Travel & Tourism - Industry Overview
Summary
TLDRThe travel and tourism industry is a significant global service sector, contributing to the economy through revenue, foreign exchange earnings, and employment. It has evolved from basic travel to a complex industry, driven by human desires for new experiences. The industry encompasses travel agents, tour operators, lodging, catering, transport providers, and tourist attractions. It impacts countries socially, culturally, economically, and environmentally. Challenges include currency fluctuations, seasonality, inflation, and heavy taxation, affecting both the industry and travelers.
Takeaways
- 🌐 Travel and tourism is a significant global service sector, contributing to the economy through revenue, foreign exchange earnings, and employment opportunities.
- 🏞️ The industry has evolved with improved service standards, driven by human desires for new experiences, adventure, education, and entertainment.
- 🗺️ The term 'travel' originates from 'travail', implying movement, while 'tourism' suggests a circular journey, returning to the starting point.
- 📈 There has been a notable uptrend in tourism, with 940 million international tourist arrivals reported in 2010, showing a 6.6% growth compared to 2009.
- 🏰 France and the United States are leading destinations for international travelers, while China's economic growth has made it the third most visited country.
- 🔑 The travel and tourism industry comprises six key areas: travel agents, tour operators, lodging and catering, transport providers, information and guidance providers, and tourist attractions.
- 🏢 Accommodation providers market their services individually or through tour operators, ensuring occupancy rates and catering to various customer needs.
- ✈️ Transport providers play a crucial role, with tourists choosing modes of transport based on budget, destination, time, and convenience.
- 🌳 Tourist attractions are essential for drawing visitors, with countries investing in heritage preservation and infrastructure to enhance appeal.
- 💹 The industry impacts countries through social and cultural changes, economic growth, and environmental effects, with both positive and negative aspects to consider.
Q & A
What is the origin of the term 'travel' and how has it evolved?
-The term 'travel' originates from the Old French word 'travail', which meant heavy labor. It refers to the movement of people or objects between various geographical locations. Over time, it has evolved to represent the act of moving from one place to another for various purposes.
How is the word 'tourism' etymologically derived and what does it signify?
-The word 'tourism' is etymologically derived from the Latin 'terra' and the Greek 'ternos', meaning a lathe or circle, and the movement around a central point or axis. It signifies a round trip, a journey that starts and returns to the original point, hence the term 'tourist' for one who takes such a journey.
What are the main purposes of travel and tourism as mentioned in the script?
-Travel and tourism serve various purposes including recreation, leisure, business, adventure, education, and entertainment.
How has the travel and tourism industry grown over the last few decades?
-The industry has seen an uptrend with a wide range of budgets and tastes being catered to by a variety of resorts and hotels. According to the World Tourism Organization, there were 940 million international tourist arrivals in 2010, marking a 6.6% growth compared to 2009.
Which countries are the most visited according to the script?
-France and the United States are the most visited countries in terms of the number of international travelers, while China became the third most visited country in 2010.
What are the six key areas that the components of travel and tourism can be divided into?
-The six key areas include travel agents, tour operators, lodging and catering, transport providers, information and guiding the tourist, and tourist attractions.
What role do travel agents play in the tourism industry?
-Travel agents provide information on various travel destinations, advise on holiday packages, and chart travel plans. They also sell travel-associated products like currency exchange, car rentals, and insurance.
How do tour operators contribute to the travel and tourism industry?
-Tour operators offer holiday packages that include travel, accommodation, and travel services. They may operate as wholesalers through retail travel agencies or as direct sellers to the public.
What are the social and cultural impacts of the tourism industry?
-The social and cultural impacts include social changes, improvements in infrastructure, lifestyle changes, and the creation of a cosmopolitan culture. However, it can also lead to overcrowding, loss of native customs, and increased crime rates.
How does the tourism industry affect the economy of a country?
-The tourism industry contributes to economic growth through industrialization, education, advanced technology, and better advertising. It also benefits local economies by bringing in money, stimulating new businesses, and promoting a positive image of the area.
What are the positive and negative environmental impacts of tourism?
-Positive impacts include beautification of surroundings, preservation of heritage structures, and improvements in facilities. Negative impacts can involve damage to natural flora and fauna, depletion of natural resources, waste disposal problems, and ecological imbalance.
What are some challenges faced by the tourism industry?
-Challenges include fluctuations in currency exchange rates, seasonality, inflation, and heavy taxation across different segments of the industry.
Outlines
🌍 Overview of Travel and Tourism Industry
The travel and tourism industry is a significant service sector globally, contributing to the economy through revenue, foreign exchange earnings, and employment opportunities. It has evolved with improved service standards, driven by human desires for new experiences, adventure, education, and entertainment. The term 'travel' originates from the Old French 'travail', referring to the movement of people or objects between geographical locations. 'Tourism' involves travel for leisure, recreation, or business purposes and has seen an uptrend over recent decades. The World Tourism Organization reported 940 million international tourist arrivals in 2010, with France and the United States being the most visited countries. China became the third most visited country in 2010 due to its economic growth. The industry can be divided into six key areas: travel agents, tour operators, lodging and catering, transport providers, information and guiding, and tourist attractions.
🏨 Components and Impacts of Travel and Tourism
The travel and tourism industry comprises various components including travel agents, tour operators, lodging and catering services, transport providers, information and guidance services, and tourist attractions. These elements cater to tourists' needs for travel, accommodation, and experiences. The industry has seen significant growth, with a wide range of budgets and tastes being catered to by various resorts and hotels. The terms 'tourism' and 'travel' are often used interchangeably, but 'travel' implies a more purposeful journey, such as business travel or specific projects. Tourists are classified into business and leisure tourists, with the latter group growing due to changes in lifestyle and increased leisure needs. The industry impacts countries through social and cultural changes, economic development, and environmental effects. Positive impacts include infrastructure improvements, cultural exchange, and job creation, while negative impacts can involve overcrowding, cultural disruption, and environmental degradation.
💹 Economic and Environmental Impacts of Tourism
The tourism industry contributes to economic growth through industrialization, education, technology, and marketing, leading to increased income and disposable income. It benefits local and regional economies by bringing money into urban and rural areas, stimulating business, and enhancing the area's image. The industry also impacts the environment, with positive aspects such as beautification efforts and preservation of heritage structures, and negative aspects like overdevelopment, displacement of local people, depletion of natural resources, and pollution. Challenges faced by the industry include currency exchange rate fluctuations, seasonality affecting income flow, inflation leading to price increases, and heavy taxation across various segments of the industry. These factors can influence the overall performance and growth of the tourism sector.
Mindmap
Keywords
💡Travel
💡Tourism
💡Tour Operators
💡Lodging and Catering
💡Transport Providers
💡Tourist Attractions
💡Economic Impact
💡Environmental Impact
💡Business Tourists
💡Leisure Tourists
Highlights
Travel and tourism is one of the largest service sectors globally.
It contributes to the economy, earns foreign exchange, and creates employment opportunities.
The industry has improved service standards driven by human desires for new experiences.
The term 'travel' originates from the Old French 'travail', meaning heavy labor.
Travel refers to the movement of people or objects between geographical locations.
The word 'tour' is derived from Latin and Greek words for a circular movement.
Tourism is travel for recreational, leisure, or business purposes.
There has been an uptrend in tourism over the last few decades.
In 2010, there were 940 million international tourist arrivals, a 6.6% growth from 2009.
France and the United States are the most visited countries by international travelers.
China became the third most visited country in 2010, overtaking Spain.
The travel and tourism industry can be divided into six key areas.
Travel agents provide information on travel destinations and holiday packages.
Tour operators offer holiday packages including travel, accommodation, and services.
Lodging and catering providers offer accommodation and food services.
Transport providers are essential for the travel industry, including airlines and car rentals.
Information and guiding services include insurance, communication, and banking services.
Tourist attractions are a key component, including theme parks, museums, and heritage buildings.
Tourism impacts a country through social, cultural, economic, and environmental aspects.
The industry can lead to social changes, infrastructure improvements, and lifestyle changes.
Economically, tourism contributes to industrialization, education, and technology advancement.
Environmental impacts can be both positive, such as beautification efforts, and negative, such as resource depletion.
The tourism industry faces challenges like currency exchange rate fluctuations and seasonality.
The industry is also heavily taxed, which can impact its growth.
Transcripts
travel and tourism is one of the largest
service sector globally in terms of its
contribution to the economy
it contributes to the gross revenue
earns foreign exchange and creates huge
employment opportunities
over a period of time travel and tourism
has created a niche in the service
industry with improved service standards
and motivated by the human urge for new
experience adventure education and
entertainment
technofunk presents an overview of
travel and tourism industry for the
benefit of its members
what is the meaning of travel and how it
converted into a full-time industry
the term travel originates from the old
french were travail which meant heavy
labor
travel refers to the movement of people
or objects such as airplanes boats
trains and other conveyances between
various distant geographical locations
another etymologically for the word
terror as suggested by theobled in 1994
is that it is derived from the latin
ternary in the greek ternos meaning a
lathe or circle and the movement around
a central point or axis
this meaning changed in modern english
to represent one's turn and they suggest
the action of movement around a circle
argument is that a circle represents a
starting point which ultimately returns
back to its beginning
therefore like a circle a tour
represents a journey in that it is a
round trip that is the act of leaving
and then returning to the original
starting point
and therefore one who takes such a
journey can be called a tourist tourism
is travel for recreational leisure or
business purposes
there has been an uptrend in tourism
over the last few decades
people have a wide range of budgets and
tastes and a wide variety of resorts and
hotels have a developed cater for them
as per the reports of the world tourism
organization in 2010 there were 940
million international tourist arrivals
with a growth of 6.6 as compared to the
year 2009
as per their reports france and the
united states are the most visited
countries in terms of the number of
international travelers
economic growth in china triggered
tourist influence in 2010
china overtook spain to become the third
most visited country
the components of travel and tourism can
be broadly divided into six key areas
we will discuss each of these areas in
this slide and this will help you
understand the players in this industry
first is travel agent a travel agent
provides information to the people on
various travel destinations advises them
of available holiday packages to suit
their tastes and budget and chart their
travel plan
he would generally sell the travel
associated products like currency
exchange car rentals insurance etc
second archer operators tour operators
offer holiday packages which comprise of
one dot travel like by rail road or air
two
accommodation like hotels resorts
apartments guest houses three
travel services like airport pick and
drop sightseeing excursions etc these
tour operators may be the wholesale
operators who operate tours only through
retail travel agencies or they may be
direct sell operators who market their
products directly to the public
third component is lodging and catering
this components consists of those who
provide accommodation to the people in
the form of hotels resorts apartments
camps guest houses etc the accommodation
may be marketed individually or through
the tour operators in the form of
package
direct marketing may require huge costs
on advertisement and selling through a
tour operator guarantees the occupancy
rate throughout a holiday season these
service providers also take care of the
catering needs of the people be
providing them huge cafeterias various
fast food outlets in house are in the
form of a galleria
travel industry cannot exist without
availability of various kinds of
transport transport providers are those
operating any major form of transport
they could be airlines cruise lines car
rentals and rail companies
a tourist's choice of transport would
depend on the travel budget destination
time purpose of the tour and convenience
to the point of destination
fifth important component is information
and guiding the tourist information and
guidance providers include a number of
service providers such as those offering
insurance recreational communication and
banking services government agencies
tour guides industry associations
packaging agents ticketing agents and
holiday sellers
and last but the most important of all
are the tourist attractions the
principle of attraction is to establish
the need for the attraction in a
particular location to invite more
football
it may be a huge theme park a museum a
gallery a heritage building an
educational center etc many countries
see the need to have one or more visitor
attraction in the area to widen their
appeal and attract huge potential
tourists
wealthy people have always traveled to
distant parts of the world to see great
buildings works of art learn new
languages
experience new cultures and to taste
different cuisines
there has been an uptrend in tourism
over the last few decades and now
national or international travel for
short breaks is very common
tourists have a wide range of budgets
and tastes and a wide variety of resorts
and hotels have been developed to cater
for them
the terms tourism and travel are
generally used interchangeably
however travel has a similar definition
to tourism but implies a more purposeful
journey
so the travel could be done for leisure
or to accomplish any specific purpose
like i.t professional traveling on site
to mean customer on his project
hence tourists can be classified broadly
into two types
business tourists these people travel to
meet their work related needs like to
attend business conventions meetings
conferences or to meet any purpose which
is incidental to the work requirements
leisure tourists these people travel for
pleasure
lately the leisure tourism has emerged
strongly owing to changes in lifestyle
consumption pattern of people growing
leisure needs to distress and rejuvenate
leisure travel may be done for holidays
sports education projects school trips
family outings weekend gateways etc
travel and tourism has become a
full-grown industry over a period of
time
let's understand how it impacts all of
us
how does tourism industry impact a
country
the impact of tourism industry can be
classified into the social and cultural
impact economic impact and environmental
impact
social and cultural impacts signifies
the impact which it creates in terms of
social changes in the lives of local
people improvements in infrastructure
lifestyle changes etc economic impact
can be quantified in terms of monetary
benefits and overall economic
development of the society
environmental impact refers to the
impact on the nature and surrounding
areas
juries may have different effects on the
social and cultural aspects of life in a
particular region depending on the
strengths of the region
the effect can be positive or negative
positive impact to boost tourism huge
money is invested to preserve the local
heritage to improve infrastructure to
provide better local facilities which in
turn creates better education better
leisure facilities organizing frequent
social events and thus a better
lifestyle for the local people
best interact with the tourists mix with
people from diverse backgrounds which
creates a cosmopolitan culture in the
region
due to the demand for better services
varied employment opportunities are
created within the region and therefore
people do not feel the need to migrate
to other cities to earn their living
negative impact due to the heavy traffic
in the region the infrastructure may not
be able to cope with the increased rush
thus leading to overcrowding poor
sanitation which may further lead to
diseases bought to the tourists as well
as local people
the intrusion of outsiders in the area
may disturb the local culture and create
unrest among the people
the local people may copy the lifestyles
of tourists through the demonstration
effect and the result could be loss of
native customs and traditions
some people may enter into criminal
activities to fetch easy money from
tourists which leads to increased crime
and anti-social activities and loss of
moral and religious values
tourism industry has contributes to the
economic growth of a country through
factors like industrialization
education advanced technology higher
number of qualified professionals
opening up a foreign markets liberal
trade policies and better advertising
and strategic marketing
the above factors collectively boost the
economic reserves of the region thus
leading to rise in income and better
disposable income
tourism can also benefit economies at
regional and local levels as money comes
into urban and rural areas which in turn
stimulates new business enterprises
greater markets and promotes a more
positive image of the area
the income generated helps the national
balance of payments earning revenue
through direct taxation as well as from
indirect taxes on goods and services
purchased by the tourists
environment is surrounding atmosphere or
condition for existence
the impact of tourism environment is
both positive and negative
positive impact in order to attract more
tourism special emphasis is given on
overall beautification of the
surroundings regular planting of trees
and landscaping are done to enhance
aesthetics
huge investment is done to improve the
facilities in the area like sit areas
shades proper sanitation drinking water
etc more emphasis is given to preserve
the monuments heritage structures to
attract more tourists
negative impact any kind of a
development requires some interference
within nature
over development comes at the cost of
nature
there may be damage to the natural flora
and fauna
local people are displaced for want of
coastal area development
with more people in the area more
natural resources are required which
leads to depletion of natural resources
waste disposal problems crop up and
without proper measures to handle this
problem it may worsen the situation
due to more footfall more transport more
noise improper waste disposal pollution
increases in the area and disturbs the
ecological balance of the region
one of the major challenge that tourism
industry faces is the fluctuations in
currency exchange rates
the inability to know the value of a
currency means that long-range tourism
prices are especially hard to predict
and the fallout from this monetary
instability is already impacting
multiple chorizo support systems
tourism industry is seasonal in nature
and does not guarantee round-the-air
flow of income which hampers the overall
business setup
inflation is rising at an alarming and
restaurants have had to raise prices or
lower their service
transportation companies have been hard
hit
the airline industry is especially
vulnerable
airlines depend on both the food
industry and the fuel industry
already on the margin airlines can do
nothing more than cut services and raise
prices
the result of such a situation keeps the
leisure travelers stay away from
expensive vacations which further hits
the overall tourism sector
tourism industry is a heavily taxed
sector in some countries
various taxes are levied across the
entire industry right from tour
operators transporters
airline industry to hotels and these
include service tax luxury tax
tax on transportation
tax on aviation fuel and various taxes
on transportation
in addition these tax rates tend to vary
across different states in the country
all these taxes are finally passed on to
the travelers in one or the other way
thus hampering its growth
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