TRANSPORTATION SECTOR

Transportation and Travel Evolution

Transportation and travel have undergone many changes. A review of the history of
transportation and travel shows that their evolution took seven areas. These are the pre-industrial
travel system era, the early-industrial travel system era, the mature-railway system era, the
express-travel era, the automobile-based travel system era, the modern tourist-system travel era,
and the post-adjustment era.

Pre-industrial Travel System Era

This was the period before the widespread industrialization in Europe and North
America. It was before the development of railways in two continents. There were few common
carriers. There were almost no regularly scheduled transportation services. There was little
travel. Travelers made their own arrangements with several suppliers. It was the era of the
stagecoach and the wayside inn. Only few people had the money and the reason to travel.

Early-Industrial Travel System Era

During the eras, road improvements such as railways, canals, and steamship services
were brought about due to rapid industrialization and advances in transportation technology.
Common carriers came into existence and began to offer regularly scheduled transportation
services. Travel increased because more people who had money traveled.

Mature-Railway System Era

This era was characterized by railways which expanded their operations by running
hotels and providing other travel-related services. The railways began to market their services
more aggressively. Travel agencies and tour companies were formed. Thomas Cook, an
innovator in this field during this era, began his company’s activities in the United Kingdom in
1840. More people traveled in this era than in the previous one.

During this era, expresses increase. Trains and other forms of transportation did not stop
at every station or terminal but only at the major ones. This increased the speed of travel and
encouraged more travel than before.

Automobile-Based Travel System Era

This influence of the privately owned automobile was enhanced in North America and
Europe from the 1920’s onward. Car ownership boomed in North America Motorways, interstate
highways, and other trunk highways were developed in the latter half of this era which was from
1920 to 1974. The automobile was predominant over other travel modes from 1920-1945.

Modern-Tourism Travel System Era

The period from 1945 to 1974 is known as the modern-tourism travel system era. Car
ownership continued to grow at a fast rate, mainly at the expense of a long-distance rail travel.
Mass air travel was another post-World War II occurrence. The introduction of wide-bodied jets
in 1970 greatly increased travel. The mass “tourism” philosophy and marketing approaches were
prevalent during the 1950’s and 1960’s.

Post-Mobility Adjustment Era

This are began in 1973 to 1974 as a result of the foil embargo generated by the
Organization of Petroleum Exporting (OPEC) and the resulting increase in fuel prices. The vents
of the energy crisis basically changed the travel pattern throughout the world. The present era is
done in which travelers continue to look to alternative, group-oriented modes of transportation.

Historical Development of the Transport System

The desire to travel is too stimulated with the improvement in transportation. Before
World War I, it took seven days for travelers to go from coast to coast by steam locomotive. By
1950, by travelers could complete the journey in two and a half days by train. In 1938, an
airplane with the speed of 400 miles an hour made possible nonstop coast to coast flights of less
than eight hours. 1950, travel time from coast to coast was lessened to four hours. At present, the
Concorde can make a flight in two and a half hours. Table 2 shows the historical development of
the transport system.

Table 2. Historical Development of the Transport System

Year Mode of Transport Speed

(miles per hour)

6000 BC caramel caravan 8

1600 BC chariot 20

AD 1784 First English Mail Coach 10

1825 first steam locomotive 13

1890 improved steam locomotive 100

1931 land speed record

 (bluebird: Sir Malcolm Campbell) 350

1938 Land Speed Record

(Napier-Railton car: John Cobb)

1938 Piston Aircraft 400

1952 United States Liner from New York to 41

Le Harve

Jet fighter aircraft

1958 1,300
Boeing 707 and DC-8 orbiting
1958 600
Rocket plane
1961 17,560
Fighter Bomber (Mirage)
1970 4,534
Commercial aircraft: Concorde
1970 1,320
Boeing 747
1970 626

The development in transportation has made the world a smaller place. It is now possible
to take to two weeks of vacation in distant places like Europe, the United States, the Caribbean,
Mexico, and South America. Now, travelers can go to buy any place in the world due to efficient
means of transportation.

Selection of Transportation Mode

There are many reasons why people select one transportation mode over another for their
business and pleasure trips. The most reasons are cost, travelling time, safety, convenience,
comfort and availability, frequency of trips, ground services, terminal facilities and locations,
status and prestige, and departure and arrival times. People belonging to different travel segments
have different value perceptions. For example, the time spent in travelling as well as departure
and
arrival times are very important to the business traveler while the cost of the trip is the traveler’s
primary consideration.

Jagdish Sheth developed a theory identifying transportation variables and the value of
travelers developed a theory identifying transportation variables and the value of travelers. He
found out that the travelers choose a travel mode based on how they physically weigh the five
factors, namely: functional, aesthetic/emotional, social/organizational, situational, and curiosity.
The functional utility of a mode is expected performance for a specific purpose. Examples are
departure and arrival times, safety record, the directness of the trip, and the number of stops or
transfers. Aesthetic/emotional is related to such aspects as fear, social concerns, style, luxury,
comfort, and other personal feelings that the form of transportation might evoke.
Social/organizational shows that the frequent user of certain kinds transportation are stereotyped
according to sex, racial origin, income, price/cost, and education. For example, those who take
bus trips are usually perceived to be female, either young r old, while those who take tours and
cruises are generally retired people. Situational refers how conveniently located the particular
mode of transportation and its terminal facilities are for the traveler. Curiosity utility refers to the
traveler’s perceived needs to do something new and different. Flying transatlantic on Concorde
may have a high curiosity for many business travelers.

Travel by Train

Trains stimulated travel within the United States, Canada, and Europe in the 19th and
early 20th centuries. Britain had its first organized train tour in 1842 when Thomas Cook
organized an excursion between Leicester and Loughborough. In 1851, three million Englishmen
boarded the train to see the Great Exhibition in London; the train was instrumental in stimulating
the development of many seaside resorts in Britain.

The first transcontinental route in the United States was completed in 1869. With the
advent of the steam locomotive in 1825 until after World War II, travel by train became the
primary means of movement within the United States. During the latter part of the 1800s and the
first part of the 1900’s, the train connected major population centers and popular spas and resorts
such as the Niagara Falls, Long Beach, Saratoga, New Jersey, and Las Vegas. This dependence
on the train is shown in the development of Las Vegas where large hotels were located
downtown, a short distance from the railroad station. This gave tourists who arrived by train
quick and easy access to hotels and casino.

In 1863, long-distance rail travel boosted when George M. Pullman built the Pullman
coach, a luxury first-class sleeping and dining facility. In 1868, the diner car was introduced on
the Chicago and Alton Line. Ten years later, an elaborate meal could be obtained in all trains.

The popularity of the train lasted only for a brief period after World War II when the
automobile began to gain more popularity as a passenger transportation mode. US railroads
carried 77% of the nation’s passenger traffic. By 1950, with the rapid growth of private
automobile ownership and usage, passenger traffic decline to 46%. In an effort to save railroad
industry, the Rail Passenger Service Act became a law in October 1970. The act created the
National Railroad Passenger Corporation, now commonly known as Amtrak, which began its
operation in May 1971 and was intended to be profit-making Corporation. Canada’s equivalent
in Amtrak is VIA Rail Canada, which was created in 1977.

Both Amtrak and VIA have the National responsibility of providing intercity passenger rail
transportation. Since their establishment, both organizations have been successful in increasing
passenger volumes. They have done so by improving the equipment and services they offer and
by the benefits of traveling by train more effectively.

Several attempts have been made to determine why travelers select the train as a
transportation mode. Four evident factors are: cost/price, comfort, safety, and the ability to see
the area where the train is passing. VIA Rail’s onboard surveys of business travelers have
identifies user cost, convenience, travel time, and comfort as primary importance.

A survey of Amtrak passengers showed that travelers favored the train for the following
reasons:

1. Safety;
2. Ability to look out of the train and see the interesting things in route;
3. Ability to get up and walk around;
4. Arriving at the destination rested and relax; and
5. Personal comfort.

The negative factors of rail travelers are slowness in reaching the destination, inflexible
departure times, and lack of quality in food services. Promotions by Amtrak and VIA Rail have
emphasized the rest and relaxation benefits of taking the train. They have also pointed out the
downtown-to-downtown routing of trains saves the time of the passengers.

Train travel has continued in Europe and Asia more than in the United States, particularly for
long-distance travel. The Euro City network, formerly the Trans Europe Express (TEE) network,
as well as other national lines provided excellent rail services between major cities in 10
countries. The system is being improved. In 1987, the TEE had been replaced by a new system
which includes high-speed trains, with both first and second-class accommodations. Travel
within Europe would be further improved with the development and construction of the
Eurotunnel between England and the continent. The tunnel would create the single biggest
unified rail network in the world and reduce travel time between England and other European
countries by two hours. Europeans believed that the train was a more efficient form of
transportation from city center to city center on trips up to 300 miles. Like Amtrak, most of the
better railroads of the world were subsidized by the government.

Although the importance of rail travel was reduced due to the popularity of the automobile
and airplane in many countries, railroads had been working hard to improve their facilities to
accommodate super trains with speeds between 150-250 miles per hour. The first sensational rail
accomplishment after World War II was Japan’s shinkansen or bullet trains which travel at
speeds greater than 140 miles per hour. The bullet trains run north and south and link major
metropolitan areas. These began operation in 1964 in time for the Olympics in Japan. They make
the run o 550 miles in three hours and 10minutes from the former time of 18hours. The provided
a ride so smooth that a passenger can leave a cup of tea or coffee on a windowsill and not a drop
will spill. A computerized control center feeds information to a lighted board that shows the
location of every
train and the conditions of the track, switches, and wires. Station stops are as short as two
minutes intermediate stations, so travelers must be ready to move fast. The computer
automatically stops the train in case of trouble, especially during earthquake. At present, Japan
has the best railroad system in the world, with 26,000 fast and efficient trains scheduled a day.
Japan has plans for trains which travel at speeds of 300 miles per hour. The Japanese rail system
is heavily subsidized by the government.

France has its own super train, the Tres Grande Vitesse which travels at a speed of 175miles
per hour between Paris and Lyons and Marseilles.

In Russia, the Trans-Siberian Railroad, the longest in the world (5,787 miles) links outlying
Siberian industrial regions and mining centers with European Russia. Railroads are important to
the Russian economy. The Germans have a test crack designed to carry passengers at a speed of
130 to 240 miles.

Tres Grande Vitesse

The popularity of the train system in Europe has increased, not only because of it’s
quality and efficiency, but because of the use of the Eurailpass. In 1939, a numver of European
countries introduced the spowhich allowed a traveler to use it for two months of unlimited
second- class travel on any of the rail systems of the European countries. , it included unlimited
first-class service over different periods varying from 15days, 21days, one month, and three
moths with access to many ferries and steamer routes. They also introduce the student Eurailpass
for a second- class travel. It is less expensive than the Eurailpass and is good only in 16
countries.

Travel by Ship

Travel by ship preceded travel by train but it was not until the middle of the 19 th century
that travel by ocean liners began to become prominent. Ocean liners were used to provide
important link to passengers among continents. At present, water transport has two major roles in
travel and tourism-ferrying and cruising.

The steamship era began in 1840 when Sir Samuel Cunard pioneered the first
transatlantic- scheduled liner tips. However, the introduction of the jet aircraft led to the rapid
decline in the ships as scheduled passenger transportation mode. In the late 1990’s, the era of
travel by ships expired. Cruise ships took the place of regularly scheduled passenger ships. Many
passenger ships were converted into cruise ships. Those that were too old or too large were
junked and scratched. Others that had historical value were converted into tourist attractions. For
example, the Queen Mary which ins permanently docked in Long Beach became a tourist
attraction and a hotel.

Cruises are more of a vacation experience that a transportation mode. The romance of
cruising had been strongly promoted and was very much by the popular television program,
Love
Boat. Cruises are divided into three types depending cruises last one to four weeks, and long
cruises go around the world and take one to three months.

Cruise Ship

Short-duration cruises are more popular because they require less vacation time and are
less expensive. Other reasons are travelers can satisfy their desire to experience and convenience
of home. In addition, there is no changing of hotels, airports, and food and beds which may cause
sleeplessness and other problems. Examples of short cruises are the three-night cruises from Los
Angeles to Mexico and cruises on the St. Lawrence River on vessels such as the Canadian
Empress.

Cruise ships may be divided into large vessels which can accommodate 180 or more
passengers and small vessels which carry less than 100 passengers. They are called “mini-
cruises”
or “ultra-yachts.” At present, the trend is toward large vessels. Recently, the typical ship was
built to carry 850 to 1,250 passengers but now, the average capacity of the new ship is 2,000
passengers. The large cruise ships offer a wide array of services and amenities to guests, most of
which are packed into the cruise. Accommodations on board vary from rooms for three to four
persons to lavish staterooms. The rooms are air conditioned and have private baths.

A cruise ship is both a floating hotel and resort because the guests are housed, fed, and
entertained. Food is offered throughout the day from seven-course meals to themed-event
dinners. Cruise ships also provide almost continuous entertainment which includes charm
classes, language lessons, dance classes, bridge, table tennis, aerobics, jogging, and shuffleboard.
Many ships now have fully-equipped gyms, health spas, and athletic counselor. Cruise directors
plan activities and entertainment for the passengers which may be full-scale musical productions,
live entertainment with well-known performers, discos, bingo, gambling courses in self
improvement, and the like. For many passengers, the numerous opportunities to socialize on a
cruise vacation, one of its major attractions. Passengers who prefer a less socialize on a cruise
vacation can relax by the pool or on a deck and enjoy the warm climate and enjoy the warm
climate and beautiful sunsets. Cruise enthusiasts prefer this type of vacation because it combines
fresh air, plenty good food, a variety of activities, and visits to exotic place.

Cruises are promoted and sold on the basis of health, recreation, and pleasure. Theme
cruises are popular such as culinary cruises, historic voyages to less-known places, stock-market
seminars, movie festivals, music festivals, as well as cruises devoted to art, golf, astrology,
tennis, photography, and beauty counseling.

The United States dominates the international cruise market by supplying more than 70%
of total passengers followed by Europe with 17%. Estimates of the total dollar income of the
cruise industry are difficult to obtain because income is earned from various source including the
scale of births, gambling, bars, shops, and miscellaneous services. Cruise lines have also
lucrative market in the United Kingdom, West Germany, and Australia. In Europe, Russian sails
from ports in Italy, the United Kingdom and Holland. They offer lower rates and good services.
 The cruise is largely owned by European companies which are located in Denmark,
Norway, Holland, Italy, Germany, Great Britain, and Greece. Although, the cruise ship industry
is not a US industry in terms of ownership, several United States and American territory cities
serve as a major port of cruise ships. The top ports are Miami, New York, San Juan, Port
Everglades, Los Angeles, San Francisco, Seattle, and New Orleans.

The Caribbean is the world’s largest cruise destination. Cruise passenger destinations
within the Caribbean comprise 50% of total visitor arrivals. Other major cruises destinations
include the Mediterranean, Scandinavia, Alaska, and the Pacific Cruises are announced several
months before the departure and are also sold mostly by travel agents as packages. The fly cruise
package has grown in popularity because it combines the speed and efficiency of jet travel with
the relaxing, romantic attribute of cruise ships. One significant marketing strategy used by the
cruise industry is to offer heavily discounted or free air flights to the port of embarkation. As an
added convenience for cruise passengers, some cruise line agents greet passengers at the airport
and then transport them to the ship’s pier. In order to attract more families other cruise lines have
begun to provide children’s activities and offer lower rates to a third or fourth passenger in a
cabin. Several cruise lines have also designed cruise packages which cater to the single segment
and those interested in Health and Fitness.

Younger people prefer the three-to-seven-day cruises. Older people take cruises of seven
days or less. The elderly usually join the round-the-world cruise. Cruise passengers tend to be
repeat customers. Once they experience a cruise, they begin planning for the next. Like
destinations resorts, cruise lines have successfully developed their own loyal repeat clientless
with an average age of 30% to 40% of the total passenger volumes.

Another role of the ship travel and tourism is ferrying or the use of ferry boats. These are
the used in English Channel, the Irish Sea, the Hebridean Islands of Scotland, the North Sea, the
Maritime Provinces and British Columbian coast in Canada, and in North America. These cruises
last for one day or even a shorter period of time. Example of these are steamer and river boat
cruises in the Mississippi River and Thousand Islands) New York, Ontario. The Appeals of
Steamer sightseeing cruise and seeing scenic beauty of the area, learning about the history of the
surrounding area, and using it’s dining/bar service.

The demand for cruising is expected to increase. Only a small part of the North American
population has taken a cruise. Market research shows that there are 24 million potential
passengers with sufficient time and money. In addition, satisfaction level is high for cruise
passengers which would result in a high percentage of repeat cruise goers. Foreign markets
should also be seen as big potential markets. Europe, Japan, and Latin America, particularly
Venezuela and Brazil, are good potential markets. Overcapacity is the major problem for the
industry at present. However, the growing incentives-travel cruise market, which now accounts
for approximately 15% of all births, is expected to help overcome the effects of overcapacity.
Travel by Automobile

The real inventor of the automobile was Carl Benz of Mannheim, Germany. In 1885 to
1886, he combined the bicycle and the international combustion engine and designs the complete
vehicle engine consisting of the engine, chassis, and transmission. Then came Henry Ford who,
in 1908, produced his Model T Car built with an assembly technique for mass production. The
price of the Model T car decreased from $825 in 1908 to $260 in 1925. The automobile industry
grew rapidly. However, it was only after World War II that the popularity of the automobile
increased significantly.

The introduction of the automobile brought about the decline of the train’s popularity in
most developed countries. The advent of the automobile spread the benefits of tourism more
widely and enabled people to travel individually or in private smaller groups. The automobile
brought about a more random pattern of travel movements, opened up new destinations, and
hastened the development of elaborate networks of automobile-oriented facilities and services
along highways and roads. Example of new facility types that developed in the United States and
Canada after World War II was the tourist court and the motor hotel or motel.

Traveling by automobile is now the chief travel mode in North America. Many travel
surveys have shown that automobile trips comprise 90% or more of the pleasure/personal and
business trips of Canadians and Americans. Surveys show that the automobile is the most
popular mode of vacation travel because it provides travelers greater freedom in the choice of
route, destination, and timing of the journey in the United States.

The growth of car ownership necessitated road improvements. The United States federal
government participated in the construction and maintenance of roads when it passed an act in
1916, matching state appropriations for new roads dollar to dollar. It was climaxed by the
interstate act in 1949 which allowed travelers to move coast to coast and border to border
without a traffic light or a stop sign. The first turnpike was built in Pennsylvania in 1940. In
1954, the federal government, in order to encourage road construction, increased its share of the
highway construction to 90%. During the 1930s, the Germans constructed their network of
autobahn. These four-lane divided highways were the world’s first high speed roads.

The automobile stimulated tourism by creating attractions along tourist routes made
accessible by the automobile. Examples are homes of historical figures, scenic areas, and historic
shrines and monuments.

Two important aspects of automobile are recreational vehicles and car rentals. These two
areas have developed so extensively in North America and elsewhere that they are now
significant elements of tourism. The recreation vehicle or RV was an extension of the preference
of North America for the automobile. Ownership of recreation vehicles are increased since 1979.
A survey conducted by the research Center if the University of Michigan indicated that
approximately 906,000 Canadian and 6million US households owned one or more recreation
vehicles in 1980.
 Since World War II, camping has become popular in North America and elsewhere. The
United States has more than 14,000 public and private parks and commercial campgrounds
containing approximately one million campsites. The increasing popularity of the recreation
vehicle led to the establishment of the new campgrounds during the 1970’s, including the
franchised condominium and time sharing condominium campground. Many European visitors
to Canada and the United States rented these vehicles for cross-continent trips. Many companies
have been formed to provide this service to overseas pleasure travelers.

Related growth of the automobile has been the growth of the car rental market in 1960s
and 1970s the car rental industry begin in 1918 when in Chicago Ford dealer started to rent
secondhand model Ts. In 1924, the company was brought by John D. Hertz, the founder of the
yellow Cab Company. Avis, the biggest competition of Hertz, was founded in 1946 by a retired
US Air Force officer, Warren E. Avis. Initially Avis specialized in Airport rental locations. In
1984, Avis started downtown rental locations. It was during the same period that National Car
Rental was organized. By the late 1950s, car rental companies were found in all major airports.

The car rental business is a worldwide industry. Four companies dominate the US market
with 85% market share. These are Hertz, Avis, Budget, and National. These four companies also
represent the “Big 4” within the international markets. The big 4 rental firms continue to be
challenged in the US and abroad by companies like Alamo, Dollar, Thrifty, and General.
Another group can rental companies consists of firms that rent used cars at a lower prices.
Examples are a Rent-A-Wreck, Ugly Duckling, and a Rent-a-Dent. The car rental industry over
the past 20 years is highly competitive. Individual companies claim to be the first in various
innovations such as rent-it-here, leave-it-here service. Each company, through its advertising
claims to be the first or the best in providing new service.

The growth if the industry in the late 1960s and early 1970s can be attributed to the
introduction of the fly/drive concept. It encourages travelers not to drive their personal car to
their destination but to travel by plane and rent a car on arrival. The fly/drive concept became
very popular in the Florida market, the birthplace of many new car rental companies. The highest
utilization of rental cars takes place on Mondays to Fridays usually by business travelers which
comprise about 75% of the total business. The demand on weekends comes mainly from pleasure
travelers. A high percentage of car rentals take place at airport terminals. Thus, it is
understandable that the success of this business is closely related to the airline industry.

Some car rental firms added cellular car telephones for business travelers. Another
amenity is giving computerized driving instructions to customers. In order to overcome low
profit or losses, auto rental companies have employed a number of strategies higher prices, flat-
free commission for travel agents, and mileage limitations.
Travel by Bus/Motor Coach

Bus travel is the most flexible and economical transportation. In United States busses
were first used to carry passengers intercity in the early 1990s. There was little intercity travel
before in the early 1920s. In 1928, the Greyhound Company, the largest privately-owned bus
company in the world, was established. By this time, buses traveled from New York to Los
Angeles in about five days. With road improvements before the World War II, cross-country trip
time was reduced to 90hours.

The terms “bus”, “coach”, and “motor coach” are used interchangeable. In North
America and elsewhere, the bus performs two major roles. The first is to provide a regular
schedule of intercity passenger station services. The second is to provide charter and tour
services. Intercity is indirectly competitive with private auto, rail, and air service. Discount
airfares have proven to be a major competition for intercity bus service. Thus, intercity bus
service has declined, while charter and tour service have grown. Bus ridership patterns also
changed to short-haul distance of 250miles or less. Continental trail ways and Greyhound Inc.
are two major intercity companies, with Greyhound accounting for 60% of the market.

The main reasons for selecting bus travel over other modes of travel are convenience and
economy. Few people choose bus for business travel. Bus riders tend to be older and less
income. Bus service is available in practically every town of 1,000 people or more, and a
passenger station or ticket agent for bus service is at hand in each of these communities. Most
people do not choose but travel for long trips. Surveys show that women bus riders outnumbered
men. Recent advertising indicates that bus companies are targeting their marketing programs
toward the family summer vacation market, young couples, older people on summer vacation,
and the retired people.

Charter and tour service is the fastest growing segment of the bus or motor coach
industry. Several tour packages are developed by tour brokers who charter buses and arrange all
the other components of the tour, including the itinerary, lodging, sightseeing, admission, tour
guides, meals, and the like. These packages are usually sold through travel agents.

Motor coach tour usually last five to six days and are limited to a particular geographical
area. The two principal marketers for charter and tour services are school age children and senior
citizens. Other markets include international visitors. Gambling tours by motor coach to the
casino of Las Vegas, Reno, and Atlantic City are very popular.

The increasing demand for motor coach, coupled with the improvement of buses, could
result in the future expansion of the bus charter and tour segment of tourism. The present
coaches are wider, have more leg room. More baggage space, lavatories, climate, and noise
controls, better lighting, more sophisticated address system, and panoramic view windows.
Travel by Air

The airplane had a revolutionary impact on tourism from World War II onward. The
history of air transportation can be divided into three parts- Pre-World War II, World War II, and
Post World War II. On December 17, 1903, the Wright Brothers took a flight on a beach in North
Carolina which lasted 12 seconds with a distance of 120 feet. In 1927, the air industry developed
regularly scheduled passenger trip between Boston and New York. Other governments helped
this growth in the 1920s by subsidizing air companies.

In the United States almost all early airlines started by carrying mail for the post office.
One of the first was Varney which began in April 1926 and later became United Airlines.
Western Airlines began its passenger service on April 17, 1926 when it carried a woman
passenger along with the mail. Pan American Airways had the first international flight in 1927 it
carried mail from Key West, Florida to Havana, Cuba.

World War II influenced of the airline industry. It helped further improve airplanes by
accelerating technological research to improve their size and speed by using the knowledge
gained by thousands of servicemen who became familiar with planes and air travel.

The tremendous time-saving aspects of air travel and it cost effectiveness, when
compared to other modes of transportation such as the train, ship, and automobile added the
growth of the airline industry during the post-World War II years. In the late 1950s and early
1960s, commercial jet aircrafts were introduced, increasing the speed of wide-bodies aircrafts
such as the Doughlas DC-10, Boeing 747, the Lockheed Tristar 1011, and the European
Aerobus. These planes further increased passenger comfort as well as seating and freight
capacity.

As the airlines industry grew, the travel industry depended on it more. Cruise lines, rental
car companies, airport hotels, and ground transportation operators depended on the airline
industry to generate the bulk of the business. Executive business travel and international tourism
are dependent on it. The impetus of air travel to people to business is its time-saving advantage;
for the pleasure traveler, it is the affordable price that has the greatest impact.

The 1980s had witnessed further improvements in aircrafts technology with the
introduction of the CD-9-80 and Boeing 757 and 767 designed for fuel efficient operation
offering approximately 30% lower fuel consumption for passenger than the older modes. The
introduction of the longer range Boeing 747-400 has a range of 8,000 miles and seating capacity
of 418 will change travel patterns. Almost all jet liners were built by Boeing, with headquarters
in Seattle, Washington; McDonell Doughlas in Long Beach, California; Lockheed in Burbank,
California; and the A-300, the Airbus built by a consortium of European countries and assembled
in Toulouse, France. The three American Companies produced about 75% of the world’s
commercial jet planes. Boeing was dominant company in jetliner business with sales between $6
to $7 billion a year.
 The Boeing 747 jumbo jet is a long-haul plane. The tail stands 63 feet and 5 inches tall,
about as high as a five-story building. It weighs 775,000 pounds and cruises at 625 miles per
hour, with some models having a range of 6,210 miles without refueling. It is distinguished by
the hump on the nose that houses the flight crew and an upper lounge for the first-class
passengers. Each 747 costs approximately $90 million, depending on spare parts and extras
ordered. It is safer and gives a smoother ride because its huge size lessens its reaction to air
turbulence. It carries cargo on its belly.

Food service on the large planes is speeded by the use of modules, similar to cargo
modules. These are snapped into places on a lower level in the aircraft. The galley ovens located
near the module storage area. Elevators raise the food to the passenger deck when it is ready.

The factors associated with the recent boom in air travel include the world economy,
rising standard of living, and the quality of air service. Growth in the airlines has at an annual
rate of 5% since 1959. The industrial nations, which account for the majority of air travel, had a
growth of 7% from 1960 to 1970. The standard of living in the world increased by 5% and per
capita income rose to 3%. The per capita constant dollar gross domestic product (GDP) of
industrial countries increased faster than GDP of developing countries. While the economy of the
United States grew at an average rate of 3.3% from 1960 to 1970, the GDP of other major
industrial nations grew at a faster rate. The GDP of Japan rose 10% per year for the past two
decades. In addition, airfares throughout the world decreased to 9% between 1960 to 1970. The
average airfare in constant dollars decreased at an average of 26% a year from 1960 to 1970 and
continues to decrease. Because of these factors, air travel is no longer considered a luxury but a
necessity.

The introduction of charter services further pushed down the prices of airfares. Charter
services are an alternative to regularly schedules services. They offer lower rates for two reasons.
First, they do not have the large personnel investment required an airline with regularly
scheduled flights. Second, by flying with a full load of passengers, the charter companies are
able to fly their planes for less cost passenger. The charter companies are able to fly their planes
for less cost per passenger. The growth of charter flights was impressive. Freddie Laker, a British
entrepreneur, introduces a London-New York route selling it for one-half the normal airfare.
Other countries and airlines followed with economy fares to and from European cities.

Since 1950, incomes have increased rapidly while airfares have declined. This made air
travel more attractive than ever. While the price of an airline decreased the quality of service
with regard to speed, size, and comfort improved.

Airline Regulation

International tourism requires a system of international air transportation. This system

requires negotiations among nations and carriers in the form of bilateral agreements. Over flight
privileges must be obtain from all nations over which an airline will cross during international
flights. Airlines are or may be assessed over night charge for the privilege of flying over other
nations including countries which do not have diplomatic relations with each other like Cuba and
the United States. Lending rights, fuel purchase agreements, maintenance, provisions, and other
considerations require bilateral negotiation.

Governments throughout the world have agreed that a complete free market for
international air travel is not possible. The original idea for a worldwide system of airline
regulation took place in the Chicago Convention of 1944 and the Bermuda Agreement in 1946.

The Chicago convention marked the beginning of continuous dialogue about various
freedoms of the air but was not successful in establishing a multilateral system of commercial
aviation rights. The Bermuda Agreement established the first worldwide model for future
bilateral
agreements regarding the exercise of the eight freedoms of the air:
1. First freedom: the right of an airline to overfly one country to get to another;
2. Second freedom: the right of an airline to land in another country for a technical stopover
(fuel maintenance, etc.) but does not pick up or drop off traffic;
3. Third freedom: the right of an airline, registered in country X, to drop off traffic from
country X to country Y;
4. Fourth freedom: the right of an airline, registered in country X, to carry traffic back to
country X from country Y;
5. Fifth freedom: the right of the airline, registered in country X, to collect traffic in country
Y and fly on to country Z , so long as the flight either originates or terminates in country
X;
6. Sixth freedom: the right of an airline, registered in a country X, to carry traffic to
getaway- a point in country X- and then abroad. The traffic has neither its origin nor
ultimate destination in country X.
7. Seventh Freedom: the right of an airline, registered in country X, to operate entirely
outside of country X in carrying traffic between two other countries; and
8. Eight freedoms: the right of an airline, registered in country X, to carry traffic between
any two points in the same foreign country; also known a cabotage.

Only the first two technical freedoms have been widely accepted. The third, fourth, fifth, and
sixth freedoms are still subject to bilateral bargaining. The seventh and eighth freedoms are
usually allowed only in special circumstances.

The bilateral air agreement concepts which resulted from these meeting means that the airline
services could not be offered between a nation of origin and one of destination unless there was a
specific agreements were established to provide for the orderly development of the international
air transportation industry. The need for bilateral agreements was intensified because small
nations felt that they should have their own national airline or flag A
carrier.
large number of flag carriers
are government owned enterprises. Some are the subsidized by the government because of
national pride, fear of dependency on foreign carriers, as means of supporting economic
development, and
to ensure air freight for export products. Airlines of the United States and other countries are
owned and operated by private enterprises and must operate for a profit.

The use of the bilateral air agreements was not enough to meet the need for cooperation
between international airlines with different profit orientation. After the Chicago Conference,
several scheduled carriers met in Havana and the international Air Transport Association (IATA)
were formed to ensure cooperation among international carriers. IATA is a democratic
organization whose membership is open to any member of the United Nations. It is supported by
dues from 140 active and associate member airlines. It links together with many non IATA
carriers throughout the world in Multinational Interline Traffic Agreement allows passengers to
use a single ticket and travel by several carriers around the world. It also makes the movement of
air freight worldwide easier.

The primary purpose of IATA is to establish a system of international rates and fares.
Through IATA, the airlines enter into agreements concerning rates, conditions of services, and
routes to be given to each airline. The agreements are subjects to the approval of their respective
governments.
 SUMMARY

The evolution of transportation and travel took place in seven groups, namely: the pre-
industrial travel system era, the early-industrial travel system era, the mature-railway system era,
the modern –tourism travel system, and post-mobility adjustment period.

The improvement in transportation encouraged the desire to travel. The developments in

transportation had a very powerful effect on tourism. They have made the world smaller place.
At present, fast and efficient means to transportation can bring travelers to any place in the
world.

The mode of transportation chosen depends on several factors, namely: cost time spent in
traveling, safety convenience, comfort, availability, frequency of trips, ground services, terminal
facilities and location, and status and prestige, and departure and arrival times. According to
Sheth’s theory, travelers choose a travel mode based on their psychological weighing of five
factors. These are the functional, aesthetic/emotional, social/organization, situational, and
curiosity.

Trains encouraged travel within the United States, Canada, and Europe in the 19th and the
early 20th centuries. The reasons why travelers choose trains as a transportation mode are
cost/price , comfort, safety, convenience, ability to get up and walk around, ability to look out
and see interesting things in route, and ability to arrive at the destination rested and relaxed. The
popularity of the rail system is increased due to the use of the Eurailpass.

Travel by ship became prominent in the middle of the 19th century. Just as the automobile
led to the demise of the train, the introduction of jet airplanes precipitated the rapid decline in the
use of ships as a scheduled passenger ships. The fly/cruise concept, introduced in the early 1970s
increase the number of cruise passengers. The modern era travel by water is characterized by the
use of ships, hovercrafts, steamers, and riverboats for cruising and ferrying.

The introduction of the automobile resulted in the decline of the popularity of the train in
several developed countries. The use of automobile has increased in North America, Europe, and
Asia. Car rentals and recreational vehicles are the two important aspects of automobile travel.
The introduction of the fly/drive concept stimulated the growth of the car rental industry.

Bus or motor coach travel is the most economical form of transportation in terms of fuel
costs; but for long distances, it still has the disadvantage of being time-consuming compared to
air transportation. The bus provides intercity passenger transporting services as well as charger
and tour services.

The airplane has taken over as the major international and intercontinental transportation
mode in the post-World War II era. It is also predominated among the common carriers in
domestic transportation in the United States and Canada. It is a very important mode for business
traveler because of its time-saving significant as vacation travel modes, particularly in Europe.
 Key Terms and Concepts

Amtrak Henry Ford

Car rental jumbo jet

Carl Benz mini cruises

Concorde motor coach