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1.1 Understand and explain the structure of the international travel and tourism industry


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1.1 Understand and explain the structure of the international travel and tourism industry

Cambridge O Level Travel and Tourism 7096

Unit 1: The travel and tourism industry

1.1 Understand and explain the structure of the international travel and tourism industry

(a) Definitions of the industry:

• travel (leisure, business, VFR – visiting friends and relatives)

• travel services (retail and business travel agencies, tour operators, principals)

• tourism services (national and regional tourist boards, tourist information centres)

• tourist classifications (day tripper, length of stay, leisure or business and other purposes)

(b) Awareness of the roles of:

• tourist boards

• travel agents

• tour operators

• accommodation providers

• transport providers

• tourist attractions

• catering outlets

• entertainment venues

• ancillary tourist services

1.2 Investigate the social, cultural, economic and environmental impact of travel and tourism

(a) Types of tourism impact (economic, environmental and social issues related to the measurement of tourism impacts)

(b) Economic impacts:

• tourism’s contribution to the balance of payments and employment

• tourism multipliers, i.e. types, calculations, application to problems and links with economic development

• impact on local economy

• negative impacts of tourism (inflation, leakage, opportunity costs, over-dependence)

(c) Environmental impacts:

• importance of the environment

• positive effects – investment, conservation, regeneration, visitor management

• negative effects – air, vegetation, wildlife, water quality, other pollution issues such as congestion

(d) Social and cultural impacts:

• the demonstration effect and nature of tourist/host encounter

• positive and negative impacts – employment structures, morals, culture, health, traditions, loss of national identity

1.3 Identify the role of national governments in forming tourism policy and promotion

(a) The role of national and regional tourist boards (b) Provision of travel and tourist information centres, in country and out of country

1.4 Investigate the patterns of demand for international travel and tourism

(a) Patterns of demand for international tourism; historic trends of international tourism, volume and value

(b) Major tourism generators and receiving countries in the world, including current trends

Unit 2: Features of worldwide destinations

2.1 Demonstrate knowledge of the main global features

(a) Location of major continental land masses, oceans and seas

(b) Location of the world’s major cities in relation to their importance as major transport hubs and destinations

2.2 Demonstrate awareness of different time zones and climates

(a) Relationship between global position (longitude) and time zones

(b) Relationship between global position (latitude) and physical environment (equatorial, tropical – including deserts, temperate, arctic)

(c) Influence of climate on tourism (relief, temperature, sunshine, precipitation, humidity, wind, hazards)

(d) Correct information on climatic areas identified, using reference sources

2.3 Investigate travel and tourism destinations

(a) Nature of destinations, e.g.:

• perishable (they can be altered)

• multiple use (people other than tourists use the destinations)

• cultural appraisals (destinations are influenced by fashion) Ingredients of a successful destination, e.g.: location, attractions, organisation, support facilities

(b) Tourist destinations as amalgams (combinations) of specific environmental factors such as attractions (natural and man-made), shopping centres, support facilities, hospitality and organisation

(c) Implications of viewing destinations as amalgams and the idea of sustainability

2.4 Identify and describe the features which attract tourists to a particular destination

(a) Features of location (climate, location, cultural, religious, etc.) identified and described, using reference sources

(b) Reasons why certain tourists (e.g. disabled, young people, families, business visitors) might be attracted to a location

(c) Influence of physical features on the opportunities and constraints for the development of tourism, e.g. mountains and hills, coasts and inland waterways

Unit 3: Customer care and working procedures

3.1 Deal with customers and colleagues – “the moment of truth”

(a) Importance of following customer care policies

(b) Necessity of good teamwork and training

(c) Importance of courtesy, tact and diplomacy recognised when dealing with customers and any specific needs

(d) Procedures for handling complaints

3.2 Identify the essential personal skills required when working in the travel and tourism industry

(a) Awareness of the need for essential personal and interpersonal skills in particular job roles

(b) Importance of personal presentation, clear speech, numeracy and literacy skills

(c) Awareness of applications of technology:

• computerised reservation systems

• other information technologies, such as: telephone, telex, video text, facsimile, Internet

3.3 Follow basic procedures when handling customer enquiries, making reservations and payments

(a) Customer’s requirements correctly interpreted upon receipt of an enquiry (in person, in writing, by telephone/fax/email)

(b) Simple reservation file prepared following set procedures, including use of diary for further action required

(c) Simple receipt issued and payments recorded

3.4 Use reference sources to obtain information

(a) Timetables, travel brochures and tariffs used to obtain accurate information

(b) Itinerary drawn up to meet customer’s requirements

(c) Use of computerised information systems and relevant technology to obtain information (Worldspan, Sabre, Galileo, World Wide Web)

(d) Exchange rate lists devised and used

3.5 Explore the presentation and promotion of tourist facilities

(a) Range of promotional methods and their use identified (e.g. visual displays for shop window, advertisements, leaflets, brochures, Internet)

Unit 4: Travel and tourism products and services

4.1 Identify and describe tourism products

(a) Inter-relationship between travel and transport, catering and accommodation, attractions, leisure and recreation and business facilities

(b) Components included in different tourism products (e.g. package, independent, all-inclusive holidays)

(c) Ancillary services – guiding, currency, marketing services

4.2 Explore the roles of tour operators and travel agents in the chain of distribution

a) International tour operators (wholesalers): • tour operator’s product (transport plus accommodation)

• types of tour operator (e.g. incoming tour operators)

• nature of tour operations (how to put together a tour) • operating characteristics of tour operators (economics, scale of operations, seasonality, integration, importance of price, consumer protection) (b) Retail travel agents: • role of travel agents • different services offered

• understanding of travel agency appointments (e.g. ticket licensing) and conditions • operating characteristics 4.3 Describe support facilities for travel and tourism

(a) Concept of infrastructure – features of the built environment (utilities, roads, telecommunications, airports, ports), details of how they are funded, link with level of economic development

(b) Type and range of accommodation available (serviced/self-catering, hotels, guest houses, hostels, camping, luxury, budget, etc.):

• economies of operation and scale of investment

• measures of efficient operation, e.g. occupancy rates

• classification and grading

• facilities provided for business/leisure tourists

(c) Local public transport provision and relationship with improved accessibility – express links to airport (coach, rail, shuttle services), integrated rapid transit system or other forms of transportation

4.4 Explore the features of worldwide transport in relation to major international routes

(a) Air Transport:

• main intercontinental routes and airports identified

• types of air transport operation (charter and scheduled, domestic and international)

• operating economics of air transport, full fare versus budget (‘no frills’)

• government regulation/deregulation of air transport

• the advantages and disadvantages of regulation

• air transport and tourism development – the role of governments and international bodies (e.g. IATA)

(b) Sea transport:

• main ports and international passenger ferry routes identified • operating economies of sea transport

• major types of sea transport for tourism – passenger ferries (and major crossing areas), cruise ships (and major cruise circuits)

(c) Rail and road transport:

• major international tourist networks

• nature and operating economies of rail and road transport

• importance of motor transport in tourism

Unit 5: Marketing and promotion

5.1 Role and function of marketing and promotion

(a) Identify and explain why marketing and promotion are important to travel and tourism providers:

• increased sales/usage/profitability/market share/customer base

• competitive advantage

• positive organisational and product image

• customer satisfaction/brand loyalty/repeat business

(b) Describe the main marketing and promotion techniques used in travel and tourism: Market research

• the use of primary market research techniques (such as self-completion questionnaires, telephone surveys, face-to-face interviews, Internet surveys, postal surveys, focus groups) and secondary market research techniques (such as internal information, e.g. sales records, and sources of external information, e.g. government reports)

• identifying customers’ needs and wants using qualitative and quantitative research data Market analysis tools

• full situation analysis incorporating SWOT (strengths, weaknesses, opportunities and threats) and PEST (political, economic, social and technological influences) analyses

• the development of an effective marketing mix (product, price, place and promotion)

5.2 Market segmentation and targeting

(a) Identify the different market segments targeted by travel and tourism providers:

• geographic

• demographic

• lifestyle/psychographic

(b) Explain how specific travel and tourism products are developed to cater for the needs and expectations of different market segments:

• products (package holidays, transport including transfers, accommodation and catering, tourist attractions, tourist information services, excursions and additional activities)

• the relationship with market segments: type of customer (families, singles, groups, business, leisure, independent travellers); different ages/gender; specific needs; special interest; quality/ economy/value for money, etc.)

5.3 ’Product’ as part of the marketing mix

(a) Identify and explain the differences between travel and tourism products and services:

• products (tangible, homogeneous, separable, storable) identified and explained

• services (intangible, heterogeneous, inseparable, incapable of being stored, perishable) identified and explained

(b) Investigate the development and modification of travel and tourism products and services through:

• the use of the product life cycle (research and development, introduction, growth, maturity, saturation and decline)

• the creation of brand image through product features, packaging, price, promotion, target market segments and brand loyalty

• the development of a product/service mix to appeal to different market segments and the ways in which tourism organisations develop a product portfolio

5.4 ’Price’ as part of the marketing mix

(a) Investigate a range of common pricing policies used in the travel and tourism industry:

• market penetration

• market skimming

• discount pricing

• variable pricing

• loss leader pricing

• promotional pricing/special offers

• the going rate/competitive pricing (price makers/price takers)

• prestige pricing

• price bundling

(b) Identify and explain the factors that determine pricing policies:

• fixed and variable costs

• profitability

• subsidies

• competitors

• customers’ expectations/likely number of customers

• seasonality

• economic factors (exchange rates, taxes and other levies)

5.5 ‘Place’ as part of the marketing mix

(a) Investigate the factors that influence the selection of a location for travel and tourism facilities:

• costs

• availability of suitable premises/land

• character and features of area

• local and transient population

• adjacent facilities

• access/transport links

• availability of staff

(b) Identify and explain the range of distribution channels for travel and tourism products and services:

• direct selling

• wholesalers

• retailers

• Internet

• Global Distribution Systems

5.6 ‘Promotion’ as part of the marketing mix

(a) Explore the main methods of promotion used in the travel and tourism industry:

• advertising

• publicity/print material (brochures, leaflets, flyers)

• point of sale displays

• public relations (sponsorship, press release)

• direct marketing

• sales promotions (special offers, use of merchandising, mascots)

• personal selling

• videos/DVDs

• Internet (websites, pop-ups, e-brochures)

• electronic media including the use of mobile technology and social networks (e.g. Facebook, Twitter, LinkedIn)

• trade promotions (trade fairs, familiarisation trips, incentives)

(b) Identify and explore the factors that are considered when producing effective promotional materials:

• costs

• stages of the promotional campaign

• target market segments

• timing

• brand image

• AIDA (attention, interest, desire, action) in designing effective promotional materials

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