Travel & Tourism - Industry Overview

Summary

The 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

00:00

🌍 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.

05:03

🏨 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.

10:03

💹 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.

Keywords

💡Travel

Travel refers to the movement of people or objects between distant locations using various modes of transportation like planes, trains, and boats. It originates from the Old French word 'travail,' meaning heavy labor, symbolizing the effort involved in moving from one place to another. In the context of the video, travel has evolved into a full-time industry, driven by the human desire for new experiences and adventure.

💡Tourism

Tourism is the act of traveling for recreational, leisure, or business purposes. It is closely related to the concept of travel but generally implies a more structured and purpose-driven experience. The video highlights how tourism has grown over time, contributing to economic development and creating employment opportunities in various sectors.

💡Tour Operators

Tour operators are businesses that create and offer holiday packages, including transportation, accommodation, and travel services like airport transfers and sightseeing. These operators can either sell through travel agencies or directly to customers. The video emphasizes their role in packaging travel experiences, making them essential players in the tourism industry.

💡Lodging and Catering

Lodging and catering refer to the services that provide accommodation (hotels, resorts, guest houses) and food services to tourists. These are crucial components of the tourism industry, as they directly affect the overall experience of travelers. The video describes how these services can be marketed individually or as part of a package.

💡Transport Providers

Transport providers include airlines, cruise lines, car rental services, and rail companies that enable the movement of tourists from one location to another. The choice of transport depends on factors like budget, destination, and convenience. The video highlights how crucial these services are for the existence of the travel industry.

💡Tourist Attractions

Tourist attractions are places or experiences that draw visitors to a specific location, such as theme parks, museums, and heritage sites. The video mentions that creating attractions in key locations helps to increase tourist footfall, which in turn boosts local economies and generates interest in a region.

💡Economic Impact

The economic impact of tourism refers to how the industry contributes to a nation's economy by generating revenue, creating jobs, and stimulating new business enterprises. The video discusses how tourism boosts national income, stimulates regional development, and positively affects foreign exchange reserves.

💡Environmental Impact

Environmental impact refers to the effect of tourism on the natural surroundings of a destination. The video explains that while tourism can lead to positive outcomes like the beautification of areas and preservation of heritage sites, it can also cause negative effects such as pollution, depletion of natural resources, and damage to local ecosystems.

💡Business Tourists

Business tourists are individuals who travel for work-related purposes, such as attending meetings, conferences, or conventions. The video classifies tourists into two categories: business and leisure, noting that business tourists often have specific goals and needs compared to those traveling for pleasure.

💡Leisure Tourists

Leisure tourists are people who travel for pleasure, relaxation, or recreational activities. The video points out that leisure tourism has grown significantly due to changes in lifestyle and a desire for people to de-stress and rejuvenate, making it a major driver of the tourism industry.

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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