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TABLE OF CONTENTS Page FORWARD ACKNOWLEDGEMENTS DEDICATION PREFACE PART ONE THE INTRODUCTORY COURSE SECTION ONE GETTING ACQUAINTED WITH TRAVEL & TOURISM CHAPTER ONE DIMENSIONS OF TRAVEL AND TOURISM Introduction 1 Learning Objectives 1 The First Tourist 2 Background 3 History 5 Tourism Milestones 10 Focus on Technology 15 Industry Scope 17 Country Rankings 28 The Biggest Spenders 37 SUMMARY 43 Discussion Questions 45 Websites 46 CHAPTER TWO AN ECONOMIC OVERVIEW OF TRAVEL & TOURISM Introduction 1 Learning Objectives 1 Trading Stamps to Travel & Tourism Empire 1 Background 2 A Disappearing Product 4 Maximizing Revenue 6 Boom & Bust 7 Elasticity 10 The Seasonal Issue 13 The Competitive Environment 15 Currency Exchange Rate Impact 22 Terrorism 23 The Lure of America 24 Strengths and Vulnerabilities 27 Life Cycles 29 Labor Union Impact 33 Taxation 35 Full Speed Ahead? 37 Focus on Technology 38 SUMMARY 40 Discussion Questions 42 Websites 44 CHAPTER THREE THE PSYCHOLOGY OF TRAVEL Introduction 1 Learning Objective 1 Know Thy Customer 3 Background 4 Demographics 5 Lifestyle Dimensions 15 Psychographics 20 Venturesomeness 21 Demographics & Psychographics in the Marketplace 28 Other Approaches to Motivational & Personality Dimensions 32 SUMMARY 33 APPENDIX 37 Easy Guidelines for Analyzing Research Data Like an Expert 37 Pan Am: A Case Study in How to Lose Customers and an Airline 46 The Importance of Unsung Heros 47 Websites 50 Discussion Questions 53 CHAPTER FOUR SUSTAINABLE TOURISM DEVELOPMENT: TOMORROW'S CHALLENGE TODAY Introduction 1 Learning Objectives 1 Mini-Case: Namibia's Community-Based Tourism Success Story 2 SUSTAINABLE TOURISM 4 Background 4 Key Concepts of Sustainable Development 5 Venice, Italy and Komodo, Indonisia: Similar or Different? 8 TOURISM AREA LIFE CYCLES 9 Tourism Area Life Cycle (Butler Model) 10 Challenges in Defining Tourism Impacts Over Time 13 Limits of Acceptable Change 15 SUSTAINABLE DEVELOPMENT AND ITS GLOBAL REACH 16 Key Dates in the Emergence of Sustainable Development as a Global Initiative 16 Global Guidelines for Sustainable Tourism 17 Steps in the Local Agenda 21 Approach to Sustainable Development 20 Selected Tourism Sustainability Issues and Indicators 23 STRATEGIES FOR ACHIEVING SUSTAINABLE TOURISM 24 Community-based Tourism 24 Steps in Community-Based Tourism Development 27 Conservation and Tourism: An Uneasy Marriage 29 Protected Area Classifications 30 Mini-Case: The Evolving Challenge of Sustainable Tourism in the Arctic Through Smart and Arctic Tourism Principles 32 Regional Tourism Development and Sustainability 35 SUSTAINABLE TOURISM: TOMORROW'S CHALLENGE TODAY 36 Interview 36 SUMMARY 39 Discussion Questions 40 Websites 41 SECTION TWO THE SECTORS CHAPTER FIVE THE AIRLINE INDUSTRY Introduction 1 Learning Objectives 1 Alfred Kahn's Great Adventure 1 Background 3 Industry Scope 7 The American Carriers 10 Top Markets and Airports 13 Terminology 13 Regulation 1938-1978 14 Deregulation 17 Building Hub Fortresses 21 Building Loyalty 23 Focus on Technology 24 Industry Consolidation 26 Interview: David Neeleman, Jet Blue Airways 29 The (Lack of) Profit 33 A LUV Story 39 SUMMARY 45 Discussion Questions 47 Websites 49 CHAPTER SIX THE RAIL, MOTORCOACH AND RENTAL CAR INDUSTRIES Introduction 1 Learning Objectives 1 Railway Nostalgia 1 Passenger Railroads 3 Background 3 Amtrak 5 Railroads in Other Countries 11 Railroad Tourism 13 The Motorcoach Industry 16 Background 16 Industry Characteristics 18 The Arthur Tauck Story 19 Interview: Jack Haugsland, Greyhound 22 The Rental Car Industry 25 Size and Structure 28 Terminology 32 Interview: Rob Hibbard, Enterprise 33 Rental Car Economics 36 Seasonality 36 Business Cycle Sensitivity 37 Airline Demand Correlation 38 Airport versus the Local Market 38 Operating Model 39 Pricing 42 SUMMARY 44 Discussion Questions 45 Websites 47 CHAPTER SEVEN THE CRUISELINE INDUSTRY Introduction 1 Learning Objectives 1 A Shipboard Exchange 1 Background 2 Industry Size 3 Industry Structure 5 Terminology 8 Segmentation 9 Seasonality 11 Industry Economics 12 Demand and Supply 15 Interview: Bob Dickinson, Carnival 16 The Tax Advantage 21 Looking Forward 22 SUMMARY 25 Discussion Questions 26 Websites 28 CHAPTER EIGHT AMUSEMENT PARKS AND OTHER MAJOR ATTRACTIONS Introduction 1 Learning Objectives 1 America's First Amusement Park 2 Background 3 Amusement Park Characteristics 6 Amusement Park Economics 9 Interview: Kim Schaller, Hersheypark 11 Other Attractions 14 Museums 16 Theatre 18 National Parks 20 SUMMARY 22 Discussion Questions 23 Websites 24 CHAPTER NINE THE GAMING INDUSTRY Introduction 1 Learning Objectives 1 Bugsy Siegal Meet Gary Loveman 2 Background 3 The Native American Population Paradox 9 The Business of Gaming 11 Focus on Technology 14 Types of Casinos 16 Life Cycles 17 Industry Leaders 18 Interview: Terry Lanni, MGM MIRAGE 21 Sensitivity to the Business Cycle 29 Gambling Worldwide 31 Industry Prospects 33 SUMMARY 39 Discussion Questions 40 Websites 41 CHAPTER TEN LODGING Introduction 1 Learning Objectives 1 Cesar Ritz 1 Background 3 Industry Size 5 Hotels as Capital Assets 8 Interview: Jean-Marc Espalioux, ACCOR 9 Terminology 15 Consumer Characteristics 16 Brands and Franchising 16 Segmentation 20 Pricing 24 Focus on Technology 30 Merger Activity 31 Financial Performance 32 Lodging versus the Airlines 36 Lodging Sub-Categories 37 Bed & Breakfasts 37 Timeshares 39 Spas 42 SUMMARY 44 Discussion Questions 45 Websites 47 CHAPTER ELEVEN THE FOOD SERVICE INDUSTRY Introduction 1 Learning Objectives 1 Restaurant as Fantasy 1 Background 2 The French Influence 4 Industry Characteristics 6 Interview: Bryan McGuire, 21 Club 8 Focus on Technology 14 Industry Economics 15 Interview: Paul Avery, Outback Steakhouse 18 Owning versus Franchising 21 The Front of the House 22 High Failure Rate 25 SUMMARY 27 Discussion Questions 28 Websites 29 CHAPTER TWELVE CONVENTIONS AND MEETINGS Introduction 1 Learning Objectives 1 BizBash 1 Background 3 Industry Characteristics 4 Interview: Kathleen Moore, JP Morgan Chase 7 Leading Hosts 10 Focus on Technology 12 Industry Economics 14 SUMMARY 19 Discussion Questions 21 Websites 21 PART TWO ADVANCED MATERIAL SECTION THREE DEFINING, PROMOTING AND SELLING THE PRODUCT CHAPTER THIRTEEN TRAVEL AGENTS AND TOUR OPERATORS Introduction 1 Learning Objectives 1 A Homage to Thomas Cook 1 Travel Agencies 2 Background 2 Industry Characteristics 3 Industry Economics 6 Tour Operators 11 Background 11 Industry Characteristics 12 Niche Attractions 13 Industry Economics 20 SUMMARY 22 Discussion Questions 24 Websites 25 CHAPTER FOURTEEN DISTRIBUTION CHANNELS Introduction 1 Learning Objectives 1 What's in a Name? 2 Background 3 Terminology 8 How the GDS Works 9 The Reigning Systems 12 Industry Economics 15 Focus on Technology 20 The Next Phase 22 Interview: Philip Wolf, PhoCusWright 32 SUMMARY 36 Discussion Questions 38 Websites 40 CHAPTER FIFTEEN DESTINATIONS: A PSYCHOGRAPHIC AND SOCIOLOGICAL PERSPECTIVE Introduction 1 Learning Objectives 1 The Magic of Travel 2 Background 3 What Makes a Destination Great? 3 The Growth and Decline of Destinations 9 Why Reversing a Destination's Decline is so Difficult 18 Protecting and Restoring Destinations 24 The Cultural and Social Impacts of Tourism 29 Social Benefits of Tourism 30 Negative Social Impacts of Tourism 34 Balancing the Positive and Negative Impacts 38 Interview: Bob Drumm, General Tours 41 Marketing a Destination: Where do you begin? 44 Insights of Gary Leopold, Advertising Executive 45 Websites 49 SUMMARY 53 Discussion Questions 56 SECTION FOUR CONSERVATION AND INTERVENTION CHAPTER SIXTEEN ECOTOURISM: TOURISM'S GREEN ADVENTURE Introduction 1 Learning Objectives 1 Chumbe, Tanzania: A Microcosm of Ecotourism 2 ECOTOURISM 3 Background 3 Ecotourism Beginnings 4 National Parks and Ecotourism 5 DEFINING ECOTOURISM AND ECOTOURISTS 9 Anyone Ready for Adventure Tourism? 11 Industry and Consumer Views of Ecotourism 12 Profiling Ecotourists 13 The AITO Responsible for Tourism Policy 17 Mini -Case: UNWTO's Global Code of Ethics for Tourism 18 THE ECOTOURISM INDUSTRY 19 Ecotourism Stakeholders 20 Mini-Case: Dismal Swamp, Smithton, Tasmania 22 Mini-Case: How Can You Be a Good Ecotourist? 23 Specialized Components of Ecotourism 25 Outbound and Inbound Tour Operators 25 Accommodation: From Tree Houses to Ecolodges 27 What Makes a Successful Ecolodge? 29 Ecotourism Guidebooks and Equipment 30 NEW DEVELOPMENTS AND THE FUTURE OF ECOTOURISM 31 Establishing Ecotourism Standards and Certification 31 Sustainable Destinations 35 WHAT IS GEOTOURISM? 36 Mini-Case: Sukan Rainforest Lodge, Kinabatanga River, Malaysia 37 Recent Trends and the Future 39 SUMMARY 40 Discussion Questions 40 Websites 41 CHAPTER SEVENTEEN GOVERNMENT, POLITICS AND TOURISM Introduction 1 Learning Objectives 1 I LOVE LAS VEGAS 1 Government Interest in Tourism 3 Government Faces Challenges in Bermuda 5 Government Involvement in Tourism 6 Governments Building Attractions 10 Tokyo Disneyland 10 Euro Disney 10 Hong Kong Disneyland 12 Sentosa Island, Singapore 14 International Politics and Tourism 15 The Role of Embassies and Consulates 18 The Role of Quasi-Governmental Entities 19 The Impact of Disasters on Tourism 22 The Tsunami Impact on Thai Tourism 24 Government and Industry Coping with Global Crises 28 Focus on Technology 30 National Tourism Policy Stakeholders 33 The PEST Framework 34 National Strategy Development 37 Strategy Formulation in Finland 38 The Role of National Tourism Organizations (NTO's) 41 French Government Tourist Office - Maison de la France 42 Interview: Dr. Harry Coccossis, Greek National Tourism Organization 43 Mexican Tourism Board 46 Canadian Tourism Commission 47 Tourism Organizations in the United States 49 The Business Travel Roundtable 52 Tourism Development at a Regional and Destination Level 53 Tourism Development at a Local Level 54 SUMMARY 56 Websites 61 Discussion Questions 62 SECTION FIVE MANAGEMENT TOOLS CHAPTER EIGHTEEN REVENUE MANAGEMENT: THE ART & SCIENCE OF MAXIMIZING REVENUE Introduction 1 Learning Objectives 1 Demystifying Revenue Management 1 Why Revenue Management? 6 The Basic Process of Revenue Management 8 Revenue Management Lingo 9 Hotels 11 Airlines 13 Market Analysis 14 Market Segmentation 14 Demand and Supply Study 16 Competitive Assessment 17 Demand Forecast 18 Unconstrained Demand 19 Demand Projection 20 Threshold Demand Curve 20 Forecasting No-Shows 21 Revenue Management Implementation 22 Market-Based Pricing 22 Mix of Sales Optimization 25 Portfolio Optimization 25 Price Optimization 27 Booking Pace Controls 28 Duration Management 30 Overbooking 31 Revenue Management Software 32 Performance Management 34 Pace, Pace, Pace 34 Displacement Analysis 35 STAR Reports 36 Artificial Intelligence vs. Human Intelligence 38 Interview: Scott Nason, American Airlines 42 Revenue Management vs. Customer Service 45 SUMMARY 48 Discussion Questions 52 Websites 55 CHAPTER NINETEEN MEASURING THE ECONOMIC IMPACT Introduction 1 Learning Objectives 1 A Tale of Two Cities 2 Background 3 Measuring Direct Spending 12 Focus on Technology 26 The Multiplier 27 Damage Assessment Analysis 41 SUMMARY 45 Discussion Questions 47 Websites 48 CHAPTER TWENTY FORECASTING Introduction 1 Learning Objectives 1 The Forecasting Dilemma 2 Background 3 Qualitative Methods 4 How to Construct an Index 7 Quantitative Methods 12 Moving Averages 13 Focus on Technology 16 Regression Models 17 Autoregressive Forecasts 17 Terminology 18 Simple Regression 22 Multiple Regression 23 Applying the Forecasts 29 SUMMARY 35 Discussion Questions 37 SECTION SIX WHAT'S NEXT FOR THE INDUSTRY? CHAPTER TWENTY-ONE THE FUTURE Introduction 1 Learning Objectives 1 The One-Armed Economist 2 The Practice of Futurism 2 2030: The New Order 4 The Aging Phenomenon 11 Focus on Technology 13 Attraction and Destination Rationing 13 Other Adjustments 16 Space Tourism 18 A DELPHI Study 23 Upscale Destinations 23 Rising Temperatures, Rising Seas 25 CUBA 25 The Sectors 27 Airlines 27 Lodging 30 Cruiselines 31 Gaming 33 Rental Car 34 Motorcoach 35 Railroads 35 Restaurants 35 Amusement/Theme Parks 36 Conventions/Meetings 36 Travel Agents 36 Tour Operators 37 Entrepreneurs 37 SUMMARY 38 Discussions Questions 41
Library of Congress Subject Headings for this publication:
Tourism.