Travel and Tour Management Midterm 1

Republic of the Philippines
City of Taguig
Taguig City University
Gen. Santos Avenue, Central Bicutan, Taguig City
TRAVEL AND TOUR MANAGEMENT
COURSE MODULE
ABAIGAR, RUMAR R.
CONIENDO, CRESLIE KIM S.
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This manual was designed as a reference and toolkit accompanying guided questions
and activities. For students who enrolled in travel and tour management, this manual is
fit for you.
The course and these materials should help students gain a better understanding of:
1) The structure of the international travel industry, trends in specialty travel and new
product demand;
2) The meaning of tour operator, travel agent, inbound and outbound trade
3) Different organizations that is affiliated to tour operations
Its aim is to provide a few tips to lead to a more understanding and it successful
business in the future.
The travel industry is highly structured, and businesses within the industry tend to
specialize in one or a small number of functions driven by their core business.
Understanding the structure of the travel trade is important for a company in developing
its core business strategy, making marketing decisions, and investing for growth.
The structure of the travel trade is largely driven by how consumers travel and how they
identify and select the travel services they purchase. As we review the most widespread
types of businesses in the travel trade, it is useful to keep in mind some common
distinctions made when describing travel companies and their markets.
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COURSE OUTLINE
COLLEGE OF HOSPITALITY AND TOURISM MANAGEMENT

COURSE MODULE in
TOUR AND TRAVEL MANAGEMENT
This module composed of two areas – MIDTERM and FINALS, and it has 7 Lessons.
Each Lesson has the following:
 Course/Subject
 Introduction
 Learning Objectives
 Lesson Proper
 Self-Progress Activity
 Summary of the Lesson
 Supplementary Materials/Resources
 References
LESSON DETAILS
1. Course/Subject - this section shows the subject focus of the module. (e.g.
Multicultural Diversity in Workplace for Tourism Professionals)
2. Introduction – this section of the lesson will give you a brief description and
details about the course. It will provide you a glimpse of the topics that will be
discuss and an overview about the things that the learners will anticipate from the
beginning until the end of the lesson.
3. Learning Objectives – are brief statements that describe what the learners will
be expected to learn by the end of the lesson. It is focused in KSA or the
Knowledge, Skills, and Attitude.
4. Lesson Proper – this section shows the content of the lesson.
5. Self-Progress Activity – this is the assessment and evaluation section of your

lesson. This section will test you level of understanding about the lesson. It
comprises of Guided Question and Quiz Master. Guided Question focus on
short essay type of answer where you will be asked a certain question related to
the lesson. Quiz Master is more on multiple choice related to the lesson. Each
assessment or evaluation has its own Grading System or Rubrics where you
can see the level of grading per question on the lesson.
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6. Summary of the Lesson – this section shows the consolidation of all important
key indicators or terminologies or phrases in the lesson. This will give you more
emphasis on the main points of the lesson.
7. Supplementary Materials/Resources - this portion will give you the supporting

materials which directly linked to the lesson. It consist of series of links that you
can check online or reading materials to give you more detailed information
about the lesson.
8. Resources – this is the section of the lesson where you can see the sources of
all the lesson that was presented on the lesson.
ABOUT THE MODULE

This module aim to understand the role of travel agency and tour operator in the tourism
industry. The role of each component in offering cost effective and good “value for
money” products fr its client. It covers two module with 7 lessons each. ( Midterm and
Finals).
MIDTERM PERIOD
PERIOD TOPIC/ACTIVITY DURATION

WEEK 1 Orientation
WEEK 2 Philippine Tourism Industry
WEEK 3 Visitors Travel characteristics
and Accommodation
WEEK 4
WEEK 5
Types of Transportation
Travel Management
3 Hours
Companies and Travel
Agency
WEEK 6 Tourism Marketing
WEEK 7 Markets and Destination
WEEK 8 The Internet and E-Travel
Commerce
For you to understand the Module, You need to do the Following:
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1) To start in the module, you have to start reading the course outline for course
orientation and the coverage of the module. These tell you what should know and
be able to do at the end of the module.
2) After reading the course outline, you have to start the Module 1 – Midterm Period
which composed of 7 Lessons.
3) Each lesson has the outline which was discussed at the first part of the outline.
You have the Learning Objectives, Introduction, Lesson Proper, Self-
Progress Activity, and References as major key points to focus on each
lesson.
4) There are lists of pre-tests before the lesson to assess your basic understanding
about the lesson. It’s like a brainstorming or ice breaker portion in face to face
set-up.
5) Read thoroughly the Topic as it shows the content of the lesson. The content of
the lesson is direct to the point and understandable as a learner.
6) Do the required Assessment and Evaluation at Self-Progress Test. There are

various exercises applicable for modular, synchronous and asynchronous set-up.
Consult the teacher for further elaboration. It is composed also of grading system
or the Rubrics where you can see how you will be assess based on your
outcome.
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LESSON 1
TOURISM BUSINESS: THE PHILIPPINE TOURISM INDUSTRY
Introduction
The travel industry is highly structured, and businesses within the industry tend to
specialize in one or a small number of functions driven by their core business.
Understanding the structure of the travel trade is important for a company in developing
its core business strategy, making marketing decisions, and investing for growth. The
structure of the travel trade is largely driven by how consumers travel and how they
identify and select the travel services they purchase. Tourism comprises the activities of
persons travelling to and staying in places outside their usual environment for not more
than one consecutive year for leisure, business and other purposes not related to the
exercise of an activity remunerated from within the place visited.
Running a tourism business, as you all know, is complex. It is not possible to include
within this publication everything that a tourism director or manager needs to know. It is
not designed to be an introduction to the global tourism industry. Nor is it designed for
those tour operators and travel agents involved in domestic and outbound tourism,
although some of the contents may be relevant. Its aim is to provide a few tips to lead to
a more successful business
Learning Objectives:
At the end of the lesson, the learners should be able to
LO 1: Define tourism and its function

LO 2: Explain the role of various subsectors that comprise the tourism industry
LO 3: Identify the specific entities and explain their specific function in the tourism
industry
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Lesson Proper
What is Tourism?
Tourism involves the activities of people travelling and staying in a place away from
their home environment for leisure, business or other purposes.
Mathieson and Wall (1982) define tourism as follows:
"The temporary movement of people to destinations outside their usual places of work
and residence, the activities undertaken during their stay in those destinations, and the
facilities created to cater to their needs."
The Tourism Business
The role of the tour operator is to essentially sell accommodation, transport, activities
and transfers in a combined all-inclusive package. The Tour operators’ product is
different to that sold by other businesses in many ways and understanding this will go a
long way to being successful.
1. What you are selling is an intangible product that must be bought blind because it
cannot be seen, touched or experienced by the consumer before use. Instead, tour
operators prepare brochures which represent their products in words and pictures.
These brochures cannot accurately give an impression of how any one particular client
will experience the product, so sellers are often described as selling dreams. Buying a
holiday is like buying a bar of chocolate; only memories are left after the product is
consumed.
2. You are selling a discretionary product, meaning that the clients do not have to buy it
in the same way that they do food or fuel. When finances are tight or during a recession,
they may choose to spend their money that would have gone on a holiday on other
consumer durables such as a compact disc player or new washing machine.
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3. It is not a heterogeneous product. You could buy a refrigerator like your neighbours’
and expect it to look identical and operate in exactly the same way, but holidays are by
their very nature varied. Anyone coming to a particular country on a food and wine tour
will have a different experience whether they come in July or October, even if they went
with the same operator, stayed in the same hotels and ate at the same restaurants.
4. It is a perishable product. Holidays are only saleable up to the date of the flight
departures, especially if you organize fixed date trips.
5. Package holidays suffer from inseparability. The behaviour of everyone involved in

the product, from the hotel porter to the vehicle driver can have an effect on the
outcome of the experience. If we purchase a washing machine, our enjoyment of the
product will not be reduced by an irritating plumber who installs it.
The Philippine Tourism Industry
The tourism industry is recognized by the government as an important contributor to the

generation of foreign exchange earnings, investments, revenue, employment and to the
growth of the country’s output. The inclusion of tourism as a major pillar in the Medium
Term Philippine Development Plan (MTPDP) has given priority to the tourism sector
by promoting the Philippines as a premier tourist destination and investment site. If
developed in a sustainable manner, indeed it can be a powerful economic growth
engine for the country. It deserves to be a top priority for national development because
of the following reasons:
 It is a powerful and efficient industry;
 Its impact on social development are broad and deep;
 It creates strong peripheral benefits;
 The Philippines can compete and win; and
 It helps maintains cultural integrity, essential ecological processes,
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biological diversity and life support systems.
The industry is powerful and efficient because:

 It is global in size;
 It has a strong potential for growth;
 It can accommodate large levels of investments
 It has a very high value retention rate, i.e., relatively low import
component;
 It generates direct and indirect jobs;
 It generates huge foreign exchange movements; and
 It can be developed quickly;
Its impacts on social development are broad and deep because:

 It is both labor and capital intensive;
 It promotes skills and vocational development that can be exported; and
 It promotes a ‘culture of tourism’ through a safer and cleaner
environment that benefits not only tourists but also the entire
community.
The Philippines can compete and win in developing its tourism sector
because:
 It possesses ‘timeless’ competitive advantage of proximity to North-East
Asia, especially China, Japan, and Korea, and it has also world class
natural attractions;
 It is relatively free of restrictions unlike the other sectors of the economy;
and
 It can create sizeable niche markets.
To harness growth in the tourism industry, focus, execution and coordinated
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leadership against priority tourist markets and destinations are required.
State of Tourism in the Philippines
Given the stable social and political environment, the government continues to
intensify its marketing efforts in collaboration with the various sectors to attain its visitor
targets.
Over the years tourism has been a top foreign exchange generator. Tourism
investments endorsed by the Department to concerned agencies (i.e. Board of
Investments, Philippine Economic Zone Authority, and LTFRB) reached over Php 11.94
Billion in 2005 with projects in land transport and hotel development. While a total of
Php 93.76 Billion in tourism accommodation projects in 2006 and Php 17.34 Billion for
the first half of 2007 were recorded. These figures, however, could easily go higher if we
include investment projects that did not go through the Department of Tourism for
endorsement purposes.
Among the largest tourism investments over the past few years were the Php
3.984 billion Hyatt Hotel and Casino Manila located along Pedro Gil Street in Malate,
the Php 1.637 billion Hilton Cebu Resort and Towers in Mactan Island, Lapu-Lapu City;
the Php 1.348 billion Eastbay Resorts Inc. at East Ridge Golf Club in Binangonan,
Rizal; the Php 1.008 billion Manila Ocean Park at Rizal Park, Manila; and the Php 1
billion modernization of the Island Cove Resort and Leisure Park in Kawit, Cavite.
New investments in tourism-related facilities and the expected increase in tourist

arrivals would generate thousands of new jobs for Filipinos. By and large, the tourism
industry continues to be a major contributor to the growth of the Philippine economy.
The anticipated growth in international visitor arrivals and domestic travel

movements is expected to bring about a corresponding increase in capacity
requirements and demand for new products, facilities and services, thus paving the way
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for local and foreign investment opportunities. Corollary to this is the improvement and
upgrading of quality, skills and competencies of the required frontliners.
The need for improved accessibility will likewise open investment opportunities in
air, water and land transport operations. In response to worldwide demand for
integrated tourism development, the Department of Tourism likewise encourages
investments in tourism estates and ecozones, historico-cultural heritage projects as well
as ecotourism, agritourism, and health and wellness projects.
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GOVERNMENT AND PRIVATE SECTORS
The tourism industry is a composite of industries and entities, both public and private,
involved in planning, development, marketing, sales, operation and evaluation of
destinations, products and services that cater to the needs of the travelers, both foreign
and domestic.
DUTIES & RESPONSIBILITIES PRIVATE GOVT./PUBLIC
SECTOR SECTOR
Planning & development of destinations 
Planing development of specific tour product 
Marketing of various destinations 
Marketing & sale of specific products and 
services
The operation of tour products 
Delivery of tourism services  
Undertake evaluation of tourism results vis-à-vis  
predetermined, specific objective
The tourism industry caters to the needs of both foreign and domestic travelers.
The chart below best illustrates the landscape of the tourism industry.
THE GOVERNMENT SECTOR THE PRIVATE SECTOR
Department of Tourism Transportation Companies
Tourism Promotions Board (TPB) Hostelry Industry
(Formerly: Philippine Convention & Visitors Corp.)
Philippine Tourism Authority Entertainment Industry
Duty Free Philippines The Travel Trade
Intramuros Administration Other Private Sectors
National Parks Development Committee (NPDC)
Nayong Pilipino
Local Government Units
Othet National Govt. Units
THE GOVERNMENT SECTOR
 Is responsible for the formulation of tourism policies.
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 It provides guidelines for the development of destinations, and regulates the
industry in collaboration with other governmenr agencies.
 There are eight (8) government agencies that are directly involved in tourism
industry:
1. Department of Tourism (DOT)
2. Tourism Promotions Board (TPB) (Formerly: Philippine Convention &
Visitors Corp.)
3. Phil. Tourism Authority (PTA)
4. Duty Free Philippines
5. Intramuros Administration
6. National Parks Development Committee (NPDC)
7. Nayong Pilipino
8. Municipal, City & Provincial Government Units (LGUs)
Department of Tourism
 Was established by virtue of PD No. 189 in 1973

 Was recognized into its present set up by EO No. 120 in
accordance with Article III of the Freesom Constitution of
1986
 Is the national government’s organization overseeing the
countyrs tourism industry
 It is headed by secretary with cabinet rank
Primary obligations:
1. To assist in coordinating the plans and actions of the various government
instrumentalities in tourism matters;
2. To discharge the government’s responsibilities arising from treaties, agreements and
other commitments on tourism and travel;
3. To provide such other public sector services to the tourism industry as well as the
formulation of standards and the compilation of statistics in tourism matters.
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TOURISM PROMOTIONS BOARD (TPB)
(formerly Philippine Convention and Visitors Corporation)
The Tourism Promotions Board is an attached agency of the Department of

Tourism (DOT) which is primarily responsible for implementing an integrated domestic
and international promotions and marketing program for the Philippines as a tourism
destination as well as for tourism investments.
 Under PD No. 867, promulgated in 1976, created the PCB (gov’t agency)
 Transformed into a non-profit corporation by PD No. 1448
 Is the marketing arm of the Department of Tourism
 Its main task is to promote the Philippines as a tourist and convention and
incentive travel destination
 Made up of three (3) distinct divisions:
1. Travel Trade Division- undertakes marketing activities to promote the
Philippines as a tourist destination among travel agents, tour
operators and other travel related institutions.
2. Conventions and Incentive Travel Division- focuses marketing
activities on event planners, meeting organizers and other
entities that provide travel incentives to their constituents.
3. Corporate Affairs Division- provides support services to the
management and marketing units of the TPB
 In collaboration with the DOT also coordinates with and provides assistance to
tourism associations, Local Government Units (LGUs), local tourism
councils (TC) and non-government organizations (NGO) with respect to
tourism marketing and promotions.
 Is committed to position the Philippines as a major tourist and convention

destination in Asia and is tasked, as the lead agency, to plan and implement the
country’s tourism marketing efforts.
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 Works with the private sector in the planning and implementation of its marketing
activities. It undertakes joint promotional activities with the travel trade, especially
in the areas of advertising, invitational programs and collateral production. Sales
missions and participation in trade and consumer fairs are likewise undertaken
jointly with members of the local travel trade.
 Provides its products and services to local and foreign consumers either directly
or thru the Travel Trade and Media. It also recognizes its responsibility to other
government agencies and those agencies attached to the Department of Tourism
in the delivery and servicing of their tourism marketing requirements.
 Supports socio-cultural oriented projects that help increase employment, promote

environmental consciousness, heighten cultural awareness and deepen society’s
appreciation of tourism as an instrument for national development. PCVC,
likewise, recognizes its responsibility to the global tourism community.
TOURISM INFRASTRUCTURE AND ENTERPRISE ZONE AUTHORITY (TIEZA)
(Formerly PHILIPPINE TOURISM AUTHORITY (PTA)
 The Tourism Infrastructure & Enterprise Zone Authority (TIEZA) was

created by virtue of Republic Act No. 9593 dated May 12, 2009, otherwise
known as Tourism Act of 2009, replacing the Philippine Tourism Authority.
 The TIEZA shall be attached to the Department of Tourism under the supervision
of the Secretary alongside with the Tourism Promotions Board (formerly PCVC),
Duty-Free Phils. Corp., Intramuros Administration, Nayong Pilipino Foundation,
National Parks Development Committee, Phil. Commission on Sports Scuba
Diving and the Phil. Retirement Authority.
 Mandated to implement policies and programs of the department pertaining to

the development, promotion, and supervision of tourism projects in the
Philippines.
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Duty Free Philippines (DFP)
 Is a world-class travel retailer providing local and

international travelers an efficient and service
oriented environment for their shopping needs and
pleasure. Showcasing not only prestigious brands
and high-quality international brands, DFP also
remained committed to showcasing not only Filipino
products but Filipino traits of warmth and hospitality
as well.
Intramuros Administration
 Is an attached agency of the Department of Tourism that was created in pursuant

to the Presidential Decree 1616 signed by President Marcos on April 10, 1979,
amended by PD 1748 on December 10, 1980. Its main functions are to restore
Intramuros and promote it as a tourist destination.
The National Parks Development Committee
 Is a government agency that is tasked to oversee national parks in the

Philippines. It was established primarily for the purpose of developing and
maintaining national parks specifically the Rizal Park or Luneta, Paco Park,
the Pook ni Maria Makiling and Burnham Park.
Nayong Pilipino
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 Is the only cultural park in the country that serves as the country's miniature. Its
aim is to provide tourists an idea and view of the country's famous landmarks as
well as a showcase of the rich natural and cultural heritage of the Filipinos
Local Government Units
 Are empowered to regulate the establishment and operation of travel agencies.
Other National Government Units
There are other government offices that directly participate in the tourism
industry. To name a few:
1. DOTC – Dept. of Transportation and Communication

 Which is responsible for the regulation and supervision of the transportation, and
communication industries
2. CAB – Civil Aeronautics Board
 Which regulates economic aspect of air transportation
3. ATO – Air Transportation Office
 Which establishes the minimum safety standards for air carriers
4. MARINA – Maritime Industry Authority
 Which is the policy making agency in maritime safety
5. PPA – Phil. Ports Authority
 Which intergrates and coordinates port planning, development, control and
operations
6. LTFRB – Land Transportation Franchise and Regulatory Board
 Which issues, suspends and cancels cetificate of public convenience of puplic
land transportation services provided by motorized vehicles
7. DPWH – Dept. of Public Works and Highways
 Which oversees of the country’s infrastructure, including roads and bridges
8. DFA – Dept. of Freign Affairs
 Which develops and maintains friendly relations with other countries
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9. DOJ – Dept. of Justice
 together with BOI – Bureau of Immigration regulates the entry and exit of foreign
nationals
10. DOF – Dept. of Finance
 Which is responsible for revenue collections through the Bureau of Internal
Revenue (BIR) and Bureau of Cutoms (BC)
11. DENR – Dept. of Environment and Natural Resource
 Which oversees the protection of the natural environment
12. DILG – Dept. of Interior and Local Govt.
 Which supervises both the Local Govt. Units (LGU)
13. PNP – Phil. National Police
 Which is responsible for peace and order
THE PRIVATE SECTOR
In the private sector, the six (6) principal industries directly involved are:
1. Transportation Industry
2. Hostelry Industry
3. Entertainment Industry
4. The Travel Trade
5. Food and Beverage
6. Other Private Sectors Entities
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The Transportation Industry
 Transportation sector plays the most important role since without travel, there is
no tourism. This sector comprises all entities involved in the transportation of
goods and people from a point of origin to a destination point, or number of
destination points, and back to the point of origin.
The Hospitality Industry
 It includes all the establishments that provide board and lodging to people. These
are the highly sophisticated five-star hotels in the urban centers of the country, or
minute boarding houses in the remotest locations.
Attractions and Activities
 Also referred to as the entertainment, recreation or leisure sector which is best

exemplified by theme parks, shopping malls, night clubs, restaurants and the like.
These also include museums, cultural villages, fast food centers, disco houses,
resorts, casinos, cruise, dinner theaters, spas, fitness clubs, experiences, events
and the like.
 Attraction Industry
a. Natural attractions
b. Manmade attractions
 Activities Industry
a. Shopping – activities involve the retail sector of quality gift and souvenir shops
b. Leisure – special time free from work or duties and gives an opportunities for
recreation and entertainment
c. Recreation – revitalization and relaxation. It aims to relieve stress.
d. Entertainment – is amusement and diversion and aims to relieve stress
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The Travel Trade
 Made up of travel agents and tour operators, and the tour guides.
Food and Beverage (restaurants, disco, travel food service and institutional food
service)
Form of service refers to the way food and beverage is presented to the guests.
 Table service – a host or hostess seats the guests. The servers at the table take
orders, and food and beverage are brought to the table. The servers clear soiled
dishes.
 Buffet service – generally with catered events. The guest must go to the buffet
table for food.
 Banquet table service – it is similar to table service. However the food is

transported from the central kitchen in heated carriers or transported in bulk to a
serving kitchen near the dining area for plating.
 Cafeteria service – it is similar to the buffet. The difference between the two is
that the food is dished out in the cafeteria, while the buffet is self- service. They
also have permanent serving counters. Food courts are considered cafeteria
service.
 Family-style service – it involves bringing various food items in sufficient food

quantities for table of six, twelve or more persons
 Room service – associated with hotels, it involves ordering food from a menu in
the room and having it brought to the room for consumption. In hospitals food is
served during scheduled times.
 Quick counter service – the customer stand at a counter, orders, pays and waits
for the order like in Jollibee and McDonalds.
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 Traditional counter service – the customer sits on a stool at the counter and is
served by a counter person, normally a short-order cook.
 Take-out-service – the "to-go style” wherein customers order and take the food
home.
 Delivery service – prepared food is delivered to the customers’ home. It is also

characterized by “meals-on- wheels” as well as the urban restaurant that delivers
to the neighborhood. Customers may place an order with a delivery service,
which in turn places the order with the restaurant, pick –up the order and delivers
it to the customer.
 Car hop service – customers drive into a restaurant parking lot but remaining
their cars. Orders are called into an intercom or taken directly by the carhop who
goes to the car’s window, then returns with the food, presents the check and
collects payments
 Drive in service – contemporary counterpart of the carhop. Customers place an

order through a microphone then drive forward to a window, pays, and receive
their order. System uses two windows, one for payment and one for receiving
food items.
Other Private Sector Entities
Primarily the members of the media, be it print, broadcast, audio-visual or electronic.

Educational and training institutions are also part of this sector.
 Publishing companies
- Producers of electronic and printed news and advertising
- Data must keep up to date for intelligent counseling and management.
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 ITC service providers
- Produce electronic or printed form, reference manuals, tariffs, guide

books, atlases, time tables and operational handbooks, without these,
no travel organization can function.
 Marketing and public relations organizations
- Assistance in planning a publicity and sales campaign, selecting

media, providing market research, discovering new markets and in the
overall conduct of sales and marketing programs.
 Event organizers
- For meetings, incentives, conventions and exhibitions involved with

tasks as negotiating hotel contracts, negotiating with airlines, writing
contracts, planning meetings, seminars, incentives, budgeting,
promotions, public relations, planning special events and post meeting
hours.
 Miscellaneous services
- Provide essential services for tourism, insurance, hospital and medical

services, police, sanitary trash collection and disposal services,
laundry, construction, communications and drug stores.
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Self-Progress Test/ Activity
Activity 1
Direction: It should be a form of research format; APA format, Arial 12, 1.5 paragraph.
And include references if it’s based on the book, article or in the internet.
• As per Topic, look on the internet and find the function of the following:
1.Transportation Industry
2. Hostelry Industry
3. Entertainment Industry
4. The Travel Trade
5. Food and Beverage

6. Other Private Sectors Entities
And why do you think they considered as principal industries of Private sector.
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Answer to Self-Progress Test/ Comments
• Guide Questions 20 POINTS

• Asynchronous Activity 30 POINTS
TOTAL 50 POINTS
Guide Questions (Short Essay) 20 POINTS
Direction:
o Choose 2 Questions Only
o Answer each question through short essay
o Answer in the 1 sheet of paper or through MS Word
o Each question is equivalent to 10 POINTS. Check the Rubrics below
o Guide Question Rubrics
Rubrics for Short Essay
FEATURES 10 POINTS 8 POINTS 5 POINTS 3 POINTS

SentenceStructure, All sentences are Most sentences Most sentences are Sentences sound
Grammar,Mechanics, & well constructed are well well constructed, awkward, are
Spelling and have varied constructed and but they have a distractingly
structure and have varied similar structure repetitive, or are
length. structure and and/or length. difficult to
length. understand.
Focus & Details Main ideas are Main ideas are Main ideas are The topic and main
clear and are clear but are not somewhat clear. ideas are not clear.
well supported well supported
by detailed and by detailed
accurate information.
information.
1. Assume that you are an investor who wanted to construct a project inside the
country. What government agency will you consider to know the policies and programs
in building your project? Further discuss the said government sector.
2. What is the difference between private sector and government sector? And what are
their duties and responsibilities?
3. Give at least ten (10) reasons why each government sector affiliated with tourism are
important?
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Summary of the Lesson
A business is an organization selling a product or service to a consumer to gain a

benefit from the trade. Travel and Tourism business organizations are formed to
earn profit and increase the personal wealth of the organizations in exchange for
their product and services. In addition to different types of activity in the business,
there are also various forms of business organization, with different legal
characteristics.
The main two type organization in travel and tourism is Private sector and Public
sector. The private sector includes private limited company, partnership, limited
liability partnership, sole proprietor, and franchise. It is involved in inbound,
outbound and domestic tourism industry. However public sector includes
government controlled, local government controlled and membership
organizations.
As above mentioned, in Travel and Tourism industry there are there are two main
type of organization which is important to explain. They are:
 Private sectors
 Public sectors
Private sector
Private companies and organizations produce goods and services to the
consumer with the aim of making profit for the owners and shareholders of the
private enterprise. Christine King (2005) describes private sector as ‘Private
sector businesses are owned by individuals, either as sole traders, partnership or
limited companies. Their main aim is to make a profit to pay the owners or
shareholders who invested their money into the organizations’.
Most of the organizations in the travel and tourism industry is owned and
operated in the private sector. One of the examples is Marriott International, Inc.
Marriott International, Inc is an international hospitality company formed in 1927.
They manage, franchise, own and develop Marriot brand hotels and resorts
around different areas of the world. They are in the private sector and are set up
as a private limited company.
Public sector
Organizations which are run by the government are known as the public sector.
The public sector is a part of the state that deals with the production, ownership,
sale, provision, delivery and allocation of goods and services by and for the
government or its citizens. In travel and tourism public sectors play a vital role
making more aware of publicity with the business environment. It also helps to
promote destinations and provide range of services to encourage tourism
development. One example from the public sector is Air India.
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Supplimentary Readings and Materials
Claravall, Bienvenido G. (2010) Travel Agency and Tour Operations in the Philippines.
Manila: Tourism Enterprises Inc.
Biederman, P. (2008). Travel and Tourism: An Industry Primer. New York:Prentice Hall.
Reference
https://rikachs.wordpress.com/2016/12/19/public-and-private-sector-of-travel-
and-tourism/
https://tourismteacher.com/private-sector-tourism-planning-development/
https://www.tpb.gov.ph/dot-and-its-attached-agencies/
http://www.tourism.gov.ph/
http://philippinesreinvented.blogspot.com/2007/12/dot-attached-agencies.html
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LESSON 2
VISITOR TRAVEL CHARACTERISTICS AND ACCOMMODATIONS
Introduction
Accommodation is a base of tourism industry as it is a vital and fundamental part

of tourism supply. Tourists in their travel require location where they can rest and
revive during their travel. As a result, commercial accommodations are in existence.
There is great diversity in size and type of accommodation in relation to location and
services provided. The services of accommodation facilities vary from each other
based on their targeted customer groups. Increasing environmental awareness of
the global warming to the public is leading them to react on it. Sustainable tourism
development today, is receiving greater attention from international and national
tourism organizations. Now, on the hand, in many countries law requires a certain
standard level in relation to the environmental sustainability before a business can
be opened.
On the other hand, people now are more aware about environment and eco
friendliness than they were before. People are very aware how environment will be
affected by their activities and therefore, as an investor in tourism industry, they want
their investment in the business to be very responsible for the environmental
sustainability. As customers, they demand the environmental policy from the
companies and choose the alternatives in their expense which support their values
and ways of living. As a result businesses now, should show and convince people
how they are taking steps to the environmental sustainability to attract and run their
business.
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At the end of the lesson. The learner should be able to:
LO1: Trace the history of the accommodations or lodging industry

LO2: Be familiar with the different types of accommodations
LO3: Describe the organization of the lodging industry
LO4: Discuss the management methods in the lodging industry
LO5: Define the hotel terminologies
Lesson Proper
The History of the Accommodations or Lodging Industry
 The lodging industry developed because of the need to provide accommodations

for travelers
 The development of the inn in the late medieval period was due to the
improvements in security in many European societies
 During the height of the Industrial Revolution in the 1700’s and early 1500’s there
was a greater demand for accommodations as people migrated to the cities to
work
 The emerging middle class could afford accommodations when travelling away
from home
 The industrial revolution and the development of spas helped the growth of the
hotel industry
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 The inn was used not only as a boarding house but also as a booking office,
waiting place, eating establishment and as the center of the town’s social
activities
 With the rapid development of the railways in the 1820’s and 1830’s a different
kind of hotel developed
 The introduction and development of the automobile industry led to the

destination of the roadside hotel
 With the construction of highways and expressways the lodging industry

responded to the needs of motorist
 After World War II, advances in air transportation led to the increased number of
travelers who demanded more hotel space
 The widespread use of car led hoteliers to build more roadside motels
 Although the hotel industry was booming, several small, family owned hotels
could not compete with the fast growing chains

Types of Accommodation
1. Hotels
 Hotels can be ten-room boarding house or
a building that has a thousand or more
rooms, convention and meeting facilities,
recreation facilities and twenty four hours
room service
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 Hotels have been designed and built to meet almost any kind of budget or
comfort level that the traveling public might want
2. Motels or Motor Hotels

 Motels normally offer rooms only and free parking to guests
 They are often found along busy highways and cater primarily to
transients, cost-conscious travelers
3. Resort Hotels
 Resort hotels are intended for vacation travelers
 They range from budget to luxury and can accommodate family travelers
and even convention delegates
 They are usually located near beaches
 They offer more amenities, shops and recreation opportunities
4. Pensions
 Pensions are found principally in Europe
 They are usually family-owned accommodation facilities
 Pensions usually offer continental breakfast but do not have facilities for
other meals
 They are known for their informal family atmosphere
5. Paradors
 They are generally old castles, convents or monasteries that have been
converted into hotels by the government and are operated by the
government
6. Condominium Hotels
 Condominium hotels are a recent innovation
 They are often hotels with apartments instead of basic rooms
 The condominium units are sold by the hotel developers to individuals who
are given a title to the physical real estate
 The individual owners have the right to stay in their own units during
specific periods of the year with a reduced room rates
7. Campgrounds
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 Camping is a popular form of overnight accommodation in both Europe
and North America
 Campgrounds usually appeal to families who travel in recreational
vehicles
8. Bed and Breakfast
 Bed and breakfast is a form of lodging which originated in Europe
 This form of accommodation provides a bed for the night and breakfast
the next day
9. Tourist Inns
 Lodging establishment that cater to transients
 They do not normally meet the minimum requirements of an economy
hotel
10. Apartment Hotels/Apartels
 Buildings which contain several independent and furnished or semi-
furnished apartments
 They are leased to tourists and travelers on a long term basis and offer
basic services to its tenant, similar to hotels
11. Health Spas
 Are hotels and resorts which cater to people who go to spas or mineral
springs for medical treatment or weight reduction
 At present, several health spas in Europe offer modern techniques such as
medically supervised rejuvenation programs
 Which includes supervised diets and rigorous exercises to shed fat and
reduce weight
12. Private Homes
 The earliest form of overnight lodging for travelers
 It provides lodging to tourists who cannot be accommodated in hotels and
motels during peak vacation periods
13. Hostels
 Provides basic amenities such as a bunk bed and a commonly shared toilet
and bath
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 Hostel appeals primarily to young travelers
Classification of Hotels
There are different ways of classifying hotels, such as location, type of guest and
price
Rating System
 A number of independent rating guides have been published by individuals,

automobile associations and travel organizations using various combinations of
stars, dots and alphabetical indicators
 Most rating systems are based on the quality of the physical structure, furnishing,
maintenance, housekeeping and overall service
1 star = good, better than average Class A = Economy

2 star = very good Class AA = Standard
3 star = excellent Class AAA = First Class
4 star = outstanding
5 star = one of the best in the country
Type of Classification Examples of Classifications
 Under 50 rooms
Size (number of rooms)
 50 to 150 rooms
 150 to 299 rooms
 300 to 600 rooms
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 More than 600 rooms
 Airport hotel
 Casino hotel
Location
 City centre hotel
 Resort hotel
 Economy/limited service
 Luxury service
Level of service
 Mid-level service
Market and function  Airport hotel
 All-inclusive resort
 Bed and breakfast
 Business hotel
 Boutique hotel
 Casino
 Conference centre
 Convention centre
 Extended-stay hotel
 Resort hotel
 Suite hotel
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 Timeshare and
condominium hotel
 Chain with a brand

affiliation
Ownership and affiliation
 Independent
 Accessibility
 Airport
 Beach
 Casino
 City centre
 Childcare
 Fitness club
Amenities
 Golf
 Pool
 Ski
 Spa
 Tennis
 Weddings
Industry standards  AAA Diamond Rating
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 CAA Diamond Rating
 Canada Select Star Rating
 Canadian Star Quality

Accommodation
 Green Key Eco Rating
 Trip Advisor Traveller’s

Choice
 Aloft
 Element
Brand standards (e.g., Starwood Hotels and
 Four Points by Sheraton
Resorts has nine
different brands, each with its own set of Le Méridien
standards)  Sheraton
 St Regis
Organization of the Lodging Industry
 A hotel organization is large and complex

 Each division is run by its own individual head
 The personnel division recruits new employees and administers policies and
employee benefits for the company
 The engineering and maintenance division makes the necessary repairs and
implements the hotel’s energy management program
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 The accounting division handles the financial activities of the operation which
include payment of bills, sending out statements, payroll and compiling monthly
income statement
 The security division provides protection for both employees and guests
 The food and beverage division is responsible for the food and beverages that
are served
 The marketing and sales division is responsible for selling the rooms and food
service; involves in advertising, development of promotional materials and
making direct contacts with the prospective clients
 The room division is responsible for the front desk, telephone, reservations and
housekeeping department
Hotel Terminologies
1. European Plan (EP) – means that there are no meals included in room rates
2. American Plan (AP) – means that breakfast, lunch and dinner are included in
the quoted price that are usually in fixed menu with little or no choice
3. Modified American Plan (MAP) – includes breakfast and dinner but no lunch or
breakfast and lunch but no dinner
4. Continental Breakfast Plan (CBP) – includes light breakfast which consists of

rolls, coffee and sometimes juice
5. Bermuda Plan (BP) – also called as the bed and breakfast which offers bed at
night and breakfast the next morning
Room Rates
 The maximum rates that hotels charge for a room normally depends on the
number of people occupying it
 These rates are called rack rates
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 Hotels offer discounted rates to special classes of people to encourage them to
stay in the hotel
 There are special rates for business travelers, government employees, airline
employees and other similar groups
 For conventions and conferences, hotel competes with one another by offering
the lowest room rate
Self-Progress Test/ Activity
Activity 2
Direction: It should be a form of research format; APA format, Arial 12, 1.5 paragraph.
And include references if it’s based on the book, article or in the internet.
Draw an organizational chart for a 60-room boutique hotel, listing all the staff required to
run the operation. Put the most influential people (e.g., the general manager) at the top
and work your way down.
How would you structure this differently from a larger full-service hotel?
What would you keep the same?
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Answer to Self-Progress Test/ Comments

TOTAL 70 POINTS
Guide Questions (Case Study) 30 POINTS
Direction:
o Answer each question through short essay
Rubrics for Case Study

length. understand.
information.
Case Study: Hotel for Dogs – Philanthropy and Media Coverage
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In 2014, the media was taken by storm with a story about a hotel in North Carolina that
combined philanthropy with their business model. The property expanded on the trend
of allowing dogs in hotels by fostering rescues from a nearby shelter and allowing
guests to adopt them. Guests appreciated the warm interactions with the animals and
several dogs were adopted as a result (Manning, 2014).Not only did the property
provide a valuable service and enhance the guest experience, but the story was
repeated across multiple media outlets, creating publicity for the hotel.
This is an example of a current trend: allowing pets in hotels. Now choose from one of
the following trends, and research it to answer the questions that follow:
 Carbon offset programs

 Customization
 Reputation management
 Digital concierge
 Themed sleep
 Lifestyle food choices
 Educational experiences
 Millennial traveller
 Sharing economy
 Green certified
 Extreme experiences
1. Why do you think this trend has emerged? What market is it helping to serve?
2. Find an example of a hotel that has responded to your chosen trend and explain
how the trend has informed or changed the hotel’s business strategy or practice.
3. Are there any trends that are not listed above that you think should be added?
Try to name at least two. Why are these important accommodation trends today?
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Summary of the lesson
The Hotel and Other Accommodations sector provides lodging or short-term
accommodations for travelers, vacationers, and others. There is a wide range of
establishments in these industries. Some provide lodging only; while others provide
meals, laundry services, and recreational facilities, as well as lodging. Lodging
establishments are classified in this sector even if the provision of complementary
services generates more revenue. The types of complementary services provided vary
from establishment to establishment. This sector is organized into three industry groups:
(1) traveler accommodation,
(2) recreational accommodation, and
(3) rooming and boarding houses.
The Traveler Accommodation industry group includes establishments that primarily

provide traditional types of lodging services. This group includes hotels, motels, and bed
and breakfast inns. In addition to lodging, these establishments may provide a range of
other services to their guests. The RV (Recreational Vehicle) Parks and Recreational
Camps industry group includes establishments that operate lodging facilities primarily
designed to accommodate outdoor enthusiasts. Included are travel trailer campsites,
recreational vehicle parks, and outdoor adventure retreats. The Rooming and Boarding
Houses industry group includes establishments providing temporary or longer-term
accommodations, which for the period of occupancy, may serve as a principal
residence. Board (i.e., meals) may be provided but is not essential. Establishments that
manage short-stay accommodation establishments (e.g., hotels and motels) on a
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contractual basis are classified in this sector if they both manage the operation and
provide the operating staff. Such establishments are classified based on the type of
facility managed and operated.
Supplementary Readings/Materials
Crandell, C., Dickinson, K., & Kanter, G. I. (2004). Negotiating the hotel management
contract. In Hotel Asset Management: Principles & Practices. East Lansing, MI:
University of Denver and American Hotel & Lodging Educational Institute.
Guptha S.P.(2008). Statistical Methods. 37th Revised Edition, New Delhi: Sulthan
Chand & Sons. Hotel classification - Principles and Practice, (2002),Sterling Publishers
Pvt. Ltd, pp 354.
Reference
https://opentextbc.ca/introtourism/chapter/chapter-3-accommodation/
http://oer.nios.ac.in/wiki/index.php/Tourist_Accommodation
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LESSON 3
TYPES OF TRANSPORTATION
Introduction
Mobility has always been a fundamental component of the economic and social life of
societies. Contemporary economic processes have been accompanied by a significant
increase in mobility and higher levels of accessibility. A historical perspective on the
evolution of transport systems underlines the impacts of technological innovations and
how improvements in transportation were interdependent with economic, social, and
spatial changes. The current transport systems are thus the outcome of a long historical
evolution marked by periods of rapid changes where new transport technologies were
adopted. Following the industrial revolution in the 19th century, transportation systems
were mechanized with the development of steam engine technology, which permitted
the setting of networks servicing regions. This process was further expanded in the 20th
century with the setting of global air transport, container shipping, and
telecommunication networks. However, this requires the capacity to manage, support,
and expand the mobility of passengers and freight as well as their underlying
information flows. Societies have become increasingly dependent on their transport
systems to support a wide variety of activities ranging, among others, from commuting,
tourism, supplying energy needs, to distributing parts and final goods. Developing
transport systems has been a continuous challenge to satisfy mobility needs, to support
economic development, and to participate in the global economy.
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At the end of the Lesson, the learner should be able to
Lo1: Identify different modes of transportation and the vehicles used for each mode.
Lo2: Learn about the uniqueness and similarity of the different vehicles.
Transportation Modes
Transportation modes are essential components of transport systems since they are the
means by which mobility is supported. Modes can be grouped into three broad
categories based on the medium they exploit: land, water, and air. Each mode has its
own requirements and features and is adapted to serve the specific demands of freight
and passenger traffic. This gives rise to marked differences in the ways the modes are
deployed and utilized in different parts of the world. More recently, there is a trend
towards integrating the modes through intermodality and linking the modes ever more
closely into production and distribution activities. At the same time, however, passenger
and freight activity is becoming increasingly separated across most modes.
Transportation Modes, Modal Competition and Modal Shift
Transport modes are the means by which passengers and freight achieve mobility.
They are mobile transport assets and fall into three basic types; land (road, rail, and
pipelines), water (shipping), and air.- Dr. Jean-Paul Rodrigue
1. A Diversity of Modes
Transport modes are designed to either carry passengers or freight, but most modes

can carry a combination of both. For instance, an automobile has a capacity to carry
some freight while a passenger plane has a bellyhold that is used for luggage and
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cargo. Each mode is characterized by a set of technical, operational, and commercial
characteristics. Technical characteristics relate to attributes such as speed, capacity,
and motive technology, while operational characteristics involve the context in which
modes operated, including speed limits, safety conditions, or operating hours. The
demand for transport and the ownership of modes are dominant commercial
characteristics.
To support their mobility passengers have

several modal options depending on the
type of movement (e.g. commuting,
traveling), the concerned distance and
modal availability. They fall into four
general categories:
 Air. Air transport services usually

comes as scheduled services offered by
competing air carriers, each within their
respective networks. Based upon
scheduled services posted several months
in advance, a traveler (or someone acting on his/her behalf) will be able to book an
itinerary that may include several flight segments. Charter air services are usually
offered under specific circumstances such as seasonal flights towards resort areas or
private jets servicing the mobility needs of a corporation or an individual. They tend to
be point to point services.
 Road. Offers a range of motorized and non-motorized options for short distance
movements that a user may opt for depending on affordability, convenience, availability
and comfort. The automobile has emerged as a preferred form of passenger
transportation as it offers flexibility and convenience, but also contributes to congestion,
particularly in urban areas.
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 Rail. Intercity passenger services that have been active in many parts of the
world for a century and a half are being expanded by the setting of high speed
rail (HSR) services between high density city-pairs. Another salient form of rail services
concern urban transit systems that rely on specific applications of rail technology.
Subway systems are those supporting the densest forms of mobility in large
metropolitan areas. Such systems are usually supported by commuter rail linking a
central station to a network of satellite cities. Light rail transit (LRT) systems are also set
in lower density situations.
 Maritime. The role of maritime transportation to move passengers has
substantially declined but remains important for ferry services. The cruise ship is not
used as a form of transportation but as a touristic option between a network of ports of
call.
To support the mobility of freight

several modal options are available
depending on what is being
transported, the concerned
distance and modal availability.
Freight modal options are more
diversified than passengers
considering the variety of cargoes
which includes raw materials,
parts, finished goods and also food
(perishable) products. Unlike
passengers, different types of
cargoes often require different conveyances which precludes uniformity.
 Air. Air freight has seen a growth similar to that of passengers, which has
been significant. Air packages are generally carried in unit load devices, either on
dedicated freight planes (freighters) or in the bellyhold of scheduled passenger flights.
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Heavy loads, such as vehicles, require specialized cargo planes and are commonly
used by the military and for emergency deliveries.
 Truck. Trucks are highly flexible vehicles able to carry almost every type of cargo
over short to medium distances. Package trucks are commonly used in urban freight
distribution since they carry a variety of cargo (in boxes or pallets) servicing a fluctuating
demand. Less than truckload (LTL) carriers usually consolidate and deconsolidate loads
coming from different customers, which is common in the parcel carrying business.
Truckload (TL) transportation carries large volumes that have been broken down into
the largest possible truck load unit; several truckloads are required to fulfill an order.
The variety of modal options is related to the technical requirements to carry specific
cargoes such as bulk, liquids or containers. Trucks using chassis are able to carry
domestic (usually 53 feet in North America) and ISO containers (20 and 40 feet).
 Rail. A unit train carries the same cargo between one origin and one destination,
with several carload configurations possible depending what is being carried. There can
be unit trains for coal, grain, cars or containers; they carry a single commodity. Trains
can also be assembled with different carloads servicing different customers, origins and
destinations. This is however more costly and time consuming. Containerization had
significant impacts on rail transportation and spurred the development of intermodal rail
services. The first concerns trailers on flatcars (TOFC) where a complete truckload is
loaded on purposely designed flatcar (“RoadRailers” are an adaptation of this principle).
Such modal use has however declined substantially. The second involves
carrying domestic containers on well cars that are also designed to carry ISO
containers. Unit train are common for the transport of containers between large
gateways and inland centers.
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 Maritime. Through the application of the principle of economies of scale maritime
shipping has developed specialized ships to carry break bulk, dry bulk, liquids, vehicles
(RoRo) and even liquid natural gas. Container shipping has also become a dominant
maritime modal option supporting commercial transactions with multiple origins,
destinations and cargo owners. The standard ISO containers of 20 and 40 feet are the
main unit sizes, which has been adapted to carry refrigerated goods (reefers) and even
liquids (tank containers). Still, the dry maritime container is the most dominant container
cargo unit.
 Inland / Coastal. Inland (fluvial) or coastal maritime services are prevalent where
there are major river systems reaching deep inside a continent (e.g. Mississippi,
Rhine/Danube, Changjiang, Amazon), where a country is an archipelago (e.g. Japan,
Indonesia, Philippines) or with long coastlines (e.g. Northern Europe / Baltic,
Mediterranean, American East, Gulf and West coasts). In some cases river / sea ships
have been designed to link fluvial ports that are separated by an oceanic mass, such as
in Western Europe (e.g. Germany / England). Barges designed to carry specific
commodities (e.g. grain or coal) can be towed along rivers or coasts. Containerization
has also incited the design of specialized container barges that carry container between
major coastal ports and inland destinations.
 Pipelines. Represent a completely separate system of freight distribution where

liquids (particularly oil) and gases can be pumped over long distances. Pipelines can
also be used to carry small quantities of freight, namely through pneumatic tubes (e.g.
documents). A few systems using pneumatic tubes to collect wastes have also been
implemented.
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A. Road transportation
Road infrastructures are large consumers of space with the lowest level of physical
constraints among transportation modes. However, physiographical constraints are
significant in road construction with substantial additional costs to overcome features
such as rivers or rugged terrain. While historically road transportation was developed to
support non-motorized forms of transportation (walking, domestic animals, and cycling
at the end of the 19th century), it is motorization that has shaped the most its
development since the beginning of the 20th century.
b. Rail transportation and pipelines
Railways are composed of a traced path on which wheeled vehicles are bound. In light
of recent technological developments, rail transportation also includes monorails and
maglev. They have an average level of physical constraints, and a low gradient is
required, particularly for freight. Heavy industries are traditionally linked with rail
transport systems, although containerization has improved the flexibility of rail
transportation by linking it with road and maritime modes. Rail is by far the land
transportation mode offering the highest capacity with a 23,000 tons fully loaded coal
unit train being the heaviest load ever carried. Gauges, however, vary around the world,
often challenging the integration of rail systems.
Pipeline routes are practically unlimited as they can be laid on land or underwater. Their
purpose is to move liquids such as petroleum products over long distances in a cost-
effective fashion. The longest gas pipeline links Alberta to Sarnia (Canada), which is
2,911 km in length. The longest oil pipeline is the Transiberian, extending over 9,344 km
from the Russian arctic oilfields in eastern Siberia to Western Europe. Physical
constraints are low and include the landscape and pergelisol in arctic environments.
Pipeline construction costs vary according to the diameter and increase proportionally
with the distance and with the viscosity of fluids (from low viscosity gas to high viscosity
oil). The Trans Alaskan pipeline, which is 1,300 km long, was built under challenging
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conditions and had to be above ground for most of its path. Pipeline terminals are
essential since they correspond to refineries and harbors.
World Main Network System

World Rail Network and Rail System
Major Oil Pipeline
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c. Maritime transportation
With physical properties such as buoyancy and limited friction, maritime transportation
is the most effective mode to move large quantities of cargo over long distances. Main
maritime routes are composed of oceans, coasts, seas, lakes, rivers, and channels.
However, due to the location of economic activities, maritime circulation takes place on
specific parts of the maritime space, particularly over the North Atlantic and the North
Pacific. The construction of channels, locks, and dredging are attempting to facilitate
maritime circulation by reducing its discontinuity, but such endeavors are highly
expensive. Comprehensive inland waterway systems include Western Europe, the
Volga / Don system, the St. Lawrence / Great Lakes system, the Mississippi and its
tributaries, the Amazon, the Panama / Paraguay, and the interior of China.
Maritime transportation has high terminal costs since port infrastructures are among the
most expensive to build, maintain, and operate. These high costs also relate to maritime
shipping, where the construction, operation, and maintenance of ships is capital
intensive. More than any other mode, maritime transportation is linked to heavy
industries, such as steel and petrochemical facilities adjacent to port sites. Yet, with
containerization, maritime shipping has become the linchpin of globalization, allowing
trading a wide range of goods and commodities.
d. Air transportation
Air routes are practically unlimited, but they are denser over the North Atlantic, inside
North America and Europe and over the North Pacific. Air transport constraints are
multidimensional and include the site (a commercial plane needs about 3,300 meters of
runway for landing and take-off), the climate, fog, and aerial currents. Air activities are
linked to the tertiary and quaternary sectors, notably finance and tourism, which lean on
the long-distance mobility of people. More recently, air transportation has been
accommodating growing quantities of high-value freight and is playing an increasing
role in global logistics.
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e. Intermodal transportation
Intermodalism concerns a variety of modes used in combination so that the respective

advantages of each mode are advantaged. Although intermodal transportation applies
for passenger movements, such as the usage of the different, interconnected modes of
a public transit system, it is over freight transportation that the most significant impacts
of intermodalism have been observed. Containerization has been a powerful vector of
intermodal integration, enabling maritime and land transportation systems to
interconnect.
Self Progress Test/Activity
Activity 3:
Search and create a timeline on how Land,Air,and Sea transportation evolve through
time.
Find at least two cases that shows how these modes of transportation adopt to
changes.
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Answer to Self Progress Test/ Comments

TOTAL 60 POINTS
Guide Questions (Essay) 30 POINTS
Direction:
o Answer each questions through short essay

Rubrics for Short Essay

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length. understand.
information.
Explain how air transportation, land transportation and maritime transportation affect
this impact:
 Economic
 Socio-cultural
 Environmental
Mode of transport is a term used to distinguish between different ways of

transportation or transporting people or goods. The different modes of transport
are air, water, and land transport, which includes Rails or railways, road and off-
road transport. Other modes also exist, including pipelines, cable transport,
and space transport. Human-powered transport and animal-powered
transport are sometimes regarded as their own mode, but never fall into the other
categories. In general, transportation is used for moving of people, animals, and
other goods from one place to another. The means of transport, on the other
hand, refers to the (motorized) vehicles necessary for transport according to the
chosen mode (car, airplane, ship, truck and rail). Each mode of transport has a
fundamentally different technological solution, and some require a separate
environment. Each mode has its own infrastructure, vehicles, and operations.
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Supplimentary Reading/Materials
BTS [Bureau of Transportation Statistics] (2006) America on the Go: Long Distance
Transportation Patterns: Mode Choice.
Donovan, A. (2000) “Intermodal Transportation in Historical Perspective”, Transportation

Law Journal, Vol. 27, No. 3, pp 317-344.
Sultana, S. and J. Weber (eds) (2017) Minicars, Maglevs, and Mopeds: Modern Modes of
Transportation around the World, Santa Barbara, CA: ABC-CLIO.
Taaffe, E., H.L. Gauthier and M.E. O’Kelly (1998) Geography of Transportation, 2nd
Edition, Upper Saddle River, NJ: Prentice Hall.
Reference
https://transportgeography.org/?page_id=1731
https://blog.mihlfeld.com/the-6-modes-of-transportation
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LESSON 4
TOUR OPERATORS AND TRAVEL AGENT
Introduction
Any travel agency that desires to expand its scope of service will undoubtedly
branch out to tour packaging and the operation of tours-whether outbound, inbound,
domestic or local tours.
In the Philippines, Tours Operators are travel agent who expands their product
range by setting up a tour department. This department is tasked to assemble the
various travel components into a tour package, and sell the resulting package as
one product. It develops and assemble well-made tour package that are offered to
the travelers through other travel agencies.
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In order to make these packages attractive, a tour operator’s product
development section is constantly on the lookout for new destinations, attractions
and activities. It also conducts research on the travel trends of the market and often
consults the travel agents for relevant in-puts.
As an assembler of service, a tour operator acts as middlemen. It contracts

transportation services, such as airlines, bus/car operators, shipping lines, hotels for
lodging and meals, restaurants and night clubs for entertainment and tour guides.
A tour operator contracts the separate travel components of transportation,

accommodations and other services and combines these into a single tour package.
At the end of lesson, the learner should be able to:
LO1:Differentiate travel operators and travels agents

LO2:Explain the meaning of trave components and its important
LO3: Identify the product and service offered in tour operation
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Five (5) basic differences between travel agents and tour operators:
TRAVEL AGENTS TOUR OPERATORS
1. Retailers 1. Wholesaler
2. Act as counselor to traveler 2. Act as the middlemen of suppliers
3. Have fixed income 3. Have limited income
4. Charge fees for ancillary services 4. Sell optional tours, excursions
5. Are limited to direct dealings 5. Can, but should not by-pass the
retailers
Travel Component
Air, Sea and Land Hotels, Resorts

lodging and other
establishments Transportation
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Tour
Operator
Restaurants, Clubs, Tour guides and
Shopping Malls and service personnel
other Entertainment
entities
A tour operator has three (3) main functions:
1. Plans and develop tour package that meets the needs of the various markets.
2. Assembles the various travel components as an integral part of component of a
single tour package.
3. Delivers the tour package by operating worry-fee and secured programs and/or
itineraries that are cheaper than when each service is purchased individually.
PRODUCTS AND SERVICES OFFERED IN TOUR OPERATION
The Industry
It is quite accurate to refer to tourism and travel as an “industry”, because it produces

markets and provides ‘products’.
However, many different business activities are involved in this industry, some of which
might at first sight appear to operate independently of others. In reality, different types
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of activities depend upon each other for success, and they must be coordinated and
must operate in harmony in order to provide the full ‘tourist product’. For example
o Transport (both international and local) is essential to tourism.
o Accommodation and catering of different kinds and standards are vital.
o Both small and large scale entertainment and sporting facilities need to be
provided.
o Leisure and holiday centers, sports resorts, sea cruises, fly-drive holidays, coach
and motoring and walking holidays are organized and run by many different
businesses, some small and some very large.
o There are individuals and businesses engaged in promoting, marketing and

selling the tourist products: tour operators, advertising and publicity specialists,
printers and, of course, the “retailers”- the travel agencies;
o In addition, many ‘support’ or ‘ancillary services’, such as guide or courier

facilities, travel insurance, foreign exchange, travelers cheques and credit
facilities, are required to ensure full “customer satisfaction” with the actual tourist
products provided.
Not every type of business within the tourism/travel industry is necessarily

involved in every tourist product, of course; but generally a number of quite different
ones are. And it is essential that they “mesh” smoothly together, to ensure a trouble-
free holiday/vacation.
In very many instances the client - the tourist - should not even be aware that the
holiday/vacation involves numerous distinct business activities; he or she might have
purchased the product as a ‘package’. That might include transport, accommodation,
catering, entertainment, sporting activities, etc. Nevertheless, separate activities are
involved, and it requires considerable skill and experience and good “behind the
scenes” organization to ensure that they are efficiently coordinated.
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The Product
It is essential that all professionals who are engaged in the tourism and travel
industry remember always that the product which they are marketing is ‘intangible’. By
this term we mean that it is nonmaterial and cannot be seen, felt, tasted, heard or smelt.
That is, it cannot be inspected, sampled or tested in advance by prospective purchasers
as so many “tangible” products can: for example, refrigerators, clothing, foodstuffs,
radios, perfumes.
A tourism product is essentially a ‘SERVICE’, which is itself made up of a variety

of different services. And, being intangible: it cannot be measured, tested or verified in
advance of the purchase of it by a client; remember that only the RESULTS of the
service provided can be “experienced”; that is, seen and/or felt.
Some components of the tourist product are, to be sure, “physical” and tangible - such
as accommodation, meals, vehicles, etc. But they are also really services and they only
add to - or detract from, if inferior - the feelings of pleasure, enjoyment, comfort, etc,
which are what the client pays for.
Because of the huge diversity of travelers and their motives for travelling, there is
no one “standard” tourism product; and although many incorporate similar features,
there are usually many different products between which clients can choose, to suit their
requirements, expectations and pockets. And, of course, different categories of travelers
(tourists, business travelers and excursionists) are interested in quite different products.
PRODUCTS AND SERVICES OFFERED BY THE TRAVEL AGENCIES
A. Documentations
B. Travel Information
C. Flight Reservation
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D. Hotel Accommodation
E. Railroad and Motorcoach travel
F. Car Rentals
G. Cruises and Other Maritime Products
H. M.I.C.E. Travel
I. Ad Hoc Travel
J. Miscellaneous (Insurance)
K. Tour Packages
A. DOCUMENTATION
Documentation – it refers to the process of legally securing the necessary travel

papers for perspective passengers.
THESE ARE DIVIDED AS FOLLOWS:
 Documents required for leaving the country of origin;
 Documents required for transit countries ;
 Documents required for entry to, and exit from, the destination country;
 Documents required for re-entry to the country of origin
Liaison or documentation officer – provide assistance in securing travel documents and

authentication of these
RESPONSIBILITIES OF A LIAISON OR DOCUMENT OFFICER
 Check the authenticity of all public documents submitted
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 Insures that the documents filed are release on time
 Determines what visas and another documents are required for travel
 Checks all relevant support papers for travel documents application
 Arranges and coordinates appointments and visits to the various consulates and
government offices.
THE TRAVEL DOCUMENTS CAN BE DIVIDED AS FOLLOWS:
1. Passports
2. Visas
3. BI clearance
4. Other documents
 Arranges and coordinates appointments and visits to the various consulates and
government offices
A LIAISON OR DOCUMENTATION OFFICER MUST ALSO PRESENT THE

FOLLOWING DOCUMENTS BEFORE BEING ABLE TO TRANSACT BUSINESS WITH
THE DEPT. OF FOREIGN AFFAIRS AND/OR THE BUREAU OF IMMIGRATION:
1. A letter of request from the President or General Manager of the travel agency.
2. A duly accomplished information sheet of President or General Manager with a

specimen signature and personal data sheet of the Liaison Officer, and three 2”x2”
pictures.
3. The Liaison Officer’s latest NBI clearance.
4. A copy of the travel agency’s license and the liaison’s officer’s ID issued by the
licensing section of the LGU where the agency is located.
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5. A copy of the Certification of Accreditation from the Department of Tourism. If the
agency is not DOT accredited, a certification from the national travel association that the
agency is a member in good standing will suffice.
6. A complete list of travel agency’s staff members with corresponding designations.
7. If the agency is a new applicant, present a certified true copy of the Articles of
Incorporation and Amendments, if any.
8. In case a liaison officer is replaced for whatever reason, submit a Cancellation Letter
together with the ID of the former liaison officer.
1. PASSPORTS
Philippine Passport Act of 1996
“The Republic Act No. 8239 also known as the Philippine Passport Act of 1996, states
that the renewal of application for the issuance of passports may be filed by any
licensed travel agency duly accredited by the Department of Foreign Affairs, provided
that the agent shall be responsible for the authenticity of the supporting documents
being presented to meet the requirements for the application of passports.”
Passport – a document issued by the government entitling a citizen to travel abroad.

The passport sets forth the identity and nationality of the traveler and authorizes him/her
to enter a foreign country.
REQUIREMENTS FOR PASSPORTS AT THE DEPARTMENT OF FOREIGN AFFAIRS
1. A duly accomplished and signed DFA passport application form (white – direct
applicants and pink – application through travel agencies)
2. A certified true copy (CTC) of the birth certificate issued by the NSO
3. Three (3) copies (1.77” x 3.7”) new photo (colored in plain white background), in
decent attire.
4. Personal appearance except when the applicant is :
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4.a. not more than eight (8) years old, or
4.b. 65 years old and above, or
4.c. mentally or physically incapacitated
PASSPORT FEES
1. Regular passport ( 7 working days)
32 pages – Php 500 64 pages – Php 600
2. For amendment of passport – Php 100
3. 32 pages – Php 700 64 pages – Php 800
4. Overtime processing (3 working days) – Php 150
2. VISAS
Visa – endorsement placed in a passport or on a separate document by consular
representative or another official of the country being visited
GENERAL VISA REQUIREMENTS
1. Duly accomplished and signed application form
2. Valid Philippine passport
3. Four 1.77” x 1.37” recent pictures, signed at the back, white background and no eye
glasses
4. Original copy of the latest income tax return
5. Travel agency certification of itinerary
6. Bank certificate
7. Bank book
8. Letter of request from agency concerned
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9. International credit (if available)
10. Land title (if any)
11. Business trips : business registration certificate and letter of invitation from host
organization
12. Roundtrip air ticket
13. At least $3,000 worth of traveler’s cheques
14. Travel insurance
15. Personal appearance
REQUIREMENTS FOR APPLICATION OF NON-IMMIGRANT VISA TO USA
1. Philippine passport (valid for 6 months from date of travel)
2. A bank certificate confirming a bank account and date it was opened.
3. A certificate of employment, or self-employed, a business registration certificates
4. Passport-size picture.
SCHENGEN VISA UNDER THE MAASTRICH TREATY, ALLOWS NON-IMMIGRANT

VISITS TO THE FOLLOWING WESTERN EUROPEAN COUNTRIES:
1. France
2. Spain
3. Germany
4. Portugal
5. Greece
6. Austria
7. Italy
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8. Belgium
9. Netherlands
10. Luxembourg
3. IMMIGRATION CLEARANCES
For temporary visitors and tourists wishing to extend their stay in the Philippines, the
following are the required papers:
FOR THE EXTENSION OF STAY, BEFORE 21 DAYS PRIOR TO EXPIRATION OF

STAY RESTRICTED ALIENS, THE REQUIREMENTS ARE :
1. Passport
2. Extension of stay fee – processing time is ten (10) working days
FOR EXTENSION OF STAY, BEFORE 59 DAYS OR 89 DAYS TO EXPIRATION OF

STAY, THE REQUIREMENTS ARE:
1. Passport
2. Extension of stay fee – processing time is ten (10) working days
FOR VISA WAIVER 38 DAYS EXTENSION, THE REQUIREMENTS ARE:
1. Passport
2. Extension of stay fee – processing time is ten (10) working days.
DEFINITION OF TERMS
 Citizen/national – a person who possesses the nationality of a country
 Alien – a person living a country where he or she is not a citizen
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 Immigrant – a person who legally enters a country with the purpose of
establishing permanent residence
 Tourist – a person who temporarily visits a country for at least 24 hours
 Transit passenger – a person passing through a country without leaving the

international transit area
4. OTHER DOCUMENTS
 Health and immunization requirements (small pox, cholera, or yellow fever)
 Custom clearance
B. TRAVEL INFORMATION
Travel Information Manual (TIM) – a publication for travel agents issued every month
and details the specific requirements to be fulfilled by passengers intending to travel to
any given international destinations.
TIM INCLUDES THE FOLLOWING INFORMATION:
1. Passport regulations
2. Visa requirements
3. Health restrictions
4. Tax restrictions
5. Customs regulations
6. Currency regulations
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C. FLIGHT RESERVATION
Travel agencies able to provide airline reservation wherein they charges fees
depends on the airlines, classes of services and seasonality. They also get commission
and rebate tickets from their affiliate airlines.
If a travel agency wishes to sell air tickets (most agencies still do) it must be
officially authorized to do so (i.e. appointed by the Airlines Reporting Corporation – ARC
and the International Airlines Travel Agent Network – IATAN).
D. HOTEL ACCOMMODATION
Travel agencies are able to provide hotel reservation services to its clients.
Prices vary according to the number of days, meals and other services included.
E. RAILROAD & MOTOR COACH TRAVEL
Travel within the continental Europe and North America can also be affected by
surface transportation such as motor coach or by rail road in Europe, access to the rail
system is made possible through the Eurail Pass.
THREE (3) TYPES OF EURAIL PASSES :
1. For individual travelers – Eurail pass and Eurail Flexipass
2. For couples and up to five persons traveling together – Eurail Saverpass
3. For individual travelers under 26 years of age – Eurail youthpass
* With a Eurail ticket, an unlimited number of stopovers are allowed at intermediate

stops.
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In the Philippines, travel by rail for long-haul destination was not advisable due to
the poor state of railways system (Philippine National Railway) until it was given
attention by the government and new rail cars are provided. It is now under observation
and privatization for a better service. For short-haul services, we have the Light Rail
Transit and Metro Rail Transit system provides better amenities and facilities for the
people.
But travel in the Philippines can be both an experience and an adventure. We

have major bus companies both tourist and passenger buses. Victory liner and Farinas
offer service in the northern part of the island; southern routes are services by BLTBCo.,
Gold Line and many more.
F. CAR RENTALS
Most travel agencies are able to book a selection of vehicle types anywhere in
the world. Major car rental companies, such as Budget, Avis and Hertz offices in all
major cities of the world, with up and drop-off facilities.
Requirement: valid international driver’s license – can be obtained at Philippine

Motorist Association for a fee valid for six (6) months only.
Local Car Rental Companies: Fil-Cars, Active Wheels, Helsinki
G. CRUISES AND OTHER MARITIME PRODUCTS
The cruise products available in the Philippines are divided into domestic and
international.
A. DISCOVER CRUISE
1. Discovery Cruises – 200 GRT wooden catamaran, twin-hull vessel with ten
(10) cabins.
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Destinations: Coron, Busuanga, Calamian group of island, Northern Palawan.
Cruise Fare: approximately US$500.00
2. William Gothong & Aboitiz (WG&A) – 2,000GRT and above and largest
interisland shipping company servicing commuters and freight. The operate the
Sail Away’ inclusive tour package.
3. Negros Navigation Company (NENACO) – operates ‘Balik Probinsiya’

packages.
4. Sun Cruises – a tourism company of Magsaysay Lines with 120 seater island
Cruises ferries to the island of Corregidor (Corregidor Excursion).
B. INTERNATIONAL CRUISE – the following are the major international cruise

companies that have representative offices or agents in the Philippines: Carnival
Cruises, Crystal Cruises, Princess Cruises, Norwegian Cruise Lines, Celebrity
Cruise Lines, Royal Caribbean Star Cruises.
H. M.I.C.E. TRAVEL
M.I.C.E. stands for Meetings, Incentives, Convention and Exhibitions. This is a

special type of travel arrangements for a specific purpose or event for individuals with
common interests.
I. INSURANCE
Travel insurance policies nowadays offer a range of coverage and provisions

such as repatriation, death, unforeseen accommodations and travel expenses and loss
of personal effects. The leading insurance agency for travel is PHILAM life. The major
consideration prior for recommending these travelers would be :
a. price
b. length of coverage
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c. geographical area of coverage
d. terms of payment when claims are made
e. reimbursement procedures
J. OTHER SERVICES
a. Ad Hoc – from the Latin for ‘as the need arises’.
e.g pilgrims, educational tour for students
b. Assist cards – provide health and accident security overseas in a manner that the
host-in-country handles all the necessary requirements a traveler may have.
K. TOUR PACKAGES
Package tour or also known as inclusive tour – is an arrangement in which transport

and accommodation is bought by the tourist at an all-inclusive price and the price and
the price of an individual element cannot determined by the purchaser himself.
ADVANTAGES OF TRAVEL PACKAGES
1. Package are typically less expensive, because the person or firm preparing the
package purchases the travel arrangements in quantity and is able to pass on savings
to the traveler.
2. The traveler knows precisely what the trip will cost. All essentials of the trip are
normally included in the price, and extra charges are stated in the promotional
materials.
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3. If the travel is complicated, the tourist traveling on a package has to make only a very
few decisions. He will not worry where to stay and what sights to see because of these
packages.
TYPES OF TOUR PACKAGES OPERATED
1. Regular Sightseeing
 Regular sightseeing or tour packages are put together without consideration for
the specific and special interest or requirements of a certain traveler or group of
travelers.
2. Packaged-to-Specifications or “Ad Hoc”
 Ad hoc sightseeing or tour packages are sightseeing tours or tour packages that
are tailored to the requirements and specifications of a particular traveler or
group of travelers.
SIGHTSEEING TOURS
 A combination of transportation within the destination to sights and sites of

interests, tour guide’s services, entrance fees, entertainment or activities and
sometimes, snacks and meals.
TYPES OF SIGHTSEEING TOURS
1. Half-day sightseeing
 Operated mornings or afternoons.
 Normally includes snacks
2. Full-day sightseeing
 Eight to ten hours with lunch
3. Evening tours
 Operated after six in the evening
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 Normally includes dinner and a drink.
4. Optional tours
 Tours are not included in the tour package, for which the client pay extra
VARIATION OF TOUR PACKAGES
 Tour packages vary according to any of the following:
1. Duration
 Refers to the number of days and nights included in the package
2. Destination/s
 A package may be for a single destination, or for multiple destinations
3. Category of accommodations
 The category of the accommodation establishment may vary from :
a. Five-star deluxe (DLX) hotel;
b. Four-star first class (FST);
c. Two-star economy (ECO); or
\ d. One-star budget hotel (BUD)
4. Meal Plan
 Refers to the number of meals per day included in the package
a. Full-board basis, full pension or American Plan – all meals are included in the
package.
b. Half-board basis, demi-pension or Modified American Plan – includes only

breakfast and lunch or dinner.
c. Bed & Breakfast – full breakfast included.
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d. European Plan – no meals included.
5. Mode and Class of Transportation
 Mode of transportation refers to air, sea or land travel and type of equipment.
 Class is the quality of the transportation equipment, facilities and amenities

offered to the passengers.
Self Progress Test/Activity
Activity 4:
Think why there are different types of travel agencies. And list out on paper the
differences.
Are you interested to travel? List out the requirement to undertake travel
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TOTAL 60 POINTS
Guide Questions (Assignment) 30 POINTS
Direction:

Rubrics for Assignment
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Level of Content Content indicates Content indicates Content indicates Shows some
synthesis of ideas, original thinking thinking and thinking and
indepth analysis and and develops reasoning applied reasoning but most
evidences original ideas with with original thought ideas are
thought and support for sufficient and firm on a few ideas. underdeveloped
the topic. evidence. and unoriginal.
Development Main points well Main points well Main points are Main points lack
developed with high developed with present with limited detailed
quality and quantity quality supporting detail and development. Ideas
support. Reveals high details and development. Some are vague with little
degree of critical quantity. Critical critical thinking is evidence of critical
thinking. thinking is weaved present. thinking.
into points
Explain the operation of travel agents
Why is there a demand for international and national travel? How travel agency benefit
with this?
What are the bases for classification of tour operators?
travel agent is a person who has a full knowledge about tourists product – destinations,
modes of travel, climate, accommodation and other areas of the service sector. He acts
on the behalf of product providers/principles and in return get a commission.
Technically, a travel agent is an owner or manager of an agency, but other employees
are responsible for advising tourists and selling packages tours/individual components
of travel products.
A travel agent may be an individual /firm or corporation which is commonly known as

a travel agency. An agency means the office of travel agent or organization where all
travel goods and services are assembled and coordinated for the smooth conduct of
travel agency business.
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Travel agency is one of the most important organization in the tourism private sector
which plays a significant and crucial role in the entire process of developing and
promoting tourism in the country or at a destination. It is a travel agency which
packages and processes all the attractions, accesses, amenities and ancillary services
of a country and present them to tourists. That’s why travel agency is known as ‘ image
builder‘ of a country.
Supplimentary Readings/ Materials
Biederman, P. (2008). Travel and Tourism: An Industry Primer. New York:Prentice Hall.
Claravall, Bienvenido G. (2010) Travel Agency and Tour Operations in the Philippines.
Manila: Tourism Enterprises Inc.
Mancini, M. (2010). Selling Destinations: Geography for the Travel Professionals. Pasig
City: Cengage Learning
Reference
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https://www.academia.edu/20788471/Travel_Agency_and_Tour_Operations_Mana
gement_MBA_-TOURISM_IV_-Semester
https://www.learncbse.in/cbse-question-paper-on-tour-and-travel-of-class-12/
http://cbseacademic.nic.in/web_material/Curriculum/Vocational/2018/Tourism/XII/
Travel%20Agency%20and%20Tour%20Operations%20Business%20XII.pdf
LESSON 5
TOURISM MARKETING
Introduction
Tourism Marketing is still an underdeveloped area and is often confused with selling.
The tourism industry is comprised of small enterprises (travel agencies, tour operators
etc.) and few among them actually adopt marketing whereas selling is done by all.
However, the way tourism market is maturing, the relevance of marketing is being
acknowledged more and more as an important activity for the success of the enterprise.
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This is also because competition is increasing. In the tourism markets (tourist
generating areas or countries) such competition is getting intense among:
countries to market their destinations,
Airline to market their seats,
hotels to sell the rooms, and
tour operators to market the packages etc.
A similar situation is witnessed at the destinations where competition is emerging in

practically every service sector, among guides and escorts, restaurants, hotels,
transporters, shops, etc. In fact you should remember that there is a tourism market
where demand and supply have their role to pl^ay and the linkages between them have
a bearing on marketing. Keepingin view the nature of the tourism product a more
pmfessional approach to marketing ,is required by all the players in'to~m i.e. the
government, tourism industry and the host population. In today's tourism business,
marketing is not a requirement of big players like airlines or hotel chains only but even
the smallest enterprise requires it. In this Unit, an attempt has been made to acquaint
you with the basics of tourism marketing.
At the end of the lesson, the learner should be able to:
LO1: Understand the definition and concepts of marketing in relation to tourism,

LO2: Discuss the relevance of marketing in tourism,
LO3: Differentiate between marketing and selling
LO4: Develop some skills for marketing your own services.
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Marketing
"Marketing is the analysis, planning, implementation, and control of carefully formulated

programs designed to bring about voluntary exchanges of values with target markets for
the purpose of achieving organisational objectives. It relies heavily on designing the
organisation's offering in terms of the target markets' needs and desires, and on using
effective pricing, communication, and distribution to inform, motivate, and semce the
markets".- Philip Kotler
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After giving this definition Kotler suggests that several things should be taken note of in
this definition: 1) It is a managerial process which involves analysis, planning,
implementation and control.
2) Marketing can also be identified as a social process which identifies, expends and
serves the material needs of a society.
3) Marketing is not just taking random actions to achieve desired responses. On the
contrary, it manifests itself in carefully formulated programmes.
4) Marketing attempts to bring about voluntary exchanges of values.
5) Marketing means the selection of targlt markets rather than an attempt to serve every
i market.
6) Marketing depends on designing the organisation's product or service in terms of the

needs and desires of the target markets (consumers).
7) The purpose of marketing is to assist organisations in their survival and growth by

serving ! their markets more effectively.
Evolution of Marketing.
The term marketing has befen in use for the last 30 years or so. The development of
marketing in fact is the outcome of certain social and business pressures. In 1960, Keith
mentioned that the growing recognition of consumer orientation ''will have far- reaching
implications for business, achieving a virtual revolution in economic thinking". Though
the word marketing came into use in the 20th century, initially it was linkedwith a
number of loosely related factors for achieving a sale. Consumer orientation, according
to Keith, started to be accepted as a business concept only from the 1950s. Gilbert and
Bailey mentioned three distinct stages in the development of marketing and modern
business practices :
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1) In the production era stage, the management focus was on increasing efficiency of
production and supply of products to the markets with the emphasis on consistently
reducing costs. This meant developing a standardised product to be offered at the
lowest price.
2) The second was the sales era stage. Under this stage, the organisations attempted
to Market influence demand by adopting more effective means of selling and increasing
their knowledge about different markets to improve their sales techniques.
3) The earlier two stages got reversed in the third stage i.e. the marketing era. The
crucial shift came when organisations started to produce what they could sell rather
than attempting to sell what they produced. This was the consumer-oriented approach.
The customers' needs, wants, tastes and satisfaction were recognised as the key
factors in planning and designing of the product which the organisation was to produce
and offer.
TOURISM AS A HIGH INVOLVEMENT PRODUCT
HIGH IHIGH INVOLVEMENT LOW INVOLVEMENT

EXPENSIVE INEXPENSIVE
COMPLEX SIMPLE
UNREPEATABLE FAMILIAR
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• EXPENSIVE PRODUCT- likely to go through a long and detailed process of
canvassing and comparing of brands, supplier and product features.
• COMPLEX PRODUCT- a difficult to purchase. The difficult may arise from the
need to understand the features or details of the product.
• UNREPEATABLE PRODUCT- it makes a “once-in-a-lifetime purchase”.
MARKETING AS A MANAGEMENT PROCESS
• MARKETING INFORMATION SYSTEM
• MARKETING PLANNING
• PLANNING TACTICAL CAMPAIGNS
• MARKETING OPERATIONS
• MONITORING AND CONTROL
CORE MARKETING FUNCTIONS
• Marketing information management
• Financing
• Pricing
• Promotion
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• Product/service management
• Distribution
• Selling
MARKETING MIX
4 + 3 P’s of Marketing
- Product
- Price
- Place
- Promotion
- People
- Packaging
- Programming
Product
• Product planning
• Product development
• Product branding
• Product packaging
 Planning the product = right product
 Planning the product for customer: satisfaction = repeat business = success
 Right product
• Right place (distribution)
• Right time
• Right price
• Right quantity
• Bundle of satisfaction & benefits
• Product cycle – inception, growth, maturity,saturation and decline process
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Price
• Competition based
• Value based
• Cost based
Price skimming
Penetrating Price
Place (Distribution)
• Channels of distribution – GSA, CRS/GDS internet and the travel agents
• Travel intermediaries – influence when, where & how people travel
Promotion
• Advertising
• Publication
• Publicity
• Public Relations
• Sales Promotions
• Personal Selling
5th P = People
• Market Segment
- High end
- Mass market
- Individuals
- Backpackers
- Students
- Senior Citizens
- Government
- Corporate
- Seafarer
- Labor
6th P = Packaging
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• Inclusions, airfare, accommodations,tours, entrance fees, meals (cuisine),guides,
incentives, shopping, discounts
• Brochure
• Ads
• Sponsors
• Standardization
7th P = Programming
• When is the best time?
• Festivals & Fiestas
• Holidays
• Low Season
• High Season
• Back end preparations – skills training,education,
Market
A set of actual and potential buyers of a product.
STEPS TO TARGET MARKETING
• Market Segmentation
• Market Targeting
• Market Positioning
MARKET SEGMENTATION
• Is a subgroup of the total consumer market who share similar characteristics and
needs relevant to the purchase of product , service or experience.
Characteristics of a Market Segment
• Identifiable
• Cohesive
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• Measurable
• Accessible
• Substantial
• Actionable
VARIABLES TO SEGMENT CONSUMER MARKETS
GEOGRAPHIC DEMOGRAPHIC
Nations Age
States Gender
Regions Income
Countries Occupation
Cities education
PSYCHOGRAPHIC BEHAVIORAL
Social class Benefits sought
Lifestyle Loyalty status
Personality Buyer readiness
MARKET TARGETING
• Is evaluating each segments attractiveness and selecting one or more of these

market segments in which to operate one’s business.
1. Segment Size
2. Attractiveness
3. Company objectives and availability of resources
TYPES OF MARKETS
• The Family Market
- Joint decision- making families
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-Husband making the decision
-Wife making the decision
• The Senior Market
• The Youth Market
• The Mice Market and Business Tourism
Self Progress Test
Activity 5:
Case Study: The Wickaninnish Inn

Located in Tofino, the Wickaninnish Inn (or “the Wick,” as it’s affectionately known) is a
world-recognized high-end property famous for offering four seasons of luxury
experiences on BC’s “wild coast.” But how does the Wick stay top-of-mind with tourism
consumers? A quick look at their marketing mix offers some answers:
 Product: The inn has long been a leader in offering experiences that go above
and beyond a room in a luxury hotel, starting with their storm-watching packages in
the late fall, a time that was once their off-season.
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 Place: Reservations can be made online on the inn’s website, via a toll-free
number, through OTA sites including TripAdvisor (where reviews are constantly
monitored in order to engage with customers), and other reservation services
including the HelloBC program. The staff constantly engages with, and monitors their
customers, tracking trends in traveller purchasing behaviour to ensure it is front and
centre with the inn’s target markets.
 Promotion: The inn has a well-maintained, visually rich website and social media
presence on Instagram, Twitter, Facebook, YouTube, Pinterest, Google+, and Flickr
(a presence that shifts constantly depending on where consumers can be found
online). Its site features a media page with blogs, press releases, and high-resolution
photos and videos to ensure journalists can easily post a story at any time.
 Pricing: The inn has a comprehensive revenue management and pricing plan
that includes packaging and promotions for all seasons. The pricing reflects offering
value to guests, while confidently staying at the higher end of the scale.
 People: Not only does the inn attract and train staff who deliver on its promise of
exceptional experiences, the Wick also has a multi-person team responsible for sales,
marketing, and media (blogging, press releases, photography, hosting familiarization
tours).
 Programming: Programs include packaging under themes such as elopement,
natural, seasonal, romantic, spa, and culinary. Many packages include the
involvement of hotel personnel such as an elopement coordinator or concierge to help
guests plan specific value-added and memorable components of their experience,
such as a last-minute wedding (Wickaninnish Inn, 2015).
 Partnership: The Wick partners with other experience providers and events such
as the Tofino Saltwater Classic — a fishing tournament hosted by Brendan Morrison
of the Vancouver Canucks. By supporting the event as a platinum sponsor (Tofino
Saltwater Classic, 2014), the representatives from the inn meet new potential guests
and solidifies its place in the community.
 Physical evidence: In addition to familiarization tours (see Chapter 7 for
definition), the media team ensures the inn is considered for a number of high-profile
awards, and celebrates wins by broadcasting these as they occur (e.g., Travel and
Leisure Awards World’s Best Winner 2014). Prize logos are placed on the inn’s home
page online, in print ads, and in physical locations on the property. The inn also has a
regular consumer newsletter that celebrates achievements and shares promotions
with past and future guests.
Thinking about this example, answer the following questions:
1. Imagine the inn received a review on TripAdvisor that showed a customer was
not satisfied. How might it deal with this?
2. Visit the company’s website at www.wickinn.com. Who are the target customers?
How is this conveyed on the site?
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3. What are the prices for packages and accommodations? What does the price
signal to you about the experience you might have at this hotel?
4. Do an online search for “Wick Inn” using your favourite search engine. What are
the first five links that come up? How do these present the property? What hand does
the inn’s staff have in these results?
5. Look at the community of Tofino as it is presented online and name five potential
partners for the Wick.

TOTAL 60 POINTS
Guide Questions (Essay) 20 POINTS
Direction:

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Rubrics for Essay

length. understand.
information.
1. Should services be marketed exactly the same as manufactured products and

packaged goods? Why or why not?
2. Name at least three reasons for tourism marketers to do marketing research .
Summary of the lesson
Travel and tourism marketing is the systematic and coordinated execution of business
policies by the both private or public and public sector tourism organizations operating
at the local, regional, national, or international level to achieve the optimal satisfaction of
the needs of identifiable tourist groups, and in doing so to achieve an appropriate return.
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Travel agencies in the pre-deregulation, pre-liberalization, and pre-globalization era
were often contended to take whatever business that come along this way and sold
them on a straight commission basis without bothering about the extensive marketing.
Moreover, their scope of the operation was small and was not much complex,
sophisticated and competitive.
But today the travel companies are becoming larger, more sophisticated and more
automated in management. Similarly, the clients/tourists are also becoming more
trained, experienced, erudite and demanding higher quality services and package
Supplimentary Reading/Materials
Morrison, A. M. (2010). Hospitality & travel marketing (4th ed., international ed.). Clifton

Park, NY: Delmar Cengage Learning.
Eliason, K. (2014, December 23). The importance of integrated marketing

communications. Retrieved from www.portent.com/blog/internet-marketing/raining-
marketing-importance-integrated-marketing-communications.htm
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Reference
https://tourismnotes.com/tourism-marketing/
https://opentextbc.ca/introtourism/chapter/chapter-8-services-marketing/
http://egyankosh.ac.in/bitstream/123456789/16989/1/Unit-1.pdf
MODULE 6
MARKETS AND DESTINATION
Introduction
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Travel behaviour refers to the way in which tourists behave according to their attitudes
before, during and after travelling. Knowledge regarding travel behaviour can assist in
marketing and product planning and development which can increase the number of
visitors to tourism products such as resorts. The rapid growth of the young traveller
market segment in a globalised world has contributed to a fragmentation of this
segment into many youth traveller types. Besides the classic backpackers, many youths
can be categorised as travellers, tourists, volunteers, language students, exchange
students and interns (Richards, 2015). This diversity may be a consequence of
increasing opportunities for mobility. According to (Richards, 2015, p. 341), ‘advances in
technology have facilitated physical mobility, and more recently the growth of
information and communication technology has created more widespread social
relations, which has strengthened the tendency towards mobility still further.’
LO1: Determine the travel behaviour and more specifically the travel motivations of
tourists visit.
LO2: Understand what motivates individuals, especially young people to travel.
Discuss what is destination branding.
Travel Motivators
Why Do People Travel and Travel Motivators by Mcintosh and Goeldern
Mc Intosh and Goeldern have mentioned the reasons why do people travel and travel
motivators in four ways. They are:
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Physical Motivator:
The physical motivator is related to relaxation and physical rest that includes various
types of sports activities and health goals.
Cultural Motivator:
Cultural Motivator is a way of choosing and acquiring knowledge of different cultures,

customs, life, people, arts, music, dance, and so on. In simple terms, we can refer to a
person who is keen to know other cultures.
Interpersonal Motivator:
It is a motivation with a desire to meet new people, visit friends and relatives VFR, and
gain new experiences. Thus, VFR has increased in every country.
Status and Prestige Motivators:
It is travel for one’s esteem and status. This kind of travel includes travel for business,
training, or pursuing education.
Here Are the Reasons Why Do People Travel and Travel Motivators by Robinson
In addition to the above travel motivators, Robinson has further classified travel
motivations into seven groups. They are:
People Travel for Pleasure:
People travel to get away their routine of daily life. Therefore, a person’s desire to travel
for pleasure has become a very strong factor because of every day hectic life. A person
would like to have fun, enjoy, and have a good time during their free time.
People Travel for Rest and Relax:
The industrial development and growth have created great pressure on modern living.
The pressures and complexities of modern city life have made it more important than
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ever for people to get away from all this and to relax in a peaceful and healthy
environment. Therefore, people travel to seek rest and relaxation to de-stress the body
and mind.
People Travel for Health Reason:
Many people travel for better health. During the Roman Empire, we can see people
Travel for health reasons. They travel to various spas to seek good health.
Till today, there are many people travel for better medical facilities, treatments, low-cost
medical expenses, and other related to medical health.
People Travel for Curiosity and Culture:
People go to the cultural heritage and historical sites to know more about local people,
heritage, land, and their way of life. Nowadays, through media and technology, we can
read, hear, and see different places. This curiosity has moved people to travel.
People Travel for Interpersonal Reasons:
This type of travel includes people who wish to visit their relatives, friends, families, their
countries, and to meet new people.
People Travel for Spiritual Reasons:
Traveling for spiritual reasons has been happening for a long time. Visiting places of
worship has been one of the first reasons for traveling. Till today, a large number of
people are encouraged to travel for spiritual reasons, e.g. visiting shrines, holy places,
etc. The number of people seeking comfort in such places is increasing intensely.
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People Travel for Business Reason:
These days, people travel to different places for business-related reasons. They travel
at the national and global levels to attend meetings, expand their business, and launch
new products.
Travel for Fine Arts:
Fine arts such as graphic art, sculpture design, and paintings have become an
important reason for travel. These days, art festivals are organized in many places.
People travel to these places to learn the fine arts of other cultures.
This kind of art festival showcases a variety of fine arts and cultural expressions to
make them more attractive. Edinburgh Festival in Scotland is the best example of the
Art Festival.
Travel for Local Music and Dance:
Nowadays music and dance have become one of the world’s main tourist attractions. In
fact, people go to these places to enjoy local music completely. For example, Mexico
and Hawaii are attracting more calves to their home country because of local music.
Therefore, ethnic dance is another fun and exciting aspect of a country’s culture. The
color, costumes, culture and the way of dance attract many people. The Ballet
Folklorico of Mexico is an example of Ethnic dance festivals.
Travel for Agriculture Reasons:
Agriculture has become an important source to draw tourists in many places. In fact,
agriculture attracts urban people to travel to rural villages. This type of travel offers a
new experience of how farming takes place. Farming may include livestock, poultry,
daily crops, and vineyards.
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Travel for Education Reasons:
The education system is another reason why people travel from one state to another
country. Education has become a vital source of travel. As a result of education, a new
trend of tourism came into the picture. Therefore, students travel within the country or
abroad for educational reasons. The main reason for travel is to seek better education
or research-related purposes.
Travel for Food and Drinks:
Food and drinks of a country are some of the most important ways
of expressing culture. Guests enjoy traditional cuisine, especially local items.
These days, People are keen to know the cuisine of other cultures. We can even find
people who travel all around the world just to taste the local food and drinks in every
country.
Travel for Status and Prestige:
Some people travel for ego and personal development. Therefore, many people travel
to new places to talk about it to their relatives and friends. They like to impress them by
relating their experiences to the various places visited.
Factors That Impact The Travel Growth:
The economic factors such as income, travel, age, education, and price of travel are the
factors that decide the growth of travel. Some of the other factors that influence travel
are:
Increase in Wealthy People:
The increase in wealthy people in developed countries is another reason why people
travel. As a result, people want to spend their leisure time visiting new places.
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Increase in Young Free Individual:
One of the other reasons why people travel is because of the increase in young people
who have freedom (when they have no family duties). This young person has a high
income, this enables them to travel.
Improvement in Transport:
Due to better transport and development, travel price has become cheaper. Therefore,
the low prices in travel result in the mass movement of people.
Pleasant Weather:
People travel to enjoy pleasant weather and to stay away from extreme weather
conditions in the home country. Thus, due to the extreme weather, people travel to a
place with pleasant weather.
Travel for Global Business and Trade Fairs:
People travel to different places to launch a new product and to showcase their
products. This kind of travel helps the business to promote their products. It has, in fact,
become a reason to travel so that they can reach the unreachable target customer.
Travel Barriers
In choosing a destination, a traveller must overcome a number of obstacles. If the

motivation to travel is strong enough, the obstacles will be overcome but they may still
affect the choice of destination. Time and cost, for example, are the obstacles that most
immediately come to mind. We must plan trips around our vacation time and our
budgets. If both are limited, we may choose a destination close to home. Some of the
major travel barriers include the following:
• Cost: Consumers have budgets. Travel competes with other financial

commitments.
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• Health: Inadequate health may keep people from travelling.
• Time: People have jobs, business, family, and other commitments that limit the
time available for travel.
• Family stage: Parents with young children may limit travel because of cost and
inconvenience or may be restricted in their choice of travel destination.
• Lack of interest: people have values and other interests that may screen out
travel.
• Fear: Knowledge of political conflict or high crime rates at destinations may

deter travellers.
Destination Branding
BRANDING
is the process of creating a slogan from a message and then designing a symbol or
logo.
BRAND IDENTITY
Refers to the essence of the brand, the characteristics that make ‘it’ what it is.
DEVELOPMENT OF A BRAND IDENTITY
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 Appointment of a brand champion- a brand champion is someone from the
community who is a leader and is responsible and accountable.
 Identification of the brand community- the destination brand community is as

important a brand communications medium as any advertising campaign since it
must be deliver the brand promises.
 Conduct of a destination audit- host community’s view of the essence of the

visitor’s experience, and the destination’s tourism resources.
 Production of a brand charter- elements include a brand mission, brand

identity or essence, statement, brand values and guidelines for implementation
and auditing
STRATEGIES FOR ATTRACTING VISITORS
Image Marketing
 Overly attractive image- refers to places that need little marketing and might
need a little marketing to avoid overcrowding.
 Positive Image- refers to places that do not require an image change but rather
a strategy to highlight the positive characteristics and deliver them effectively to
the target market.
 Weak Image- refers to places that do not have a clear message.
 Contradictory Image- refers to places that have both positive and negative
image.
CHALLENGES OF DESTINATION BRANDING
 Limited budget
 Politics
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 External environment
 Destination product
 Creating differentiation
Self Progress Test
Activity 6:
Create a Video that shows the beauty of Philippines. And explain the content of
the video
What is Film-Induced Tourism? Find a video that you think a part of film-induced
tourism
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TOTAL 60 POINTS
Direction:

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Level of Content Content indicates Content Content indicates Shows some
synthesis of ideas, indicates original thinking and thinking and
indepth analysis and thinking and reasoning applied reasoning but most
evidences original develops ideas with original ideas are
thought and support with sufficient thought on a few underdeveloped
for the topic. and firm ideas. and unoriginal.
evidence.
developed with high developed with present with detailed
quality and quantity quality limited detail and development.
support. Reveals high supporting development. Ideas are vague
degree of critical details and Some critical with little evidence
thinking. quantity. Critical thinking is present. of critical thinking.
thinking is
weaved into
points
Do you think traveling from one destination to other can help an individual inner peace?
Why and why not?
How important destination branding in promoting a place? What will be the pros and
cons of promoting a destination?
Motivation of the tourists stems from the domain of human psychology. It is the
satisfaction-forming factor. The factors of motivation can be categorized into two types
Internal Factors of Motivation

Internal factors arouse, direct, and integrate a person’s behavior and influence his
decisions for travelling.
 Intrinsic Motivation − For many people, tourism is a way of satisfying their
psychological needs such as travelling, performing leisure activities, exploring
novelty and capabilities, self-expression and self-assurance, creativity,
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competition, need for relaxation, and belongingness. The intrinsic motivations
pertain to assuring one’s capabilities on different emotional fronts. Intrinsic
motivation drives the tourists to opt for tourism for intangible rewards such as
fun, assurance, and other emotional needs. The other intrinsic factors of
motivation are
o Attitudes of Tourist − Knowledge of a person, place, or object + Positive
or negative feelings about the same.
o Tourist’s Perception − By observing, listening, or getting knowledge, a
tourist forms the perception about a place, person, or an object.
o Values or Beliefs − A tourist believes or values a specific mode of
conduct which is acceptable personally or socially.
o Personality of the Tourist − The nature and physique of a tourist plays
an important role towards motivation in tourism.
External Factors of Motivation

There are external motives in tourism that can influence tourists and pull them towards
a certain motivation and subsequent decision.
 Extrinsic Motivation − Here, a tourist gets motivated by external factors such
as money and the need to feel competent on the scale of expenditure and
performance.
 Place of Origin − The grooming of the tourist depends upon the place of its
origin. For example, for the Indian married women, the tourism might come last
in the list of preferential things they wish to do whereas for American ladies,
tourism would acquire much higher rank.
 Family and Age − The family matters when it comes to the structure and the
income. Today, the families with nuclear structure and double income tend to
opt for long distance, extravagant tourism more than joint families or families
with single earning member who are interested in visiting domestic places. The
tourists also have different preferences of places according to their age. For
example, tourists in the age group of 5 to 45 years might enjoy visiting
destination in the USA such as Disneyland more than the senior citizens.
 Culture or Social Class − Tourists of different cultures prefer different places,
events, and different types of tourism. In addition, if friends and families who
have visited a place earlier spread the first hand information that motivates the
others to visit the place too.
 Market − Ever-changing market variables alter tourism. Changes in value of
currency, political situations, and economic well-being of the country influence
the decisions of a tourist.
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Supplimentary Readings/Materials
CHANG, J. C. (2007), “Travel Motivations of Package Tour Travelers”, Original

Scientific Paper, 55 (2), 157-176.
CORREIA, A., OOM DO VALLE, P., & MOÇO, C. (2006), “Why People Travel to Exotic
Places”, International Journal of Culture, Tourism and Hospitality, 1 (1), 45-61.
. CROMPTON, J. L. (1977), “Motives for Pleasure Vacation”, Annals of Tourism

Research, 1 (4), 408-424.
Swarbroke, J. (2007). Consumer Behavior in Tourism. Oxford: Butterworth-Heinemann
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Mancini, M. (2010). Selling Destinations: Geography for the Travel Professionals. Pasig
City: Cengage Learning
Reference
file:///C:/Users/ACER%20ASPIRE/Downloads/Dialnet-
TravelMotivationsAndBehaviourOfTouristsToASouthAfr-5018529.pdf
https://www.itb-berlin.de/en/Press/Downloads/Publications/
file:///C:/Users/ACER%20ASPIRE/Downloads/08_Yousaf_Amin_Santos.pdf
https://oureducare.com/tourism/why-do-people-travels-and-travel-motivators/
LESSON 7
THE INTERNET AND E- TRAVEL COMMERCE
Introduction
E-commerce, which
takes the world by
92
storm in recent years,
is bringing new
business
opportunities to global
travel and tourism
industry. A survey
from Media Metrix, a
US
leader in Internet and
digital media
92
measurement, shows
that some 14 million
people
used the Internet in
1999 to book 7 billion
US dollars in travel,
and the number of
people
booking travel is
expected to rise to 75
92
million by the end of
this year. With the
rising of
the Internet boom, the
tourist sector would
by no means be left
behind. Tourism-
related
institutions and
Internet companies
92
are joining hands in
tap this potential
market. A
WTO report says that
people who expect
global communication
and access to instant
information also have
the same demands for
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tourism and travel
data. This paper is a
historical analysis of
e-commerce
penetration in travel
and tourism industry
and
addresses the
changing consumer
92
and industry behavior.
The analysis identifies
consistent customer
experience across
different channels
with airlines, booming
international and
domestic travel in
emerging economies
92
with limited Internet
access,
and emerging new
technologies such as
mobile devices and
global positioning
system
and their impact on
travel planning and
providing value added
92
services to consumers
as
the major challenges
facing this industry in
future.
Introduction
Information
technology has
introduced
ecommerce through
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the development of
the
Internet and the World
Wide Web. These
developments have
impacted both
consumer
and industry
behaviors in the areas
of travel and tourism.
92
Consumers have more
options regarding
vacation and budget
planning. Ninety five
percent of web users
have searched the
Internet to gather
travel related
information.
92
E-commerce, which
takes the world by
is bringing new
business
travel and tourism
industry. A survey
US
92
digital media
measurement, shows
people
and the number of
people
92
booking travel is
this year. With the
rising of
by no means be left
behind. Tourism-
related
92
institutions and
Internet companies
tap this potential
market. A
people who expect
92
tourism and travel
e-commerce
and
92
addresses the
changing consumer
consistent customer
experience across
different channels
international and
domestic travel in
92
emerging economies
access,
and emerging new
mobile devices and
global positioning
system
and their impact on
travel planning and
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as
future.
Introduction
Information
technology has
introduced
92
ecommerce through
the development of
the
Wide Web. These
developments have
impacted both
consumer
92
and industry
Consumers have more
options regarding
vacation and budget
have searched the
Internet to gather
92
travel related
information.
E-commerce, which
takes the world by
is bringing new
business
travel and tourism
industry. A survey
92
US
digital media
measurement, shows
people
92
and the number of
people
booking travel is
this year. With the
rising of
by no means be left
92
behind. Tourism-
related
institutions and
Internet companies
tap this potential
market. A
people who expect
92
tourism and travel
e-commerce
92
and
addresses the
changing consumer
consistent customer
experience across
different channels
92
international and
domestic travel in
emerging economies
access,
and emerging new
mobile devices and
global positioning
system
92
and their impact on
travel planning and
as
future.
Introduction
92
Information
technology has
introduced
ecommerce through
the development of
the
Wide Web. These
developments have
92
impacted both
consumer
and industry
Consumers have more
options regarding
vacation and budget
92
have searched the
Internet to gather
travel related
information.
E-commerce is bringing new business opportunities to the global travel and tourism
industry. Tourism-related institutions and Internet companies are joining to tap the
potential market created by e-commerce. This paper is an historical analysis of
penetration of e-commerce in the travel and tourism industry. The analysis identifies a
number of consistent customer experience across different channels, among airlines,
and involving both international and domestic travel in emerging economies with limited
internet access. It is argued, from this analysis, that there area number of emerging new
technologies such as mobile devices and global positioning systems which need to be
taken into account and effects systematically assessed. The paper concludes that a
major challenge facing the industry is to assess the impact of these technologies on
different aspects of the travel industry and to find out how much value-added services
they actually provide to consumers.
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Learning Objectives
LO1: Differentiate between types of reservation systems and booking channels
LO2: Discuss the impacts of online travel agents on consumers and the sector
E-commerce, which
takes the world by
is bringing new
business
travel and tourism
92
industry. A survey
US
digital media
measurement, shows
people
92
and the number of
people
booking travel is
this year. With the
rising of
92
by no means be left
behind. Tourism-
related
institutions and
Internet companies
tap this potential
market. A
people who expect
92
tourism and travel
e-commerce
92
and
addresses the
changing consumer
consistent customer
experience across
different channels
92
international and
domestic travel in
emerging economies
access,
and emerging new
mobile devices and
global positioning
system
92
and their impact on
travel planning and
as
future.
Introduction
92
Information
technology has
introduced
ecommerce through
the development of
the
Wide Web. These
developments have
92
impacted both
consumer
and industry
Consumers have more
options regarding
vacation and budget
92
have searched the
Internet to gather
travel related
information.
CRS- Computer Reservation System & GDS- Global Distribution System
Computer Reservation System (CRS)
• Also known as central reservation system.
• It is a computerized system to store and retrieve information.
• It conducts transactions related to air travel, hotel, car rental, or activities.
• It is originally designed and operated by airline.
• A CRS is the backend office system of the booking engine.

• And it enables you to administrate rates and availabilities comfortably and easily
as well as evolution of all incoming booking.
• Get an overview of the complete booking performance of e-distribution.
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Global Distribution System (GDS)
• Also called Automated Reservation

System (ARS)
• A world wide computerized

reservation network.
• It used as a single point of access.
• For reserving airline seats, hotels, rental cars, other travel related items by travel
agents, online reservation sites and large corporation.
The premier global distribution systems are:
• Amadens
• Abacus
• GDS Sabre
• Galileo GDS Booking
• World span
They are owned and operated as joint venture by major airline, car rentals companies
and hotel groups.
Main fact that it costs airlines money to go through a GDS process.
HISTORY
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Origins
In 1946 America Airlines installed the first automated booking system.
The experimental electro mechanical reservisor, a newer machine with temporary

storage.
It based on a magnetic drum, the magnetic reservisor soon followed.
The system proved successful.
It is used several airlines, including Sheraton Hotel.

It create local human operators to do the actual lookups.
Such as ticketing agents would have to call a booking office, whose operator would
direct small team operating the reservisor.
Remote access
1953 Trans-Canada Airline (TCA) started investigating a computer based system with
remote terminals.
It testing one design on the university of Toronto’s Manchester mark1
It was successful.
Travel Agent Access

1976 United began offering its Appolo system to travel agent.
It would not allow the agents to book tickets.
In 1978 travel agents released.
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Global Distribution System (GDS)
Amadens:
It is made up of vision, values, business

strategy, to support the purpose as a
company.
The company work with customers.
It offering a technology company dedicated exclusively global travel industry.
Is the largest GDS provides serving the world wide travel & tourism industry.
It gives access to book able contant from 435 airlines.
Semi Automatic Business Research Environment (SABRE)
It is used by more than 55,000 travel agencies around the world.
With more than 400 airlines, 88,000 hotels, 24 car rental brands and 13 cruise liners.
The Sabre GDS enables companies such as:- American Airlines, American Express,
BCD Travel, Carlson Wagonlit Travel, Hogg Robinson Group (HRG).
Galileo
It is part of travel port group of companies.
In 2006 had world wide market share of 22% for airline booking.
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The Galileo can used to book train, cruises, car rental and hotel rooms.
Travel port is a global broad based business service provides.
It serves in every segment of the travel industry.
World Span
Majority of travel agents used in this system.
Travel port is predominantly a global distribution system business which operates

approximately 170 countries.
Include internationally recognized world span & Galileo GDS platform.
World span introduced in 1990.
Delta Airline & N.W Airline are major airlines.
Difference between CRS & GDS

It has same functions but
The CRS only provide information about airlines.
By using GDS can reserve a ticket , a room in a hotel and also a rental car.
Basically GDS use to reserve everything.
CRS operates that book & sell tickets for multiple airlines are known as global
distribution system.
GDS also provide access also provide access to railway reservation and bus
reservation
CRS is used to store & retrieve information related air travel, hotel, etc..
92
Self Progress Test
Activity 7:
Search a travel agency and identify the various GDS software’s used in their respective
offices
What is the difference between Amadeus, Sabre, Galilleo, and Worlds span. And in
your own opinion, which among these systems are easiest and convenient to use.
92

TOTAL 60 POINTS
Direction:


Level of Content Content indicates Content Content indicates Shows some
synthesis of ideas, indicates original thinking and thinking and
indepth analysis and thinking and reasoning applied reasoning but most
evidences original develops ideas with original ideas are
thought and support for with sufficient thought on a few underdeveloped
the topic. and firm ideas. and unoriginal.
evidence.
developed with high developed with present with detailed
quality and quantity quality limited detail and development.
support. Reveals high supporting development. Ideas are vague
degree of critical details and Some critical with little evidence
thinking. quantity. Critical thinking is present. of critical thinking.
thinking is
weaved into
points
92
Explain the role of Amadeus in integrating travel services across the world.
Why some of the hotel and airline company consider GDS as their major provider?
Summary of Lesson
Global Distribution System (GDS) is the brain of the travel industry. It is a computerized
network system which provides real-time information to companies such as airlines,
hotels, car rental and travel agencies. Each of these sectors uses GDS to view real-time
inventory of services offered in the travel industry.
For example, using GDS, a travel agency can find the availability of hotel rooms, flight
seats or cars on behalf of their clients and book through the same GDS.
Travel companies use GDS to find the best airline ticket, car rental, hotel rooms, etc. for
their clients. Information is customized and by the travel companies based on the
preferences and itinerary.
When a traveler requests information from a travel company, the agent will find the most
accurate and cost-effective itinerary. Travel companies are charged every time they
access the GDS or they can buy a particular software offered by the GDS on a yearly
basis. Also, an average person can never access the GDS without the help of a travel
agency or a vendor.
GDS will be the most important channel of distribution for airlines, hotels and car rental
companies. Here are some of the major benefits of using GDS.
 Effective in attracting international travelers
 24/7 access to inventory
 Enables business models such as retail travel agency and OTA (Online

Travel Agency)
 Offer consumers increased pricing transparency
 Travel agents can get a global platform with a strong market penetration
 Provide best rates to your customers which no other system can provide
 Place travel services to many clients without affecting your marketing

budget
92
Supplimentary Readings/Materials
Ayo, Charles K. (2006). “The Prospects of e-Commerce Implementation in

Nigeria, Journal of Internet Banking and Commerce”, Vol. 11, No.3, pp. 68-75
Brahm C., (2009) “E-Business and Commerce Strategic Thinking and Practice”,
Houghton Mifflin, pp. 114-312.
The Internet and E-Commerce Legal Handbook: A Clear and Concise Reference to
Help You and Your Business Paperback – September 1, 2001 by Scott W. Pink
Reference
https://colorwhistle.com/gds-travel-agency-guide/
https://www.questia.com/library/journal/1P3-1889954271/impact-of-e-commerce-on-travel-
and-tourism-an-historical
92

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Republic of the Philippines

TRAVEL AND TOUR MANAGEMENT

3) Different organizations that is affiliated to tour operations

COLLEGE OF HOSPITALITY AND TOURISM MANAGEMENT

TOUR AND TRAVEL MANAGEMENT

4. Lesson Proper – this section shows the content of the lesson.

5. Self-Progress Activity – this is the assessment and evaluation section of your

7. Supplementary Materials/Resources - this portion will give you the supporting

ABOUT THE MODULE

PERIOD TOPIC/ACTIVITY DURATION

6) Do the required Assessment and Evaluation at Self-Progress Test. There are

At the end of the lesson, the learners should be able to

LO 1: Define tourism and its function

The Tourism Business

5. Package holidays suffer from inseparability. The behaviour of everyone involved in

The Philippine Tourism Industry

The tourism industry is recognized by the government as an important contributor to the

The industry is powerful and efficient because:

Its impacts on social development are broad and deep because:

To harness growth in the tourism industry, focus, execution and coordinated

State of Tourism in the Philippines

New investments in tourism-related facilities and the expected increase in tourist

The anticipated growth in international visitor arrivals and domestic travel

THE GOVERNMENT SECTOR

 Is responsible for the formulation of tourism policies.

 Was established by virtue of PD No. 189 in 1973

The Tourism Promotions Board is an attached agency of the Department of

 Is committed to position the Philippines as a major tourist and convention

 Supports socio-cultural oriented projects that help increase employment, promote

TOURISM INFRASTRUCTURE AND ENTERPRISE ZONE AUTHORITY (TIEZA)

(Formerly PHILIPPINE TOURISM AUTHORITY (PTA)

 The Tourism Infrastructure & Enterprise Zone Authority (TIEZA) was

 Mandated to implement policies and programs of the department pertaining to

 Is a world-class travel retailer providing local and

 Is an attached agency of the Department of Tourism that was created in pursuant

The National Parks Development Committee

 Is a government agency that is tasked to oversee national parks in the

Local Government Units

 Are empowered to regulate the establishment and operation of travel agencies.

Other National Government Units

1. DOTC – Dept. of Transportation and Communication

THE PRIVATE SECTOR

4. The Travel Trade

5. Food and Beverage

6. Other Private Sectors Entities

The Hospitality Industry

Attractions and Activities

 Also referred to as the entertainment, recreation or leisure sector which is best

 Banquet table service – it is similar to table service. However the food is

 Family-style service – it involves bringing various food items in sufficient food

 Delivery service – prepared food is delivered to the customers’ home. It is also

 Drive in service – contemporary counterpart of the carhop. Customers place an

Other Private Sector Entities

Primarily the members of the media, be it print, broadcast, audio-visual or electronic.

- Producers of electronic and printed news and advertising

- Data must keep up to date for intelligent counseling and management.

- Produce electronic or printed form, reference manuals, tariffs, guide

 Marketing and public relations organizations