Intro to Tourism & HospitalityChapter 2

Copyright

Introduction to Tourism and Hospitality in BC by Morgan Westcott, Editor, (c) Capilano University is used under a CC-BY 4.0 International license.

This chapter is by Morgan Westcott and is used under a CC-BY 4.0 International license.

Learning Outcomes

Understand the role of transportation in the tourism industry

Recognize milestones in the development of the air industry and explain how profitability is measured in this sector

Report on the historic importance of rail travel and challenges to rail operations today

Describe water-based transportation segments(Westcott, n.d.)

Learning Outcomes

Recognize the importance of transportation infrastructure in tourism destinations

Specify elements of sightseeing transportation, and explain current issues regarding rental vehicles and taxis

Identify and relate industry trends and issues including fuel costs, environmental impacts, and changing weather

(Westcott, n.d.)

Table 2.1: Milestones in the commercial aviation industryYear Milestone and Description

1919KLM (Koninklijke Luchtvaart Maatschappij or Royal Dutch Airlines) starts operations, making it the oldest airline still in operation.

1930 Boeing Air Transport (now known as United) introduces the first flight attendant.

1934 The first piece of airmail travels across the Atlantic via Deutsche Luft Hansa (now Lufthansa).

1939 The first passenger flight travels across the Atlantic on Pan American airlines.

1944 The Chicago Convention on International Civil Aviation takes place, giving rise to the aviation industry as we know it.

1952 The first passengers travel by commercial jet on British Overseas Airways Corporation (BOAC).

1971 The first low-cost carrier is introduced as Southwest Airlines enters the market.

1976 The Concorde enters service as the first supersonic aircraft.

1978 The United States deregulates the air industry.

1981 American Airlines introduces the first frequent flyer program.

2007Singapore Airlines introduces passenger service aboard the Airbus A380 (currently the world’s largest passenger aircraft).

2011 KLM operates the first passenger biofuel flights.Data source: IATA, 2014a

Transportation - Air

Rules and Regulations Open Skies

Blue Sky Policy

Rules and Regulations

(Westcott, n.d.)

Transportation - Air

Profitability Passenger Load Factor

Low-Cost Carriers

Ancillary Revenues

(Westcott, n.d.)

Transportation - Air

Air Safety and Security IATA encourages airlines to view safety from a

number of points, including reducing operational risks such as plane crashes, by running safety audit programs. They also advocate for improved infrastructure such as runway upgrades and training for pilots and other crew. Finally, they strive to understand emerging safety issues, including the outsourcing of operations to third-party companies (IATA, 2014a).

Transportation - Air

Canada’s Air Industry 1937, Trans-Canada Air Lines (later

to become Air Canada) was launched

1950s, Canadian Pacific Airlines (CP Air) entered the marketplace (Canadian Geographic, 2000)

In 1996, the marketplace changed drastically with the entry of an Alberta-based LCC called WestJet

(Owram, 2014) Figure 2.3 An Air Canada Jazz plane readies for takeoff

Transportation - Air

Challenges to Canada’s Air Industry Geographical size and sparse population

High taxes and fees

Two dominant airlines (West Jet and Air Canada)

Transportation - Rail

Profitability 1940s and 1950s passenger

rail industry began to decline

1977 VIA rail a Crown Corporation created relied heavily on government subsidies and still does today

Figure 2.4 CPR Mount Steven House in Field, BC (1909)

Transportation - Rail

Challenges Passenger rail must negotiate with freight for right-

of-use of tracks.

There is limited potential of routes (with the highest volume existing in the Quebec-Windsor corridor).

Fixed-cost equipment is aging out, requiring replacement or upgrading.

Transportation - Water

Cruising the World Over 55% of the world’s cruise passengers are from North America, and the

leading destinations (based on ship deployments), according to CLIA (2014), are:

The Caribbean (37%)

The Mediterranean (19%)

Northern Europe (11%)

Australia/New Zealand (6%)

Alaska (5%)

Asia (4%)

South America (3%)

Transportation - Water

River CruisesRiver VS. Ocean Cruises:

River cruise ships are smaller (400 feet long by 40 feet wide on average) and can navigate narrow passages.

River cruises carry fewer passengers (about 10% of the average cruise, or 200 passengers total).

Beer, wine, and high-end cuisine are generally offered in the standard package.

(Hill, 2013)

Transportation - Water

Cruising in Canada Generated $1.6 billion in direct

spending

Almost 10 000 full and part time jobs

$269 million in indirect spending

(BREA, 2013)

Figure 2.5 A cruise ship at sunset at Ogden Point, Victoria

Transportation - Water

Cruising BC Nanaimo, Prince Rupert, Victoria, and Vancouver

accounted for 57% of the Canadian cruise passenger traffic with 1.18 million passengers in 2012 (BREA, 2013).

Transportation - Water

Ferries mid-1800s the Hudson’s Bay Company ran

ships between Vancouver Island and the Mainland

CP Rail and Black Ball ferries ran a private service, until 1958 when Premier W.A.C. Bennett announced the BC Ferry Authority would consolidate the ferries under a provincial mandate

(BC Ferries, 2014)

Transportation - Water

Other notable Ferry journeys: An 800-mile ferry voyage

through Chile’s Patagonian fjords

A three-mile trip from the Egyptian Spice Market to Istanbul, Turkey

Urban ferry rides including Hong Kong’s Victoria Harbour, Australia’s Sydney Harbour, and New York City’s Staten Island Ferry

(Orcutt, 2011)

Transportation - Land

Rentals and Taxis Enterprise, Hertz and Avis represent approximately 85%

of the car rental business (DBRS, 2010)

taxi licences are issued by the BC Passenger Transportation Board (Proctor, 2014)

Ridesharing Apps Uber allows people to find a ride using their mobile

phone (Kuittinen, 2014)

Transportation - Land

Trends and Issues Fuel Costs

Labour

Environmental Impacts

Air

Rail

Cruise

Land

Transportation

Conclusion Tourism, freight, and resource industries such as

forestry and mining sometimes compete for highways, waterways, and airways

It’s important for governments to engage with various stakeholders and attempt to juggle various economic priorities — and for tourism to be at the table during these discussions

(Westcott, n.d.)

ReferencesBC Ferries. (2014, June 17). BC Ferries proudly celebrates 50 sears of Service. Retrieved from http://www.bcferries.com/about/history/history.html

BREA. (2013, March). The economic contribution of the international cruise industry in Canada 2012. Prepared for: North West & Canada Cruise Association, St. Lawrence Cruise Association, Atlantic Canada Cruise Association, Cruise BC. Exton, PA: Business Research & Economic Advisors, p. 1-5.

Canadian Geographic. (September/October 2000). Canadian aviation history. Retrieved from http://www.canadiangeographic.ca/magazine/so00/aviation_history.asp

CLIA. (2014, January 16). The state of the cruise industry in 2014: Global growth in passenger numbers and product offerings . Retrieved from http://www.cruising.org/regulatory/news/press_releases/2014/01/state-cruise-industry-2014-global-growth-passenger-numbers-and-product-o

DBRS. (2010, May). Rating Canadian rental car securitizations. Retrieved from http://www.dbrs.com/research/232631

Hill, Catey. (2013, February 1). What’s behind the river-cruise boom. Marketwatch. Retrieved from http://www.marketwatch.com/story/whats-behind-the-river-cruise-boom-2013-02-01

IATA. (2014a, June). IATA annual review 2014. Retrieved from http://www.iata.org/2014-review/reader.html?r=29/569#

Kuittinen, Tero. (2014, September 19). Mobile apps are absolutely murdering San Francisco’s taxi industry.BGR. Retrieved from http://bgr.com/2014/09/19/uber-vs-lyft-vs-taxis/

Orcutt, April. (2011, November). World’s most beautiful rerry Rides.” Travel + Leisure. Retrieved from http://www.travelandleisure.com/articles/worlds-most-beautiful-ferry-rides

Owram, Kristine. (2014, July 5). Unfriendly skies await proposed low-cost airlines Canada jetlines, jet naked. The Financial Post. Retrieved from http://business.financialpost.com/2014/07/05/unfriendly-skies-await-proposed-low-cost-airlines-canada-jetlines-jet-naked/#__federated=1

Proctor, Benn. (2014, June 3). Opinion: Time to reform Vancouver’s antiquated taxi industry.The Vancouver Sun. Retrieved from http://www.vancouversun.com/Opinion+Time+reform+Vancouver+antiquated+taxi+industry/9900418/story.html

Westcott, M. (n.d.). Transportation. In Westcott, M. Editor, Introduction to Tourism and Hospitality in BC (pp. 23-44). Retrieved from http://opentextbc.ca/introtourism/chapter/chapter-2-transportation/

AttributionsFigure 2.3 airplane 036 by MamaMia05 is used under a CC-BY 2.0 license.

Figure 2.4 C.P.R. Mount Stephen House, Field, BC, 1909 by Musee McCord Museum has No known copyright restrictions.

Figure 2.5 Sunset Cruise by Evan Leeson is used under a CC-BY-NC-SA 2.0 license.