global marketplace. New Business Opportunities in the Growing E-Tourism Industry offers case studies and research that highlights the impact of globalization on travel and tourism and offers solutions to potential problems. Targeting an audience of researchers and business professionals, this volume brings together a diverse international body of scholars and researchers to provide a holistic perspective of future developments in the e- tourism industry. This volume compiles the research and perspectives of researchers and industry professionals, uniting a variety of topics including medical tourism, traffic- management, route planning, virtual museums, digital spot hunting via film-mosaic, and tourism for the elderly and disabled. 4.3 TOURISM AWARD TO TRAVEL AGENTS AND OPERATORS The World Tourism Day is celebrated all over the world on 27th September every year. The day is observed to create global awareness about the importance of tourism and its impact on society in various fields. The date has special significance as it was chosen to mark the anniversary of the day when the statues of UNWTO were adopted in 1970. This is considered a major milestone in the history of Tourism. This year the theme of the Tourism day is ‘Tourism and Jobs: A better future for All’. Andhra Pradesh Tourism Authority, Government of Andhra Pradesh is celebrating World Tourism Day on 27th September 2019 with great interest by organizing various special events and festivities. It has been decided to present Andhra Pradesh State Tourism Awards in various categories, as indicated below in order to promote tourism in the State on the eve of World Tourism Day celebrations on 27th September 2019. Ever since its inception, World Tourism Day is celebrated on 27th September to foster awareness among the international community of the importance of tourism and its social, cultural, political and economic value. As the official day set aside in the United Nations Calendar the celebration seeks to highlight tourisms potential to contribute to reaching the Sustainable Development Goals, addressing some of the most pressing challenges society is faced with today. Tourism professionals are awarded various awards including the National Tourism Award of India, International Tourism Award, Global Tourism Award, etc. There are many different categories under the mentioned Award ceremonies. 4.3.1 A Case Study of Kuoni. Kuoni Travel Ltd was founded by Alfred Kuoni in 1906 and has grown into one of the largest travel companies in the world employing over 7,500 staff in 300 offices around the world. Since 1966, Kuoni has led the UK long haul tour operation market and has consistently been the UK’s most successful specialist tour operator. 51 CU IDOL SELF LEARNING MATERIAL (SLM)
Despite the economic downturn, sales for holidays are still in high demand with Brits, trying to get away from the increasing doom and gloom in the UK. With more people shopping for competitive holiday deals on the internet, Kuoni extended and improved their service to customers by increasing the number of tailor-made package holidays available on their website. Fighting fit for the economic downturn “The Kuoni website currently searches the market for flights and accommodation which are then combined to form package holidays for Kuoni customers. This service used to be available for departure dates up to 50 days ahead. We made the decision to increase this period to 150 days, significantly increasing the amount of holidays and improving the flexibility for our customers. Case Study Leading Online Travel Agency Increases Revenues by 16 Percent with Actionable Analytics The Client The client, one of the largest online travel agencies in the world, provides travel products and services to customers through websites and contact centres. The Challenge As a leading online travel retailer, the client's primary source of revenue was its Website. However, its customers were using the offline channel to post queries through phone calls, fax, and white males. In addition, the client was experiencing a pronounced variance in call distribution at its contact centre. WNS realized that the client was focusing overtly on the online channel, which resulted in the absence of a robust offline strategy. This was leading to a dip in revenues and market share. The client needed expertise to devise a roadmap to plug the gap. The WNS Solution After having identified the offline channel as an additional revenue stream, WNS deployed a team with deep domain expertise in enterprise analytics to evaluate the potential of the new channel. In addition, WNS undertook the following interventions: Conducted a thorough customer segmentation and analysis based on the cross-sell and up-sell product and services data, customer profitability, and customer life time value models. This enabled the client to focus on the right customers who could help generate offline sales Evaluated the performance of offline sales agents to ensure that the right agents were deployed for the project Ensured optimum staffing of best agents at peak intervals to maximize sales 52 CU IDOL SELF LEARNING MATERIAL (SLM)
Developed a separate strategy for managing the least profitable set of customers Benefits Delivered The WNS solution enabled the client to improve its business performance with: An increase in offline revenues by 16 percent Enhancement of sales conversion rate to 21 percent The WNS solution thus created a strong top-line business impact and enabled its client to outperform. WNS and the Travel Industry WNS is the world's largest travel Business Process Management Company, with a legacy of having started out as a captive for British Airways. Today, WNS is a BPM partner for some of the leading global airlines. WNS provides the airline industry with the latest, top-notch solutions to create opportunities from challenges. Whatever the business trend, WNS has a solution for your business. Our solution suites that can help you ride the new waves in business include: Social media management and social customer service The WNS Sales Centre of Excellence that integrates the online and offline channels and adopts a 'sales through service' model to cross-sell and up sell relevant services based on customer data An end-to-end Analytics Solutions suite that leverages a huge team of domain experts and expertise in social media analytics, contact centre and speech analytics and revenue model analytics that help you take informed decisions Proprietary and industry-leading platforms such as VerifarePlus,Jade, and Smart Pro that help enhance revenue generation for airlines Process re-engineering techniques and a team of domain specialists that help airlines comply with industry regulations and standardization directives 4.4 SUMMARY A Tour Operator is a person or company that thinks up ideas for holidays, researches the ideas, designs the holiday itinerary and content, contracts the services needed for the holiday, accommodation, transport, guides, tour leaders, or resort reps etc and then markets the resultant package. They either sell the package directly to the consumer or use the services of a travel agent to do so. A tour operator sells the product that they themselves create. They do not sell anybody else's packages; they sell only their own creations. And a tour operator is what in law is referred to as a \"principal\", meaning they take responsibility for the 53 CU IDOL SELF LEARNING MATERIAL (SLM)
package that they create and cover that liability withan ATOL licence and/or some form of bonding to ensure that the consumer gets their money back if the tour operator fails, or is flown home if they are abroad when a tour operator fails. It's worth mentioning that, about bonding for financial protection, the law asks that certain items or services must be bonded; AITO demands that all its tour operators bond anything they sell to the consumer; this is more than what the law demands, to the benefit of the consumer. A Travel Agent offers the consumer a range of holiday packages that have been put together by a tour operator. They do not, in theory, put together any of their own packages; they sell many different holidays put together by lots of different tour operators. They do not usually design or create the holidays they sell, and they do not act as a Principal; the tour operator whose product they sell takes the responsibility for the holiday; the travel agent does not. Therefore, the agent usually does not have an ATOL licence or any Bonding in place but relies on the tour operator to cover this. Nowadays it is fair to say, the difference between tour operator and travel agent is blurred. Some travels agents do create some packages, and therefore do act as a Principal and have the required licences, but they will also sell other product put together by tour operators. A good analogy goes like this: if you want to buy a dining room table and chairs, you have two choices. You can go directly to the factory where one company makes the table and chairs and buy from the creator of the product. However, you will only, at that factory, see furniture made by that one manufacturer. IF you go to a high street store and browse their furniture department, you can choose from a range of furniture made by several different furniture makers, but none of the furniture has been made by the high street retail store. 4.5 KEYWORDS Agent: one who acts or has the power to act as the representative of another. Most frequently in travel anyone other than a principal, such as a retail travel agent, receiving agent, ticket agent, local operator, or wholesaler. Air Coupon: One flight coupon that allows passengers to fly internationally on several airlines. Infrastructural Facilities: These include facilities like Airport, Roads, Drainage, and Buildings etc. at a destination. Promotion: All activities such as advertising, publicity, personal selling, and public relations, which are carried out to enhance sales. 54 CU IDOL SELF LEARNING MATERIAL (SLM)
Travel Agent: An individual or a firm who is authorized by the airlines, hotels, etc. to enhance the sale of all travel related services. Tour Operator: A company or a firm, which designs tour packages and makes them available to customers through travel agents. 4.6 LEARNING ACTIVITIES 1. Create a travel brochure of your hometown. 2. Divide yourself in groups and work on English vocabulary at the same time in this interactive, hands-on lesson. 4.7 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. How many kinds of travel operations are there? 2. What is the difference between inbound and outbound travel operations? 3. What is domestic travel operation? 4. What are the different organizations that a travel agency is linked with? 5. Define tourism technique and its importance in worldwide web promotion? Long Questions 1. Write a detailed note on different functions of a travel operation? 2. Define the various current trends in the management of travel organization. 3. Write a short note on ‘Computer Reservation System.’ 4. Explain the functions of a travelagency? 5. What is meant by ‘M-Commerce’? B. Multiple Choice Questions 1. How the term travel originated from? a. French 55 CU IDOL SELF LEARNING MATERIAL (SLM)
b. Greek 56 c. European d. None of these 2. When was the first usage of the word travel in? a. 16th century b. 15th century c. 14th century d. 10th century 3. What are the Different motives of travel? a. Recreation b. Leisure c. Education d. All of these 4. Whattravel is known as people who travelledbased on business? a. Leisure travel b. Business travel c. Corporate travel d. Commercial travel 5. What does US transportation and tourism administration standfor? a. USTAA b. USTTS c. USTTA d. USTIA Answers 1-a, 2-c 3-d, 4-b, 5-c 4.8 REFERENCES References CU IDOL SELF LEARNING MATERIAL (SLM)
Angelo, A., & Francesca Di Virgilio and Isabel C. [Camillo]. (2017). The Impact of Social Network on Italian Users: Behavioural Intention for the Choice of a Medical Tourist Destination Mahir Nakip&Aytaç Gökmen. (2018). The Importance of the Destination Choices of Tourists: The Case of Kazakh Tourists Visiting Turkey. International Journal of Tourism and Hospitality Management in the Digital Age. Nicholas, A. Ramchurjee,& Charles, V. Ramchurjee. (2018).an Evaluation of the Attitudes and Perception of the Local Communities in Mysore: Towards the Impacts of Tourism Development. International Journal of Tourism and Hospitality Management in the Digital Age Textbooks Chand Mohinder. (2006). Travel Agency Management: An Introductory Text. New Delhi: Anmol Publications Pvt. Ltd. Sinha, P.C. (n.d). Tourism:Transport and Travel Management. New Delhi: Anmol Publication Pvt. Ltd. Mohinder Chand Dhiman.& Ravi Bhushan Kumar.(2006). Building Foundations for Understanding the International Travel Agency and Tour Operation. New Delhi: Anmol Publication Pvt. Ltd. Websites http://www.hindu.com/thehindu/2001/08/02/stories/0602000n.htm .http://www.ttsvisas.com/visas.aspx?page=FAQ. www.igi-global.com/article/an-evaluation-of-the-attitudes-and-perception-of-the- local-communities-in-mysore-towards-the-impacts-of-tourism- development/201104?camid=4v1a 57 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 5 – TAAI ANDIATO STRUCTURE 5.0 Learning Objectives 5.1 Introduction 5.2 Role of TAAI and IATO 5.2.1 Demonstrate Effective Sustainable Management 5.2.2 Maximize Social and Economic Benefits 5.2.3 Maximize Benefits to Cultural Heritage 5.2.4 Maximize Benefits to the Environment 5.3 Summary 5.4 Keywords 5.5 Learning Activity 5.6 Unit End Questions 5.7 References 5.0 LEARNING OBJECTIVES After studying this unit, you will be able to: Explain the need for tourism organization. Describe various types of tourism organisations. List main objectives of tourism organization. Explain functions and relevance of some of these organizations. Describe how national, regional, and trade organizations are structured and operated under TAAI and IATO. 5.1 INTRODUCTION Participation is the key word. The growth and development of any discipline depends largely on the manner in which it associates itself with those pursuing similar disciplines. The international organisations provide a platform where ideas are exchanged, and problems of mutual interest discussed. In other words, organisation means combination of group of individuals whose main purpose is to achieve through group action the objectives for which it has been set up. 58 CU IDOL SELF LEARNING MATERIAL (SLM)
Association of an organisation with a particular discipline with similar such organisations becomes a combined effort to develop the discipline. This association can be at various levels – Local, Regional, National, and International. The tourism organisations emerged with the objective of developing and promoting the subject of tourism. The role of tourism organisation in strengthening tourism by way of combined efforts is therefore of vital importance. This unit focuses on some of the organizations that perform the catalyst, planning, development, and promotion functions within destinations. There are numerous organisations existing today. Some of these organisations are specifically concerned with development and promotion of tourism at the International level while others deal with the development and promotion of tourism in a particular region. There are other international organisations, which do not concern themselves specifically with tourism but with field indirectly connected with tourism like airlines, travel agents and the hoteliers. Over the years, a number of organisations have emerged in tourism. They have played a vital role in tourism policy formation, planning, promotion, infrastructure and resort development, protecting the rights of tourists, negotiations etc. Factors like importance of tourism in generating foreign exchange, employment prospects, national interests, and at times the stage of development have determined the need for such organisations and accordingly influenced their growth and functions. These organisations exist in public sector as well as private sector and at different levels i.e., global, national, state, and local. For example, World Tourism Organisation, Indian Tourism Development Corporation, Uttarakhand Tourism Development Board etc. A recent addition has been of some NGO’s devoting full time to issues concerning tourism. Different segments of the industry also have their own organisations to defend and promote their rights like the Travel Agents Association of Tourist Guides Association. 5.2ROLES OF TAAI AND IATO Travel Agents Association of India was established by a group of twelve leading travel agents in 1951 is perhaps the largest Travel Association of India. Now TAAI has a staggering 2400 members under its banner with the objective to regulate the travel industry in India. Down the years, TAAI has earned the reputation as the voice of the Travel and Tourism industry in India by dint of their dedicated, dynamic, and professional service. The primary purpose was to: Protect the interests of those engaged in the industry. Promote its orderly growth and development and safeguard the travelling public from exploitation by unscrupulous and unreliable operators. TAAI is a professional coordinating body consisting of various segments of the travel and tourism industry. It is recognised as the main representative body of the travel industry in India. It is a non-political, non-commercial and a non-profit making body. It is very much aware of the unprecedented pace in which the travel industry is growing. Therefore, to keep a check on any unethical practices by the member agencies, TAAI has a strict Code of 59 CU IDOL SELF LEARNING MATERIAL (SLM)
Ethics that sets certain parameters for the members. These norms ask the travel agents and tour operators to maintain an honest and clear relation with the travellers with proper information on deals, schemes, and monetary issues. Apart from the rapport with the travellers, TAAI makes sure that the members keep the spirit up with the Fellow Members and other Travel Agents. Objectives The set of primary objectives for TAAI has been clearly mentioned as: 1. Apply superior technical skills to the job on hand. 2. Deliver the highest quality of service. 3. Act with responsibility within sound financial parameters. 4. Build trust and credibility in the marketplace. 5. Helping promote, maintain, and stimulate the growth of travel and tourism in the country. 6. Maintaining close contact with world bodies and representing matters affecting the travel and tourism industry of India. 7. Educating and equipping members to meet future challenges through seminars, conventions and sharing of thoughts and experiences. Gathering and disseminating useful information on travel and tourism among members for their guidance. The membership spot of TAAI is multi-faceted with Active, Allied and Associate members comprising of IATA accredited Travel Agencies, Airlines and General Sales Agencies, Hotels and Tour operators. The membership criteria for each category differ, as the Active members need to be an IATA Agent, whereas the Inbound Tour Operators must be recognized by the Department of Tourism, Government of India. Indian Association of Tour Operators Over the year, the functions of the travel companies have increased considerably. The travel agencies are no more acting as intermediaries between the vendors and tourists. They are specialized in one product line i.e., tour packaging. Today, they are the manufacturers of tourism products and are commonly known as ‘tour operators‘. Tour operators have their own price tag for earning a profit and have developed several tour promotional programs. However, to encourage, assist, and to protect the interests of tour operators, the Indian Association of Tour Operators was formed in 1982. IATO was established in 1982 at the national capital Delhi. The association is the representative body of tour operators. IATO promotes, develops, and helps the members to maintain and set up high ethical standards in the industry. It has been playing a very significant role in the promotion and development of inbound tourism. The IATO has taken many steps, which are necessary for promoting, assisting, and encouraging the development of travel and tourism throughout the 60 CU IDOL SELF LEARNING MATERIAL (SLM)
country, and has taken an initiative to secure the welfare of tourism business in all respects. The association has promoted an equal opportunity for all visitors to enjoy the travel facilities without the distinction of race, Colour, creed, and nationality. Objectives and Aims of IATO IATO is a large tourism organization in India. It is the association of tour operators. IATO helps in the development and promotion of travel and tourism in India. The main objectives of IATO are: To promote national integration, international welfare, and goodwill. To take necessary steps in the promotion, encouragements, and development of tourism in the country. To develop, promote, and encourage friendly feelings among the tour operators and travel agents/agencies. To protect the interest of the members. To set up and maintain high ethical standards. To settle the disputes of the members. To communicate and negotiate with chambers of commerce, IATA, DoT, Ministry of Tourism, and other organizations in other countries. To organize the promotional tour with DoT, Airlines, and International Tourism bodies. To institute awards for excellence in the travel trade. To assist students with the scholarship to pursue higher education or research for the development of tourism. To undertake such welfare activities as the members cannot take individually. To print and publish information material for the benefit of members. IATO Membership The membership of the association is open to all tourism and travel organizations in India and abroad if they have: Good professional reputation. Sound financial position. At least two years in the travel business. Recognized by DoT. Other terms and conditions imposed by the association from time to time. 61 CU IDOL SELF LEARNING MATERIAL (SLM)
The association has the following members: Active Members Associated Members Allied Members Honorary Members International Members To become a member of the IATO, organizations must apply on the prescribed form and must be proposed and seconded by the members of the association, of which one must be an active member. The application shall be considered by the executive committee and approved by a majority of 2/3 members. The decision of the executive committee will be final. Role and Functions of IATO Since the formation of IATO, the tour operation business has gained recognition and importance at globally. IATO has done remarkable work in the field of tourism promotion and development. Main roles and functions of IATO are following as: Promote national integration and international understanding. Acts as an image builder. Organizes ‘Farm Tour’. Encourage tourism education and research. Settle disputes between the members. Protect the members from the mal-practices. Tourism and travel associations exist in almost every country in the world. These associations lay down the guidelines; objectives aim to protect the interest of the members as well as tourists. The associations, directly and indirectly, promote tourism and build the image of the host country at the globe. These associations help the department of tourism to formulate effective and extensive tourism policies and strategies. 5.2.1 Demonstrate Sustainable And Effective Management The most commonly used definition of sustainable development is still that given in the report of the World Commission on Environment and Development, i.e.,sustainable development is ‘a process to meet the needs of the present without compromising the ability of future generations to meet their own needs.Sustainable development is therefore about creating a better life for all people in ways that will be as viable in the future, as they are at present. In other words, sustainable development is based on principles of sound husbandry 62 CU IDOL SELF LEARNING MATERIAL (SLM)
of the world’s resources, and on equity in the way, those resources are used and in the way in which the benefits obtained from them are distributed. The concept has evolved since the 1987 definition, notably through Agenda 21, the plan of action, which emerged from the UN Conference on Environment and Development, and the plan of implementation from the World Summit on Sustainable Development. Three dimensions or ‘pillars’ of sustainable development are now recognized and underlined. These are: Economic sustainability:which means generating prosperity at different levels of society and addressing the cost effectiveness of all economic activity? Crucially, it is about the viability of enterprises and activities and their ability to be maintained in the long term. Social sustainability:which means respecting human rights and equal opportunities for all in society? It requires an equitable distribution of benefits,with a focus on alleviating poverty. There is an emphasis on local communities, maintaining and strengthening their life support systems, recognizing and respecting different cultures and avoiding any form of exploitation Environmental sustainability:which means conserving and managing resources, especially those that are not renewable or are precious in terms of life support? It requires action to minimize pollution of air, land, and water, and to conserve biological diversity and natural heritage. It is important to appreciate that these three pillars are in many ways interdependent and can be both mutually reinforcing or in competition. Delivering sustainable development means striking a balance between them. 5.2.2 Maximize Social and Economic Benefits The most important economic feature of activities related to the tourism sector is that they contribute to three high-priority goals of developing countries: the generation of income, employment, and foreign-exchange earnings. In this respect, the tourism sector can play an important role as a driving force of economic development. The impact this industry can have in the different stages of economic development depends on the specific characteristics of each country. Given the complexity of tourism consumption, its economic impact is felt widely in other production sectors, contributing in each case toward achieving the aims of accelerated development. A major difficulty in defining the boundaries of the tourism sector is to ascertain what investment costs should be ascribed to the development of tourism. Although heretofore not treated by international agencies as a “sector” in national accounting terms, tourism entails a collection of goods and services that are provided specifically for visitors and would not have been provided otherwise. 63 CU IDOL SELF LEARNING MATERIAL (SLM)
Because of its interdependence with other sectors of the economy, it is difficult to analyse and plan for tourism. The lack of reliable statistical data hampers identification of the mechanisms by which tourism generates growth, as well as its potential for development. Yet, in those instances where analysis has been carried out and research has preceded planning, tourism’s priority in competing for scarce investment funds has been established. In these cases, long-term programs for tourism development have been designed. Nature and heritage tourism development has investment needs that differ, in certain respects, from traditional tourist hotel development. There may be a greater need to improve access to the attraction site or facility, and for a mode of development that does not interfere with a sensitive habitat or historic area. 1. Elements of Supply and Demand i. Three primary factors influence the level of nature and heritage tourism demand: overall tourism growth, the growth in specialty travel, and increasing awareness of and concern for the environment. A number of elements in turn influence each of these factors. Overall tourism, for instance, is expected to continue to grow more rapidly than world economic output because of factors such as population growth, rising incomes and employment, shorter workweeks in many parts of the world, and the increasing integration of the world’s economies and societies. Some of the same factors fuel the rapid growth of specialty travel, but there are a number of additional explanations: the boom in outdoor recreation and the new interest in health and fitness, for example. Environmentalism is another of the elements that have changed people’s attitudes about how they should spend their vacations. 2. Tourism and GDP i. The tourism sector in the Latin American and Caribbean countries contributes significantly to GDP earnings, though this contribution is not reflected in the domestic income and product accounts of most countries. In the Bahamas, tourism accounts for about one-third of GDP, and most sectors of economic activity are directly or indirectly linked to it. In Barbados, tourism is the leading economic sector, accounting for 15 percent of the GDP in 1992. In Jamaica, the tourism contribution to GDP was 13.4 percent in 1992, while in Mexico it was only 4 percent. ii. Not all tourism receipts are retained within the economy. In fact, there is an outflow of foreign exchange for some of the goods and services consumed by visitors, as well as for capital goods invested in tourism and for payments abroad. Import needs depend on the level of development and the degree of diversification of a country’s economy. These needs are also dependent on the availability of substitutes for imported products and on the qualitative level of the tourist supply in each country. 64 CU IDOL SELF LEARNING MATERIAL (SLM)
3. Tourist Income Multiplier and Value-Added i. The tourist income multiplier is a coefficient that expresses the amount of income generated by a unit of tourism expenditure.6 In Jamaica, a stopover visitor spending one dollar creates a ripple effect of US$1.60 within the local economy, while a dollar spent by a cruise-ship visitor generates US$1.20. In the Dominican Republic, the time has been estimated at US$1.70. The calculations are based on the familiar Keynesian multiplier K = 1/MPS + MPM, where MPS is the marginal propensity to save and MPM the marginal propensity to import, ii. The value-added concept is particularly important when considering the impact of tourism in the Caribbean region. Value is added when a product is developed, processed, refined, or marketed in a manner that allows it to be sold at a higher price than the prices of the raw materials, services, and components bought for its production. Countries with large domestic agricultural sectors supplying tourist consumption are well positioned to achieve higher levels of value-added in the tourism sector. iii. When a country’s natural resources are packaged by foreign tour operators and sold through sophisticated marketing techniques, a substantial portion of the value-added is created and captured by those tour operators and therefore not returned to the country. To increase the value-added of tourism, host-country businesses and residents must offer travel services such as packaged tours, offering locally owned accommodations and providing the necessary means to visit natural areas. 4. Income Distribution Effectand Employment i. The IDE offers one of the strongest socioeconomic arguments in favour of tourism development. It describes how income generated by the sector is distributed. The analysis can be undertaken at a spatial and at a functional level. ii. At the spatial level, tourists prefer to travel in regions with little industrial development. They also tend toward areas of little agricultural value. For these reasons, tourism can become a dynamic force in regional economies. Within a country, tourism demand originates in urban concentrations where the highest incomes are found. A percentage of such incomes are normally set aside for tourism in areas that are geographically different from the visitors’ home base, reinforcing the process of internal income redistribution. Internationally, a portion of the tourism consumption by developed countries occurs in developing countries, favouring the process of international income redistribution. iii. At the functional level, the income generated tends to favour employment, which is estimated to contribute more to the total value-added of the industry than other factors do, because so much of tourism involves personal services. It has been 65 CU IDOL SELF LEARNING MATERIAL (SLM)
estimated that, worldwide, tourism directly or indirectly supports sixty-five million jobs, including hotel managers and staff, taxi drivers, tour operators, and shop attendants, among others. Secondary employment is generated in agriculture, industry, handicrafts, and services. 5.2.3 Maximize Benefits to Cultural Heritage Culture and heritage tourism plays a critical role in building the visitor economy and goes even beyond that. A recent survey showed that over 50% of respondents polled agreed that history and culture are strong influences on their choice of holiday destination. Statistics also indicate that culture and heritage tourism continues to grow as rapidly, especially in OECD and APEC regions. We estimate the direct global value of culture and heritage tourism to be well over $1billion dollars, with that of the Asia Pacific region being approximately $327 million. It is already directly responsible for more than 50 million jobs in APEC countries. What’s more, the indirect benefits of culture and heritage tourism are thought to be of the order of $1 billion and account for a further 75 million jobs across the region. There is no denying the fact that culture and heritage tourism tends to attract high-yield tourists. While global figures can be hard to obtain, all available statistics on tourism in various individual markets like the UK, New Zealand, Australia, India, etc. reveal a consistent pattern. Culture and heritage tourists often stay longer and spend a lot more money in general than other tourists do. In fact, one study showed that a culture and heritage tourist spent as much as 38% higher per day and they stayed 22% longer overall compared to other kinds of travellers. Although the statistical evidence does not show consistency when it comes to repeat visitors, tourism data on United States Culture and Heritage visitors indicates that, the level of repeat visitation amongst this group of travellers is higher than that of traditional tourists. It Builds Engagement Culture and heritage tourists usually visit cultural heritage attractions such as historic buildings and other historic attractions; archaeological sites; state, local, or national parks; art galleries or museums; concerts, plays or musicals; ethnic or ecological heritage sites; and suchlike attractions. These travellers say that these trips are more memorable than conventional holiday trips since they allow them to learn something new.This focus on learning skills and gain enrichment has been identified by Trend watching as a core global trend in travel. Culture and heritage tourists say they often extend their stay because of a heritage activity. The majority of these travellers stay overnight at local motels, hotels, bed and breakfasts, or campgrounds. Culture and heritage tourists also tend to put more money back into the local economy, spending more than other kinds of tourists Culture and Heritage Tourism graph image per trip. However, these economic benefits are not the only reason why heritage tourism may be good for the community. 66 CU IDOL SELF LEARNING MATERIAL (SLM)
The benefits of culture and heritage tourism are amplified through the economy, so their impact is much wider than just the direct spending levels. As Simon Thurley of English Heritage has shown in his Heritage Cycle, heritage tourism has benefits that extend beyond the solely economic. So, what are the benefits? Generally, the benefits of heritage tourism can be categorized into three groups: economic, social, and environmental. As they tend to be the highest focus for destinations and policy makers, we have focused on the economic benefits first. Economic Benefits of Cultural and Heritage Tourism Injects new money into the economy, boosting businesses and tax revenues Creates new jobs, businesses, events and attractions, thus helping diversify the local economy Supports small businesses and enables them to expand Promotes the active preservation and protection of important local resources Builds vital relationships among and within local communities helps encourage the development and maintenance of new/existing community amenities Social Benefits of Cultural and Heritage Tourism Helps Build Social Capital Promotes preservation of local traditions, customs, and culture. UNESCO now recognises intangible cultural heritage as being as important as buildings.A market for culture and heritage tourism experiences and traditional projects provides the economic support for keeping these skills and traditions alive Promotes positive behaviour. Helps improve the community’s image and pride Promotes community beautification Builds opportunities for healthy and useful community relationships and partnerships Provides research, education and work-placement opportunities for students Creates enjoyable opportunities for both local residents and visitors attracted to the cultural arts, history and preservation Boosts local investment in heritage resources and amenities that support tourism services There is even evidence that by helping to maintain buildings of character culture and heritage tourism can contribute to the innovation and business diversification of precincts.Small businesses based in amazing buildings are typically innovators and provide a core for other larger businesses. Environmental Benefits of Cultural and Heritage Tourism Helps encourage a culture of preservation 67 CU IDOL SELF LEARNING MATERIAL (SLM)
Boost awareness of the tourist site, attraction or area’s significance Helps encourage local residents and visitors to be mindful about their impact on the natural and built environment Although there is a risk that this type of tourism can lead to a place being ‘loved to death’, properly handled it can provide a reason to invest in things like sewage and water resources in areas. 5.2.4 Maximize Benefits to the Environment Sound environmental management of tourism facilities and especially hotels can increase benefits to natural areas. However, this requires careful planning for controlled development, based on analysis of the environmental resources of the area. Planning helps to make choices between conflicting uses, or to find ways to make them compatible. By planning early for tourism development, damaging and expensive mistakes can be prevented, avoiding the gradual deterioration of environmental assets significant to tourism. Cleaner production techniques can be important tools for planning and operating tourism facilities in a way that minimizes their environmental impacts. For example, green building is an increasingly important way for the tourism industry to decrease its impact on the environment. In addition, because waste treatment and disposal are often major, long-term environmental problems in the tourism industry, pollution prevention and waste minimization techniques are especially important for the tourism industry. Tourism has the potential to increase public appreciation of the environment and to spread awareness of environmental problems when it brings people into closer contact with nature and the environment. This confrontation may heighten awareness of the value of nature and lead to environmentally conscious behaviour and activities to preserve the environment. If it is to be sustainable in the end, tourism must incorporate the principles and practices of sustainable consumption. Sustainable consumption includes building consumer demand for products that have been made using cleaner production techniques, and for services including tourism services that are provided in a way that minimizes environmental impacts. The tourism industry can play a key role in providing environmental information and raising awareness among tourists of the environmental consequences of their actions. Tourists and tourism-related businesses consume an enormous quantity of goods and services; moving them toward using those that are produced and provided in an environmentally sustainable way could have an enormous positive impact on the planet's environment. 5.3 SUMMARY Participation is the keyword. The growth and development of any person Discipline largely depends on how you relate me and those who pursue similar disciplines internationality. 68 CU IDOL SELF LEARNING MATERIAL (SLM)
The organization provides a platform for the exchange of ideas discussed topics of common interest. In other words, the means of organization A group of people whose main objective is to achieve a goal through collective action, it has set goals. Association of organizations with similar specific disciplines these organizations become a joint effort to develop disciplines. The association can have multiple levels: local, regional, national, and International. Tourism organization came into being Develop and promotes tourism themes. The role of tourism organizing to join forces to strengthen the tourism industry is,so it is very important. This unit focuses on some organizations internal catalyst, planning, development and advocacy functions destination. There are currently many organizations. Some these organizations pay special attention to development and Promote international tourism Level while others deal with Develop and promote tourism in specific areas. exist Other international organizations that don't care about themselves Areas specifically related to tourism but indirectly related to tourism, such as Airlines, travel agencies and hotel operators. Over the years, various organizations have emerged in the tourism industry. them Played a vital role in the formation, planning, promotion and promotion of tourism policies Tourism infrastructure and development, protecting the rights of tourists, Negotiations and other factors such as the importance of tourism in earning foreign exchange, employment prospects, national interests and other factors, sometimes, The development stage determines the demand for such organizations Thus affecting their growth and function. These organizations exist in the public and private sectors, as well as Different levels, namely global, national, state, and local. For example, the world Tourism Organization, Indian Tourism Development Corporation, Uttarakhand Tourism Development Committee etc have recently added Some NGOs work full time on issues related to the tourism industry. Different Industry segments also have their own organizations to advocate for and promote your rights, such as the Association of Travel Agents and Tourist Guides association. Participation is the key word. The growth and development of any discipline depends to a large extent on the manner in which it associates Itself with those pursuing similar disciplines. The international organisations provide a platform where ideas are exchanged and Problems of mutual interest discussed. In other words, organisation means Combination of a group of individuals whose main purpose is to achieve through group action the objectives for which it has been set up. 69 CU IDOL SELF LEARNING MATERIAL (SLM)
Association of an organisation with a particular discipline with similar such organisations becomes a combined effort to develop the discipline. This association can be at various levels – Local, Regional, National and International. The tourism organisations emerged with the objective of Developing and promoting the subject of tourism. The role of tourism Organisation in strengthening tourism by way of combined efforts is therefore of vital importance. This unit focuses on some of the organizations that perform the catalyst, planning, development, and promotion functions within Destinations. There are numerous organisations existing today. Some of these organisations are specifically concerned with development and promotion of tourism at the International level while others deal with the development and promotion of tourism in a particular region. There are other international organisations which do not concern themselves specifically with tourism but with field indirectly connected with tourism like Airlines, travel agents and the hoteliers. Over the years, a number of organisations have emerged in tourism. They have played a vital role in tourism policy formation, planning, promotion, infrastructure and resort development, protecting the rights of tourists, negotiations etc. Factors like importance of tourism in generating foreign exchange, employment prospects, national interests, and at times the stage of development have determined the need for such organisations and accordingly influenced their growth and functions. These organisations exist in public sector as well as private sector and at different levels i.e., global, national, state, and local. World Tourism Organisation, Indian Tourism Development Corporation, Uttarakhand Tourism Development Board etc. A recent addition has been of some NGO’s devoting full time to issues concerning tourism. Different segments of the industry also have their own organisations to defend and promote their rights like the Travel Agents Association of Tourist Guides Association. 5.4 KEYWORDS TAAI: Travel Agent Association of India. The Travel Agents Association of India (TAAI) is an organization formed to regulate the travel industry in India along organized lines and in accordance with sound business principles. The primary 70 CU IDOL SELF LEARNING MATERIAL (SLM)
purpose was to protect the interests of those engaged in the industry, to promote its orderly growth and development and to safeguard the travelling public from exploitation by unscrupulous and unreliable operators IATO: Indian Association of the Tour Operators. IATO is the association of expert inbound tour-operators whose members are recognized / approved by Ministry of Tourism, Government of India. WTO: World Trade Organization. The World Trade Organization is an intergovernmental organization that regulates and facilitates international trade between nations. Governments use the organization to establish, revise, and enforce the rules that govern international trade. Tour Operators: A tour operator is a business that typically combines and organizes accommodations, meals, sightseeing and transportation components, to create a package tour. Tour Agency: A travel agency is a private retailer or public service that provides travel and tourism-related services to the public on behalf of accommodation or travel suppliers to offer different kinds of travelling packages for each destination. 5.5LEARNING ACTIVITY 1. Analyse the Significance of Peace and Security to the Growth and Development of the Tourism Industry in a Country ___________________________________________________________________________ ___________________________________________________________________________ 2. Investigate the Negative Impacts of Tourism to a Country: A Look at New Strains of Sexually Transmitted Diseases Introduced by Tourists ___________________________________________________________________________ ___________________________________________________________________________ 5.6UNIT END QUESTIONS A Descriptive Questions Short Questions 1. Explain the need for organizations in the tourism industry. 2. Explain the role of WTO in tourism promotion. 3. Discuss the aims of IATA. 4. What do the following abbreviations stand for? Write down their roles. 71 CU IDOL SELF LEARNING MATERIAL (SLM)
i. WTTC 72 ii. STDC 5. Write down roles of TAAI and IATO. Long Questions 1. Discuss the role and functions of IATO. 2. Discuss the functions of TAAI. 3. Mention the objectives of FHRAI. 4. Give the steps for establishing a travel agency. 5. How the Ministry of Tourism approves a tour operator? B Multiple Choice Questions 1. Which age was wheel invented? a. Neolithic b. Palaeolithic age c. Middle age d. Age between 3000 BC to 1200 BC 2. Who invented wheels? a. Palestinians b. Sumerians c. Europeans d. Indians 3. Who appeared in the first modern travel agency? a. Benjamin D john b. Thomas cook c. Macro polo d. Alexander 4. What year the grand tour concept started? a. 1730 b. 1617 c. 1714 d. 1815 CU IDOL SELF LEARNING MATERIAL (SLM)
5. Which year weresteamboatservices introduced? a. 1630 b. 1731 c. 1815 d. 1430 Answers 1-a, 2-b, 3-b, 4-c, 5-c 5.7REFERENCES References Angelo, A. & Francesca Di Virgilio and Isabel C. [Camillo]. (2017).the Impact of Social Network on Italian Users: Behavioural Intention for the Choice of a Medical Tourist Destination. Mahir Nakip&Aytaç Gökmen. (2018). The Importance of the Destination Choices of Tourists: The Case of Kazakh Tourists Visiting Turkey. International Journal of Tourism and Hospitality Management in the Digital Age. Nicholas, A. Ramchurjee,& Charles, V. Ramchurjee. (2018).an Evaluation of the Attitudes and Perception of the Local Communities in Mysore: Towards the Impacts of Tourism Development. International Journal of Tourism and Hospitality Management in the Digital Age Textbooks Chand Mohinder. (2006). Travel Agency Management: An Introductory Text. New Delhi: Anmol Publications Pvt. Ltd Sinha, P.C. (n.d). Tourism:Transport and Travel Management. New Delhi: Anmol Publication Pvt. Ltd. Mohinder Chand Dhiman.&Ravi Bhushan Kumar.(2006). Building Foundations for Understanding the International Travel Agency and Tour Operation. New Delhi: Anmol Publication Pvt. Ltd. Websites http://www.hindu.com/thehindu/2001/08/02/stories/0602000n.htm .http://www.ttsvisas.com/visas.aspx?page=FAQ. www.igi-global.com/article/an-evaluation-of-the-attitudes-and-perception-of-the- local- 73 CU IDOL SELF LEARNING MATERIAL (SLM)
communities-in-mysore-towards-the-impacts-of-tourism- development/201104?camid=4v1a 74 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 6 – FACTORS RESPONSIBLE FOR GROWTH OF TRAVEL SECTOR STRUCTURE 6.0 Learning Objectives 6.1 Introduction 6.2 An Overview of Factors of Travel Trade In Early Periods 6.3 Factors Responsible For Recent Growth of Air Travel 6.4 E- Booking 6.5 Changes in Online Consumer Behaviour 6.6 New Direction of Indian Civil Aviation 6.7 Factor Responsible For Growth of Road Transport 6.8 Factor Responsible For Growth of Water Transportation 6.9 Factor Responsible For Growth of Indian Railways 6.10 Socio Economic Factors 6.11 Summary 6.12 Keywords 6.14 Learning Activity 6.15 Unit End Questions 6.16 References 6.0 LEARNING OBJECTIVES After studying this unit, you will be able to: Illustrate An Overview of Factors of Travel Trade In Early Periods. AnalyseFactors Responsible For Recent Growth of Air Travel. Explain E- Booking. Illustrate Change in Online Consumer Behaviour. Explain New Direction of Indian Civil Aviation. 75 CU IDOL SELF LEARNING MATERIAL (SLM)
6.1 INTRODUCTION Tourism industries play great role in the development of a world, and it positively and negatively correlated with the economic growth of the global economy. Seeing to its importance the present study was arranged since 23, March 2020. The study was based on the world data. The major objective was to examine the factors affecting tourism industry positively and negatively. The impact on the global economy of the world was also studied. The study required Secondary dataand total 18 articles were downloaded from the internet.It helped in analysing the situation.The analysis showed, tourism industry keep tight correlation with the economic growth of the global economy.But there are so many factors which affect the tourism industry positively and negatively.In the long run or short run affect the global economy of the world negatively and positively. Among these factors culture, peace, security, developed infrastructure of the world, visa facilities, natural beautification, attitude of the people, tourist number, Quarantine, World population, Education, Income level, Price level of different commodities in the world, different languages and fare of hotel etc are the well- known factors which affect the tourism industry positively and negatively in the world. Similarly, on one side these factors push the tourism industry in the short and long run positively and negatively while on the other side affect the economic growth of the global economy of the world negatively and positively. Recently due to bad quarantine the corona virus spread into the whole world which has now closed all sectors of the world economies and the government have banned people from social contacts from one another in the world and the government told to them to stay at your home and through this methodology which was applied by China will be escaped from this virus pandemics. Therefore, tourism is link with every sector of the economy. Governments in the world earn more money. The people enjoy the time very well while government, which increase the revenue of the government and generate new employment in the countries of the world, which improve socioeconomic condition of the world community and give prosperity to them, charged them. There are many problems, which affect the industry negatively, but few are mentioned here for explanation: Terrorism decrease the number of tourist in the world; Visa problems and flight problems also decrease the number of tourist in the world; Bad transportation also affect the tourism industry negatively; Hotel and transportation high fare also decrease the number of tourist in the world; Bad attitude of the country also affect the tourism industry negatively in the world. Based on problems the study recommends that to provide tight security to tourism spot in the world. Decrease fare of the hotel and transportation in the world; Easy Visa and Transportation should be provided to tourist in the world; Clean food should be provided on the tourism spot to tourist in the world; Good and tight quarantine should be provided at the entry and out point in the world. 76 CU IDOL SELF LEARNING MATERIAL (SLM)
Tourist should be behaved in a good manner and never used abused words to them; always give honour to tourist in the world on the tourism spot. Good and honest staff should be appointed in the tourism industry for running the system. All world government should prepare good policy for tourism enhancement. 6.2 AN OVERVIEW OF FACTORS OF TRAVEL AND TRADE Long before the invention of the wheel, travel occurred for a variety of reasons. In the beginning, it was simple. As seasons changed and animals migrated, people travelled to survive. Because these early travellers moved on foot, they were confined to small geographic areas. Travel may have remained a localized experience, but people by nature are curious. It is easy to imagine these early travellers climbing a mountain or crossing a river to satisfy their own sense of adventure and curiosity as they sought a glimpse of the unknown. We can only guess at the wonder and amazement of early travellers as they made each new discovery. However, a rich history of people and cultures forms the foundation of tourism. History provides important insights into the reasons for travel and the eventual development of tourism. Based on early records, we know that many cultures and nations moved great armies and navies to conquer and control resources and trade routes. Although military forces often travelled great distances, it was probably not until the emergence of the Egyptian, Eastern Mediterranean, and Roman Empires that travel began to evolve into tourism, as we know it today. Early recorded history provides a glimpse into ancient tourism activities. The Phoenicians, like many travellers, were interested in travel because of a sense of curiosity and discovery as well as a means of establishing trade routes. Although written records are scarce, other people’s such as the Mayans on the Gulf Coast of what are now Mexico and the Shang Dynasty in what is now present-day China probably travelled for many of the same reasons as the Phoenicians. Evidence of their travels can be found in the artifacts They collected during their journeys to faraway places. One thing we know for sure is that as civilizations became established and spread geographically, travel became a necessity. The Empire Era The point at which simple travel evolved into the more complex activities of tourism is hard to identify. However, tourism as an industry probably began to develop during the Empire Era, which stretched from the time of the Egyptians to the Greeks and finally ended with the fall of the Roman Empire. During this time, people began travelling in large numbers for governmental, commercial, educational, and religious purposes out of both necessity and pleasure. The Egyptian Kingdoms were the first known civilization to have consolidated governmental functions at centralized locations. Travel to these locations by boat was particularly easy because travellers could use the Nile River, which flowed northward but 77 CU IDOL SELF LEARNING MATERIAL (SLM)
was constantly brushed by southward breezes. Because oars were not needed, travel in either direction was relatively effortless. Boats could go north with the current or south with sails. As travel became commonplace, basic necessities such as food and lodging had to be provided. Several factors combined to encourage travel during the height of the Egyptian, Greek, and Roman Empires. Large numbers of travellers began to seek out enjoyable experiences in new locations. The most notable group of these travellers, because of their numbers, was the Greeks. The Greek Empire promoted the use of a common language throughout much of the Mediterranean region, and the money of some Greek city-states became accepted as a common currency of exchange. As centres of governmental activities, these city-states became attractions in themselves. They offered visitors a wide variety of opportunities to enjoy themselves while away from home. Shopping, eating, drinking, gaming, and watching spectator sports and theatrical performances are just a few of the many activities that grew out of travel and evolved into the more encompassing aspects of tourism. The growth of the Roman Empire fostered expanded tourism opportunities for both middle- class and wealthy citizens. Good roads and water routes made travel easy. As these roads were developed, so were inns, which were located approximately 30 miles apart, making for a day’s journey. Fresh horses could be hired at the inns and at relay stations that are more frequent. With effort, people could travel 125 miles a day on horseback, knowing they would have a place to eat and sleep at the end of the day. These roads, which connected Rome with such places as Gaul, Britain, Spain, and Greece, eventually extended into a 50,000-mile system. The most famous road was the Appian Way, joining Rome with the “heel” of Italy. Many of the hassles of travel to distant places were removed because Roman currency was universally accepted and Greek and Latin were common languages. In addition, a common legal system provided protection and peace of mind, allowing people to travel farther away from home for commerce, adventure, and pleasure. Just like the Greek city-states, cities in the Roman Empire became destination attractions or way side stops along the way to a traveller’s final destination. Has this brief glimpse into ancient history taught us anything of use today? The answer is yes. Even today, tourism activities continue to flourish where individuals have free time; travel is easy and safe; there are easily exchangeable currencies; common languages are spoken; and established legal systems create a perception of personal safety. The absence of any of these factors can dampen people’s desire to travel and enjoy tourism- related activities, as can be seen in the demise of travel during the Middle Ages. The middle ages and the Renaissance era Travel almost disappeared during the middle ages. As the dominance of the Roman Empire crumbled, travel became dangerous and sporadic. The feudal system that eventually replaced roman rule resulted in many different autonomous domains. This breakdown in a previously organized and controlled society resulted in the fragmentation of transportation systems, currencies, and languages, making travel a difficult 78 CU IDOL SELF LEARNING MATERIAL (SLM)
and sometimes dangerous experience of crusades to retake the Holy Land. There were nine of these Crusades, but each failed. In 1291, the Muslims, ending the Crusades, retook Acre, the last Christian stronghold. Although conquest and war were the driving forces behind the Crusades, the eventual result was the desire of people to venture away from their homes to see new places and experience different civilizations. After the Crusades, merchants such as Marco Polo travelled to places well beyond the territories visited by the Crusaders. Reports of Polo’s travels and adventures across the Middle East and into China continued to heighten interest in travel and trade. The rebirth in travel emerged slowly during the Renaissance. Merchants began to venture farther from their villages as the Church and kings and queens brought larger geographic areas under their control. Trade routes slowly began to reopen as commercial activities grew and merchants ventured into new territories. The idea of travelling for the sake of experiences and learning can probably be attributed to the first recorded “tourist,” Cyriacus of Ancona. His journeys took him around the Mediterranean Sea in a quest to learn more about and experience Greek and Roman History.14 The desire to learn from and experience other cultures heightened awareness of the educational benefits to be gained from travel and led to the Grand Tour Era. The Grand Tour Era The Grand Tour Era, which marked the height of luxurious travel and tourism activities, originated with the wealthy English and soon spread and became fashionable among other individuals who had time and money. Travel, and the knowledge provided by these travels, became a status symbol representing the ultimate in social and educational experiences. Grand Tour participants travelled throughout Europe, seeking to experience the cultures of the “civilized world” and acquire knowledge through the arts and sciences of the countries they visited. Their travels took them to a variety of locations in France, Switzerland, Italy, and Germany for extended periods, often stretching over many years. Although the desire to participate in the Grand Tour continued, the Industrial Revolution, which began c. 1750, forever changed economic and social structures. Whole nations moved from an agricultural and commercial focus to modern industrialism. People became tied to the regimented structures and demands of factory life and the management of business enterprises. Economic growth and technological advances led to more efficient forms of transportation, the integration of markets across geographic and international boundaries, and higher personal incomes for larger numbers of people. Travel became a business necessity as well as a leisure activity, and tourism suppliers rapidly developed to serve the growing needs of travellers. The days of leisurely travel over extended periods of time to gain cultural experiences faded away as fewer and fewer people were able to take advantage of these time-consuming opportunities. 6.3 FACTORS RESPONSIBLE FOR RECENT GROWTH OF AIR TRAVEL 79 CU IDOL SELF LEARNING MATERIAL (SLM)
However, the means of mobility and an interest in seeing new places were not enough. The seeds of mass tourism were planted during the first half of the 20th century when industrialists such as George Westinghouse created the paid vacation, believing that annual breaks from work for employees would increase productivity. The working and middle classes in industrialized countries thus were given the financial means and the time to satisfy their newfound wanderlust. Indeed, at the dawn of the 21st century, most workers in virtually all industrialized nations have several weeks of vacation time that they may choose to spend travelling. Mass tourism received an additional boost after World War II. During this war, millions of people throughout the world, including over 17 million Canadian and U.S. citizens, were exposed to many new, different, and even exotic locations as they served in a variety of military assignments. Military service forced many people who had never travelled before to do so, and they were eager to share their positive experiences with family and friends when they returned home. Following the end of World War II, several additional factors helped encourage the growth of tourism. Cars were again being produced in large numbers; gas was no longer rationed; and prosperity began to return to industrialized countries. As American families travelled around the country in cars, the motel business began to boom. Also in the 1950s, hotels and motels expanded quickly through the newly adopted franchising development model. The introduction of jet travel in the 1950s and its growing popularity in the 1960s further accelerated growth in both domestic and international travel. To grease the gears of the tourism industry even further, in 1950, the credit card was born in the form of the Diners Club card. Credit cards provided travellers with purchasing power anywhere in the world without the risk of carrying cash and the hassle of currency exchange. In fact, credit cards are now the preferred form of international buying power because travellers can charge their purchases in the local currency. Time, money, safety, and the desire to travel combined to usher in an unparalleled period of tourism growth that continues today. The 20th-century phenomenon that came to be known as mass tourism now includes two different groups of travelers.15 these groups are classified as organization mass tourists who buy packaged tours and follow an itinerary prepared and organized by tour operators. The second group is classified as individual mass tourists. These travellers visit popular attractions independently but use tourism services that are promoted through the mass media. In addition, many travellers are now seeking more than just going to a destination to be able to say, “been there, done that.” They have a desire to become truly immersed in all the destination has to offer and when able to, give back through educational and volunteer programs. Well into the 21st century, the tourism industry has proven to be full of opportunities and challenges. Widespread Internet access, opening of previously closed international borders, and increased wealth and mobility of citizens in increasingly industrialized countries such as 80 CU IDOL SELF LEARNING MATERIAL (SLM)
China and India are opening new venues for travellers and providing millions more potential tourists. Even countries such as Vietnam and Cuba that were once off limits to U.S. travellers are experiencing explosive tourism growth. However, the future is not completely rosy for tourism. Terrorism, political and economic instability, and health scares have discouraged travel. Increased security efforts have also meant increased hassles and time constraints for travellers at airports, borders, and attractions. Only time will tell what the future holds for us, as tourism industry members and as consumers of tourism services. This has been just a brief journey through some of the changes that have led to the growth of tourism. In later chapters, we will explore more of the historical details and importance of each of these changes as well as some of the more recent factors that have shaped the tourism industry. Case Study Indian Aviation Sector: Soaring High or Turbulence Ahead The Indian Aviation sector is poised to take off and soar high in an unprecedented manner. Indeed, the Aviation sector in India has come a long way from the humble beginnings in the pre-independence era where the legendary JRD Tata, pioneered the industry and introduced a small turboprop plane as the first connection to the outside world by air. Now, the Aviation sector is a stage where it boasts of excellent airports, best in the breed airlines, and an enviable safety record, though minor skirmishes are reported often. From being a preserve of the rich to the present where the Aam Admi is the focus of the airline industry, the aviation sector mirrors the development and evolution of the Indian Economy over the decades. Added to this is the fact that successive Indian Governments since the 1990s when the Indian Economy was liberalized have actively encouraged the development of the sector by providing subsidies and establishing excellent airports, though at a tardy pace given the inherent complexities of the Indian political and socioeconomic landscape. Thus, it can be said that the Indian Aviation sector is both poised to take off as far as the future is concerned and is soaring high as far as the present is concerned. Factors Dragging the Sector Down Having said that, there are a few bottlenecks or chokepoints that have stymied the development and the growth of the Indian Aviation Sector. Prominent among these is the capacity addition in the airports across India where the present infrastructure is unable to support the ambitious expansion plans of the various airlines. Indeed, even after building gleaming and glittering airports in all the Metros under the PPP or the Public Private Partnership model, airlines are routinely denied landing rights and parking bays for want of capacity. 81 CU IDOL SELF LEARNING MATERIAL (SLM)
Further, the fact that the blistering pace of growth in the sector means that despite adding capacity in a quick manner, airports are unable to handle the ever-increasing load of footfalls in terms of arrivals and departures. Though the Indian Government has put in place policies such as the UDAAN Scheme, the Regional Connectivity Scheme, and various others aimed at persuading and incentivizing airlines to connect to remote locations, the pathetic state of the infrastructure in such areas means that such schemes would take time to fructify. Of course, the massive push to develop Tier 2 and Tier 3 airports is clearly a right step in the direction of broadening the base of the infrastructure pyramid so that flyers from rural areas can benefit as well. However, this push is succeeding in states where the state governments are actively encouraging such developments whereas in other regions, the initiative is lagging the former. How the Indian Aviation Sector Became World Class Having said that, it is also the case that the crowning glory of the Indian Aviation sector lies in the dirt-cheap prices that are offered to the passengers and which are among the lowest in the world as far as LCC or Low-Cost Carriers are concerned. Talking about LCCs, the Indian Aviation sector was among the first in the developing world to take the LCC route with Capt Gopinath launching Deccan Aviation or Air Deccan, which had the logo of the famous cartoonist, RK Lakshman’s common person flying. Though it is another matter that Air Deccan was acquired by the now defunct Kingfisher airlines, whose high-flying promoter, Vijay Mallya, went bankrupt a few years ago, the fact remains that the LCC concept caught on among other airlines as well. Talking about the personalities and the airlines that have dominated the Indian Aviation sector, it is the case that most of the Airlines, which took advantage of the liberalized Indian Economy in the 1990s, were essentially one-person shows meaning that the promoters or the CEOs often had a larger-than-life presence. Indeed, people such as Mallya, Naresh Goyal of Jet Airways, the promoters of Spice jet, and others straddled the scene. However, many Industry experts have pointed out that the Indian Aviation sector can be more professionally managed as far as both airport and airline management is concerned. Already, a start has been made here with the construction of the modern airports in Bangalore, Mumbai, Delhi, and Hyderabad by a consortium of Indian and Foreign players. In addition, airlines such as Indigo are professionally managed without personality cults or run by the whims and fancies of a single individual. Moreover, with the re-entry of the venerable TATA group through tie-ups and partnerships, the Indian Aviation sector looks to be on its way to First World status. 82 CU IDOL SELF LEARNING MATERIAL (SLM)
Cautious Optimism Instead of Hyped Hope As the title of this case study indicates, what the future holds for the Indian Aviation Sector can be characterized as cautious optimism instead of unrealized hopes. For instance, the growth in the passenger traffic has been dizzying over the last few years. Further, the increase in the number of airlines and the concomitant capacity addition in terms of infrastructure and airports built has also been high. Thus, there is scope for ambition, though it has to be tempered with realism. This is mainly because of the various problems besetting the Indian Aviation Sector such as overcrowding in terms of both handling arrivals and departures in the airports as well as the very real problem of flights having to wait inordinately for landings and take-offs. Indeed, despite the capacity addition, except for New Delhi and Mumbai International Airports, no other airport in India has two runways. Even in these airports, sometimes the number of arrivals and departures are so high that despite the two runways, aircraft have to wait to take off and land. This compares poorly with the major airports in the world where it is routine for air traffic controllers or ATCs to handle hundreds of aircraft movements each hour. Indeed, if India aspires to join the ranks of developed countries, there can be no better way to do so than by displaying its Aviation Sector. From Ambani to Aam Admi: How the Indian Aviation Sector became Egalitarian Talking about the last point, the Indian Aviation Sector has long been a study in contrast where the predominantly poor India meets the glitzy and emerging as well as arriving in India. This has led to frequent criticism by those who point to the anomaly and contradiction of a poor country investing in its airports when the money can instead be used to better the lives of the poor. Indeed, this was the reason why the Indian Aviation Sector did not take-off during the 1970s and the 1980s when the dominant ideology was socialism. As with many things that happened after the liberalization of the Indian Economy in the 1990s, the Aviation Sector too took wings and began to soar high. However, even in the 1990s and the early 2000s, there were many rules and regulations that stymied the growth of the sector as well as stunted the development of the same. Indeed, it was not until a few years ago that the Indian Government permitted international tie-ups and it was only recently that the permission for domestic airlines to fly to international destinations was accorded. Thus, it can be said that it is only now that the Indian Aviation Sector can dream of soaring high. Turbulence Ahead 83 CU IDOL SELF LEARNING MATERIAL (SLM)
Having said that, it is also the case that safety standards seem to be lax these days as evidenced by the number of aircrafts reporting defects and botched take-offs and landings. While it is true that the Indian Aviation Sector does not have any major accidents as a blot on its operations, it is always better to be safe than sorry and hence, it is time for the regulators and other stakeholders to take passenger safety seriously. What is also worrying is the casual attitude towards passengers especially when they are boarding or deplaning. Indeed, while the Indian Media does tend to sensationalize the incidents, the repeated instances of airline crew and staff being rude to the passengers and worse, becoming violent with them does not any good to the Image of the Indian Aviation Sector. Moreover, the way in which the long queues at the booking counters and the security checkpoints tend to become irritating and indeed, painful for the passengers does not bode well for the future of the Indian Aviation Sector. It is for these reasons that we believe that there can be turbulence ahead for the sector. Premier to Poor: The Air India Saga No case study on the Indian Aviation Sector is complete without a discussion on the national carrier, Air India, the merged entity representing the erstwhile Air India and Indian Airlines, the domestic carrier. While it is now routine for commentators to lampoon Air India, it needs to be remembered that it was the premier Indian carrier in the post-Independence era until the liberalization of the Indian Economy. Having said that, the wheel has come full circle and hence, its present status as a loss-making entity that is depending on governmental bailouts to stay afloat means that perhaps it is time to privatize it. Indeed, its portfolio of landing rights and code share agreements as well as its fleet, though ageing, makes it attractive to foreign and domestic players alike who can convert these advantages into their own and at the same time, restructure it in such a manner that it becomes possible for it to become profitable again. Thus, it needs to be watched as to what decision the political masters take in this regard. It can be said that politics plays a major role in determining the fate of Air India since there is the aspect of emotional and sentimental reasons as well. Impact of Politics on the Indian Aviation Sector Talking about politics and the future of the Indian Aviation Sector, it needs to be mentioned that the sector has grown with and without political interference. In other words, while in some cases, the political decisions helped the sector, in other cases, it grew despite the politicians meddling with it. 84 CU IDOL SELF LEARNING MATERIAL (SLM)
Indeed, in all cases, the sector has grown to live with both the adverse and the beneficial political decisions. For instance, a long pending demand of the sector has been to lower the high prices for Aviation and Turbine fuel. In times when oil prices are at record lows, it makes sense for the government to cut the prices of ATF or Aviation Turbine Fuel. However, this has not happened and hence, airlines continue to grumble and at the same time, carry on with their operations. In addition, capacity addition and more landing rights are to be dealt with as well. On a more controversial note, the bilateral agreements between the Indian and the Foreign Governments about seat allocations or the number of passengers flying to and fro between Indian and Foreign Destinations seems to be taken with a view to favour some airlines over others. Conclusion It is understood that there are some measures that would minimize the path ahead for the sector. To start with, the present agreement on not having two airports within 150 Kilometres of each other can be reviewed especially where Bangalore and Hyderabad are concerned. In both these cities, the airports in operation earlier have been mothballed despite massive investments in them mainly because the new airports and their owners specified the agreement on distance. By reopening the old airports, significant capacity can be added thereby both lessening the load on the new airports as well as furthering the growth. To conclude, it can be said that it is a mixed bag as far as the Indian Aviation Sector is concerned wherein it is soaring high but also faces turbulence ahead. 6.4 E-BOOKING E-booking is an internet booking engine that allows travellers and travel agents to book tours and hotels. The main advantages of e-booking are ease of booking tours, the ability to access various options at one go, the ability to compare different rates and choose the one that suits you the most, etc. While all our travel plans might have been tossed around for this year, the quest for travel is never ending. Whether looking at offbeat destinations to explore next year or making bookings for the postponed travel plans, we have all been caught in act sometime. In addition,we are not the only ones saying this. According to a latest research by Technavio, the online travel-booking sector is expected to see a boom in the coming years. Technavio has been monitoring the online travel-booking platform and according to their research, the market will grow by $204.81 billion during the period of 2020-2024. This growth is progressing at a rate of almost 5% CAGR during the forecast period. The detailed report not only focuses on the growth rate but also other factors such as the current market scenario, latest trends and drivers along with the overall market environment. 85 CU IDOL SELF LEARNING MATERIAL (SLM)
Despite the ongoing pandemic, the report states that the travel-booking platform will have a low impact. However, the market growth rate is likely to decrease in 2020 as compared to the market growth in 2019. Technavio is a global technology research and advisory company that focuses on emerging market trends. The latest report also states that the market is fragmented, and the degree will only accelerate during the forecast period. It also points that players such as Airbnb, Expedia, MakeMyTrip and TripAdvisor will remain amongst some of the major players in the market. 6.5 CHANGES IN ONLINE CONSUMER BEHAVIOUR At the turn of this century, planning a holiday might have entailed a visit to the local travel agent. Alternatively, for the more adventurous traveller armed with a well-thumbed guidebook, relying on trusted word-of-mouth recommendations to set their travel agenda. Today, thanks to breakthroughs in technology and high-speed internet, travellers can book their own flight and hotels online, choose to stay in a stranger’s house, and rather than entering that unfamiliar restaurant with trepidation, search online reviews on their mobile while connected to the hotel Wi-Fi.“Digitalisation has given us choice in a big way,” says Tamara Lohan, co-founder and chief technology officer at boutique hotels website Mr&Mrs Smith. “More people are travelling than ever before, and companies like Airbnb encourage younger people to explore sooner, and in a more cost-effective way. Technology has also given us more information on the place we are going than ever before. Want to know if there is an artisan chocolatier close to your hotel in Amsterdam? Well, now you can – in seconds.” In the digital age, we have become a generation of DIY travellers who plan, manage, and book travel online. So, what has this meant for businesses in the travel industry? For travel agents, the rise of digital has severely disrupted the industry. “Traditional travel distribution in which high street travel agencies played a dominant role was revolutionised with online travel agencies and direct distribution through airlines and hotels’ websites acquiring a key role,” explains Angelo Rossini, contributing analyst at Euro monitorInternational. “Low-cost carriers and online travel agencies were the clear winner of the online travel revolution over the past 15 years, changing the way today consumers plan and book their trips. Tour operators suffered the rise of independent travel and are today embracing the online and mobile channels in order to stay competitive,” says Rossini. While the internet killed off many high street travel agents, others have been forced to adapt to a very changing marketplace, with many embracing the internet by introducing online bookings. “As part of our Omni-channel strategy, Thomas Cook has seen the need to make sure our customers can be served in a seamless way through whatever channel they wish – online through mobile, tablet, desktop or offline in a store or over the phone,” says its group head of digital operations, Graham Cook. The company has stepped up its digital innovation of late, 86 CU IDOL SELF LEARNING MATERIAL (SLM)
even introducing virtual reality experiences across select stores. One of the biggest disruptors to the travel industry has of course been Airbnb, which spurred the launch of other similar online-only companies such as One Fine Stay. Thanks to the rise of such sharing-economy companies,we are more likely to book a room in a stranger’s house, with 9% of UK and US travellers having rented space in a private home or apartment. “The digital revolution has impacted almost everything in the world as we know it,” says James McClure, country manager for UK and Ireland at Airbnb. “In Airbnb’s case, technology has also brought tradition into the mainstream. The concept of staying in people’s homes when travelling is not a new one and dates back many centuries, but what technology has been able do is accelerates this to a fast-moving and easily-accessible global phenomenon.” Technology has also presented new opportunities for small businesses in the travel sector, allowing consumers worldwide to stumble across say a B&B in Brighton or luxury safari park in Kenya through online review sites, social media, and the businesses’ own websites. “We pivoted from a hotel guidebook to become an online travel agent just as the internet started to become a place people could finally trust with their credit cards,” says Mr&Mrs Smith’s Lohan. “In the whole of that first month online we did 10 bookings – now we do 300 a day.” While she says the business changed its model due to internet and allows online bookings, it still runs 24/7 customer service support via phones “for people who want that human element.” For travel brands,it has meant they have had to get smarter and adapt as consumers expectations rise. Take airlines, some of which now allow passengers to check-in online, access their boarding pass on mobile, and operate Wi-Fi on flights. “Digital technology has changed the way we connect with guests, creating a 24/7 relationship in and out of stay,” says Stephan Croix, vice-president of marketing at Starwood Hotels and Resorts, owner of hotel chains W Hotels and aloft. “It is also transforming every phase of hospitality – from finding a hotel, to checking in, to unlocking your door and personalising your stay. As travel is inherently mobile, travellers expect to use their mobile devices to enrich their travel experiences,” Croix says. As a result, Starwood has adapted and invested in mobile, leading to overall mobile gross bookings rising more than 50% in 2015 compared with the year before. Like others in the sector, the company is continually embracing technology to woo its digitally perceptive customers. It recently launched “Let’s chat,” enabling guests to communicate with its front desk associates via WhatsApp, Blackberry messenger or iPhone before or during their stay. Due to the presence of E-booking, the consumer is not dependent on just one company and has accessibility to many other companies. They have the option to choose the best deal that matches their requirements. Consumers look for different deals and expect 100 percent clarity 87 CU IDOL SELF LEARNING MATERIAL (SLM)
from the companies. E-booking has made the tourism industry reach new heights with many people getting on board for the digital experience. Case Study Changes in Consumption Patterns and Tourist Promotion after the COVID-19 Pandemic The COVID-19 pandemic has entailed an unprecedented health crisis with significant economic impacts in many sectors worldwide. The tourism sector has been one of the most affected, with significant impacts on the number of cancelled reservations, a decrease in international travel and changes in consumption behaviour. This study aims to analyse the main changes in promotion and marketing in the tourism sector in Spain after the pandemic. To this end, a qualitative analysis was carried out via questionnaire-based interviews with 65 experts in the areas of marketing, consumer behaviour, and tourism. The main findings show that online information sources gained weight over consulting friends and relatives, and a great advance in digitization is expected, where physical travel agencies will be displaced by online platforms, except for specialized and advisory services.Additionally, technologies such as virtual reality or artificial intelligence may play an increasingly important role in the medium term. In May and June 2020, countries with major tourism industries ceased marketingactivities in response to travel restrictions and focused on planning and financialsupport for tourism enterprises. Unprecedented global travel restrictions and stay-at homeorders are causing the most severe disruption of the global economy since WorldWar II. Before assessing those aspects of tourism marketing and promotion that wereaffected—and are expected to change because of COVID-19—it should be noted that theimpact came from both the demand and supply sides. On the demand side, the crisis will bring a reduction in disposable income with theconsequent reduction in tourists’ willingness to pay. Calveras points out that themagnitude of the reduction in tourists’ willingness to pay will differ depending on theirprofile and the product in question, for example, an older tourist is likely to experiencea greater reduction in his or her appreciation of the product than a younger consumer is. The intensity of the willingness to pay will also be conditioned by the characteristicsof the destination, for example, in areas of greater tourist congestion the reduction inthe willingness to pay may be limited by a foreseeable lower tourist overcrowding inthose destinations. The uncertainty caused by the pandemic led tourists to delay their purchasedecision until the last moment. Travel contracts made months in advance, which havebeen common until now, have plummeted due to the high risk of cancellation. A studyby Destinia shows that 89% of bookings by Spanish tourists in the first week of August2020 were for immediate travel. Certainly, this move towards last minute purchasingis motivated by the uncertainty of the situation. A macro study conducted by TravelConsul in twenty countries shows that in the 88 CU IDOL SELF LEARNING MATERIAL (SLM)
last two weeks of September, clientsare either waiting to decide when to travel or are booking an international trip less than a month in advance. Last minute bookings are becoming more prominent.For European travellers. In contrast, 31% of North American clients are booking aholiday seven months to one year before departure. It is noted that changes are takingplace in the consumption patterns of tourists and users in general. Specifically, thereis an increased use of the Internet throughout the purchase process, from the search forinformation and online shopping to post-purchase and the exchange of informationand recommendations among users via electronic word of mouth. The tourism sector has been one of the most affected by the current pandemic. Restrictionson mobility and closures of companies in the sector, either totally or partially duringcertain periods, have had a notable influence on this sector. There have been changes intourists’ consumption patterns and, consequently, in the offer business strategy. A largevolume of the studies that are addressing the issue focus on descriptive research on theimmediate and short- term effects of the pandemic. This research often simply confirmsthat the pandemic is ruining the tourism industry worldwide. The aim of this work isto find out what the main changes have been. Based on this information, the companies inthe sector can orientate their offer towards the new consumption patterns and adapt to thenew situation. Two hypotheses are proposed: Hypothesis 1: COVID-19 has influenced the marketing strategy of the tourism sector. Hypothesis 2: COVID-19 has reoriented the promotional strategy of the tourism sector. In addition to verifying whether both hypotheses are fulfilled, the aim is to findout what changes have occurred. Based on the strategies adopted by the most resilientcompanies, the rest of the sector can adapt by taking these actions as benchmarks. At thistime of uncertainty, there is a lot of information generated about the pandemic, but thereare no benchmark actions from which companies can benefit in a practical way. In order to answer both hypotheses and obtain in-depth quality information, a qualitativemethodology has been chosen as the most appropriate for this study. Throughquestionnaire-based interviews, 65 experts in Spain in areas such as marketing, consumerbehaviour, and tourism were asked about the expected evolution and trends in the use ofe-commerce, the sources of information used and the role of new technologies. Prior toconducting the interviews, a theoretical review on the marketing and promotion of tourismduring COVID-19 was carried out by consulting the very recent publications. Finally, thediscussion on the work and the main conclusions are presented. Consumer Behaviour and Tourism Marketing during COVID-19 Consumer demands and purchasing behaviour have radically changed, and asa result, companies have had to innovate their marketing strategies in order to survive.The COVID-19 pandemic has significantly influenced our daily and social lives, as wellas our consumption patterns. The pandemic gave rise to a new and fundamentaldimension in the tourism product: 89 CU IDOL SELF LEARNING MATERIAL (SLM)
health security. In other words, exposure toCOVID-19 and the risk of contagion must be minimal in the consumption and productionof tourist activity. In their study, Campbell et al.Warn of different threats derivedfrom COVID-19, from health threats to economic, social, informational, and environmentalthreats, and Galoni et al.Assert that the presence of disease can systematically alterconsumer behaviour in a real way that is relevant to marketers. Therefore, in the face ofsuch a global pandemic situation, changes in consumption are to be expected. There are tourist behaviour phenomena that help us to understand the psyche ofconsumers and their perception of risk. For example, the preference for group travel, taking out travel insurance, and loyalty to the destination provides tourists with a senseof security that reduces the perception of risk. Understanding these phenomena, andhow they relate to each other, contributes to a deeper understanding of the relationshipbetween the pandemic and the psyche of tourists. In addition, the COVID-19 pandemicrepresents a substantial challenge to global human welfare. Like other challenges, the impact of the COVID-19 pandemic depends on the actions of individual citizens and,therefore, on the quality of information to which people are exposed. Still, prior research shows that marketing innovations could help firms surviverisks. In this process of redesigning the tourism product, companies must combinetwo factors:offer a safe product in terms of public health, with minimum risk ofcontagion, and (2) offer a profitable product, with a sufficient relationship between thecustomer’s willingness to pay and the average costs of offering the service. The two main measures implemented by the travel operators during the third quarterof 2020 were “adjusting the business model” and “design of new products.” Thestrategy of “improving the current products” is the third most chosen. The strategyof “focusing on training programmes” decreased by 11% with respect to the secondquarter. The tourist voucher is used by some destinations as a new product to stimulate localcustomer consumption. Tourist vouchers are based on the discount voucher model forpurchases in hotels and other tourist accommodation, restaurants and the tourism industryin general, with the aim of revitalising one of the sectors most affected by the crisis. For example, at the end of November 2020, the Basque Country issued nearly onemillion vouchers in tourism, hotel, and commercial services in the Autonomous Community,with different discounts for citizens for a total value of 9 million Euros and is expectedto produce an economic impact of 26 million Euros. The Basque Government provided5.7 million and the rest was contributed by other collaborating institutions. These vouchers can bepurchased by residents in the Basque Country or by visitors from other places and will bevalid until May 2021. For most travel operators, social media is the main marketing activity for recovery inthe coming months. Seven out of ten respondents in the Travel Consul study statedthat social media marketing was their primary focus. Digital marketing and direct salescame in second 90 CU IDOL SELF LEARNING MATERIAL (SLM)
and third place, respectively. Citizens have had to isolate themselvesin their homes and avoid physical contact to prevent contagion, so companies have had topay more attention to developing and strengthening online business by adapting rapidmarketing innovations. In service-oriented industry, and particularly in the time of anepidemic such as COVID 19, the service failure has increased, and business turned online tokeep the connection and good relationship with customers. Online customer retention hasbecome important for business more than any time, especially when it comes to servicessuch as airline industry and hospitality and retailers. Digital marketing is a broad umbrella that includes the following activitiesand instruments: Presentation and interaction: website, apps, blogs, podcasts. Communication: social networks, web series, online platforms. For sale: e-commerce, social networks, marketplaces, block chains. Strategic: SEO,SEM,content marketing, attraction marketing. Analysis and measurement: data generation, big data, metrics, key performance indicators, analytics, data services. Monitoring of the actions carried out and adoption of new KPIs. Using big data techniques and the use of chat bots, customers ‘needs and decisions are analysed, and future lines of action are redefined. During the pandemic period, companies face a new situation, with the challenge ofretaining customers and increasing their re-purchase intention. Online customer retention is based on the customer’s online experience and relates to the following factors: The online service quality, such as the time of delivery. 1. Attitude toward the use of online buying. 2. Satisfaction with the online services. 3. Ease of using the online platform. Changes Detected in the Promotion of the Tourist Destination during COVID-19whereas tourism marketing in destinations is a well-known activity, the essenceof these responsibilities changes when having to face a disaster and deal with its consequences. Tourism management organizations, hotel establishments and othertourism and destination businesses should coordinate their promotion and marketinginitiatives. Prior to COVID-19, online sales promotion has been widely used by online retailersto increase product sales and boost brands. During the pandemic period, its usehas increased, becoming a key marketing tool. The use of social networking and onlineconnection technologies were already popular this year, they have grown even more.One of the trends detected by the increase in Internet use is a change in onlineimpulsive buying behaviour. In a study on the influence of website quality on OIBB,Akram et al. state three main points: the website quality positively affects the OIBB;the sales promotion significantly influences 91 CU IDOL SELF LEARNING MATERIAL (SLM)
OIBB and acts as a strong moderator on the relationship between website quality and online impulse buying; and the online impulse purchases are positively influenced by use of credit cards, and the use of credit cards enhances the relationship between website quality and online impulse buying. During the 2003 crisis in Southeast Asia caused by the SARS-CoV virus, McKercherand Chon warned how the lack of coordination and the wrong decisions of those responsible for tourism had a major impact on tourism flows. The health crisis soon attracted media attention. This crisis mainly affected countries in Asia, such as China,Hong Kong, Singapore, and Vietnam. The number of passengers on internationalflights fell in Hong Kong by over 80% in the year-on-year rate of change and the hoteloccupancy rate fell from 90% to 10% in some cases. As a measure to rebuild the region’s battered image and attract tourists and businesses,the Hong Kong government approved an HKD 1 billion aid package thatincluded the launch of an HKD 400 million tourism campaign over ninemonths. The most used strategies by lodging businesses and airlines to attract customers were discounting and cancellation without charge of the booked places to strengthendemandconfidence. The current situation in many Western countries seems to replicate that crisis, that is, the existence of an initial underreaction,counterbalanced by a late over-reaction by governments. All of this is motivatedby the lack of experience in managing this type of health crisis. One lesson learnedfrom experience is the need for strong collaboration and coordination at national andinternational level among the various departments in the tourism area to develop effectiveresponses to the crisis. Forman international perspectives, movements that promote alack of understanding, or encapsulation, go in the opposite direction of what a resilientdestination strategy advises. From an international perspective, movements thatpromote a lack of border understanding, or encapsulation, go in the opposite direction of aresalient destination strategy. In the midst of the world tourism crisis, on 28 May 2020, the UNWTO published the document “Global guidelines to restart Tourism.” In the areaof destination planning and management, the recommendations were as follows: Introduce and adapt actionable and harmonized processes and procedures in line with public health evidence-based risk assessment and full coordination with relevantpublic and private sector partners. Support companies in the implementation and training of their staff on the newprotocols. Enhance the use of technology for safe, seamless and touch less travel in your destination. A critical element in the re-organization of the industry will involve the increasedincorporation of automation technologies. 92 CU IDOL SELF LEARNING MATERIAL (SLM)
Provide reliable, consistent, and easy to access information on protocols to the privatesector and to travellers. Create programs and campaigns to incentivise the domestic market in cooperationwith the private sector and integrate destinations. Promote new products and experiences targeted at individual and small groups oftravellers, such as special interest, nature, rural tourism, gastronomy and wine,sports, etc. Consider the data privacy policies when there is a proposal of developing tracingapps. The WHO will develop guidance on the use ofdigital technologies for contact tracing.Enhance and communicate medical capacity and protocols at the destination. Ensure coordination among tourism, health, and transport policies. Define roles and responsibilities for governments, private sector, and travellers. Destination managers are responsible for activating the promotion of destinations, for example, by using travel vouchers and incentives and developing strategies for reopening. Health and safety protocols in tourism should be established, for example, by creating travel bubbles or tourist corridors, and by relaxing restrictions and reopening tourism businesses. Given the uncertainty caused by the COVID-19 outbreak, it is particularly important to adopt strategies to improve tourist safety in the post-pandemic context and strengthen public confidence. A recent international study by Zheng, Luo, and Ritchie suggests using measures to maintain social distancing, making accurate communication interventions, and providing information on prevention measures. Longer-term transformation scenarios are drawn up that also have to do with the need to move towards new models of society in which consumption has to be reoriented to avoid the threats affecting society and the environment. Santos announces the arrival of a time in which the 4 Ss will be enhanced compared to the 4 Cs and 4 Ps. Vargas points out that although promotion will be necessary—for tourism markets to awaken from the lethargy after the initial impact—promotion should not be the same as before. The strategies of tourist destination managers will not only be based on promotion, but also on reconfiguring the offer in the light of the new social reality resulting from the COVID-19 disaster. Henderson’s study on the role-played by national tourism organizations in the crisis in Southeast Asia in the late 1990s shows that promotional efforts have limited influence. NTOs do not usually operate with products and direct marketing methods, but in recent years, sales promotion has undergone a change with the incorporation of online channels. Dore and Crouch examined these aspectsin an exploratory study on the evaluation of the promotional activities of Destination Management Organizations and especially the effectiveness of the use of advertising and public relations. 93 CU IDOL SELF LEARNING MATERIAL (SLM)
According to Dore and Crouch, advertisements are the most widely used promotional tool by DMOs, mainly for consumers, whereas personal sales are mainly used in the tourism industry. Some authors defend the use of new technologies as advertising to relaunch the sector, for example, using augmented reality in the tourism sector in accordance with the WHO and UNWTO guidelines. 6.6 NEW DIRECTION OF INDIAN CIVIL AVIATION The Indian aviation industry has grown by over 20% annually in the past two years. It is likely to grow at a double-digit growth rate in the coming decade. The stupendous rise in its economic activity has racked up concerns about its environmental impact. India has signed up for Carbon Offset and Reduction Scheme for International Aviation in 2016, which is to be mandated from 2026. This article discerns the possible implications that such an environmental policy can have on the Indian aviation sector by modelling the impact of a prospective carbon tax on the domestic aviation sector. The Indian aviation industry is expected to grow at a compounded annual growth rate of approximately 10% in the coming decade. From January to December 2015, it grew by 20.3%, the highest aviation industry growth rate ever recorded in the world. The highest ever growth rate in 2015 was soon surpassed by a 25.13% growth rate in January–December 2016. The Directorate General of Civil Aviation, the prime regulatory body for the Indian aviation industry, expects the growth rate to double every five years for the next 15 years. KPMG expects India to become the third-largest aviation market by 2020. With the growth of the aviation sector and its increasing contribution to the nation's economy, which stands at approximately 1.5% of the country's GDP, concerns about its share in carbon emissions have also come to the fore. These concerns are warranted, considering the increased environmental awareness in the aviation industry globally. Chèze, Chevallier, and Gastineau predict a spurt of about 40% in the global aviation emission levels from 2008 to 2025. The European Union- Emission Trading Scheme is a much talked about policy in this respect because it attempts to curb carbon emissions by creating various mechanisms of control and trade in various industries. It is opposed by developing economies such as India, China, South Africa, and Brazil because of apprehensions that such policies would adversely affect their aviation markets. India and other developing nations have lobbied for a multilateral agreement anchored by the International Civil Aviation Organisation to promote measures that are in congruence with the spirit of the Paris agreement. Moreover, perhaps with the launch of schemes such as CORSIA, their efforts have borne fruit. CORSIA is set to commence in 2021 on a voluntary basis and, post 2026; it will become mandatory for ICAO's 191 member states, including India. Thus, in the context of such an environmentally charged regulatory environment, the time is apt to study the implications of such a scenario for the Indian aviation industry. 94 CU IDOL SELF LEARNING MATERIAL (SLM)
There are primarily two types of network strategies in aviation markets: the hubbed and the point-to-point networkstrategies. Full-serviceairlines follow the hubbed strategy, and low- cost carriers, also known as LCCs, follow the P2P network strategy. The Indian Civil Aviation Committee has also created E-GCA to allow digital access to the Indian tourism data. People can easily access the government tour offers and hotel availability using the online medium. It will also improve the communication policy of company. 6.7 FACTOR RESPONSIBLE FOR GROWTH OF ROAD TRANSPORT Transportation systems develop to interact at different scales and through the influence of a variety of factors: Environmental: At the local scale, existing hydrographical and geo-morphological characteristics are strong factors in transport development, particularly in terms of the technical challenges, they present to construct and maintain infrastructure. Climate, which is more a regional attribute, also conditions transportation construction and operations. At the national level, distance underlines the geographical scale to be serviced; influencing transport infrastructure development since servicing the nation becomes imperative. At the global level, the contour of oceanic masses such as choke points becomes the defining factor shaping the structure and development orientation of transport systems. Historical: Settlement patterns, which are influenced by cultural attributes, strongly influence local transport development, such as street grids. At the regional level, the structure of an urban system, the result of historical processes of accumulation, coordinates the development of transport systems by connecting them. It is also a historical process such as colonialism and forms of imperialism that have shaped aspects of national transport developments, particularly in areas of the world that were colonized. However, it is the process of globalization that had one of the most enduring influences in recent decades in shaping global transport systems. Technological: Each transportation technology has a matching scale of development. Roads, despite their ubiquity, are strongly associated with local mobility. At the regional level, this mobility becomes more the realm of railways, although air transportation also has a strong regional component. Corridors, which are mainly long-distance rail and highway networks, are transport constructs built to connect at the national or continental level. The technologies that have supported the most transport development at the global level are mainly air transportation and telecommunications. Paradoxically, these technologies are mostly used at the regional andlocal levels. Political: Transportation development is a process that is managed and regulated. At the local level, zoning is the regulatory framework that influences the most transport development since it dictates what is allowed to be built, including the function of what is being built. Forms of taxation and regulations such as safety and operating conditions are political aspects 95 CU IDOL SELF LEARNING MATERIAL (SLM)
that play at the regional and the national levels. Trade agreements have an important transnational implication, linking neighbouring economic entities, which has influenced transportation development with an attempt to coordinate physical and trade networks. Multilateral agreements, particularly over trade have shaped the development of transportation systems by favouring specific transnational connectivity. Economic: Economic processes shape transportation development since its core purpose is to support economic activities and their interactions. The more advanced an economy is, the more intensive and efficient transportation systems are. At the local level, employment and distribution are key drivers focusing on transit systems as well as the freight distribution of final goods. Transportation modes compete to service markets, a process that mainly takes place at the regional level. The outcome of this competition is a distribution of modal preferences and usage levels of specific transport systems. Markets are increasingly perceived as transnational, requiring coordinated supply strategies. The competition of major economic actors at the global level, often the outcome of comparative advantages, influence major freight flows and the transport systems supporting them. 6.8 FACTOR RESPONSIBLE FOR GROWTH OF WATER TRANSPORTATION The water transport market consists of sales of water transportation services and related goods by entities that provide water transportation of passengers and cargo using watercraft, such as ships, barges, and boats. The water transport market is segmented into deep sea, coastal, and great lakes and inland water transport. The global water transport market is expected to grow from $486.7 billion in 2020 to $507.4 billion in 2021 at a compound annual growth rateof 4.%.The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $611.2 billion in 2025 at a CAGR of 5%. Asia Pacific was the largest region in the global water transport market, accounting for 45% of the market in 2020.Western Europe was the second largest region, accounting for 32% of the global market. Africa was the smallest region in the global water transport market. Water transportation service companies are increasingly using sensor technologies to enable monitoring of remote locations of ships. A sensor is a device that detects and responds to some type of input from the physical environment. The specific input could be light, heat, motion, moisture, pressure, or any one of a number of other environmental phenomena present in the ship. Sensors in remote locations of ships collect data autonomously and relay the data to the control room in real-time. The data captured by the sensor allows ship-owners to improve overall maintenance cycle of visits, including condition monitoring and condition- 96 CU IDOL SELF LEARNING MATERIAL (SLM)
based monitoring. For instance, NoraSens and Silicon Radar are some of the company is manufacturing sensors for ships. Major companies in the market include a...Møller-Maersk; Mediterranean Shipping Company; CMA-CGM; Evergreen Marine Corporation; Nippon Yusen Kabushiki Kaisha. The countries covered in the global water transport market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA. The regions covered in the global water transport market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa. The global water transport market is segmented - 1) By Type: Deep Sea, Coastal, And Great Lakes, Inland Water Transport Sub segments Covered: Deep Sea Transport, Coastal and Great Lakes Transport, Inland Water Freight Transport, Inland Water Passenger Transport. Water transport is less costly as compare to other means. Water transport is good for relaxation and calming the mind. The experience of travelling across water is indescribable and beautiful. 6.9 FACTOR RESPONSIBLE FOR GROWTH OF INDIAN RAILWAYS The recent Union budget of India this year placed a huge focus on investment in infrastructure to improve the economy. The sector is highly responsible for propelling India’s overall development and enjoys intense focus from the Government for initiating policies that would ensure the time-bound creation of an excellent infrastructure in the country. Mangal Dev, Director Hitachi India Pvt Ltd. & Head, Hitachi Rail India South Asia talks to Financial Express Online about how India can be a leader in the infrastructure sector and Hitachi’s role in India’s urban mobility and Indian Railways transformation. Excerpt: Hitachi’s partnership with Indian Railways is eight decades old starting from 1953 when the first steam locomotive was supplied to Indian Railways. This laid the foundations of Hitachi and over this period led to transforming mobility in India. As a business, we are investing in innovation so that we can provide solutions for the megatrends affecting the mobility sector, including sustainability, autonomous vehicles, and digitalisation, urbanization, and customer experience – all with a focus to enhance customer satisfaction and increase passenger experience. In response to the megatrends of the transportation sector, the Ministry of Railway through National Rail Plan, aims at providing a long-term perspective planning for augmenting the national Railway Network. As part of the National Rail Plan, Vision 2024 has been launched for accelerated implementation of certain critical projects by 2024 to develop capacity, infrastructure and enhance rail freight share ahead of the demand and to develop capacity by 2030 that will cater to growing demand up to 2050. This entails 100% electrification, 97 CU IDOL SELF LEARNING MATERIAL (SLM)
additional lines along the high-density networks, up gradation of speed to 160 kmph on Delhi-Howrah and Delhi-Mumbai routes, up gradation of speed to 130kmph on all other Golden Quadrilateral-Golden Diagonal routes, elimination of all level crossings on all GQ/GD routes. This National Rail Plan thus when fully implemented will drive a gradual shift in the freight model share from the current 27% to 45% for Indian Railway. The factors responsible for growth of Indian railways are Geographical, Economic and Political. Geographically, the northern plain of India is good for development of railways because of the land structure. Similarly, in economically advance areas, the need for railways is more and it has been developed there. The government policies for the development and modernisation of railways also play a vital role. 6.10 SOCIO ECONOMIC FACTORS At present, there is a need for social and economic studies that evaluate the impacts of transportation projects. For example, what are the impacts of highway construction and improvement projects as we begin a new century? Palmer, colleagues,and Harvey recently examined the impacts of highway improvement projects on economic activities located along a right-of-way to be improved; they attempted to generalize their findings for applicability to different localities and regions. This is the type of study that is necessary—one that attempts to generalize the impacts of the problem examined, so that other localities can apply the results. In the same vein, what are the social and economic impacts of relocations caused by highway projects? Are the federal programs in this area working as envisioned? We have seen few evaluations of the impacts of transportation projects. Some notable exceptions are summarized in a recent volume published by the Federal Highway. Administration on mitigating community impact Aside from analysing projects, there is a need for research that evaluates transportation policies and trends in terms of their human impacts. Far too little attention is given to these areas. Included would be a more thorough understanding of deregulation impacts and privatization. The entire process of globalization is creating a demand for more transportation at a time when some are calling for decreases in the generation of traffic. There seems to be little understanding that NAFTA or a unified Europe will stimulate significantly more freight transportation. Other trends occurring at the present time that significantly impact urban travel are the increasing number of women joining the labour force, the increasing number of single-parent households, increasing numbers of elderly drivers, the entire area of “welfare to work” , and the increasing number of motor vehicle accidents globally. All of these trends have social and economic dimensions worthy of research and analysis. In addition to policy changes and trends, environmental trends are worthy of study. For example, what are the social and economic impacts of transportation changes brought about by global warming? If policy makers decide to limit emissions of carbon dioxide, motor 98 CU IDOL SELF LEARNING MATERIAL (SLM)
vehicle fuel use might be reduced through rationing or taxation. What would be the human impact of such actions? What are the economic impacts of a switch to sustainable transportation? Will it be possible for lower-income families to acquire sustainable transportation technology? How can this technology be distributed in an equitable manner? These are just a few of the issues that deserve attention because they involve significant social and economic impacts.In addition to policy changes and trends, environmental trends are worthy of study. Forexample, what are the social and economic impacts of transportation changes brought aboutby global warming? If policy makers decide to limit emissions of carbon dioxide, motorvehicle fuel use might be reduced through rationing or taxation. What would be the humanimpact of such actions? What are the economic impacts of a switch to sustainabletransportation? Will it be possible for lower-income families to acquire sustainabletransportation technology? How can this technology be distributed in an equitable manner?These are just a few of the issues that deserve attention because they involve significantsocial and economic impacts. The socio-economic factor responsible for growth of transport includes Environmental conditions, Historical influences, technological advancement, political policies, and economical solutions. Case Study Online Reservation ForStayxs The Introduction Stayxs is an India and USA based online hotel marketing and Representation Company that distributes worldwide hotel information to various GDS andADS partners. Using the power of the GDS and the Internet, Stayxs provides reservation services for more than 12000 member hotels in 55 countries to travel agents and consumers worldwide. Stayxs enables any hotel to receive online reservations across the world. With Internet access, hotels can easily and instantly update information about room rates and availability across the entire Stayxs network. It also provides worldwide hotel content to its web-based distribution partners. Stayxs Hotel Booking engine powers more than 1100 travel web sites and destination portals. The Challenges The challenge was to set up a strong customer and back-office support to handle the large number of Stayxs online hotel reservations requests coming in every day. There was a need to create a strong backup for the smooth functioning of the process of getting a reservation request, forwarding it to the hotel, providing more options to clients and handling the payment in the end. The Solution 99 CU IDOL SELF LEARNING MATERIAL (SLM)
We proposed an effective back office and support system for handling reservations. We provided Destination Executives/Managers who received the online reservations. They forwarded it to the concerned Hotel Network Administrator for tentative reservation of the rooms. The destination executives/managers also suggested two other hotels in the same area with similar price range to the customer thus providing him with options to choose from in case of any waitlists for the requested hotel. The project was divided into four main measurable phases: Knowledge transfer phase: The objective of this phase was to understand the complete structure of the reservation system, identify the areas that need support and collect relevant data. This was the most important phase as it laid the base of the complete project. In this phase, we visited the client facilities to collect first-hand details and discuss the finer details of the project. For this purpose, Binary's project manager the Team Leader visited the StayXS office, and this phase was complete smoothly. Execution plan phase: Based on the collected information an execution plan and methodology was devised. Destination Managers were provided to do the necessary validations. Executives and managers were also provided with the necessary software to support the daily reservations. A Content management team to ensure that the hotel data is updated backed all these. ODC establishment phase: Binary set up the complete infrastructure including allocation of office space, human and network resource in Gurgaon, India. During this phase, a monitoring project was also executed to ensure the smooth functioning of the complete process. Sustenance phase: The team in full operational mode is providing customer and back- office support services. Apart from meeting these guidelines Binary’s team continuously works on process improvement. Their Benefits Our services helped Stay-XS streamline their reservation process. Some of the key outlined benefits of the services are as follows: Dedicated customer support team Smooth reservation process Bespoke enhancements and developments Seamless communication and data link 6.11 SUMMARY 100 CU IDOL SELF LEARNING MATERIAL (SLM)
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