Traditional Trade in Services

1. Traditional Trade in Services Chapter Eight

2. Learning objective: Understand and grasp the concept, characteristics and developing trend of trade in transport service, in travel service, in banking service, in insurance service

3. 8.1. Trade in Transport Service（运输服务贸易）

4. 8.1.1 Overview of principles for trade in transport service（运输服务贸易原理概论） (1)Concept and characteristics of trade in transport service（运输服务贸易的概念及特点）

5. ①Trade in transport service is derived from trade in merchandise service and based on merchandise trade; it provides service for merchandise trade.

6. ②The provider of transport service produces no tangible products and has no products for storage; what he can store is just the transport capacity.

7. ③During trade in transport service, the intermediary or agent performs frequent activities and plays an important role in trade development.

8. (2) Roles of trade in transport service（运输服务贸易的作用） • First, it is advantageous to the improvement of balance of payments.

9. Then, trade in transport service acts as the bridge and link of international trade in merchandise.

10. 8.1.2 Trade in marine transport service（海运服务贸易）

11. (1) Major business forms of trade in marine transport services（海运服务贸易的主要业务形式） • Tramp shipping • Liner shipping

12. (2) Chartering business（租船业务） ①voyage number lease ②contracted affreightment ③time-chartered vessel ④bareboat charter

13. (3) Port service (港口服务) Port gulf Business (港湾业务) Port shore business （港岸业务）

14. (4)Characteristics of international trade market in shipping service • Tramp shipping service market • Liner shipping service market

15. 8.1.3 Trade in air transport service (航空运输服务贸易)

16. High cost Safe, reliable Low rate of loss & damage Restrictions on volume &weight High-priced Seasonal goods time-sensitive customer Small size

17. Main business patterns (1) Air transport service（空运服务） (2) Airliner transport（班机运输） (3)Air charter transport（包机运输） (4) Consolidated cargo service（集中托运服务）

18. (5) Air express（航空快递） (6)Delivery service（递送业务） (7) Cash on delivery (货到付款)

19. 8.1.4 Other transport service（其他运输服务） (1)Road transport service（公路运输业务） (2) Railway transport service（铁路运输业务） (3) Pipeline transport service（管道运输业务）

20. 8.1.5 International trade in transport service（国际运输服务贸易）

21. (1)International trade in transport service and its characteristics ①Internationality ②Risks ③Complexity

22. (2)Current situation of development of international trade market in transport service （国际运输服务贸易发展的当前形势）

23. (3)Influencing factors of international trade market in transport service（影响国际运输服务贸易市场的因素） (4)Developing trends of international trade market in transport service（国际运输服务贸易市场的发展趋势）

24. 8.2 Trade in Tourism Service 旅游服务贸易

26. Have you ever traveled before? Where did you go? By yourself or go with the tourist agent? • Are you satisfied with the services you received during your travelling? Why?

27. 1. Tourism service VS. trade in tourism service • Tourism service product refers to the sum of services including entertainment, rest, catering and action provided for a traveler during the time from his leaving home to his trip home.

29. specialties of tourism product • intangibility • complexity • timeliness

31. 1. Tourism service VS. trade in tourism service • trade in tourism service: refers to the activity in which a travel agent in one country (region) provides tourist services for a consumer in another country (region) and charges remuneration for the services, including both outbound tours of domestic travelers and inbound tours of foreign travelers (international income tourism).

32. Definition of trade in tourism service tourism services Travel agent A consumer pay fees Another region One region outbound tours of domestic travelers inbound tours of foreign travelers

33. Characteristics of trade in tourism services • local commodity export • local service export • complexity and integrity

34. 2 Role of trade in tourism service in national economy • The number of inbound tourists reached to 4.8 million, increasing by 49.5% compared with last year. The direct tourism revenue EXPO brought was more than 80 billion yuan in 2010. • In Jiangsu-Zhejiang-Anhui, the tourism revenue grew by more than 20%.

35. The relative industries such as high way, railway, aviation, accommodation and catering increased by 20%.

36. Group discussion Can you discuss in group what kind of roles does trade in tourism service play in national economy?

37. 2 Role of trade in tourism service in national economy • Increase foreign exchange income • Create employment opportunities • Optimize industrial structure

38. 8.2.2 Trade in tourism service under the context of knowledge economy • One of the characteristics of Knowledge Economy Age is the further improvement of production automation and labor productivity. It is no doubt that knowledge economy makes a difference in development of the tourism service industry.

39. Future development trends of international tourism • Knowledge economy age contributes to birth of new types of tourism Under the context of knowledge economy age, time of work and leisure becomes more flexible, which leads to great demands for tour.

40. Meanwhile, new tourism forms can be facilitated by people’s new demands for tours and travelling motives. • e.g. Cambodia and Singapore have already together built an undersea coral viewing tourism area.

41. Knowledge economy age contributes to birth of new products of tourism --culture Scenic spots especially favored by foreign tourists including museums, exhibition, arts center and Disneyland etc.

42. It is well-known that Britain is famous for its literature and culture. Most of famous poets are born in Britain, such as Shakes pares. Shake spares’ hometown has become a popular tourist attraction.

43. -- network tourism More than 300 tourism companies from over 20 countries and regions including the US, Canada and Spain have built web pages or high-fidelity virtual attractions on the Internet.

44. Knowledge economy age contributes to birth of new modes of tourism management Based on popularization of the information superhighway and the Internet, tourism management get changed. • E.g. on-line sales of tourism products

46. There is a hot topic that with new impacts of knowledge economy tourism wholesalers and intermediaries will possibly be replaced. Do you think so? Why?

47. 2. New challenges by knowledge economy for tourism services • Innovation in tourism products Traditional tourism products cannot meet customers’ demands. Knowledge economy calls for new tourism products and new service forms, considering tourists’ preferences and diversified demands. For example, budget travelling has developed by travel agency when going to HK.

48. Change in competitive mode Traditional tourist service focuses on resources and passenger source. Under the knowledge economy, tourist service will transform into the competition of technology and information.

49. Improvement of personnel qualities Knowledge-intensive tourist services calls for knowledge management and improvement of personnel qualities. • Enhancement of tourism marketing Marketing mix should consider the customers’ preference based on knowledge economy.

50. 8.3. Trade in Financial Service（金融服务贸易） 8.3.1 Concept of trade in financial service（金融服务贸易的概念）