http://www.bized.co.uk
Travel & Tourism Industry
Structures
BTEC National
Travel & Tourism
Copyright 2004 – Biz/ed
http://www.bized.co.uk
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
Copyright 2004 – Biz/ed
http://www.bized.co.uk
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).
Copyright 2004 – Biz/ed
http://www.bized.co.uk
Travel Industry
Copyright 2004 – Biz/ed
http://www.bized.co.uk
Distributors
Copyright 2004 – Biz/ed
http://www.bized.co.uk
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
Copyright 2004 – Biz/ed
http://www.bized.co.uk
Regulatory Bodies
Copyright 2004 – Biz/ed
http://www.bized.co.uk
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)
Copyright 2004 – Biz/ed
http://www.bized.co.uk
Public Sector Organisations
Copyright 2004 – Biz/ed
http://www.bized.co.uk
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)
Copyright 2004 – Biz/ed
http://www.bized.co.uk
Transport
Copyright 2004 – Biz/ed
http://www.bized.co.uk
Transport
Delivery of travel products and
services by:
• Road
• Air
• Sea
• Rail
Copyright 2004 – Biz/ed
http://www.bized.co.uk
Other Industry Players
Copyright 2004 – Biz/ed
http://www.bized.co.uk
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
Copyright 2004 – Biz/ed
http://www.bized.co.uk
Tourism Industry
Copyright 2004 – Biz/ed
http://www.bized.co.uk
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
Copyright 2004 – Biz/ed
http://www.bized.co.uk
Tour Operators
Four dominant firms
• TUI (Thomson)
• First Choice
• MyTravel
• Thomas Cook
All vertically integrated, operating
at more than one level in market
Copyright 2004 – Biz/ed
http://www.bized.co.uk
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?
Copyright 2004 – Biz/ed
http://www.bized.co.uk
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)
Copyright 2004 – Biz/ed
http://www.bized.co.uk
Conference/Exhibition
Organisers
• The importance of location
• Value and service at venues
• The role of sponsorship
• Customer care
Copyright 2004 – Biz/ed
http://www.bized.co.uk
Regulatory Bodies
• Consortium of Independent Tour
Operators
• Federation of Tour Operators
• People1st (Skills Council for
Tourism, Hospitality and Leisure)
• Regional Development Agencies
(RDAs)
Copyright 2004 – Biz/ed
http://www.bized.co.uk
Public Sector Organisations
• DCMS
• Visit Britain
• Regional Development Agencies
• FCO
• English Heritage
Copyright 2004 – Biz/ed
http://www.bized.co.uk
Other Industry Players
• The Tourism Alliance represents
industry views to the government
• Other firms in industry, such as
insurance companies and car hire
firms
Copyright 2004 – Biz/ed