Tourism
Tourism is movement of people away from their normal place of residence
and work for a period of not less than 24 hrs and not more than 1 year.
Tourism is a social, cultural and economic phenomenon which entails the movement of
people to countries or places outside their usual environment for personal or
business/professional purposes.
Traveling to another environment for at least 24 hours, but for no longer than one year,
for purposes related to business or leisure.
A tourist is generally only classed as such if they stay in overnight accommodation
situated in the location they travel to. By its very nature, tourism involves a round trip
rather than travel in one direction only. With this in mind, the tourism industry refers to
all aspects of the service industry that cater to tourists.
TYPES OF TOURISM
LEISURE TOURISM
Features
● Focuses on relaxation and enjoyment
● Involves sightseeing, shopping, and cultural experiences
● Often centered around beach vacations, city breaks, and entertainment
● Offers a break from routine and an opportunity to recharge
Business Tourism (MICE)
Features
● Serves professionals attending meetings, conferences, and exhibitions
● Provides networking opportunities and knowledge sharing
● Contributes to economic development and industry growth
● Requires specialized facilities and services to cater to business needs
ADVENTURE TOURISM
Features
● Emphasizes exciting and challenging experiences
● Includes activities like trekking, rock climbing, and bungee jumping
● Appeals to thrill-seekers and those seeking adrenaline rushes
● Provides opportunities for personal growth and pushing boundaries
CULTURAL TOURISM
Features
● Centers around exploration of a region’s history, traditions, and arts
● Involves visiting museums, historic sites, and attending cultural events
● Encourages interactions with locals to learn about their way of life
● Enhances cross-cultural understanding and appreciation
ECO TOURISM
Features
● Focuses on responsible travel to natural areas
● Aims to support conservation efforts and sustainable practices
● Includes wildlife observation, nature walks, and eco-friendly accommodations
● Offers opportunities to connect with nature and learn about ecosystems
CULINARY TOURISM
Features
● Revolves around exploring local cuisine and food culture
● Includes food tasting, cooking classes, and market visits
● Provides insights into regional flavors, ingredients, and cooking techniques
● Celebrates the role of food in cultural identity
PILGRIMAGE TOURISM
Features
● Focuses on visiting sacred sites, pilgrimage destinations, and religious events
● Provides spiritual experiences and connections to faith traditions
● Involves participating in rituals, ceremonies, and cultural practices
● Encourages reflection and personal growth
WELLNESS TOURISM
Features
● Centers on promoting physical and mental well-being
● Involves spa treatments, yoga retreats, and meditation practices
● Offers relaxation, stress relief, and rejuvenation
● Emphasizes self-care and a healthy lifestyle.
What is the Travel Industry?
Travel refers to the act of moving from one location to another. This can refer to
long-distance, short-distance, overseas, domestic, and various other forms. Crucially,
travel also includes both round trips and one-way journeys, and it covers a wide variety
of different travel purposes.
The travel industry, therefore, refers to the numerous aspects of the wider service
industry which cater to the needs and desires of those who have traveled from one part
of the world to another.
Factors affecting travel and tourism industry
1) Transportation
The transportation sector is one of the most obvious sectors that falls under both the
travel and tourism umbrellas and is concerned with the movement of people from one
location to another. This includes various types of travel, including air, road, rail, and
water-based methods. This sector enables tourism in the first place, but also provides
tourists with a means of getting around after they arrive at their destination.
Airline Industry
Air travel is one of the main ways that tourists and travelers reach their chosen
destinations, and the airline industry provides various services, including scheduled and
chartered flights. Companies within this sub-category may offer flights to domestic and
international destinations and long-haul and short-haul flights.
Car Rental
Car rental services provide customers with temporary access to a car. These services
can enable tourists or travelers to actually get to their chosen destination in the first
place. Still, many customers use them after arriving, as they provide more freedom for
exploration than relying on public transport.
Water Transport
As the name suggests, the water transport sub-category includes all forms of transport
that carry passengers across the water. This includes ocean liners and ferries, which
tend to voyage from point A to point B, and cruise ships, where transportation is not the
only purpose, and the voyage itself is a huge part of the travel experience.
Coach Services (Bus)
In many cases, coach services are one of the most cost-effective ways for tourists or
travelers to reach their chosen destinations, and they are especially popular for day
trips. However, coach travel does cater for international travel too. Moreover, local bus
services also fall under this umbrella.
Railway
Railways are another popular transportation method, helping passengers to get from
one location to another easily. Rail services are especially popular with domestic
travelers, due to their convenience and regularity. Moreover, many major cities use
subway-style rail services, facilitating quick and easy movement.
2) Accommodation
The travel and tourism industries also contain the accommodation sector, with people
requiring overnight accommodation for varying lengths of time. The accommodation
industry offers various options for customers, catering to different tastes, budgets, and
requirements. In addition to providing shelter and a place to sleep, many companies in
the accommodation sector also provide various other services.
Hotels
The most popular form of accommodation for tourists is hotels, which are
establishments that offer overnight stays on a short-term basis. They provide guests
with private rooms, typically including an en suite bathroom and other facilities. Most
hotels also provide housekeeping, room service, and laundry.
Shared Accommodation
The rise of platforms like Airbnb has increased the popularity of shared
accommodation, which typically consists of a space in a house that may be shared with
the owners. The accommodation itself may consist of a private room or maybe a room
shared with other guests using the facility simultaneously.
Hostels
Hostels are a form of shared-room lodging where guests pay for a bed in a
dormitory-style setup. Rooms will each provide multiple beds, with guests sharing
kitchen and bathroom facilities. They are typically classed as a budget option and are
usually provided on a self-catering basis.
Camping
A form of outdoor accommodation that uses temporary shelter, usually in a tent.
Tourists and camp travelers may opt to stay at a commercial campsite, providing
additional facilities or amenities. Alternatively, they might prefer to make their own
campsite in a publicly accessible area, like a national park.
Bed and Breakfast
Most bed and breakfast accommodation is situated in a converted private house and
will provide guests with a private room for the night and breakfast in the morning. In
many cases, the owner of the B&B will live in the building too. Guests may be offered en
suite bathroom facilities, or they may need to share them.
Cruises
Cruises are classed as both a form of transportation and accommodation. This is
because those on the cruise are allocated a cabin where they can rest, relax, and sleep.
Passengers spend most of the cruise on the cruise ship, benefiting from classic
accommodation services.
Timeshare Accommodation
Finally, timeshare accommodation is where ownership is shared between multiple
people, with usage rights being allocated to each owner at a different time of the year.
This kind of accommodation includes condos and lodges, and owners are usually
allocated usage rights for a week or two.
3) Food & Beverage
Food and drinks are basic human needs, and the food and beverage industry caters to
these needs among tourists and travelers. Again, a wide range of company types falls
within this sector, providing customers with various options. It is also worth noting that
the food and beverage industry provides opportunities for tourists and travelers to
socialize with friends or meet new people.
Restaurants
Restaurants are establishments that provide food and drink, which is primarily eaten on
the premises. That said, the restaurant sub-category of the Travel and tourism industries
also includes fast food restaurants and takeaways, family restaurants, diners, luxury
restaurants, and other eateries.
Catering
Regarding travel and tourism, the term catering is usually used to refer to food and drink
services in locations where eating and drinking are not the primary attraction. Therefore,
it would not include restaurants but food and drinks sold on public transport, parks, and
tourist sites.
Bars & Cafés
Bars and cafés provide a relaxed environment for travelers to eat and drink. In the case
of bars, the focus tends to be on sales of alcoholic and soft drinks, while in the case of
cafés, the focus tends to be on hot drinks and light snacks. Both environments also
provide a place for people to socialize.
Nightclubs
Some locations in the world attract many tourists off the back of the nightlife on offer,
with nightclubs being the main example. These clubs are establishments that stay open
until late at night and combine music with alcohol sales. Most nightclubs also feature a
stage for performers and a dance floor for guests and are most appealing to younger
population.
Indirect Factors
Entertainment
Once tourists or travelers arrive at their chosen destination, they will often need
entertainment, even if that is not the primary purpose of their journey. However, in many
cases, companies or establishments providing entertainment are one of the major
attractions drawing people to a location in the first place. Some of the sub-categories
within the entertainment sector of the travel and tourism industry are outlined below.
Casino
A casino is an entertainment establishment that provides people with opportunities to
gamble – primarily through luck-based cards, dice, and slot games. In addition to these
games, many casinos are connected to hotels or resorts, and many also host other
entertainment, such as musical or comedy performances.
Tourist Information
The tourist information sub-category is focused on providing travelers with important
information about things to do in the local area. This includes offline methods, such as
tourist information offices and leaflets, and online methods, such as informational
websites and social media accounts.
Shopping
Shops play a varied role in the travel and tourism industries, catering to people’s basic
needs, while also providing a form of entertainment. Indeed, many people travel to
specific parts of the world to experience shopping in that location, including 5th Avenue
in New York, Bond Street in London, and Rodeo Drive in LA.
Tourist Guides & Tours
Tourist guides offer organized tours of a location, typically taking a group of people to
some of the important attractions or tourist sites nearby. The tourist guide’s role is
factual information and context, helping to make the tour more interesting and
educational.
Finally, several other industries are more broadly linked to either the tourism industry,
the travel industry, or both. These include companies that promote the interests of the
travel industry itself, businesses that help connect customers with travel and tourism
products, and organizations that provide practical support or logistical assistance for
tourists and travelers.
Financial Services
Many financial services are relevant to both the tourism and travel industries. The most
obvious of these include travel insurance and medical insurance products, while other
examples include services linked to currency conversion and the acquisition of
traveler’s cheques.
1. Forex cards - (single currency and multi currency)
2. Cash in different currency
Travel Agents
Travel agents sell travel products on behalf of suppliers and generally receive a
commission for doing so. They also provide customers with advice on what the best
travel products are, based on the customer’s preferences and budget. In this sense, they
act as an intermediary between tourists and suppliers of travel products.
Tour Operators
The role of a tour operator is to combine tour products and travel products together to
sell package holidays. A package holiday will most commonly consist of air travel,
accommodation, hotel transfers, and the services of holiday reps, who can provide
organized activities.
Online Travel Agencies
An online travel agency will typically perform a very similar role to a more traditional
travel agency, albeit using the power of the Internet. While the purpose is still to connect
tourists with travel products on behalf of suppliers, there is more emphasis on
self-service methods.
Market Characteristics Growth Trends and
Segment Opportunities
Adventure Focuses on outdoor Growing interest in
Tourism activities and sustainable and experiential
exploration. Often travel. Potential for niche
eco-centric. market development.
Luxury Travel High-end Increasing demand for
accommodations and personalized and unique
exclusive experiences. luxury experiences.
Opportunity for premium
service offerings.
Wellness and Emphasizes health, Growing health
Health wellness, and consciousness driving
Tourism relaxation services. demand for wellness retreats
and spa vacations.
Eco-Tourism Environmentally Increased awareness of
responsible travel to environmental issues.
natural areas. Opportunities in sustainable
and conservation-focused
tourism.
Business and Meetings, incentives, Growing corporate travel;
MICE conferences, and opportunities for hosting
Tourism exhibitions. business events and
conferences.
Cruise Traveling on cruise Expansion of destinations
Tourism ships with various and on-board experiences.
destinations. Potential growth in untapped
markets.
