PRELIMINARY PERIOD

CHAPTER I
Tourism Business Value Chain

How do we define value chain?

A tourism value chain is simply defined as a SYSTEM which describes how

private sector firms in collaboration with government and civil society receive or
access resources as inputs, add value through various processes
(planning, development, financing, marketing, distribution, pricing, positioning,
among others) and SELL the resulting products to customers. (Hawkins, 2005).

Tourism Value Chain

 Tourism Multiplier Effect

Source: World Travel and Tourism Council, 2018

Source: World Travel and Tourism Council, 2018

Tourism Sectors

 Transportation
 Accommodation
 Food Service
 Travel Trade
 Cruise
 MICE
 Others

Transport or Transportation
- is the movement of people and goods from one place to the other.

The term is derived from the Latin words:

/trans/ - across
/portare/ - to carry

Transportation is further subdivided into:

 Air
 Road
 Rail
 Water

CHAPTER II
 Air Transportation

Humanity’s desire to fly possibly first found expression in CHINA, where human
flight tied to kites is recorded (as a punishment)

Chinese kite flying is 2500 years old. 6th -century Emperor, Kao Yang, during an
early purge, used an aerodynamic experiment to kill his enemies.

ICARUS is a character in Greek mythology. He is the son of Daedalus and is

commonly known for his attempt to escape Crete by flight, which ended in a fall
to his death.

The first generally recognized human flight took place in:

Paris in 1783, a hot air balloon traveled 5 miles invented by the Montgolfier
brothers, Joseph-Michel (1740 - 1810) and Jacques-Etienne (1745 - '99)

…where two Americans who are generally credited with inventing and building
the world’s first successful airplane making it the first controlled, powered and
sustained heavier-than-air human flight on December 17, 1903 near Kitty Hawk,
North Carolina.
- Wilbur and Orville Wright

D.E.L.A.G

(Deutsche Luftschiffahrts-Aktiengesellschaft) or the German Airship Transport

Corporation was the world’s first airline. It was founded on November 16, 1909
with government assistance.

Men and Women of Aviation

Charles Lindberg

 Made the first solo crossing of the Atlantic;

 This feat sparked the interest of aviation;

Amelia Earhart

Lost in an attempt in 1937 to make the longest circumnavigation in the world

The first countries in Europe to embrace Air Transport were:

Finland
France
UK
Germany
The Netherlands
Some of the first countries in Asia to embrace Air Transport were:

India
Hong Kong
Indonesia
Malaysia
The Philippines

The first country in ASIA to embrace Air Transport is The Philippines.

The Philippine Airlines (PAL) was founded on February 28, 1941, making it
Asia’s oldest carrier still operating under its current name.
The airline was founded by a group of businessmen led by Andres Soriano Sr.,
hailed as one of the Philippines’ leading industrialists at the time.

The airlines’ first flight was made on March 15, 1941 with a single Beech Model
18 NPC 54 aircraft, which started its daily services between Manila (Nielsen
Field) and Baguio.

Notably Philippine Airlines leased Japan airlines their first aircraft, A DC-3
named “Kinsei”

On July 31, 1946 a chartered Philippine Airline DC-4 ferried 40 American

servicemen to Oakland, California from Nielsen Airport in Makati city with stops
in, Guam, Wake Island, Johnston Atoll, and Honolulu Hawaii making PAL the first
Asian airline to cross the Pacific Ocean.

The Aviation System

Aviation is the term used to describe the industry that builds and flies aircraft.
Aircraft Manufacturing

Civil Aviation

- Major Carriers – domestic and international

- Regional Carriers (commuters)
- Supplemental Carriers (Charters)
- Cargo

General Aviation

- Private Planes
- Pleasure flying, land surveying
- Flying Instruction
- Agricultural use
- Cargo
- Corporate Jets
- Air Taxi Services
Aviation Support Industries

It is further divided into two:

Civil Aviation
the industry that flies the public from place to place

Military Aviation
aircraft flown by a nation’s air force and other branches in the military

Civil Aviation, in turn can be divided into:

Domestic Service
a flight must start and end within the borders of the same country

International Service
the flight starts in one country and ends in another

Air Service and Routes

Scheduled Service
is an air transportation that operates regularly at set, advertised times no matter
how many people are booked on the flight.

Chartered Service
flown by charter airlines, usually sell seats to tour operators. The occasional
nature of their flights, they are not usually advertised and sold the way
scheduled flights are.

Privately – owned Jets

In some cases, business travelers usually senior executives fly on a corporate jet
that their company owns.

Fractional Ownership
the plane has multiple owners who have set an amount of flight hours they can
use.

Flight Types and Routes

Non – Stop Flight

traveler goes from Point A to Point B on the same aircraft with no stop in
between

Direct Flight
traveler goes from Point A to Point B on the same aircraft but that aircraft stops
at an airport in between. The flight will still have one flight number.
Connecting Flight
traveler, to get to his destination, must change plane once, twice or even more
times. Each flight will have different flight numbers.
Another way to look at flights – from the traveler’s ticketing point of view:

One-Way Flight Itinerary

The traveler goes to point A to Point B.

Round Trip Flight Itinerary

The traveler flies from Point A to Point B, stays a while and then returns from B
to A.

Open-Jaw Flight Itinerary

Traveler flies from Point A to Point B then travels by ground transportation from
B to C, then returns by air from C to A.

Circle Flight Itinerary

Traveler has two or more extended stopovers and returns to the originating city.

Classifications of Airlines

Major/Full – Service Carriers

Servicing both domestic and international (including long haul) flights; Usually
offers several classes of service

Regional - Carriers
Also known as feeder airlines because their flights feed passengers from small
cities into big city-airports and help fill the large planes of the major airlines

Low Cost Carriers (Lccs)

 Emerged after the liberalization of Civil Aviation in North America and
Europe in 1970’s
 Cheap, point-to-point services without any “frills”
 They offer basic services
 Passengers have the option to pay for extras such as food on board, in flight
entertainment and checked (in) baggage.

Airline Hubs And Spokes

Hubs
are airline’s centralized operation units, usually near major population centers,
both domestic and international to serve as convergence airports for their route
systems

Fortress Hubs
are airline dominated airports where airline administrative centers are usually
located

Spokes
Airlines flying smaller planes feed passengers from outlying towns into hub
cities forming the spoke of the hub
Airline Criteria for Choosing a Hub

 Central location in the area

 Market size, large local population
 Positive competitive environment
 Potential for generating new passenger and freight revenue
 Airport facilities
 Good operating conditions
Airline Codes

 Each airline has a code of either two letters or a combination of letters and
numbers.
 Are relatively easy to learn because most but not all have some relation to
the name of the airline
 Except those international airlines the came along after the logical codes
were given out

City Codes

Airports have two names:

 the name of the airport (usually honoring a local hero or the politician in
office when the airport was built)
 IATA 3-letter identifiers

Types of Aircraft

 Engine Type
 Purpose
 Body Width

Engine

Turboprops (Propeller Driven By Jet Engine) Or Conventional Turbine Jet

Engine
 Seating capacity between 19 to 70 seats
 Short range
 Less carrying capacity
 Less runway requirements
 Commonly cruise at just above 500 km/hr

Jet Engine
 Seating capacity between 40 – 855 (Airbus A380 – 800)
 Larger aircrafts are for long – haul flights

Purpose/Mission
 Short Haul – 750 miles and up to 3 hours flying time
 Medium Haul – 751 – 2,500 miles and 3 – 6 hours flying time
 Long Haul – over 2,500 miles and 6 – 13 hours flying time
 Ultra-Long Haul – 14 hours and above
The longest non-stop passenger service is between Singapore and Newark (NJ)
in an all-business class configuration by Singapore Airlines.

Body Width
 Narrow-body aircraft
 Wide-body aircraft
Classes of Service

First Class
is in the compartment at the front of the plane
It usually features, among other things:
 wider seats;
 greater pitch;
 more recline;
 more elaborate meals;
 complimentary alcoholic beverages;
 and free movies.

Business Class
 usually sandwiched between the first and the coach class
 Business class represents a kind of service that’s almost as good as that
found in the first class

Economy Class
 the more standard level of service
 also known as the coach class
It features:
 narrower seats;
 less pitch and recline;
 simple meals or snacks or even no food service at all, except perhaps a bag of
pretzels and soft drink
 CHAPTER III
Railways, Motor Coaches And Car Rentals

Historical Timeline of Railways

Ancient Systems
600 B.C. - Diolkos paved track way which transported boats across the Isthmus
of Corinth in Greece.

Pre – Steam
Reisszug (1515), a funicular railway at the Hohensalzburg Castle in Austria – the
oldest operational railway in the world.

1500’s – wooden rails

1700’s – metal railways
1900’s 1920’s – Golden Age of Railways

Downward Demand
1930's – Pre World War II – Growth in car ownership and intercity bus services

1980 – Decline of rail service

Two factors:
 The Airline Industry
 Railways financial structure – higher fixed cost of railways

Foreign Rail Service

In many countries, railways are still a major form of transportation. Most of
these railways are owned and operated by the government.

Other Factors besides government subsidies account for the survival of

passenger trains:
 Private Car Ownership – lower compared to US and Canada
 Price of Gasoline – gasoline is much more expensive in Europe
 Proximity of major cities in Europe – European capitals are far apart from
major population centers
 Reliability of rail service
 Price of Air Travel – rail travel is almost always less expensive

Motor Coach
Commonly known as the “bus” has played a major role in the surface travel
industry throughout the world

It is the most widespread and the least expensive form of public transportation.

Origin of Motorcoaches
Descendant of a horse-drawn stagecoach in the 1890’s

Motorcoach as a Travel Product

Hop on – Hop Off Buses

Buses travel near major landmarks around the town or city.
Pre-recorded or live commentary about the landscape is provided through small
headphones worn by each passenger.
Users may leave the bus and board again without limit (hop-on, hop-off) at
special bus stops on a circular route.

Car Rentals
The evolution of the car rental industry is essentially the story of the Hertz
Company, started in 1918 when the 22-year old entrepreneur Walter Jacobs
opened the first operation in Chicago with Model T Fords.

Car Rental Process

Qualifications:
 Valid (international) Driver’s License
 Be of a certain age/Usually 21 – 65 years old
 Major Credit Card If no credit card – must be cash qualified (deposit)
 Personally Responsible

Rates
vary according to the size of the car and do not include gasoline, taxes, or charges
for extra services

Regular Rate – a standard charge for the day, usually with an added amount for
kilometers driven;

Special Rate – a discount rate for weekends or holidays – can also include
an unlimited kilometer plan

Corporate Rate – a discount rate for employees of companies with high

rental volume

Makes and Models

Subcompact
A small car (e.g. Nissan Sentra)

Compact
An average-sized car (e.g. Chevrolet Cavalier)

Standard
A full-sized car (e.g. Subaru Legacy)

Deluxe
A large luxury car that usually comes equipped with many extras (e.g. Lincoln
Town Car)

Car Rental Extra Services

Drop Off – allow the clients to drop-off the car at any location owned by the
company

Gas – gasoline charges when cars are returned with less than a full tank

Insurance – clients are liable for a specified initial amount of damage to the car.
Car rental firms offer insurance to cover the liability
Taxi, Limousine And Transport Network Vehicle Services

Taxi, Limousine and TNVS play an important role in public transportation. They
are called:
On-Demand Public Transportation
They don’t operate on a regular schedule, rather, passengers arrange them
individually for service.

MIDTERM PERIOD

CHAPTER IV
Accommodation

Accommodation is defined as:

 the act of accommodating or the state of being accommodated

 something that meets a need; a convenience;
 room and board; lodgings.
People who travel and stay away from home for more than a day need lodging
mainly for sleeping.

Other purposes include:

 For safety
 Shelter for cold and rain
 Having a place to store luggage
 Being able to take a shower

A hotel is an establishment that provides lodging paid on a short-term basis.

Facilities provided may range from a basic bed and storage for clothing, to luxury
features like en-suite bathrooms. Larger hotels may provide additional guest
facilities such as a swimming pool, business center, childcare, conference
facilities and social function services.

Hotel rooms are usually numbered to allow guests to identify their room. Some
hotels offer meals as part of a room and board arrangement.

The word hotel is derived from the French hô tel (coming from the same origin as
hospital), which referred to a French version of a building seeing frequent
visitors, and providing care, rather than a place offering accommodation.
Statler Hotel - first major hotel to have a private bath or shower and running
water in every room.

Types of Hotels

a. Upscale luxury
b. Full service
c. Boutique hotels
d. Focused or select service
e. Economy and limited service
f. Extended stay
g. Timeshare and destination clubs

An upscale hotel facility offers luxury amenities, full service accommodations,

on-site full service restaurant(s), and the highest level of personalized and
professional service. Luxury hotels are normally classified with at least a Four
Diamond or Five Diamond status or a Five Star rating depending on the country
and local classification standards.

UPSCALE LUXURY HOTELS

 Mgm Grand Las Vegas
 Mandalay Bay
 The Peninsula Manila
 Sofitel Philippine Plaza

Full service hotels often contain upscale full-service facilities with a large
volume of full service accommodations, on-site full service restaurant(s), and a
variety of on-site amenities such as swimming pools, a health club, children's
activities, ballrooms, on-site conference facilities, and other amenities.

FULL SERVICE HOTELS

 Intercontinental Hotel
 Sheraton
 Hyatt
 Century Park

Boutique hotels are smaller independent non-branded hotels that often contain
upscale facilities of varying size in unique or intimate settings with full service
accommodations. Some historic inns and boutique hotels may be classified as
luxury hotels. Boutique hotel is a term popularized in North America and the
United Kingdom to describe hotels which have typically between 10 and 100
rooms and often contain luxury facilities in unique or intimate settings with full
service accommodations.

BOUTIQUE HOTELS
 Madison Hotel
 Washington Hotel
 Sylvia Manor
 Cocoon

Focused or Select Service

Small to medium-sized hotel establishments that offer a limited amount of on-

site amenities that only cater and market to a specific demographic of travelers,
such as the single business traveler. Most focused or select service hotels may
still offer full service accommodations but may lack leisure amenities such as an
on-site restaurant or a swimming pool.

FOCUSED OR SELECT SERVICE HOTELS

 Hotel Veronica
 Urban Manor Hotel
Economy and Limited Service

Small to medium-sized hotel establishments that offer a very limited amount of

on-site amenities and often only offer basic accommodations with little to no
services, these facilities normally only cater and market to a specific
demographic of travelers, such as the budget-minded traveler seeking a "no
frills" accommodation. Limited service hotels often lack an on-site restaurant but
in return may offer a limited complimentary food and beverage amenity such as
on-site continental breakfast service.

ECONOMY OR LIMITED SERVICE HOTELS

 Plaza Central
 Halaran Plaza
Extended stay hotels are small to medium-sized hotels that offer longer term
full service accommodations compared to a traditional hotel. Extended stay
hotels may offer non-traditional pricing methods such as a weekly rate that cater
towards travelers in need of short-term accommodations for an extended period
of time. Similar to limited and select service hotels, on-site amenities are
normally limited and most extended stay hotels lack on an on-site restaurant.

EXTENDED STAY HOTELS

 Linden Suites
 Discovery Suites

Timeshare and Destination clubs are a form of property ownership also

referred to as a vacation ownership involving the purchase and ownership of an
individual unit of accommodation for seasonal usage during a specified period of
time. Timeshare resorts often offer amenities similar that of a Full service hotel
with on-site restaurant(s), swimming pools, recreation grounds, and other
leisure-oriented amenities. Destination clubs on the other hand may offer more
exclusive private accommodations such as private houses in a neighborhood-
style setting.

Example: Disney Vacation Club

CLASSIFICATION OF LODGING ESTABLISHMENTS

 Convention Hotel
 Commercial Hotel
 Resort Hotel
 Casino Hotel

Convention hotels have the capability of hosting conferences and meetings.
They have multiple meeting rooms and often large spaces where trade shows
can be held. Conventions are the primary source of business.

CONVENTION HOTELS
 EDSA Shangrila Hotel
 Traders Hotel

Commercial hotels are generally located in center – city for the convenience of
a business traveler. These establishments have business centers, featuring office
equipment for guest’s use, and full in – room modern connections.

COMMERCIAL HOTELS
 Dusit Thani Manila
 The Heritage Manila

Resort hotel is commonly described as a lodging establishment that attracts

pleasure travelers or vacation seekers and offers recreational activities.

RESORT HOTELS
  Plantation Bay - Cebu
 Hennan Regency

Casino hotels offer patrons opportunities to sleep cheap yet spend big. They
offer low room rates and low food costs because profits are made primarily
through gaming.

Example: Waterfront Hotel and Casino

The first lodging facility that can be directly considered a precursor of the
modern hotel was the 73 rooms City Hotel built in New York in 1794.

It is a significant milestones in the evolution of lodging because its sole purpose

was to house guests. All the previous inns were homes first, and lodging facilities
second.

In 1829, Tremont House was built in Boston. This property was another
milestone in the early revolution of hotels.

It was considered as the first five-star hotel. Highly trained staff, French Cuisine,
and luxurious appointed rooms combined to give guests the finest hotel
experience available ever to that point in time.

Amenities offered by the Tremont House include in-room water pitchers and free
soap that was considered revolutionary.

MODERN TIMES

The hotel industry experienced the start of construction boom, and since then
the hotel industry is progressing day by day. International business is rapidly
developing and with this lot of business executive is travelling out; modern
hotels are developing as per the needs and wants of tourist and business class
guest.

CHAPTER V
History of the Lodging Industry

Historical Perspectives

Being hospitable can be traced back to the civilizations of Sumeria, Ancient

Egypt, Ancient Greece, Rome and Biblical Times.

Two possible explanations why people in ancient times felt required to be

hospitable:
 They felt that providing hospitality to strangers were necessary to their
religious well-being and
 Having superstitious belief.
The more logical in our modern thinking explains that providing hospitality was
a result of a “give and take” philosophy.

The need for a place to stay away from home is as old as the first nomadic
traveler.

Trading between two cultures created the need for groups of people to travel
often great distances.

Along these trade routes, certain stopping points became favored out of
necessity.

These stopping points became known as junction points that grew into trading
centers and eventually evolved into cities.

ANCIENT GREEK DAYS

Hospitality was provided by certain elements of religion: missionaries, priests

and pilgrims. The Accommodation was meager; providing only shelter and
barest of sustenance. They were operated by slaves who belonged to the temples
or holy places.

ANCIENT ROMAN DAYS

In ancient Rome, the inns were large mansions. Owners of these inns would not
allow guests to stay unless they carried a “Letter of Eviction” – which was the
permission to travel from the government. Most were built in areas with natural
springs. Their taverns are called “Tabernas: and the attached in was called
“Cauponas”.

BIBLICAL TIMES

The most famous story of accommodation was during the nativity of Jesus Christ.
People were reporting there to pay taxes. Journey segment is the maximum
reasonable distance traveled in one day along trade and caravan routes.

At these journey segments, lodging facilities became a need. They were called
relay houses in China, khans in Persia, and tabernas in Rome. At some point,
innkeepers began to incorporate food and beverage service in their operations.

Another development was the Roman network of roads that crisscrossed Europe
and parts of Asia and Africa. These roads provided fast and safe routes for
travelers.

MIDDLE AGES
During the Middle Ages, it was considered the duty of Christians to offer
hospitality to traveler and pilgrims. In many instances, monasteries functioned
as inns, providing accommodations and food for the weary travelers.

During the reign of Charlemagne, he enacted a law setting out the duty of a
Christian to provide free resting place for a traveler as well as food. Up to this
period, the rendering of hospitality was considered a charitable donation
springing from religious belief rather than a business venture.

The concept of hospitality was changed in 1282 in Florence, Italy. The

innkeepers created a guild or associations that formed hospitality into business.

19th CENTURY

The industrial revolution of the mid-1900s created new modes of transportation

that further changed the way people traveled.

The emergence of railroads and later the automobile played large roles in
lodging’s history because both dramatically increased the lengths of journey
segments for a traveler.

As the evolution of lodging continued, new facilities began to emerge as an

option for travelers. The wealthy and landed aristocracy of the world began to
view the many spare rooms in their castles and estates as sources of revenue.

The best example of this can be traced back to the English and colonial inns of
the 1700s. The significant difference between the two was that colonial inns
offered rooms to anyone who could afford to pay, whereas English inns were
most often reserved for the aristocracy.

Another difference between the two was that English inns rented out individual
sleeping rooms, whereas colonial inns regularly offered large rooms with several
beds inside. This meant that English inns could offer private guest rooms,
whereas colonial inns were better suited for communal accommodations.

The word hotel is the Anglicized version of the French hotel garni, which
translates into “large, furnished mansion”.

The first lodging facility that can be directly considered a precursor of the
modern hotel was the 73 rooms City Hotel built in New York in 1794.

It is a significant milestones in the evolution of lodging because its sole purpose

was to house guests. All the previous inns were homes first, and lodging facilities
second.

 Hoshi Ryokan (718) – World’S second oldest hotel

 Nishiyama Onsen Keiunkan (705) – World’s oldest hotel
 Hotel del Oriente (1850) – First hotel in the Philippines
 Manila Hotel (1912) – Oldest premiere hotel in the Philippines

In 1829, Tremont House was built in Boston. This property was another
milestone in the early revolution of hotels.

It was considered as the first five-star hotel. Highly trained staff, French Cuisine,
and luxurious appointed rooms combined to give guests the finest hotel
experience available ever to that point in time.

Amenities offered by the Tremont House include in-room water pitchers and free
soap that was considered revolutionary.

Allure Of The Seas – World’s largest Cruise Ship

MODERN TIMES

The hotel industry experienced the start of construction boom, and since then
the hotel industry is progressing day by day. International business is rapidly
developing and with this lot of business executive is travelling out; modern
hotels are developing as per the needs and wants of tourist and business class
guest.
 Burj Al Arab (Tower of the Arabs) – Known to be the first 7 – star hotel
 Marina Bay Sands – World’S most expensive building
 Conrad Hilton – King of Innkeepers
 John Willard Marriott Sr. – Founder of the Marriott Hotel Chain
 Charles Kemmons Wilson – Father of Modern Hotels and Founder of Holiday
Inn
 Cesar Ritz – Founder of Ritz Hotel

CHAPTER VI
Significance of Rooms

SIGNIFICANCE OF ROOMS

• The sale of rooms contributes approximately 70% or more to the total

hotel revenue.
• A room ‘sale’ occurs when a room is leased for occupation for 24 hours, at
a predetermined cost.
•
ROOM (a perishable commodity)

A room not sold on a particular day loses its opportunity to earn revenue for that
day.
GUEST ROOMS

Rooms to guests mean:

• Comfort
• Security
• Privacy
• Convenience
• Cleanliness
• and Hygiene
• A “Home Away from Home”
•
TYPES OF HOTEL ROOMS

Single Room - It is a room which provides single occupancy. This room has a
single bed.

Double Room - It is a room which provides double occupancy. This room has a
double bed.

Triple Room - It is a room which provides occupancy for 3 people. Either it has 2
double & 1 single beds OR 3 single beds.

Quad Room - It is the room which provides occupancy for 4 people. Either it
have 2 double beds OR 2 singles & 1 double bed.

Twin Room - It is a room which provides double occupancy. This room has 2
single separate beds.

Interconnecting Rooms - Two rooms which shares a common door, mostly

used by families.
Adjoining Rooms - Two rooms which share a common wall, mostly preferred by
groups.

Hollywood Room - It is a room which provides double occupancy. The bed in

this room is movable or attachable; hence it is called as “Hollywood Room”.

Hollywood Twin Room - A room which has two single bed but shares a
common head board.

Duplex - A room which is been spread on two floors connected by an internal

staircase.

Studio Room - A studio room is designed with the minimum basic requirements
to live. It is made of a room open to a kitchen and has a small bathroom in it, and
usually it has an attached wardrobe area.

Parlor Room - A living or sitting room; a room not used as a bedroom.

Lanai - A room which oversees a scenic beauty e.g. Garden, landscape or water
fall.

Efficiency Room - A room with a kitchen facility.

Hospitality Room - A room where hotel staff would entertain their guests.

Cabana Room - It is the room which is situated near swimming pool. This room
is used for changing purposes.

Suite Room - A combination of one or more bedrooms & a parlor. It may also
contain a bar & small kitchen.

Penthouse - A room that opens onto the roof & may be accompanied by a
swimming pool, patio, a tennis court, & other facilities & amenities.

Executive Room - A room that has a large bedroom with a sitting area, provided
with chairs & usually a sofa & coffee table. This is a combination of a bedroom-
cum-sitting room.