AS Travel and Tourism paper 1 revision notes summarised

Topic 1: Features of the industry

The nature of travel and tourism

What is meant by the terms ‘travel’ and ‘tourism’? This includes people travelling away from home,
for business or for leisure, and the industry that supports this.

You need to:

1. Identify the main types of tourism.

o domestic

o inbound

o outbound

2. Describe the main reasons why people travel

o leisure

o business

o visiting friends and relatives

3. Explain the unique characteristics of the travel and tourism industry

o seasonality

o perishability

o intangibility

4. Give relevant, up-to-date examples from the industry and use appropriate language and terms
associated with travel and tourism

5. Demonstrate ability to use a range of information relating to the nature of travel and tourism to
draw conclusions about the industry.

The scale of the travel and tourism industry

You need to analyse statistics, including:

• Consumer spending on travel and tourism

• The number of people employed in the industry

• The number of tourist arrivals in key destinations

• The number of people taking holidays in your country (domestic tourists) and outside your country

(outbound tourists).
You should be able to:

• give relevant examples of the scale of the industry

• use and analyse key information and data relating to the scale of travel and tourism

• draw conclusions about the scale of the industry locally, nationally and internationally

• analyse trends.

The development of the modern travel and tourism industry

To understand the modern travel and tourism industry, you need to recognise and explain recent

major developments. You need to demonstrate understanding of the dynamic nature of travel and
tourism. In particular, you need to understand the main factors that have led to the growth of the
travel and tourism industry, including:

• changing socio-economic factors:

o changes in car ownership

o increase in leisure time

o increase in disposable income

o impact of the national economy

• technological developments:

o developments in transport technology

o developments in ICT

• product development and innovation

• changing consumer needs and expectations

• external factors:

o legislation such as the EU Directive on Package Travel

o the role of local authorities and government in travel and tourism

o fluctuations in currency

o climatic change and natural disasters

o war, civil unrest, terrorism and crime.

You should be able to:

• evaluate developments in travel and tourism, key factors contributing to the growth of the
industry and issues relating the industry.

The structure of the travel and tourism industry

The structure of the travel and tourism industry is complex because it consists of a wide range of
interrelated commercial and non-commercial organisations. Most of these organisations are in the
private sector, and are small or medium sized. You need to know how these organisations work
together to provide the tourist ‘experience’. They also need to show an appreciation of the different
values and attitudes of different organisations.

1. Commercial organisations

Candidates need to understand, and give examples of, the range of private sector organisations

that make up the travel and tourism industry. You need to investigate at least one private sector
organisation to understand how:

o they meet and define their objectives

o they get funding and generate revenue

o they meet stakeholder or shareholder expectations.

2. Non-commercial organisations (including public and voluntary sectors)

You need to understand, and give examples of, the range of non-commercial organisations that

make up the travel and tourism industry. You need to investigate at least one public and one
voluntary sector organisation to understand how:

o they meet and define their objectives

o they get funding and generate revenue

o they meet stakeholder or shareholder expectations.

3. Agencies delivering travel and tourism products and services

You need to investigate at least one tourist destination. You need to understand, explain and

give examples of the major features of the following components:

a) Tourist attractions – built; natural; events as attractions and the facilities which these take place in

b) Accommodation and catering – to include accommodation grading schemes

c) Tourism development and promotion – locally, regionally and nationally

e) Travel agencies

f) Tour operators and the components of a package holiday

You need to understand how these components depend on each other, and that no single

component exists on its own. All have relationships with most of the other features given, e.g. the

development of a new tourist attraction at a destination will affect transport, accommodation and

catering, tour operators (who may want to organise tours to the new attraction) and the local or
regional tourism development and promotion organisations.

You should be able to:

• give relevant examples of the current structure of the industry

• explain key organisations that make up the structure and their products, services, values and
objectives

• analyse information and data relating to the structure of travel and tourism

• make appropriate judgements about the relationships between organisations within the industry.

Topic 2: The management and development of tourist destinations

Destinations are places where there is tourism. Social, cultural, environmental, economic and
political conditions influence tourist destinations. The people who are responsible for destination
management have to try and ensure that tourism development integrates with other social and
economic activities of the particular area so that it can sustain future development.

Objectives of tourism development

You need to understand what is meant by ‘tourism development’ and why it occurs in both the

more economically-developed countries (MEDCs) and less economically-developed countries (LEDCs)

of the world. You need to understand the factors that are likely to affect the popularity and appeal
of destinations, both now and in the future.

Organisations may get involved in tourism development for any of the following reasons:

1) Economic – examples include:

o employment creation, both direct and indirect

o increasing foreign currency earnings to contribute to the balance of payments and GDP

o bringing in tourists who spend money locally and contribute to the multiplier effect
o increasing income for commercial operators

o economic development and regeneration to develop the infrastructure and improve the local area

and conditions for local people

2) Environmental – examples include:

o habitat preservation for wildlife in an area

o regeneration and conservation of the built and natural environment

o environmental education of the local population and/or of tourists visiting the area

o stimulating environmental improvements of benefit to local people and wildlife as well as tourists

3) Socio-cultural – examples include:

o promoting understanding between the cultures of tourists and those of the local population

o improving ‘quality of life’ for the local population

o providing community facilities, as well as facilities for tourists

o revival of traditional activities, festivals and ceremonies to celebrate culture and develop a ‘sense
of pride’ in one’s own identity

4) political – examples include:

o enhancing the image of an area is particularly important for LEDCs or for countries that may be

perceived in a negative way due to war or natural disasters.

o creating a regional or national identity to boost domestic morale and encourage visitor numbers.

You should be able to:

• apply your knowledge and understanding of the objectives of tourism development to a selection
of case studies

• synthesise information from these case studies to demonstrate a deeper understanding of the

connections between different aspects of tourism development.

Impacts of tourism development

Tourism often has considerable impact on destinations and the people who live there. To
understand how tourism development affects a destination, you identify and analyse recent
examples of positive and negative impacts associated with tourism development such as those listed
below.
Type of impact

Positive effects Negative effects

a)Economic • increased incomes

• increased foreign exchange

• increased employment

• improved infrastructure

• multiplier effect

• decline of traditional employment opportunities

• seasonality of employment

• increased living costs

• leakages

• increased taxes

b)Socio-cultural

• preservation of customs and crafts

• provision of community facilities and public services

• aiding of international understanding

• encouraging travel, mobility and social integration

• conflicts with the host community

• crime

• loss of cultural identity

• the Demonstration Effect

• changes to family structure

• social problems, such as begging and prostitution

c)Environmental • improved assets

• landscaping

• conservation
• regeneration

• building regulations

• traffic congestion

• erosion of natural resources

• pollution of air and water

• litter

• increase in noise levels

• panoramic view damage

• destruction of natural wildlife systems and breeding patterns

You should be able to:

• understand the principles of successful destination management including:

o maximising the retention of visitor spending at the destination

o investing tourism income in public and social projects for local communities

o widening access to facilities and assets

o staff training and development

o training and employment of local people in tourism and related activities

o tourism education

• recognise the significance of the values and attitudes of different stakeholders in tourism
development in particular regions

• understand current issues and consumer trends impacting on tourism development

• understand how destination management can minimise tourism’s negative impacts:

o planning control

o using the principles of sustainable tourism

o visitor and traffic management

o assessing environmental impact

• understand how the rapid, unplanned development of tourism in a destination could spoil what
tourists originally travelled to see.
Changes in the evolution of destinations

In 1980 the Canadian geographer R W Butler was the first person to compare the development of
tourist destinations with a product passing through the various stages of the product life cycle.

You should study and apply the Butler model to particular destinations. He suggested that all
destinations follow a cycle of evolution and pass through stages similar to youth, maturity and old
age. The logical conclusion of such a process must be the ultimate decline of a particular destination,
unless it can re-invent itself – a process known as ‘rejuvenation’.

Candidates will analyse reasons why particular destinations are in one of the following stages of the
model:

• exploration

• involvement

• development

• consolidation

• stagnation

• decline or rejuvenation.

Factors that influence evolution of destinations.- Why visitors go to a place.

Key features of destination • weather and climate

• scenery and landscape

• vegetation and wildlife

• historical and cultural attractions

• modern built attractions

• indoor/outdoor activities

• accommodation options

• events and festivals

• food/drink and entertainment

• accessibility and gateways

• singles

• families

• DINKY

• grey market

• special needs

• business tourists

Visitor statistics • recent trend

• projection for future

• stage in evolution – using life cycle model

Factors influencing popularity

• cost of accommodation

• cost of transport

• costs at destination

• tour operator promotional activity

• destination promotional activity

• over-commercialisation

• crime and social problems

• political instability and unrest

• terrorism

• positive/negative media coverage

• positive/negative tourism management

• growth in independent travel

• growth in short breaks

• exclusivity

• increased accessibility
• water/air/noise hazard

• natural disasters

It is important that destinations attempt to manage the positive and negative impacts of tourism
in a sustainable way. There will be a limit on the number of tourists a particular destination can
manage sustainably, which is known as a destination’s carrying capacity.

Topic 3. The principles of customer service

The travel and tourism industry is highly competitive because a large number of organisations
provide very similar products and services. It is often the quality of customer service that
distinguishes one organisation from another. Customers expect the highest standards of customer
service and this is why it is essential for staff to be aware of the part they play in satisfying this
important customer need. Excellent customer service means consistently exceeding expectations of
customers rather than just meeting them. The provision of excellent customer service is everyone’s
responsibility within an organisation and extends to internal as well as external customers.

Needs of external and internal customers

You must identify the internal and external customers of at least one travel and tourism organisation

and then research, analyse and evaluate the different needs of BOTH types of customers. The needs
and expectations of internal and external customers will vary according to the organisation and the
situation. The organisation and its staff should show sensitivity to the range of different needs of
customers, including spiritual and cultural needs. You should understand the importance of
customer service to both external and internal customers.

External customers are an organisation’s visitors or users. They can be classified as:

• individuals

• groups, including different age or cultural groups and special interest groups

• people with children

• foreign visitors, with language and cultural differences

• people with specific needs, e.g. wheelchair users, people with sensory disabilities; visitors with
special

dietary requirements

• members and non-members of travel organisations.

You need to be aware that when customers visit a travel and tourism facility, e.g. a theme park,
the customer service that they experience first-hand at the theme park is just one aspect of the
customer service that organisation provides, as a great deal goes on behind the scenes to ensure
that customers’ experiences are good ones.

Internal customers are members of staff within an organisation or an organisation’s suppliers who
contribute towards the service provided to external customers. Internal customers include:

• colleagues

• management and supervisors

• employees of other organisations, e.g. retail outlets at an airport are internal customers of the
airport.

You should appreciate that local and national organisations need to provide effective customer

service to internal customers in order to establish good working relationships between colleagues,

managers and staff teams. This will result in:

• delivery of high levels of customer service to external customers

• good levels of communication between departments

• smooth operation of the organisation

• a happy and efficient workforce

• employee loyalty.

The delivery of customer service

You should investigate the delivery of customer service in at least one travel and tourism

organisation. You may select any appropriate example, such as a local attraction, airport or hotel.

You must look at three different types of staff within this one organisation, and determine how
they deliver quality service. Quality service is likely to be the result of the following:

• training

• teamwork

• product knowledge

• monitoring and evaluation.

If you chose to investigate different staff roles which have to deliver quality service to visitors within

a hotel, e.g., you could study:

• housekeeping

• concierge

• bar

• restaurant

• conference manager/assistant

• leisure manager/assistant.

You should be able to explain identifiable customer service procedures that are appropriate for a

particular operation. For example, staff duties in a hospitality environment would involve the
‘meeting and greeting’ functions of the face-to-face encounter such as:

• always acknowledge guests upon arrival and departure

• always walk guests at a comfortable pace

• assist the guest as much as possible

• always keep guests fully informed, e.g. about delays

• always smile and show enthusiasm

• never leave the table before everyone has sat down

• never leave the host stand unattended

• never argue with a guest

• always present a positive image of the

organisation and its products

• never chew gum, eat, drink, swear or smoke while working.

You should identify and explain key aspects of good practice for each of the three selected job
roles.

These could include maintaining the cleanliness of the facility, having an excellent telephone
manner and dealing with customer complaints, e.g.:

• bar area – keep clear of empty bottles and glasses

• answer the phone with a cheery, sincere and friendly greeting

• apologise in general terms for any inconvenience and tell the customer that somebody will
investigate the matter fully and put it right.
You should be able to explain and justify three types of customer service procedures which you are

familiar with.

Assessment of the quality of customer service in travel and tourism

Travel and tourism organisations continually monitor and assess the quality of the customer service
they provide in order to remain competitive within the industry. Organisations may have different
values and attitudes to customers and their practices and procedures may reflect this.

You should explain how an organisation sets and assesses the quality standards for customer

service to reflect the values and attitudes of the organisation. Some travel and tourism
organisations use a system called ‘benchmarking’, which involves setting standards of quality, and
then measuring performance against these standards. When using this system, the organisation
must identify the most important aspects of its customer-service delivery. Customer-service
managers then utilise this information to help identify where they could improve levels of
customer service.

You need to be able to analyse how organisations in the travel and tourism industry assess the

quality of their customer service and make recommendations for improvements, if necessary.
Travel and tourism organisations use a variety of feedback techniques to find out if customers are
happy with the standards of customer service they receive, e.g.:

• informal feedback (from customers, staff, management, non-users)

• surveys (of customers, staff, management, non-users)

• suggestion boxes

• focus groups

• mystery shoppers

• observation.

You need to know how travel and tourism organisations use these techniques in order to develop

their customer-service provision while still reflecting the organisation’s values and attitudes.

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