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The Development of the Travel and Tourism Industry After World War II

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The Development of the Travel and Tourism Industry After World War II



Travel & Tourism
================

The development of the Industry after the Second World War

“Travel and Tourism is not one activity, but a series of industry
sectors linked by the common aim of serving the travel needs of people
around the world and defined by the world and defined but the World
Travel & Tourism Council (WTTC) as:

The economic activities associated with travel as measured by the wide
variety of current and capital expenditures made by or for the benefit
of the traveller before, during and after the trip.


Changing Socio-economic circumstances
-------------------------------------

Since the Second World War the Travel and Tourism Industry has
developed. The main factors that have led to the growth and
socio-economic circumstances of the Travel and Tourism Industry are:

* Increase in Car Ownership

The greatest single transport factor that has increased for travel and
tourism is the car ownership. There was an increase in the number of
cars on the road between 1951 and 1970 and an even bigger increase
between 1951 and mid 1990’s. Increased car ownership has now been a
major factor of visits to tourist’s attractions and leisure
facilities.

[IMAGE]

This shows how car ownership has increased over the years.

* Increase in Leisure time

People now don’t have to work as much so more time to have holidays in
the UK and abroad so more times to go on holiday. In the 1950’s the
average working week was 50 hours but now the typical hours in a
normal working week ranges from 37 – 40 hours.

* More disposable income and paid holiday

People now have more money to spend on holidays from two incomes in a
family and go on more holidays. Also people now are paid for there
time off from work and use this to on holiday home and abroad. This
was not until 1938 that it came a legal requirement. It has gradually
increased to 4 weeks or more per year.


Technological Developments

* Jet Aircrafts Developed

The breakthrough of the Jet Engine first started after the Second
World War. It brought dramatic improvements however technology
restricted a number of people to travel and was very expensive. But
it was in 1958 when the first passenger jet started and transatlantic
crossing time was cut from some five days on an ocean liner to seven
hours on an aircraft. Then in the 1970s the jet aircraft really
started being able to carry more passengers and increased profit and
made flights cheaper. The last twenty years tour operators have
created packages for the needs of these new travellers

* Computerised Reservation Systems

Many travel retailers use to rely on pen and paper to do the work but
attitudes started changing as technology started to improve by the
early 1990s. View data was the first industry-wide booking system,
first introduced back in the 1980s. View data is more than 20 years
old and out of date but still the trade’s favourite reservation
system. Global distribution systems (GCDs) were known as a computer
reservation computer in the late 1980s. These were set up by
competing airlines to distribute their fares electronically to
business travel agencies. Business travel agencies still use them but
only 1 of the GDSs than all of them. Also now you can book online,
over the phone and on teletext.

Extensive use of new technology

Over the years the technology has improved all through the travel and
Tourism industry with better transport, computerised reservation
systems at travel agents and airports and better packaged holidays.


Product Development and innovation

* Introduction of holiday camps

The introduction of places like Butlins and Center Parcs has led to a
big growth in the Travel and Tourism industry. There is many holiday
camps been open for many years before the Second World War but there
were over 100 holiday camps but Butlins beat them all through the
1960’s and still to this day millions still go.

* Low Cost Airlines

Over the last couple of years the low cost airlines have made a big
development in the business. Low cost airlines like Easy jet, Ryan air
and BMI Baby make it easy for people to travel to places in Europe for
cheap prices.

* Long Haul Destinations

Long Haul destinations have changed the industry a lot most holidays
started just in the UK and Europe now you can travel to places like
Australia and America and doesn’t take to long to get there. This
gives people to travel around the whole world and go somewhere
different.

* Package holidays

Package holidays have made a big improvement in the business. Package
holidays is your accommodation, transport and 1 other put together to
bring a holiday together so it’s easier for the customer and there is
so many different types of packages.


Entrepreneurs in the Travel and Tourism Industry

* Thomas Cook

Thomas Cook (Thos Cook and son) after the war benefited from the post
war holiday boom then which saw one million Britons travel abroad in
1950. In 1965 the company exceeded 1 million but then decreased and
fall behind younger rivals. In the 1980’s Thomas Cook started to
concentrate on long haul holidays then short and leaving short haul in
1982. Then he returned back into short haul in 1996. Today Thomas
Cook is a leading travel company and most widely recognised and this
started 160 years ago.

* Billy Butlin (Butlins)

Billy first started in Skegness and a total of nine were eventually
built and can be divided into 3 distinct areas pre war, war, and post
war camps which were Bognor, Barry, Minehead and Mosney. The camps
were doing well in the late 1960s and Billy retired in 1968 and the
company taken over by his son but in 1972 the company was sold for £42
million. Things carried on well but then British Holidays had some
competition from the foreign countries like Spain and holidays abroad
had boomed up and British seaside holidays were coming to an end. Now
only 3 camps remain.

Changing Customer needs and expectations

Peoples needs and expectations have changed a lot in recent years.
People are now fitter, healthier and more prosperous and are seeking
more different and exciting types of leisure and tourism experiences.


The Domination of the private sector

Private sector organisations:
Private sector organisations are in private ownership, either directly
or indirectly. They are normally profit making. Examples of facilities
run by private sector organisations include hotels, tourist
attractions and health and fitness clubs.

Accommodation Most hotels in the world are small and privately owned
and operated. Most of these establishments usually employ less than 20
people. Such hotels often advertise locally or through regional
tourist board promotional materials and do not take space on a
Computer Reservation System (CRS); Some of the hotels offer rooms to
tour operators on contract as part a package holiday deal. Privately
owned hotels offer a variety and different sort of hotel to your
branded hotel.

An individual chain may operate a wide range of differently named
hotels and these are called brands. Brands are often differentiated by
the quality of service that they offer. Holiday Inn Worldwide (USA)
for example is owned by Bass PLC, UK and operates the three and four
star brands of Crowne Plaza, Express, and Garden Court.

Airlines Since the attack on America Airline Company’s have lost
millions in the business so the bottom line is that the airlines want
free public money, so that they can then make private profit once they
get back on their feet! If the airlines cannot run safely,
efficiently, and at a reasonable cost what will they do Public
ownership under workers’ control is the only solution. If they want
public money to run the airlines, then let the public run them.


Vulnerability to external pressures

* Currency Fluctuations

Most of Europe has joined to the Euro but some countries still have
their original currency. But when exchanging money abroad if interest
rates go up people lose out on money. (There’s a lower cost of living
in Eastern Europe e.g. Turkey and Bulgaria)

* War/Civil unrest

The pressure this is having on countries like America where people
could be scared to travel there in case anything happens again. Also
Turkey is having a big cut down on people travelling there because
it’s close to Iraq and Turkey has been having problems in the main
towns. It says that some insurance companies won’t insure people
travelling to the main destinations in Turkey because they know there
are problems so if anything happens they won’t be insured so less
people travel there and Turkey is loosing out on tourism and money.

* Climatic Changes

Over the years the weather has been getting warmer so snow will melt
in the ski tourist places will start to lose money and tourist because
of the weather also some places will have increased tourist for the
weather being warmer.

* Diseases

Some countries are also loosing tourist because of diseases like Sars
and foot and mouth because people don’t like to travel to somewhere
where they could catch something and can’t even go there. Britain
lost a lot of tourists a couple of years ago through foot and mouth.

Research reveals that:

1. 78% say that there is still plenty of things for tourist to do in
the country

2. 46% believe that most places in the countryside were closed
during foot & mouth but then fell to 17% following a new
advertisement

3. 46% of those in the survey said they were intending to visit the
countryside in the month or so for a day visit (27%), short break
(15%) or a holiday of 4 nights or more (11%).

* Legislation

Legislation is making laws and some of the important ones in Travel
and Tourism in the UK are:

Year

Act

Aim

1947

Town & Country Planning Act

Local authorities able to designate open spaces for recreational use
or development.

1949

Access to the Countryside Act

Encouraged local authorities to promote access to the countryside for
recreational purposes and led to the creation of the National Parks.

1969

Countryside Act

Enabled local authorities to provide countryside-based recreational
facilities.

1969

Development of Tourism Act

Created the British Tourist Authority and the national tourist boards
for England, Scotland and Wales.

Positive and negative impacts on host communities

Tourism can have many positive and negative impacts on tourist
destinations.

The positive are:

Many jobs are made in the tourism business e.g. in restaurants,
hotels, shops etc. Also the owners of the shops and restaurants make
quite a lot of money from tourists visiting and money in the country
improves the country’s appearance because they have the money to
improve buildings etc. The more visitors the more well known it gets
and people will travel there and is known as a place to visit.

The negative are:

Even though many jobs are produced through the tourism industry most
jobs are seasonal so people working in hot countries e.g. Spain after
about October when it’s colder and no tourist there’s then no work
till the summer again. Also for the winter ski holidays. Shops and
restaurants also lose business through problems like war and diseases
so people don’t travel to dangerous countries so the owners lose the
money. Another negative impact is how countries can get destroyed
e.g. Falaraki has had many problems with loads of young people up all
night drinking. Also there have been cases of British people being
arrested and even raped over the last couple of years.

Task 2


Components

The components to make up the structure of the Travel and Tourism
Industry are:

A tourist attraction is the place where tourist would go to visit e.g.
Alton Towers theme park. Blackpool Beach

Transport is then needed for how to reach the tourist attraction e.g.
by car, train etc

Accommodation is not always needed as some tourist attractions could
just to visit for a day but if needed hotels, caravans etc

Tour Operators then put a package together using the attraction
visiting, the transport and accommodation and then put it in travel
agents or a direct sell to the customer and cuts out the travel agent.

Travel Agents then sell the holidays in brochures in many shops all
over the UK. Travel Agents often receive commission from selling the
holiday.

Then the Tourism development and promotion section advertise and
promote their part of the country so more people will visit the area
from seeing advertising.



Tourist Attractions
===================

A tourist attraction is a place where people can go to visit and
usually of interest. The attraction can be free or of additional
charge to enter the attraction.

There are 2 different types of attractions natural and man made:

* Natural – is things that are natural and not made by people e.g.
national parks, which is full of natural scenery and mountains
which tourist go to visit e.g. Snowdonia, Blackpool Beach which
receives more than 6 million people visiting the 42 acre beach.

* Man made – is attractions that are made by people for tourists
e.g. Alton Towers that is a theme park with many rides which first
started off as a stately home in Staffordshire, then was built up
into a theme park. Also there’s the attractions like the pier in
Blackpool that was built for tourist going to Blackpool to enjoy
with rides.

Many places offer the entrance to the attraction for free. Places like
Blackpool Pleasure Beach
National History Museum

Science museum Tate Modern

Tate Britain The Lowry

British Museum National Gallery

Source: Survey of Visits to Visitor Attractions (star UK)

Other attractions also have a admission enter the attraction. Places
like

British Airways London Eye Tower of London

Eden Project Legoland Windsor

Chester Zoo Stonehenge

Windsor Castle Edinburgh Castle

Source: Survey of Visits to Visitor Attractions (star UK)

Transport

Transport plays a big part in the Tourism industry and accounts for
25% of all tourists spending on a trip. There’s many different ways of
getting around and plays a big part in the travel and tourism industry
and also tourist usually have to travel by more than one mode of
transport to get to there destination. Either travelling to a place by
own car or public transport visitors expect high standards of service
including car parks and park and ride schemes. Also travel information
services

[IMAGE]

* Land/Rail-There are now many train services that take you all
around the country. There are now many privately owned companies
virgin, GNER, also included in this are Eurostar, which takes
passengers through the channel tunnel between England and France
over a year channel tunnel receives over 5 million passengers.
From the old days the train journeys have changed a great amount
these days train journeys are more modern and a comfortable
journey. General travel on trains has declined but certain
services that train companies offer have risen. Coaches have
always played a big part in the travel and tourism industry they
provide a low cost way of travelling to a holiday destination
around the UK even to places like France and Spain. Companies that
offer these trips are Ledger and National Express which carries
more than 12 million passengers each year to around 1200
destinations throughout England, Scotland and Wales.

* Air- that has two different types of flights. Scheduled which
operates to a set timetable and will fly regardless of how many
seats are sold, they are usually sold directly to business people,
wholesalers and travellers. The top scheduled airline companies in
the world are.

American Airline

United Airlines

Delta Airlines

Lufthansa Group

Air France Group

British Airways

Japan Airlines

Federal Express

Northwest Airlines

All Nippon Airways

US Air Group

Continental Airlines

SAS Group

Alitalia

KLM Royal Dutch Airline

Source: Airline Business, Fighting Back, Reed Publishing Ltd,
September 1994

Charter flights are planes that are hired for a specific flight or
duration of time that doesn’t have a regular fixed departure and
arrival times. Some large tour operators own their own charter
airlines, which they can then sell as part of the package holiday e.g.
JMC and Airtours

Over three quarters of all package holidays sold in the UK use air
travel to transport

* Sea-Ferries have been a popular way to get across to places like
Ireland and France. P&O first initiated a commercial route across
the channel from Dover to Calais and now other transport links are
hovercraft, which can take you across the sea. Cruises have made a
great holiday for many holiday makers cruise liners like P&O
princess which offer trips all around places like the
Mediterranean.

Accommodation and Catering

There are many different types of accommodation and is very important
in the travel and tourism industry. They can be hotels, B&B’s which
can be a family owned business or a large well-known chain company.
Hotels use a rating system to show the quality of the hotel. They do
this using a scale of 1-5 of stars.5***** offering the best
accommodation, exceptional quality and best care and 1* offering fair
quality and just an overall standard.

Other different types of accommodation are caravans, self-catering
villas, travel inns and campsites. Different types of catering are
offered e.g.

* Self-catering is where in the accommodation you have to buy and
cook your own food or go out to eat. Self-catering accommodation
offers all the facilities and utensils to make the food. There has
been a growth for self catering holidays in recent years, self
catering can also be in a range of accommodation e.g. Studios,
villas, apartments, tents, caravans and boats

* B&B is where you get just your breakfast included in the price of
your accommodation

* Full Board is where you get all meals included breakfast, dinner
and tea

* Half Board offers you your breakfast and tea.

* All-inclusive gives you all your breakfast, dinner and tea but
also includes snacks in between and drinks included in price.

Tour Operators

A tour Operator is a company that puts a holiday together into a
package. They make the package up negotiating a contract with
accommodation providers, transport providers and 1 significant other.
Of the tour operator buys in bulk they can obtain a better price and
save money. The tour operator then puts it into a brochure then it is
sent out to travel agents for the holidays to be sold. The holiday
then can either be sold directly from the tour operator at a lower
price this is called direct sell operations. Along with Travel agents,
tour operators they are most important link in the selling of products
and development. It is also the most rapidly growing parts of the
travel and tourism industry.

There are 4 different types of Tour Operators:

1. Mass Market, which is the main Tour Operator that is the most
popular of Tour Operators. The 4 most well known mass market tour
Operators are Airtours

Thomas Cook

First Choice

Thomson

Which offer holidays like Lakes and Mountains, winter, All-inclusive,
City breaks and summer.

2. Specialist that offer a specialist holiday for the interests of
the holidaymaker. These could be: youth
holidays (18-30)

Seniors (young at heart)

Activity (Diving-Neilson)

Country/Area (Africa-Somak)

3. Domestic is holidays in the UK for UK tourists. These types of
places can be: Holiday Centers (Butlins)

Health Spas

Adventure/Outward Bound

Camping

4. Incoming that offers holidays for overseas tourists visiting the
UK. This is a great way to get overseas visitors to the UK and
makes the UK a great place to visit. These holidays are usually
offering tours of the history and culture of the UK to mainly
Americans, Japanese and the French: Miki Travel

Frames Rickard

Travel Agents

Travel Agents are what sell the holidays from the brochure they offer
in the shop. Travel agents can be individually owned or owned by a
Tour Operator and are the important link of selling holidays. The
travel agent is usually the link between the tour operator, and the
consumer. Travel agents make their money on a commision basis from the
selling of the holiday. Many travel agents these days have specialist
holidays There are different types of travel Agents. They are:

* Multiple which is a large chain of the travel agents that have
shops all around the UK in major towns and cities. These types of
travel agents are very well known throughout the country. The most
well known multiples are travel agents like Lunn Poly, Thomson and
Going Places.

* Miniples are a small chain of travel agents around 20 to 30 shops
usually in towns all near each other. These types of travel agents
have to compete with the larger companies who want to buy them
out. Travel Agents like Althams are a miniple and they’re placed
around Sale and other towns.

* Independent travel agents are just 1 or 2 travel agents which are
usually a family owned business with just a couple around usually
in a small town.

* Business deal with the big companies like American Express and
sort out business travel with the company for business trips that
need to be dealt with. These types of travel agents are in offices
and not in a shop.

* Also the same for call centres there in offices not in shops.
Customers then phone up to book a holiday instead of going into a
travel agent e.g. Cresta

Tourism Development

A tourist board is where people can go for information about an area
they would like to know about to go and visit. They can then ring up
and ask about the area. In a tourist information centre they can get
leaflets and other information about the area. The tourist information
centres are there to promote the area and show what it has to offer.
Tourist information boards are also there to:

· To promote or undertake publicity in any form;

· To provide advise and information services;

· To promote or undertake research;

· To establish committees to advise them in the performance of their
Functions

Blue Badge Guides are trained up to take individuals or groups around
the region for tours of the area for visitors. You can identify the
guide by them wearing a blue badge

Task 3

All organizations belong either to the voluntary, public or the
private sectors.

· Private

The private sector is companies like Thomson and British Airways who
are making a profit and increase sales. They make their money selling
their products and this is where they make their money.

There are shareholders in this sector and usually twice a year
receives divident so more shares more divident. If no profit is made
the shareholders get no money back.

· Voluntary

Voluntary makes their money from visitors, memberships, sponsorships
and donations. These are places like the National Trusts who protect
lands, buildings and buy new sites using the money from the money
collected. They have stakeholders who wouldn’t have money from the
profits but have their companies advertising and special deals.

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