Micro Midterms

PAMANTASAN NG LUNGSOD NG MAYNILA
PLM Business School

Department of Hospitality Management
ITM 1204 MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY
Module 1: THE PSYCHOLOGY OF TOURISM
MODULE By the end of the module students will:

OBJECTIVES
1. discuss the factors that motivate people to travel;
2. elucidate the relationship of needs, wants, and motives to tourist motivation;
3. describe the push/pull model;
4. explain the relation between Maslow's hierarchy of needs and the travel
motivations listed in travel literature;
5. describe the characteristics of psychocentrics and allocentrics;
6. identify the characteristics of travelers based on purpose of travel; and
7. analyze the travel constraints.
I. The A. Motivation for Travel

Psychology of
Tourism Several studies on tourist motivations have listed various reasons why people travel. Some
of the motivations listed in travel literature are:
1. escape;
2. relaxation;
3. relief of tension;
4. sun lust;
5. physical;
6. health;
7. family togetherness;
8. interpersonal relations;
9. roots or ethnic;
10. maintaining social contacts;
11. convincing oneself of one's achievements;
12. showing one's importance to others;
13. status and prestige;
14. self-discovery;
15. cultural;
16. education;
17. professional/business;
18. wanderlust;
19. interest in foreign areas; and
20. scenery.
Basic travel motivators can be divided into four classes:
1. Physical motivators — include those related to physical rest, sports participation,
beach recreation, relaxing entertainment, and other motivations directly connected

with health;
2. Cultural motivators — include the desire to know about other countries— their
music, art, folklore, dances, paintings, and religion;
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3. Interpersonal motivators — pertain to the desire to meet other people, visit friends
or relatives, escape from routine, from family, and neighbors;
4. Status and prestige motivators — concern ego needs and personal development.
Included in this group are trips related to business, conventions, study, and pursuit
of hobbies and education. Travel would enhance one's recognition and good
reputation.
B. Travel as a Means to Satisfy a Need and Want
The key to understand tourist motivation is to view vacation travel as a vehicle to satisfy
one's needs and wants. Tourists do not go on vacations just to relax and have fun, to
experience another culture, or to educate themselves and their children; they take vacations
in the belief that these vacations will satisfy, either completely or partially, various needs
and wants.
C. Relationship of Needs, Wants, and Motives
The difference between a need and a want is awareness. It is the duty of people involved in
marketing to convert needs into wants by making the individual aware of his need
deficiencies. This awareness must be accompanied by motivation. A motive enables a
person to do something. Motivation occurs when an individual wants to satisfy a need. To
enable a person to be motivated to satisfy a need, an objective or goal must be present. An
individual will be motivated to buy a product or service if he perceives that the purchase of
that product or service will be beneficial in satisfying the need of which he is now aware.
Thus, it is the role of marketing to suggest objectives such as vacations, cruises, or flights to
satisfy needs, an awareness of which has already been created. This process is described in
Figure 1.
Source: Mill, R.C. And Alastair Morrison. The Tourism System Dubuque, IA; Kendall/Hunt,
1998
II. Push/PullThe push/pull model explains the push and pull forces in human motivation. According to
Model the push/pull model, there are push and pull forces in human motivation. Internal factors or
personal needs "push" people to travel, while external forces or attractions "pull" them to
certain destinations. Much travel is motivated by both push and pull factors. For example, a
college student has begun to feel the "push" to get away from college for rest and relaxation
and the "pull" to travel to a sunny beach for escape, self-discovery, and scenic beauty.
Push factors are the intangible desires that generate within the person. Examples are need
to escape, self-discovery, rest and relaxation, prestige, challenge, and adventure. Pull factors
are external travel stimulators such as: scenic beauty, historical areas, cultural events, and
sporting events.
III. Maslow's A study of travel motivations found in travel literature indicates that these motivations fit
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Theory of into the hierarchy of needs model of Abraham Maslow, a famous psychologist. Maslow
Motivation and proposed the following hierarchy of needs as determinants of behavior:
Travel
Motivations 1. Physiological Needs — hunger, thirst, rest, activity;
2. Safety Needs — safety and security, freedom from fear and anxiety;
3. Social Needs — love, affection, giving and receiving;
4. Self-esteem — self-respect and esteem from others; and
5. Self-actualization — personal self-fulfillment.
Maslow's Hierarchy of Needs
This hierarchy suggests that lower needs demand more immediate satisfaction than the
satisfaction of higher needs. The first need is physical; the other four are psychological. To
this original list, two intellectual needs were added. These are:
1. To know and understand — acquiring knowledge; and

2. Aesthetics — appreciation of beauty.
The relationship between needs, motives, and references from tourism and literature
is shown in Table 1.
Table 1. Maslow's Needs and Motivations Listed in Travel Literature
Need Motive Tourism Literature
References
Physiological Relaxation Escape
Relaxation
Relief of tension
Sun lust
Physical
Mental relaxation of tension
Safety Security Health

Recreation
Keep oneself active and
healthy for the future
Social Love and Affection Family togetherness

Enhancement of kinship
relationships
Companionship
Facilitation of social
interaction
Maintenance of
personalities
Interpersonal relations
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Ethnic roots
Show one's affection for
family members
Maintain social contacts
Self-esteem Achievement Status Convince oneself of one’s

achievement
Show one's importance to
others
Prestige
Social recognition
Ego enhancement
Professional / business
Self-actualization Personal fulfillment
Source: Mill, R.C. and Alastair Morrison, The Tourism System Dubuque, IA: Kendal/Hunt,
1998
Those who say that they travel "to escape" or "to relieve tension" are satisfying the basic
physiological needs. The motivation may be for physical or mental relaxation. Passive and
active vacationers are motivated by a need for tension reduction. Passive vacationers are
relieved from tension by submitting to the surrounding environment. The active vacationer,
on the other hand, achieves tension reduction through physical activity.
Traveling for health and recreation attempts to satisfy one's safety needs. By taking care of
his body and/or mind, the traveler is protecting himself by assuring his own longevity.
The need for belonging and love pertains to the desire for affection, for giving and receiving
love. The organized tour is a method of encouraging and satisfying one's need for
interpersonal relations and social interaction. This motivation is commonly referred to as
the "VFR" market or "visiting friends and relatives." Part of this is the ethnic or roots market
whose desire is to revisit the homeland or previous residence of one's self or one's
ancestors. The first group consists of those who are born somewhere else and would like to
return to their own homeland. The second group are those in later generations who wish to
experience the land of their ancestors.
Maslow's concept of the need for esteem has two components—that of self-esteem and
that of esteem from others. The need for self-esteem is shown in the desire to exhibit
achievement, competence, and independence. Esteem from others is explained by the
concepts of prestige, status, and recognition. Travel can also boost one's ego since travel
may provide the tourist with a feeling of superiority.
Self-actualization can be regarded as a goal of leisure. Leisure is the state of being free from
the urgent demands of the lower-level needs. Vacations offer an opportunity to reevaluate
and discover more about oneself.
The need to know and understand is motivated by the desire for knowledge. Many people
travel to learn the cultures of other countries. Other motivations are education, wanderlust,
and interest in foreign parts.
The need for aesthetics is shown in those who travel for environmental reasons— to view
the scenery.
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Relating travel motivations with Maslow's need theory will produce two tangible benefits.
The first benefit is that the traveler is better understood and better motivated if he or she is
recognized as a person consuming products and services. This will enable the marketer to
provide a better product or service to the traveler. The second tangible benefit is that if one
accepts Maslow's idea that the lower-level needs should first be satisfied before the higher-
level needs, we would expect that products and services, including vacations, which are
aimed toward the satisfaction of lower-level needs, would be regarded as a necessity rather
than a luxury.
IV. A. Psychocentrics
Classifications
of Travelers Plog (1974) defines the “Psychocentric” as "self-inhibited, nervous and non-adventuresome;
Based on preferring familiarity in vacation-travel destinations”. The term “psychocentric” comes from
Personality “Psyche”, meaning “Self”, and “Centric”, meaning “focusing of interest patterns on varied
activities”. Psychocentrics are those dependable who have a firm belief on the fact that
whatever happens to them is largely beyond their control, so they often go for safe as well
as consistent choices by choosing popular things. Psychocentric tourists are usually non-
adventurous. These tourists love to drive to the destinations, often prefer family road trips.
They travel less and like to stay shorter period of time at any destination in typical
accommodations and usually eat at family-type restaurants.
B. Midcentrics
“Midcentric” swing between the “Allocentric” and “Psychocentric”. Such types of Tourists
located in the middle of the continuum in Plog’s Psychographic Model have a balanced
combination of both personalities based psychographic traits. They lean in neither the tried-
and true direction of the “Psychocentrics” nor the variety-seeking direction of the
“Allocentrics”.
C. Allocentrics
The term, “Allocentric” comes from the root words “Allo”, means “varied in form” and
“Centric” means “focusing of interest patterns on varied activities”.

The Allocentric tourists, often called as “Ventures”, are the individuals who seek new
experience, enjoy interacting with people from different cultural background, want to
explore the unusual or little known places, prefer adventure in a wide range of activities and
are pretty much comfortable in making choices that involve some degree of variation or risk
factors as they have a strong feeling that they can control or manage even the adverse
situations whatever they have to face while travelling. Even they are not committed to a
structured itinerary. Rather they like to have the freedom to make their own arrangements
and to choose a variety of activities and tourist attractions while exploring an area. Such
tourists prefer to fly to the destinations.
V. Tourist A. The Need for Escape or Change

Motivations
The greatest reason for travel can be summed up in one word, '{escape"— escape from the
dull daily routine; escape from the familiar, the commonplace, the ordinary escape from the
job, the boss, the customers, the house, and the accelerated pace of modern life.
According to Russ Johnston, a marketing research director, everyone is searching for
change. Travel can provide diversity. It removes a person from familiar surroundings to
something that is new and exciting. For example, a business executive who travels with his
wife from his home and stays overnight in a destination wishes to get away from the
routines and demands of his family and profession. An employee who goes to a beach resort
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is looking for a change from the daily routine.
B. Travel for Health
Development in the field of medicine has influenced travel for centuries, giving rise to the
concept of health tourism. The search for health and long life has popularized spas, seaside
resorts, as well as sun resorts. Majority of people think of vacationing as a means of
regaining one's energy, interest, and enthusiasm for the job.
The mineral water of different springs was believed to cure different ailments, such as
rheumatism, heart and circulation disorders, diabetes, and problems of the kidneys and gall
bladder.
Health-related travel is not limited to trips to thermal springs. "Reducing ranches" attract
middle-aged women with weight problems. Romania, with its restorative Gerovital attracts
the elderly. Americans suffering from different maladies go to China or Hong Kong to
undergo acupuncture or to the Philippines to consult faith-healers. As populations begin to
age in industrialized societies, health tourism will become increasingly popular.
C. Sports
Interest in sports, either as a participant or a spectator, is attracting large segments of the

population. People demand activity and excitement during their leisure hours to relieve
them from the boredom of their work. They indulge in activities, such as hiking, surfing,
scuba diving, mountaineering, and skiing. Millions attend a variety of games, such as
basketball, baseball, tennis, soccer in the United States, Europe, and Latin America. The
Olympic Games which are held every four years attract millions of tourists.
D. Social Contact
Much travel grows out of the social nature of people. Human beings are social animals. They
need contact and communication with others. They feel comfortable in a tour group. In the
group, the traveler may develop friendships that may last for years. Some tour groups have
reunions after the tour took place.
According to Charles Metelka, travel increases the "sociability resources" of individuals. It

makes them more interesting to themselves and to others.
E. Status and Prestige
Travel provides the means for ego and self-enhancement. Travel to a poor country can
provide the traveler with a feeling of superiority. Travel can also provide a means of
mingling with the wealthy and social elite.
Much travel is done to keep up with the Joneses and to appear knowledgeable about
foreign places. Being well-traveled enhances one's status in society. A trip to an out-of-the-
ordinary destination adds glamour to one's personality.
F. Travel for Education
The search for knowledge and truth is inherent in every individual. Travel offers an
opportunity to satisfy the urge to learn. Once an interest has been developed in a
destination area, the urge to see that area emerges and the interest grows as knowledge
increases.
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Advertising generates interest in a destination but much more persuasive is the interest
created by a good book, a movie, or a television program. When a person reads a book
about a place or sees a television program with that place as backdrop, he or she suddenly
discovers a desperate desire to go there. James Michener's Hawaii undoubtedly caused
thousands of readers to want to visit the islands.
Many school teachers go to Europe every summer. College students also go in large
numbers either on their own or as part of study groups sponsored by universities. Thus,
students combine travel with learning and receive academic credit for doing so.
G. Personal Values
The notion of personal values is an important travel motivator. Many people are urged to
travel to satisfy personal values, such as the search for spiritual experience, patriotism, and
wholesomeness. Pilgrimages to religious sites or holy places such as the Vatican, Lourdes,
Jerusalem, and Mecca are undertaken for spiritual reasons. Trips to Disneyland in Los
Angeles and Tokyo and to Corregidor in the Philippines are made to satisfy personal values
of wholesome environment and patriotism.
H. Cultural Experience
Cross-cultural exchanges, experiencing how other people live, and fostering international
understanding are some of the reasons to satisfy curiosity about other cultures, lifestyles,
and places. Studies conducted among travelers abroad reveal that seeking a new cultural
experience is a primary reason for international travel.
North Americans are attracted to go to Europe because their ancestors came from there and
their history classes are full of stories about it. In Europe, they can 'earn about its culture by
viewing its cities and visiting its cathedrals and castles. Travelers may have the feeling of
becoming part of the culture by attending a London theater in England, by joining the
bullfight crowd in Spain, or by drinking beer in Munich.
I. Shopping and Bargain Hunting
To many people, the joys derived from buying certain goods may be the major reason for
travel. Millions of travelers go to Hong Kong, Singapore, and other tax-free ports to shop.
Almost everybody wants to buy and to bargain.
Bargain hunting or being able to get special merchandise at a low cost is a travel motivator.
Tourists are looking for places that are inexpensive. They shop not only on the trip but also
for a particular trip. Before World War Il, Austria was a cheap vacation area, but when prices
increased, the budget-conscious travelers went to Spain and Portugal. For persons living in
high-cost areas, travel and vacationing in low-cost countries can save money. For example,
Americans find it more expensive to rent a house in New York than in the Philippines.
J. Professional and Business Motives
A great number of people travel for professional and business motives. Conferences and
conventions about education, commerce, and industry increase annually. More than one-
half of all airline travel is done by business travelers. Approximately 60% to 70% of guests
who check in at five-star hotels around the world travel for business reasons. However, a
great portion of business travel is mixed with pleasure. For example, a tourist may be
attending a convention in Las Vegas, but may spend half of his time gambling in a casino.
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K. Search for Natural Beauty
Travel can satisfy one's search for beauty in the environment and in the scenery. Natural
beauty such as the sunset, trees, mountains, waterfalls, flowers, beaches, valleys, bays,
rivers, and lakes is usually pleasurable to the viewer. Most people are inspired by the beauty
of nature. The trips of city dwellers to the rural areas on weekends show man's need to see
beautiful scenery—trees, grass, streams, and the open sky.
VI. The Learning An individual will buy a vacation package if he or she has learned that the purchase will
Process of a satisfy an important need. This process is shown in Figure 2. The tourist compares various
Tourist alternatives with a list of criteria to determine which alternatives will most likely satisfy a
particular motive. The resulting inclination will have an effect on the decision to buy. This
inclination may be positive or negative depending on how well a chosen alternative will
meet the motivation. The number of alternatives will vary according to the characteristics of
travelers. Travelers who have previously visited many foreign destinations have a larger
number of alternatives to choose from than those who have not. A destination will be
included as an alternative if the destination has previously satisfied the traveler. The level of
satisfaction depends on one's expectation of a situation, as well as one's perception of an
actual situation. If the level of expectations is higher than the actual experience, the tourist
will be dissatisfied. For the traveler to be satisfied with a product, service, or situation, the
level of actual experience must be equal to or greater than the level of expectation. Hence,
the level of service given to the vacationer must be given great importance to assure a
quality experience and a high level of satisfaction that will bring the traveler back.
Serving as bridge between the motives of an individual and the perceived alternatives are
the criteria used for making a decision among these alternatives. The criteria used are
learned. They are the result of past experiences, as well as information received from either
the commercial or the social environment.
An individual's learning input based on past experience is derived from having experienced
the same thing that is being considered or having experienced something similar. For
example, if a person stayed in a particular destination, the factors that accounted for his
satisfaction such as good weather and friendly service will be the criteria by which he
determines where to take his next vacation. Thus, decision criteria are developed or
modified from actual experiences.
Figure 2. Tourist’s Learning Process

Source: Mill, R.C. and Alastair Morrison, The Tourism System Dubuque, IA: Kendal/Hunt,
1998
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VII. Effect of Edward J. Mayo and Lance Jervis, in The Psychology of Leisure Travel, believed that
Consistency and individuals differ in the amount of psychological tension they can handle. Too much
Complexity on repetition or consistency results in boredom and a corresponding amount of psychological
Leisure Travel tension greater that he could handle. To reduce the tension, he will attempt to introduce
some complexity in his life. This explains why a tourist, who for many years spent his
vacation in a particular vacation spot, will either change the destination or the method of
reaching it.
Similarly, too much complexity may result in more tension than a person can endure. To
reduce the level of tension, he will introduce consistency into that experience. For example,
a Filipino tourist in Europe may find the different language and culture (complexity) need to
be balanced by staying in a hotel chain with which he is familiar (consistency).
The traveler who experiences a great deal of consistency in everyday life may compensate
by seeking vacations which offer variety. The opposite is also true.
VIII. The two major classifications of travelers based on travel purpose are the business travelers
Classification of and the pleasure/personal travelers.
Travelers Based
on Purpose of A. Business Travelers
Travel
Majority of travelers in most developed countries such as the United States, Canada, and
the United Kingdom are business travelers. They are divided into three categories, namely:
1. regular business travelers;
2. business travelers attending meetings, conventions, and congresses; and
3. incentive travelers.
Regular Business Travelers
Among business travelers, the cost of the trip is shouldered by a company; hence, travel is
not influenced by personal income. The volume and rate of growth of business travel is not
greatly affected by the cost of travel. This means that business travelers will continue even if
the price of travel services increases,
Many studies have been conducted to find out the characteristics of regular business
travelers. The results of these surveys revealed that business travelers are well-educated,
rich, have high-level jobs, and tend to fly often. More recent surveys have shown that ratio
of women business travelers to men business travelers have grown rapidly. These surveys
show that there are major differences between male and female business travelers. Some of
these are:
1. Women business travelers are slightly younger;

2. They tend to stay longer at their destinations;
3. They are more apt to be unmarried than males;
4. They are more likely to attend a meeting or convention;
5. They are more likely to book through a travel agent;
6. They have a greater preference for downtown accommodation facilities closer to
work; and
7. They are more concerned with security aspects of accommodation facilities.
Many airlines and hotels are exerting efforts to cater to the business executive travelers.
Airlines have been offering first-class seat service and first-class passenger lounges in airport
terminals to these travelers for many years. More recent innovations include special check-
in arrangements, bigger seats, and sleeper seats. Many hotel chains have begun to allocate
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whole floors or wings of their buildings for business travelers seeking greater luxury in their
accommodations. The rooms or suites are more spacious, contain more personal
"giveaways," and they provide their guests with complimentary drinks and express check-in
and checkout service. Normally, airline and hotel companies add a surcharge to their regular
prices for business executive travelers. They have achieved great marketing successes in
doing so. Airlines, particularly in the United States, have begun to search out and reward
frequent flyers by logging their air miles in airline computers. The rewards offered include
discounts on future trips and sometimes even free trips.
Business Travelers Attending Meetings, Conventions, Congresses
Travel Pulse surveys indicate that 20% of all business travel trips are for the purpose of
attending meetings, conventions, and congresses. A congress, convention, or conference is a
regular formalized meeting of associations or body or a meeting sponsored by an
association or body on a regular or ad hoc basis.
Conventions are classified into four kinds, namely: international, continental, national, and
regional conventions. International conventions usually involve members and nonmembers
from more than two foreign countries, and they take place in different countries every year.
They are generally nonprofit and attract persons with common fields of interest.
Continental conventions have delegates coming from a continent such as North America,
Europe, or Asia. National conventions are meetings organized by associations at the state,
provincial, or regional level. Normally, these organizations hold their conventions within
their own regions.
Incentive Travelers
Incentive travel is a special type of business travel. It is travel given by firms to employees as
a reward for some accomplishment or to encourage employees to achieve more than what
is required. Incentive trips have risen sharply according to the Society of Incentive Travel
Executive (SITE). Salespeople are given trips for reaching a set goal in overall sales of a
particular item or in the number of new accounts. Experts say that these incentive trips last
for five days and usually include spouses. Prize trips are often combined with business and
sales meetings, especially those to foreign destinations in order to be eligible for tax
deduction.
The most popular overseas destinations are Mexico, Spain, the Caribbean, Bermuda, and
Europe. Within the United States, the most popular incentive travel destinations are Hawaii,
Florida, Nevada, California, and New Orleans.
The increasing popularity of incentive travel has led to the establishment of incentive travel
organizations. They negotiate with suppliers such as hotels and airlines to determine the
cost of incentive travel trips. Thus, they act as specialized types of tour wholesalers. To their
prices, they add a markup of 15% to 20% for their services and costs in packaging the
incentive travel trip.
Corporations usually have the following objectives in buying incentive travel trips:
1. Increase overall sales volumes;

2. Sell new accounts;
3. Improve morale and good will;
4. Introduce new products;
5. Offset competitive promotions;
6. Bolster slow seasons;
7. Help in sales training;
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8. Sell slow items; and
9. Obtain more store displays and support consumer promotions.
Companies who buy incentive travel trips are usually those involved in insurance, sales,
electronics/radio/television manufacturing, automobile and truck manufacturing, farm
equipment manufacturing, auto parts/accessories/tires, heating/air-conditioning, electrical
appliances manufacturing, office equipment manufacturing, and building materials
manufacturing.
B. Pleasure/Personal Travelers
This group consists of people traveling for vacation or pleasure. They are also called
nonbusiness travelers. Experiences and research have shown that nonbusiness travelers
have different spending patterns from business travelers. In general, the demand for travel
services by nonbusiness travelers is elastic with respect to prices. This means that
nonbusiness travelers are very much concerned with the increase in the price of travel
services since the cost of travel is usually shouldered by the traveler himself. The traveler
likewise chooses the vacation area.
Traveling for pleasure is the largest segment of the international market and the fastest
growing. The reasons for the growth are the rising income levels in developed countries,
urbanization, higher educational levels, increase in leisure time, and the length of paid
holidays.
Pleasure/personal travelers are classified into the following categories:

1. resort travelers;
2. family pleasure travelers;
3. the elderly; and
4. singles and couples.
Resort Travelers
Surveys have shown that resort travelers are better educated, have higher household
incomes, and are more likely to have professional and managerial positions. It is also
notable that majority of resort travelers have families with children.
Family Pleasure Travelers
The family pleasure travelers can be divided into three groups, namely: junior families,
midrange families, and mature families. These are defined according to the ages of the
husband and wife and the educational stages of their children as follows:
1. Junior families. With parents aged 20—34 having preschool and/ or grade school
children only;
2. Midrange families. With parents aged 35—44 with grade school and/or high school
children only; and
3. Mature families. With parents aged 45 or over with children who are of high school
age and older.
Family pleasure travel trips are motivated by three objectives. The first objective is to use
travel as an educational experience for their children. The second objective is to do
something different. The third objective is to use travel to bring the family closer together.
The major hindrances to family pleasure travel are the cost of travel, particularly the cost of
transportation, accommodation, food, the ability of the parents to have privacy from their
children, and the problems of organizing and coordinating family pleasure plans.
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The Elderly
An examination of population trends in developed countries particularly in North America
clearly indicates that the population is aging. At present, there are many people who are
fifty years of age and over, including a greater number of people in the retirement age
category. These population shifts have made the elderly persons a lucrative target for
tourism destination areas. Persons in the "50 plus" age bracket are called active affluents or
people with the money and the desire to travel extensively. Active affluents generally search
for learning experiences, cultural enrichment, socialization, and activities which lead to self-
fulfillment.
Singles and Couples
Another important segment of pleasure travel consists of singles and couples. They take
their vacations to fulfill their psychological, intellectual, and physical needs by giving them
the opportunity to rest, relax, escape the routine of pressures of daily living, enjoy the
naturalness of life, and to express total freedom. A resort chain that targets singles and
couples is the Club Mediterranee. Club Med is not the only organization which taps the
singles and couples pleasure travel segment; other resorts and destinations particularly in
the Caribbean region have also targeted this market segment.
IX. Travel The main constraints to travel are:

Constraints
1. lack of money;
2. lack of time;
3. lack of safety and security;
4. physical disability;
5. family commitments;
6. lack of interest in travel; and
7. fears of travel.
A. Lack of Money
Lack of money is the major travel constraint. Less money means less travel. The wealthy
members of society are the ones who travel most. People with more disposable income will
be able to travel more than those who just earn enough to live on.
B. Lack of Time
Lack of available time is another inhibiting factor to tourist travel. The desire to travel and
the financial ability to travel are insufficient if one does not have the time to travel. A senior
company executive may have plenty of money to spend but very little time available. A
combination of time and money must be present for travel and tourism to take place.
C. Lack of Safety and Security

Lack of security in public places, hotels, and travel centers cause people to prefer to remain
in the security of their neighborhood and home. Areas may acquire the reputation of being
dangerous and thus become less desirable travel destinations as what has happened in the
Philippines, the Caribbean, and parts of Mexico, Spain, and Italy, where there has been a
sharp increase in the number of thefts, robberies, shootings, and assaults among the local
people. Tourists will not go to destinations that they consider unsafe.
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D. Physical Disability
Physical disability in the form of bad health or physical handicap may keep people at home.
Elderly who are more susceptible to illnesses such as heart trouble, hypertension, arthritis,
and bronchitis travel less. After the age of 70, very few travels because for most of them,
long trips are tiring, changes in food are upsetting, and a strange bed may cause
sleeplessness.
E. Family Commitments
Family commitments inhibit travel. Parents with young children find it inconvenient and
expensive to go on holiday. During the child-rearing period, family obligations increase

significantly for women and to a similar but lesser degree, for men. Travel is curtailed and
more time is spent at home. Indeed, family commitments of any kind, whether it be young
children, taking care of the sick, or looking after older people really affects travel.
F. Lack of Interest in Travel

This is mainly due to a preference to simply stay at home. This condition may be due to a
variety of factors, such as dislike of travel, shyness in meeting people, dislike of changing
routine, and many more.
G. Fears
Some people do not want to travel because of fears of travel. Fear of flying is quite common
and accounts for many people who insist on driving to a vacation area instead of boarding a
plane. Fear of the unknown keeps many people from leaving their own country or even their
own city. Many travelers are afraid to go to countries where they cannot understand the
language. Some potential travelers are afraid of the unfamiliar decisions they will have to
make in a strange place such as how much to tip and how to get around a strange city. All
these fears are deterrents to travel.
Chapter 1. Design a tour that would appeal to young singles.

Activities 2. Decide whether you are a psychocentric or allocentric tourist. Choose a destination with
an image that matches your personality type and explain how this image pulls you to go to
the destination.
3. Pleasure travel motivation is often added to a business trip such as attending a
convention. How would you sell this idea to the convention planning committee?
REFERENCES Romeo D. Lim, Micro Perspective of Tourism and Hospitality, Mindshapers Company,
Inc., 2019
Micro Perspective of Tourism and Hospitality, 3G E-Learning LLC, 2019
Zenaida Lansangan-Cruz, Micro Perspective of Tourism and Hospitality, REX
Bookstore, 2019
13
PLM Business School
Module 2: THE SOCIOLOGY OF TOURISM
MODULE OBJECTIVES By the end of the module students will:
1. explain the social nature of travel;

2. describe the social effects of tourism;
3. discuss the socioeconomic variables and their
effect on travel;
4. describe the new travel patterns;
5. explain the preferences of the international tourist;
6. describe the types of tourist roles; and
7. explain the meaning of social tourism.
I. The Social Nature of TravelTravel is brought about by the social nature of man. Human
beings, as social animals, feel comfortable in a tour group.
They feel that their trip is more enjoyable and free from
anxiety if they join a group tour. Camaraderie often
develops friendships that last for years.
In some subcultures, travel is the accepted way of spending

one's vacation. Sabbatical leaves and foreign assignments
make it possible for university faculty members and
employees to travel and develop a passion for it.
Tourism evolves a mutual trust and respect for one another

and the dignity of life on earth. According to Pope John Paul
Il, "The world is becoming a global village in which people
from different continents are made to feel like next-door
neighbors. In facilitating more authentic and social
relationships between individuals, tourism can help
overcome many real prejudices and foster new bonds of
fraternity."
II. The Social Effects of Tourism Tourism is concerned with the movement and contact
between people in different geographical locations. In
sociological terms, this involves:
1. social relations between people who would

not normally meet;
2. the confrontation of different cultures,
ethnic groups, lifestyles, languages, levels
of prosperity, and the like;
3. the behavior of people released from many
of the social and economic constraints of
everyday life; and
4. the behavior of the host population which
1
has to reconcile economic gain and
benefits with the costs of living with
strangers.
The degree to which conflict will occur between host and

guest depends upon the similarity in their standards of
living, the number of tourists at any time, and the extent to
which the tourists adapt to local norms.
III. Socioeconomic Variables A. Age and

Their Effect on Travel
There are several differences between patterns of travel
based on age. Younger people tend to select more active
recreational activities than older people. The elderly (those
in the late sixties and upward) prefer more passive forms of
recreation, such as visiting friends and relatives, fishing,
sightseeing, and playing golf. Older tourists tend to travel
to farther destinations, prefer ship travel, travel more in
spring than younger tourists do, and spend less than
middle-aged tourists but more than younger tourists.
B. Income and Social Status
Income and social status have a great influence on travel.

Rich persons, as well as persons with higher social status,
travel more than those with lower income and social class
status. Higher income tourists stay longer and spend more
per day than those with lower incomes.
C. Education
There is a strong correlation between education and travel.

Generally speaking, the better educated members of the
population have a greater desire to travel. Researchers
have found that the more educated the travelers are, they
tend to be more sophisticated in their tastes. They prefer
activities that require the development of interpretative
and expressive skills, such as attending plays, concerts, art
museums, reading books, playing golf, and skiing.
D. Life Stages of the Family
The presence of children in the family limits travel. More

leisure time is spent at home. As the children grow up and
leave home, the married couples renew interest in travel.
Couples in this life stage usually have more discretionary
income and are more financially capable to travel.
IV. The Rise of New Travel A. Travel Clubs

Patterns
The most significant development in group travel consists
of travel clubs. A very good example of these is the Club
Mediterranee which started in Western Europe and then
spread to North America and other areas of the world. In
2
this group travel plan, a club member enjoys travel
opportunities and vacation destination facilities at a much
cheaper price than that paid by a nonmember. The
accommodations offered by the club range from deluxe to
very modest. There is also a wide choice of locations,
climate, and other vacation features.
B. Airline Group and Arrangements
Another development in group travel is the introduction of

different types of tour fares promoted by airlines. These are
the following:
1. groups of 15 or more are given reduced fares;

2. charter service is given by some airlines to affinity
group tours which are intended for those affiliated
to a legitimate group for a period of six months or
longer;
3. public charter in which an entire airplane is made
available to a group of persons who travel to the
same destination; and
4. incentive tours which are given by firms to
employees as a reward for a special achievement or
as a motivation for achievement.
C. Special Interest Tours

Special interest group travel is becoming more popular at
present. These are tours arranged for those who are

interested in a particular activity such as bird watching,
festivals, fishing, hunting, scuba diving, photography,
flower arrangement, golf, skiing, mountain climbing, and
the like.
V. Preferences of the The preferences of the international tourist are divided into
International Tourist four categories, namely:
1. complete relaxation to constant activity;
2. traveling near one's home environment to a totally

strange environment;
3. complete dependence on group travel to traveling
alone; and
4. order to disorder.
A. Relaxation Versus Activity

Before, the workweek for most people including the middle
class was long and exhausting. Thus, they demanded

holidays that offered relaxation and rest. At present, the
workweek has been shortened and the annual holiday
leave has been lengthened. Work has become less
tiresome, and people have become used to greater leisure.
Relaxation has become possible throughout the year,
Accordingly, people have started to use their no-holiday
3
time leisure to exercise new activity skills, such as sailing,
climbing, horse riding, and sports. The demand for activity-
oriented travel has greatly increased.
B. Familiarity Versus Novelty
In general, most tourists on their first trip abroad tend to

seek familiarity rather than novelty. They search for
something that will remind them of home, whether it be
food, newspapers, living quarters, or another person from
their own country. As soon as they find a place where they
feel at home, these tourists will go back to the same place
for a number of times. Not until they have gained more
experience in traveling will they want to go to a new
environment—to see customs and cultures different from
their own, and to mix with people who speak differently,
eat differently, and dress differently.
At present, there is an increasing positive attitude for

novelty and for change. People accept innovations in
industry, education, family life, the arts, and social
relationships, among others. Tourists move away from
traditional resorts to new tourist destinations.
C. Dependence Versus Autonomy
In the past, tourists joined package tours in which

transportation, lodging, food, sightseeing, and
entertainment were fixed in advance by the tour agency. At
present, there is the emergence of a group of tourists who
would like to acquire a sense of personal autonomy
regarding their leisure time. They would like to travel on
their own and not part of a group. They would like to feel
independent—in complete control of what they do and
how they do it.
D. Order Versus Disorder
In the past, tourists sought holidays which enforce the

traditional concept of conformity—set meals at fixed times,
guidebooks which told them the right places to visit, and
resorts where their fellow tourists were tidy, well-behaved,
and properly dressed. They avoided situations where their
adult-imposed sense of orderliness might be offended.
Now, the new generation of tourists is not very much

concerned about what to wear and how to behave when on
holiday. Informality in behavior, a greater tolerance toward
the differences of others, and freedom from
institutionalized regulations are now the characteristics of
the modern traveler.
Because of social and economic changes in modern society,

the demand for travel will be based less on familiarity,
4
relaxation, dependence, and order, but more on novelty,
activity, autonomy, and informality.
VI. Types of Tourist Roles The continuous combination of novelty and familiarity
forms the basic variable for the sociological analysis of the
phenomenon of modern tourism. This combination leads to
the four types of tourist roles. Each type represents a
characteristic form of tourist behavior. The first two types,
the organized mass tourist and the individual mass tourist,
are called institutionalized tourist roles because they are
dealt within a routine way by the tourist establishment,
such as travel agencies and hotel chains which cater to the
tourist trade. The last two types, the explorer and the
drifter, are called non-institutionalized tourist roles
because they are loosely attached to the tourist
establishment.
A. The Organized Mass Tourist

This type of tourist is the least adventurous. He buys a
package tour in which the itinerary of his trip is fixed in

advance and his stops are well-prepared and guided. He
seldom makes decisions for himself. He prefers a familiar
environment rather than a new environment.
B. The Individual Mass Tourist

The individual mass tourist is similar to the organized mass
tourist, except that the individual mass tourist has a certain

degree of control over his time and itinerary and is not
bound to a group. However, all the major arrangements of
his tour are still made through a travel agency. Like the
organized mass tourist, he also travels within his own
country and goes out of it occasionally. Familiarity is still
dominant, but less than the organized mass tourist. The
desire for novelty is greater for the individual mass tourist.
C. The Explorer
This type of tourist arranges his trip by himself and looks
for comfortable accommodations and reliable means of

transportation. He tries to associate with the people he
visits and to speak their language. The explorer dares to
leave his country much more than the previous two types
but goes back to it when the experience becomes too
rough. Although novelty dominates, the explorer does not
adopt completely the lifestyle of the host country. He still
retains some of the basic practices and comforts of his
native way of life.
D. The Drifter
The drifter goes the farthest away from the accustomed
ways of life of his own country. He is almost totally

5
immersed in his host culture. He tries to live the way the
people he visits live and to share their shelter, food, and
habits. He retains only the most basic of his native customs.
He arranges his own trip and does not seek the help of a
tour agency. He does not have a fixed itinerary. Novelty is
at its highest; familiarity disappears almost completely.
VII. Social Tourism In a general sense, social tourism is a subsidized system of

travel through the intervention of the government,
employer, or labor union to achieve social goals and
purposes. In the late 1930s, when many European
countries passed laws on paid holidays, it was recognized
that the right to legal holiday could not only be meaningful
if the ordinary worker will be able to afford travel for
recreation and rest. Thus, a number of voluntary
associations in the field of social tourism worked to obtain
reduced fares and to create a network of holiday centers
for tourists of limited means.
In 1963, the International Bureau of Social Tourism (BITS)
was founded in Brussels to encourage the development of

social tourism on an international scale. At present, it has a
membership of more than 100 associations all over the
world. The BITS is promoting tourism to achieve social
objectives by studying such issues as youth and senior
citizen travel, the staggering of holidays, camping and
caravanning, building and financing moderate cost tourist
facilities, and preservation of local culture and
environment.
Chapter Activities 1. Make a research on how governments can

encourage and support social tourism.
2. Conduct a study on the kinds of travel products
that a travel counselor would recommend to
retirees who have the time and money to take
extensive trips.
3. Write a one-page report on how your travel
interest differ from your parents and from your
grandparents.
REFERENCES Romeo D. Lim, Micro Perspective of Tourism and
Hospitality, Mindshapers Company, Inc., 2019
Micro Perspective of Tourism and Hospitality, 3G E-
Learning LLC, 2019
Zenaida Lansangan-Cruz, Micro Perspective of
Tourism and Hospitality, REX Bookstore, 2019
6
PLM Business School
Module 3: TOURISM AND CULTURE

1. describe the effects of cultures in travel;
2. clarify how cultural patterns are changed by

internal and external forces;
3. discuss the importance of cultural tourism;
4. analyze the cultural factors which appeal to
tourists; and
5. explain how each of these cultural factors
contribute to cultural tourism.
I. The Effects of Culture on Culture can be defined as a "set of beliefs, values,

Travel attitudes, habits, and form of behavior that are shared by a
society and are transmitted from generation to
generation." A knowledge of the culture of a country is
important in order to understand how individuals within
that country will behave. Lack of understanding and
inability to communicate with the host culture might result
in a culture shock for the tourist. A Filipino traveler who
visits the United States for the first time may experience
culture shock in the open display of love and emotions, the
frankness in conversation, the permissive way children
interact with their parents, and the practice of allowing
aged parents to stay in the home for the aged. Likewise, an
American tourist in the Philippines might be repelled by
balut (cooked duck egg with embryo) and the bagoong
(preserved salted fish) or may feel exasperated by the
Filipinos' lack of punctuality or time concept, and the use
of euphemism and circumlocution in contrast to American
frankness. Culture patterns are changed by internal forces.
Within a group, there are people who are more willing
than others to try new things. Since these innovators are
better educated, have high income, and more
achievement-oriented than others, they tend to be opinion
leaders and to be highly sought-after by marketing people.
"Mass follow class" suggests that a destination first
attracts a small number of high-status individuals whose
actions are eventually copied by a large number of persons
with lower social status.
Culture patterns are also changed by external forces.

Contact with other environments may change previous
attitudes and behavior. A visit to a foreign country may
result in a change in attitude toward the people of that
1
country. Travel may also stimulate the sale of products in
the destination visited.
It can readily be seen that in order to understand a

traveler, it is necessary to understand why visitors act the
way they do and be in a better position to anticipate and
satisfy their needs and wants.
II. The Importance of Cultural Cultural tourism includes all aspects of travel in which
Tourism people learn about each other's way of life. Thus, tourism
is an important means of promoting cultural relations and
international cooperation. Louis D' Amore, the past
president of the Canadian Travel Research Association,
once said, "These millions of daily person-to-person
encounters are potentially a powerful force for improved
relations among the people and nations of the world,
relations which emphasize a sharing and appreciation of
cultures rather than the lack of trust bred by isolation."
III. Cultural Factors with In tourism, there are cultural factors that appeal greatly to
Tourist Appeal tourists. These are art, music and dance, handicraft,
industry and business, agriculture, education, literature
and language, science, government, religion, food and
drink, and history.
A. Art
Generally, the arts include performing arts and fine arts.

The former refers to live theater, music, and dance, and
the latter includes painting, sculpture, graphic arts, and
architecture. Examples of performing arts are the Pangkat
Kawayan (bamboo orchestra) and the rondalla group.
Amorsolo's and Francisco's paintings and the sculptural
works of Michelangelo are examples of fine arts.
B. Music and Dance
In several countries, music is a major source of enjoyment

and satisfaction to tourists. The Philippines, Hawaii, Spain,
the United States, and the Balkan States are examples.
Resort hotels, in particular, can give visitors many
opportunities to enjoy the best local music. Evening
entertainment programs, concerts, recordings, and sound
reproduction systems are greatly appreciated by tourists.
Records and tape recordings which the guest can buy to
use in his home provide another effective means of
keeping in touch with the culture of a particular country
and a reminder of the country's music. An example of
music in promoting tourism is that of Hawaii with its
musical presentation, "Hawaii Calls."
Dancing, in its native or ethnic forms, is one of the most

appealing aspects of a country's culture and can be
presented as a tourist attraction. The color, costumes,
music, setting, and skill of form and execution add to the
2
attraction. Almost all countries have native dancing or
ethnic dancing. Ethnic music and dancing are a part of the
culture and should be used to entertain tourists. The best
place for such entertainment are resort hotels. Local
shows, nightclubs, and community programs present
added opportunities. Examples of dance as a cultural
expression are the Bayanihan Dance Troupe of the
Philippines, the Ballet Folklorico of Mexico, the Russian
Bolshoi Ballet, the folk dances of European countries, the
African dances, Thai dancing, and the Kabuki dancers of
Japan.
C. Handicraft
To satisfy tourists, gifts and souvenirs for sale should be

manufactured in the country where the purchase is made.
Usually, a tourist is dissatisfied when he buys a particular
souvenir and then discovers later that the article he
bought was made in another country. There is no
substitute for genuineness. The locally produced article is
useful and attractive; it should be made available in
conveniently located shops. A visit to shops where
handicrafts are actually being made by the craftsman is an
effective form of tourist entertainment. Examples are the
shell-craft, handcrafted jewelry of Bulacan, the Baguio and
Ilocos hand loom wearers, and the traditional crafts of
Thailand, Africa, Cyprus, and Tunisia.
D. Industry and Business
Most travelers, particularly international travelers, are

usually curious about the country's industry, commerce,
manufactured products, and its economic situation.
Industry tours are a very effective way of developing an

interest in the culture of a country, as well as providing a
potential market for the product being made. Tourist
organizations should encourage tours to factories or
processing plants. Lists of these industrial establishments
can be prepared by tourist promotional organizations,
chambers of commerce, resort hotels, and restaurants.
Group tours can be organized for manufacturers of a
specific product who visit another country to see how the
manufacture of a similar product is accomplished. Such
tours are mutually profitable because the representatives
of the different countries learn from each other.
Business or industrial groups often conduct tours to

become familiar with the markets and processors in other
countries in order to develop more interest in their
products and to increase sales in several market areas.
Business establishments, specifically retail stores, are
important to visitors. The best examples are shopping
centers near destination areas where tourists can easily
find the product or service they want. Shopping.is one of
3
the most important elements in tourism. The success of a
shopping area depends on its cleanliness, attractiveness,
variety of products, as well as the courtesy and efficiency
of the personnel. Hong Kong and Singapore are the best
examples of tourist business.
E. Agriculture
The agriculture of a country may be interesting to a large

segment of tourists. Dairy undertakings, fresh fruits and
vegetables, crops, and poultry and livestock are types of
farming which are important elements of culture.
An important aspect of tourist services in rural areas is the

farmers' market in which local agricultural products are
sold to the travelers. Examples of this are the roadside
stands selling fresh fruits, vegetables, and products from
nearby farms which are enjoyed by travelers.
Local tours should include agricultural developments and

services so that tourists can see the agricultural products in
the country and perhaps try some of them. An example of
this is a tour to Oahu, Hawaii, or the Del Monte farm in
Bukidnon, Philippines where visitors have a chance to taste
fresh pineapples grown in the pineapple plantations in the
area.
F. Education
The inhabitants of one country are usually anxious to know

the educational system of another country. The campuses
of the colleges and universities of a country are particularly
appealing to tourists. Many of them have beautiful
landscapes and are ideally situated for an enjoyable and
enlightening visit. Famous universities such as Oxford or
Cambridge in England, Harvard in the US, and the
University of Sto. Tomas in the Philippines are tourist
attractions.
Several universities conduct adult education programs

within the university's continuing education service. These
educational opportunities attract students from many
countries around the world. Thus, students are motivated
to travel. International conferences of business and
industrial associations, as well as scientific and educational
organizations, are often held on the campuses of colleges,
universities, and other educational institutions. The best
examples are the adult education centers similar to the
East-West Center at the University of Hawaii. These
centers attract thousands of adults every year from
continuing education courses, conferences, and meetings
that are educational in nature.
G. Literature and Language
4
The literary achievements of a country form an important
part of travel motivation. Books, magazines, newspapers,
booklets, pamphlets, and other printed literary works are
significant expressions of the culture of a country. Libraries
are favorite cultural institutions for the tourists. Many
have very good reading lounges and comfortable,
attractive surroundings where visitors can enjoy reading
about the history, culture, arts, and folkways of their host
country. Frequently, entertainment programs include the
reading of poetry or the discussion of various books or
other literary works as a cultural enrichment for guests.
A highly educated person is 'likely to speak or at least have

studied more than one language. Interest in the language
of another country is an incentive for travel. This is true for
students who travel to a particular country to practice the
language or to become more familiar with its colloquial
use.
Most travelers like to learn the language of the country

they visit. They usually start learning the common
expressions used in ordering food in a restaurant or in
talking with hotel or other tourism employees. Language
classes should therefore be included in the activities
program of a tourist area.
H. Science
Tourists are interested to know the scientific activities of a

country, especially those in technical industries, education,
or scientific research. Tourist promotion organizations
would be rendering a great service to the scientific
community by providing facilities for the exchange of
scientific information, organization of scientific
installations, and other activities which provide scientific
information to visitors.
The most popular scientific attractions are museums of

science and industry, planetariums, and visits to unusual
scientific installations such as atomic powerplants and
space exploration centers. Zoos and aquariums are
likewise popular.
Notable examples are the Lyndon B. Johnson Space Center

in Houston, Texas, and the John F. Kennedy Space Center
in Florida. These scientific installations provide scientific
knowledge to large numbers of visitors each year.
l. Government
Countries differ in their systems of government. Visits to

centers of government, such as capitals, are very
motivating to individuals interested in political science and
government. When a person visits another country, he or
she becomes aware of the type of government in
5
operation and compares it with the government in his or
her own country.
Lawmakers often visit another country to observe the

lawmaking process. A visit to Washington D.C. can show
visitors the process of making laws in the House of
Representatives and in the Senate. Hearings on different
proposed regulations or statutes are usually open to
visitors.
J. Religion
The religious pilgrimage is another motivation for travel.

The most popular among the Muslims is the pilgrimage to
Mecca. Many people go to the different headquarters of
their church organizations and to places that are well-
known in their religious literature. These people usually
travel in groups. Examples are the religious pilgrimages to
the Vatican in Rome, Lourdes in France, Fatima in Portugal,
Jerusalem in Israel, and Medjugorje in Yugoslavia. Visits to
famous churches are also an incentive for travel. The best
examples are St. Peter's in Rome, St. Paul's Cathedral in
London, San Agustin Church in Manila, the Notre Dame
Cathedral in Paris, and the Basilica Minore del Sto. Niño in
Cebu.
K. Food and Drink
Food and drink are an important part of the culture of a

country. Tourists usually enjoy native food especially those
which are local or ethnic in nature.
Restaurants and hotels can make a good impression to the

tourists if they serve local dishes and explain the menu—
what the dish consists of and how it is prepared. The type
of restaurants where the atmosphere is conducive to the
types of food being served is particularly appealing to
visitors. Very good examples are the seafood restaurants
at the Fisherman's Wharf in San Francisco and Los Angeles,
California, and Cabalen Restaurant and Barrio Fiesta
Restaurant in the Philippines.
L. History
The history resources of a country reveal its cultural

heritage. The preservation of history and the quality and
management of museums are very important for the
success of tourism. To be familiar with the history and
archeology of an area is a very important travel
motivation. One of the weaknesses observed in historical
museums is that the explanations of the exhibits are given
in only one language. Hence, most tourists do not enjoy
the historical exhibits because they do not understand the
language used in explanations.
6
Tourists should be provided with literature that describes
the points of interest, admission fees, hours of operation,
special events, and other information they need to visit
historical attractions. Examples of museums are the British
Museum in London, the National Museum of Anthropology
in Mexico City, the Smithsonian Museum in Washington
D.C., and the Ayala Museum and San Agustin Museum in
the Philippines.
Chapter Activities 1. Research on the feasibility of promoting a local

festival in your community.
2. Conduct a study on the distinctive cultural
attractions found in your community.
3. Make a research on how cultural relations and
international cooperation can be enhanced by
tourism.

Learning LLC, 2019
Zenaida Lansangan-Cruz, Micro Perspective of
Tourism and Hospitality, REX Bookstore, 2019
7
PLM Business School
Module 4: TRANSPORTATION SECTOR

1. trace the evolution of transportation and travel;
2. discuss the historical development of transport

systems;
3. explain the selection of transport mode;
4. discuss the role of international rail
transportation;
5. identify the reasons for the growth and decline of
ship travel;
6. explain the importance and scope of the
bus/motor coach industry;
7. describe the impact of private car ownership on
the tourism industry;
8. enumerate the dynamics of the worldwide car
rental industry; and
9. discuss the role of the airline industry in the
development of tourism.
I. Transportation and Travel Transportation and travel have undergone many changes. A
Evolution review of the history of transportation and travel shows that
their evolution took seven eras. These are the pre-industrial
travel system era, the early-industrial travel system era, the
mature-railway system era, the express-travel system era, the
automobile-based travel system era, the modern-tourism
travel system era, and the post-mobility adjustment era.
A. Pre-Industrial Travel System Era

This was the period before the widespread industrialization in
Europe and North America. It was before the development of

railways in the two continents. There were few common
carriers. There were almost no regularly scheduled
transportation services. There was little travel. Travelers made
their own arrangements with several suppliers. It was the era
of the stagecoach and the wayside inn. Only few people had
the money and the reason to travel.
B. Early-Industrial Travel System Era

During the era, road improvements such as railways, canals,
and steamship services were brought about due to rapid

industrialization and advances in transportation technology.
Common carriers came into existence and began to offer
1
regularly scheduled transportation services. Travel increased
because more people who had money traveled.
C. Mature-Railway System Era
This era was characterized by railways which expanded their

operations by running hotels and providing other travel-
related services. The railways began to market their services
more aggressively. Travel agencies and tour companies were
formed. Thomas Cook, an innovator in this field during this era,
began his company's activities in the United Kingdom in 1840.
More people traveled in this era than in the previous one.
D. Express-Travel System Era
During this era, express service increased. Trains and other

forms of transportation did not stop at every station or
terminal but only at the major ones. This increased the speed
of travel and encouraged more travel than before.
E. Automobile-Based Travel System Era
This influence of the privately owned automobile was

enhanced in North America and Europe from the 1920s
onward. Car ownership boomed in North America. Motorways,
interstate highways, and other trunk highways were developed
in the latter half of this era which was from 1920 to 1974. The
automobile was predominant over other travel modes from
1920 to 1945.
F. Modern-Tourism Travel System Era
The period from 1945 to 1974 is known as the modern-tourism

travel system era. Car ownership continued to grow at a fast
rate, mainly at the expense of long-distance rail travel. Mass
air travel was another post-World War I l occurrence. The
introduction of wide-bodied jets in 1970 greatly increased air
travel. The "mass tourism" philosophy and marketing
approaches were prevalent during the 1950s and 1960s.
G. Post-Mobility Adjustment Era
This era began in 1973 to 1974 as a result of the oil embargo

generated by the Organization of Petroleum Exporting
Countries (OPEC) and the resulting increase in fuel prices. The
events of the energy crisis basically changed the travel patterns
throughout the world. The present era is one in which
travelers continue to look to alternative, group-oriented
modes of transportation.
II. Historical Development of The desire to travel is stimulated with the improvement in
the Transport System transportation. Before World War l, it took seven days for
travelers to go from coast to coast by steam locomotive. By
1950, travelers could complete the journey in two and a half
days by train. In 1938, an airplane with the speed of 400 miles
an hour made possible nonstop coast-to-coast flights of less
2
than eight hours. In 1950, travel time from coast to coast was
lessened to four hours. At present, the Concorde can make a
flight in two and a half hours. Table 2 shows the historical
development of the transport system.
Table 2. Historical Development of the Transport System
Year Mode of Transport Speed

(miles per hour)
6000 BC Caramel caravan 8
1600 BC Chariot 20
AD 1784 First English mail 10
coach
1825 First steam locomotive 13
1890 Improved steam 100
locomotive
1931 Land speed record
(Bluebird: Sir
Malcolm Campbell)
1938 Land speed record 350
(Napier-Railton car:
John Cobb)
1938 Piston aircraft 400
1952 United States Liner 41
from New York to Le
Harve
1958 Jet fighter aircraft 1,300
1958 Boeing 707 and DC-8 600
aircraft
1961 Spaceship (Vostok 1 17,560
orbiting)
1967 Rocket plane 4,534
1970 Fighter bomber 1,450
(Mirage IV)
1970 Commercial aircraft: 1,320
Concorde
1970 Boeing 747 626
Source: Reason, James. Man in Motion: The Psychology of

Travel. London: George Weindenfeld and Nicolson Limited,
1996.
The development in transportation has made the world a

smaller place. It is now possible to take one to two weeks of
vacation in distant places like Europe, the United States, the
Caribbean, Mexico, and South America. Now, travelers can go
to any place in the world due to fast and efficient means of
transportation.
III. Selection of There are many reasons why people select one transportation
Transportation Mode mode over another for their business and pleasure trips. The
most common reasons are cost, traveling time, safety,
convenience, comfort, availability, frequency of trips, ground
services, terminal facilities and locations, status and prestige,
and departure and arrival times. People belonging to different
3
travel segments have different value perceptions. For example,
the time spent in traveling as well as departure and arrival
times are very Important to the business traveler while the
cost of the trip is the traveler's primary consideration.
Jagdish Sheth developed a theory identifying transportation

variables and the value of travelers. He found out that
travelers choose a travel mode based on how they
psychologically weigh the five factors, namely: functional,
aesthetic/emotional, social/organizational, situational, and
curiosity. The functional utility of a mode is its expected
performance for a specific purpose. Examples are departure
and arrival times, safety record, the directness of the trip, and
the number of stops or transfers. Aesthetic/emotional is
related to such aspects as fear, social concerns, style, luxury,
comfort, and other personal feelings that the form of
transportation might evoke. Social/organizational shows that
the frequent users of certain kinds of transportation are
stereotyped according to sex, racial origin, income, price/cost,
and education. For example, those who take bus trips are
usually perceived to be female, either young or old, while
those who take bus tours and cruises are generally retired
people. Situational refers to how conveniently located the
particular mode of transportation and its terminal facilities are
for the traveler. Curiosity utility refers to the traveler's
perceived need to do something new and different. Flying
transatlantic on Concorde may have a high curiosity value for
many business travelers.
A. Travel by Train
Trains stimulated travel within the United States, Canada, and

Europe in the 19th and early 20th centuries. Britain had its first
organized train tour in 1841 when Thomas Cook organized an
excursion between Leicester and Loughborough. In 1851, three
million Englishmen boarded the train to see the Great
Exhibition in London. The train was instrumental in stimulating
the development of many seaside resorts in Britain.
The first transcontinental route in the United States was
completed in 1869. With the advent of the steam locomotive
in 1825 until after World War Il, travel by train became the
primary means of movement within the United States. During
the latter part of the 1800s and the first part of the 1900s, the
train connected major population centers and popular spas
and resorts such as the Niagara Falls, Long Beach, Saratoga,
New Jersey, and Las Vegas. This dependence on the train is
shown in the development of Las Vegas where large hotels
were located downtown, a short distance from the railroad
station. This gave tourists who arrived by train quick and easy
access to hotels and casinos.
In 1863, long-distance rail travel boosted when George M.

Pullman built the Pullman coach, a luxury first-class sleeping
and dining facility. In 1868, the diner car was introduced on the
Chicago and Alton line. Ten years later, an elaborate meal
4
could be obtained in all trains.
The popularity of the train lasted only for a brief period after
World War Il when the automobile began to gain more
popularity as a passenger transportation mode. US railroads
carried 77% of the nation's passenger traffic. By 1950, with the
rapid growth of private automobile ownership and usage,
passenger traffic declined to 46%. In an effort to save the
railroad industry, the Rail Passenger Service Act became a law
in October 1970. The act created the National Railroad
Passenger Corporation, now commonly known as Amtrak,
which began its operations in May 1971 and was intended to
be a profit-making corporation. Canada's equivalent of Amtrak
is VIA Rail Canada, which was created in 1977.
Both Amtrak and VIA Rail have the national responsibility of

providing intercity passenger rail transportation. Since their
establishment, both organizations have been successful in
increasing passenger volumes. They have done so by improving
the equipment and services they offer and by promoting the
benefits of traveling by train more effectively.
Several attempts have been made to determine why travelers

select the train as a transportation mode. Four evident factors
are: cost/price, comfort, safety, and the ability to see the area
where the train is passing. VIA Rail's onboard surveys of
business travelers have identified user cost, convenience,
travel time, and comfort as of primary importance.
A survey of Amtrak passengers showed that travelers favored

the train for the following reasons:
1. Safety;
2. Ability to look out of the train and see the
interesting things en route;
3. Ability to get up and walk around;
4. Arriving at the destination rested and relaxed;
and
5. Personal comfort.
The negative factors of rail travelers are slowness in reaching

the destination, inflexible departure times, and lack of quality
in food services. Promotions by Amtrak and VIA Rail have
emphasized the rest and relaxation benefits of taking the train.
They have also pointed out that the downtown-to-downtown
routing of trains saves the time of the passengers.
Train travel has continued in Europe and Asia more than in the
United States, particularly for long-distance travel. The Euro
City network, formerly the Trans Europe Express (TEE)
network, as well as other national lines provided excellent rail
services between major cities in 10 countries. The system is
being improved. In 1987, the TEE had been replaced by a new
system which includes high-speed trains, with both first and
second-class accommodations. Travel within Europe would be
5
further improved with the development and construction of
the Eurotunnel between England and the continent. The
tunnel would create the single biggest unified rail network in
the world and reduce travel time between England and other
European countries by two hours. Europeans believed that the
train was a more efficient form of transportation from city
center to city center on trips up to 300 miles. Like Amtrak,
most of the better railroads of the world were subsidized by
the government.
Although the importance of rail travel was reduced due to the

popularity of the automobile and airplane in many countries,
railroads had been working hard to improve their facilities to
accommodate super trains with speeds between 150 to 250
miles per hour. The first sensational rail accomplishment after
World War I l was Japan's shinkansen or bullet trains which
travel at speeds greater than 140 miles per hour. The bullet
trains run north and south and link major metropolitan areas.
These began operations in 1964 in time for the Olympics in
Japan. They make the run of 550 miles in three hours and 10
minutes from the former time of 18 hours. They provide a ride
so smooth that a passenger can leave a cup of tea or coffee on
a windowsill and not a drop will spill. A computerized control
center feeds information to a lighted board that shows the
location of every train and the conditions of the track,
switches, and wires. Station stops are as short as two minutes
at intermediate stations, so travelers must be ready to move
fast. The computer automatically stops the train in case of
trouble, especially during an earthquake. At present, Japan has
the best railroad system in the world, with 26,000 fast and
efficient trains scheduled a day. Japan has plans for trains
which travel at speeds of 300 miles per hour. The Japanese rail
system is heavily subsidized by the government.
France has its own supertrain, the Tres Grande Vitesse which
travels at a speed of 175 miles per hour between Paris and
Lyons and Marseilles.
In Russia, the Trans-Siberian Railroad, the longest in the world

(5,787 miles) links outlying Siberian industrial regions and
mining centers with European Russia. Railroads are important
to the Russian economy. The Germans have a test track
designed to carry passengers at a speed of 130 to 240 miles.
Tres Grande Vitesse
The popularity of the train system in Europe has increased, not

only because of its quality and efficiency, but because of the
use of the Eurailpass. In 1939, a number of European countries
introduced the Eurailpass which allowed a traveler to use it for
two months of unlimited second-class travel on any of the rail
systems of the European countries. Later, it included unlimited
first-class service over different periods varying from 15 days,
21 days, one month, and three months with access to many
ferries and steamer routes. They also introduce the student
6
Eurailpass for a second-class travel. It is less expensive than the
Eurailpass ang is good only in 16 countries.
B. Travel by Ship
Travel by ship preceded travel by train but it was not until the
middle of the 19th century that travel by ocean liners began to
become prominent. Ocean liners were used to provide an
important link to passengers among continents. At present,
water transport has two major roles in travel and tourism-
ferrying and cruising.
The steamship era began in 1840 when Sir Samuel Cunard

pioneered the first transatlantic-scheduled liner tips. However,
the introduction of the jet aircraft led to the rapid decline in
the ships as scheduled passenger transportation mode. In the
late 1990s, the era of travel by ships expired. Cruise chips took
the place of regularly scheduled passenger ships. Many
passenger ships were converted into cruise ships. Those that
were too old or too large were junked or scrapped. Others that
had historical value were converted into tourist attractions. For
example, the Queen Mary which is permanently docked in
Long Beach, California became a tourist attraction and a hotel.
Cruises are more of a vacation experience than a

transportation mode. The romance of cruising had been
strongly promoted and was aided very much by the popular
television program, Love Boat. Cruises are divided into three
types depending on the duration of the trips. Short cruises are
one week or less, intermediate long cruises last one to four
weeks, and long cruises go around the world and take one to
three months.
Cruise Ship
Short-duration cruises are more popular because they require

less vacation time and are less expensive. Other reasons are
travelers can satisfy their desire to experience new
environments and see new cultures and still bring with them
the comfort, safety, and convenience of home. In addition,
there is no changing of hotels, airports, and food and beds
which may cause sleeplessness and other problems, Examples
of short cruises are the three-night cruises from Los Angeles to
Mexico and cruises on the St. Lawrence River on vessels such
as the Canadian Empress.
Cruise ships may be divided into large vessels which can

accommodate 180 or more passengers and small vessels which
carry less than 100 passengers. They are called "mini-cruises"
or "ultra-yachts." At present, the trend is toward large vessels.
Recently, the typical ship was built to carry 850 to 1,250
passengers but now, the average capacity of a new ship is
2,000 passengers. The large cruise ships offer a wide array of
services and amenities to guests, most of which are packed
7
into the cruise. Accommodations on board vary from rooms for
three to four persons to lavish staterooms. The rooms are air-
conditioned and have private baths.
A cruise ship is both a floating hotel and resort because the

guests are housed, fed, and entertained. Food is offered
throughout the day from seven-course meals to themed-event
dinners. Cruise ships also provide almost continuous
entertainment which include charm classes, language lessons,
dance classes, bridge, table tennis, aerobics, jogging, and
shuffleboard. Many ships now have fully equipped gyms,
health spas, and an athletic counselor. Cruise directors plan
activities and entertainment for the passengers which may be
full-scale musical productions, live entertainment with well-
known performers, discos, bingo, gambling, courses in self-
improvement, and the like. For many passengers, the
numerous opportunities to socialize on a cruise vacation is one
of its major attractions. Passengers who prefer a less active
type of vacation can relax by the pool or on deck and enjoy the
warm climate and beautiful sunsets. Cruise enthusiasts prefer
this type of vacation because it combines fresh air, plenty of
good food, a variety of activities, and visits to exotic places.
Cruises are promoted and sold on the basis of health,

recreation, and pleasure. Theme cruises are popular such as
culinary cruises, historic voyages to less-known places, stock
market seminars, movie festivals, music festivals, as well as
cruises devoted to art, golf, astrology, tennis, photography,
and beauty counseling.
The United States dominates the international cruise market

by supplying more than 70% of total passengers followed by
Europe with 17%. Estimates of the total dollar income of the
cruise industry are difficult to obtain because income is earned
from various sources including the scale of births, gambling,
bars, shops, and miscellaneous services. Cruise lines have also
lucrative market in the United Kingdom, West Germany, and
Australia. In Europe, Russian ships sail from ports in Italy, the
United Kingdom, and Holland. They offer tower rates and good
services.
The cruise industry is largely owned by European companies

which are located in Denmark, Norway, Holland, Italy,
Germany, Great Britain, and Greece, Although, the cruise ship
industry is not a US industry in terms of ownership, several
United States and American territory cities serve as major
ports of cruise ships. The top ports are Miami, New York, San
Juan, Port Everglades, Los Angeles, San Francisco, Seattle, and
New Orléans.
The Caribbean is the world's largest cruise destination Cruise

passengers for destinations within the Caribbean comprise
50% of total visitor arrivals. Other major cruise destinations
include the Mediterranean, Scandinavia, Alaska, and the
Pacific, Cruises are announced several months before the
8
departure and are also sold mostly by travel agents as
packages. The fly cruise package has grown in popularity
because it combines the speed and efficiency of jet travel with
the relaxing, romantic attribute of cruise ships. One significant
marketing strategy used by the cruise industry is to offer
heavily discounted or free air flights to the port of
embarkation. As an added convenience for cruise passengers,
some cruise line agents greet passengers at the airport and
then transport them to the ship's pier. in order to attract more
families, other cruise lines have begun to provide children's
activities and offer lower rates for a third or fourth passenger
in a cabin. Several cruise lines have also designed cruise
packages which cater to the single segment and those
interested in health and fitness.
Younger people prefer the three- to seven-day cruises. Older

people take cruises of seven days or less. The elderly usually
joins the round-the-world cruise, Cruise passengers tend to be
repeat customers. Once they experience a cruise, they begin
planning for the next. Like destination resorts, cruise lines have
successfully developed their own loyal repeat clienteles with
an average of 30 to 40% of the total passenger volumes.
Another role of the ship travel and tourism is ferrying or the

use of ferry boats. These are used in the English Channel, the
Irish Sea, the Hebridean Islands of Scotland, the North Sea, the
Maritime provinces and British Columbian coast in Canada, and
on the Great Lakes. Short duration sightseeing cruise ship
attractions are abundant in North America. These cruises last
for one day or even a shorter length of time. Example of these
are steamer and riverboat cruises in the Mississippi River and
Thousand Islands (New York, Ontario). The appeals of steamer
sightseeing cruise are seeing the scenic beauty of the area,
learning about the history of the surrounding area, and using
its dining/bar service.
The demand for cruising is expected to increase. Only a small

part of the North American population has taken a cruise.
Market research shows that there are 24 million potential
passengers with sufficient time and money. In addition,
satisfaction level is high for cruise passengers which would
result in a high percentage of repeat cruise goers. Foreign
markets should also be seen as big potential markets. Europe,
Japan, and Latin America, particularly Venezuela and Brazil, are
good potential markets. Overcapacity is the major problem for
the industry at present. However, the growing incentive-travel
cruise market, which now accounts for approximately 15% of
all births, is expected to help overcome the effects of
overcapacity.
C. Travel by Automobile
The real inventor of the automobile was Carl Benz of

Mannheim, Germany. In 1885 to 1886, he combined the
bicycle and the international combustion engine and designed
9
the complete vehicle engine consisting of the engine, chassis,
and transmission. Then came Henry Ford who, in 1908,
produced his Model T car built with an assembly technique for
mass production. The price of the Model T car decreased from
$825 in 1908 to $260 in 1925. The automobile industry grew
rapidly. However, it was only after World War Il that the
popularity of the automobile increased significantly.
The introduction of the automobile brought about the decline

of the train's popularity in most developed countries. The
advent of the automobile spread the benefits of tourism more
widely and enabled people to travel individually or in private
smaller groups. The automobile brought about a more random
pattern of travel movements, opened up new destinations, and
hastened the development of elaborate networks of
automobile-oriented facilities and services along highways and
roads. Example of new facility types that developed in the
United States and Canada after World War Il were the tourist
court and the motor hotel or motel.
Traveling by automobile is now the chief travel mode in North

America. Many travel surveys have shown that automobile
trips comprise 90% or more of the pleasure/ personal and
business trips of Canadians and Americans. Surveys show that
the automobile is the most popular mode of vacation travel
because it provides travelers greater freedom in the choice of
route, destination, and timing of the journey. Family auto
travel is also the most inexpensive and convenient form of
travel in the United States.
The growth of car ownership necessitated road improvements.

The United States federal government participated in the
construction and maintenance of roads when it passed an act
in 1916, matching state appropriations for new roads, dollar to
dollar. It was climaxed by the interstate act in 1949 which
allowed travelers to move coast to coast and border to border
without a traffic light or stop sign. The first turnpike was built
in Pennsylvania in 1940. In 1954, the federal government, in
order to encourage road construction, increased its share of
the highway construction to 90%, During the 1930s, the
Germans constructed their network of autobahn. These four-
lane divided highways were the world's first high-speed roads.
The automobile stimulated tourism by creating attractions

along tourist routes made accessible by the automobile.
Examples are homes of historical figures, scenic areas, and
historic shrines and monuments.
Two important aspects of automobile travel are recreational

vehicles and car rentals. These two areas have developed so
extensively in North America and elsewhere that they are now
significant elements of tourism. The recreation vehicle or RV
was an extension of the preference of North America for the
automobile. Ownership of recreation vehicles has increased
since 1979. A survey conducted by the Research Center of the
10
University of Michigan indicated that approximately 906,000
Canadians and 6 million US households owned one or more
recreation vehicles in 1980.
Since World War Il, camping has become popular in North

America and elsewhere. The United States has more than
14,000 public and private parks and commercial campgrounds
containing approximately one million campsites. The
increasing popularity of the recreational vehicle led to the
establishment of new campgrounds during the 1970s,
including the franchised condominium and timesharing
condominium campgrounds. Many European visitors to
Canada and the United States rented these vehicles for cross-
continent trips. Many companies have been formed to provide
this service to overseas pleasure travelers.
Related to the growth of the automobile has been the growth

of the car rental market in the 1960s and 1970s. The car rental
industry began in 1918 when a Chicago Ford dealer started to
rent secondhand model Ts. In 1924, the company was bought
by John D. Hertz, the founder of the Yellow Cab Company. Avis,
the biggest competitor of Hertz, was founded in 1946 by a
retired US Air Force officer, Warren E. Avis. Initially, Avis
specialized in airport rental locations. In 1948, Avis started
downtown rental locations. It was during the same period that
National Car Rental was organized, By the late 1950s, car rental
companies were found in all major airports.
The car rental business is a worldwide industry. Four

companies dominate the US market with 85% market share.
These are Hertz, Avis, Budget, and National. These four
companies also represent the "Big 4" within the international
markets. The Big 4 rental firms continue to be challenged in
the US and abroad by companies like Alamo, Dollar, Thrifty,
and General. Another group of car rental companies consists of
firms that rent used cars at lower prices. Examples are Rent-a-
Wreck, Ugly Duckling, and Rent-a-Dent. The car rental industry
over the past 20 years is highly competitive. Individual
companies claim to be the first in various innovations such as
rent-it-here, leave-it-here service. Each company, through its
advertising, claims to be the first or the best in providing new
service.
The growth of the industry in the late 1960s and early 1970s
can be attributed to the introduction of the fly/drive concept.
It encouraged travelers not to drive their personal car to their
destination but to travel by plane and rent a car on arrival. The
fly/ drive concept became very popular in the Florida market,
the birthplace of many new car rental companies. The highest
utilization of rental cars takes place on Mondays to Fridays
usually by business travelers which comprise about 75% of the
total business. The demand on weekends comes mainly from
pleasure travelers. A high percentage of car rentals takes place
at airport terminals. Thus, it is understandable that the success
of this business is closely related to the airline industry.
11
Some car rental firms have added cellular car telephones for
business travelers. Another amenity is giving computerized
driving instructions to customers. In order to overcome low
profits or losses, auto rental companies have employed a
number of different strategies such as higher prices, flat-free
commissions for travel agents, and mileage limitations.
D. Travel by Bus/Motor Coach
Bus travel is the most flexible and economical form of

transportation. In the United States, buses were first used to
carry passengers intercity in the early 1900s. There was little
intercity travel before the 1920s. In 1928, the Greyhound
Company, the largest privately-owned bus company in the
world, was established. By this time, buses traveled from New
York to Los Angeles in about five days. With road
improvements before World War Il, cross-country trip time
was reduced to 90 hours.
The terms "bus," "coach," and "motor coach" are used

interchangeably. In North America and elsewhere, the bus
performs two major roles. The first is to provide a regular
schedule of intercity passenger transportation services. The
second is to provide charter and tour services. Intercity service
is indirectly competitive with private auto, rail, and air service.
Discount airfares have proven to be a major competition for
intercity bus Service. Thus, intercity bus service has declined,
while charter and tour services have grown. Bus ridership
patterns also changed to short-haul distances of 250 miles or
less. Continental Trailways and Greyhound Lines Inc. are the
two major intercity companies, with Greyhound accounting for
60% of the market.
The main reasons for selecting bus travel over other modes of
travel are convenience and economy. Few people choose the
bus for business travel. Bus riders tend to be older and have
less income. Bus service is available in practically every town of
1,000 people or more, and a passenger station or ticket agent
for bus service is at hand in each of these communities. Most
people do not choose bus travel for long trips. Surveys have
shown that women bus riders outnumber men. Recent
advertising indicates that bus companies are targeting their
marketing programs toward the family summer vacation
market, young couples, older people on summer vacation, and
the retired people.
Charter and tour service is the fastest growing segment of the

bus or motor coach industry. Several tour packages are
developed by tour brokers who charter buses and arrange all
the other components of the tour, including the itinerary,
lodging, sightseeing, admission, tour guides, meals, and the
like. These packages are usually sold through travel agents.
Motor coach tours usually last five to six days and are limited
12
to a particular geographical area. The two principal markets for
charter and tour services are school-age children and senior
citizens. Other markets include international visitors. Gambling
tours by motor coach to the casino centers of Las Vegas, Reno,
and Atlantic City are very popular.
The increasing demand for motor coach tours, coupled with

the improvement of buses, could result in the future expansion
of the bus charter and tour segment of tourism. The present
coaches are wider, have more leg room, more baggage space,
lavatories, climate and noise controls, better lighting, more
sophisticated public address system, and panoramic view
windows.
E. Travel by Air
The airplane had a revolutionary impact on tourism from

World War Il onward. The history of air transportation can be
divided into three parts—Pre-World War Il, World War Il, and
Post-World War Il. On December 17, 1903, the Wright Brothers
took a flight on a beach in North Carolina which lasted 12
seconds with a distance of 120 feet. In 1927, the air industry
developed regularly scheduled passenger trips between
Boston and New York. Other governments helped this growth
in the 1920s by subsidizing air companies.
In the United States, almost all early airlines started by carrying

mail for the post office. One of the first was Varney which
began in April 1926 and later became United Airlines, Western
Airlines began its passenger service on April 17, 1926 when it
carried a woman passenger along with the mail. Pan American
Airways had the first international flight in 1927 when it
carried mail from Key West, Florida to Havana, Cuba.
World War Il influenced the development of the airline

industry. It helped further improve airplanes by accelerating
technological research to improve their size and speed and by
using the knowledge gained by thousands of servicemen who
became familiar with planes and air travel.
The tremendous time-saving aspects of air travel and its cost

effectiveness, when compared to other modes of
transportation such as the train, ship, and automobile, aided
the growth of the airline industry during the post-World War I l
years. In the late 1950s and early 1960s, commercial jet
aircrafts were introduced, increasing the speed of travel and
creating smoother flights and greater seating capacity for
passengers. The commercial airline industry improved further
in the 1970s with the introduction of wide-bodied aircrafts
such as the Doughlas DC-10, Boeing 747, the Lockheed Tristar
1011, and the European Aerobus. These planes further
increased passenger comfort as well as seating and freight
capacity.
As the airline industry grew, the travel industry depended on it

13
more, Cruise lines, rental car companies, airport hotels, and
ground transportation operators depended on the airline
industry to generate the bulk of the business. Executive
business travel and international tourism are dependent on it.
The impetus of air travel to people traveling on business is its
time-saving advantage; for the pleasure traveler, it is the
affordable price that has the greatest impact.
The 1980s had witnessed still further improvements in aircraft

technology with the introduction of the DC-9-80 and Boeing
757 and 767 designed for fuel-efficient operation offering
approximately 30% lower fuel consumption for passenger than
the older models. The introduction of the longer-range Boeing
747-400 that has a range of 8,000 miles and seating capacity of
418 will change travel patterns. Almost all jetliners were built
by Boeing, with headquarters in Seattle, Washington;
McDonnell Douglas in Long Beach, California; Lockheed in
Burbank, California; and the A-300, the Airbus, built by a
consortium of European countries and assembled in Toulouse,
France. The three American Companies produced about 75%
of the world's commercial jet planes. Boeing was the dominant
company in jetliner business with sales between $6 to $7
billion a year.
The Boeing 747 jumbo jet is a long-haul plane. The tail stands
63 feet and 5 inches tall, about as high as a five-story 'building.
It weighs 775,000 pounds and cruises at 625 miles per hour,
with some models having a range of 6,210 miles without
refueling. It is distinguished by the hump on the nose that
houses the flight crew and an upper lounge for the first-class
passengers. Each 747 costs approximately $90 million,
depending on spare parts and extras ordered. It is safer and
gives a smoother ride because its huge size lessens its reaction
to air turbulence. It carries cargo in its belly.
Food service on the large planes is speeded by the use of

modules, similar to cargo modules. These are snapped into
place on a lower level in the aircraft. The galley modules
contain prepared foods that are heated in flight by convection
and microwave ovens located near the module storage area.
Elevators raise the food to the passenger deck when it is ready.
The factors associated with the recent boom in air travel

include the world economy, rising standard of living, and the
quality of air service. Growth in the airlines has been at an
annual rate of 5% since 1959. The industrial nations, which
account for the majority of air travel, had a growth rate of 7%
from 1960 to 1970. The standard of living in the world
increased by 5% and the per capita income rose to 3%. The per
capita constant dollar gross domestic product (GDP) of
industrial countries increased faster than the GDP of
developing countries. While the economy of the United States
grew at an average rate of 3.3% from 1960 to 1970, the GDP of
other major industrial nations grew at a faster rate. The GDP of
Japan rose to 10% per year for the past two decades. In
14
addition, airfares throughout the world decreased to 9%
between 1960 to 1970. The average airfare in constant dollars
decreased at an average of 26% a year from 1960 to 1970 and
continues to decrease. Because of these factors, air travel is no
longer considered a luxury but a necessity.
The introduction of charter services further pushed down the
prices of airfares. Charter services are an alternative to

regularly scheduled services. They offer lower rates for two
reasons. First, they do not have the large personnel investment
required an airline with regularly scheduled flights. Second, by
flying with a full load of passengers, the charter companies are
able to fly their planes for less cost per passenger. The growth
of charter flights was impressive. Freddie Laker, a British
entrepreneur, introduced a London-New York route, selling it
for one-half the normal airfare. Other countries and airlines
followed with economy fares to and from European cities.
Since 1950, incomes have increased rapidly while airfares have
declined. This made air travel more attractive than ever. While
the price of an airline ticket decreased, the quality of service
with regard to speed, size, and comfort improved.
IV. Airline Regulation International tourism requires a system of international air

transportation. This system requires negotiations among
nations and carriers in the form of bilateral agreements.
Overflight privileges must be obtained from all nations over
which an airline will cross during international flights. Airlines
are or may be assessed overnight charges for the privilege of
flying over other nations including countries which do not have
formal diplomatic relations with each other like Cuba and the
United States. Lending rights, fuel purchase agreements,
maintenance provisions, and other considerations require
bilateral negotiation.
Governments throughout the world have agreed that a
complete free market for international air travel is not

possible. The original idea for a worldwide system of airline
regulation took place in the Chicago Convention of 1944 and
the Bermuda Agreement of 1946.
The Chicago Convention marked the beginning of continuous
dialogue about various freedoms of the air but was not

successful in establishing a multilateral system of commercial
aviation rights. The Bermuda Agreement established the first
worldwide model for future bilateral agreements regarding the
exercise of the eight freedoms of the air:
1. First Freedom: The right of an airline to overfly
one country to get to another;

2. Second Freedom: The right of an airline to land
in another country for a technical stopover
(fuel, maintenance, etc.) but does not pick up
or drop off traffic;
3. Third Freedom: The right of an airline,
15
registered in country X, to drop off traffic from
country X to country Y;
4. Fourth Freedom: The right of an airline,
registered in country X, to carry traffic back to
country X from country Y;
5. Fifth Freedom: The right of an airline,
registered in country X, to collect traffic in
country Y and fly on to country Z, so long as
the flight either originates or terminates in
country X;
6. Sixth Freedom: The right of an airline,
registered in country X, to carry traffic to a
gateway—a point in country X—and then
abroad. The traffic has neither its origin nor
ultimate destination in country X;
7. Seventh Freedom: The right of an airline,
registered in country X, to operate entirely
outside of country X in carrying traffic between
two other countries; and
8. Eight Freedom: The right of an airline,
registered in country X, to carry traffic
between any two points in the same foreign
country; also known as cabotage.
Only the first two technical freedoms have been widely

accepted. The third, fourth, fifth, and sixth freedoms are still
subject to bilateral bargaining. The seventh and eighth
freedoms are usually allowed only in special circumstances.
The bilateral air agreement concepts which resulted from

these meetings meant that airline service could not be offered
between a nation of origin and one of destination unless there
was a specific agreement between the two nations regarding
the details of the service. Bilateral agreements were
established to provide for the orderly development of the
international air transportation industry. The need for bilateral
agreements was intensified because small nations felt that
they should have their own national airline or flag carrier. A
large number of flag carriers are government-owned
enterprises. Some are subsidized by the government because
of national pride, fear of dependency on foreign carriers, as a
means of supporting economic development, and to ensure air
freight for export products. Airlines of the United States and
other countries are owned and operated by private enterprises
and must operate for a profit.
The use of the bilateral air agreements was not enough to

meet the need for cooperation between international airlines
with different profit orientation. After the Chicago Conference,
several scheduled carriers met in Havana and the International
Air Transport Association (IATA) was formed to ensure
cooperation among international carriers. IATA is a democratic
organization whose membership is open to any member of the
United Nations. It is supported by dues from 140 active and
associate member airlines. It links together with many non-
16
IATA carriers throughout the world in Multinational Interline
Traffic Agreement. This agreement allows passengers to use a
single ticket and travel by several carriers around the world, it
also makes the movement of air freight worldwide easier.
The primary purpose of IATA is to establish a system of
international rates and fares. Through IATA, the airlines enter

into agreements concerning rates, conditions of services, and
routes to be given to each airline. The agreements are subject
to the approval of their respective governments.
Chapter Activities 1. Conduct a study on the importance of safety and

security in all forms of travel.
2. As the vice president for marketing of an airline,
what programs would you undertake to even the
peaks and valleys in demand?
3. Research on the significant appeals of cruising.

Learning LLC, 2019
Zenaida Lansangan-Cruz, Micro Perspective of Tourism
and Hospitality, REX Bookstore, 2019
17
PLM Business School
Module 5: ACCOMMODATIONS

OBJECTIVES
1. cite the history of the accommodation or lodging industry;
2. describe the different types of accommodations;
3. explain the organization of the lodging industry;
4. discuss the management methods in the lodging industry;
5. differentiate chair accommodation operations from referral groups;
6. explain the hotel terminology;
7. discuss hotel profitability and profitability ratios;
8. calculate the hotel's breakeven point;
9. explain the accommodation reservation and promotion; and
10. discuss the linkages between hotels and airlines.
I. History of the The lodging industry developed because of the need to provide accommodations for travelers.
Accommodation Early roadside inns were mentioned in several instances in both the Old and New Testaments.
s or Lodging The early reference to the inn is found in the Bible, when Joseph, Christ's foster father, was
Industry told, "There is no mom at the inn." Excavations in Pompeii reveal that the Romans had
developed the concept of inns into a trade.
The history of the hotel in its present form goes back to the Middle Ages. In the thirteenth and
fourteenth centuries, German and English literature made frequent reference to the inn. The
development of the inn in the late medieval period was due to the improvements in security in
many European societies. It had become safe to travel.
During the height of the Industrial Revolution in the 1700s and early 1500s, there was a
greater demand for accommodation as people migrated to the cities to work. The emerging
middle class could afford accommodations when traveling away from home. The Industrial
Revolution and the development of spas helped the growth of the hotel industry. By 1750,
Brighton, Blackpool, Southern, and other English seaside resorts were attracting bathers.
America's first hotels were seaport inns. An example of an early American inn is Manhattan's
Fraunces Tavern, Also, pre-revolutionary boarding houses are preserved in Guildfored,
Connecticut, Colonial Williamsburg, Virginia, and elsewhere.
By the middle of the seventeenth century, the public stagecoach had appeared. In the next
200 years, the lodging industry was influenced by the development of road transport. Coach
service was established by innkeepers to attract business. The inn was used not only as a
boarding house but also as a booking office, waiting place, eating establishment, and as center
of the town's social activities.
With the rapid development of the railways in the 1820s and 1830s, a different kind of hotel
developed. In Europe, large hotels were built next to or across the downtown railroad station.
In the United States, hotels were constructed along the railroad network.
The introduction and development of the automobile industry led to the establishment of the
1
roadside hotel. With the construction of highways and expressways, the lodging industry
responded to the needs of the motorist. Thus, the motor hotel or motel emerged.
After World War Il, advances in air transportation led to the increased number of travelers
who demanded more and more hotel space. The widespread use of the car led hoteliers to
build more roadside motels. Business travelers demanded to build more roadside motels.
Business travelers demanded specialized accommodations, including meeting and convention
facilities. Recent major hotel growth was in the airports, downtown, and resort areas.
Although the hotel industry was booming, several small, family-owned hotels could not
compete with the fast-growing chains. Ellsworth Statler was the first hotel chain pioneer in the
United States. Hotels bearing his name had been built in Buffalo, Cleveland, St. Louis, Detroit,
Boston, and New York.
In the history of deluxe hotels, the most famous name is that of Hilton Corporation. Conrad
Hilton built an empire that includes the Waldorf Astoria in New York and the largest hotel in
the United States, the Conrad Hilton Hotel in Chicago with 3,000 rooms. Among the first-class
hotels, the fastest growing group was the Sheraton chain founded by Ernest Henderson. The
chain is now owned by International Telephone and Telegraph Company (ITTI). In 1952,
Kemmons Wilson founded the Holiday Inn chain and its concept of clean, comfortable, and
reasonably priced accommodations for the ordinary traveler.
The popularity of the sun vacation in the 1960s brought about the development of the resort
hotel. It catered to the vacation traveler who stayed for a number of days. It differed from the
traditional hotel because it provided a wide range of special services and it targeted a special
interest group such as sun enthusiasts, golfers, tennis players, scuba divers, and
honeymooners.
The change in the function of a hotel brought about a change in its architecture. Owners
renovated older downtown properties and adapted them to the needs of the modern-day
traveler. Hotels changed in appearance as extra features were added such as glass-covered
elevators, atrium lobbies, a variety of restaurants and bars, functional meeting rooms, and a
full array of recreational opportunities. The atrium concept in hotels, introduced by architect
John Portman, boosted the popularity of Hyatt.
Another recent development is the overseas expansion of the American chains. Hotels which
met international standards became an export item of the United States. Hilton International
opened its first hotel in San Juan, Puerto Rico in 1949. In addition, it opened a hotel in Berlin in
1958, followed by several properties in other countries in Europe. Intercontinental Hotels
opened many hotels in Latin America before 1960. At present, it has 109 properties in 49
nations. Sheraton opened its first hotel in Canada in 1949. Holiday Inn opened its first property
in Montreal in 1960. At present, it has 221 international hotels in 52 countries outside the
United States.
II. Types of Accommodation can be classified into various types; the most popular of which are the
Accommodation following:
1. Hotels
Hotels can be a 10-room boarding house or a building that has a thousand or more rooms,
convention and meeting facilities, recreation facilities such as swimming pools and tennis
courts, 24-hour room service, with several restaurants and bars and various types of
entertainment. Hotels have been designed and built to meet almost any kind of budget or
comfort level that the traveling public might want.
2
2. Motels or Motor Hotels
Normally, motels only offer rooms only and free parking to guests. These are often found along
busy highways and cater primarily to transient and cost-conscious travelers.
3. Resort Hotels
Resort hotels are intended for vacation travelers. These hotels range from budget to luxury
and can accommodate these travelers and even convention delegates. These are usually
located near beaches and offer more amenities, shops, and recreation opportunities.
4. Pensions
Pensions are found principally in Europe. These are usually family-owned accommodation
facilities. In German speaking parts of Europe, a pension is also called Gasthaus. Pensions and
Gasthaus usually offer continental breakfast but do not have facilities for other meals.
Pensions are known for their informal family atmosphere.
5. Paradors
Paradors are unique to Spain. These 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. These are often hotels with apartments
(condominiums) 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 then contract the developer or a management company to operate the hotel and rent
the space to visiting tourists. The individual owners have the right to stay in their own units
during specific periods of the year with a reduced room rate. The developers or management
company receives a fee for managing and renting out the units. The resulting profit is shared
among the individual unit owners. Condominium hotels generally appeal to families because of
the apartments.
7. Campgrounds
Camping is a popular form of overnight accommodation in both Europe and North America. in
North America, there are at present more than 20,000 campgrounds, some of which are
owned by hotels. Campgrounds usually appeal to families who travel in recreational vehicles
RVs. Campgrounds and RVs stopping spots are often found in government parks and forests.
8. Bed and Breakfast
Bed and breakfast are a form of lodging which originated in Europe. This form of
accommodation provides a bed for the night and breakfast the next day. It was only in the
1970s that the idea was brought to the United States. Retired and semiretired people with
large houses have contributed much to the growth of these establishments.
9. Tourist Inns
Tourist inns are lodging establishments that cater to transients. These do not normally meet
the minimum requirements of an economy hotel.
10. Apartment-Hotels (Apartels)
Apartment-hotels are buildings which contain several independent and furnished or semi-
furnished apartments. These are leased to tourists and travelers on a long-term basis and offer
basic services to its tenant, similar to hotels.
3
11. Health Spas
Health spas are hotels and resorts which cater to people who go to spas or mineral springs for
medical treatment or weight reduction. The idea of visiting health spas originated in Europ9.
The Romans and the Greeks visited the spas as early as the first century. The spas became the
center of the social life of the English, the French, and the Germans during the seventeenth
and later centuries. At present, several health spas in Europe offer modern techniques such as
medically supervised rejuvenation programs which include supervised diets and rigorous
exercises to shed fat and reduce weight.
The spas in many European nations are controlled by the state. In Czechoslovakia, there are
more than 900 curative mineral springs and 50 spa towns and resorts that are visited by
thousands of people from 50 countries. They are attracted by the curative effects of the
mineral waters on the spas. Private European hotel chains have entered the health spa
business in the continent.
12. Private Homes
The private home is 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. Time-sharing
Time-sharing is a more recent unique type of accommodation. It started in Europe in the 1960s
when people found it difficult to make reservations every year in popular hotels during
summer. Time-sharing is the selling of vacation lodging, usually condominiums, for a specific
week or weeks over a given number of years. Originally, condominiums in resorts were bought
and marketed as either a second home or primary home depending on the needs of the buyer.
The resort would rent the units during the time when the owner was not in residence, thus
providing an income to help with the payments. Later, a new marketing approach that would
sell more lodging facilities at a higher profit to the developer was adopted. By selling weeks
instead of permanent residence, the total asking price could be higher. For example, a unit
which sells for $100,000 as residential structure would sell for $15,000 per week, thus bringing
a total sales price or profit of over $500,000. Time-sharing also increases the number of
potential buyers since the average person who is restricted by both time and money would
then be able to afford a week at a resort and still receive the benefits of having made an
investment in property.
Time-sharing began in the United States in the early 1970s when oil prices increased. Florida
developers, unable to sell their whole unit condominiums, decided to adapt them to time-
sharing. However, they knew they would have difficulty selling the concept of right-to-use
time-sharing to North Americans. Therefore, the early North American time-share developers
split each whole condominium unit into 52 individual weekly portions and sold the portions or
shares. In this way, the buyers no longer had to pay $150,000 for the entire unit but only
$3,000 for one week or $6,000 for two weeks. There are two basic types of time-sharing
programs that have been developed. First, the fee-simple program provides the buyer with
both an occupancy and ownership right to a specific resort unit for a fixed period annually. This
unit can be sold or leased and used for tax purposes like any other real estate purchase.
Second, the right-to-use program guarantees an annual occupancy right for a specific period
but does not convey ownership interest in the proper. Both types of time-share ownership
interest in the property and both payment of a pro-rate share of the annual maintenance costs
of the entire property.
A later development which has increased the attractiveness of timeshares is a system of

exchange. This allows a person who buys a time-share in a particular resort to trade for
4
another time-share in another resort. Several companies provide computerized trading
services for owners.
14. Hostels
Hostels provide basic amenities such as a bunk bed and a commonly shared toilet and
bathroom. The traveler provides his or her own bedding. Hostels appeal primary to young
travelers.
The idea of a hostel was conceived in 1909 by an elementary school teacher in Germany who
wanted to provide low-cost overnight lodging to travelers throughout Europe. In 1930, there
were more than 2,000 youth hostels that were established in Germany. In 1934, the first
hostel was established in the United States.
At present, hostels are run by individuals or nonprofit organizations. A few are run by the
national organization.
Classification of Hotels
There are different ways of classifying hotels, such as location, type of guest, and price.
According to location, hotels may be center-city, suburban, airport, or highway. Based on
guest type, hotels are classified as commercial, conventions, or resort. According to price,
hotels are categorized as economy, standard, first class, or deluxe.
Rating Systems
A number of independent rating guides have been published by individuals, automobile

associations, and travel organizations using various combinations of star, dots, and
alphabetical indicators. Most rating systems are based on the quality of the physical structure,
furnishings, maintenance, housekeeping, and overall service. Experienced individuals inspect
the hotels and restaurants every year. Many are regional field representatives who submit
detailed reports to the appropriate office. The raters are not known by the establishment
being rated.
The following are used to rate hotels, motels, inns, resorts, and guests’ ranches:
1. I-star = Good, better than average;

2. 2-star = Very good;
3. 3-star = Excellent;
4. 4-star = Outstanding; and
5. 5-star = One of the best in the country.
III. Organization A hotel organization can be large and complex. A typical hotel has seven major divisions, of the
Lodging namely: personnel, engineering and maintenance, accounting, security, food and beverage,
Industry marketing and sales, and room division. Each division is run by its own division head.
1. The personnel division recruits’ new employees and administers policies and employee
benefits for the company.
2. The engineering and maintenance division makes the necessary repairs and
implements the hotel's energy management program.
3. The accounting division handles the financial activities of the operation which include
payment of bills, sending out statements, payroll, and compiling monthly income
statements.
4. The security division provides protection for both employees and guests.
5. The food and beverage division is responsible for the food and beverages that are
served.
5
6. The marketing and sales division is responsible for selling the rooms and food service.
It is involved in advertising, development of promotional materials, and making direct
contacts with prospective clients.
7. The room division is responsible for the front desk, telephone, reservations, and
housekeeping department.
Figure 3 shows the lines of authority and communication.
Figure 3. Typical Hotel Organization Chart

Source: International Hotel Development and Management
IV. Management Traditionally, hotels are operated by the people who own the property. In some cases, the
Methods operator may lease the hotel from the owner and then manage it. In other cases, special
arrangements are made such as franchising and management contracts.
Franchising
Hotels that are franchised are usually owned and operated by the same person or company.
The hotel operator or franchisee signs a contract with the franchisor to maintain certain
operating standard and to use the franchise name on the hotel or motel.
The franchisee receives benefits such as extra business as a result of the franchisor's national
or international advertisements, the use of the franchisor's operating and accounting system,
and a line into the franchise chain's reservation system. In return for these benefits, the
franchisee will pay a royalty and an advertising fee plus a percentage of annual room sales or a
specified number of dollars for each room sold.
Management Contracts
Hotel management contracts are a recent phenomenon. Although the first management
contract was signed in 1946 by the International Hotels, it was only in the 1970s that
management contracts became widespread.
Under a management contract, the hotel management company does not have a financial
6
interest in the hotel's land and building. The landlord owns the property but does not have any
interest in managing it. In return for operating the property for the landlord, the management
company receives a basic annual management fee, plus an incentive, which is based on the
hotel's gross profit and/or net profit but may also be based partly on total sales.
Under a management contract, the investment rent is transferred from the operator to the
property owner. The management contract also allows hotel-operating companies to widen
their investment base by increasing the number of rooms managed, thereby increasing their
profits. Developers who do not have experience .in hotel management usually build large
hotels and then turn them over to hotel management companies to run them. It was the
management contract that enabled hotel companies such as Hilton International to expand
rapidly around the world. The expansion was due to its ability to get capable management
teams.
V. Chain Most hotels and motels are part of a chain operation. The individual units in the chain may all
Accommodation be owned by one large company, be partly owned and partly franchised, or may all be
Operationsfranchised. In any case, the owning company or franchisor establishes the standards and
operating policies to which each individual unit must conform. Because of their size, chain
operations often have the potential to implement employee selection and training programs,
to buy major equipment and furniture in bulk, and to conduct market research on such
matters as guest room layouts and productivity improvements. All these benefits are passed
on to the owners or managers of the chain units who also benefit from chain marketing and a
chain reservation system.
Referral Groups
Referral groups have become popular because the individual owner or operator can remain
independent while achieving many of the benefits of a chain group. This is through voluntary
membership in the referral organization. Examples of these benefits are advertising and
reservation referrals. One of the largest referral groups in North America is Best Western
which has approximately 3,000 properties with more than 200,000 rooms.
VI. Hotel Room rates for hotels are quoted in terms of what meals are included in the price. European
Terminology Plan (EP) means that there are no meals included. This is the most commonly used room rate
quoted by North American hotels, American Plan (AP) means that breakfast, lunch, and dinner
are included in the quoted price. In Europe, AP is known as full pension. Meals are usually a
fixed menu with little or no choice. Modified American Plan (MAP) includes breakfast and
dinner but not lunch or breakfast and lunch but not dinner. In Europe, this is known as demi
pension.
A continental breakfast is offered by most European hotels and is included in the room rate. In
Europe, this type of plan is known as hotel garni or pension garni which consists of rolls,
coffee, and sometimes juice.
The Bermuda Plan (BP) is offered by hotels in Bermuda and some other places. It includes both
a room and a full English or American type of breakfast. Bed and breakfast hotels operate on a
Bermuda Plan in Britain and the United States and on continental breakfast plan in continental
Europe.
Room Rates
The maximum rates that hotels charge for a room normally depend on the number of people
occupying it. These rates are called rack rates. These are posted on the inside of the entrance
door of each guest room. The rack rate is not always the rate that is paid for a room. Hotels,
7
like airlines, have a system of discounted prices.
The revenue that is not obtained for a guest room is gone and cannot be recovered. Thus,
hotels offer discounted rates to special classes of people to encourage them to stay in the
hotel. For example, there are special rates for business travelers, government employees,
airline employees, and other similar groups.
For conventions and conferences, hotels compete with one another by offering the lowest
room rate. Profits on banquet meals and sales of liquor make up for the discounted room
rates.
VII. Hotel Room Occupancy

Profitability
A simple measure of a hotel's profitability is its room occupancy. It is obtained by dividing the
number of rooms occupied by guests on any night by the number of rooms in the hotel and by
multiplying the result by 100 to determine the occupancy on a percentage basis. For instance,
if a 125-room hotel has 75 rooms occupied on a particular night, its occupancy will be:
_75_ X100 = 60%
125
Occupancy can also be determined for a week, a month, a year, or any other period of time. In
this case, the numerator is the number of rooms occupied for that period and the
denominator is the number of rooms available during that period, that is, the number of
rooms in the hotel times the number of days in the period.
For example, if we want to know the occupancy for a week in a 125-room hotel in which 463
rooms were occupied during that week, the occupancy percentage would be:
_ 463 x 100 = (463/875) x 100 = 52.9
(125 x 7)
During peak season, a hotel may have 100% occupancy or close to it. However, occupancy can
be very low at other times of the year. In general, hotels are considered profitable if they can
operate with an average annual occupancy of 65% or higher.
Double Occupancy Rooms
Occupancy percentage is not usually the best measure of marketing success for a hotel
because it does not show whether the revenue is being maximized. Whether a room is
occupied by one person or by two persons, the occupancy percentage will not change, but the
revenue obtained will be changed. It is for this reason that hotels determine the occupancy
and the double occupancy rate which is the number of rooms occupied by more than one
person.
Double occupancy is determined by dividing the number of guests accommodated during a

certain period by the total number of guest rooms during that same period. For example, if
463 rooms were occupied by 713 guests during a week, the double occupancy is:
_713 = 1.54
463
The 1.54 double occupancy ratio means that 54% of the rooms were double occupied.
8
Average Rate Per Room Occupied
Another way of measuring maximization of revenue is the average rate per room occupied.
The average rate will increase if more expensive rooms are sold or if more rooms are double or
triple occupied. The average room rate is obtained by dividing the revenue for a period by the
number of rooms occupied during that period. For example, if a hotel had 463 rooms occupied
during a week and a room revenue of $37, 640 for that week, the average room rate is:
$37,640 = $81.30
463
Average Daily Rate Per Guest
Another useful statistics is the average daily rate per guest. This is obtained by dividing total
room revenue for a period by the total number of guests accommodated during that period.
For instance, if the total revenue for the week was $65,529 for a hotel occupied by 1,050
guests, then the average daily rate per guest for the week is:
$65,520 = $62.40
1,050
Average Length of Stay

To maximize revenue and increase room occupancy, hotels try to increase the length of stay of
customers through advertising and other marketing methods. If customers can be motivated
to stay an extra day or two, this will mean more revenue for the hotel.
VIII. Breakeven Hotels are often interested to know their breakeven point. It is that point at which a business
Point will make neither a profit nor a loss. The equation for determining it is:
_____Fixed costs____
Contribution margin
Fixed costs are those that stay the same regardless of the volume of business. Examples are
management salaries, interest, depreciation, insurance, property taxes, mortgage payments,

amortization, and physical plant maintenance. Contribution margin is defined as the average
room less the variable costs of having a room occupied. Variable costs are those that change
according to the number of guests in a hotel. The variable costs for a hotel room are primarily
the costs of housekeeping such as maid wages, linen, laundry, and supplies.
For example, if the fixed cost of a 125-room hotel is $1,950 for a year, its average room rate is
$80, and the variable cost pet room occupied is $20, its breakeven point would be:
___$1,950,000___ = $1,950,000/$60,000 = 32,500
$80.00 - $20.00
The 32,500 rooms to be occupied during the year can be converted into an occupancy figure as
follows:
_32,500_ X 100 = 32,500 x 100 = 71.2%
125 x 365 45,625
This means that the hotel must average 71.2% occupancy during the course of the year.
A breakeven analysis is an important managerial tool because it shows the percentage of
occupancy that a hotel must have to cover expenses.

9
IX. Many large hotels have computerized reservation systems. However, despite these systems,
Accommodation overbooking still occurs. Overbooking is selling more rooms than the actual available rooms.
Reservation Hotels do it for a reason. If hotels book only to capacity, they would often end up with empty
rooms because of "no-shows" or people who do not advise that they want their reservations
cancelled. Hotels know from experience that there is a no-show percentage that can be
compensated by overbooking. However, the numbers do not always work out correctly. The
result is disappointed customers and negative publicity.
Hotels use different methods to avoid overbooking and reduce the no-show factor. One
method is for a hotel to advise the customer that it will honor a reservation only if the
customer arrives at a certain stipulated time. Another method is for the hotel to ask for a
deposit when a room is booked. Upon receipt of the deposit, the hotel will give the customer a
written document confirming that the reservation has been made. The hotel guarantees that
the room will be available and the customer guarantees that the room will be paid even if he
or she does not show up.
Registration Cards
Accommodation establishments use the guest registration card as a marketing tool. A guest
registration card provides information about the guests such as his or her name, address,
geographical origin, and other facts. This information can be used to produce a direct mail list
which is used for sending future promotional material. The list can also be expanded to include
the names and addresses of clients who have made reservations, canceled them, and even
customers who made reservations but never arrived.
The geographical origin of the customers can be used to show where advertising efforts should
continue to be directed rather than wasted by promoting the accommodation in places where
a few customers originate.
The guest registration card information can also be used to produce a typical customer profile.
The customer profile can be presented to different print or broadcast advertising media which
can then determine if the market they serve fits this profile. If it does, the establishment may
then be able to use that medium for its advertising.
X. Hotels and At present, there is a natural link between airline companies and hotels. This is due to the
Airlines changed nature of transportation. One of the first links was Pan Am which tied in with the
International Hotels in the 1940s.
According to Lane (1994), there are three major reasons why airline companies link with
hotels. These are:
1. Their desire to protect insisting business and develop future business, thus increasing
their profits;
2. The expectation that hotel ownership will boost tourism development in their home
countries; and
3. The desire to expand national culture.
Today, there are many airline-hotel links such as KLM Hilton International, Air France and
Meridian Hotels, Air Lingus (Ireland) and Dunfey Hotels, and Japan Airlines and Nikko Hotels.
The links between hotels and airlines are not always formed by ownership or merger. They can
also be partial ownership or a working agreement.
Frequent Flyer Links
10
Many of the frequent flyer programs of airlines are also linked to hotel usage. This means that
airlines grant airline passengers extra mileage points for staying in participating hotels.
Accommodation Promotion
Most accommodation establishments promote their properties to members of the travel trade
as well as to tour wholesalers and travel agencies. They provide the travel trade with printed
promotional literature and invite them as guests on familiarization trips. They offer discounted
room rates to representatives of the travel trade when they stay in hotels but are not on a
familiarization trip. Large hotel chains install promotional booths at travel trade expositions
and advertise in travel trade publications. These travel trade advertisements emphasize the
benefits that will be derived by the tour wholesaler or travel agency in recommending the
hotel. These benefits are the commission the wholesaler or agency will receive from the hotel
and the repeat business that will be generated for the wholesaler or agency. Many travel
agencies handle resort hotel bookings especially when these are tied in with air travel as a
package.
Hotels use the direct mail approach to groups who would like tb hold meetings, conventions,
or conferences in the hotel. For these groups, hotels often offer the incentive of lower room
rates for group bookings and make up the reduced revenue by means of additional sales of
meals and alcoholic beverages. Hotels also offer corporate rates to large companies from
which they would like to get guest room business.
Accommodation establishments also use newspapers for promotion. They spend more money
on newspaper advertisements than on any other advertising vehicle. They use the business
sections of newspapers to reach the business traveler and the travel sector to reach the
vacation traveler. They also advertise on radios and televisions, on highways and airport
billboards, on city magazines or directories, and on telephone directories. Large hotels use
direct mail operations for advertising. Majority of hotels advertise in travel journals, travel and
recreation magazines, and airline in-flight magazines.
Resort hotels advertise on magazines, on television, and by direct mail. Some resorts give
posters to travel agencies for window displays. Resorts often get free publicity when they have
stories to tell the media. The story may be about the arrival of a celebrity or the filming of a
television show at the resort. Another type of publicity is when a resort hotel is featured in a
documentary. Many large resorts have produced short video cassettes about their properties
which are given away or sold.
Several chain organizations emphasize their image and uniqueness in their advertising. This
works if it is presented creatively in advertising. Budget emphasizes price in their advertising.
Some accommodation entities feature the hotel's president or general manager in their
advertisements. They may also feature the chef in their restaurant advertising.
Chapter 1. Choose one hotel chain and determine their projected growth rate. How does this
Activities compare with the growth figures identified in the module?
2. Conduct a study on why Las Vegas has a high hotel occupancy.
3. Research on the impact of timesharing on the tourism industry.
Inc., 2019
11
Zenaida Lansangan-Cruz, Micro Perspective of Tourism and Hospitality, REX Bookstore,
2019
12
PLM Business School
Module 6: FOOD AND BEVERAGES SECTOR

OBJECTIVES
1. trace the history of the food and beverage industry;
2. describe the different types of restaurants;
3. explain the importance of franchising to the restaurant industry;
4. discuss restaurant profitability and calculate food cost percentage, gross profit,
and average guest check;
5. calculate the restaurant’s breakeven point;
6. explain the role of the menu in a restaurant’s success;
7. differentiate airline catering from restaurant catering; and
8. discuss restaurant promotion.
I. History of In early history, there was much evidence that certain groups of people cooked together in big
the Food and groups and that the early inns provided a crude menu. In the Roman era, there were some
Beverage establishments that offered sausage or roast meat, bread, and a cup of wine. The forerunner
Service of the modern restaurant that provides hot food and drink developed in Rome. Many of the
early restaurants were in the cities, near temples and government buildings. After the fall of
the Roman Empire, the manors and castles provided food to large numbers of people. The
early inns provided bread and wine to travelers.
In 1200, public cook shops were opened in London which offered precooked takeout food. The
royal families of Europe introduced cutlery, table linen, crystal glasses, new foods such as
turkey and potato, and the roadside tavern. In the sixteenth century, British inns and taverns
began to serve one meal a day at a fixed time and price and at a common table. The meal was
known as ordinary, and the dining rooms were called ordinaries. The most famous ordinary in
London was the Castle and Lloyd's which was the meeting place for merchants and ship
owners. in the seventeenth century, the ordinaries became fashionable clubs and gambling
places as well as centers for political activities. The word "restaurant" was used in the late
eighteenth century for a Paris dining room serving light dishes.
In the United States, taverns and inns were very similar to those in England. A famous tavern
in New York was Fraunces Tavern. In 1834, the famous Delmonico's was opened in New York.
In the early 1900s, several events that were significant to the food industry occurred. The
hamburger was first served in 1904 at the St. Louis World's Fair. The first root beer stand was
founded by Roy Allen and Frank Wright.
The Second World War brought many changes to the American public, People became richer,
the automobile made them more mobile, and they shifted to the suburban areas of cities, In
the 1960s, fast-food establishments emerged.
At present, modern popular cuisine including French, Chinese, Mexican, and Japanese have
become common in most cities. The role food plays in tourism may not be a direct but an
indirect attraction.
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II. Types of The following are the different types of restaurants:
Restaurants
1. Family or Commercial Restaurants
Family-style restaurants offer a wide menu of "meat and potato" selections with a price range
that appeals to an average family income. They serve beer and wine if they have a liquor
license. The decor is bright. A combination of counters, tables, and booths is common. Parking
is necessary since customers usually arrive by car. Family restaurants are normally located
near a residential area and a highway.
The operating hours are usually from early evening to midnight. The staff are friendly and
efficient. The initial investment is medium to high.
2. Coffee Shops
Coffee shops are characterized by a fast-food service. The decor is simple, and prices are
relatively low. it is usually located in an office building or shopping mall. The rent is high. The
staff are often minimally trained. The peak periods of a coffee shop are lunch and coffee
breaks. Operating hours are from early morning to early evening, A takeout service may be
offered.
3. Cafeterias
Cafeterias are usually located in shopping centers and office buildings. Self-service is typical
with limited menus of soups, entrees, desserts, and beverages.
Cafeterias often require a large preparation area. Their staff are minimally trained. Beer and
wine may be offered. Fast service is necessary to handle the traffic volume. The operating
hours will depend on the location as school, office building, airport, or highway.
4. Gourmet Restaurants
Gourmet restaurants generally require a higher initial investment than other types of
restaurants because they require an expensive ambience and decor. They cater to those who
want a higher standard and are willing to pay the price.
The prices are higher at gourmet restaurants because of the high investment required. The
menu and wines are carefully planned, and the staff are highly trained.
The evening period is the main emphasis. The location is important but may not be critical
since discriminating diners look for quality gourmet restaurants. Word-of-mouth advertising
and repeat business are keys to success.
5. Ethnic Restaurants
Ethnic restaurants feature the food of a specific region or country. They can be Chinese or
classical French cuisine. The decor usually has an ethnic motif.
In order to be successful, ethnic restaurants must serve authentic cuisine of the region or
country they are featuring and those who prepare the food must be well-trained and
knowledgeable. Prices range from budget to high. Beer, wine, and liquor may or may not be
served. The initial investment is high because of the decor and staff training. The location is
variable. Operating hours are in the evening.
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6. Fast-food Restaurants
Fast-food restaurants have increased in the past 20 years as people have become more
mobile. Franchising is common in this type of restaurant. The menu is limited with low prices.
Because of low prices, many customers patronize fast-food restaurants.
Fast-food restaurants operate for long hours and generally for seven days a week. Alcoholic
beverages are not offered. A well-trained staff is required for franchise fast-food operation in
which the franchisor sets standards of service and food quality that must be maintained at all
times.
Fast-food chains have been successful in the past two decades because they have offered a
limited menu. This has given them greater purchasing power, less waste, and lower labor costs
by using disposable paper, plastic, and styrofoam containers which save dishwashing costs.
These restaurants are pioneers in establishing more efficient food-operating systems.
7. Deli Shops
Deli shops provide delicatessen food service, combining traditional delicatessen cold meats
and cheese with takeout sandwiches, salads, and similar items. Some deli shops have limited
seating capacity. They are usually located in shopping areas or office buildings and are open
from 9:00 AM to 5:00 PM or 9:00 PM. Capital investment is low. Deli shops have low labor
costs because only one or two owners and employees are involved.
8. Buffet Restaurants
Buffet restaurants are established on a completely self-serve basis. However, if liquor, beer,
and wine are offered, table and service for these beverages are provided.
The food buffet is usually an "all you can eat" hot and cold food for one price. Food
preparation and service staff are kept to a minimum, Buffet restaurants cater to the family and
therefore offer reasonable prices. They are open from 5:00 PM to 11:00 PM.
9. Transportation Restaurants
There is a natural link between transportation and food service. Several restaurants are
generally found along auto and bus transportation routes. They are also found at bus, rail, and
air transportation buildings, as well as on transportation vehicles as trains and ships.
Some transportation restaurants cater to tour groups, particularly bus tour groups. These
restaurants can be quite profitable if the market can be maintained. They require special
cafeteria or buffet-type facilities so that arriving groups can be served quickly and continue
their journey.
III. Franchising Franchised restaurants are a major component of the food service industry, particularly in the
fast-food sector. The reasons for the popularity of franchising in the restaurant industry are
very similar to those in the hotel industry. Franchises are beneficial to the franchisees because
they provide operational, training, layout and design assistance, location assistance,
managerial expertise, group purchasing power, and most importantly, the identification of a
well-known brand supported by regional, national, and international advertising and
promotion. Franchised restaurants can easily get financing from lending institutions than
independents.
3
In the early days of franchising, the common practice was to sell individual franchise rights for
a single restaurant. At present, a regional franchise has become popular with franchisees and
franchisors. A regional franchise allows a franchisee to develop multiple outlets within a
specific geographical area. The area could be a city, a state, a province, a major part of the
country, or the whole country. For example, Wendy's in the United States gave private
Canadian Country the territorial rights to all of Canada for Wendy's restaurant operations.
Franchised restaurants include fast-food chains such as McDonald's, Kentucky Fried Chicken,
Pizza Hut, A&W Root Beer, and Burger King. They also include dine-in types of restaurants
such as Wendy's and Pizza Inn and carry-out establishments like Orange Julius. The fast-food
franchise is the most common. Table-service restaurants such as Denny's Steak and Ale and
Victoria Station, and buffet-style restaurants such as Bonanza are also franchised. These table-
service and fast-food restaurants have spread from the United States to other countries
throughout the world.
IV. Restaurant Food Cost Percentage

Profitability
Food cost percentage is often used to measure a restaurant's marketing success. It is
determined by dividing the food cost for a period (a day, a week, a month) by the sales for
that same period and then multiplying it by 100. For example, if the cost of food for one
month is $40,000 and sales is $100,000, the food cost would be:
$40,000 x 100 = 40%
$100,000
Many restaurant operators strive for a 40% food cost to make the restaurant more profitable.
Gross Profit
Gross profit is the selling price of an item less its food cost. Table 3 shows the importance of
gross profit in comparing two menu items.
Table 3. Gross Profit of Two Menus
Item Cost Price Selling Price Cost Percentage Gross Profit

1 $4 $8 50% $4
2 $1 $4 25% $3
In this table, it would be better to sell item 1 rather than item 2 since item 1 has a higher cost
percentage and a higher gross profit; hence, a contribution to net profit than item 2. For each
of item 1 sold 50% food cost, there is a $4 gross profit compared with $3 with item 2.
Labor Costs
Labor costs are controlled by expressing them as a percentage of sales on a daily, weekly, or
monthly basis and comparing the actual cost with the standard desired.
Instead of treating labor costs as separate from food costs, many successful restaurants look
at these two as a combined cost. For instance, they set a standard of 75% above in which food
costs plus labor costs must not increase. As long as the operation maintains the combined cost
below this level, the restaurant will be profitable.
In a large restaurant, the organization of the labor force is important to labor cost control. The
food service structure is illustrated in Figure 4.
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Figure 4. Food Services Structure
Source: International Hotel Development
Average Guest Check

Another profitability measure used in restaurants is the average guest spending or average
check. Average guest spending is calculated by dividing the total revenue received for a
particular period (a day, a week, a month or a year) by the total number of guests served
during that period. For example, if 350 guests are served dinner and the total revenue
received is $3,610, the average spending will be:
Breakeven Point
Breakeven is that point at which business will make neither a profit nor a loss. The operation
for determining the breakeven point is:

__Fixed costs__
Contribution margin
Fixed costs are those costs that remain the same regardless of the volume of business.
Examples are salaries, interest, depreciation, insurance rent, and the like. The contribution
margin is average check less variable costs. For example, if a restaurant has an annual fixed
cost of $125,000 and an average guest spending of $10.00 and its variable cost such as food,
labor, and others is 75% of revenue or $7.50% guest served, its breakeven point is:
$125,000 = $50,000
$2.50
The contribution margin is average check less variable costs or $2.50 less $7 .50. The
breakeven number of customers is $50,000.

The proof of this is:
Total revenue: $50,000 x $10 = $500,000

Variable costs: $50,000 x $7.50 = $375,000
Fixed costs: $125,000

Profit or loss: 0
V. Menus The menu is the basic planning document for a successful restaurant. Several aspects of the
restaurant's operation depend on the menu. The menu contains what the restaurant offers,
the range of offerings, as well as the selling prices. The menu must portray the style and
theme of the restaurant. Thus, the menu's design, printing, size, and colors are important.
5
The menu also determines the equipment needed and the investment required. In general,
the more extensive the menu is, the more varied the needed equipment will be. If a
restaurant sells only hamburgers, hotdogs, fries, and softdrinks, its required equipment will be
less compared to those of a restaurant with 20 or 30 menu items which require different
cooking methods and more specialized equipment.
In addition, the menu identifies the labor costs of a restaurant. It can determine the number
of staff required and the cost of staff training for food preparation and service. The more
items are contained in the menu, the more complex the service will be.
Lastly, the menu estimates the cost for uniforms, purchases, storage and space, and actual
food costs. The menu also helps emphasize, by means of bolder prints, which menu items the
restaurant would prefer customers to order.
Figure 5. Sample International Airline Menu
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Figure 6. Sample International Airline Menu
Airline Catering
Airline companies spend billions of dollars every year for food purchases. The average cost per
airline passenger is between $1 and $7 depending on the length of the journey. The amount is
less for shorter trips, since passengers may be offered only a non-alcoholic beverage and a
light snack. For longer trips in which two or three meals may be offered including free
alcoholic beverages, the amount is higher. Around 3 to 4% of an airline's total costs is spent on
food.
Food Quality
The main problem of airline companies is to cook the meal on the ground and serve it several
hours later in an extraordinary dry cabin atmosphere, seven miles high, to different groups of
people with their own food preferences, and whose main motivation is to travel rather than to
eat.
In 1992, airline passengers were served a sandwich and coffee from a vacuum flask on a flight
from London to Paris. At present, particularly on long flights, passengers expect hot meals.
Logistics
To produce hot meals, the airline companies have to prepare specifications for recipes,
ingredients, cooking methods and temperatures, and labor for each flight These require a
forecast using the actual passenger reservations for each flight including an allowance for
standbys and last-minute reservations in order to have the correct raw materials, equipment,
and food production staff for each shift. Preliminary meal counts are usually prepared from 24
to 72 hours ahead so that food supplies can be bought.
Menus must be carefully selected for each flight to avoid serving the same meal to a
passenger on two succeeding segments of a trip or on a round trip. In addition, trays and
serving utensils and supplies must be .in the kitchen when the meal is prepared.
Airplane Galleys
The first airplane galley was designed in 1936 by Douglas for its DC-3. Meals prepared on the
ground were kept hot or cold in insulated containers on the aircraft After World War Il, the
introduction of larger airplanes enabled them to have ovens and refrigerators onboard in their
galleys. The removable ovens are filled with hot food in the ground flight kitchen, moved to
the aircraft, and then plugged into electrical outlets.
Flight Kitchens
The first airline flight kitchen was opened in the late 1930s near Washington D.C. Hoover Field
airport by a gentleman named Marriott. He had a restaurant near the airport. He noticed that
passengers would go to his restaurant to eat before boarding their flights because no meals
were served in the airplane. He approached Eastern Air Transport, now known as Eastern
Airlines, and offered to prepare lunch boxes in his restaurant for Eastern's passengers. Eastern
agreed, so the first flight kitchen was established. At present, Marriott In-Flite Services has
approximately 100 flight kitchens around the world which cater to 150 different airlines and
serve 100 million meals a year.
There is an ongoing trend at present in which Flight Kitchen operators lease their dining
7
equipment from other firms.
Some airline companies have their own flight kitchens while others contract with other airline
companies that are equipped with their own kitchens. Most of the airline companies turn over
their catering services to outside caterers because airline kitchens are not large and efficient.
VI. Difference Airline catering is different from restaurant catering because in the latter, the cooks can make
Between last-minute adjustments. For example, a steak might be prepared in the flight kitchen to be
Airline accompanied by a sauce and vegetables to be served two hours later. During this time, it must
Catering and be kept hot. if there is flight delay of one hour, the steak will be stringy, the sauce will be
Restaurant congealed, and the vegetables will be mushy. In an ordinary restaurant, a meal like this will
Catering not be served but on an airline, the serving crew usually has no other choice but to serve it.
In airline catering, the logistics are very complex, but airlines exert great efforts to serve good
meals to the passengers. They even respond to the needs of passengers on special diets if
given enough notice.
VII. Many restaurants advertise their menu on newspapers. Local newspaper advertisements are
Restaurant used by most restaurants as a major form of external promotion. Several restaurants advertise
Promotion in the yellow pages of the local telephone directory; some use local radio or television
stations. Most popular restaurants and national restaurant chains advertise in airline in-flight
magazines, consumer travel magazines, and travel trade publications. Many restaurants try to
foster good relations with nearby hotel employees such as front office staff, bell desk
personnel, and doormen because they are often asked by hotel guests to recommend good
nearby restaurants. Good public relations and word-of-mouth advertising generate a lot of
business.
Chapter 1. Evaluate a particular restaurant. List down its weaknesses. Decide on what actions you
Activities would take to overcome its weaknesses.
2. Create a restaurant concept. Discuss its main elements.
3. Research on the tactics used by restaurant owners to increase profitability.
Inc., 2019
2019
8
PLM Business School
Module 7: RECREATION AND LEISURE

1. define recreation and leisure;
2. determine the varied views of recreation and

leisure;
3. describe the motivations for recreational
participation;
4. explain the factors which promote the growth of
recreation;
5. discuss the major types of organized recreation;
6. explain the role of sports and tourism as major
recreation service components;
7. differentiate theme parks, water parks, fun
centers, and sports tourism;
8. analyze the need for professional leadership in
the recreation field; and
9. discuss the challenges facing the recreation and
st
leisure service field in the 21 century.
I. Meaning of Recreation and The dictionary defines "recreation" as the process of giving
Leisure new life to something, of restoring something. "Leisure" is
defined as the productive, creative, or contemplative use of
free time.
Recreational Activities
Recreational activities include all kinds of sports, both team
and individual, such baseball, softball, football, basketball,

volleyball, tennis, badminton, swimming, skiing, hiking,
jogging, aerobics, and rock climbing, which are active forms of
recreation. Passive recreational activities include reading,
fishing, playing and listening to music, gardening, playing
computer games, and watching television shows or movies.
II. Varied Views of Recreation For some, recreation means the network of public agencies
and Leisure that provide parks, playgrounds, swimming pools, sports
fields, and community centers in several cities, towns,
counties, or park districts. They may view these facilities as an
outlet for the young people or a means of achieving family
togetherness or pursuing interesting hobbies, sports, or social
activities.
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For others, recreation may be found in a senior center, a
sheltered workshop for mentally challenged individuals, or a
treatment center for physical rehabilitation.
Environmentalists may be principally concerned about the
impact of outdoor forms of recreation on our natural

surroundings such as forests, mountains, rivers, and lakes
which are the national heritage of a nation.
Recreation and leisure are all these things. They represent a
rewarding form of human experience and constitute an

important aspect of economic development and government
responsibility.
At present, the value of recreation and leisure is universally
accepted. As a consequence, the government in both

developed and developing countries has accepted the
responsibility of providing and assisting leisure opportunities
through extensive recreation and park systems.
Recreational Participation
The most common notion of recreation is that it is primarily a
participation in sports and games. Recreation actually includes

an extremely broad range of leisure activities including travel
and tourism, cultural entertainment, participation in the arts,
hobbies, membership in social clubs, or interest groups,
nature-related activities such as hunting and fishing, and
attendance at parties, special events, and fitness activities.
Recreation may be enjoyed with thousands of participants or
spectators or may be a solitary experience. It may be very

strenuous or may be primarily a mental activity. It may act as
a lifetime of interest and involvement or may consist of a
single, isolated experience.
III. Motivations for Many participants take part in recreation as a form of

Recreational Participation relaxation and release from the pressures of work and other
tensions. Another recreational motivation is the need to
express creativity, expose hidden talents, or pursue excellence
in various forms of personal expression.
For some participants, active recreation offers a channel for
releasing hostility and aggression. It is also a way of struggling

against the environment in adventurous and high-risk
pursuits. Others enjoy recreation because it provides them the
opportunity to make new friends or cooperate with others in
group activities.
Many individuals take part in recreational activities which
involve community service, provide leadership in fraternal or

religious organizations, and promote health and physical
fitness. A growing number of individuals enjoy participation in
computer-based entertainment and communication including
2
CD-ROMs, interactive video games, and the Internet; others
are deeply involved in various forms of elite culture such as
music, drama, dance, literature, and the fine arts. Additional
important motivations are exploring new environments
through travel and tourism or seeking self-discovery or
personality enrichment through continuing education or
religious activity.
IV. Factors Promoting the The following are the factors that help bring about the growth
Growth of Recreation of recreation:
1. Increase in discretionary time — A key factor underlying
the growth of recreation has been the growth of free or

discretionary time in the 20th century. Due to advanced
mechanical equipment and automated processes in factories,
agriculture, and the service fields, productive capacity
increased remarkably during the second half of the 19th
century and the first half of the 20th century. In addition,
more holidays and longer vacations are now enjoyed by most
employees. Because of improved social security benefits and
pension plans, as well as medical advances which lead to a
longer life, many employees can now avail of 15 or more years
of full-time leisure after retirement. Another reason is that
labor-saving devices such as automatic washing machines,
lawnmowers, microwave ovens, and vacuum cleaners have
greatly simplified the demands of life.
2. Influence of technology — Sophisticated technology has
provided new forms of recreation for people. Outdoor

recreation uses complex and expensive devices in activities
such as skydiving, hang gliding, scuba diving, boating, roller
blading, skiing, and snowboarding. Computer dating provides
a new form of social contact for single adults. Video games
offer interactive competition or exposure to new varieties of
play settings and "virtual realities." The internet has become
an important part of travel and tourism by providing
information and facilitating reservations and vacation choices.
Home-based recreation has become dependent on varied
forms of electronic entertainment.
3. Public interest in health and fitness — A key trend in the
20th century is the growth of public interest in exercise and

physical fitness programs. Many people are now concerned
about improving their health, vitality, and appearance through
diet and exercise. Those who exercise regularly look and feel
better. Research showed that the most successful fitness
programs were those that provided recreational interest and
satisfaction.
4. Commodification of leisure — Various forms of recreation
are being developed by profit-seeking businesses. Giant

corporations have taken control of music, television, movie
businesses, sports stadiums, cruise ships, theme parks, and
other leisure operations. Many elaborate new facilities which
3
offer varied forms of recreation are being developed as part of
the trend toward commodification. In big cities, huge public
fitness centers which include pools, aerobics, dance rooms,
and facilities for family play are being built and often charge
membership fees that cost several hundred dollars a year.
5. Therapeutic recreation service — An important aspect of

the growth of recreation has been the increased awareness of
the recreation needs of persons with physical, mental, or
social disabilities, 'n recent years, there has been an increased
recognition of the need to provide recreational programs for
special populations such as the mentally challenged, mentally
ill, and physically challenged. These programs use therapeutic
recreation as a form of treatment. One of the sports programs
for people with disabilities that has received much attention in
recent years is the Special Olympics, an international program
of physical fitness, sports training, and athletic competition for
children and adults with mental retardation.
6. New leisure roles for women — At present, there is a

strong drive by women to play a more equal role in
recreational opportunities. In the past, women were barred
from a variety of athletic, outdoor recreation, cultural, and
social involvements. Women were treated as second-class
citizens in leisure opportunities. With the emergence of a
strong feminist movement, this inequality was corrected-
There is now a growing interest in women's tennis, golf,
gymnastics, track and field, and similar events in every level of
competition. Outstanding women athletes have helped create
a new image of feminine strength, determination, and self-
confidence.
IV. Types of Organized 1. Government recreation agencies —These are the federal,
Recreation state, provincial agencies and local departments that provide
recreation and leisure services as a primary function. Also
included are other agencies that offer recreation programs as
a secondary responsibility such as those concerned with social
service, education, special populations, and the armed forces.
2. Voluntary nonprofit organizations — These are
nongovernmental, nonprofit agencies, both sectarian and

nonsectarian, which serve the public at large with multiservice
programs that often include a substantial element of
recreational opportunity. The most popular voluntary
organizations include the Boy Scouts, Girl Scouts, YMCA,
YWCA, and YM-YWHA.
3. Private membership organizations — They provide
recreational and social activities for their own members and,

in some cases, assist community recreation needs. Examples
are golf, tennis, yacht, athletic, and country clubs. Also
included under this category are the recreation sponsors
connected to residence such as swimming pools, sports or
fitness complexes or clubs attached to leisure villages, and
4
apartments or condominium units or retirement communities.
4. Commercial recreation enterprises — These are privately

owned businesses which operate to make a profit such as ski
centers, bowling alleys, nightclubs, movie houses, theaters,
health spas or fitness centers, dancing schools, and theme
parks.
5. Employee recreation programs — They serve those who

work for companies or employers by providing recreation as a
part of a total personnel benefits package, linked to other
services concerned with employee health and fitness.
6. Armed forces recreation — Although it is obviously a form

of government sponsored activity, it is unique in its setting and
purpose. Each of the major branches of the armed forces
operates an extensive network of recreation facilities and
programs.
7. Campus recreation — It includes intramural athletics or

sports clubs, social activities, travel programs, performing arts
groups, entertainment, lounges, film series, and other forms
of recreation on college and university campuses.
8. Therapeutic recreation services — These include any type

of program designed to meet the needs of persons with
physical or mental disabilities, individuals with poor health,
dependent aging persons, social deviant persons in
correctional facilities, and similar special groups.
VI. Two Recreation Service In addition to the eight types of organized recreation, sports
Components and tourism represent major areas of recreational
programming and constitute powerful economic forces
through their attraction for people of every age and
background. Uniquely, they have strong links to each other
through the growing field of sports tourism and also overlap
heavily with outdoor recreation attractions.
A. Sports as Popular Recreation
Sports are major areas of recreational involvement. Of all the

types of recreational involvement, sports command the
highest degree of personal interest and emotional
involvement both for those who participate actively in them
and those who are part of a big number of fans of school,
college, and professional teams.
Sports are generally defined as physical activities demanding

exertion and skill, involving competition, carried on with both
formal rules and general standards of etiquette and fair play.
Sports activities, in terms of both participation and spectator
involvement, represent key recreation interests for most
youth and adults. Aside from amateur, school, and college
sports, there are professional sports which have become big
5
businesses.
B. Tourism — A Major Recreation Service Component

Tourism is a second major area of diversified recreational
involvement. Several major elements in the tourism

enterprise which are closely linked to the growth of tourism as
a form of recreation are the theme parks, water parks, fun
centers, and sports tourism.
VII. Theme Parks, Water Theme Parks

Parks, Fun Centers, And
Sports Tourism Theme parks usually concentrate on one dominant theme
which may be historical, cultural, or geographical. An example
of a theme park with a single theme is the marine zoological
Sea World Park. Other parks focus on multiple themes like the
Great America in California, a hundred-acre family
entertainment center divided into five themes: Hometown
Square, Yukon Territory, Yankee Harbor, County Fair, and
Orleans Place. The most popular theme park is Disneyland in
Anaheim, California which was built by the late Walt Disney
around the theme of Disney characters.
Theme parks create an atmosphere in which the visitor is
likely to experience fantasy, glamour, escapism, prestige, and

excitement. Once inside the gate, the visitor is completely
shut off from the outside world and immersed in an enjoyable
recreational experience.
Water Parks
A specialized type of theme park are the water parks. They
feature wave pools, slides, chutes, shows, and other forms of

water-based play and entertainment. Water parks are usually
part of larger theme park operations. For example, Universal's
Islands of Adventure, the Jurassic Park River Adventure, Bilge
Rat Barges, and Poseidon's Fury offer either whirling and
steep white-water rides and sluice falls or swirling vortexes
that spray riders thoroughly. Each year, dozens of new water
parks have been opened with the latest technology.
Fun Centers
In heavily populated metropolitan areas, entrepreneurs have
developed a variety of indoor fun centers, ranging from

children's play, gymnastics, to family party centers, video
game arcades, and big restaurants with game area.
New children's and family play centers have been established
in many suburban neighborhoods and shopping malls. They

offer a combination of computer and video games billiards,
miniature golf, entertainment by clowns and magicians, music,
and popular fast-food refreshments. They also offer packaged
birthday parties and attractive family play activities.
6
Sports Tourism
The purpose of sports tourism is to participate directly in a
form of sport or attend sports events as a spectator. In the

past, only the team traveled; the spectators remained behind
to read about their favorite game or to experience the game
through radio and television. Today, both the team and the
spectators travel to the game especially where championship
games are involved. Major college and professional
tournaments and championships attract huge audiences along
with major boxing matches, golf, and tennis events, and even
sports like softball, soccer, rugby, volleyball, and roller skating.
The World Olympics is the biggest sports event. It attracts
millions of spectators and generates millions of dollars in
revenue.
VIII. The Need for At present, there is a growing need for qualified professional
Professional Leadership leadership in the recreation field. Very often, people assume
that the tasks of organizing and conducting recreation
programs are relatively simple and that anyone can do it
without specialized training. However, the professional's
assignment in the organized recreation field tends to be more
complex and difficult than that of the volunteer leader or
coach. It must involve carefully studied goals and objectives
and sophisticated planning techniques.
Recreation professionals should possess the skills needed for
direct leadership and supervision, group dynamics, and client

assessment. They must have the ability to carry out basic
research and write meaningful reports.
Emerging Professional Identity

As employment in recreation agencies grew over the past
several decades, recreation gained public recognition as a

flourishing career field. Millions of men and women became
employed in various specialized sectors of recreation and
leisure services. Many hold professional-level jobs as
recreation leaders, supervisors, planners, managers, and
resource specialists. Through the efforts of national, state, and
provincial societies, higher standards for practice were
developed and the first steps of certification and accreditation
were undertaken.
IX. Challenges Facing the Recreational professionals must be able to deal creatively with
Recreation and Leisure the following challenges:
Service Field in the Twenty-
First Century 1. Serve diverse society (race, age, gender);
2. Emphasize key social purposes of recreation in
working with at-risk youth, serving persons
with disabilities, and promoting community
development;
3. Achieve fuller public understanding of the
7
value of recreation and parks, and of the
leisure-service profession;
4. Upgrade recreation and park programs and
facilities, particularly in inner cities and for
minority populations;
5. Adopt a benefits-based management
approach; researching, proving and publicizing
positive outcomes of recreation;
6. Promote recreation's identity as health-
related field;
7. Develop partnerships with environmental
organizations to protect and restore wild
lands, waterways;
8. Employ marketing approach to achieve fiscal
sufficiency and gain public respect and
support;
9. Expand and improve family-centered
programs and facilities;
10. Promote higher values and ethical practices in
youth sports competition;
11. Strive for fuller mainstreaming of persons with
disabilities in community recreation programs;
12. Plan for long-term role of recreation and

leisure in potentially job-scarce economy;
13. Develop higher levels of professionalism
through accreditation, certification,
continuing education, or program standards;
and
14. Unify separate branches of recreation and
leisure service fields (public, nonprofit,
commercial, therapeutic) in common
programs and projects.
Chapter Activities 1. Conduct a study on how more frequent but shorter

vacations affect recreation and leisure.
2. Evaluate the national forests as recreational
resources.
3. Research on how the growth of government security
programs and employment benefits affect recreation
and leisure.

Learning LLC, 2019
Zenaida Lansangan-Cruz, Micro Perspective of Tourism
and Hospitality, REX Bookstore, 2019
8
9
PLM Business School
Module 8: TOURIST ATTRACTIONS AND THEME PARKS

OBJECTIVES
1. Describe the nature and scope of tourist attractions;
2. Explain the evolution of tourist attractions;
3. Define and clarify tourist attractions;
4. Differentiate theme parks from amusement parks;
5. Discuss the main issues in the management of tourist attractions;
6. Clarify the role of technology in tourist attractions;
7. Explain the future of tourist attractions; and
8. Describe the International Association of Amusement Parks and Attractions.
I. The Nature Tourist attractions are major components of the tourism Industry that function as main
and Scope of motivators for travel. Without attractions that draw tourists to destinations, there will be little
Tourist need for other tourist services such as transportation, lodging, food distribution, and others. The
Attractions natural attractions, entertainment attractions, events, and recreation are included in the
extensive list of attractions that brings the tourists to a destination area. Figure 7 shows the
overview of attractions.
Natural attractions are the chief reasons why people travel. Examples of these are the botanical,
zoological, mountain and seaside parks, national forests, and national parks of the United States,
Canada, India, Australia, and Japan. The natural beauty of these attractions entices and inspires
the travelers.
1
Figure 7. Overview of Attractions
Source: Goeldner, C.R. and J.R. Brent Richie. Tourism Principles, Practices, and Philosophies. New
Jersey: John Wiley Inc., 2009.
Heritage attractions such as the prehistoric and archaeological sites appeal to those who want to
learn about ancient and contemporary civilizations. The ancient monuments of Egypt, Greece,
Israel, Turkey, Indonesia, India, Mexico, and Peru are examples of heritage attractions.
Recreation attractions on the other hand are for those who seek exciting adventures. These
attractions provide access to indoor and outdoor facilities where tourists can participate in sports
and other recreational activities such as bowling alleys, swimming pools, ice skating rinks, golf
courses, ski resort, biking trails, bicycle paths, and marinas.
Commercial attractions are retail operations which deal with gifts, handicrafts, souvenirs, and art.
Recent surveys show that shopping is the principal activity of both domestic and international
visitors.
In addition, industrial attractions such as wineries and breweries have long been tourist
attractions. Factory tours have increased, and manufacturers have developed elaborate facilities
to handle tourists.
Modern cities that are rich with cultural treasures also attract millions of visitors every year.
Because of this, sightseeing tours which make the city attractions accessible are provided.
Theaters, museums, zoos, aquariums, cultural arts, festivals, shopping, and dining are some of the
sites and activities that appeal to tourists.
Entertainment, particularly musical entertainment, has become popular with tourists as well.
2
II. The Tourist attractions are considered a modern creation. The evolution of tourism depended on the
Evolution of existence and development of attractions. As far back as the Roman Empire, travelers went to
Tourist Egypt to see the pyramids. Later on, the Grand Tour routes were around the major cultural
Attractions attractions of Europe. Table 4 shows that some of today's tourist attractions existed in the late
19th century and early 20th century. It was in the postwar period that tourist attractions really
developed. These include theme parks by using efficient marketing techniques and state-of-the-
art technology.
Table 4. Selection of the World's Most Popular Theme Parks
Year Approximate
Country Visitor Numbers in
Opened
2014 (million)
1896 Black Pleasure Beach UK 6.5
1951 De Eheling Netherlands 3.5
1955 Disneyland, Anaheim USA 13
1964 Universal Studios, Hollywood USA 5
1971 Magic Kingdom, Orlando USA 15
1971 Sea World, Goal Coast Australia 1
1977 Ocean Park Hong Kong 3
1982 EPCOT, Orlando USA 9
1983 Tokyo Disneyland Japan 13
1989 Lotte World Seoul South Korea 8
1990 Universal Studios, Japan Japan 7
1992 Disneyland Paris France 10
2001 Universal Studios, Japan Japan 7
2001 Disney Californian Adventures USA 5.5
Source: Page, Stephen and Joanne Connell. Tourism: A Modem Synthesis, 2006.
The United States of America is considered to be the pioneer in the development of theme parks.
The first theme park was Disneyland created by Walt Disney in Anaheim, California in 1355, which
attracted four million visitors in its first year of operation. The Disney vision is to create a magical
place where children and parents could enjoy. Disney's second larger resort, the Walt Disney
World in Orlando, Florida, is now the world's most visited tourist destination. The development of
the attraction sector is not only concerned with theme parks; since the 1980s, there has been a
rapid growth in all types of attractions from country houses to industry-related visitor centers.
III. Definition According to Pearce (2001), a tourist attraction is a named site with a specific human or natural
of feature which is the focus of visitor and management attention. On the other hand, Swarbrooke
Attractions (2001) defines attractions as single units; individual sites or very small, delimited geographical
units based on a single feature. Destinations are different from attractions because destinations
3
are large areas that include several individual attractions together with the support services
required by tourists.
Classification of Attractions
Attractions may be classified according to its features such as its core product. Attractions can be
grouped as:
1. Historic houses;
2. Museums and galleries;
3. Wildlife attractions;
4. Castles;
5. Botanical gardens;
6. Steam railways;
7. Visitor centers;
8. Country parks; and
9. Leisure parks.
Physical Environment
Attractions may be located in the:
1. Natural environments such as forests, mountains, and national parks;

2. Built environments which are not originally designed for visitors but are adapted as
attractions due to its increasing popularity among people, such as historic houses,
workplaces, steam railways, and castles; and
3. Built environment and designed for visitor purposes such as visitor centers and leisure
parks.
In addition, attractions may be located in indoor or outdoor environments.
Ownership
Attractions are owned and managed by organizations, trusts, and individuals working in the
public, private, and not-for-profit-sectors. State involvement in attractions funding is shown in
Europe, Canada, and Singapore. In the United States of America, many attractions are subsidized
by charitable donations as well as the voluntary sector. The voluntary sector includes
organizations that own and manage attractions on a nonprofit basis.
Admission Policy
Some attractions charge admission fees while others are free to the public. Attractions operated
by membership subscription organizations allow members free entry. Voluntary donations are
requested in other attractions such as churches and cathedrals.
Appeal
Attractions may appeal to a local market, regionally, nationally, or internationally. Domestic

tourists usually dominate the market for tourist attractions. However, there are different types of
attraction that appeal to different types of tourists. Foreign tourists make a large percentage of
visits to distilleries and castles. Visits to steam railways and country parks are prevailed by
domestic tourists. Historic houses and gardens attract mature visitors.
Size and Capacity
4
Attractions differ in land coverage. Some are housed in small buildings while others occupy
several hectares. Attractions designed for mass tourists are able to receive a large number of
visitors. Moreover, such attractions may incorporate services and facilities that enable visitors to
prolong their stay. Understanding the capacity of sites is important in terms of management and
marketing.
Composition
Many attractions are located in or around a specific point such as a capital city. Some follows line
or route. Events may also be found in one venue or may occur in a variety of locations as part of
the festival.
Degree of Performance
Built tourist attractions are usually designed with a high degree of performance. Events and
festivals have a short duration. Hence, temporary sites and mobile infrastructure are often used.
Number of Visitors
Tourist attractions receive varying visitor numbers. Some attractions regularly record
approximately more than 500,000 visitors while others attract smaller number of travelers.
IV. "Amusement park" and "theme park" are terms for a group of entertainment attractions and
Amusement rides and other events in a specific location for the enjoyment of large numbers of people. An
Parks and amusement park is more elaborate than a simple city park or playground because it provides
Theme Parks attractions to people of all ages.
Amusement parks evolved in Europe from fairs and pleasure gardens which were established for
the people's recreations. The oldest amusement park in the world is Bakken, which was opened in
1583 at Klampenborg, north of Copenhagen, Denmark.
"Theme park" is often used as a synonym for "amusement park." A theme park is a distinct type of
amusement park which promotes a specific theme or exclusive set of themes. Disneyland in
Anaheim, California is considered as the first theme park.
Theme park trips are ideal for family vacations, including children below 19 years of age. Theme
park travelers usually fly to their destinations and rent a car once they arrive. They engage in
various activities such as shopping and visiting historical places, museums, and beaches.
Theme parks are popular in all parts of the world. New parks are established in the United States,
Europe, Latin America, Middle East, and Asia. Asia is the home to five of the 10 most visited
theme parks in the world: Tokyo Disneyland, Ocean Park in Hong Kong, Hong Kong Disneyland,
Lotte World in South Korea, and Dubailand in Dubai. All of these theme parks cater to the family
market. Theme park owners have found out that adding new attractions on a regular basis
increases the number of visitors and thus, the revenue.
V. Main Attractions face several threats from the external and internal environments which affect the Issues
in the product quality, operational capability, and visitor experience. Thus, it is important for managers
Management of attractions to develop a strategy that recognizes threats and focuses on managing potential
of Tourist impacts to attain long-term capabilities.
Attractions
Management Planning
In a study of Australian tourist attractions, Benckendoff and Pearce (2003) found that attractions
5
with the highest level of management planning perform best and are more profitable. The
following are the effects of higher levels of planning:
1. Higher visitor numbers;

2. Increased revenue;
3. Longer asset value;
4. Greater local profit;
5. Lengthened visitors stay;
6. Better growth; and
7. Greater confidence.
Managers of attractions must plan ahead, decide what actions will be taken, and identify
objectives, time scales, funding, and implementation of projects. Planning is necessary for the
long-term survival of attractions based on renewal and innovation.
Environmental Impacts
Environmental impacts caused by visitors raise a number of issues for managers of natural, built,
and event attractions. While natural attractions and those that charge admission, fees are highly
susceptible to seasonality, places of worship and country parks are less susceptible. In addition,
attractions in cities suffer less from seasonality than those located in the external areas.
Visitor Numbers
There are several factors that affect visitor numbers. These are promotions, global issues, and the
weather. Mechanisms for recording visitor numbers include admission tickets, car parking
receipts, and manual or mechanical tools. However, recording visitor numbers at some sites is a
problem particularly when the entry is free, when the site has multiple entry points, and when the
installation of mechanical Counting is not feasible.
Destination Planning
Gunn (1988) found out in his study that attractions function more effectively when they are
clustered together. Several areas have adopted the strategy of clustering attractions and events
which provide more activities to tourists. The rationale for clustering attractions is greater tourist
mobility, competition among tourist areas, stronger marketing mechanisms, and higher
investment in development. Managers of attractions are able to collaborate with one another to
attract visitors to an area rather than to a simple attraction together with the motivation to visit
all attractions by means of big discounts and visitor passes. Collaboration enables attractions to
become more receptive to changes in the marketplace and helps in the formation of strong
regional identities through destination marketing rather than specific attractions. Investment in
popular attractions can be a tool for regeneration. The development of attractions in urban areas
is undertaken not only to attract more visitors but also to stimulate urban renewal.
Diversification
Many attractions have developed from an existing business such as farm attractions to a
diversified agricultural business. Industry attractions have developed through a similar process
where company identifies an opportunity to promote its products and create brand awareness
through the visitor market. Globally, there are examples of companies that operate visitor centers
that are linked to a product offering such as nuclear energy production and chocolate. On Alaska,
even oil installations are considered tourist attractions.
Renewal and Innovation
6
Innovation is a principal concept in tourism business. Many attraction managers find it necessary
to incorporate technology and innovation to their featured attractions to retain and stimulate the
interest of the visitors. An example is the virtual reality ride through New York called New York
Skyride at the Empire State Building.
VI. The Pearce, Benckendoff, and Johnstone (2000) identified four areas that will affect the future of
Future of tourist attractions. These are:
Tourist
Attractions 1. management;
2. marketing;
3. product development; and
4. interpretation and communication.
Management: Revenue Generation
Other than ticket sales, attractions can generate revenue through several means. Efficient
management is necessary for the success of attractions. Table 5 shows the alternative
mechanisms for revenue generation in attractions.
Table 5. Alternative Mechanisms for Revenue Generation in Attraction
1. Encouraging educated visits.

2. Providing a venue for corporate hospitality, meetings, and product launches.
3. Hosting weddings and birthday parties.
4. Generating rental income from alternative usage of infrastructures, such as retail
outlets, clubs, and offices which utilize redundant building or space on-site.
5. Introducing car parking charges or leasing of the car park to a management company.
6. Improving retail and catering initiatives that offer unique and distinctive products and
experiences that reflect the ethos of the attraction.
7. Attracting more visitors and more frequent repeat visit.
8. Increasing length of stay by offering more activities (such as children's sleepovers at the
Boston Children's Museum).
9. Extending opening hours to expand experiences on offer (such as nighttime visiting (as
in the case of Singapore Zoo).
10. Introducing members or friends’ schemes giving privileges and discounts.
11. Hosting high-profile events.
12. Attracting corporate sponsorship.
Source: Page, Stephen and Joanne Connell. Tourism: A Modern Synthesis, 2006.
Marketing
Marketing is significant in the success of attractions. Marketing is not only concerned with
promotion and advertising but also with pricing, products, and distribution channels.
Several attraction managements produce a promotional leaflet which contains either a single
attraction or a collection of attractions in a region. These leaflets may be displayed in tourist
information centers or in leaflet racks maintained by distribution companies in principal tourist
locations. Some attraction managements have websites that show important information to lure
visitors. Other means of promotion are tourist brochures, magazines, newspapers, and television.
Among the channels of advertisement, word-of-mouth (WOM) remains as the most powerful and
cheapest tool for many attractions.
7
The most successful attractions have produced professional media kits which are used in public
relations work such as photographs, brochures, maps, and posters for different markets.
Managers of attractions should prepare effective marketing strategies that appeal to the
consumers, such as offering the right product to the right person at the right time in the right
place.
Product Development: Creating World-Class Destinations

Product development is a process in which managers of attractions engage in innovations that
tend to develop a new concept and use new technology such as virtual reality and animations
which enliven the product offering through tours, reenactment, and personal forms of
interpretation.
The main factor in creating a world-class destination is the establishment of a superior product.
The product must be centered on a clear understanding of the visitor experience, the principles of
human resource management, and a commitment to product development. In addition, other
important factors are understanding and anticipating consumer needs and expectations,
understanding the wider market and the supply of competitive products, and the ability to
innovate.
Interpretation and Communication

There are two brand themes that are significant in interpretation and communication. These are:
1. The role of technology known as "high tech"; and
2. The role of personal interaction known as "high touch."

There are several reasons why operators of attractions invest and develop technology-based
elements. These are:

1. To create a unique product;
2. To enhance visitor experience through entertainment, education, and interaction;

3. To be competitive;
4. To manage visitors by means of technology-driven transport such as the one found in York
Museum New York; and
5. To improve systems management with the use of computerized ticketing, online booking,
customer feedback, and client databases.
In general, helpful, and friendly staff is also an important element in tourist attractions even if
technology plays a big role in the attraction experience.
VII. The world's largest amusement parks and attractions association is the International Association
International of Amusement Parks and Attractions (IAAPA) in Alexandria, Virginia, USA. The association was
Association founded in 1918 and has more than 4,500 members in 90 countries. It represents and serves as
of operators of amusement parks, tourist attractions, water parks, miniature golf courses, family
Amusement entertainment centers, and manufacturers and supplies of amusement equipment and services.
Parks and The association conducts research, compiles statistics, and publishes Fun World and an annual
Attractions International Directory and Buyer's Guide. In addition, it holds an annual convention and trade
show.
Chapter 1. Research on the principal appeals of theme parks.

Activities 2. Suppose your company is planning to build a theater in your community, what kind of
data would be needed?
3. Conduct a study on the main reasons why attractions are growing in popularity.
8
REFERENCES Romeo D. Lim, Micro Perspective of Tourism and Hospitality, Mindshapers Company, Inc.,
2019
2019

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PAMANTASAN NG LUNGSOD NG MAYNILA

PLM Business School

Module 1: THE PSYCHOLOGY OF TOURISM

MODULE By the end of the module students will:

I. The A. Motivation for Travel

1. Physical motivators — include those related to physical rest, sports participation,

beach recreation, relaxing entertainment, and other motivations directly connected

B. Travel as a Means to Satisfy a Need and Want

C. Relationship of Needs, Wants, and Motives

Maslow's Hierarchy of Needs

1. To know and understand — acquiring knowledge; and

Need Motive Tourism Literature

Safety Security Health

Social Love and Affection Family togetherness

Self-esteem Achievement Status Convince oneself of one’s

Self-actualization Personal fulfillment

“Centric” means “focusing of interest patterns on varied activities”.

V. Tourist A. The Need for Escape or Change

B. Travel for Health

Interest in sports, either as a participant or a spectator, is attracting large segments of the

According to Charles Metelka, travel increases the "sociability resources" of individuals. It

E. Status and Prestige

F. Travel for Education

I. Shopping and Bargain Hunting

J. Professional and Business Motives

Figure 2. Tourist’s Learning Process

by seeking vacations which offer variety. The opposite is also true.

1. Women business travelers are slightly younger;

Business Travelers Attending Meetings, Conventions, Congresses

1. Increase overall sales volumes;

Pleasure/personal travelers are classified into the following categories:

Family Pleasure Travelers

An examination of population trends in developed countries particularly in North America

IX. Travel The main constraints to travel are:

C. Lack of Safety and Security

expensive to go on holiday. During the child-rearing period, family obligations increase

F. Lack of Interest in Travel

Chapter 1. Design a tour that would appeal to young singles.

Micro Perspective of Tourism and Hospitality, 3G E-Learning LLC, 2019

Zenaida Lansangan-Cruz, Micro Perspective of Tourism and Hospitality, REX

Module 2: THE SOCIOLOGY OF TOURISM

MODULE OBJECTIVES By the end of the module students will:

1. explain the social nature of travel;

In some subcultures, travel is the accepted way of spending

Tourism evolves a mutual trust and respect for one another

1. social relations between people who would

The degree to which conflict will occur between host and

III. Socioeconomic Variables A. Age and

B. Income and Social Status

Income and social status have a great influence on travel.

There is a strong correlation between education and travel.

D. Life Stages of the Family

The presence of children in the family limits travel. More

IV. The Rise of New Travel A. Travel Clubs

B. Airline Group and Arrangements

Another development in group travel is the introduction of

1. groups of 15 or more are given reduced fares;

C. Special Interest Tours

present. These are tours arranged for those who are

2. traveling near one's home environment to a totally