1. Analyzing and
Managing Tourist
Transport

2. Subject Areas that have a direct
contribution to the analysis of
tourist transport system
 Economics
 Geography
 Marketing
 Management

3. ECONOMICS
 According to Craven (1990) Economics
is concerned with the economy of
economic system ad the problem of
allocating resources is a central theme
of economics, because most resources
are scarce

4. Resources :
 Natural resources ( land )
 Labor ( human resources)
 Capital (man- made aid to assist in producing
goods )
 Methods and Machines
Collectively these resources constitute the
factors of production which are used to
produce commodities

5. The commodities can be
divided into :
 Goods ( tangible products such as an
aircraft )
 Services ( intangible items such as in-
flight service )

6. Microeconomics :
 The firm
 The consumer
 Production and Selling
 The demand for goods
 The supply of goods

7. Macroeconomics :
 How the national economy operates
 Employment and unemployment
 Inflation
 National production and consumption
 The money supply in a country

8. Demand :
 Within economics, the concern with the
allocation of resources to satisfy
individual’s desire to travel means that
transport economist examine the
demand for different modes of travel
and the competition between such
modes of in relation to price, speed
and convenience
 What affects people’s travel behavior

9. Supply :
 Supply of a commodity, which is often
seen as a function of its price and the
price of alternative goods
 Price is often influenced by the cost of
the factors of production

10. Supply
 From the transport operator’s
perspective, the main objective in supply
terms is to maximize profitability from
the available capacity, which is usually
expressed in terms of the load factor
 Transport companies can maximize
passenger revenue by minimizing costs
and pricing their product or service at a
competitive rate.

11. The supply of tourist transport
can be characterized by :
 Major capital requirements for passenger
carriage (cost of the aircraft, passenger trains
and ferries)
 Government regulations and restrictions to
monitor the supply which is determined by
state policy
 Competitive reaction from other business
involved in tourist transport
 A high level of expertise required to operate
and manage tourist transport enterprises

12. The pricing of Air travel -
The various price strategies are:
 Single - pricing , where a uniform price
is charged for passengers on the same
flight
 Multiple – pricing, which involves
segmenting the market and offering
empty seats at a lower price
 Yield management, involving
management planning, and computer
programming to optimize revenue by
selecting the optimum mix of travelers

13. The pricing of Air travel -
The various price strategies are:
 Yield management, enhances revenue
from the seat allocation, by restricting
the availability of lower – priced fares,
airlines are able to safeguard against
revenue dilution in an environment
where many of the costs of airline
operations are relatively fixed for each
departure

14. The pricing of Air travel -
The various price strategies are:
 Leg- Based pricing , where seat
allocation is used to maximize revenue
on each sector of a flight
 Origin – destination pricing models ,
where complex linear programming
techniques are used to compare
whether a multi-leg passenger trip will
generate more revenue than a single leg
trip , and to allocate seats accordingly

16. GEOGRAPHY:

17. Leisure Time
Leisure
The time available to an individual when work,
sleep and other basic needs have been met.
Recreation
Pursuit engaged upon during leisure time
The recreation activity continuum
Home-
based
recreation
Reading,
gardening,
watching TV,
socializing
etc.
Daily
leisure
Visiting
theatres or
restaurants,
going to the
mall, sports
etc.
Day trips
Visiting
attractions,
picnicking
etc.
Tourism
Temporary
movement to
destinations
outside
normal home
and work
place.
Geographical range
Home Local Regional National International
Work
time
Business
Tourism

18. Geography and
Tourism
 When we study the geography of travel and
tourism, three key concepts need to be
considered:
1. spatial scale
2. the geographical components of the
tourism system
3. spatial interaction between the components
of the tourist system

19. Spatial scale
 This idea of scale, keeps in focus the
area being dealt with
 From the geographical point of view,
tourism can be considered from number
of scale
- world scale
- regional scale
- local scale

20. The geographical components
of the tourism system
 Tourist generating areas - represent the
homes of tourists, where journeys begin
and end.
 Tourist receiving areas - attract tourists
to stay temporarily and will have
features and attractions that may not be
fund in the generating area

21.  Transit routes – link these two types of
areas and are a key element in the
system as their effectiveness and
characteristics shape the volume and
direction of tourist flows.
- Such routes represent the transport
component of the tourism industry.
The geographical components
of the tourism system

22. Spatial interaction between the
components of the tourist system
 Tourist flow
An understanding of tourist flow is
critical for managing the environmental
and social impacts of tourism , securing
commercial viability of the tourism
industry and for planning new
developments

23. Explaining tourist flow
 Factors that helped to explain these flows:
1. Distances between countries ( the greater
the distance, the smaller the volume of
flow)
2. International connectivity ( shared business
or cultural ties between countries
3. The general attractiveness of the country

24. MARKETING:
 Kotler and Armstrong (1991), marketing
is a process whereby individuals and
groups obtain the type of products or
goods they value

25. MARKETING:
 These goods are created and
exchanged through a social and
managerial process which requires a
detailed understanding of consumers
and their wants and desires so that
product or service is effectively
delivered to the client or purchaser

26. Within Marketing
Three Areas exist:
Strategic Planning
Marketing Research
The marketing mix

27. Strategic Planning:
 Formal planning process
 The process of developing and
maintaining a strategic fit
between the organization’s goal
and capabilities and its
changing marketing
opportunities

28. Organizations
 Mission
 To serve great tasting food, bringing the joy of eating to
everyone.
 Vision
 We are the best tasting QSR..
 The most endearing brand that has ever been...
 We will lead in product taste at all times...
 We will provide FSC excellence
 in every encounter...
 Happiness in every moment...
 By year 2020, with over 4,000 stores

29. Organizations
 Values
 Customer Focus
 Excellence
 Respect for the Individual
 Teamwork
 Spirit of Family and Fun
 Humility to Listen and Learn
 Honesty and Integrity
 Frugality

30. Organizations
 Globe Telecom is a leading
telecommunications company in the
Philippines. We continue to grow and
engage our customers through our clear
commitment of "Making Great Things
Possible."

31. Organizations
 Service excellence
 PAL's excellent service has
won the hearts of travelers
worldwide. This trademark
has distinguished it from the
pack and has stood guard in
an environment that has
grown more competitive by
the day.

33. Strategic Planning:
 SWOT Analysis
S – Strength
W – Weaknesses
O – Opportunities
T – Threats

34. Marketing Research :
 is an organized process associated with the
gathering, processing, analysis, storage and
dissemination of information to facilitate and
improve decision making
 It incorporates various forms and research
undertaken by organizations to understand
their customers, markets and business
efficiency

35. Marketing Mix :
 is the mixture of controllable marketing
variables that the firm uses to pursue
the sought level of sales in the target
market
 There are four main market variables :
product formulation, price, promotion
and place

36. Marketing Mix :
 Product formulation – the ability of the
company to adapt to the needs of its
consumers in terms of the services it
provides
 Price – the economic concept used to
adjust the supply of a service to meet
the demand, taking account of sales
targets

37. Marketing Mix :
 Promotion – the manner in which the
company seek improve customers knowledge
of the services it sells so that those people
who are made aware may be turned into
actual purchasers
- To achieve promotional aims,
advertising, public relations, sales and
brochure production functions are undertaken

38. Marketing Mix :
 Place – the location at which
prospective customers may be induced
to purchase a service - the point of sale
( Travel Agency )

39. Airline Marketing :
 Is to bring together the supply of air
services, which each airline can largely
control , with the demand, and which
can influence but not control and to do
this in a way which is both profitable and
meets the airline’s corporate objectives

40. Airline Marketing
Strategies:
 Strategic Alliances
Examples:
 Oneworld is a global alliance that brings
together ten of the world's biggest and best
airlines, all committed to providing world-
class service and value.

41. Airline Marketing
Strategies:Strategic Alliances
Examples:
 StarAlliance - the airline network was established in 1997 as
the first truly global airline alliance to offer customers
worldwide reach and a smooth travel experience.

42. Airline Marketing
Strategies:Strategic Alliances
Examples:
 Sky Team -

43. Airline Marketing
Strategies:
 Acquisition
 Joint Ventures
 Franchising
 Ancillary Services

44. The role of marketing in the
management of airline services:
1. Identify markets and market segments
using research methods and existing
data sources and traffic forecasts.
2. Use the market analysis to assess
which products to offer.

45. The role of marketing in the
management of airline services:
3. Develop a marketing plan to plan and
organize the selling of the products
4. Monitor and review the airline’s ability
to meet service standards , assessed
through sales figures, customers
surveys, analysis of complaints and
long term planning to develop new
service and product features

46. MANAGEMENT:
 Getting things done in organizations
through other people
 Is concerned with the ability of
individuals to conduct, control, take
charge of, or manipulate the world to
achieve a desired outcome
 Management occurs in the context of
formal environment – ORGANIZATION

47. Management Process :
 Planning - so that goals are set out
and the means of achieving the goals
are recognized
 Organizing – whereby the work
functions are broken down into a
series of tasks and linked to some
form of structure

48. Management Process :
 Leading – which the method of
motivating and influencing staff so
that they perform their tasks
effectively
 Controlling – which is the method by
which information is gathered about
what has to be done

49. Airline Management :
 The process whereby individual ( and
group of) airlines seek to organize,
direct and harness their resources,
personnel and their business activities
to meet the needs of their organization
and customers in an effective and
efficient manner