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Relationships between tourism & other industries

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Nicholle Tafe

on 19 March 2014

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Transcript of Relationships between tourism & other industries

Relationships between tourism & other industries
Sectors of the tourism industry
Arts & Entertainment
Conservation & Agriculture
Sport, science & research
Sectors of the tourism industry
To understand the complex nature of the travel and tourism industry, it has been found useful to classify travel and tourism firms and organisations according to their function, that is, according to “what they do” or the role they perform in relation to tourists.
One example may be purchasing an overnight package with an accommodation property(hospitality) that includes entry into a show or sporting event (art/entertainment/sports) including breakfast and maybe even transportation.
Another example may be purchasing a relaxing holiday to Heron Island, Queensland where they conduct research of the Great Barrier Reef and now even include tourists helping to monitor the health of the reef. Not only that they are also involved in conserving the 2 vulnerable turtle species that use Heron as their breeding ground.

Some sectors or sub-sectors of the Tourism industry are larger, or have a higher profile than others, such as airlines, hotels and travel agencies. It is important to be aware that most tourism arrangements involve more than one sector of the industry and therefore interrelationships between sectors are highly developed.
Sectors of the industry are groups of businesses that can be categorised by the functions they perform.
Relationships also exist between tourism and other industries such as:

A lot is discussed about whether there are 7, 8 or 9 sectors of the tourism industry as well as sub-sectors. We will take a look at the sectors below.

tour operators
inbound and outbound tour wholesalers
retail travel agents
information services & promotion - regional, state and national visitor information centres
meetings, incentives, conventions & events
co-ordination - councils, industry associations, research bodies, taskforces

The following tourism linking statements can highlight the interrelationships between Tourism industry sectors needed to provide a package of services for a potential tourist: A person in the tourism-generating region (home country, town or region) sees an advertisement (promotion and distribution sector) for a holiday package (tour operator and wholesaler sector) with travel by Qantas Airways (transportation sector) staying at the Hyde Park Plaza Hotel (accommodation sector) in Sydney with an escort around Sydney sights (industry services sector) and major attractions including the Opera House and Sydney Harbour Bridge (attractions sector). The advertisement recommends using an AFTA Travel Agent (coordination sector) and that for each booking, discount shopping vouchers will be provided (retail services sector).
Distribution Paths
The term ‘distribution path’ refers to the path or route that a product takes in order to move from the original producer or supplier (principal) to the person who will use it. In the Tourism industry various businesses from different sectors work together so that a service (eg air travel) is made available to a potential tourist. For example, an airline could sell its services directly to the consumer via telephone bookings to its reservation centre or through its own travel agency (eg Qantas Travel Centre). The airline could also sell its services through travel agencies (eg Harvey World Travel) or by including its services with a tour wholesaler’s package. (eg Qantas Holidays). The wholesaler might then sell this package directly to the consumer or also via a travel agency.
Industry sectors not only work together to provide a package of services and to distribute a particular product, but also work together to promote tourism services. This is called cooperative advertising or promotion. For example, a local tourist attraction, motel and small regional tour operator may jointly pay for space at a trade show (egTalkabout) or consumer show (eg Holiday and Travel Show) to promote their individual services.
In order to function & survive, organisations, businesses, sectors must work together to ensure the tourism industry is successful.
Hospitality, events & retail
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