Introduction and Principles of Tourism: Transportation Sector

HTM2113 
Introduction and Principles of Tourism
Transportation Sector
Learning Outcomes 
By the end of this lecture, you should be able to:- 
• Examine the roles played by different

segments in the transportation sector
• Discuss the challenges and issues faced

by the transportation sector
• Appraise the significance of transportation

in tourism development
Transportation Sector 
Goeldner & Brent Ritchie 2009
Passenger Transportation Structure 
Goeldner & Brent Ritchie 2009, Figure 5.2
• Air
• Road
• Rail
• Water
• Others
Significance
• Closely linked to the development
growth of world tourism by make
accessing to a place possible
• Adequate, reliable, convenient,

affordable and comfortable
transportation is vital to the growth
The Airline Industry
• Change the way people view time and distance
• Expand the reach with the equivalent time and funds in
an efficient system
• Revolutionize long-haul travel
• Dominate the long- and mid-distance market
• Have established a global network of routes serving most
large cities and smaller ones
• Air transport growth => Tourism growth

Air Travel
• Advantages • Disadvantages
– Speed – Lack of geographic
accessibility
– Time saving
– Length of time spent
– Efficient system getting to and from the
airport
– E.g. Time involved in

security check
Alliances and Consolidation
• Alliances
– Members
– e.g. Star Alliance
• Consolidation
– Mergers
– E.g. CX takeover KA
Issues of Alliances and Consolidation
• For • Against
– Greater choice – Create oligopoly and

– More seamless monopoly
travel – Higher fares
– Lower fares – Non-competitive
– Greater convenience environment
– Frequent-flyer miles
Low-Cost Carrier / Low-Cost Airlines / Budget Airlines
• An airline that offers generally low fares by eliminating many

traditional passengers services
• E.g. Jetstar, AirAsia
• Low fares and no frills

• One passenger class
• One type of airplane to reduce fleet maintenance costs
• Using secondary airports
• Quick airport turnarounds
• Point-to-point service
• Unreserved seating
• Employees working in multiple roles => well trained
• Internet booking
• What are the impacts on major carriers?

C halleng e in the airline industry
• Volatile (slug gish) glob al e conomy
• Terrorism (e.g. 911 atta cks and it's psychologic al imp a cts)
• War (e.g. G ulf war)
• N atural disaster
• Soaring fuel cost
• Alternative fuel sourc es and it's issue (e.g. Biofuels )
• La bour cost
• Intensifie d comp etition with airlines and other transportation mod es
• Encroa chment of bud g et airline

The Rail Industry
• Railway systems
– Economical
– Efficient
High-Speed Rail
• Relieve congestion on the other systems
• Have lower energy consumption per passenger
mile than air or automobile modes of
transportation
• Move passengers at speeds faster than cars
• Have advantages over air travel for relatively
short distances
• E.g. EuroStar
• Growing popularity of high-speed rail

• Provision of excellent service make it more
competitive with air travel
• What will b e the imp a cts of high sp e e d trains
on the comp etitions in the transportation
se ctor, or even attra ction se ctor?
The Motorcoach Industry
• Intermodal link
– Serve as an important link in ground transportation for air, rail and
cruise passengers
– Serve rural areas, small cities and towns
• Regular bus service
• Charters: whole coach hired
• What are the potential of making alliances with other

modes of transportation ?
The Automobile Industry
• Most predominant mode of personal transportation in all
developed countries
• Reasons for increasing automobile travel
– Affordability, accessibility, flexibiliy, convenience and comfort
• Continuing its popularity
– Passenger car registrations continue to increase worldwide
– Highway system facilitates travel by car
– Change in peopleʼs attitudes ? Freedom ?
• Issues
– Highway network development and maintenance
Rental Cars
• A fast growing segment
• What is the market potential in

China ?
The Automobile Industry
• How does the Global Positioning Satellite

(GPS) navigation systems facilitate the
growth of automobile segment in tourism ?
• Help to navigate from one point to one point
The Cruise Industry
• The fastest growing segment
• “A Resort Experience”
– Floating resorts, rather than point-to-point
transportation
Other Modes of Transportation
• Facilitate the flow of tourists
• Bring them to place that would otherwise be inaccessible
• A tourist attraction itself
• E.g. Walking in remote areas, cycling, trams, cable cars, gondolas,

ski lifts
Challenges in Transportation Planning
• Congestion
Imp a ct on holid ay
exp erienc es
• Safety and security
• Environment
Imp a ct on
d estination ima g e
• Seasonality
Transportation Sector 
Reflection Note
• Purpose of travelling ?
– A mode of carry people from one place to another ?
– An attraction ?
• Competitors ?
– Airlines vs Airlines ?
– Airlines vs Railway ?
• Environmental impacts ?
– World tourism growth ?
– Nonrenewable fuel ? Bio-fuel ? Carbon footprint ?
Reading
Goeldner, C. R., & Brent Ritchie, J.
R. (2009). Tourism: Principles,
practices, philosophies. Hoboken,
NJ: John Wiley & Sons Inc.
– Chapter 5

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HTM2113

Introduction and Principles of Tourism

• Examine the roles played by different

• Discuss the challenges and issues faced

• Appraise the significance of transportation

• Adequate, reliable, convenient,

• Air transport growth => Tourism growth

– E.g. Time involved in

– Greater choice – Create oligopoly and

• An airline that offers generally low fares by eliminating many

• Low fares and no frills

• What are the impacts on major carriers?

• War (e.g. G ulf war)

• Soaring fuel cost

• Alternative fuel sourc es and it's issue (e.g. Biofuels )

• Intensifie d comp etition with airlines and other transportation mod es

• Encroa chment of bud g et airline

• Growing popularity of high-speed rail

• What are the potential of making alliances with other

• What is the market potential in

• How does the Global Positioning Satellite

• Bring them to place that would otherwise be inaccessible

• A tourist attraction itself

• E.g. Walking in remote areas, cycling, trams, cable cars, gondolas,

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HTM2113 