Presentation Transcript

1. Chapter 2

   ContemporaryIssues and Approaches in Transport & Tourism
2. Contents Contemporary issues and approaches in transport The economist and tourist transport Economic issues in analyzing tourist transport Transport, tourism and economic development The demand for tourist transport The Supply of Tourist Transport Geography and tourist transport Globalisation and tourist transport Tourism geography and tourist transport The car and tourist travel Congestion Tourism geography, transport and analytical concepts
3. Contemporary issues and approaches in transport Tourism, like transportstudies, is a multidisciplinary field of study that has borrowed and refined concepts and theories from other subjects as it establishes itself as a legitimate area of academic study. This poses a number of problems for researchers when exploring the relationship between transport and tourism in the context of tourist transport systems.
4. Contemporary issues and approaches in transport In most cases research is based on those social science disciplines This has an important bearing on the analysis of tourist transport systems because the types of question a researcher asks, and the focus of their work, This chapter commences with a broad overview of some of the key issues associated with transport and tourism in the 21 century to highlight what types of concepts and ap­proaches are needed to understand them
5. Contemporary issues and approaches in transport As Figure 2.1 shows, understanding the themes and issues associated with tourist transport spans many subject areas. While this list of themes is by no means comprehensive, it does highlight two key points: to understand each theme requires a distinctive set of concepts and approaches, and increasingly these themes cannot artificially be divided into different subject areas because of the interconnections between them
6. Contemporary issues and approaches in transport Figure 2.1 identifies the broad themes which have an associated set of questions through the contribution made by different subject areas to the analysis. Many subject areas have made distinctive contributions to the study of tourism Social science subjects such as social psychology, sociology, and business and management studies have an interest in tourism and transport studies.
7. Contemporary issues and approaches in transport However, for the purpose of this chapter, there are a number of subject areas identified for consideration, since they have made a direct contribution to the analysis of tourist transport systems. These are: economics geography marketing management
8. Contemporary issues and approaches in transport Although other cognate(related) areas such as logistics, planning, environmental science and behavioural sciences(e.g. psychology) do have a bearing, these are discussed throughout the book. However, the discussion in this chapter emphasizes the main subject areas whose contribution is documented and concludes with a focus on management that provides a practical setting in which the contribution of each subject area is uniformed for a practical purpose
9. The economist and tourist transport The economist's approach to the analysis of tourist transport is based on two distinct areas of research: transport economics, and tourism economics, and each area of study uses similar concepts to understand how the tourist transport system functions. For this reason, it is useful to consider what issues are examined by economists as a basis for a more detailed discussion.
10. Economic issues in analyzing tourist transport Economics is concerned with the economy or eco­nomic system ... [and] the problem of allocating resources is a central theme of economics. Economics is also the study of methods of allocating scarce resources and distributing the product of those resources, and the study of the consequences of these methods of allocation and distribution
11. Economic issues in analyzing tourist transport Microeconomics is therefore concerned with certain issues, namely: • the firm • the consumer • production and selling • the demand for goods • the supply of goods
12. Economic issues in analyzing tourist transport On the other hand, macroeconomics is mainly concerned with: • how the national economy operates; • employment and unemployment; • inflation; • national production and consumption; • the money supply in a country.
13. Transport, tourism and economic development the economist's interest in transport is primarily focused on its role in creating economic benefits for the economy. Where transport systems operate efficiently, they can improve accessibility, create beneficial impacts and improve the mobility of people and goods. For ex., in the 1933-45 period in Germany where the concept of the Autobahn was also used as a tool to promote tourist travel
14. Transport, tourism and economic development The role of transport in sustaining the UK's productivity and competitiveness and argued that transport and economic growth are coupled together and vital to the health of the economy: such arguments are rarely compatible with pro-sustainability.
15. Transport, tourism and economic development The importance of large urban centers for economic activity and as a focus of transport activity, with 89 % of congestion delays occurring in urban areas and the need to address problems in: - congested urban areas and their catchments - key inter-urban corridors - key international gateways reflecting the advice and arguments put forward by the wide range of industry bodies and transport economists/geographers.
16. Transport, tourism and economic development At a macroeconomic scale, some studies suggest that transport may account for around 10 % of a country's GDP as well as over 10 % of household expenditure. So it has a significant impact on national economies, enabling consumers and producers to be accessed easily, while being a key element in economic development. This is often most visible at a regional scale where transport infrastructure investment and provision may be used to pump-prime (help)the economic development process
17. Transport, tourism and economic development If tourism is brought into the equation, then the role in GDP and economic activity increases. The relationship between transport, tourism and economic development is a greatly debated area, with many transport organizations arguing that there is a broadly positive relationship between GDP and demand for transport.
18. Transport, tourism and economic development This is especially the case with air travel. But while transport may improve connectivity and accessibility for tourism, it can also have a negative effect if it makes outbound travel more attractive. In other words, travel account runs in deficit because of the accessibility of outbound travel opportunities while other sectors of the economy point to the benefits offered by improved access and connectivity
19. Transport, tourism and economic development Nevertheless, transport is viewed as a prerequisite to achieve economic development, particularly where that development is related to tourism. Not only is this a function of infrastructure provision (e.g. roads, ports, airports and railways), but this infrastructure needs to be designed to provide an efficient connection be­tween the tourist and destination if it is to gain a competitive advantage so that tourism can develop
20. Transport, tourism and economic development More recent research by tourism economists have begun to model the importance of transport in explaining the economic development of tourism, measured through the impact on tourist arrivals as reflected in study of Mauritius. This repeates the importance of other studies demonstrating the crucial role of transport infrastructure in promoting destination development
21. TheDemandfor tourist transport transport economists examine the demandfor different modes of travel and the competition between such modes in relation to price, speed, convenience and reliability. Economists attempt to understand what affects people's travel behaviour and the choices they make in relation to transport as something that is rarely consumed for its own sake; it is usually demanded as a means of consuming some other goods or service
22. The Demand for tourist transport The demand for tourist transport is also characterised by: its almost instantaneous and unpredictable nature, which requires operators to build overcapacity in the supply to avoid dissatisfied travellers the variability in demand, ranging from derived demand (such as business travel) to primary demand(for vacation purposes) non-priced items (e.g. service quality, reliability and punctuality).
23. The Demand for tourist transport Transport economists have developed mathematical models to analyse the trip-making behaviour of travellers, the factors influencing demand and why variations occur in the trip-making behaviour of consumers due to relationships between socio-economic factors (e.g. age, income, profession and family status) and the effect of macroeconomic conditions (e.g. The state of the economy).
24. The demand for tourist transport In contrast, tourism economists have examined the demand for travel and tourist products, recognising the significance of demand as a driving force in the economy. This stimulates entrepreneurial activity to produce the goods and services to satisfy the demand More specifically, tourism economists examine the effective demand for goods or services, which is the aggregate or overalldemand over a period time
25. The Supply of Tourist Transport Economists are also interested in the supplyof a commodity (e.g. tourist trans­port), which is often seen as a function of its price and the price of alternative goods. Priceis often influenced by the cost of the inputs, but in the case of tourist transport it is difficult to identify the real cost of travel. For exam­ple, state subsidies for rail travel in some European countries are used to support the supply of services in the absence of a major demand for social reasons.
26. The Supply of Tourist Transport Similarly, aviationenjoys relatively favourable treatment in view of its exemption from taxation on aviation fuel in most countries. As a result of subsidies, the price charged may not always reflect the true cost, particularly where tourist transport providers use cross-subsidies in their operations. Cross­ subsidization implies that profits from more beneficial routesare used to support uneconomic and unviable services to maintain a route network.
27. The Supply of Tourist Transport the supply of tourist transport can be characterised by: major capital requirements for passenger carriage (e.g. the cost of aircraft, passenger trains and ferries); government regulations and restrictions to monitor the supply, which is determined by state policy; competitive reaction from other businesses involved in tourist transport; a high level of expertise required to operate and manage tourist transport enterprises.
28. The Supply of Tourist Transport Economists also have an interest in macroeconomic issues associated with the supply of tourist transport services. For example - economists have examined the effect of company strategy in the tourism and transport sectors in response to market competition. These different market conditions may range from near-perfect competition to a sit­uation where the 3 conditions may occur;
29. The Supply of Tourist Transport three conditions are; oligopoly, where the control of the supply of a service is by a small number of suppliers; monopoly, where exclusive control of services is by a single supplier; duopoly, where two companies control the supply of services. For the consumer, such activities may have a significant effect on the choice, price and degree of competition that occurs
30. The Supply of Tourist Transport In some cases, a monopoly situation or a variant may lead to anticompetitive practices and may not necessarily be in the public's interest. As discussed earlier, transport and tourism economists have also retained an interest in the macroeconomic effects of tourist transport on national economies. Such considerations have an important bearing on public or private sec­tor investment decisions when examining the costs and benefits of building new tourist transport infrastructure (e.g. a new airport).
31. Geography and tourist transport Within geography, the study of tourist transport has largely been undertaken by transport geographers andtourism geographers The main concern of geographers when considering tourist transport can be related to 3 key concepts that characterise the study of geography space: area,usually the earth's surface location: the position of something within space place: an identifiable position on the earth's surface
32. Geography and tourist transport Geographers are therefore interested in the spatial expression of tourist transport as a vital link between tourist-generating and tourist-receiving areas. In particular, geographers are concerned with the patterns of human activity associated with tourist travel and how different processes lead to the formation of geographical patterns of tourist travel at 3 different scales; na­tional(e.g. country), regional(e.g. county) and local levels (e.g. an individual place)
33. Geography and tourist transport Geographers have typically analysed travel as a response to satisfy a human desire for movement and the spatial outcome of such journeys. They have also considered the spatial variables in the transport system (e.g. location and places) and how these affect the costs and production of other social and economic activities.
34. Geography and tourist transport Geographers have considered: the linkages and flows within a transport system; the location and places connected by these linkages (usually referred to as 'cen­tres' and 'nodes') the system of catchments and relationships between places within the network
35. Globalisation and tourist transport The changes resulting from globalisation include: longer and more customised transport links greater sensitivity to the timing of connections, arrivals and departures; and greater reliance on communication and computer networks, as global operators achieve economies of scope from their production.
36. Tourism geography and tourist transport Geographical research on tourism initially focused on: the spatial analysis of the supply and demand for tourism the geography of tourist resorts tourist movements and flows the analysis of the impact of tourism the development of models of tourist space
37. Tourism geography and tourist transport Advances in transport technology have altered the patterns of tourist flows and made tourist travel more flexible and diffuse. Prior to the expansion of car owner­ship and mass air travel,the patterns of tourist travel were linear. It was constrained and confined to transport corridors or the destina­tions served by sea. the car has been a major cat­alyst in making patterns of travel more diffuse
38. The car and tourist travel In the post-war period the growth of car ownership has not only made the impact of recreational and tourist travel more flexible, it has caused overuse at accessible sites. This ease of access, fuelled by a growth in road building and the upgrading of minor roads in many developed countries, has been a self-reinforcing process leading to overuse and a greater dominance in passive recreational activities.
39. The car and tourist travel The importance of seasonality and timing of pleasure trips by car and the dominance of the car as a mode of transport for urban residents. The role of the journey by car as a form of recreation in itself, as well as the importance of the car as more than just a means of transport.
40. The car and tourist travel Leisure travel initiatives that have been devised to adress problems associated with the car; Encouraging travel closer to home, to local as opposed to regional facilities Containment/restriction strategies Generation of traffic on uneconomic public transport routes Improving opportunities for cycling and walking Private sector initiatives
41. Congestion Experts indicate that global increases in car ownership, where the example of the UK saw ownership rise from 30 % of households in 1960 to 70 % in 1995, with the fastest growth being in multiple car ownership for many households In 2000 the USA had also exceeded one car perlicensed driver in urban areas to prevent congestion, numerous options have been used, such as congestion charging that is now being used in London
42. Congestion Congestion is classified into: recurring (repeating) forms, which occur at the same place and same time every day, particularly amongst commuters or on school runs due to peaking of demand non-recurring forms, often arising from temporary conditions such as road works or interruption to the normal transport network ex­plained in terms of a bottleneck.
43. Congestion the car to be viewed as a positive entity, in much the same way that the road user lobby groups do, but with a warning that the car has provided un­paralleled mobility and levels of economic development the car is still to stay as a personalised form of transport. The alternative that is presented is for public transport to provide niche products (e.g. commuter use, tourist use and other uses).
44. Congestion There are more 'sensible policy directions' for transport in the early 21. century that encompass the car, including the following arguments : encouraging the development and use of less polluting and sustainable engines for cars accepting that car congestion will never be eliminated and that, as levels rise, pol­icy interventions should be aimed at managing this congestion
45. Congestion niche markets are best served by public transport, as widespread switching from the car will not occur without system-wide investment in public transport to im­prove ridership road pricing may be a better option to pursue than congestion charging, with a view to supporting fuel-efficient, low-emission car use, varying the pricing of time/day/location
46. Congestion Public transport does not hold the answer to con­gestion, since it is not a new phenomenon (though it is in relation to the car), but that policies designed to more carefully manage our use of the car would be more worthwhile than trying to revitalize public transport usage that fitted the needs of previous societies and their economies.
47. Tourism geography, transport and analytical concepts Both air transport and car travel have provided new opportunities for more flexible patterns of travel although, air travel and the expansion of international tourism are largely a nodal transport system dependent upon the air­ports (the nodes) and the flights (the flows) serving them.
48. Tourism geography, transport and analytical concepts In the case of the Mediterranean, the expansion of charter airlines has provided a closer link between the tourism markets and potential destinations, and the increase in the geographical range of charter aircraft and reduced costs of air travel have led to an expansion in the scale and distribution of tourism in the Mediterranean.
49. Marketing and Tourist Transport The diversity of transport modes used in tourism makes it difficult to generalize about transport and marketing. Public and voluntary sector organizations involved in transport for tourism that all have different marketing objectives Sometimes transport may be sold as a self-contained product, sometimes as part of a large composite product (e.g. an inclusive tour)
50. How is marketing used in tourist transport? Marketing is a process whereby individuals and groups obtain the type of products or goods they value. These goods are created and exchanged through a social and managerial process which requires a detailed understanding of consumers and their wants and desires so that the product or service is effectively delivered to the client or purchaser.
51. Marketing andtourist transport Three key areas exist in marketing Strategic planning Marketing research The marketing mix Strategic planning Defined as “the process of developing and maintaining a strategic fit between the organisation’s goals and capabilities and its changing marketing opportunities”.
52. Marketing and Tourist transport The first stage requires a company to consider: What business is it in? Who are its customers? What services do its customers require? The stage following the setting of objectives and goals is termed the business portfolio. Here the company analyses its own products or services in terms of its own business expertise and how competitors' products and services may affect them
53. Marketing and Tourist transport This is frequently undertaken as a SWOT analysis, which considers: • the Strengths • the Weaknesses • the Opportunities • the Threats of its products and services in the business environment.
54. Marketing and tourist transport Part of the wider strategic analysis of the business environment will also involve environmental scanning. This involves a wide-ranging analysis of informal and formal sources of information to understand key uncertainties which will shape the future. Figure 2.6 is one illustration of this environmental scanning approach.
55. Marketing and Tourist transport For those operators who may wish to develop a strategy, a number of options exist these can be divided into: Marketing consortia, where a group of operators cooperate to create and develop a product such as the European joint railway ticket, permitting rail travel on different European railways. Strategic alliances, where different businesses agree to cooperate in various ways.This has varied by sector in the tourism industry, but may involve marketing.
56. Marketing andtourist transport the nature of such alliances among airline companies, which included joint sales and marketing joint purchasing and insurance joint passenger and cargo flights code sharing block spacing links between frequent flyer programmes management contracts, and joint ventures in catering ground handling and aircraft maintenance.
57. Marketing andtourist transport Acquisition, which is the purchase of equity in other operations, Joint ventures, where operators seek to create new carriers. Franchising, where major operators use their market presence and brand image toextend their influence further. Ancillary activities, the development of which adds value to the operator or organisation's core business.
58. Marketing andtourist transport The strategic issues that arise in passenger transport for tourist operators are: • forecasting demand • finding ways to reduce marketing costs • building corporate product and brand strengths • relationship marketing • strategic linkages and alliances which are issues addressed at different places in this lecture.
59. Marketing Research Marketing research is an organised process associated with the gathering, processing, analysis, storage and dissemination of information to facilitate and improve decision­ making. The actual research methods used to investigate different aspects of a company's business ultimately determine the type of research undertaken.
60. Marketing Research The main types of research can be summarized into the following categories: market analysis and forecasting, consumer research, distribution research, evaluation studies, Clearly marketing research allows the company to keep in touch with its customers to monitor needs and tastes that are constantly changing in time and space.
61. The marketing mix The marketing mix is 'the mixture of controllable marketing variables that the firm [or company] uses to pursue the sought level of sales in the target market‘ there 4 four main marketing variables which it needs to harness to achieve the goals identified in the marketing strategy formulated through the strategic planning process
62. The marketing mix These variables are: Product formulation - the ability of a company to adapt to the needs of its customers. Price -the economic concept used to adjust the supply of a service to meet the demand, Promotion- the manner in which a company seeks to improve customers‘ knowledge of the services it sells. Place -the location at which prospective customers may be induced to purchase a service the point of sale
63. The marketing mix As marketing variables, production, price, promotion and place are normally called the 4 Ps. These are incorporated into the marketing process in relation to the known competition and the impact of market conditions. Thus, the marketing process involves the continuous evaluation of how a business operates internally and externally and can be summarised as 'the management process which identifies, anticipates and supplies customers’
64. Tourist transport as a service The growing importance of service quality and consumer satisfaction in tourism in the late 1980s. In the context of tourist transport, what is meant by a service? Defining the term 'service' is difficult due to the intangibility, perishability and inseparability-of services
65. Tourist transport as a service These 3 terms mean Service intangibility- a service is something that cannot be seen, tasted, felt, . heard or smelt before it is purchased. Service perishability- a service cannot be stored for sale or use at a later date. Service inseparability- a service is usually produced and consumed at the same time and cannot be separated from providers.
66. Tourist transport as a service The intangible nature of a service is determined by the fact that, a service is provided and consumed at the same time and same place, making it difficult to define and communicateits form to customers. Even so, it is possible to identify six core elements in a service if it is defined as a product, : the image of the service; the image of personnel with whom customers interact;
67. Tourist transport as a service image differences within the same sector as the service provider(e.g. how a service compares with those offered by its competitors) the customer group targeted the influence of the physical environment in which the service is delivered (e.g. the building) the working atmosphere in which the service is formulated, designed and delivered
68. Tourist transport as a service Authors point to the specific services offered to tourists as transport combining: service availability cost in comparison to competitors on the sameroute comfort and speed ambience convenience and ticketing arrangements contact with staff image and positioning of each operator.
69. The consumer benefit The supplier of a service tries to understand what the consumer wants and how they may benefit, At this stage a detailed understanding of consumer behavior is required These include social, economic, cultural, business and family influences and how they condition and affect the attitudes, motives, needs and perceptions of consumers. In the case of tourist transport services, a significant amount of research on the social psychology of tourists has examined what holidays tourists choose, the mode of transport selected and the factors affecting their decision-making as consumers
70. The service concept The supplier examines the means of producing a service and how it will be distributed to consumers. Marketing research at both the consumer benefit and service concept stage is essential to assist in identifying the specific market segment Lastly, the producer identifies and develops the image that is to be associated with the service, Having established what the service will comprise in concept form, it is developed further into the service offer
71. The service offer The service concept is given more shape and developed within precise terms set by managerial decisions, which specify: • the elements - the ingredients; • the form - how it will be offered to consumers; • the levels of service - what the consumer will expect to receive in terms of the quality and quantity of the service.
72. The service deliverysystem This is the system that is developed to deliver the service to the customer and will comprise both the people responsible for different aspects of the service experience and the physical evidence, The tourist's experience of these components is embodied in the service encounter The pursuit of excellence in service delivery has meant companies monitoring what the consumer wants and then providing it.
73. Management studies and tourist transport Management is concerned with the ability of individuals to conduct, control, take charge of or manipulate the world to achieve a desired outcome. In a practical business setting, management occurs in the context of a formal environment- the organization Within organizations (small businesses through to multinational enterprises) people are among the elements that are managed.
74. Management studies and tourist transport Management definedas 'getting things done in organizations through other people‘ In a business context, organizations exist as a complex interaction of people, goals and money to create and distribute the goods and services that people and other businesses consume or require. Organizations are characterized by their ability to work towards a set of common objectives (e.g. the sale of holidays to tourists for a profit).
75. Management studies and tourist transport Within organizations, managers are grouped by level in the organization: Chief Executive Officer (CEO) or General Manager at the top who exercises responsibility over the entire organization and is accountable to a Board of Directors. Top managers are one level downfrom the CEO and their role is usually confined to a specific function, such as marketing or sales.
76. Management studies and tourist transport Middle managers fill a niche in the middle of the hierarchywith a more specialisedrole than the top managers. First-line managers are the lowestlevel of manager in an organisation, but arguably perform one of the most critical roles the supervision of other staff who have non­managerial roles and who affect the day- to-day running of the organisation
77. Management studies and tourist transport Managers can also be classified according to the function they perform three types can be grouped: Functional managers manage specialised functions such as accounting, research, sales and personnel. Business unit, divisional, or area managers exercise management responsibilities at a general level lower down in an organisation. Project managers manage specific projects that are typically short-term undertakings, and may require a team of staff to complete them.
78. Management studies and tourist transport The goals of managers within organizations are usually seen as profit driven but, as the following list suggests, they are more diverse: Profitability, which can be achieved through higher output, better service, attracting new customers and by cost minimization. In the public sector, other goals dominate the agenda in organizations. In many government departments in developed countries private sector, profit-driven motives and greater accountability for the spending of public funds now feature high on the agenda.
79. Management studies and tourist transport Competencies can be divided into three groups: • understanding what needs to be done; • getting the jobdone; • taking people with you. While the concern with competencies questions the traditional planning, organizing, leading and control model as a description of the management process.
80. Management studies and tourist transport Four commonly agreed sets of tasks are; Planning, so that goals are set out and the means of achieving the goals are recognised. Organising, whereby the work functions are broken down into a series of tasks and linked to some form of structure. These tasks then have to be assigned to individuals. Leading, which is the method of motivating and influencing staff so that they perform their tasks effectively. Controlling, which is the method by which information is gathered about what has to be done.
81. Management studies and tourist transport Specific factors can also influence the organizational environment: Socio-cultural factors, which include the behavior, beliefs and norms of the population in a specific area. Demographic factors, which are related to the changing composition of the population (e.g. birth rates, mortality rates etc.). Economic factors, which include the type of capitalism at work in a given country and the degree of state control of business.
82. Management studies and tourist transport Political and legal factors that are the framework in which organizations must work Technological factors, where advances in technology can be used to create products more efficiently. Competitive factors, which illustrate that businesses operate in markets and other producers may seek to offer superior services or products at a lower price.
83. Management studies and tourist transport International factors, where businesses operate in a global environment and factors that obtain in other countries may affect the local business environment. Change and uncertainty are unpredictable in free market economies, and managers have to ensure that organizations can adapt to ensure continued survivalandprosperity
84. Change and uncertainty Techniques can be used to help to overcome internal resistance to change within organizations. education and communication participation and involvement facilitation and support negotiation and agreement manipulation and co-optation (selection) explicit and implicit coercion (pressure)
85. End of Chapterslides