REC 280 MIDTERM 2.docx

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Department
Recreation and Leisure Studies
Course
REC 280
Professor
Stephen Smith
Semester
Winter

Description
Chapter Four – Transportation - Travel ≠ tourism; - Transportation (with infrastructure that supports it): play important role in tourism – visitors need to be able to reach their destinations and go from one place to another - Different modes of transportations to serve different purposes o Get tourists to destination quickly, give tourists the chance to see the country side, or to step bath in time and enjoy a method of travel used when they were young - Before early 19 century, very little modes of transportations o Invention of steam engine: did not have to be wealthy to travel o Automobile: within the financial reach of middle class and with minimum infrastructure - Selecting a mode of transportation depends on certain factors: o Cost: transportation is a large portion of travel budget – need to know needs and financial situation o Service: how well is the customer treated once under control of transportation? o Time: pleasure travellers often condense as much vacation time into 1-2 weeks but business travellers want fastest method possible o Convenience: other things to consider are location of terminals, check-in procedures, equipment needed, etc. o Safety issues: what is their safety record? How carefully does the transportation deal with comfort and safety? o Route Structure: smaller countries may only have one airport and require another mode of transportation to get to destination o Frequency of Departures: smaller towns may have air services on specific days only and more major destinations have more frequency - Personality and psychology also play a role in choose a mode of transportation o Fears and Prejudices: formed during childhood and will affect choice of transportation o Stereotypes and perceptions: perceptions are based on lack of knowledge and are similar to fears o Self-Image and our desire for status TRAVEL BY AIR - Airline has most impact on global development  provides 31.9 million jobs globally - Major carrier of goods  handled $3.557 billion USD - Economic and social benefits the industry brings to citizens around the world o It is the driving force behind growth of international tourism and trade o Connects people, countries, and cultures in a fast, safe, and mostly convenient matter o Provides the world’s goods with access to global markets o Force that drives both economic and social progress o Forges links between developed nations and those struggling to improve their economic standing globally - Canadian federal government made Trans Canada Airlines (TCA – now Air Canada) - Canadian Transportation Act was passed in 1966 it gave CP Airways rights to 25% of Canada’s domestic air routes - Canada passed Nation Transportation Act in 1987 that replaced the Passenger Ticket Act and Government Railways Act o A safe, economic, efficient transportation network was necessary to meet the needs of Canadian business and travellers - Pricing regulations were eliminated and entrance into scheduled airline was opened to all Canadian airlines - Smaller airlines attempting to compete with larger ones failed and many airlines merged to prevent leaving the business - Hub and Spoke system emerged after deregulation – larger aircrafts carry passengers between major cities and smaller planes, which are more cost-efficient transfer them to smaller planes - After September 11, 2001, airlines suffered extreme financial losses and in 2003, Air Canada was forced to file for bankruptcy protection - 5 major issues that face airlines today are: o Airlines are being taxed by governments; taxes often add as much as 50% to the cost of the ticket o Politicians and airline executives need to rethink the way airlines are structured and operate o Resources must be provided to allow the antiquated air traffic management systems around the world to move a satellite-based system o Current soaring fuel prices leave little prospect of making a profit this year o Bankruptcy of one major airline has a direct impact on feeder airlines who depend on the transfer of passengers from the majors - Transport Canada: federal department that is responsible for Canada’s transportation systems o Sets rules and regulations for licensing pilots, flight engineers, and airplane mechanics o Program concerned for passenger safety - Schedule air carriers: operate with published timetables on defined domestic or international routes for which licences have been granted by the government or governments (ex. Air Canada and WestJet) - Charter: arrange to fly wherever and whenever a group plans to travel o Group of travellers may charter any form of transportation, usually at lower rates o More flexibility than scheduled flights and cancel if necessary - Airports have 2 major categories: air carrier airports and general aviation airports - Airport Components o Passenger terminals, parking lots, control towers, hangars, runways, taxiways, loading aprons, chapels, customs and immigration facilities, restaurants and bars, lounges for first class, souvenir shops, car rental agencies, banks or money exchange services, administration offices, etc. o Common-Use Self-Serve (CUSS) allow passengers to check themselves in no matter which airline they use - Landing fee: fee charged to an aircraft each time it lands at an airport - Gateway airport: an airport that receives a high volume of international flights - E-ticket: ticket-less travel where code is your check-in document - Bumped: term used for when flight is oversold and confirmed passengers are denied border - Round trip: trip that originates in one city, and returns them using the same airline - Circle trip: rout taken to the destination differs from rout taken - Open-jaw trip: trip that takes passengers to one destination, allows them to use another mode of travel to a second destination, and flies them home from there - Non-stop flight: flight that travels from one destination to another without stop - Direct flight: a flight that travels from one destination to another, making at least one stop, then continuing on the same plane - Online connection: a flight that requires travellers to change aircraft to get to their destination - Interline connection: a flight that requires travellers to change airlines to get to their destination - Airfares: set according to business travellers and discretionary travellers - Load factor: average percentage of seats filled by paying (revenue-producing) passengers o Revenue is maximized by pricing some seats at a lower rate to encourage additional passenger travel - Bilateral agreements: international agreements made between two countries o Agreements must cover the number of flights permitted from each country into a specific airport, size and capacity of airplanes, and special fares o Open Skies Agreement: between Canada and USA  Allows Air Canada to serve many US destinations and US airlines to provide some cross-border competition for Air Canada - To ensure right of safe flight, nations of the world set rules TRAVEL BY LAND th - Car rental traced back to early 20 century o Not everyone can afford cards but didn’t see boom till jet travel began o Combining car rental with another mode of transportation provides leisure traveller with more freedom to get around at the destination o Additional charges put onto car rentals (Ex. Lost key charges, insurance, gas, drop-off) - Rail travel often chosen method of transportation o Upper and Lower Canada were connected by train by 1856 o Trains linked Canadian provinces as well as the United States o By 1923, smaller railroads were financially unable to continue operations and united with Canadian National Railways (government owned) to compete with Canadian Pacific Railway o By 1976, Canada merged passenger services of Canadian National Railways and Canadian Pacific Railway to become VIA Rail Canada - Decline in rail travel due to automobiles allowing more freedom to choose times and places for travel – so need for train travel lowered - Bus services are the least expensive mode of travel (Except for personal cars) o Motor coach travel is good for small towns that do not have infrastructure to handle rail and air o Chartered services secures the services of the bus at a reduced price  Group members form through the common interest of travelling to a destination at a reduced cost o Bus tour has specific components:  Transportation, accommodations, attractions, sightseeing, meals  The factors determine the price and grade of the tour  Graded as: Budget, first class, deluxe - Bus tours categorized as: o Sightseeing/day tours: may be limited to an urban area - or to a special event or festival o Overnight/short tours: will include accommodations provide a restful drive to and from the destination o Longer tours (motor coach package): varies from 3-30 days and a tour director accompanies the group to ensure all goes well  Include several major city destinations and include off-track local sites o Fly/coach: combine airfare with an escorted bus tour  Essential when visitor is travelling a long distance TRAVEL BY WATER - Sea Cruises: range from one-day “see nothing” trips to three-month around-the-world trips o Typical sea cruise is 307 days with stops at various ports o Cruise lines market their product with themes and special interest cruises o Special interest cruises have 6 categories:  Recreation (sports, bridge, backgammon)  Culture (opera, theatre, music)  Education (conferencing, history, religion, wildlife, financial planning)  Health (diet and exercise)  Hobbies (stamp collecting, gourmet cuisine, murder mystery)  Adventures (a trip up the Amazon, to the Galapagos, to Alaska) o Repositioning Cruise: as weather grows colder in northern destinations, the ships relocate and change their home ports and destinations o Most important factor is level of satisfaction cruisers have with the product o Top 5 reasons a person decides on a cruise over any other type of vacation:  The destinations visited (no packing & unpacking)  All-inclusive price and service levels  Best opportunity to relax and unwind  Convenience of booking (one-stop shopping) and having all activities so close  Sightseeing and activities off ship - River Cruises: can be short or long and lasts up to 12 days. o Many river boats are used for company retreats, wedding receptions, and other group parties - Lake Cruises and Ferries Lake Cruises: common in some of the Great Lakes o Combined as ferry and cruise o Ship travels to destination across the lake then turns around for the return trip o Goes to areas where plane and automobile service is expensive or non-existent - Charter Yachts, Sailboats, and House boats: can be arranged for a few hours or an entire vacation o Houseboats provide family-style living on the water TRAVEL AT DESTINATION - Public Transportation: o Travellers need to understand how an individual public transportation system works o Airports offer limousines, buses, and taxis as options for the traveller o Information about the public transportation system is available from many sources o Public transportation is usually the least expensive way to move around a town and provides the tourist with a bit of local colour Lecture Four (Jan 30) - Across Canada, there is an average of 6.6% for transportation out of all tourism firms - About 1/3 of transportation is purchased by tourists and creates lots of jobs - Higher number of people working in tourism and these people are all out of school with some sort of post-secondary degree - Railroads developed to promote national unity and to keep the west from separating to the US o Given size of country, Canadian leaders wanted to keep the west and promised to build a railroad to bring them to the east - Tourism part of railroad development strategy led to creation of National Parks and numerous railroad hotels were built (CP hotels and resorts now Fairmont Hotels and Resorts) o Trains stopped periodically across the country and hotels were built near the railroad so people could stay there instead of sleeping in the train o As scouts were looking to see where to build the train, they came across Banff o Railroads gave land to federal government for preservation and helped develop tourism in Canada - Federal government awarded monopolies or created oligopolies for railroads then airlines o Protected firms from competition and government subsidies kept firm solvent - Trans-Canada Highway began in 1910 o Federal and provincial governments et together to provide something good for the people of the country o 1925 was first schedule passenger service on Canadian Transcontinental Airway o Trans-Canada Airlines first flight from Vancouver to Seattle in 1937 o 1967 was National Transportation Act (NTA) – public convenience and necessity; was Montreal’s world fair o 1987 NTA was revised – fit, willing, and able; if wanted to start an airline, needed to prove that they would meet public convenience  Air Canada had restricted competition but then regulations were loosened and words were revised  Needed to be fit to run an airline, had insurances and were safe  Government couldn’t determine who would succeed anymore - Deregulation eased entry for new carries as long as they had insurance, certified aircraft and pilots and 75% Canadian ownership o Many of the discount carriers such as WestJet and Porter came out o Yield management allowed them to change prices to meet demand so now there’s about 25 price changes a day - Characteristics of Canadian Air Travel o Air travel in Canada is highly seasonal and sensitive to economy  In December – March, people tend to go to warmer destinations and in the summer, people come in o Airlines have fixed operating costs – cost of fuel and wages o Operating costs are determined by: size & age of aircraft, flight distances, cost of fuel, ticking cost, labour, landing fees)  Airports need to make money so they charge landing fees - Deregulation in air travel led to hub-and-spoke networks o Hub and spoke declining due to rise of smaller regional carriers such as Porter o Air Canada pulling out of some communities opened opportunities for low-cost carriers so that there were lower prices and more choices of airlines o More choices of airlines allowed them to encourage more efficient decisions - Deregulation was a success CONTRARY TO THE TEXTBOOK o Delivered a decline in service and little willingness to pay for service o People are willing to have trade offs and are willing to accept lower fares even if the schedules aren’t as frequent o There was no promise that airlines wouldn’t fail and now yield management is permitted with 2500 fare changes a day in Canada - Large commercial airports were privatized - AIFs are additional costs and that way it ensures the airport is making money because the government doesn’t support them - There are 8 freedoms of the air o Nations closely guard air space and access o Restricts competition and customer choice, and raise prices - VIA Rail is government-mandated merger of CN and CP passenger service in 1976 o They own rolling stock but no rail lines and focuses on longer haul runs o Passengers are less valuable to the railroad compared to ore and wheat and have a right of way over passengers - Tourist-Oriented Directional Signs (TODS): private US-based companies famous for their blue signs along the 400 series highways o Focus is on tourism attractions – better signage would promote better tourism o Businesses buy signs and pay for maintenance through the government - TODS Fees o Application fee: one-time non-refundable fee at time of submission of application o Sign fee: one-time fee payable at time when sign locations and types are approved; amount depends on number and type of signs o Annual Renewal fee - TODS Criteria o Needs to be open at least 12 weeks/year to general public with exceptions like Oktoberfest o Open at least 5 days a week at set times o Has reception structure: control gate, staffed reception, permanent interpretive panels o Advertises with Ontario Tourism Marketing Partnership or at OTMP’s visitor centers o Be within 40 km of sign and receive at least 30,000 visitors/ year – NEED TO DOCUMENT NUMBER OF VISITORS - Consumers’ perspectives on transportation o They want to move from one place to another without being in pain or in danger o Movement o Pleasure o Optimize multiple desires (ex. Freedom from fatigue, comfort, absence of delays, flexibility, minimize risk) o Choice (ex. Speed vs. scenery) o Old transportation modes become tourist activities (ex. Horse drawn carriages) Chapter Five – Accommodations - Accommodation operates under many of the same principles as hundreds of years ago - Provided lodging and offered other services with the room to enhance the guests’ stays - Accommodations earned $17.9 billion in 2005 and employs over 378 000 people in Canada o Occupancy rate is around 65% with the rate being around $123 per night - Earliest known “hotel” system belonged to Roman Empire o Roman soldiers travelled to provinces to keep peace and order and citizens travelled for business, education, or relaxation o Had different accommodations from simple huts to elaborate dwellings with different amenities o Hospitium = full service inn; caupona = budget inn - Religion was cornerstone of accommodations industry o Religious institutions provided lodging – believed it was their holy duty to offer shelter to weary travellers o In 1282, merchants of Italy formed guild to control licensing of city’s innkeepers and ensured that each inn received its fair share of business o First inn in North American was in Jamestown where inns provided family-style meals, large common room (lobby), a number of private bedrooms, and a stable for horses - Roadside inns began to appear as horse-drawn coaches were more familiar - Technological advancements have great impact on development of hotel industry - Accommodations have evolved based on the needs of the transportation system and the traveller - Owner ≠ Manager - Owners often act as the manager in smaller, independently owned properties - Advantage of individual ownership is that the owner has full control over policies and operating procedures o Disadvantage is that owner assumes full risk for the property - Joint Ventures: one partner supplies the expertise in hotel business and other provides financial investment needed for new property o To compete with large, familiar, franchised or chain properties, the privately owned hotels are affiliated with organizations like AAA or CAA - Referral System: largest hotel chain is a system of independently owned hotels represented by a referral company (ex. Best Western) o Become a member of Best Western for the brand name – travellers look for a brand name facility because they know it’s a quality product o An independent owner has immediate access to a worldwide reservation system and national and global advertising campaigns - Chain Ownership: company operates a number of properties and all report to corporate headquarters o Major management decisions are made at headquarters o Ownership is centralized but hotels in chains have more operational independence than franchises - Franchise: has a franchiser (name brand company) and franchisee (property owner) o Offers advantages of having brand name product, while leaving ownership and most management control in franchisee’s hands o Franchisee agrees to follow ALL franchiser’s management policies o Advantages: 1. Use of a nationally known brand name and known product 2. National and international advertising and reservation system 3. Lower borrowing costs because lending institutions are more willing to lend to a mortgagee affiliated with a nationally recognized franchise organization 4. Professional managerial assistance provided by franchiser 5. Group buying power and central purchasing office that provides supplies at much lower costs (architectural plans, layout, decoration, other critical development components at substantial savings) 6. Employee training available at little or no cost to the franchisee 7. Common décor and familiar atmosphere for travellers o Disadvantages: 1. Initial franchise fees that are generally quite high 2. Franchise fees that usually include a percentage of the revenues 3. Adverse effects when other franchise owners do not live up to customers’ expectations 4. Financial consequences for the franchisee if franchiser becomes financially insolvent or does not provide management assistance required 5. Little or no flexibility for the individual owner regarding policies and procedures that are set by the main office and require strict adherence 6. Clause in the franchise agreement that allows the franchiser to buy back or cancel the franchise if the franchisee doesn’t follow the rules o Franchise advisory councils (FACs): created to have better working relationships between franchisers and franchisees - Management Contract: separates hotel ownership and operation o Made with individual properties or with hotel chains o Owners (investors) contract with a professional management team to operate the property (investment) for a fee or a percentage of gross revenue o Preferred method of management when the owner has limited knowledge of the hospitality business o Disadvantages: poor communication between upper management and lower management - Hotel Real Estate Investment Trusts (REITs): emerged as hotel companies searched for new ways to fund development o Hotel REITs buy hotels and hotel resort properties worldwide then sell shares in their company, trading them on the stock market o Provides hotels with liquidity in the capital marketplace and financial support they need to expand in growing industry - Hotel staff is divided into those who work in front and have direct contact with customers and those who work in the back (administration, sales & marketing, accounting, engineering) - Administration: includes the general manager, assistant manager, and all department heads o General and assistant managers are responsible for overall operation of hotel – assist and direct other managers and keep all departments informed of business of hotel - Sales and Marketing: responsible for sales, advertising, research, and public relations o Sales staff spend most of its time bidding for conventions, corporate meetings, and other multiple reservations o Public relations involves creating a favourable image for the property by cultivating contacts with travel writers and editors or becoming involved as a sponsor with major events o Marketing includes learning about competition, researching customers’ wants and needs, and designing a product and service that meets the needs - Front Office and Guest Services: people who have direct contact with guests o Image, attitude, and professional standards they convey set the tone for the guest’s total experience o Responsibilities include check-in & check-out, providing information, answering telephones, and cashiering o Positions are entry level but guest judges hotel through encounters with these people - Accounting: responsible for tracking all financial information o Control function may be separated from other management functions by having the financial officer report directly to the home office  Decreases possibility of perpetuating ineffective accounting procedures and allows general manager to concentrate on guest relations rather than on financial issues - Food and Beverage (F&B) Department: food is usually owned and operated by hotel but some hotels rent out space to franchised companies with a percentage of gross food and beverage sales going to the hotel o F&B department needs to be aware of hotel reservations in order to forecast food and beverage staff requirements o Open communication with other departments ensures effective cost management, resulting in increased profitability o Chef positions often held by people with culinary talent but no experience in personnel management - Room Service: deliver meals directly to guest rooms o All first-class hotels are expected to provide this service to their guests even if it isn’t profit-making o Room service meals are more expensive than the same meals served in the restaurant to cover additional costs - Banquets and Catering: responsibility of the catering director or banquet manager o Catering can be profitable if well organized - Housekeeping: ensures guests’ comfort by keeping individual rooms and public areas clean and neat - Engineering: also known as maintenance and operations; focuses on physical structure of hotel o All problems with A/C, sound systems, electricity, equipment, and outside maintenance are sent to the engineering department - Security: responsible for protecting guests and property – some hotels require these officer positions to have police training - Two main categories in accommodation industry are hotels and motels - Hotel: has a central lobby and rooms are accessible from the lobby - Location: o Downtown: travellers willing to pay for convenience of being near attractions or place of business o Suburban: may want to live near family or are concerned with the cost and usually drive their own car o Airport: target the air traveller, where stays are short and often overnight o Small Town/Cou
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