###Travel and Tourism Industry Structure PowerPoint Presentation###



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1Tourism industry structure

Travel & Tourism Industry Structures

  • BTEC National Travel & Tourism

The Travel & Tourism Industry

  • Travel and tourism is one of the world’s largest industries
  • It is also one of the most fragmented
  • The two aspects of the industry can be viewed separately, as many of the players are involved in both
  • Let’s look at each part of the industry on its own

Heterogeneity – Plurality - Geographic dispersion

  • The tourism industry is made up of a large variety of complementary enterprises (tourism attractions, accommodation, intermediaries, bars and restaurants, transports, tourist offices, …) that, together, provide tourists with the experience they are looking for;
  • There is no single tourist product (even in the same destination), but different forms of tourist consumption are defined by different bundles of goods and services;
  • While consumers (the demand) are located in a geographic area (the area of origin), tourism products and services (the supply) are located in another one (the area of destination where tourism is actually consumed) except for outgoing intermediaries who usually work in the origin countries of tourist flows (Ecorys, 2009).

Travel Industry

Distributors

Distributors

  • The people, groups or firms that deliver the products and services of travel to consumers.
  • These include:
  • travel agents (business and leisure)
  • travel operators selling direct to the consumer
  • firms selling on the Internet
  • call centres handling customer service

Regulatory Bodies

Regulatory Bodies

  • Organisations set up to oversee the industry, either:
  • Trade associations such as ABTA (Association of British Travel Agents)
  • or
  • Statutory bodies such as the CAA (Civil Aviation Authority)

Public Sector Organisations

Public Sector Organisations

  • Government departments with responsibility for the industry:
  • Department for Transport (DfT)
  • Department for Culture, Media & Sport (DCMS)
  • Foreign and Commonwealth Office (FCO)

Transport

Transport

  • Delivery of travel products and services by:
  • Road
  • Air
  • Sea
  • Rail

Other Industry Players

Other Industry Players

  • Insurance firms and car hire companies:
  • Insurers provide cover for goods, services and people
  • Car hire providers meeting onward travel needs of business and leisure customers

Tourism Industry

Accommodation, Tour Operators & Distributors

  • Providing the ‘nuts and bolts’ of the industry:
  • Hotels, villas, apartments, B&B, camping parks
  • Packages of travel tours to popular locations
  • Selling the travel product/service to individual and business consumers

Tour Operators

  • Four dominant firms
  • TUI (Thomson)
  • First Choice
  • MyTravel
  • Thomas Cook
  • All vertically integrated, operating at more than one level in market

Tour Distributors

  • Usually includes business and leisure travel agents:
  • Some large and well-known
  • Some small and independent
  • Others in niche parts of market
  • Can you think of examples of each?

Tourism Agencies

  • Tourist boards and offices:
  • Promoting Britain to overseas customers (Visit Britain)
  • Promoting regions of the UK to overseas and domestic customers (Visit Northumbria)
  • Providing information to customers (Tourist Information Centres)

Conference/Exhibition Organisers

Regulatory Bodies

  • Consortium of Independent Tour Operators
  • Federation of Tour Operators
  • People1st (Skills Council for Tourism, Hospitality and Leisure)
  • Regional Development Agencies (RDAs)

Public Sector Organisations

  • DCMS
  • Visit Britain
  • Regional Development Agencies
  • FCO
  • English Heritage

Other Industry Players

  • The Tourism Alliance represents industry views to the government
  • Other firms in industry, such as insurance companies and car hire firms

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