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Mark Anthony Camilleri - Travel Marketing, Tourism Economics and the Airline Product

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Mark Anthony Camilleri Travel Marketing, Tourism Economics and the Airline Product
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Part I
An Introduction to Travel Marketing
Springer International Publishing AG 2018
Mark Anthony Camilleri Travel Marketing, Tourism Economics and the Airline Product Tourism, Hospitality & Event Management
1. The Tourism Industry: An Overview
Mark Anthony Camilleri 1
(1)
Department of Corporate Communication, University of Malta, Msida, Malta
Mark Anthony Camilleri
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Abstract
This chapter introduces its readers to the concept of tourism. It sheds light on the rationale for tourism, as it explains the tourists inherent motivations to travel. It also describes different aspects that together make up the tourism industry. Tourists travel to destinations that are accessible to them. They require accommodation if they are visiting a place for more than 24 h. Leisure and business travellers may also visit attractions, and engage themselves in recreational activities. Hence, the tourist destinations should have the right amenities and facilities. In this light, this chapter clarifies how destinations may offer different products to satisfy a wide array of tourists. Tourism products can include; urban (or city) tourism, seaside tourism , rural tourism , ecotourism , wine tourism , culinary tourism , health tourism, medical tourism , religious tourism , cultural (or heritage) tourism , sports tourism , educational tourism , business tourism (including meetings, incentives, conferences and events), among others. In conclusion, this chapter lists major points of interest in North America to clarify how diverse destinations may be appealing to different tourists, for many reasons.
1.1 Introduction
This chapter describes the main sectors within the travel, tourism and hospitality industries. It provides a good overview of the vertical and horizontal inter-relationships between different sectors. Firstly, this chapter describes the nature of tourism and the individuals inherent motivations to travel. Secondly, it distinguishes the constituent parts that make up the tourism product, including; accessibility , accommodation , activities, attractions and amenities. Thirdly, it suggests that tourist destinations are increasingly attracting a wide array of travellers who may have different needs and wants.
1.2 Defining Tourism
Individuals become tourists when they voluntarily leave their normal surroundings, where they reside, to visit another environment. These individuals will usually engage in different activities, regardless of how close or how far this environment (destination) is (Hall, 2008; Holloway & Taylor, 2006; Jafari, 2002). Therefore, tourists are visitors, and what they you do whilst visiting another place may be considered as tourism. Back in 1963, the United Nations Conference on International Travel and Tourism agreed to use the term visitors (other than residents) to describe individuals visiting another country. This definition covered two classes of visitor : Tourists were classified as temporary visitors staying at least 24 h in a destination. If they are travelling for recreation, health, sport, holiday, study or religious purposes, their visit could be categorised as leisure. Alternatively, excursionists, including cruise travellers may be considered as temporary visitors, if they stay in a destination for less than 24 h. However, these definitions fail to take into account the domestic tourists. In 1976, the Institute of Tourism (which later became the Tourism Society) suggested that tourism is the temporary short-term movement of people to destinations outside the places where they normally live and work. Therefore, tourism includes the movement of people for all purposes, including day visits or excursions (Cooper, 2008; Holloway & Taylor, 2006).
This broader definition was slightly reformulated at the International Conference on Leisure Recreation Tourism that was organised by the Worldwide Network of Tourism Experts (AIEST) and the Tourism Society in Cardiff, in 1981: Tourism may be defined in terms of particular activities, selected by choice, and undertaken outside the home environment. Tourism may or may not involve overnight stay away from home. In 1991, the United Nations World Tourism Organisation declared that Tourism comprises the activities of persons travelling to and staying in places outside of their usual environment for not more than one consecutive year for leisure, business or other purposes. At this stage, one could differentiate between domestic and international tourism (Yuksel, 2004). The former refers to travel that is exclusively undertaken within the national boundaries of the travellers home country. The latter refers to travel within the borders of ones home country. Domestic travel will have an impact on the balance of payments and will reduce the outflow of money from the tourists home country (Mathieson & Wall, 1982).
1.2.1 The Nature of Tourism
At this stage, it is important to realise that there are two types of travellers : There are those who travel for reasons of business. Others may travel for personal motives, including visits to friends and relatives (VFR travel); study; religious pilgrimages; sport; health, et cetera. For the first group, the decision to travel, and where to go, is largely beyond their control. The business travellers will have little discretion in the choice of their prospective destination, or on the timing of their trip. Generally, the purpose of their trip is not to enjoy the destinations attractions and facilities. Business travel is usually arranged at short notice and for specific and brief periods of time; the duration of their itinerary may often be as short as a day (Swarbrooke & Horner, 2001). In this case, there could be a substantial journey time involved. For these reasons, business travellers need the convenience of frequent, regular transportation facilities, efficient, reliable services and good accommodation facilities (in terms of accommodation and catering) of a high standard, at their destination (Jafari, 2002). Very often, business travellers will be less concerned about the cost of travel, as their employer could be paying for their travel arrangements (Gustafson, 2012). Higher prices will not deter them from travelling, nor will lower prices encourage them to travel more often. Therefore, there seems to be inelastic demand for business travel (Gillen, Morrison & Stewart, 2003; Brons, Pels, Nijkamp & Rietveld, 2002; Arnott, De Palma & Lindsey, 1993). On the other hand, leisure travel is highly elastic for those travellers who are price-sensitive. The lower prices for holidays to particular destinations will usually lead to an increase in the aggregate numbers of travellers (Hall, 2008). Frugal tourists will usually shop around for affordable holidays (Xiang, 2013). Therefore, they may be prepared to delay their travel, or to book well in advance of their travel dates, if this would translate to a significant reduction in their travel costs (Russo, 2002).
The growing disposable income among many populations from developed and developing countries is having an effect of reducing price elasticity for many holiday makers, as upmarket winter sports holidays, cruises, special interest and long-haul travel continue to attract a greater proportion of travellers (UNWTO, 2017).
1.2.2 The Ability to Travel
Beyond price, there are other reasons why specific tourism products (for example airline service or certain types of holidays or resorts) are chosen, as opposed to others. The demand for tourism is dependent on whether the potential traveller has the ability to travel (i.e. travel facilitators) or the desire to travel (i.e. travel motivators) . Leisure time and disposable income are two of the most important travel facilitators in tourism. They are called facilitators because they are factors that may actually facilitate or enable individuals to travel. There are other factors that may also affect the persons ability to travel. Alternatively, these may limit the ability to travel. These factors include:
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