Intro to Tourism & HospitalityChapter 7

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 Heather Knowles and Morgan Westcott and is used under a CC-BY 4.0 International license.

Learning Outcomes

Describe the key characteristics of the travel services sector

Define key travel services terminology

Differentiate between types of reservation systems and booking channels

Discuss impacts of online travel agents on the sector

Identify key travel services in Canada and British Columbia

Explain the importance of tourism services not covered under NAICS

Describe key trends and issues in travel services worldwide

Overview

Travel Services: assist with planning and reserving components of the visitor experience (Government of Canada, 2014) Travel agencies OTAs Tour operators DMOs Other

Tourism Services: includes consultants, accommodations, etc.

Figure 7.1: HelloBC.com

Travel Agencies

Intermediary between the travel industry (supplier) and the traveller (purchaser)

Market prepackaged tours and holidays to potential travellers

Broker between traveller and hotels, car rentals, tour companies

(Goeldner & Richie, 2003)Figure 7.2: A travel agency in the UK

Online Travel Agents (OTAs)

Companies that aggregate accommodations and transportation options

Booking.com, Expedia.ca, Hotwire.com, Kayak.com

In 2012, sales of almost $100 billion (Carey et al, 2012) and almost triple that in 2013

Expedia buyout of Travelocity ($280 million) in 2015 meant decreased competition (Alba, 2015)

Challenge for the industry: commissions eat into profits, some businesses can’t afford to be inventoried, taxes aren’t remitted to destinations

Travel Agents

Direct point of contact for traveller

Can specialize in certain types of travel (e.g. outdoor adventures, culinary tours)

Some at fixed address (bricks-and-mortar), some offer services online, some do both

Usually have a specialized diploma or certificate

(go2HR, 2014)

Tour Operators

Tour operators package all or most of a trip components and then sell to the consumer

Inbound: bring travellers into the country

Outbound: send travellers out of the country

Receptive Tour Operators (RTOs): not agents, don’t operate tours – represent tourism products to tour operators (B2B

Figure 7.3: A group tour in Alberta

Other Organizations

DMOs (with OTAs they provide fewer trip planning functions and work instead on FAMs and other travel trade support)

Travel management companies (e.g. Concur), which support business travel planning

Destination Management Companies (DMCs) that plan and package travel to be used as rewards or awards (incentive travel)

Travel Services in Canada and BC

Many agencies are members of ACTA (Association of Canadian Travel Agencies)

In Vancouver alone there are over 500 travel agencies

In Canada tour operators use events like Canada’s West Marketplace (BC and Alberta) and Rendezvous Canada to sell to RTOs

Figure 7.5: Whales spotted from a tour

Travel Services in Canada and BC

Destination Canada (formerly the Canadian Tourism Commission) is our national DMO

Destination BC uses the HelloBC brand to help consumers trip plan

BC’s five RDMOs (regions) support trip planning as do CDMOs at the community level

Figure 7.6: Visitors check out the VC

Tourism Services (not under NAICS)

Sector-specific organizations

Tourism HR organizations

Training providers

Institutions

Government branches

Economic development and city planning offices

Consultants

Figure 7.7: Student-Industry Rendezvous

Trends and Issues

Budgets – Destination BC and others are challenged to provide innovative services for less money Competing destinations

have more resources

Technology has revolutionized this part of the industry

Figure 7.8: Booking is now possible 24/7

Conclusion

Financial resources are limited and competition for tourist dollars is strong

Just 20 years ago, travel agents were paramount to the process, now they must innovate

Rapid pace of change means everyone must stay abreast and adapt as quickly as possible

References

Alba, Davey. (2015, January 23). Expedia buys Travelocity, merging two of the web’s biggest travel sites. WIRED. Retrieved from www.wired.com/2015/01/expedia-buys-travelocity-merging-two-webs-biggest-travel-sites/

Carey, R., Kang, K., & Zea, M. (2012). The trouble with travel distribution. Retrieved from www.mckinsey.com/insights/travel_transportation/the_trouble_with_travel_distribution

Attributions

Figure 7.1 HelloBC Homepage by LinkBC is used under a CC BY-NC-ND 2.0 license.

Figure 7.2 Travels Agent, Huddersfield by Dave Collier is used under a CC-BY-ND 2.0 license.

Figure 7.3 Up on the glacier by Paul Gorbould is used under a CC BY NC ND 2.0 license.

Figure 7.4 Whales off Victoria, BC by Brian Estabrooks is used under a CC-BY-SA 2.0 license.

Figure 7.5 Visitor Information by Heather Harvey is used under a CC-BY-SA 2.0 license.

Figure 7.6 Floe Lake, Kootenay National Park 037 by Adam Kahtava is used under a CC-BY 2.0 license.

Figure 7.7Tourism Vancouver’s Rick Antonson addresses the audience at Rendezvous by LinkBC is used under a CC-BY-NC-SA 2.0 license.

Figure 7.8 5 Top Rated Tablet PCs by Siddartha Thota is used under a CC-BY 2.0 license.