4.3.1 Tourism motivation

Nostalgia

For the aged, they have a very memorable time in the past. Though after years, they are willing to go back to the place where they have lived, or talk with the old friends to remind the old time.

Loneliness

Generally the aged have more free time, and most of their sons and daughters live without them. Their sons and daughters are busy at work, has little time to take care parents. What they can do is to visit parents’ home on weekend and have some small talk. However, for those who work in other cities, they cannot be with their parents. In this case, many old people feel lost and lonely. Therefore, tourism is able to satisfy their life and attract their attention.

Increasing knowledge

For many old people, they only heard the names of some famous tourism destination, but due to various reasons, there is no chance to go there. Many old people want to go travelling while the health condition and economy allow, they want to feel and know the prospect of the outside world.

Health and entertainment

The life of old people is focusing on family and health from previous work. They choose to work out through tourism and entertainment, to go to the natures, for more fresh air, or to live in suburb place. Many obedient children will arrange family tourism; some will drive their car and bring parents together to go on a short tourism to peripheral area. In the tourism, the old people will have a lot of fun.

Tourism time

Due to health limitation, the old people are not willing to go travelling in winter or summer. They prefer spring or autumn, mainly in May, June, September, November (Wang, 2003). Because this period has proper temperature and humidity, it is good for travel, especially for the aged. Due to limited budget and other reasons, generally the old people are not willing to take a long trip, they prefer short or not-long trip. They want to spend a certain time, such like one week.

Tourism manner

In general, the old people need stability and security in the tourism, and ask for relax, freedom, comfort, and leisure. Most old people will choose to follow travelling agency. For the old people??their energy is weaker than other young tourists. Also, they want to enjoy their no matter vacation or rest, they want to fully satisfy their demand for fun, and do not want to pay much attention for accommodations. They prefer joining travel agency for the convenience.

Tourism destination

According to survey, the purpose of tourism of the old people is mainly for the natural prospect. The tourism with purpose of health is more than pure tourism. It signified that due to the health condition, the old people have more demand in healthy tourism. The tourism destination is closely tied with the age of tourism. The elder tourists prefer cultural destination. For the old tourist, they prefer famous mountain scenery and places of interest, especially natural scenery and revolution scenic spot (Qiu, 2006). As people have different taste to their choice, the old people have their own choice in tourism. However, no matter where to go, they will take security and convenience into consideration. In general, they prefer some places with good environment, or famous cultural cities, religion places, and places with folk custom. Also they like the destinations with slow living rhythm, longstanding culture and high status in history.

Tourism expense

The old tourists are mainly frugal and holding an economical attitude, requiring comfort and security. They ask little about luxury life. Their consumption awareness mainly is practical and economical. Though the consumption price is rising, too higher price will stop their consumption. Meanwhile, the fee is mostly paid by the old people’s children; and they do not want their children to pay a big bill. They prefer economical tourism. According to survey, there are 17% old people are in well-off economy condition with rising demand for tourism, however, another 70% old people who has requirement for tourism but they need the economical one (Liu, 2007).

As the old people get retired, they have plenty of time. Generally speaking, the old people are a group who spend longest time in tourism, with an average day of 10.3, which keeps rising (Hu, 2002). As the old people have more time to travel, they will spend more in entertainment and accommodation. Especially they have significant potential in shopping.

2.5 Hypotheses

According to Valerie (1997), setting up and testing a hypothesis is an essential part of statistical inference. In order to create a test of a hypothesis, the starting point is to present a theory that is either believed to be true or is intended to be used as the basis for an argument. The aim of using a hypothesis here is to investigate the real perceived impact of the tourism industry in Huairou. Generally speaking, a hypothesis is a type of prediction which will not always turn out to be accurate, depending on the facts of the particular case. So, all of the predictions must be tested and proven (or disproved) using data analysis and/or further investigation.

The hypotheses are based on a review of the prior literature, and the hypotheses have two parts.

Tourism is one of the world’s most important activities, involving millions of people, vast sums of money and generating employment in developing and industrial countries.

The economies of Tourism presents new insight into the intricacies of tourism demand, firms and markets, their global interrelations and the fundamental contribution of environment to tourism activities, to offer an accessible, interdisciplinary analysis of the interwoven fields of tourism and economics.

Today, tourism is one of the largest and dynamically developing sectors of external economic activities. Its high growth and development rates, considerable volumes of foreign currency inflows, infrastructure development, and introduction of new management and educational experience actively affect various sectors of economy, which positively contribute to the social and economic development of the country as a whole.

Most highly developed western countries, such as Switzerland, Austria, and France have accumulated a big deal of their social and economic welfare on profits from tourism.

According to recent statistics, tourism provides about 10% of the world’s income and employs almost one tenth of the world’s workforce. All considered, tourism’s actual and potential economic impact is astounding. Many people emphasize the positive aspects of tourism as a source of foreign exchange, a way to balance foreign trade, an ‘industry without chimney’ ‘ in short, manna from heaven.

But there are also a number of other positive and negative factors of tourism on economy for local communities. Therefore in this essay the researcher will explain the impact on economy due to tourism to local communities.

Relationship between Tourism and Economic Development

Tourism is of great importance in any country’s economic growth and on conversely economic growth will initiate growth in tourism activities in any economy. The importance of economic development to tourism is widely accepted (Pearce, 1995). Tourism has been regarded as the main instrument for regional development as it stimulates new economic activities; it has a positive economic impact on the employment, foreign exchange earnings, production and gross income. However uncontrolled and unplanned tourism activities can lead to a negative impact on the society (Fossati and Panella, 2000).

Positive Impact of Tourism on Economic Growth

Tourism is classified as one of the fastest growing industries worldwide. It contributes extensive economic benefits on both sides, for the tourist home country as well as the visiting country. In less developed Countries tourism activities are regarded as resources which are expected to enhance economic growth. When tourists travel internationally apparently the host country earns foreign currency, hence the inflow of revenue creates government revenue, business turnover, household income and employment (Archer and Fletcher, 1991). Domestic tourism will have the same effects on the host country while international tourism creates an inflow of foreign currency while on the other hand domestic tourism creates spatial redistribution of local currency within the boundary of the country (Archer et al., 1998).

Negative Impact of Tourism on Economic Growth

Most Less Developed Countries (LDC’s) depends on foreign aid from the developed world to stimulate its economic growth as well as to cover budget deficits in social services and infrastructure activities. In this context therefore, tourism growth creates an illusion to the aid provider to limit and cut their financial aid as a result many countries that depend on financial assistance are affected, which leads them remaining poor. For a different perspective the enormous inflow of tourists may lead to price increase of many goods and services in the tourist destinations by which in turn the societies around are affected as they have to follow the price pattern. Further more tourists are interested in very narrow range of products such as beauty products, gifts, sports equipments clothes, meals and special products like chocolates, which the local residents are not always in need of, and this leads them to change their buying behaviour and shift to other points of sale.

On other hand it is assumed that mass tourism increases land price, it also creates additional demand for land whereby potential buyer compete hence a higher price. The local people are required to pay more for their homes. Generally, mass tourism leads to higher land value, more jobs and wealth. Conversely, in a situation when tourism demands are very high inflationary tensions in tourism spill over the economy at large and contribute to a large inflation (Wall and Mathieson, 2006).

Travel and Tourism in South Korea

The Republic of Korea (South Korea) is located about 500km off the coast of mainland China, and forms the entire southern half of the Korean peninsula. There are many hundreds of small islands to the south, most of them uninhabited. The territory is mixed in character, with considerable mountainous areas. Consequently, most of the largest settlements are on the southern and eastern coasts, the capital city of Seoul being the notable exception. The present capital is Seoul.

Economy and Tourism of South Korea

South Korea is Asia’s fourth-largest economy and slowed to 2.2% in 2008, after several years of strong growth. In 2009, GDP reduced by 0.8%, due to the global economic downturn. Given this country’s reliance on exports, the recovery would depend on the rebound of global demand. An economic recovery was expected in 2010 with a 3.7% growth in GDP, while further improvement is forecasted in 2011, with a 4.6% increase in GDP;
Private consumption registered a moderate year-over-year increase of 0.9% in 2008 and is forecasted decline by 0.4% in 2009, before rebounding to 2.7% in 2010. In 2011, private consumption is expected to gain momentum and improve by 3.8%;
The unemployment rate rose to 4.0% in 2009, which was due to the global economic slump as a result of demand from the export dependent country. The ensuing slowdown in employment has been the countries worst since the 1997-98 Asian financial crisis. As South Korea’s economy emerged out of the 2009 recession, unemployment is forecasted at 4.1% in 2011, as employers remain cautious in hiring new employees;
South Korea’s consumer prices grew at their fastest pace with a 4.7% growth in 2008, which was caused by high oil and other commodity prices. Rising inflation has affected the country’s economic growth and has impacted the country’s ability to pull out of the recession in 2009. Inflation fell to 2.7% in 2009 and 2.1% in 2010;
The Korean Won weakened greatly in 2008 and depreciated further in 2009. The Won is forecasted to appreciate in 2010 and improve by in 2011.

Impact of the Global Recession

The South Korean economy posted negative quarter-on-quarter growth of 6% in the fourth quarter of 2008 in the wake of the economic turmoil triggered by the global financial crisis. This was the first time since the financial crisis in 2007 that negative growth was recorded. This was followed by positive growth of well below 1% in the first quarter of 2009 and 2% in the second quarter. In 2008, as the economy began to spiral downwards, the South Korean job market became unstable, and, as a result, unemployment rose to 4% in early 2009 from the average of 3.5% seen over the review period. More worryingly the unemployment rate amongst South Koreans in their 20s stood at nearly 9% in 2009. Furthermore, disposable income shrank in the majority of households. Meanwhile, during the first quarter of 2009, the lowest 20% of South Korean taxpayers saw a 5% decline in their average income.

As the job market deteriorated, the government promoted a job sharing campaign, whereby annual pay increases were frozen or annual salaries reduced to enable the employment of more people. Increased job sharing is another factor contributing to the country’s declining disposable income levels.

Current Impact

As the economy continued to struggle, consumers reduced spending on clothing, leisure pursuits and dining out, according to a survey conducted by the South Korea Chamber of Commerce. Outbound tourism, which saw annual double digit volume growth over the first three years of the review period, saw negative growth of 7% in 2008, followed by a further decline of 18% in 2009. However, domestic tourism saw growth of 9% in 2009, as South Koreans continued to struggle as a result of the ongoing fallout of the global economic crisis. Furthermore, in line with this tendency of pursuing cost-effective domestic holidays, increased consumer preference for mid- and low-priced accommodation was evident.

Outbound Tourism of South Korea

Departures saw a turn down in 2008 after seeing double digit growth in each of the first three years of the review period. 2009 saw departures decline further as negative growth of 18% was recorded, largely due to economic uncertainty and the H1N1 pandemic. Compared with 2008, travel abroad became more affordable for Korean tourists following a strengthening of the won in the second half of 2009. However, the expected resultant increase in outbound tourism never materialised due to the global outbreak of the H1N1 virus.
Outbound golf tourism decreased in popularity in 2008 and yet further in 2009. This was largely as a result of the ongoing impact which the global financial crisis had on the country, related to the increased price competitiveness of local golf courses.
Outgoing tourists have became far more price-conscious since 2008, and the former reliance on package tours declined yet further in 2009 as a result of price increases driven by rising oil prices and a weakening of the South Korean won during the first half of 2009.

Destinations Korean’s Visit

China, being a relatively inexpensive destination due to its proximity, is the most popular destination for South Korean tourists, particularly first-time travellers. Departures to China declined in both 2008 and 2009.

Despite the decline seen in 2008 and 2009, China remained the most popular outbound destination, in accounting for 29% of all departures in 2009. Japan, the second most popular destination, accounted for 15% of all departures. Japan is a popular destination amongst South Koreans of all age groups because of the country’s wide variety of attractions, as well as its proximity. However, Japan’s high consumer prices and strength of the Japanese yen make it an unaffordable destination for many South Koreans.

Departures by Country of Origin

‘000 people

2004 2005 2006 2007 2008 2009

Australia 172.3 197.4 213.2 201.5 179.3 153.8

Canada 133.8 139.2 146.8 153.4 138.6 124.2

China 2534.8 3156.8 3512.8 4004.3 3520.4 2856.4

France 79.9 95.2 107.8 121 114 100.7

Germany 141.8 141.3 124 140.9 125.9 111.6

Hong Kong, China 86.4 105.6 98.2 106.7 109.1 107.4

India 305.4 403.3 512.6 636.7 684.7 571.6

Indonesia 228.4 252 280.5 327.8 369.1 356.8

Japan 1569.2 1734.8 1917.9 2345.8 2167.2 1463.8

Malaysia 91.2 158.2 189.4 224.9 267.5 234.5

Philippines 90.7 91.8 97.8 83.3 68.2 54.8

Russia 337.2 452 569 654 611 567.5

Singapore 52.9 54.7 47.5 56.1 51.9 47.3

Taiwan 190 269.1 368 396.6 363 325.6

Thailand 134.6 171.9 176.5 201.8 222.3 183.2

United Kingdom 754.1 781.3 898.8 881.2 759.6 613

USA 111.8 116 120.1 129.9 110.3 93.1

Vietnam 627.6 658.1 687.7 724.9 686.2 626.9

Other Countries of Origin 1118 1189.7 1008.7 889.7 870.7 789.4

Total 8760.1 10168.4 11077.3 12280.5 11419 9381.6

(Source: Euromonitor International)

Leisure – Outbound

The decline in outbound tourism witnessed in 2009 was mainly due to a decline in leisure departures. Leisure departures saw a decline of 20%, or close to 2 million people, in 2009 mainly as a result of the ongoing effects of the global financial crisis and the negative impact of the H1N1 virus.

Organised tour groups departures saw decline of 23% in 2009 as Koreans avoided expensive package holiday products. The proportion of total departures accounted for by organised tour groups saw a steady decline over the review period from 52% in 2005 to 40% in 2009. While organised tour groups showed a downwards trend, the number of free independent travellers (FITs) saw growth over the review period, although a decline was witnessed in 2009.

Business – Outbound

Business departures at 2 million in 2009 comprised 22% of total outbound tourists in 2009. MICE tourists accounted for 86% of total business departures in 2009.

The consistent flow of both leisure and particularly business tourists to the US left the country as the third largest destination for South Korean tourists in 2009.

Despite the fact that the H1N1 virus became widespread in the US following its initial outbreak, departures to the US only saw a decline of 9% in 2009, compared to the 18% decline seen in departures as a whole.

Inbound Tourism of South Korea

Following the strong arrivals growth of 8% witnessed in 2008, inbound tourism was further boosted by the declining value of the South Korean won against the US dollar and Japanese yen in 2009, leading to arrivals growth of 15%. Furthermore, inbound tourist receipts saw growth of 10% in 2009.

As the South Korean economy began to recover over the course of the year, the won strengthened and, as a result inbound tourism began to taper off from June 2009. While incoming tourist receipts increased by 10% in 2009, arrivals saw growth of 15%, as average spend per visitor declined.

While Hallyu, a term referring to the popularity of South Korean culture, artists and media content, particularly television dramas, still motivates Asian tourists to visit the country, the national tourist office increased its efforts to boost inbound tourism in the wake of the strengthening of the South Korean won.

The Korea Tourism Organisation (KTO) issued coupon books for independent tourists travelling from Asia. These contained coupons issued by nearly 20 entities, including retailers, theatres, theme parks, restaurants and skin care shops, and offered discounts ranging from 5% to 50%. The coupon books were distributed through consulates and KTO’s English-language website.

Country of Origin

Arrivals from Japan saw growth of 28% in 2009 to reach 3 million, 45% of total arrivals. The strengthened value of the Japanese yen revived outbound tourism in Japan, and South Korea saw a surge in Japanese tourists in 2008. The Japanese tourist inflow increased further during the first four months of 2009, but slowed thereafter, as the Korean won began to strengthen against the Japanese yen. Furthermore the Japanese government recommend travel restrictions in light of the H1N1 virus outbreak. Despite these setbacks the arrivals growth of 28% seen in 2009 represented a significant improvement on the 6% recorded in 2008.

China was South Korea’s second largest source of inbound tourists in 2009 in accounting for 15% of total arrivals during the year. Arrivals from China saw growth of 10% in 2009, down from the 15% witnessed in 2008. According to the Korea Tourism Organisation, this decline was due to the failure of organised tour groups to attract sufficient tourist numbers in June and July. The majority of Chinese tourists to South Korea come in organised tours due to the incentives on offer from travel agents in collaboration with many related parties, including local government agencies eager to attract Chinese tourists.

Arrivals by Country of Origin

‘000 people

2004 2005 2006 2007 2008 2009

Australia 75.2 82.7 87.6 89 100.3 98.2

Canada 93 121.4 130 118.9 125.7 130.7

China 410.3 494.1 626.2 814.8 939.7 1031

France 35.2 38 40.6 46.6 52.3 52.6

Germany 59.7 66.4 67.2 74.1 78.2 83.8

Hong Kong, China 147 157 134.7 131.2 151.2 198.6

India 33.4 34.3 36.7 41 42.9 39.6

Indonesia 34.9 35.4 35.8 38.7 48.9 46.2

Japan 2409.9 2406.6 2310.4 2204.6 2345.6 2994.1

Malaysia 73 75 74.3 65.7 66.9 61.2

Philippines 60.3 62.9 69.3 70.3 75.2 74.4

Russia 76.7 62 61.3 62.9 66.2 66.9

Singapore 74.6 71.6 70.9 75.3 77 77.5

Taiwan 305.5 352.1 328.1 326.1 315 342.7

Thailand 70.1 77 88.6 99.5 116.9 134.3

United Kingdom 64.5 70.8 73.5 74.6 81.9 84.7

USA 535.8 556.1 637.3 659.6 674.8 661.3

Vietnam 20.3 27.3 28.9 37.8 51.6 60.8

Other Countries of Origin 319.1 329.3 339.9 364.3 389.3 420.3

Total 4898.5 5120 5241.3 5395 5799.6 6658.9

(Source: Euromonitor International)

City Arrivals

South Korea’s capital, Seoul remained the most popular destination for arrivals in 2009, as more than 2.5 million inbound tourists visited the city. Inchon, Busan, Jeju, Daegu and Daejeon were the next most popular destinations.

Seoul offers a variety of attractions, including cultural treasures such as museums and palaces, as well as huge marketplaces, theme/amusement parks and beauty shops. Myongdong downtown area is host to a variety of activities, including shopping, dining out, skin care, and entertainment. The large number of inbound tourists visiting traditional marketplaces in 2008 and 2009 compensated for the reduction in local shoppers seen as a result of the economic downturn. According to a national tourist office survey, shopping remains one of the most popular activities amongst inbound tourists visiting South Korea.

The city of Incheon has seen arrivals growth in recent years not only because of its proximity to Korea’s largest international airport, but also due to the promotion of the new business centre located there.

A business hub, which uses Dubai as a benchmark, is being developed in Songdo on 1,500 acres of reclaimed land. With the planned city slowly taking shape, Incheon Metropolitan Government has been actively promoting Songdo globally as a venue for international events.

Leisure ‘ Inbound

Leisure arrivals, which saw growth of 17%, accounted for some 95% of total arrivals in 2009. The increase in leisure arrivals in the midst of the fallout from the global economic crisis was largely attributable to the weakening of the South Korean won.

Organised tour groups accounted for 35% of total arrivals in 2009. Organised tour groups remain the most popular way to travel to South Korea due to the language barrier involved for the majority of arrivals.

Business ‘ Inbound

Business arrivals saw a decline of 8% from 382,509 in 2008 to 349,211 in 2009. This decline was largely as a result of the global economic downturn, as companies reduced their spending on business travel.

The share of total business arrivals accounted for by Meetings, incentives, conferences and events (MICE) increased from 91% in 2008 to 93% in 2009. MICE arrivals were less affected than other types of business arrivals, as KTO has actively sought to attract them through its subsidiary, Korea Convention Bureau (KCB) since 1979. Furthermore, an increased number of large scale MICE events, such as the 2009 Herbalife Asia Pacific Extravaganza which attracted 20,000 attendees, were held in Seoul in 2009.

The national tourist office claims that South Korea is the twelfth-ranked country in terms of hosting international meetings. South Korea held 293 international meetings in 2008, up from 268 meetings recorded in 2007.

Efforts Made To Uplift Tourism

Domestic Tourism Sees Healthy Volume Growth

In the recent years South Koreans have turned to domestic travel, as outbound tourism became unaffordable for them, in the dire economic climate. Jeju Island, South Koreas most popular domestic holiday destination, due to its exotic subtropical climate and well established resorts, saw a record number of visitors in 2009. Furthermore there were a number of people who visited national parks as large percentage of population choose a relatively inexpensive holiday due to the recession.

The number of domestic tourists visiting campsites also grew significantly, partly due to the increased number of auto-campsites available, but also due to a growing consumer desire to save money.

Low Cost Carriers Achieve Higher Penetration

‘ Low cost carriers contributed to the growth seen in domestic tourism by providing affordable flights. The role of low cost carriers remains insignificant on international routes due to the limited number of routes covered. But low cost flights to domestic holiday destinations became increasingly popular in 2009, which helped South Korea’s four low cost carriers improve their position in domestic air travel. In general, air travel is not a popular mode of transportation for domestic travel, due to South Korea’s relatively limited size. However, it is the preferred mode for tourists looking to visit Jeju Island. The use of low cost carriers for the 30 minute flight to Jeju Island became commonplace amongst domestic tourists in 2009.

Medical Tourism as a Tourism Growth Driver

‘ The South Korean medical sector was subject to strict advertising restrictions under previous legislation. However, the government is now supporting its liberalisation in the hope of increasing competition. Hospitals will be allowed to advertise their services through television for the first time.

The liberalisation of South Korea’s medical sector is expected to promote the growth of medical tourism in the country. South Korea’s advanced medical resources and competitive prices are expected to see the country become an increasingly important medical tourist destination. Some travel retailers have already taken steps to establish themselves as leaders in this emerging field.

In 2007, 6.4 million foreign tourists visited South Korea, making it the 36th most visited country in the world and this number is expected to exceed 8.5 million in 2010. Most non Korean tourists come from Japan, China, Taiwan and Hong Kong.

The recent popularity of popular culture in these countries has increased tourist arrivals. Seoul is the principal tourist destination for visitors; popular tourist destinations outside of Seoul include Seorak-san national park, the historic city of Gyeongju and semi-tropical Jeju Island. Traveling to North Korea is not normally possible without a special permission, but in recent years organized group tours have allowed groups of South Korean citizens to visit Kumgang-san.

The Positive and Negative Social and Environmental Impacts of Tourism

Socially tourism has a great influence on the host societies. Tourism can be both a source of international amity, peace and understanding and a destroyer and corrupter of indigenous cultures, a source of ecological destruction, an assault of people’s privacy, dignity, and authenticity.

Here are possible positive effects of tourism:

Developing positive attitudes towards each other
Learning about each other’s culture and customs
Reducing negative perceptions and stereotypes
Developing friendships
Developing pride, appreciation, understanding, respect, and tolerance for each other’s culture
Increasing self-esteem of hosts and tourists
Psychological satisfaction with interaction

So, social contacts between tourists and local people may result in mutual appreciation, understanding, tolerance, awareness, learning, family bonding respect, and liking. Residents are educated about the outside world without leaving their homes, while their visitors significantly learn about a distinctive culture. Local communities are benefited through contribution by tourism to the improvement of the social infrastructure like schools, libraries, health care institutions, internet cafes, and so on. Besides, if local culture is the base for attracting tourists to the region, it helps to preserve the local traditions and handicrafts which maybe were on the link of the extinction.

On the other side tourism can increase tension, hostility, and suspicion. Claims of tourism as a vital force for peace are exaggerated. Indeed there is little evidence that tourism is drawing the world together (Robinson 1999). In this context economic and social impacts on the local community depend on how much of the incomes generated by tourists go to the host communities. In most all-inclusive package tours more than 80% of travellers’ fees go to the airlines, hotels and other international companies, not to local businessmen and workers.

On the other hand large hotel chain restaurants often import food to satisfy foreign visitors and rarely employ local staff for senior management positions, preventing local farmers and workers from reaping the benefit of their presence. Tourism has the power to affect cultural change. Successful development of a resource can lead to numerous negative impacts. Among these are overdevelopment, assimilation, conflict, and artificial reconstruction. While presenting a culture to tourists may help preserve the culture, it can also dilute or even destroy it. The point is to promote tourism in the region so that it would both give incomes and create respect for the local tradition and culture. There are also both negative and positive impacts of tourism on the local ecology. Tourism often grows into mass-tourism. It leads to the over consumption, pollution, and lack of resources.

Preparation

First and foremost, the angle is preparation. Preparation is an important thing for people that want to travel. A good preparation before travel will lead to a much enjoyable trip. These days travel and tourism industry is growing very fast. Firstly, to prepare for the trip, researches are first done to know more about the country. Nowadays, all the travel agencies are well connected to various hotels, airlines, and railway agencies. So, the tourists of tour do not have to spend extra time preparing the itinerary. Besides that, travel agencies serve their clients by providing best tour packages at cheaper rates. That’s why, these tour packages is very much in fashion these days. These packages have their own benefits. On the other hand, if tourist prefers to travel in the F&E method, researches regarding accommodation, food, travel spots, or transportation have to be done personally through the internet or by personal experience from others.

Other than that, the checklist of that tour and “free and easy” preparation are different. If go with a tour, travelling agencies has taken the courtesy to come up with a check list of necessary documents and necessities before travelling. Furthermore, travel agencies will always remind the tourist to bring the necessities before go for travel. In this case, tourist may travel comfortably. But for F&E, checklist must be created by you, if you remember to create one. One of the benefits of creating your own personal check list is clearly because it would be more personal and intimate. Anyway, tourist that travels with “free and easy” have to always bear in mind to bring things in the checklist before travelling because no one will remind the tourists unlike tour.

Time

Second angle would be time. Time is very crucial element. This is because every second wasted during the trip, is every second lost, therefore time management is very important. By following a tour, tourist is guaranteed to enjoy the trip to the fullest extent. The whole trip is scheduled specially for different types of tourist, for example, shopping tours, historical tours, and relaxing tours. But, there is always a price to pay for all this convenience. The scheduled is so packed that sometime, only a short limit of time is applied to each travel spot. Hence tourists do not have the option to stay back or just go. Punctuality is most likely to be favored. However, in the F&E tour, the whole trip is literally, prepared and done by the same tourist. Thus, tourists are able to provide a looser schedule or itinerary. Besides that, sudden change to the trip is always applicable. In this case, punctuality is not an effecting variable.

Cost

Next the third angle would be cost of expense. The cost of these two trips varies greatly. It can be different in two different aspect, flexibility of cost and budgeting the cost of expense. Tour is said to be less flexible because tourist have to pay a fixed amount of money for any relevant package they chose. Example, if a tourist wanted to visit Indonesia, if he is taking a tour he is only had a choice to pay RM2000 to go to Jakarta. As for the F&E tour, it is much more flexible. Tourist may cut off and add in any expenditure during the trip and just travel the place they wanted to visit. For example, another tourist that wanted to visit Indonesia and he doesn’t want to follow by tour he can choose where ever place to visit other than Jakarta.

As for the budgeting of the cost of expense, the tour’s travelling package has already included everything from accommodation, air ticket, foods and others with a fix amount of money. The only budget to work out is for shopping or emergency use. But if following the F&E, all of the above cost included in the tour has to calculated and figured out carefully because of its tight budget so that we won’t over spend our money for unnecessary things.

Safety

Fourth angle would be safety issues. Safety is a very important factor when travelling. Visiting foreign places exposes the tourist into danger constantly because, due unfamiliar with the new place. Travelling by tour is said to be more secured because a tour guide is much more familiar with the trip and is responsible to put their clients safety as first priority. On the other hand, travelling in F&E tourist’s safety is not assured to the maximum. Furthermore, cheaters usually pick on small group of foreign tourist to cheat on for their money, properties, and sexual violations too.

Moreover, travel agencies make it a must for every client of theirs to first purchase travel insurance before travelling with them. Normally the insurance fees are already included together with the tour package. Therefore, obviously, there is much more level of protection. For F&E insurance is an option to choose.

Experience

The experiences that tour tourists gain are different from free and easy tourists. Firstly, the people that tour meet are different from free and easy. In a tour, tourists are travelling in a big group, tourists have the chance of making new friends during the trip. Other than that, the fact that they all originated from the same country, communication is not a problem. After the trip, they are possible to become good friends. For free and easy, like hitch hiking it is normally done in a small group and usually good and close friends. Thus, they may not have the opportunity to social actively with the people of the country, but free and easy tourists have more opportunities to interact with the locals. For example, free and easy is more flexible though out the whole trip, they can choose things that they want to explore base on their desire and their time are always adjustable compare to the tour that is fully scheduled by travel agency, so free and easy tourists have more chances to interact with the local’s peoples and explore the local’s culture.

Next, the commercial experience for tour and “free and easy” are not similar. When travelling with a tour, usually the travel agencies have a contract with local business in the country to make extra income that can lead to a raise in the economy for the particular country. Business for example, restaurants, shopping malls, galleries, local product shops will be a must stop for the tour. But for the free and easy, like hitch hikers normally look forward to the country’s beautiful scenery, local delicacies, local people, local culture and a whole new different experience. Ordinarily, tourist that takes this trip is to escape from the urban stress and not to face commercial promotions.

Benefits

The last angle is which method of traveling is most beneficial. Most of the time tourist will prefer travelling with the most convenient and discount rates. Convenience is very important when travelling because tourist expect to have least amount of stress and prefers to just sit back and relax. For that result, taking a packaged tour is most likely to be the best choice. By just choosing which country and they wish to explore any time of the year will do the deal, the else are all taken care by the agency itself. Furthermore, travel agencies has already commercialized into franchise retailers. In this modern era, everything can be done with the internet too, simplifying the whole process into just a click from a finger. On the other hand, F&E will not be as convenient as the packaged tour. Air ticket has to be book much earlier for a cheaper price, and same goes to the hotel bookings too. All of the transaction have to be made via internet paying through credit card services. Any sudden changes will not be permitted as a fine will be charged.

Next, travel agencies have connection all a around the world, hence having special promotions and price rates, according to the season. Tourist which prefers to enjoy everything with a simple decision will prefer it very much. Hence, travelling by tour is much more pocket- friendly. F&E also has special promotions but only limited to a very short period of time only.

In a nutshell, according to the article is most clearly stated that the benefits of taking a tour are much more compared to F&E travelling. From six of the angles in the articles, specifically during the preparation of the trip at the beginning, the time consumed for preparation and processing the transaction, all the cost and expenses for tour package or F&E tour, safety measurements for the trip, experience comparison among the methods of travelling and benefits awarded during the trip.

The first organisation I want to talk about is Virgin Atlantic. Virgin Atlantic is an extremely popular and successful airline. Virgin Atlantic provides many services on board their flights, and it’s a scheduled service.

Organisation Two: The Tour Operator – Thomson.

The second organisation I’m going to talk and describe is Thomson Tour Operators which is part of the TUI group. Thomson are a multinational tour operator, and they offer a great deal of services towards the consumers who choose to holiday with them. A tour operator has major responsibilities towards the consumer, the travel agent that books the holidays, flights and other ancillary services, and even airport staff from ground handling and aircraft maintenance. Although Thomson can fall under the category of airline, they are also a tour operator and travel agents. Thomson is listed in all three component areas. Thomson specialises in package holidays, but it doesn’t just limit the company to that. It provides a great deal of services towards the customer such as:

Flights

Hotels

Car Hire

Insurance

Package Holidays

Below I will analyse and discuss the services of each of the above listed products.

Flights: Flights are a crucial product of Thomson. With Thomson creating package holidays to match their customers specific needs, they need a way to transport them to their destinations. Thomson have a large fleet of aircraft in their company, almost the majority being Boeing 767’s. When a customer books a holiday with Thomson, naturally, the travel agent or their company website that books the holiday, has to arrange seats on an aircraft. Thomson are a chartered airline, and offer many inflight services, at a small cost, or sometimes, depending on the service completely free. Thomson’s airlines offer the customer services such as Duty Free, on board entertainment, meal and drinks services, premium class and priority handling. This is a difference with low cost budget airlines, as a charge has to be made for all services, right down the baggage allowance.

When a customer books a package holiday, or even just a flight, for a specific date, a seat on one of Thomson’s aircraft has to be available, otherwise, the customer can simply not go on that date.

Hotels: Travel companies and tour operator’s leases hotel rooms from many chains of hotel, so their customers can reside there whilst on their holiday. This all comes back to availability, if a customer books a package holiday, the flight seat has to be available, along with a hotel room, or as many rooms required by the consumer. However, this is not that big an issue, as computers and technology makes this easy for travel agents or even the customer at home.

Hotels have to be up to the standard stated on Thomson’s website, if Thomson’s state that a hotel has five stars, it has to have five stars, again with product description, if the website of the travel agent where the holiday was booked states that the hotel has a sea view, then it must otherwise this breaches the trades and product description act. Hotels have to live up to not only the consumer expectations, but the Tour Operator’s too, in this case Thomson. Thomson want’s the customer to have a relaxing and enjoyable time whilst on holiday, and if the hotel is damaged, or services are not up to scratch, this can seriously jeopardise the customers overall happiness and satisfaction. The consumer may, or probably will complain to a travel rep onsite, and this is reported back to Thomson or the travel agents where holiday was booked, the Tour Operator may choose to terminate the contract if a high volume of complaints are received, as this will not only damaged the hotels name, but also Thomson’s too, who are responsible for the customers satisfaction. Errors like this can prevent return business, and referral to that customers friends. It’s all about first impressions.

Now within the hotel, there are many roles that have to be performed daily or regularly. A major role that is essential, not only to maintain the hotel is cleaning. The hotel has to be clean, not only for the image and reputation of the hotel, but for the customers satisfaction. If a customer walks into the lobby, and finds garbage and paper all over the floor, their first impression of their accommodation will not be the best, and may put them off from enjoying their holiday all together. Rooms are cleaned daily in hotels, but certain hotels have gone “green” meaning services such as bed sheets are only changed every other day, and towels are washed every few days, unless stated by the customer, by the use of a card that informs the cleaners to take away and replace the towels and sheets. Hotels are responsible for the satisfaction of the customer, as well as the travel reps, and tour operator. All staff in hotels should be friendly, including the cleaners. Hotel staff are responsible along with a travel rep, in this case a Thomson Travel rep to ensure that the customer is enjoying him/herself. If a customer has a problem, they should feel like they can approach a travel rep, or a member of the hotels staff, to complain and have the problem addressed. Complaints should be dealt with quickly and appropriately. If there is an issue with a hotel room, and the customer is dissatisfied, then the customer should either be given a replacement room, or have the problem resolved as quickly as possible.

Pass Three: Write a review on the different types of interrelationships in the travel and tourism industry for example: Chains of distribution, integration (Including both Horizontal and Vertical) and interdependencies. Use diagrams where applicable to illustrate your review.