An imprint of THE BUSINESS OF Eighth edition J Christopher Holloway with Claire Humphreys and Rob Davidson TOURISM Front cover image: © Getty Images THE BUSINESS OF TOURISM Holloway Eighth edition “There are not many books that cover the basics of tourism as thoroughly as the Holloway textbook. It is written in an easy to understand language and is illustrated with plenty of brief examples.” Dr. Constantia Anastasiadou, School of Marketing and Tourism, Napier University Business School This eighth edition has been substantially revised and updated on fi ve fronts: 1. New content on topics such as the volatility of oil prices, environmental concerns and coverage of the future of the industry within each chapter 2. New chapters on Business Tourism and Visitor Management 3. New case studies at the end of the book and more overseas examples throughout 4. New design of the text in full colour 5. New online test bank of questions for lecturers to accompany the current teaching notes and PowerPoint slides at www.pearsoned.co.uk/holloway The Business of Tourism is an invaluable foundation book for Tourism or Tourism management students, offering historical context, background theory and research, making it possible for students to see how the industry has developed and to contextualise the current issues and challenges that tourism is facing today. Holloway et al place emphasis on the practical operational aspects of the tourism industry, making this book well-suited to students who intend to one day work in tourism. “Overall, the text provides a thorough coverage of the relevant areas required by students to gain solid theoretical, conceptual and applied knowledge bases in the area of the business of tourism.” Ruth Taylor, School of Management, Curtin University of Technology Chris Holloway is Former Professor of Tourism Management at Bristol Business School, University of the West of England. Claire Humphreys and Rob Davidson lecture at the University of Westminster and both have had extensive experience working in tourism, both in the public and private sectors. They have assisted signifi cantly in the preparation of this substantially revised edition and are committed to the long-term future of this text. www.pearson-books.com CVR_HOLL7102_08_SE_CVR.indd 1 20/2/09 14:14:28 THE BUSINESS OF TOURISM THEB_A01.qxd 3/6/09 11:23 Page i We work with leading authors to develop the strongest educational materials in business studies and geography, bringing cutting-edge thinking and best learning practice to a global market. Under a range of well-known imprints, including Financial Times Prentice Hall, we craft high-quality print and electronic publications that help readers to understand and apply their content, whether studying or at work. To find out more about the complete range of our publishing, please visit us on the World Wide Web at: www.pearsoned.co.uk THEB_A01.qxd 3/6/09 11:23 Page ii Eighth edition THE BUSINESS OF TOURISM J. Christopher Holloway with Claire Humphreys and Rob Davidson THEB_A01.qxd 3/6/09 11:23 Page iii Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsoned.co.uk First published 1983 Eighth edition 2009 © Pearson Education Limited 1983, 2002, 2006, 2009 The right of J. Christopher Holloway to be identified as author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6—10 Kirby Street, London EC1N 8TS. ISBN: 978-0-273-71710-2 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloguing-in-Publication Data Holloway, J. Christopher. The business of tourism / J. Christopher Holloway, with Claire Humphreys and Rob Davidson. — 8th ed. p. cm. Includes bibliographical references and index. ISBN 978-0-273-71710-2 (pbk. : alk. paper) 1. Tourism. 2. Tourism—Marketing. I. Humphreys, Claire. II. Davidson, Rob. III. Title. G155.A1H647 2009 910.68—dc22 2009000482 10987654321 13 12 11 10 09 Typeset in 9.5/12pt Giovanni Book by 35 Printed and bound by Rotolito Lombarda, Italy The publisher’s policy is to use paper manufactured from sustainable forests. THEB_A01.qxd 3/6/09 11:23 Page iv Contents Preface to the eighth edition xi List of abbreviations xii Acknowledgements xv List of reviewers xvi Part 1 Defining and analysing tourism and its impacts 3 1 An introduction to tourism 4 Why study tourism? 5 Defining tourism 6 The tourist product 10 The nature of tourism 11 The tourist destination 14 2 The development and growth of tourism up to the mid-twentieth century 20 Introduction: the early years 21 Travel in the Middle Ages 23 Developments in road transport in the seventeenth to early nineteenth centuries 24 The Grand Tour 25 Authorization to travel 26 Other political hindrances to travel 27 The development of the spas 28 The rise of the seaside resort 29 Conditions favouring the expansion of travel in the nineteenth century 31 The age of steam 32 Early tourism in North America 35 Other late nineteenth-century developments 37 The years 1900—1950 and the origins of mass tourism 38 3 The era of popular tourism: 1950 to the twenty-first century 44 Tourism since World War II 45 The growing importance of business travel 53 The all-inclusive holiday 54 Mass market tourism in its maturity 55 The influence of information technology 56 4 The demand for tourism 59 Introduction 60 The tourist’s needs and wants 60 General and specific motivation 62 Segmenting the tourism market 66 Consumer processes 70 THEB_A01.qxd 3/6/09 11:23 Page v Making the decision 74 Fashion and taste 74 The motivations of business travellers 77 Motivators and facilitators 77 Factors influencing changes in tourist demand 78 The future pattern of tourist demand 79 5 The economic impacts of tourism 85 Introduction 86 The international tourist market 86 The value of economic data 91 The economic impacts of tourism 93 Statistical measurement of tourism 104 Future issues 109 6 The sociocultural impacts of tourism 113 Introduction 114 Legislation and guidance protecting the tourist destination 115 The sociocultural effects of tourism 119 The hosts’ impacts on tourists 125 Cultural transgressions 128 The exploitation of indigenous populations 129 Managing the social impacts of tourism 129 Bringing economic benefits to locals 130 The impacts of travel on tourists’ health 132 Politicocultural impacts 133 7 The environmental impacts of tourism 136 Introduction 137 The environmental effects of tourism 138 Public-sector planning for control and conservation 153 The public/private-sector interface in the development of sustainable tourism 157 Part 2 The travel and tourism product 163 8 The structure and organization of the travel and tourism industry 164 Introduction 165 The chain of distribution for tourism 166 Common interest organizations 170 Integration in the tourism industry 175 9 Tourist destinations 183 Introduction: what defines a destination? 184 Categorizing destinations 186 Coastal tourism 187 Urban tourism 197 Rural tourism 202 Island tourism 213 Spa tourism 214 The successful destination 215 Design of the built and natural environment 216 vi Contents THEB_A01.qxd 3/6/09 11:23 Page vi The media and their influence on tourist destinations 224 Destinations of the future 226 10 Tourist attractions 230 Introduction: defining the attraction 231 Cultural tourism 259 Religious tourism 264 Shopping 265 Gastronomic tourism 269 Other attractions 271 Events 271 Sports tourism 275 The growth and promotion of dark tourism 277 11 Business tourism 285 Introduction 286 Meetings 286 The meetings industry 288 Incentive travel 294 Exhibitions and trade fairs 297 Individual business travel 301 Trends in business tourism 306 Conclusion 310 12 The hospitality sector: accommodation and catering services 312 Introduction 313 The structure of the accommodation sector 314 Classifying and grading accommodation 322 The nature of demand for accommodation facilities 326 The distribution of accommodation 338 Environmental issues 339 Catering 340 Future developments in the hospitality sector 345 13 Tourist transport by air 348 Introduction 349 The airline business 350 The organization of air transport 356 Air transport regulation 369 The deregulation of air transport 376 The economics of airline operation 381 Environmental concerns 389 The marketing of air services 391 What is the future like for air transport? 396 14 Tourist transport by water 401 Introduction 402 The ocean liners 403 Cruising 406 Ferry services 427 Coastal and inland waterways tourism 435 Seagoing pleasure craft 441 What does the future hold for passenger ships? 442 Contents vii THEB_A01.qxd 3/6/09 11:23 Page vii 15 Tourist transport on land 445 The role of the railways in tourism 446 Coach travel 460 The private car 469 Cycling and tourism 473 Tourists on foot 475 Future developments in land transport 477 Part 3 Intermediaries in the provision of travel and tourism services 481 16 The management of visitors 482 Introduction 483 Controlling the impacts of visitors 483 Meeting the cost of visitor management 485 Operational approaches to visitor management 487 Technology that can assist in visitor management 502 Future issues 502 17 The structure and role of the public sector in tourism 505 Introduction 506 The nature of government involvement 506 Planning and facilitating tourism 510 Supervision and control of tourism 519 The organization of public-sector tourism 521 The role of the European Union (EU) 534 The future role of the public sector in tourism 535 18 Tour operating 537 Introduction 538 Tour operators — why a European perspective? 538 The role of the tour operator 539 The role of air brokers 547 Tour operating within the European Union 549 Economic forces in tour operating 555 The long-haul market 556 Seat only sales 557 Recent developments 557 Including more or less? 558 Consumer complaints 558 The nature of tour operating 559 The role of the resort representative 570 Pricing the package tour 572 The tour brochure 577 The reservations system 582 Operators selling direct 586 The IT revolution and its impact on tour operating 587 The future of tour operators 590 19 Selling and distributing travel and tourism 593 Introduction 594 Historical context 594 viii Contents THEB_A01.qxd 3/6/09 11:23 Page viii The scale of the retail sector 595 The power of the travel agency chains 596 The profitability of travel agents 598 The role of travel agents 599 Distribution trends 600 Setting up and running a travel agency 605 Travel agency skills and competences 611 Travel agency appointments 618 The impact of computer technology 621 The future of travel retailing 624 20 Ancillary tourism services 628 Introduction 629 Services to the tourist 629 Services to the supplier 637 Marketing services 640 Technical services 642 The future of ancillary services 642 Part 4 Case studies 645 1 The activities of a travel management company — HRG 646 2 Brunel’s ss Great Britain: conservation and interpretation — a potential conflict? 650 3 Marketing Belgrade as a conference destination 659 4 Eurostar’s move to St Pancras station and its impact on cross-Channel traffic 667 5 The pressure of visitors to Cambridge 679 6 Business tourism in Tanzania 689 7 Women managers in UK travel and tourism — a case of a ‘glass ceiling’? 697 8 Sustainable tourism in the townships of South Africa 707 9 Bournemouth’s artificial surfing reef 712 10 A new Russian window to the West: the Province of Kaliningrad 717 Further reading 732 Index 750 Contents ix Supporting resources Visit www.pearsoned.co.uk/holloway to find valuable online resources For instructors l Testbank of question material l A full updated Instructors Manual, including sample answers, useful Websites and discussion l PowerPoint slides which are downloadable and available to use for teaching. For more information please contact your local Pearson Education sales representative or visit www.pearsoned.co.uk/holloway THEB_A01.qxd 3/6/09 11:23 Page ix [...]... international in scope, is the maximizing of satisfaction in the tourist experience Formal study of tourism is a relatively recent development, the result of which has been that the tourism business has sometimes lacked the degree of professionalism we have come to expect of other industries Indeed, in many destination countries it remains the case that much of the industry is in the hands of amateurs – sometimes... from protective guarantees, meaning that the tourist may lose out in the event of the financial collapse of one or more of the companies they have booked with Another characteristic of tourism is that it cannot be brought to the consumer Rather, the consumer must be brought to the product In the short term, at least, the supply of this product is fixed – the number of hotel bedrooms available at a particular... this will lead to the demise of the traditional package Rather, operators are adjusting their products to make them more flexible by means of tailor-made alterations to duration and other arrangements The composition of the tour This consists of the elements comprising the visit All tourism involves travel away from one’s usual place of residence, as we have seen, and, in the case of ‘tourists’ – as... further, money spent has been earned within the area of normal residency, rather than at the destination The term tourism is further refined as the movement of people away from their normal place of residence Here we find our first problem Should shoppers travelling short THEB_C01.qxd 3/6/09 10:33 Page 7 Defining tourism 7 distances of several kilometres be considered tourists? Is it the purpose or the. .. enjoyment as is the trip itself Then, recalling the experience later and reviewing videos or photos are further extensions of the experience These are all part of the product, which is, therefore, a psychological as well as a physical experience The challenge for the marketer of tourism is to match the dream to the reality The difficulty of achieving this is that tourism is not a homogeneous but a heterogeneous... tourism up to the mid-twentieth century 20 CHAPTER 3 The era of popular tourism: 1950 to the twenty-first century 44 CHAPTER 4 The demand for tourism 59 CHAPTER 5 The economic impacts of tourism 85 CHAPTER 6 The sociocultural impacts of tourism 113 CHAPTER 7 The environmental impacts of tourism 136 THEB_C01.qxd 3/6/09 13:47 Page 4 Chapter 1 An introduction to tourism Learning outcomes After studying this chapter,... throughout the text, which is rounded off with a set of new case studies of international relevance, relating to material appearing in the body of the text While the contents of the previous edition were formed by the impact of terrorism, the present edition is overshadowed by two new factors: the increased volatility of oil prices and growing concern about climate change, both of which pose a threat to the. .. The characteristics of the tourist Analysis of tourism must include analysis of the tourist We have already distinguished between the holidaymaker and the business traveller We can also identify the tourist in THEB_C01.qxd 14 3/6/09 10:33 Page 14 Chapter 1 An introduction to tourism terms of nationality, social class, sex, age and lifestyle What life stage are they in? What type of personality do they... analysis Dynamic packaging is the process by which travel agents, or other retailers of travel, themselves put together flights, accommodation and other elements of travel and sell the resulting package of components to consumers Of course, tourists can today put their own packages together through Internet suppliers, but, if they choose to do so, uncertainty about the uniformity of the product is heightened... defining tourism One of the first attempts at defining tourism was that of Professors Hunziker and Krapf of Berne University in 1942 They held that tourism should be defined as the sum of the phenomena and relationships arising from the travel and stay of non-residents, in so far as they do not lead to permanent residence and are not connected to any earning activity’ This definition helps to distinguish tourism . of tourism. ” Ruth Taylor, School of Management, Curtin University of Technology Chris Holloway is Former Professor of Tourism Management at Bristol Business School, University of the West of. demand 78 The future pattern of tourist demand 79 5 The economic impacts of tourism 85 Introduction 86 The international tourist market 86 The value of economic data 91 The economic impacts of tourism. 4 The demand for tourism 59 CHAPTER 5 The economic impacts of tourism 85 CHAPTER 6 The sociocultural impacts of tourism 113 CHAPTER 7 The environmental impacts of tourism 136 THEB_C01.qxd 3/6/09