MODULE 1:

NATURE OF TOURISM INDUSTRY

An Overview of the microenvironment of the Tourism Industry (PESTLE Analysis) PESTEL( Political,
Economic, Social, Technological, Environmental, Legal)

Politics
Government type and policy
Funding, grants and initiatives
Economy
Inflation and interest rates
Labour and energy costs
Social
Population, education, media
Lifestyle, fashion, culture
Technology
Emerging technologies, Web
Information & communication
Legal
Regulations and standards
Employment law
Environmental
Weather, green & ethical issues
Pollution, waste, recycling

The PESTLE Analysis is a framework used to scan the organization’s external macro environment. The
letters stand for Political, Economic, SocioCultural, Technological and Environmental. Some approaches
will add in extra factors, such as International, or remove some to reduce it to PEST. However, these are
all merely variations on a theme. The important principle is identifying the key factors from the wider,
uncontrollable external environment that might affect the organization.

How to write a PESTEL Analysis?

A PESTLE analysis should feed into a SWOT Analysis as it helps to determine the threats and
opportunities represented by macro-environment forces that the organization usually cannot control.

A. POLITICAL

Political refer to the stability of the political environment and the attitudes of political parties or
movements. This may manifest in government influence on tax policies, or government involvement in
trading agreements.

Examples :

•It includes government policy, political stability or instability, bureaucracy, corruption, foreign trade
policy, tax policy, trade restrictions, labor/environmental copyright/consumer protection laws,
competition regulation, funding grants & initiatives, etc.
• Open borders- while some countries

Are still difficult to access (often for political reasons), the vast majority of destinations can now be
visited by tourists from all around the world. In many cases a visa of some sort is necessary; however,
the process of applying for a visa has been expedited in many countries, in part thanks to the use of
technology.

Government stability

• Political stability is a major factor in the success of tourist destinations. Travelers are naturally curious
to visit all corners of the world, and they can only really be swayed by the threat of danger. Most popular
tourist destinations are considered safe. However, there are a number of culturally-rich destinations that
would be popular tourist spots if not for political instability. Examples include Syria, Iraq, and recently
Hong Kong.

Tax incentives

• Another Political factor impacting the tourism industry across the world is that of tax incentives. In
many countries, tourists are able to claim A tax refund on products purchased during their trip upon
departure. It’s rarely the case that these tax incentives are the only reason for a tourist to visit, but there
is no doubt that they are an “incentive” for all tourist.

Economic

Economic Factors are the factors that affect the economy and include interest rates, tax rates, law,
policies, wages, and governmental activities.

• Examples includes economic trends, growth rates, industry growth, seasonal factors, taxation, inflation,
interest rates, international exchange rates, International trade, labor costs, consumer disposable
income, unemployment rates, availability of credit, monetary policies, raw material costs, etc.

Rising disposable incomes

• Across the world, incomes are rising. As the world economy grows, individuals are able to earn more
and more. With living expenses growing nowhere near as quickly, many of the world’s citizens have more
money to spend than ever before. This has lead to an increase in the use of electronic goods (which are
increasingly accessible also thanks to lower product costs), but also results in more individuals being able
to travel. This is clearly a positive factor for the tourism industry.

Socio – Cultural

It represents the culture of the society that an organization operates within. They may include
demographics, age distribution, population growth rates, level of education, distribution of wealth and
social classes, living conditions and lifestyle.

Examples:

Attitudes and shared beliefs about a range of factors including health, work, leisure, money, customer
service, imports, religion, cultural taboos, the environment; population growth and demographics, family
size/structure, immigration/emigration, lifestyle trends, etc.
SOCIAL PRESSURES

There’s no doubt about it: travel is Fashionable. With the rise of social media, Individuals now have a
constant, online presence, and they want to use that to impress. The social popularity of travel is causing
individuals to travel when they might have otherwise stayed home. Of course, this movement is a
positive one for the tourism industry, but may not see sustainable growth if society moves away from the
use of social media.

Racial acceptance

• Another positive Sociocultural factor for the tourism industry is that of racial acceptance. Individuals
from around the world are increasingly accepting of those of other races and religions. This makes
travelling a much more comfortable experience, since tourists don’t need to worry about being profiled
or targeted as a result of their skin color, faith, or whatever other personal traits they may have.

Technological

It refers to the rate of new inventions and development, changes in information and mobile technology,
changes in internet and e-commerce or even mobile commerce, and government spending on research.

Examples:

•AI Chatbots • Softwares • Virtual Reality • Internet of Things(IOT)

Better transport

• One of the biggest Technological factors influencing the tourism industry is the development of
transport. Not only do travellers have more transportation options than ever before — especially with
the advent of airplanes — but they are cheaper (and faster!) than ever before. Buses, trains, and planes
are also more comfortable than previously, and feature new amenities such as WiFi connectivity or
charging ports.

HOTEL TECHNOLOGY TRENDS 2020

SERVICES AUTOMATION

Reduces human task and eliminate unexpected errors or latencies during check-in and check-out process

SMART HOTEL

Transfer hotels becoming a giant machine with a high level of accuracy.

VOICE SEARCH, VR, AF

Customers would expect to interact with hotel room elements in real feels without really coming to the
hotel.

FACIAL RECOGNITION

Enhances cyber securities and privacy rights of customers.

ENVIRONMENTAL
Transport pollution

• Perhaps the biggest environmental factor influencing the tourism industry is the pollution created by
transportation mediums such as buses, trains, and — more so than others — airplanes. As these modes
of transport are used more often, their impact on the planet increases. All three result in the creation of
large amounts of pollutants (such as carbon dioxide) which contribute to global warming and other
environmental phenomena.

Pollution

• In addition to pollution on a global level, tourism can cause pollution on a local level. In some cases,
tourists may be less respectful of a destination than of their hometown, causing them to litter and/or
contaminate. Whether it’s discarding of bottles in the countryside or using regular shampoo in lakes, this
is an unfortunate side effect of the tourism industry.

Climate change

• This is the most talked about environment issue nowadays. A lot of tourist destinations will be deeply
affected by the changes brought about by global warming (rise in temperature) and the rise in water
levels.

SARS, CORONA virus and other health issues

• Public health issues deeply Affect tourism especially because tourism involves a lot of mobility.

Natural disasters

Several natural catastrophes have severely affected tourism in the recent past especially in the Asian
region. Disasters, though, sometimes present opportunities. The rise in disaster tourism for example
where tourists travel for relief operations. Some devastation brought about by these disasters has
become tourists attractions like the lahar brought about by Mt. Pinatubo eruption.

SALIENT POINTS:

The difference between Political and Legal factors is that Political refers to attitudes and approaches,
whereas Legal factors are those which have become law and regulations. Legal needs to be complied
with whereas political may represent influences, restrictions or opportunities, but they are not
mandatory. -
PESTLE analysis as is a much more comprehensive version of the SWOT analysis.
-PESTEL means Political, Economic, Socio-cultural, Technological, Environmental, Legal aspects. It gives a
bird’s eye view of the whole environment from many different angles that one wants to check and keep
track of while contemplating on a certain idea/plan.

Nature of Tourism:

The tourism industry, also known as the travel industry, is linked to the idea of people travelling to other
locations, either domestically or internationally, For leisure, social or business purposes. It is closely
connected to the hotel Industry, the hospitality industry and the transport industry, and much of it is
based around keeping tourists happy, occupied and equipped with the things they need during their
time away from home.
Tourism is classified as a tertiary industry, one that gives service for a fee. Physical products are
produced, stored, later sold and still later consumed. An example is a tin of cream that is tangible, non-
perishable, the same from tin to tin and can be separated by its producer (shipped)

How the Tourism Economy Works?

A tourist is defined as “any person who travels to a country other than that in which he or she resides
but outside their usual environment for a period not exceeding 12 months and whose main purpose of
visit is other than the exercise of an activity remunerated from within the country visited.

Tourism is vital for the success of many economies around the world. There are several benefits of
tourism on host destinations. Tourism boosts the revenue of the economy, creates thousands of jobs,
develops the infrastructures of a country, and plants a sense of cultural exchange between foreigners
and citizens.

SECTORS OF THE TOURISM INDUSTRY

Transportation

The transportation sector is concerned with helping tourists to get where they need to go, via the
provision of transport. This may include providing them with the means to get to their intended holiday
destination in the first place, but may also include assisting them with getting around after they arrive at
their destination.

Accommodation

The accommodation sector is central to the travel and hospitality industry, because people travelling to
different areas require somewhere to stay, rest, sleep and unwind. In fact, by many definitions, a tourist
is only classed as such if their stay exceeds 24 hours and they use some form of overnight
accommodation.

Food and Beverage

• The food and beverage sector has an interesting role within the tourism industry, providing tourists
with essential refreshments at all stages of their travel experience, including during travel, when
spending time in their chosen accommodation, and when they are out and about exploring the location
they have travelled to.

Entertainment

• Some tourists travel to new locations in the pursuit of entertainment. Such travellers may be drawn to
entertainment options that are not available in their home location, or they may simply require more
general entertainment, which would be accessible almost anywhere in the world, as part of their trip.

Connected Industries

• Finally, there are also a number of industries that are either directly or indirectly connected to the
tourism industry. These include industries based on actually connecting customers with travel services,
as well as industries based on providing customers with important information that can assist them in
their travels.
THE GLOBAL HOSPITALITY WORKER

MODULE2:

Employment Opportunities in Hospitality and Tourism Industry

AIRLINES : Career opportunities

A. F L I G H T C R E W :
1. Fight Deck Crew, Cockpit crews generally consist of three pilots; the captain, or senior pilot, makes
flight plans, operates the airplane, and supervises other crew members
2. Cabin Crew. Flight attendants provide for the comfort and safety of the passengers. Flight
Attendants personally represent the airlines and, in a sense, personify the product.
B. GROUND CREW:. Refers to the services rendered by the airline to passengers at the terminal
before and after flight.

• Reservations. An airlines reservations agent is usually the first contact a prospective passengers has
with the airline.

• Passenger Services. Airline ticket agents sell tickets and keep records, tag luggage, assign seats,
announce flight arrivals and departures, and board passengers.

• Customer service agents deal with passengers with special needs, such as handicapped travelers and
children traveling alone.

• Ramp agents see that passenger’s baggage is loaded on the correct flight.

C. MAINTENANCE
Maintenance employees work either for a specific airline or for the local governmental authority
that runs the airport. The most important maintenance workers are the mechanics and engine
specialist who service and repair airlines.
D. OTHER PERSONNEL. The Fixed Base Operator (FBO) provides smaller craft operators with flight
information, fuel. Security officials inspect baggage and electronically search passengers. Flight
kitchen or catering personnel prepare passenger meals. Aircraft cleaners supply the airplane
with them such as clean towels, fresh water, and magazines.

E. AIR TRAFFIC CONTROLLER coordinate the flights of airplane to prevent accident and minimize
delays in accordance with aviation rules and regulations.
F. Station Manager. It is his or her responsibility to see that flights are coordinated and that the
weight, balance, and load of each departing flight is calculated.
G. Airport Manager. Every airport has a manager who deals with the airlines, oversees maintenance
of the buildings and runways, monitors businesses operating in the airport handles public
relations, and makes sure that aviation regulations are enforced.
H. Office (GO). Serves as the corporate headquarters. The GO is the center for administrative and
technical departments, major maintenance and training.
I. Sales Offices. The sales representatives who work out of these offices are responsible for calling
on the intermediaries and decision makers.
CRUISE SHIP
 The cruise line industry offers various career paths in the tourism industry. Cruise ships have
land-based and sea-based operations from which a person can choose his/her career

CAREER OPPORTUNITIES

[Link]: is the place on the ship where the captain and his crew manage the direction and speed of
the ship, as well as other functions of the vessel.

➢ Merchant Marine Jobs (captain, mates( deck officers), able seaman, deckhands, etc.)

➢ Engine Department (chief, DDE, assistant engineer, oiler, wiper, etc.)

➢ The captain has the final authority in the ship.

➢ The deputy captain is the second-in-command and is in charge in absence of the captain.

➢ The chief engineer oversees all the mechanical equipment, such as the engines, electrical systems,
lightning, plumbing, waste management, on-board climate control, and the maintenance or repair of
the ship itself.

➢ The chief medical officer, or doctor, tends to the health of the passengers and the crew.

➢ The chief radio or communications officer oversees in-room satellite TV programming, shipto-shore
phone calls, internet service, and all other shipboard communication systems.

[Link] (cabin crew, housekeeping, reception, manager, butlers etc.)

➢ The hotel manager ensures that all hotel operations on the ship are properly implemented.

➢ As with the front desk personnel of a hotel, the purser is in charge in all phases of guest stay, like
welcoming the guest, assisting the guest, transacting financial matters, and processing immigration
and customs requirements.

➢ Leisure Center (instructors, lifeguards, activity leaders, etc.)

C. GALLEY (HOTEL KITCHEN)

➢The executive chef manages the French kitchen brigade on the ship.

➢The head housekeeper of chief steward manage the sanitation of all staterooms, public spaces, and
private spaces.

➢The food and beverage manager oversees the dining team, which is composed of the maitre, d’
hotel, table captains, waiters/waitresses, busboys, bartenders, drinks servers, and wine stewards.

SURFACE TRAVEL

CAREER OPPORTUNITIES

A . Career on the railroad industry

• Probably the best – known jobs in the railroad industry are those of engineer (train Driver) and
conductor.
• Engineer are responsible for the safe operation of the train, while the conductors oversee the safety of
the passenger.

• Some careers in railroad industry involves public contact or sale/service. These include reservations
clerk, sales representative and station agent and a wide range of clerical positions.

[Link] in motor coaches

• Job opportunities on motor coach industry are bus operators, special service operators, career on
public contact sales service include ticket agent, tour manger tour representative sales representative.
Clerical and general office position

• Bus Dispatcher – He or she dispatches/ issues orders for station departure of long distance buses
according to schedule and specified hours and oversees bus drivers and bus attendants while they are at
the terminal;

• Bus Attendant- He or she renders a variety of personal services to bus passengers to make their trip
pleasant; welcomes passengers boarding the bus.

• Dispatcher Clerk – He or she schedules work for bus crew or individual workers an keeps time record.

C . Careers in car rental opportunities

• Sales Rental Agent – greets customers and helps them find suitable car for their needs. Agents are
trained in CRS and billing procedures as well as communication skills and proper telephone manners and
customer relations.

• Reservation Agents work directly over the phone with request from airline reservation clerks, travel
agents and the general public.

• Car Rental Sales Representatives – promote car rental services to the business. Other deals with travel
agents and airlines..

• Automobile Rental Clerk – He or she rents automobile to customers at airports, hotels, marinas and
other locations.

TRAVEL AND TOUR AGENCIES

CAREER OPPORTUNITIES

• The travel agency is a legally appointed agent, representing the principal in a certain geographic area.
The agency acts as a broker and brings the buyer and seller together for the other suppliers such as
hotels, car rentals, ground operators and tour companies.

A. Travel Agent - plans itineraries and arranges accommodations and other travel services for customers
of travel agency; converses with customers to determine destination, mode of transportation, travel
dates, financial consideration and accommodation required, plans or describes and sells itinerary
package tour.

B. Travel Information Center Supervisor – supervises and coordinates activities of workers engaged in
greeting and welcoming motorist at state highway information centers
C. Tour Operators – is the whole sale agent of the travel industry. The primary function of the wholesaler
is the design of tours and travel packages on a large scale, marketing these packages to the retail travel
agent and major airline carriers.

D. Tourist Information Assistant – provides information and other services to tourist at an information
center.

E. Tour guides – escort visitors around the city or town; describes points of interest along the route of
tour using public address system or megaphone.

Leisure, Gaming and Entertainment Industry

CAREER OPPORTUNITIES

• Casino Operations – are divided into five functional areas: gaming operation staff, casino service staff,
marketing staff; human resources staff and finance and administration staff. There are career
opportunities in the five functional areas. Gaming operation staff includes slot machines technicians,
tablegame dealers and supervisors and casino service staff, marketing and human resourcesn staff.
Casino service staff includes security, purchasing, maintenance and facility engineers.

• Entertainment Operations – are for those interested in stage and theater production, lighting and box
office management, and talent management and booking.

MODULE 3: TRAVEL AGENCIES, TOUR OPERATORS, AND TOUR GUIDES

Brief History of Travel Agencies:

• In the year 1822, Robert Smart who hails from Bristol, England, has declared himself as the first
Steamship agent of all time. His first operation was booking passengers on steamers to various ports in
Bristol Channel And Dublin, Ireland.

• THOMAS COOK

• During 1841, Thomas Cook embarked on a special train from Leicester to Loughborough (England). The
train trip was a 12-mile journey. After the success of the first train tour, on the same year on 5th January,
Thomas Cook has arranged a train which carried 570 passengers on a round trip. The train trip costs 1
shilling per passenger. This is believed to be the first public train tour that is advertised to the public. In
1943, he organized a trip from Leicester to Derby in England; on this tour he carries 3000 school
children. During this year, it was the largest group tour.

• THOMAS BENNETT( 1814-1898)

• In the history of travel agency, Thomas Bennett was the first person to specialize in individual inclusive
travel.

• He is from Oslo, Norway. To visit the British notables, Bennett often organized an individual tour in
Norway.

• Gradually, he established the business as a “Trip Organizer” in 1850. The main aim of the business was
to provide individuals tours. The tour includes travel plans, carriages, and a traveling kit. Apart from
providing the individual tour, Bennett arranges in advance for the horses and hotel rooms for his
customers.

Types of Travel Agency

• 1. Retail Travel Agency

• According to Airlines Reporting Corporation (ARC) a retail travel agency is defined as ” a business that
performs the following functions: quotes fares, rates, make reservations, arrange travel tickets and
accommodation, arrange travel insurance, foreign currency, documents and accepts payments.”

• The main source of the revenue for the travel agency is the commission received from the vendors.
However, the rate of the commission differs from organization to organization an travel component to
the travel component.

• 2. Wholesale Travel Agency

• These agencies are specialized in organizing package tours, which are marketed to the
customers/tourists through the network of a retail travel agency or directly to the prospective clients ( if
wholesale travel agency has a retail division). A wholesale travel agency purchases tourists’ product
components in the bulk and designs tour packages.

• Sometimes, a wholesale travel agency buys travel components from the vendor in bulk and resell them
to other travel business organizations.

DIFFERENCE BETWEEN WHOLESALE TRAVEL AGENCIES AND TOUR OPERATORS

[Link] travel agency does not sell directly to the public, while tour operators do sell directly to
clients.

2.A wholesale travel agency usually combines, assembles and contacts for existing travel services to
formulate a new travel product she has his own one or more components of travel product i.e. ‘ inclusive
tours.

[Link] travel agencies are less inclined than tour operators to perform ground services i.e. handling
agency or ground operators.

4.A wholesale travel agency may deal with one component of travel product while a tour operator offers
a variety of tour programmes.

[Link] size of the business is large in the case of tour operators in comparison to a wholesale travel
agency.

FUNCTIONS AND SERVICES OF TRAVEL AGENCY

[Link] Information

• Whatever the size of a travel agency, it has to provide necessary travel information to tourists. A travel
agency must give up-to-date, accurate, and timely information regarding destinations mode of travel,
accommodation, sight-seeing, shopping, immigration, passport, visa, customs clearance and procedure,
health and security rules, and various permits required to travel in particular areas, etc
2. Itinerary Preparation

• The term tourists itinerary is used to identify the origin, destination and all the stopping points in a
traveler’s tours. It is a composition of various elements and designed after a detailed study of the
market. Travel agencies prepare an itinerary for tour packages.

3. Airline Ticketing and Reservation

• A travel agency sells a variety of tourism products. Airline ticketing and reservation is still a major
source of revenue. Travel agencies perform a function of airline ticketing and reservation on behalf of
various airlines.

4. Tour Packaging and Costing

• Travel agencies prepare a tour package and sell them to tourists. The coasting and pricing of tour
packages depend to a large extent on the ability of travel agents as to how effectively he is able to
negotiate with the principal suppliers.

5. Reservation

• It is a very important function of all types of travel agencies. A travel agency consistently makes linkage
with the accommodation sector, transport sector and other entertainment organizations to reserve
rooms, and seats in the cultural programs and transportation.

[Link] Insurance

• Some large-scale travel agencies perform additional functions to serve their clients. Travel insurance
protects travelers against the person as well as baggage losses resulting from a wide range of travel-
related happenings and problems.

7. Currency Services

• Approved travel agency authorized by Govt. body provides currency exchange services to tourists.

8. Organization of Conference/Conventions

• Large-scale travel agencies offer a complete convention/conference package which includes

RECREATION AND LEISURE INDUSTRY : MODULE 4

INTRODUCTION TO LEISURE AND RECREATION

Recreation and leisure are terms often used interchangeably. Both relate to what people choose to do in
their free time; time that is not otherwise used for work, school, or other activities like appointments
and chores.

Leisure time is any free time that can be used to pursue personal interests.
 Recreation is an individual’s preferred pleasurable and enjoyable activities in which they engage during
leisure time.

STRESS MANAGEMENT

• The mild stress of leisure activity can reduce overall negative stress by contributing to relaxation.

SELF ESTEEM

• This is especially in children and seniors, mild exercise, group activities, and hobbies and crafts will help
create positive self images.

POSITIVE LIFESTYLE DEVELOPMENT

• It contributes to society, social interaction, development of leaders, being part of organized sports all
encourage good lifetime activities.

PERSONAL SATISFACTION

• Any creative outlet will enhance personal satisfaction. Being part of the leadership offers self
satisfaction, and those who work in the recreational areas can feel the pride in keeping these areas vital
and available to others.

QUALITY OF LIFE

• It includes fresh air, sunshine, social interaction, health benefits and self esteem all will improve quality
of life.

PREVENTATIVE HEALTH

• It includes regular exercise, physiological benefits from mild exercise, and stress reduction all are made
easier by having leisure and recreational activities readily available.

TYPES OF ORGANIZED RECREATION:

[Link] recreation agencies

These are the federal, state, provincial agencies, and local departments that provide recreation and
leisure as services as a primary function. Also include are other agencies that offer recreation programs
as a secondary responsibility such as those concerned with social service, education, special populations
and the armed forces.

2. Voluntary Non – profit

These are the governmental, non-profit agencies, both sectarian and non-sectarian which serve the
public at large with multiservice programs that often include a substantial element of recreational
opportunity. The most popular voluntary organizations include the Boy Scouts, Girl scouts, YMCA, YWCA,
and YM-YWHA.

3. Private membership organizations

They provide recreational and social activities for their own members and in some cases assist
community recreation needs. (golf, tennis, yacht, athletic, and country clubs.) Also included under this
category are the recreation sponsors connected to residence such as swimming pools, sports or fitness
complexes or clubs attached to leisure villages, and apartments or condominium retirements or
retirement communities.

4. Commercial recreation enterprises

These are privately owned businesses which operate to make a profit such as ski centers, bowling alleys,
night clubs, movie houses,theaters, health spas or fitness centers, dancing schools and theme parks.

[Link] recreation programs

They serve those who work for companies or employees by providing recreation as a part of a total
perrsonnel benefits package linked to other services concerned with employee health and fitness.

[Link] forces recreation

Although it is obviously a form of government sponsored activity, it is unique in its setting and purpose.
Each of the major branches of the armed forces operates an extensive network of recreation facilities
and programs.

[Link] recreation

It includes intramural athletics or sports clubs, social activities, travel programs, performing arts groups,
entertainment, lounges, film series and other forms of recreation on college, and university campuses.

8. Therapeutic recreation services

These include any other program designed to meet the needs of persons with physical or mental
disabilities, individuals with poor health, dependent aging persons, social deviant persons in correctional
facilities, and similar special groups.