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Understanding the Travel and Tourism Sector: A Business Perspective

The world of business is inextricably linked with the realm of travel and tourism. From corporate travel arrangements to the operation of hospitality giants, this sector plays a pivotal role in the global economy.

The travel and tourism industry is not merely about vacations and leisure; it encompasses a diverse array of activities, services, and businesses that fuel economies, create jobs, and shape the way we explore the world.

In this article, we will embark on a journey to understand the intricacies of the travel and tourism sector from a business standpoint. We will explore its significance in the global economy, delve into the core components of the industry, examine the economic impact, and discuss emerging trends and challenges.

Moreover, we will shed light on the business aspects of travel, highlighting the key players, revenue streams, and marketing strategies that drive success.

But why should business professionals, beyond those directly involved in tourism, care about this sector? The answer lies in the fact that travel and tourism intersect with nearly every industry. Whether you're in finance, technology, healthcare, or any other field, understanding how this sector operates can unlock opportunities for growth, collaboration, and innovation.

So, fasten your seatbelts and prepare for a journey through the multifaceted world of travel and tourism, where business meets exploration and economic growth meets wanderlust.

Travel and Tourism

Travel and tourism refer to the activities, services, and industries associated with people traveling to and staying in places outside their usual place of residence for leisure, business, or other purposes.

The Core Components of Travel and Tourism

At its heart, the travel and tourism sector comprises several key components, each playing a unique role in the industry's ecosystem. Understanding these components is crucial for any business professional aiming to navigate this dynamic sector effectively.

Here are the primary elements:

1. Accommodation: Accommodation providers are the backbone of the tourism industry. They include hotels, resorts, vacation rentals, and even unconventional options like Airbnb. These establishments cater to travelers by offering a place to stay, ranging from budget to luxury.

2. Transportation: Travel relies heavily on transportation. This segment encompasses airlines, cruise lines, railways, car rental services, and public transportation systems. Efficient transportation networks are vital for connecting travelers to their destinations.

3. Food and Beverage: Dining experiences are an integral part of any trip. This category includes restaurants, cafes, food trucks, and bars. Culinary tourism, where travelers explore local cuisine, has become a significant trend within this segment.

4. Travel Agencies: Travel agencies and tour operators serve as intermediaries between travelers and service providers. They help plan itineraries, book accommodations, and arrange transportation, making the travel process more convenient.

5. Attractions and Entertainment: Tourist destinations offer various attractions, from historical sites and museums to theme parks and natural wonders. Entertainment options such as theaters and music venues also contribute to the overall travel experience.

6. Travel Technology: In the digital age, technology has transformed the way people plan and experience travel. Online booking platforms, travel apps, and services like TripAdvisor have reshaped the industry's landscape.

7. Tourism Services: This category includes a range of services such as travel insurance, currency exchange, and visa assistance. These services ensure that travelers are prepared for their journeys and can navigate any unforeseen challenges.

8. Destination Management: Local governments and organizations play a pivotal role in managing and promoting tourist destinations. They invest in infrastructure, marketing, and sustainability efforts to attract visitors.

The Economic Impact of Travel and Tourism

From a business perspective, it's essential to grasp the significant economic impact of the travel and tourism sector. This industry is a global economic powerhouse that generates jobs, fosters investment and drives economic growth.

Here are some key statistics to illustrate the significance of travel and tourism :

• Job Creation: Travel and tourism directly support over 330 million jobs worldwide, accounting for 1 in 10 jobs globally.
• Contribution to GDP: In 2022, the travel and tourism sector contributed 7.6% to global GDP, highlighting its substantial economic footprint.
• Investment Magnet: This sector attracts investments in infrastructure, hotels, transportation, and more, further stimulating economic activity.
• Foreign Exchange Earnings: Tourism often serves as a vital source of foreign exchange earnings for many countries, boosting their balance of payments.
• SME Growth: Small and medium-sized enterprises (SMEs) play a significant role in the sector, benefiting from the opportunities created by tourism-related businesses.

The economic interplay between tourism and other industries is intricate.

For instance, the hospitality sector relies on agriculture for food supplies, airlines depend on the aerospace industry for aircraft and tourist destinations often collaborate with local artisans and businesses to promote cultural experiences.

In the business world, recognizing the economic clout of travel and tourism can open doors for collaboration, investment, and innovation. Many companies, even those seemingly unrelated to tourism, can find ways to tap into this lucrative market.

Emerging Trends and Challenges

The travel and tourism sector is continuously evolving, driven by changing consumer preferences, technological advancements, and global events. Business professionals must stay attuned to these trends and challenges to adapt and thrive in this dynamic industry.

Here are some notable developments:

1. Sustainable Tourism: Travelers increasingly prioritize eco-friendly and sustainable practices. Businesses that adopt green initiatives not only reduce their environmental footprint but also attract environmentally conscious travelers.

2. Digital Transformation: The digitalization of travel services has reshaped how consumers plan and book trips. Online platforms, artificial intelligence, and data analytics are instrumental in personalizing travel experiences.

3. Health and Safety: Recent global health crises have heightened travelers' concerns about safety and hygiene. Businesses must implement robust health and safety measures to regain consumer trust.

4. Shifts in Travel Behavior: The pandemic has brought about changes in travel behavior, with a focus on remote and nature-based destinations. Companies need to adapt their offerings to cater to these evolving preferences.

5. Regulatory Challenges: Navigating complex regulations, including visa requirements and health protocols, can be a challenge for travel businesses. Staying informed and compliant is crucial.

6. Geopolitical Factors: Political instability and international relations can significantly impact the tourism industry. Businesses must be prepared to adapt to changing geopolitical landscapes.

The Business of Travel and Tourism

Understanding how businesses operate within this sector is essential for both industry insiders and entrepreneurs looking to tap into this thriving market.

Role of Businesses in the Travel Sector

Businesses play a pivotal role in shaping the travel and tourism landscape. Whether you're a hotel chain, an airline, a tour operator, or a travel agency, your role is multifaceted, encompassing everything from customer service to marketing and sustainability initiatives.

• Customer-Centric Approach : At the heart of every successful travel and tourism business is a deep commitment to customer satisfaction. Travelers today expect exceptional service and unique experiences. From the moment a traveler starts planning their trip to the time they return home, businesses must focus on providing top-notch services, personalized recommendations, and seamless experiences.
• Innovation and Adaptation : The travel industry is highly competitive and constantly evolving. Successful businesses in this sector are those that innovate and adapt to changing trends. This could mean embracing digital technology, offering eco-friendly options, or creating new and exciting travel packages.

Business Models and Revenue Streams

To thrive in the travel and tourism sector, businesses employ various revenue models tailored to their specific niches. Here are a few common business models:

• Hospitality and Accommodation : Hotels, resorts, and vacation rentals rely on room bookings and additional services such as dining, spa treatments, and event hosting to generate revenue.
• Airlines and Transportation : Airlines make money through ticket sales, baggage fees, in-flight services, and partnerships with other travel-related businesses. Transportation services like taxis, trains, and cruise lines have similar revenue structures.
• Tour Operators and Travel Agencies : These businesses profit from organizing and selling travel packages, tours, and experiences. Commissions, booking fees, and tour sales are primary income sources.
• Online Travel Agencies (OTAs) : OTAs like Expedia and Booking.com aggregate information from various travel service providers and earn commissions on bookings made through their platforms.

Customer Experience and Service Excellence

In the digital age, the travel and tourism sector is driven by customer reviews and recommendations. Travelers share their experiences online, influencing the choices of others. Therefore, providing exceptional customer service is paramount. Here are some strategies to achieve service excellence:

• Personalization : Tailor recommendations and services to individual preferences.
• Seamless Booking and Travel : Make the booking process simple and provide support throughout the journey.
• Feedback and Improvement : Collect customer feedback and use it to enhance services continually.
• Crisis Management : Be prepared to handle unexpected situations, such as flight cancellations or health emergencies, with professionalism and empathy.

Marketing and Promotion Strategies

Effective marketing is essential for attracting travelers to your business. Here are some strategies commonly used in the travel and tourism industry:

• Digital Marketing : Utilize online channels such as social media, search engine optimization (SEO), email marketing, and paid advertising to reach a global audience.
• Content Marketing : Create engaging content, including blog posts, videos, and travel guides, to inspire and inform potential travelers.
• Partnerships : Collaborate with influencers, other businesses, and tourism boards to expand your reach and access new markets.
• Sustainability Promotion : Highlight your commitment to sustainable and responsible travel practices, as eco-conscious travelers seek eco-friendly options.

The business of travel and tourism is a multifaceted realm that demands a relentless focus on customer satisfaction, innovation, and responsible practices.

Success in this sector requires a deep understanding of your niche, a commitment to service excellence, and strategic marketing efforts. As the travel industry continues to evolve, businesses that can adapt and offer unique, memorable experiences will undoubtedly thrive in this exciting and ever-changing market.

Key Players in the Travel and Tourism Industry

As we dive deeper into the business of travel and tourism, it's crucial to recognize the key players that shape this industry. These players, ranging from airlines to accommodation providers and travel agencies, contribute to the diverse ecosystem of travel and tourism.

Understanding their roles and significance is essential for anyone interested in this dynamic sector.

Airlines and Aviation

Airlines are the lifelines of global travel. They provide the means for travelers to reach their destinations quickly and efficiently. Here's an overview of their role in the industry:

• Passenger Transportation : Airlines transport millions of passengers daily, connecting cities and countries across the globe. They generate revenue through ticket sales, baggage fees, and in-flight services.
• Cargo Services : Airlines also play a pivotal role in transporting goods and cargo, contributing significantly to international trade and logistics.
• Global Networks : Major airlines operate extensive global networks, allowing travelers to reach virtually any corner of the world.

Hotel Chains and Accommodation Providers

The hospitality sector, including hotels, resorts, and vacation rentals, is another cornerstone of the travel and tourism industry. Here's how they contribute:

• Lodging : These businesses offer lodging options, from budget-friendly to luxury, catering to diverse traveler preferences.
• Dining and Services : Many hotels provide dining options, spa services, event hosting, and recreational facilities, enhancing the guest experience and generating additional revenue.
• Destination Attraction : Iconic hotels and resorts often become attractions in themselves, drawing travelers to specific destinations.

Tour Operators and Travel Agencies

Tour operators and travel agencies specialize in creating and selling travel packages and experiences. Their roles include:

• Curating Experiences : They design itineraries and packages that offer unique and immersive travel experiences, from adventure tours to cultural excursions.
• Booking and Logistics : These businesses handle the logistics of travel, including accommodations, transportation, and activities, streamlining the process for travelers.
• Expertise : Tour operators and travel agencies provide expert guidance, helping travelers navigate complex travel decisions.

Destination Management Companies

Destination management companies (DMCs) focus on specific regions or destinations. Their roles encompass:

• Local Expertise : DMCs have in-depth knowledge of their respective destinations, enabling them to offer specialized services and experiences.
• Customized Services : They work closely with travel planners and agencies to tailor experiences for groups and individuals.
• Sustainability : DMCs often play a vital role in promoting responsible tourism practices within their destinations.

Online Travel Agencies (OTAs)

Online travel agencies have become a dominant force in the industry, leveraging digital platforms to connect travelers with various travel services. Here's what they do:

• Aggregation : OTAs aggregate information from airlines, hotels, and other travel service providers, offering a wide array of choices to travelers.
• Booking Platforms : They provide convenient booking platforms, allowing travelers to book flights, accommodations, and more in one place.
• Reviews and Recommendations : OTAs often feature user reviews and recommendations, influencing traveler decisions.

Understanding the roles of these key players in the travel and tourism industry is essential for anyone considering entering this sector.

Each player contributes uniquely to the travel experience, from transportation to accommodation and beyond. Successful businesses often collaborate with multiple stakeholders to offer comprehensive and memorable travel experiences to their customers.

Travel and Tourism Post-COVID-19

The travel and tourism industry, like many others, faced unprecedented challenges during the COVID-19 pandemic. Lockdowns, travel restrictions, and health concerns brought international travel to a standstill. However, the industry has displayed remarkable resilience and adaptability.

Let's explore how the sector is recovering and adapting in a post-pandemic world.

Impact of the Pandemic on the Industry

• Travel Restrictions : Stringent travel restrictions, including border closures and quarantine requirements, severely impacted international travel. Airlines faced a sharp decline in passenger numbers.
• Hospitality Struggles : Hotels and accommodation providers experienced a dramatic drop in occupancy rates. Many temporarily closed or adapted to offer quarantine and isolation services.
• Cruise Industry Challenges : Cruise lines faced significant setbacks due to onboard outbreaks. The industry had to reimagine health and safety protocols.
• Shift to Domestic Travel : With international travel restrictions, many travelers turned to domestic and regional destinations, boosting local tourism.
• Digital Transformation : The pandemic accelerated the adoption of digital technologies for contactless bookings, health monitoring, and communication.

Recovery and Adaptation Strategies

The travel and tourism industry is rebounding, thanks to a combination of factors:

• Vaccination Campaigns : Widespread vaccination campaigns have increased traveler confidence, making international travel safer.
• Health and Safety Protocols : Airlines, hotels, and other businesses have implemented robust health and safety measures to reassure travelers.
• Flexible Booking Policies : Many travel companies introduced flexible booking and cancellation policies to accommodate changing travel plans.
• Sustainability Focus : There's a growing emphasis on sustainable and responsible tourism, with businesses integrating eco-friendly practices.
• Digitalization : The industry continues to embrace digital technologies, offering contactless experiences and personalized services.
• Collaboration : Stakeholders across the industry are collaborating to rebuild and promote destinations.

Future Outlook and Resilience

The travel and tourism industry is poised for recovery and growth in the coming years. Here's what the future may hold:

• Pent-Up Demand : Many travelers postponed their plans during the pandemic, leading to pent-up demand for leisure and business travel.
• Sustainable Travel : Sustainable and eco-conscious travel is gaining momentum. Travelers are increasingly choosing destinations and businesses committed to environmental responsibility.
• Tech Integration : Technology will continue to play a significant role, with advancements in AI, mobile apps, and data analytics enhancing the travel experience.
• Health and Safety : Health and safety measures will remain a priority, with businesses maintaining rigorous protocols.
• Remote Work and Travel : Remote work trends may encourage a blend of work and leisure travel, with more extended stays in diverse locations.
• Resilience Planning : The industry is developing resilience plans to better handle future crises and disruptions.

The travel and tourism industry's ability to adapt and innovate in the face of adversity demonstrates its resilience. As it recovers and evolves, it offers promising opportunities for businesses and travelers alike.

The key to success lies in embracing change, prioritizing safety, and delivering exceptional experiences that meet the evolving needs of travelers in a changing world.

Sustainable Tourism and Responsible Business Practices

In a world increasingly concerned about the environment and social responsibility, the travel and tourism industry is under scrutiny to adopt more sustainable and responsible practices.

Let's delve into the importance of sustainable tourism and how businesses can contribute to a greener and more ethical travel sector.

Environmental and Social Responsibility

• Reducing Carbon Footprint : The travel industry is a significant contributor to greenhouse gas emissions. Airlines, for example, are exploring biofuels and more fuel-efficient aircraft to reduce their carbon footprint.
• Preserving Natural Resources : Eco-conscious travelers seek destinations that protect and preserve natural resources. Businesses can contribute by implementing eco-friendly initiatives like energy-efficient facilities and waste reduction programs.
• Conservation Efforts : Supporting local conservation projects and wildlife protection initiatives can be a part of responsible tourism. This can involve financial contributions or active participation.
• Respecting Local Cultures : Responsible tourism respects and celebrates local cultures and traditions. It involves engaging with local communities in a respectful and sustainable manner.
• Community Involvement : Businesses can support the communities they operate in through job creation, fair wages, and community development projects.

Sustainable Tourism Certifications and Initiatives

• Eco-Certifications : Numerous certifications, such as EarthCheck and Green Key , help businesses showcase their commitment to sustainability. These certifications often involve rigorous audits of a company's environmental practices.
• Zero-Waste Initiatives : Some hotels and resorts aim to become zero-waste establishments, recycling and repurposing nearly all their waste.
• Wildlife Conservation : Tour operators and businesses can partner with wildlife conservation organizations to promote ethical wildlife experiences.
• Local Sourcing : Restaurants and hotels can prioritize local sourcing of food and materials, reducing transportation-related carbon emissions.
• Plastic Reduction : Many businesses are eliminating single-use plastics and opting for sustainable alternatives.

Benefits of Responsible Tourism for Businesses

• Competitive Advantage : Travelers increasingly seek sustainable and responsible options. Businesses that embrace these practices gain a competitive edge.
• Cost Savings : Sustainable practices often lead to cost savings through reduced energy and resource consumption.
• Enhanced Reputation : Businesses committed to responsible tourism build a positive reputation and attract like-minded customers.
• Legal Compliance : Adhering to eco-friendly and ethical standards ensures compliance with evolving environmental and social regulations.
• Long-Term Viability : By protecting the environment and supporting local communities, businesses contribute to the long-term viability of their destinations.
• Guest Satisfaction : Eco-conscious travelers appreciate businesses that share their values, leading to higher guest satisfaction and loyalty.

The travel and tourism sector's future hinges on sustainable and responsible practices. Businesses that prioritize environmental and social responsibility not only contribute to a healthier planet but also position themselves for long-term success in an industry undergoing profound changes.

As a business professional, understanding and adopting these practices can be a strategic advantage in a world where ethical considerations increasingly influence consumer choices.

Hostile Takeovers

In a hostile takeover, the acquiring company pursues the target company despite the target's resistance. Hostile takeovers often involve aggressive tactics, such as tender offers directly to shareholders or attempts to replace the target's board of directors.

Case Studies: Successful Businesses in Travel and Tourism

To gain deeper insights into the strategies and approaches that have propelled certain businesses to success in the travel and tourism sector, let's examine a few notable case studies.

These examples showcase how innovation, adaptability, and a customer-centric approach can make a significant impact in this dynamic industry.

Airbnb: Revolutionizing Accommodation

Airbnb, founded in 2008, has transformed the hospitality sector. This online marketplace connects travelers with unique accommodations offered by hosts worldwide. What sets Airbnb apart?

Key Success Factors:

• Platform Model : Airbnb operates as a platform, allowing hosts to list their properties and travelers to book them. This asset-light model means Airbnb doesn't own properties, reducing capital requirements.
• User Reviews : User-generated reviews and ratings build trust among users. Travelers can make informed choices based on the experiences of previous guests.
• Personalization : Airbnb's recommendation engine suggests accommodations based on user preferences, enhancing the customer experience.
• Diverse Offerings : From treehouses to castles, Airbnb offers a wide range of unique accommodations, appealing to travelers seeking authentic experiences.
• Host Community : Airbnb invests in building a strong host community, providing support and resources to hosts.

Cross-Border Mergers and Acquisitions: Global Expansion

Cross-border M&A transactions involve companies from different countries coming together. These deals offer opportunities for global expansion but also present unique challenges.

Booking.com: Data-Driven Booking

Booking.com, founded in 1996, is a global online travel agency. It leverages technology and data to simplify travel booking.

• Vast Inventory : Booking.com offers a wide range of accommodation options, from hotels to vacation rentals. This extensive inventory caters to diverse traveler preferences.
• User Experience : The platform's user-friendly interface and transparent booking process contribute to its popularity.
• Data Analytics : Booking.com uses data analytics to understand traveler behavior, enabling personalized recommendations and pricing strategies.
• Global Reach : With a presence in over 220 countries and territories, Booking.com serves a global audience.
• Instant Confirmation : Providing real-time booking confirmation enhances the customer experience.

Delta Air Lines: Customer-Centric Air Travel

Delta Air Lines, a major U.S. carrier founded in 1924, is known for its customer-centric approach.

• Reliability : Delta prioritizes operational reliability, minimizing flight cancellations and delays.
• Fleet Upgrades : Investing in a modern and efficient fleet enhances the passenger experience and reduces operating costs.
• Customer Service : Delta emphasizes excellent customer service, and its efforts are reflected in high customer satisfaction ratings.
• Global Alliances : Participation in global airline alliances expands route networks and offers travelers more choices.
• Innovation : Delta embraces innovation, introducing features like biometric boarding and in-flight entertainment options.

These case studies highlight the diverse strategies and approaches that have driven success in the travel and tourism sector. From disruptive online marketplaces to data-driven booking platforms and customer-centric airlines, businesses that prioritize innovation, customer experience, and adaptability are well-positioned for growth.

By studying these examples, business professionals can gain valuable insights into the industry's evolving landscape and identify opportunities to innovate and excel in their own travel and tourism endeavors.

Lessons Learned from Industry Leaders

The travel and tourism sector offers a treasure trove of lessons for business professionals across various industries. Let's distill some key takeaways from the successes and innovations of industry leaders:

1. Customer-Centricity Is Paramount

Whether you're running an airline, hotel, or travel agency, prioritizing the customer experience is non-negotiable. Happy and satisfied customers become loyal patrons and brand advocates. Invest in personalized services, efficient booking processes, and responsive customer support.

2. Embrace Technology and Data

Technology is a game-changer in the travel industry. From data analytics that inform pricing strategies to mobile apps that enhance on-the-go experiences, leveraging technology can set your business apart. Be open to adopting new tools and systems that improve efficiency and customer satisfaction.

3. Diversity and Choice Matter

Offering a diverse range of products or services can attract a broader audience. In the travel sector, this means providing various accommodation types, transportation options, and tour packages. Embrace diversity to meet the unique preferences of your customers.

4. Transparency Builds Trust

Transparency in pricing, policies, and terms and conditions builds trust with customers. Hidden fees and ambiguous policies can lead to dissatisfaction. Clear communication and honesty go a long way in establishing credibility.

5. Sustainability Is the Future

Sustainability and responsible tourism are becoming central to the industry's ethos. Travelers are increasingly conscious of their environmental impact. Consider eco-friendly practices and promote responsible tourism. It's not only good for the planet but also a selling point for your business.

6. Innovate or Stagnate

Innovation is the lifeblood of the travel and tourism sector. Whether it's introducing new services, improving efficiency, or enhancing the customer journey, staying ahead requires a commitment to innovation. Monitor industry trends and be open to creative solutions.

7. Globalization Expands Reach

Participating in global networks and alliances can expand your business's reach. Collaborate with international partners to offer customers a wider range of options. Globalization also provides resilience in the face of economic fluctuations.

8. Resilience Is Crucial

The industry has weathered numerous storms, from economic crises to health emergencies. Building resilience into your business plans, such as having contingency measures for crises, is essential. Flexibility and adaptability are key.

9. Community and Culture Matter

Embrace the culture and communities where your business operates. Engage with local communities, respect their traditions, and contribute positively. This fosters goodwill and can lead to meaningful partnerships.

10. Continuous Learning Is a Competitive Advantage

The travel and tourism sector is ever-evolving. Continuous learning and staying informed about industry trends and regulations are essential. Attend conferences, workshops, and industry events to network and gain insights.

Incorporating these lessons into your business strategy can set you on a path to success in the dynamic and rewarding world of travel and tourism. By combining innovation, customer focus, and a commitment to sustainability, you can thrive in an industry that promises new horizons and unforgettable experiences for travelers worldwide.

The travel and tourism sector represents a dynamic and resilient industry with a significant impact on the global economy. As a business professional, understanding the nuances and opportunities within this sector is paramount. In this comprehensive guide, we've explored the multifaceted world of travel and tourism, delving into its significance, components, trends, and challenges.

We've seen how the industry intersects with business, offering a wide array of opportunities for entrepreneurs and established enterprises alike. Whether you're considering venturing into travel-related ventures or seeking to enhance an existing business through tourism, the sector holds immense potential.

Key takeaways from this exploration include:

• The Economic Powerhouse : Travel and tourism contribute significantly to GDP, job creation, and foreign exchange earnings in many countries. This sector's resilience is evident through its ability to rebound from crises.
• Diverse Components : The industry encompasses hospitality, transportation, attractions, travel services, and more, creating a rich tapestry of business opportunities.
• Trends and Challenges : Emerging trends like sustainable tourism and digital transformation offer avenues for innovation. Yet, challenges such as health concerns and environmental responsibility must be addressed.
• The Business of Tourism : Customer-centricity, technology adoption, transparency, and sustainability are vital principles for success in this sector.
• Key Players : Airlines, hotel chains, tour operators, and online travel agencies are among the key players shaping the industry's landscape.
• Post-COVID-19 Era : The pandemic prompted significant shifts in travel behavior. Recovery strategies and adaptability are critical for businesses in the post-COVID-19 world.
• Sustainable Tourism : Responsible practices not only benefit the environment but also appeal to conscious travelers and can drive business success.
• Lessons from Industry Leaders : Customer-centricity, innovation, transparency, and resilience are valuable takeaways from successful travel and tourism businesses.

As the world evolves, so do the travel and tourism opportunities. By staying informed, embracing innovation, and aligning with sustainability, you can position your business for success in an industry that promises both profitability and the chance to create unforgettable experiences for travelers around the globe.

Now, armed with insights from this guide, you're better equipped to navigate the exciting and ever-changing world of travel and tourism, contributing to its growth and shaping its future. Bon voyage!

• United Nations World Tourism Organization (UNWTO). (2022). Tourism Highlights 2022 Edition. Link
• World Travel & Tourism Council (WTTC). (2022). Economic Impact Reports. Link
• International Air Transport Association (IATA). (2022). IATA Economics. Link
• Deloitte. (2022). Travel, Hospitality, and Leisure Reports. Link
• Statista. (2022). Statistics and Market Data on Travel and Tourism. Link
• McKinsey & Company. (2022). Travel, Logistics & Transport Infrastructure. Link
• Booking.com. (2023). Link
• TripAdvisor. (2023). GreenLeaders. Link
• The New York Times. (2023). Travel and Tourism. Link
• National Geographic. (2023). Sustainable Travel. Link
• The World Bank. (2023). Tourism. Link
• World Tourism Organization (2022). Global Code of Ethics for Tourism. Link

Tumisang Bogwasi

2X Award-Winning Entrepreneur | Empowering Brands to Generate Leads, Grow Revenue with Business Strategy and Digital Marketing | Founder, CEO of Fine Group

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"People want to travel": 4 sector leaders say that tourism will change and grow

The global travel and tourism industry's post-pandemic recovery is gaining pace as the world’s pent-up desire for travel rekindles. Image:  Unsplash/Anete Lūsiņa

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Shinya katanozaka, gilda perez-alvarado, stephen kaufer.

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• In 2020 alone, the travel and tourism industry lost $4.5 trillion in GDP and 62 million jobs - the road to recovery remains long.
• The World Economic Forum’s latest Travel & Tourism Development Index gives expert insights on how the sector will recover and grow.
• We asked four business leaders in the sector to reflect on the state of its recovery, lessons learned from the pandemic, and the conditions that are critical for the future success of travel and tourism businesses and destinations.

The global travel and tourism sector’s post-pandemic recovery is gaining pace as the world’s pent-up desire for travel rekindles. The difference in international tourist arrivals in January 2021 and a similar period in January 2022 was as much as the growth in all of 2021. However, with $4.5 trillion in GDP and 62 million jobs lost in 2020 alone, the road to recovery remains long.

A few factors will greatly determine how the sector performs. These include travel restrictions, vaccination rates and health security, changing market dynamics and consumer preferences, and the ability of businesses and destinations to adapt. At the same time, the sector will need to prepare for future shocks.

The TTDI benchmarks and measures “the set of factors and policies that enable the sustainable and resilient development of the T&T sector, which in turn contributes to the development of a country”. The TTDI is a direct evolution of the long-running Travel and Tourism Competitiveness Index (TTCI), with the change reflecting the index’s increased coverage of T&T development concepts, including sustainability and resilience impact on T&T growth and is designed to highlight the sector’s role in broader economic and social development as well as the need for T&T stakeholder collaboration to mitigate the impact of the pandemic, bolster the recovery and deal with future challenges and risks. Some of the most notable framework and methodology differences between the TTCI and TTDI include the additions of new pillars, including Non-Leisure Resources, Socioeconomic Resilience and Conditions, and T&T Demand Pressure and Impact. Please see the Technical notes and methodology. section to learn more about the index and the differences between the TTCI and TTDI.

The World Economic Forum's latest Travel & Tourism Development Index highlights many of these aspects, including the opportunity and need to rebuild the travel and tourism sector for the better by making it more inclusive, sustainable, and resilient. This will unleash its potential to drive future economic and social progress.

Within this context, we asked four business leaders in the sector to reflect on the state of its recovery, lessons learned from the pandemic, and the conditions that are critical for the future success of travel and tourism businesses and destinations.

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Are you a 'bleisure' traveller, what is a ‘vaccine passport’ and will you need one the next time you travel, a travel boom is looming. but is the industry ready, how to follow davos 2022, “the way we live and work has changed because of the pandemic and the way we travel has changed as well”.

Tony Capuano, CEO, Marriott International

Despite the challenges created by the COVID-19 pandemic, the future looks bright for travel and tourism. Across the globe, people are already getting back on the road. Demand for travel is incredibly resilient and as vaccination rates have risen and restrictions eased, travel has rebounded quickly, often led by leisure.

The way many of us live and work has changed because of the pandemic and the way we travel has changed as well. New categories of travel have emerged. The rise of “bleisure” travel is one example – combining elements of business and leisure travel into a single trip. Newly flexible work arrangements, including the opportunity for many knowledge workers to work remotely, have created opportunities for extended travel, not limited by a Monday to Friday “9 to 5” workweek in the office.

To capitalize on this renewed and growing demand for new travel experiences, industry must join governments and policymakers to ensure that the right conditions are in place to welcome travellers as they prepare to get back on the road again, particularly those who cross international borders. Thus far, much of the recovery has been led by domestic and leisure travel. The incremental recovery of business and international travel, however, will be significant for the broader industry and the millions who make their livelihoods through travel and tourism.

Looking ahead to future challenges to the sector, be they public health conditions, international crises, or climate impacts, global coordination will be the essential component in tackling difficult circumstances head-on. International agreement on common – or at least compatible – standards and decision-making frameworks around global travel is key. Leveraging existing organizations and processes to achieve consensus as challenges emerge will help reduce risk and improve collaboration while keeping borders open.

“The travel and tourism sector will not be able to survive unless it adapts to the virtual market and sustainability conscience travellers”

Shinya Katanozaka, Representative Director, Chairman, ANA Holdings Inc.

At a time when people’s movements are still being restricted by the pandemic, there is a strong, renewed sense that people want to travel and that they want to go places for business and leisure.

In that respect, the biggest change has been in the very concept of “travel.”

A prime example is the rapid expansion of the market for “virtual travel.” This trend has been accelerated not only by advances in digital technologies, but also by the protracted pandemic. The travel and tourism sector will not be able to survive unless it adapts to this new market.

However, this is not as simple as a shift from “real” to “virtual.” Virtual experiences will flow back into a rediscovery of the value of real experiences. And beyond that, to a hunger for real experiences with clearer and more diverse purposes. The hope is that this meeting of virtual and actual will bring balance and synergy the industry.

The pandemic has also seen the emergence of the “sustainability-conscious” traveller, which means that the aviation industry and others are now facing the challenge of adding decarbonization to their value proposition. This trend will force a re-examination of what travel itself should look like and how sustainable practices can be incorporated and communicated. Addressing this challenge will also require stronger collaboration across the entire industry. We believe that this will play an important role in the industry’s revitalization as it recovers from the pandemic.

How is the World Economic Forum promoting sustainable and inclusive mobility systems?

The World Economic Forum’s Platform for Shaping the Future of Mobility works across four industries: aerospace and drones; automotive and new mobility; aviation travel and tourism; and supply chain and transport. It aims to ensure that the future of mobility is safe, clean, and inclusive.

• Through the Clean Skies for Tomorrow Coalition , more than 100 companies are working together to power global aviation with 10% sustainable aviation fuel by 2030.
• In collaboration with UNICEF, the Forum developed a charter with leading shipping, airlines and logistics to support COVAX in delivering more than 1 billion COVID-19 vaccines to vulnerable communities worldwide.
• The Road Freight Zero Project and P4G-Getting to Zero Coalition have led to outcomes demonstrating the rationale, costs and opportunities for accelerating the transition to zero emission freight.
• The Medicine from the Sky initiative is using drones to deliver vaccines and medicine to remote areas in India, completing over 300 successful trials.
• The Forum’s Target True Zero initiative is working to accelerate the deployment and scaling of zero emission aviation, leveraging electric and hydrogen flight technologies.
• In collaboration with the City of Los Angeles, Federal Aviation Administration, and NASA, the Forum developed the Principles of the Urban Sky to help adopt Urban Air Mobility in cities worldwide.
• The Forum led the development of the Space Sustainability Rating to incentivize and promote a more safe and sustainable approach to space mission management and debris mitigation in orbit.
• The Circular Cars Initiative is informing the automotive circularity policy agenda, following the endorsement from European Commission and Zero Emission Vehicle Transition Council countries, and is now invited to support China’s policy roadmap.
• The Moving India network is working with policymakers to advance electric vehicle manufacturing policies, ignite adoption of zero emission road freight vehicles, and finance the transition.
• The Urban Mobility Scorecards initiative – led by the Forum’s Global New Mobility Coalition – is bringing together mobility operators and cities to benchmark the transition to sustainable urban mobility systems.

Contact us for more information on how to get involved.

“The tourism industry must advocate for better protection of small businesses”

Gilda Perez-Alvarado, Global CEO, JLL Hotels & Hospitality

In the next few years, I think sustainability practices will become more prevalent as travellers become both more aware and interested in what countries, destinations and regions are doing in the sustainability space. Both core environmental pieces, such as water and air, and a general approach to sustainability are going to be important.

Additionally, I think conservation becomes more important in terms of how destinations and countries explain what they are doing, as the importance of climate change and natural resources are going to be critical and become top of mind for travellers.

The second part to this is we may see more interest in outdoor events going forward because it creates that sort of natural social distancing, if you will, or that natural safety piece. Doing outdoor activities such as outdoor dining, hiking and festivals may be a more appealing alternative to overcrowded events and spaces.

A lot of lessons were learned over the last few years, but one of the biggest ones was the importance of small business. As an industry, we must protect small business better. We need to have programmes outlined that successfully help small businesses get through challenging times.

Unfortunately, during the pandemic, many small businesses shut down and may never return. Small businesses are important to the travel and tourism sector because they bring uniqueness to destinations. People don’t travel to visit the same places they could visit at home; they prefer unique experiences that are only offered by specific businesses. If you were to remove all the small businesses from a destination, it would be a very different experience.

“Data shows that the majority of travellers want to explore destinations in a more immersive and experiential way”

Steve Kaufer, Co-Founder & CEO, Tripadvisor

We’re on the verge of a travel renaissance. The pandemic might have interrupted the global travel experience, but people are slowly coming out of the bubble. Businesses need to acknowledge the continued desire to feel safe when travelling. A Tripadvisor survey revealed that three-quarters (76%) of travellers will still make destination choices based on low COVID-19 infection rates.

As such, efforts to showcase how businesses care for travellers - be it by deep cleaning their properties or making items like hand sanitizer readily available - need to be ingrained within tourism operations moving forward.

But travel will also evolve in other ways, and as an industry, we need to be prepared to think digitally, and reimagine our use of physical space.

Hotels will become dynamic meeting places for teams to bond in our new hybrid work style. Lodgings near major corporate headquarters will benefit from an influx of bookings from employees convening for longer periods. They will also make way for the “bleisure” traveller who mixes business trips with leisure. Hotels in unique locales will become feasible workspaces. Employers should prepare for their workers to tag on a few extra days to get some rest and relaxation after on-location company gatherings.

Beyond the pandemic, travellers will also want to explore the world differently, see new places and do new things. Our data reveals that the majority want to explore destinations in a more immersive and experiential way, and to feel more connected to the history and culture. While seeing the top of the Empire State building has been a typical excursion for tourists in New York city, visitors will become more drawn to intimate activities like taking a cooking class in Brooklyn with a family of pizza makers who go back generations. This will undoubtedly be a significant area of growth in the travel and tourism industry.

Governments would be smart to plan as well, and to consider an international playbook that helps prepare us for the next public health crisis, inclusive of universal vaccine passports and policies that get us through borders faster.

Understanding these key trends - the ongoing need to feel safe and the growing desire to travel differently - and planning for the next crisis will be essential for governments, destinations, and tourism businesses to succeed in the efforts to keep the world travelling.

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How to Start a Transportation Business: The Ultimate Guide

Nina Godlewski helps make complicated business topics more accessible for small business owners. She covers small business topics such as payroll management and launching a business. She was previously a staff writer at Newsweek covering technology, science, breaking news, and culture. She has also worked as a reporter for Business Insider and The Boston Globe.

Christine Aebischer is an assistant assigning editor on the small-business team at NerdWallet who has covered business and personal finance for nearly a decade. Previously, she was an editor at Fundera, where she developed service-driven content on topics such as business lending, software and insurance. She has also held editing roles at LearnVest, a personal finance startup, and its parent company, Northwestern Mutual. She is based in Santa Monica, California.

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

The transportation business touches far more of our lives than we notice. When you think of transportation businesses, you might think specifically about taxi companies or car rentals, but there are so many other options that you might not be considering. Any time you’ve rented a car, bike, or limousine you’ve interacted with a transportation business. There are also other businesses like shipping, transportation services for seniors, taxi services, and more.

If you’re wondering how to start a transportation business, first consider all of the possibilities. Our guide to starting a transportation business can help you define what a transportation business is and will go over everything you need to start a transportation business of your own. It takes a lot of planning, but you can successfully start a business if you’re ready to dedicate time to it.

How to start a transportation business in 8 steps

A transportation business is basically any business that has a hand in transporting people or goods. It can also have to do with providing transportation for other business owners who need help linking their product to their actual business.

These possibilities lead right into step one of how to start a transportation business: choosing the type of transportation business you want to start.

1. Choose the type of transportation business to start

As we mentioned above there are so many kinds of transportation businesses out there for you to choose from to start. You might consider what vehicles you already have at your disposal or what the market you plan to operate in is currently lacking.

Your options for transportation businesses to start include, but are not limited to:

Taxi company.

Senior transportation.

Limousine rentals.

Car rentals.

Bike rentals.

Moving van rental or moving company.

Medical transportation.

These are the basic types, but there are also emerging markets for things like scooter rentals, along with more traditional ones like school bus companies. You might already have an idea of which type of transportation business you want to start.

If not, though, a key part in your journey to starting a transportation business will be doing some research into which transportation type is most in-demand in your area. You can do this research by conducting a market survey, examining possible competition, or checking in with locals in the area you want to start your transportation business in. This will come in handy when it’s time to write up a business plan for your company.

2. Choose a name and entity for your transportation business

The entity you choose might influence your business name, so you might want to choose the entity first. For a transportation business, some entities might make more sense than others. A limited liability company or a limited liability partnership might be good due to the fact that it would shield the partners from personal liability.

Your options for business entities include:

Sole proprietorship : This is an unincorporated business that is owned by one person or owned by a married couple. This is the most common type of business entity in the United States, but it does leave you open to personal liability when it comes to debts and lawsuits, so it might not be best for a transportation business. If you choose to open your transportation business as a sole proprietorship, then the business will have your name as the business name, unless you file a DBA, or "doing business as."

Limited liability partnership: This partnership is an entity that protects the partners involved from personal liability and the debts and obligations of the business. They’re also shielded from the actions of other partners in the business. Limited liability partnerships differ from a general partnership where the partners manage the business equally and take on those liabilities and obligations equally as well.

Limited liability company: On the other hand, an LLC is a business entity that means owners aren’t personally liable for the business’s debts or obligations. They are a bit more flexible than the LLP option and the LLC can choose to be taxed as a corporation or not.

Once you choose your business entity, you also need to choose a business name when starting a transportation business. If you decide to start your business as a sole proprietorship you may need to get a DBA. This is a name your business uses when it operates under a name other than your own, or the name that the business is legally registered as.

In most states, you can look up businesses that are already in existence there, and see if the name you want for your business is available for you to use. Usually, the Secretary of State’s office will have a registry you can search. You can also check the U.S. Patent and Trademark Office. You’ll want to see if the domain name for your desired business name is also available before finalizing your name.

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

3. Write a business plan

This step involves some of the heaviest legwork and the most research, but it’s how you’ll get a very clear vision of your new business. There’s a lot that goes into writing a business plan, but it will be well worth it once you’ve finished. A lot of the puzzle pieces surrounding how to start a transportation business will come together in this stage. The research you do for your business plan will help you prepare your transportation business for success, plus you can use it later on when you approach banks or investors about possible loans or investments into the business.

You can either come up with your business plan on your own or you can use a business plan template. No matter what you use to make your business plan, make sure it includes:

An overview of the business.

Market analysis.

Pricing plan.

Marketing plan.

Financial plan and projections.

Remember what we said about research? If you’re starting a transportation business, you need to make sure that there’s actually a demand for it before you start operations. If there’s no demand your business will not make it very long.

This research into demand is part of strong market analysis, along with research into what other businesses in the area are doing similar work and providing similar services. Through market analysis, you can identify pain points with competitors or gaps in the market, jumpstarting your success.

4. Register your transportation business and get an EIN

Now that you have the name chosen for your business, you have to register the business with that name so that it’s reserved. This is also when you’ll trademark the name if you need to, which can be done with the United States Patent and Trademark Office.

To register your transportation business, you’ll likely have to visit the website for the Secretary of State’s office in the state you plan to operate your business from. That site should lead you to the business bureau or the business agency in your state, where you’ll find information on the specific paperwork you’ll need to submit to them. While some states allow businesses to register online, not all do, so be sure to check whether your state requires you file paper documents with them.

Some of the documents you’re required to file may vary depending on the business entity you chose. Typically, you’ll need to submit a form for your business entity, pay a fee, and — in some cases — publish a notice in the local paper. You may also have to file paperwork with the town or county you wish to operate out of as well.

You’ll use your newly registered business name to apply for an employer identification number or EIN. This is one of the easier processes you’ll have to go through when starting a transportation business. There are many benefits to getting an EIN, like making it easier to file taxes, identity theft prevention and it can help you establish your business credit.

Applying online for an EIN is quick and simple. Usually, within a few minutes, you can get your EIN right from the IRS free of charge and then use that EIN to register to pay your federal and state taxes.

Start Your Dream Business

5. Get licenses and permits

When starting a transportation business, there are bound to be more business licenses and permits required than if you were opening something like a boutique or a coffee shop. When you open a transportation business you’re taking on responsibility for people or for the items you're transporting and the regulations around that can be more in-depth than they are for other things.

The SBA has a list of the issuing agencies for certain businesses that transport things via plane, ocean and more. For state licenses and permits, you have to check with your specific state and municipality. The registration requirements are highly dependent on the county your business will be operating in and its activities, according to the SBA.

For example, if you’ll be driving tractor trailers or other large vehicles, you’ll need a commercial driver’s license, as will any drivers you employee who will drive such vehicles, along with a commercial vehicle registration. These must be obtained through your home state. But there might be unforeseen registrations. The Department of Revenue in Kansas, for instance, has their own resource page for trucking companies , where they discuss requirements like a liquid-fuel carrier’s license, the International Fuel Tax Agreement and trip permits.

You might want to consult a lawyer in your specific industry to make sure you’re following all rules and regulations, that you’re completing the proper registrations, and that you’re getting the right licenses. They vary by state and by specific industry, so you want to be sure you’ve covered all your bases.

6. Open a business checking account and get a business credit card

A business checking account and a business credit card are the next step when it comes to how to start a transportation business. You want to have both of these things to help keep your business’s cash and credit completely separate from your personal finances.

Getting a business credit card can also act as a form of funding early on if you’re having a hard time getting a loan. Paying off your credit card on time — or early if you’re able to — can help boost your business credit and make you a better candidate for a loan when the time comes. Sometimes they even come with perks that can help your business. For example, there are some business credit cards, known as fuel cards, that are especially useful for truckers.

Having a business checking account as well can help you keep your finances separate and help you establish your credit further. Keeping your business money in and out of one account, that isn’t linked with your personal account, can be very helpful when it comes to things like filing taxes, applying for loans, or figuring out your monthly overhead, costs, and revenue.

The best checking account for your business will vary depending on your specific business needs and the type of transportation business you’re starting. For example, the best banks for truckers, who need a lot of flexibility, won’t necessarily be the best bank for a school bus operation that stays relatively local.

Some accounts, like the Chase business checking accounts, offer you a bonus when you sign up, and the ability to waive the monthly service fee. Other banks offer a high number of transactions per month if your business has a high volume of transactions or offer integrations with accounting software. Choosing the right one comes down to what your business needs and what type and how many transactions you’re processing.

7. Get any funding you need

Starting a transportation business isn’t a cheap venture. You’ll likely need to be investing in equipment, aka vehicles, for the business which can cost a lot up front, even if you decide to rent. These costs are inevitable and you’ll have to spend some money to start making money.

So you’ll probably be needing some financing as well. There are plenty of financing options luckily. As a small business that’s new, you might have a hard time finding lenders but that doesn’t mean you shouldn’t try.

There are grants, loans, funding and more available as startup funding to new business owners. You might even decide that your new business credit card can help you get started depending on your credit limit. Your other options for startup business loans include SBA microloans, small-business grants , family and friends, personal loans and crowdfunding.

8. Hire any employees you need

You’re probably going to need employees if you’re planning on transporting anything on any sort of scale other than small one-time trips that you can handle yourself. If so, you’ll have to find those employees and make sure they’re the right fit for your new business.

Some signs that it’s the right time to hire your first employee include having to turn down work because you can’t do it all on your own, never being able to take a break, and needing someone with skills that you don’t already have.

Once you know you definitely need to hire an employee, make sure you’ve got an EIN and your taxes are in order. Then you can move on to the part of hiring your first employee that involves writing the job description and interviewing and hiring candidates.

You should make sure your candidates have the training and the licenses they need to work for your business. You might also want to check their references to make sure they’re reliable and good employees and will be a valuable addition to your new business.

Don’t rush into hiring. If you don’t need any employees, don’t hire just because you think your business should be more than one person. You’ll be able to tell when the time is right and should take some time to vet candidates and make sure they have the correct skills before offering them a position.

Keep in mind that when you hire someone, you’ll also have to provide benefits, deal with payroll taxes, adjust your budget to reflect salaries and more.

On a similar note...

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Travel and Tourism: What Businesses Need to Know Now

The pandemic has had a significant impact on both business travel and leisure travel. Here’s what businesses need to know about travel beyond COVID-19.

September 13, 2021

Key Takeaways

• Business and leisure travelers are indicating a willingness to begin traveling again.
• The delta variant has slowed growth and created uncertainty around when travel and tourism will return to pre-pandemic levels.
• Businesses must adjust to the 'new normal' of travel to stay competitive and better serve their employees and customers.

COVID-19 hit the travel industry hard. Business travel, one of the industry’s primary sources of revenue, came to an abrupt halt. On the leisure travel side, vacations and special events were put on hold, damaging the tourism sector as well.

While the travel and tourism industries are slowly starting to recover, the emergence of the Delta variant has slowed growth and created uncertainty around when business and leisure travel will return to pre-pandemic levels. Here’s what businesses need to know to make informed decisions about traveling for their employees and customers amid this changing landscape.

Business travel during COVID-19

After a challenging year and a half, there is cause for optimism in the business travel industry, with companies indicating a willingness to return their employees to the road—or air as the case may be. According to a recent report from The Global Business Travel Association (GBTA), over half of travel buyers and procurement professionals reported that their company’s travel spending increased “somewhat” to “a lot.” Additionally, participants reported a slight increase from the previous month in restarting domestic and international travel for business.

Despite the relative safety of air travel, companies are still being cautious. The survey found that only 40% of companies planned to restart domestic trips within the next one to three months, while a mere 18% of companies planned to restart international trips. Their caution is owed to concerns over the presence of COVID-19 variants. Among survey participants, 78% were “concerned” or “very concerned” about the effects of the delta variant, as well as the possibility of further variants, on the safety of business travel.

The economic impact of pandemic travel restrictions

Amid the pandemic, both domestic and international destinations have placed varying restrictions on travel. In addition to public health concerns, logistical factors like required COVID-19 testing and quarantine periods have significantly reduced where and how often people are traveling. Moreover, many airports and other transportation hubs have been operating with fewer staff, limiting both the efficiency of traveling and options for doing so. The reduction in both business travel and leisure travel cost the airline industry more than $100 billion in lost revenue in 2020, and estimates project a further loss of nearly $50 billion this year.

The loss in air travel has also negatively impacted the tourism sector. Reduced demand for travel has similarly reduced demand for hotels, restaurants and food service, local retail, entertainment, and events. In 2020, international tourism and its related sectors saw a loss of $2.4 trillion due to the effects of the pandemic.

Recovery in travel and tourism will largely depend on global vaccine distribution and the suppression of COVID-19 variants. According to the GBTA survey, approximately 1 in 5 participants reported their company required employees to be vaccinated before traveling domestically. With different countries and even states having their own set of restrictions and vaccination status guidelines, organizations may hold off on business travel until these requirements can be streamlined or more easily understood.

The impact of vaccine inequity on the tourism sector

While most developed countries have seen a successful vaccine rollout, many developing nations are still struggling with limited vaccine access and administration. Depending on the country, vaccination rates range from less than 1% to more than 60%.

As developing countries work to mitigate the spread of COVID-19 without the support of widespread vaccines, they continue to experience greater losses in the tourism sector. This is especially critical, as many less-developed countries are heavily reliant on tourism for jobs and economic growth.

Countries with higher vaccination rates, such as the United States and the United Kingdom, have experienced less severe losses in tourism and are likely to have a more swift recovery. Still, the U.S. tourism industry has taken a hit, with many businesses struggling to find enough workers to keep them open during seasonal tourist peaks.

The long-term outlook for travel and tourism

The “new normal” of a post-pandemic world is expected to have long-term impacts on the travel and tourism industries.

With respect to corporate travel, many businesses have capitalized on new technologies to conduct remote meetings and large-scale conferences. With this, the frequency of business travel is likely to decrease, though it is unlikely to be replaced by virtual meetings altogether.

On the leisure travel side, people will likely continue to explore their own backyards more frequently than pre-pandemic. The summer of 2020 saw an uptick in road trips across America, with people choosing destinations within driving distance and further away from crowded metropolitan cities.

Travelers will continue to use touch-free technology

Contactless technology has seen a rise in recent years, but it has become more widespread than ever amid the pandemic. According to a survey by the U.S. Travel Association , 41% of global transactions are currently carried out through contact-free means, and 74% of Americans plan to continue using touch-free tech even post-pandemic. Apps that allow for contactless check-ins, direct payments, and even mobile hotel keys are expected to increase in popularity over the next several years.

As countries look toward fiscal and public health recovery, business travel and leisure travel are also beginning to recover. However, it is unlikely that things will return to the way they were before COVID-19. Rather, businesses must adjust to the “new normal” of travel to stay competitive and best support their employees and customers.

Traveling during COVID-19? Review the latest CDC guidance for domestic travel and international travel .

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How to Develop a Tourism Business

Last Updated: February 16, 2024 Approved

This article was co-authored by Jessica Villegas . Jessica Villegas is a Certified Academic Life Coach and the Founder of Hi-Lite Coaching + Consulting in Winter Garden, Florida. Jessica has over 20 years of leadership experience, and she and her team serve teens and young adults through private coaching, group coaching, workshops, and speaking engagements. She uses workbook exercises, coaching planners, and regular check-ins to support young adults in achieving their academic and personal goals. Jessica received her Bachelor’s in Organizational Communications and Leadership Studies from the University of Central Florida and her Professional Coaching certification through Coach Training EDU, an ICF Accredited Institution, as an Academic Life Coach. wikiHow marks an article as reader-approved once it receives enough positive feedback. This article received 23 testimonials and 100% of readers who voted found it helpful, earning it our reader-approved status. This article has been viewed 356,145 times.

A tourism business is a great way to share your passion with others looking to experience a new location or culture, be it in a business or leisure capacity. To develop a tourism business, you need to first decide on your focus and create a business plan. Afterwards, you can move on to marketing and growing your business.

Selecting Your Businesses Focus

• Don't be afraid to send your customers to other businesses—it shows that you know the area well and are dedicated to ensuring they have the best time possible.
• Use your chosen geographic region to guide your focus. For example, if your location is secluded from the populace and dense with wineries, then guided winery tours, local bed and breakfasts, and airport transportation services are all viable business options.

• Imagine how your hotel would look and how it would stand out.
• Ask local business owners about their experience in the industry to get a feel for their day-to-day activities and how they succeed.

• Book a tour with a local agency and get a feel for what they offer. Take note of their pricing and routes.

• Compare the busiest restaurants to the slowest. Ask yourself what they are doing differently and how they could improve.

• For example, you might find that all hotels offer complimentary breakfast, so be sure to offer this. But if you find that none of them offer complimentary dinner, you can offer this to set yourself apart.
• Pinpoint a tourism sector that is not overly congested, and one that you can contribute something unique to.

• For example, if you want to focus on providing tours, decide on a location that you know well in terms of its history, food, and entertainment. If you think hospitality is your calling, decide on the type of foods and beverages that you want to provide to tourists.
• List the contacts that you have within each niche to get a better idea of which one you have the most connections in.

Setting the Foundation for Your Business

• If you provide tours in natural areas, you will likely need specific permits for each region or park.

• Determine if you must carry disability, unemployment, or other types of insurance for your employees.

• Include an outline of the products and/or services your business will be providing for tourists.
• Provide information about your target market and your competition.
• Describe how you plan on running your business and pricing your product or service

• Employee benefits

• Apply for a small business loan or grant if you find that you're low on funds. Visit Grants.gov ( https://www.grants.gov/ ) for a list of grants available around the world, or visit your bank and inquire about loans.

Marketing Your Tourism Business

• Run local promotions for your peers and their family and friends.

• Take out ad space in newspapers, magazines and lifestyle publications.
• Produce all applicable marketing materials, such as logos, regular newsletters, and business cards.

• Be sure to hire a specialist for search engine optimization (SEO) to maximize your site's online presence.

• Stay connected to local tourism industry councils and relevant media and trade organizations.

Growing Your Business

• Post ads on classified websites. Be sure to indicate the skills and experience you are looking for.
• Select employees that are familiar with your business. Remember that you always want to offer your customers a personalized, engaging experience.
• Plan your staff as far ahead as you possibly can. Be sure to plan extra carefully for busy times of the year.
• To make your business work, you really need to invest in your employees. It starts with the mission, vision, and values of the company and how those are permeated throughout your employees and how you deliver that and how you show up as that.

• Track competitor products, prices, and value regularly.

• Create gift cards, promo codes, and vouchers for your customers.

• Make it your primary goal to deliver on your promises and address every customer issue personally.
• Encourage your customers to leave their feedback on social media services.

• Always tell your customers about other sights in the area and tourism businesses close to yours that they can experience while in the area.
• Tell your customers about package deals, sales, and discounts.
• Send customers a follow-up email to thank them for choosing your business and make them feel welcome to return at any time!

• Plan different packages for different times of the year.
• Consider your audience when creating packages. Offer them things that make the experience more enjoyable and convenient.
• Look at packages from competing businesses and try to offer something that they don't.

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You Might Also Like

• ↑ https://smallbusinessbc.ca/article/strategies-start-grow-tourism-business/
• ↑ https://www.business.qld.gov.au/industries/hospitality-tourism-sport/tourism/starting-up/regulations/licences-permits-legislation
• ↑ https://www.business.qld.gov.au/running-business/employing/taking-on-staff/find/assess
• ↑ https://www.rezdy.com/blog/3-costs-you-need-to-consider-when-pricing-your-tourism-product/
• ↑ https://www.capterra.com/tour-operator-software/
• ↑ https://www.iti.gov.nt.ca/sites/iti/files/ProductPackaging.pdf

About This Article

Developing a tourism business is a great way to make a profit while sharing your love of different cultures with new people. A tourism business is any business that caters to tourists, like hospitality, food, and local tours. You’ll need to choose a lucrative niche with little competition to make sure there's space in the market for your business. Choose a location you know well and an industry you have experience in. Unless you already have funding for your business, you’ll need to secure a small business loan, grant, or private investment. You'll also need to write a business plan to present to investors and help you plan your next steps. For more tips, including how to market your tourism business, read on! Did this summary help you? Yes No

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In the last 20 years, the travel and transportation industry has endured a lot of turbulence – the decline in air travel after 9-11, the 2002 SARS outbreak that crippled Asian tourism, and consumer belt-tightening during the 2008 global financial crisis. Each event had an immediate impact but underlying travel demand was relatively stable.

It is not hyperbolic to say that the travel and tourism industry lost its wings in 2020.  With COVID, business and leisure travel ground to a halt, revenues crashed down 40% from the previous year. Overall, the World Travel & Tourism Council (WTTC) said the industry lost $4.5 trillion in 2020 due to COVID-19. Now, however, with wide-spread vaccination occurring in some parts of the world, the travel industry is returning slowly and companies are considering what comes next.

Chris Rospenda, travel and transportation expert for IBM.

That’s why we sat down with IBM expert, Chris Rospenda. This is part one of that conversation (read part 2 here ). He’s always played with airplanes or trucks, starting his own trucking company when he was just 19 years old. Chris has also worked as an FAA examiner and for systems’ operations for American Airlines, before landing at IBM as Connected Operations, IBM Cloud and Cognitive Applications. For the last eight years, he’s been on the Maximo side working with asset management, performance management and configuration.

Q: Your customers have had a challenging year. How have they handled this; what were the impacts?

They’ve maintained. Many of them have been able to maintain their presence, especially in the first six to eight months of this pandemic when they didn’t know how long it was going to last. You know, the analogy I use is that it’s like six people on a lifeboat with two gallons of water. You’ve got to make everything last as long as you can because you don’t know when you’re going to see land. But they maintained and hunkered down and didn’t spend anything, so now they’re coming out of it, and they’re seeing a little more movement in the economy as more people get vaccinated.

I just saw in USA Today that companies can’t find enough people to hire. We’ve got industrial customers that are saying , I need technicians. I have apprentice positions open . People must have the aptitude for it, clearly, and they have to pass the background and drug tests, but there are positions open and travel and transportation companies want to get back to work.

The other side is that office space has become less and less important while integrated tools have become more important. Tools like IBM Maximo have become more important because people are not at the office pulling out a paper printout of what has been going on. People are in different counties all over the country and they need their own access to information, the latest and greatest information. And Maximo is a great single version of the truth.

Q. What technology have they used to overcome the challenge? You said Maximo is a great single version of the truth and it sounds like your clients are using more of the suite than they were before, is that right?

I’ll put it into the 50/50 bucket: during the first 50% of the pandemic organizations were hunkered down making sure they were using what they had. Now, during the second half, they have options to move forward. They’re not jumping into the water yet, but they’re toeing the water and looking to see, maybe I can do things better because I don’t need everybody in the office because they can look at the same dashboard that I have on my screen.

They realize they can adapt some of the health and predictive technologies that they didn’t use before and provide the same information to one screen, back to that single version of the truth we were talking about earlier.

Q. What’s next for your clients from a technology or business perspective? Can you say some more about both technology and how you think these travel and transportation businesses are going to grow as the economy opens up?

Customers that I’ve talked are saying (on the technology side), I don’t need all these applications on premises unless I’m a bank or financial services company and, even then, I can trust a secure cloud or a hybrid cloud .

I see them doing more without the brick-and-mortar data centers. Ten years ago, we saw a shift where companies began moving away from data centers. That was after the Y2K issue, when they realized the world wasn’t going to melt down. They wondered why they needed to have that much of an investment in a 100,000 square foot warehouse holding nothing but servers that needed to be maintained and replaced every two or three years — that just becomes a feeding frenzy for an IT organization

The business side of companies — the C-suite — are now saying, I think we can get more nimble. If you think of the recession in 2008, the eventual leapfrog out of it was the ability to expand rapidly through somebody else’s infrastructure. I think we’re going to see that again. Companies, in essence, just turn a switch and pay a little more to  get more bits and bytes. With a cloud or hybrid-cloud model they can expand and retract when needed. There are difficulties with this, too, of course — I’m not saying it’s that easy. But it’s a lot easier than trying to get rid of a 100,000 square foot data center.

This is just my humble opinion here, but there are companies that are hungry. And they are looking for that market share, and that market share is coming slowly now. Leisure is going to be the first wave that returns to the travel, transportation and hospitality businesses.

A look at the cruise industry

For instance, the cruise industry is just bursting at the seams and it’s more our own US regulation that is holding that back. I’m not saying that safety is not important — it’s clearly paramount for everything to work. But the cruise industry is trying to get those ships loaded up again, and people are ready enjoy the cruise experience. People are willing to carry vaccine passports, practice social distance protocols on the ships. I believe that in the next six to eight months you’re going to see cruises starting to come back especially in some of the non-U.S. areas like the Southeastern Korea, the Caribbean, the Turks Caicos, Barbados. On the Pacific side, I think there’s going to be a lot of interest in Alaska because it is less populated.

The other part of this equation, though, is mergers and acquisitions. I really think you’re going to see some hungry companies saying, I’ve got this cash that I’ve been holding, I’ve got some federal bailout money. I can spend 40 billion in cash and 20 billion in stock and go after that competitor. I think you’ll see two or three airlines and two or three trucking companies consolidating in the next couple of years because the ones that survived kept their cash. The ones that just maintained are coming along on a shoestring, so I think they’re going to be susceptible to acquisitions and consolidations.

A look at light rail

The other thing I see is that as much as we would like to believe that we could put light rail infrastructure in quickly, in the US we just can’t. Nobody is going to give up five acres of their property to put rail tracks in especially when airfares are not super expensive right now. To go from Reno to LA it is just as easy to jump on an airplane as it is to get on a rail car, build the tracks, and go forward.  They’re learning that in the Northeast. It is very difficult to accomplish.

You might see some light rail infrastructure build out in the Southeast United States –  Raleigh, Charlotte, Greensboro, South Carolina. Some of those are open areas and those economies, those municipalities are booming.  Airbus just spent a lot of money in South Carolina. Boeing has got a big helicopter facility in South Carolina. There’s a new Mercedes-Benz plant in North Carolina. Because of that, you might see some light rail infrastructure going in there because the land is open . I think there are some opportunities there.

Read part two of our conversation with Chris.

More resources for travel and transportation professionals:

• Visit the IBM Maximo Travel and Transportation page to keep everyone and everything moving with industry-specific solutions.
• Explore the IBM Maximo Application Suite and watch a quick demo .
• Learn how to more from reactive to predictive maintenance and improve asset reliability.
• Discover how IBM can help restore traveler trust and increase operational efficiency.
• Explore T&T research insights and reports from the IBM Institute for Business Value.
• Connect with Chris on  LinkedIn .

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Challenges of the global exhibition and trade show industry 2022

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Comparison between digital and live exhibitions by visitors worldwide 2021

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Largest exhibition halls worldwide 2023, by gross hall capacity

Largest exhibition halls worldwide as of December 2023, by gross hall capacity (in 1,000 square meters)

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50 Travel & Tourism Business Ideas

Introduction

Wanderlust! The urge to travel, explore new places, and experience different cultures is deeply rooted in the human spirit.

As the world becomes more interconnected, the travel and tourism industry continues to thrive, presenting numerous opportunities for entrepreneurial minds.

In this blog post, we’ll embark on an exciting journey, exploring 50 creative business ideas that cater to the ever-growing demand for unique and memorable travel experiences.

Accommodation

1. tiny house rentals.

Offer a unique and eco-friendly accommodation experience by renting out tiny houses in scenic locations. Tiny houses are not only charming but also appeal to travelers seeking a minimalist and sustainable lifestyle.

2. Glamping Retreats

Combine the luxury of a hotel with the adventure of camping by setting up glamorous camping sites in picturesque natural settings. Provide luxurious tents, high-end amenities, and personalized services for a one-of-a-kind outdoor experience.

3. Homestay Network

Create a platform that connects travelers with local hosts, allowing them to experience authentic cultural immersion by staying in a family’s home. This concept promotes cultural exchange and provides an affordable alternative to traditional accommodations.

4. Treehouse Resorts

Tap into the childlike wonder of tree-dwelling by constructing eco-friendly treehouse resorts. These unique accommodations offer guests a chance to reconnect with nature while enjoying modern amenities.

5. Houseboat Rentals

Capitalize on the growing trend of water-based accommodations by offering houseboat rentals in scenic waterways or coastal regions. Houseboats provide a unique way to explore destinations while enjoying the comforts of home.

Transportation

6. electric bike tours.

Offer eco-friendly and active tours of cities or natural landscapes using electric bikes. This concept appeals to travelers seeking sustainable and engaging ways to explore their destinations.

7. Luxury Coach Service

Provide a high-end transportation service for travelers seeking comfort and convenience. Offer luxurious coaches with amenities like Wi-Fi, entertainment systems, and gourmet snacks for long-distance travel or city tours.

8. Vintage Car Rentals

Cater to the nostalgia and charm of classic automobiles by offering vintage car rentals. This unique transportation option can be a hit with travelers seeking a retro experience or those attending special events.

9. Private Aviation Services

For affluent travelers, offer private aviation services, such as charter flights, helicopter tours, or private jet rentals, providing a luxurious and convenient way to travel.

10. Campervan Rentals

Capitalize on the growing trend of road trips and van life by offering campervan rentals. These versatile vehicles allow travelers to explore destinations at their own pace while enjoying the freedom and convenience of a mobile home.

Tours and Activities

11. virtual reality tours.

Leverage the power of virtual reality (VR) technology to offer immersive tours of destinations, historical sites, or even outer space. This innovative concept appeals to tech-savvy travelers and those seeking unique experiences.

12. Food Truck Tours

Combine the love for food and exploration by organizing tours that guide participants through the local food truck scene, sampling diverse culinary offerings along the way.

13. Experiential Workshops

Offer hands-on workshops that teach travelers new skills or crafts, such as pottery, painting, dance, or cooking classes, allowing them to immerse themselves in the local culture while acquiring new knowledge.

14. Adventure Sports Tours

For thrill-seekers, organize tours that incorporate adventure sports like rock climbing, zip-lining, surfing, or skydiving, catering to travelers seeking adrenaline-pumping experiences.

15. Sustainable Ecotours

Promote responsible tourism by offering sustainable eco-tours that educate travelers about conservation efforts and sustainable practices while exploring natural wonders and wildlife habitats.

Food and Beverage

16. pop-up dining experiences.

Create unique and temporary dining experiences by setting up pop-up restaurants in unconventional locations, such as rooftops, abandoned buildings, or scenic outdoor spaces.

17. Craft Brewery Tours

Tap into the growing popularity of craft beer by offering guided tours of local breweries, providing insights into the brewing process and allowing visitors to sample unique flavors.

18. Farm-to-Table Dining

Collaborate with local farmers to create a farm-to-table dining experience, offering fresh, locally sourced ingredients and promoting sustainable food practices.

19. Wine Tasting Tours

Organize tours that take visitors through local wineries, vineyards, and tasting rooms, providing an educational and indulgent experience for wine enthusiasts.

20. Street Food Tours

Guide travelers through the vibrant street food scene of a destination, introducing them to authentic local flavors and culinary traditions while exploring the city’s cultural fabric.

Retail and Souvenirs

21. artisan marketplace.

Curate a physical or online marketplace that showcases unique and handcrafted products from local artisans, providing travelers with authentic souvenirs and supporting local economies.

22. Sustainable Fashion Line

Tap into the growing demand for ethical and sustainable fashion by creating a clothing line using eco-friendly materials and promoting fair labor practices. Offer stylish and responsible travel apparel and accessories.

23. Personalized Photo Books

Offer a service that creates personalized photo books, allowing travelers to capture and preserve their journey’s memories in a beautifully curated keepsake.

24. Local Artisan Workshops

Organize workshops where travelers can learn from local artisans and create their own souvenirs, such as pottery, jewelry, or woodcarving, providing a hands-on experience and a unique keepsake.

25. Virtual Museum Tours

Leverage technology to offer virtual tours of museums, allowing travelers to explore exhibits and collections from anywhere in the world, catering to those seeking cultural experiences without the need for physical travel.

Technology and Apps

26. travel planning app.

Develop a comprehensive travel planning app that assists users in researching destinations, booking accommodations and activities, and creating personalized itineraries based on their preferences and interests.

27. Augmented Reality City Tours

Enhance the traditional city tour experience by incorporating augmented reality (AR) technology, overlaying historical information, interactive visuals, and storytelling elements onto the real-world environment.

28. Language Translation Earbuds

Offer innovative language translation earbuds that provide real-time translation, enabling travelers to communicate effectively and break down language barriers during their journeys.

29. Travel Insurance Comparison Platform

Create a user-friendly platform that compares and recommends the best travel insurance options based on specific trip details, destination, and traveler needs, ensuring peace of mind for adventurers.

30. Contactless Payments for Tourism

Develop a contactless payment solution specifically designed for the tourism industry, allowing travelers to make secure and convenient payments for attractions, tours, and services without the hassle of carrying cash or cards.

Wellness and Relaxation

31. yoga retreats.

Offer immersive yoga retreats in serene locations, combining physical and spiritual practices with healthy cuisine, meditation sessions, and access to natural surroundings for a holistic wellness experience.

32. Digital Detox Getaways

Create a sanctuary for travelers seeking to disconnect from technology and reconnect with themselves by offering digital detox getaways in remote or nature-focused destinations.

33. Spa and Wellness Resorts

Establish luxurious spa and wellness resorts that provide a tranquil escape, offering various treatments, fitness programs, and healthy dining options for travelers seeking rejuvenation and self-care.

34. Mindfulness Retreats

Organize mindfulness retreats that combine meditation, yoga, and other mindfulness practices with scenic locations and expert guidance, catering to travelers seeking inner peace and personal growth.

35. Forest Bathing Experiences

Capitalize on the growing interest in the Japanese practice of “Shinrin-yoku” or forest bathing by offering guided nature walks and immersive experiences that promote relaxation and connection with the natural world.

Sustainable Tourism

36. eco-friendly tour operator.

Establish an eco-friendly tour operator that prioritizes sustainability and minimizes the environmental impact of travel. Offer responsible tours that support local communities and promote conservation efforts.

37. Upcycled Lodging

Create unique accommodations by repurposing and upcycling materials from various sources, such as shipping containers, abandoned buildings, or recycled materials, promoting sustainable and innovative lodging options.

38. Carbon Offset Travel Services

Offer a service that calculates and offsets the carbon footprint of travelers’ trips by investing in verified carbon offset projects, appealing to environmentally conscious consumers.

39. Sustainable Souvenir Marketplace

Establish an online or physical marketplace that curates and sells sustainable souvenirs, locally made products, and ethical handicrafts, promoting responsible consumption and supporting local artisans.

40. Eco-Tourism Consultancy

Provide consulting services to travel companies and destinations, helping them implement sustainable practices, reduce their environmental impact, and promote responsible tourism initiatives.

Niche Experiences

41. pet-friendly travel services.

Cater to pet owners by offering pet-friendly accommodations, activities, and travel services, allowing furry companions to accompany their owners on adventures.

42. Accessible Travel Solutions

Create travel solutions that cater to individuals with disabilities or special needs, offering accessible accommodations, transportation, and tailored experiences that ensure comfort and inclusion.

43. Genealogy Tourism

Tap into the growing interest in ancestry and family history by offering genealogy tourism services, assisting travelers in tracing their roots, visiting ancestral homelands, and connecting with their heritage.

44. Dark Tourism Experiences

For those interested in the macabre and historical tragedies, offer curated tours and experiences focused on dark tourism sites, such as battlefields, cemeteries, and sites of significant historical events.

45. Culinary Immersion Tours

Organize in-depth culinary immersion tours that go beyond traditional food tours, allowing travelers to fully immerse themselves in the local food culture, from farm visits to cooking classes and dining with local families.

46. Literary Tours

Create literary-themed tours that take book lovers on a journey through the settings of famous novels, visiting locations that inspired authors, and exploring the literary heritage of destinations.

47. Spiritual Pilgrimage Tours

Offer guided tours to sacred sites and spiritual destinations, catering to travelers seeking personal growth, spiritual enlightenment, or a deeper connection with their faith or beliefs.

48. Astro-Tourism Experiences

Capitalize on the growing interest in astronomy and stargazing by offering astro-tourism experiences, including dark sky observatories, guided night sky tours, and stargazing retreats in remote locations with minimal light pollution.

49. Adventure Wedding Services

Cater to adventurous couples by offering unique and memorable wedding experiences in stunning outdoor locations, such as beach ceremonies, mountain elopements, or adventurous honeymoon packages.

50. Gaming and Esports Tourism

Tap into the rapidly growing gaming and esports industry by offering tailored travel experiences for gaming enthusiasts, including attending major gaming events, visiting gaming-themed attractions, or participating in gaming-related activities and competitions.

• The travel and tourism industry offers a wealth of opportunities for entrepreneurs to tap into unique niches and cater to diverse traveler interests.
• From accommodation options like tiny houses and treehouses to experiential tours and sustainable tourism initiatives, the possibilities are endless.
• Technology plays a crucial role, enabling virtual reality tours, augmented reality city experiences, and innovative travel planning apps.
• Wellness and relaxation-focused offerings, such as yoga retreats and mindfulness getaways, cater to travelers seeking rejuvenation and self-care.
• Niche experiences like pet-friendly travel, accessible tourism, and dark tourism experiences cater to specialized interests and needs.
• Sustainable and eco-friendly practices are becoming increasingly important, with opportunities in eco-tourism consultancy, upcycled lodging, and carbon-offset travel services.

Q: What are some unique accommodation ideas for travelers? A: Tiny house rentals, glamping retreats, treehouse resorts, and houseboat rentals offer unique and memorable accommodation experiences for travelers seeking something out of the ordinary.

Q: How can technology enhance the travel experience? A: Technology can enhance the travel experience through virtual reality tours, augmented reality city experiences, language translation earbuds, travel planning apps, and contactless payment solutions for tourism.

Q: What are some sustainable tourism business ideas? A: Sustainable tourism business ideas include eco-friendly tour operators, upcycled lodging, carbon offset travel services, sustainable souvenir marketplaces, and eco-tourism consultancy services.

Q: What are some niche travel experiences that cater to specific interests? A: Niche travel experiences include pet-friendly travel services, accessible tourism solutions, genealogy tourism, dark tourism experiences, culinary immersion tours, literary tours, spiritual pilgrimage tours, astro-tourism experiences, adventure wedding services, and gaming and esports tourism.

Q: How can wellness and relaxation be incorporated into travel business ideas? A: Wellness and relaxation can be incorporated through yoga retreats, digital detox getaways, spa and wellness resorts, mindfulness retreats, and forest bathing experiences, catering to travelers seeking rejuvenation and self-care.

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Priyanka transitioned from being a trendsetting fashionista to an influential business blogger. With an innate passion for style and an astute entrepreneurial mindset, Priyanka carved her own path in the digital landscape, captivating audiences with her unique blend of fashion-forward insights and astute business acumen. Through her posts, she shares her expertise on emerging trends, fashion industry analysis, and valuable advice for aspiring entrepreneurs.

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51 Tourism and Travel Business Ideas to Start in 2024

Home » Blog » 51 Tourism and Travel Business Ideas to Start in 2024

The travel and tourism business provides a wide range of services with the following different ideas to make sure that every traveler finds the right trip.

Most travelers or customers are looking for a beautiful adventure journey to fulfill their achievements. 

So, the travel business spends a lot of effort applying several techniques to build relationships with customers and local communities peoples.

The travel industry wants to become a top expert on changing travel experiences by focusing on smart marketing and customer happiness which help people go on the memorial journey and never forget.

Table of contents

Overview of the travel and tourism industry, 1. adventure tourism company, 2. tour guides business, 3. eco-tourism resort, 4. accommodations and breakfast business, 5. wellness retreat center, 6. cultural immersion tours, 7. vehicles rental business, 8. sustainable travel agency, 9. travel photographs business, 10. wildlife safari, 11. boutique hotel chain, 12. language learning travel program, 13. pet-friendly accommodations, 14. health tourism agency, 15. travel blogging/ vlogging, 16. adventure the sports events, 17. destinations wedding planning, 18. outdoor education programs, 19. cultural exchange programs, 20. digital travel marketplace, 21. historical recreation events, 22. luxury train journeys, 23. sustainable farm stays, 24. adventure training courses, 25. wildlife conservation tours, 26. travel safety consulting, 27. travel technology solutions, 28. virtual reality travel experiences, 29. cultural heritage preservation, 30. family adventure travel, 31. backpacker hostel chain, 32. outdoor adventure gear manufacturing, 33. destination accessibility consulting, 34. sustainable tourism certification, 35. adventure sports instructions.

• 36. Agritourism Experiences 

37. Adventure Travel Media Production

38. travel tech startups, 39. pet transportation services, 40. remote work retreats, 41. art and culture tours, 42. community tourism initiatives, 43. sustainable travel education, 44. water taxi services, 45. glamping resort, 46. sustainable souvenir shop, 47. coffee shop, 48. event planning, 49. translation services, 50. culinary tourism agency, 51. medical tourism, comparison of travel business ideas concepts, identity your passion and expertise, research the market trends, evaluate competitor landscape, assess resource requirements, seek mentorship and advice, the travel and hospitality industry, small tourism business ideas concepts, frequently asked questions.

The travel and tourism industry is very broad and includes many different types of action to connect travelling for work, pleasure and other reasons. 

You can explore and test the best travel agency themes to find the one that perfectly fits your suitable business concepts.

The travel business creates jobs, builds infrastructures and shares culture between local communities and travelers which helps to the growth of the world travel economy.  

The tourism industry serves a wide range of travelers, from backpackers on a budget to tourists who want to live a luxurious life.

The way of travelers study schedules, and book their trips has improved with the technology change so, travel agencies take more ideas and features to attract more customers.

You can Get WP Travel Pro to add features to your travel website.

51 Tourism and Travel Business Ideas

Nowadays, most of the travel business than just opening travel agencies. Many tour business plans can make travel and tourism businesses more profitable. Let’s explore some travel business techniques.

The adventure tourism company organizes adventure trips like hiking, rock climbing, and rafting which is considered as popular travel business ideas to start in 2024.

This company specializes in leading outdoor adventure experiences for tourists and people who like thrills and nature.

If you want to open a travel agency currently to find ways to start and grow your travel business, then choosing the ready-made travel plugin saves a whole lot of time, effort, and resources.

You can try WP Travel, trusted by 6000+ travel business owners to launch their travel booking website right away without any hassle of a highly paid bunch of developers and coding stuff.

First, you have a business idea but don’t have any money to invest in it – at least in the beginning phase. 

If you want to be successful, you should know lots of places where you can start your business.

If you are in out the cities areas it is best for your Eco-tourism business. It helps to promote and utilization of safe and responsible tourism that reduces bad environmental effects and encourages the well-being of local communities. 

For those people who want to use their home as a business like a homestay, or motel. This is best for accommodations and breakfast . 

You have to make it popular to get a lot of travelers to come, and you need to give them a great experience.

Most people become increasingly aware of their physical and mental well-being, you can start the wellness retreat centre to provide physical and mental health sessions and classes.

Traveler are curious about the local community traditions, and religions. So, you have to provide the travel experiences with a deeper, more supportive and more authentic connection to the destination.

It is the easy way to operate the travel business by tasting local foods, joining in cultural events, and selling your travel-related local products.

Several travelers and tourists depend on cars to get around when they want to travel in local areas. For this purpose, a Car Rental is the best choice for running the travel business.

This business suits you if you have any skill and knowledge with care and motorbike.

The sustainable travel industry plays a vital role in promoting ethical and ec-conscious tourism behaviour in the travel field.

If you love nature wildlife and ecosystems, the sustainable travel business is environmental conservation.

Let’s launch your travel booking website today!

Trip photography companies are one of the apparent choices if you are a solopreneurship. You have the option and freedom to travel, take pictures and make money as a travel photographer.

In addition, if you’re truly skilled, you may earn a lot of money through the different photography websites.

Wildlife safari offers tourists unique and memorable moments and provides them to watch wild animals in their native environments.

If you have knowledge about wildlife or work in any park or zoo it helps you to grow the travel business.

Boutique hotel companies help you to work in a unique atmosphere design and decor, giving visitors a pleasant break from regular accommodations which helps to grow your travel business.

Most travelers learn the other country and community languages, which helps them survive there easily. 

You can start different country language tutorials to earn money for the growth of your travel business. 

You can build your hotel, motel and rooms suitable for customers’ pets. That helps you get more booking chances and get the best reviews and ratings.

Health tourism companies connect tourists with specialist medical treatments and health services that may not be accessible in their home countries.

You have to provide advanced medical treatments, or special surgeries to travelers when they are in any health issues.

Travel blogging/vlogging is often regarded as one of the famous travel business ideas to earn a living . You can write or create travel-related content and make vlogs where you can earn money. Also, it supports travelers in finding out the best destinations.

You can organize adventure sports tournaments and competitions to support the travel industry and grow your travel business. 

Destination weddings offer couples stunning and romantic settings, like tropical beaches, historic sites, green parks or mountain hills. 

These beautiful places provide wedding, and party events and make memorable memories for couples and their guests.

You can link with colleges and schools to offer educational trips focused on nature and sustainability.

A cultural exchange program offers you a variety of benefits within the travel business, promoting culture, understanding, and teamwork between people of different countries.

You can create a platform that connects travelers with local guides. Today most travel companies connect on digital platforms and promote their business. 

The historical recreation events provide an engaging and informative experience for travelers. You can create a project related to historical events and promote your travel business.

Luxury train travel provides travelers with comfort and luxury, offering well-appointed rooms, soft furniture, and helpful services. 

Where you can provide sleeping accommodations for elegant dining cars and lounges. 

Sustainable farm stays on of the travel business where you can provide the accommodations on working farms. 

Like in Pokhara, where you can fishing the fish in a pond and then you have it with other food items.

Adventure training classes provide several benefits to the travel business, like teaching individuals seeking outdoor experiences, skill development, and personal growth. 

Wildlife supports guide tours, conversion, and engaging activities, customers gain the value of nature, the risks facing wildlife, and the role of conservation in saving natural environments. 

You can provide wildlife conservation tour packages to wildlife photographers and travelers.

Provides risk assessment and safety training for travelers to earn money and growth the travel business. 

Travel technology solutions have many tasks, like booking management, planning, and handling the payment process. 

It helps you to book hotels, plane tickets, and other services which improve your travel business.

It has many benefits for your travel business, like making decisions easier, accessibility, and improving marketing and training.

It helps travel agencies with personalization, saving travel costs, and making them a valuable asset for the travel industry.

Cultural heritage protection makes society better in different ways, by promoting cultural education and identity, driving economic growth, supporting intercultural understanding, and community empowerment.

You can add the family-friendly adventure vacation travel package to promote your travel business.

Establish budget-friendly accommodations for travelers as they feel like their home.

Manufacture equipment for outdoor adventure tours and travel and sell them to travelers and travel agencies.

This a smart way to make destinations more inclusive, profitable and long-lasting in the global tourist market, which is good for everyone involved with the destinations.

You have to certify businesses committed to sustainability in the travel markets.

For travelers or adventurous persons, you can teach outdoor activities like surfing or skiing.

36. Agritourism Experiences 

 You offer the tourists or visitors farm tours and agricultural experiences.

Establish the travel media productions to produce content focused on adventure travel.

Travel tech companies are very important for innovation, competition, and change in the travel industry. Where you can develop innovative solutions for the travel business.

Provides transportation services for travelers or customers’ pets. 

You have to host retreats for digital nomads and remote workers to build your travel business.

Travel companies, travelers and target communities can benefit from art and culture trips. It makes them very useful in the tourism industry’s desire to provide sustainable travel experiences.

Support the local communities through the establishment the travel companies.

It is a strong way to encourage responsible tourism, empower the people and communities, protect nature and cultural assets make the tourism business more sustainable in the long term.

You can offer water taxi services to your customers depending on where you are for travel business to work.

Making the glamping resort to a tour business can provide unique experiences, and help the business stand out in the market. So, it is suitable for you to start the travel business.

Operating a sustainable souvenir shop in the travel business, including promoting sustainable consumption, preserving cultural heritage, and protecting the environment for the tourism industry’s long-term sustainability.

As a place where travelers can stop and relax in a friendly and fun environment, a coffee shop helps the travel business’s overall success and sustainability of the travel business.

Another business model, corporate event planning plays a pretty good role in the travel business. You will be responsible for designing unique corporate events as an event planner.

Translation services are another popular choice for travlers and other people who want to run their own travel business. 

This skill will also support you when you have to deal with people from outside your business. 

It helps food tourism and cultural exchange because agencies put travelers in touch with the unique tastes and cooking customs of places all over the world.

In recent times, medical tourism is one of the feasible travel business ideas, that has grown in popularity all over the world. Most the people are interested in both modern medicine and natural, traditional treatment options. 

Explore the features and pricing of top tour operator software

It is the idea for tourism industry owners to choose the best travel business concepts, we have made a table that compares different travel business ideas based on capital requirement, potential profitability, and global market sizes.

Over time, the market size of the travel business might change. We request everyone to review individual businesses’ market size change log for better understanding.

This data is taken from trusted and relevant sources.

How do you choose the best travel business ideas?

The best travel industry ideas for your company depend on your goals, hobbies, and market opportunities.

There are several things to choosing the best travel business idea to ensure its viability and potential for success.

These are some steps to help you to choose the best tour business ideas.

You can think about the parts of the travel business that interest you the most and your experiences. 

If you want success in travel business, make a business around which you are most interested and fulfill your requirements. 

Most travel businesses keep up with the latest trends to find out about the needs of the market and customers, new fields, and area growth with potential. 

Always find out the gaps or underserved markets where you can fulfil the customer’s needs by taking something new and valuable. 

The travel industry analyzes your competitors for your business and includes both direct and indirect competitors. You can figure out how can make your business stand out and provide extra value to attract customers.

While opening the travel business you think about the startup costs, running the business, following the government rules and regulations, and technology needs.

You can focus on seeking guidance from mentors, people who work in the industry, or business advisers who have experience in the travel industry. 

These ideas and suggestions can help your business to improve its business plan and raise your chance of success.

The travel and hospitality field meets the needs of travelers, tourists and guests. 

It includes everything from transportation and lodging to dining, pleasure and recreational activities.

These are the main components of the travel and hospitality industry business.

• Transportation Services
• Accommodation 
• Food and Beverage Services
• Attractions and Entertainment
• Travel agencies and tour operators
• Travel Technology and Online Booking Platforms
• Hospitality Services and Facilities Management

The travel and hotel industry is made up of many different types of companies and services that all play a part in the travel economy and travel experience. 

These companies work together to meet the needs and expectations of travelers. 

The travel and hospitality industry has unique experiences, and they help to target economic growth and development within destination fields.

Useful for you: Future of Travel and Tourism Industry

Small tourism companies that offer unique experiences and target specific groups in the travel industry can be very profitable.

In the competitive travel market, small tourism companies can provide excellent customer service. Small tourism businesses can provide the best services at low prices.

These are some technics for starting a small travel and tourism business.

• Culinary Tours
• Adventure Tourism
• Ecotourism and Sustainable Tours 
• Cultural Immersion Experiences
• Bike or Segway Tours
• Photography Tours
• Wellness and Yoga Retreats

These are just a few small tourism and business ideas that people who want to start their own business. 

In the tough travel market, small tourism companies can stand out by catering to specific groups of people, providing different events, and giving great customer service.

If you want to start a small travel business, WP Travel is the best travel plugin . You can also try WP Travel Pro to add more features and functionalities to your websites.

The best business for travel and travel depends upon different factors. These are some best tourism businesses: Tour Operators, Travel agencies, Luxury Travel Companies, and Transportation Companies.

A good tourism business must provide a memorable experience for your customers . Therefore, it‘s important to keep this in mind while you are starting a travel business.

The 3 positives of the tourism industry are boosting the revenue of the total economy, providing several jobs, and developing the infrastructures of the tourism field.

Yam Bahadur Chhetri is a content writer and vivid contributor to the WordPress community and a WordPress enthusiast with an experience of 7+ years in the relative field. He also loves to develop WordPress Themes, Plugins, and custom WordPress development for clients.

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What is the relationship between transport and tourism?

Disclaimer: Some posts on Tourism Teacher may contain affiliate links. If you appreciate this content, you can show your support by making a purchase through these links or by buying me a coffee . Thank you for your support!

One thing that many people in the travel industry may not realise is the important and vital relationship between transport and tourism. This is something that I teach to my tourism students each year as part of their tourism management degree and it is the relationship between transport and tourism which forms the basis of the tourism industry. 

Without transport, the tourism sector would not be able to exist. Therefore, transport is a fundamental part of the tourism industry.

The relationship between transport and tourism

Image source: Unsplash

As seen in the dictionary, the definition of transport is to “take or carry (people or goods) from one place to another by means of a vehicle, aircraft, or ship.” Also found in the dictionary is the definition of tourism which is “the commercial organisation and operation of vacations and visits to places of interest.

Transport is a hugely complex activity, impacting on every one of us in our daily lives. In a sense, we are all transport stakeholders-we all have an involvement with the transport industry in some way or another. Whether it means travelling to your job every day or flying to your holiday spot, transportation is essential to each of us in many different ways.

To help understand this relationship further there are a couple of core texts that I would recommend for any student studying travel and tourism or person who is interested in learning more about the relationship between transport and tourism.  Transport and Tourism: Global Perspectives by Steven Page is my favourite book in this area as it is the leading, authoritative text providing a much-needed synthesis of the key, contemporary issues occurring at the intersection of transport and tourism. I also recommend  Tourism, Transport and Travel Management by M.R Dileep , which analyses the structure, functions, activities, strategies and practices of each of the sectors in the travel industry, such as airlines, airports, tour operators, travel agencies and cruises. 

Transport within the tourism industry

The key task for the tourism sector is to comprehend and present the vital importance of adequate transport links to destinations – recognising the appropriate modes of travel for the different types of journeys – and to advocate a proper understanding of those links and the value that they have to local economies among the transport policy and planning community.

A better understanding of the tourism sector must be built with those public bodies (government, local authorities and relevant agencies) responsible for transport policy and planning, and for maintaining and developing transport infrastructure. This is imperative to ensure sustainable tourism management. 

Likewise, the tourism sector must understand how the transport sector operates and to what extent it is able to influence decisions and planning. This can become rather complex when you take into consideration different transport infrastructures , rules and regulations across different geographical contexts. Some countries, for example, will rely heavily on train infrastructure, others may be reachable only by boat and some may require private charter transport for tourists to get around. 

The impacts of transport on tourism

Compared to some of our European competitors such as Switzerland , England has a lack of transport integration and this is compounded by deregulated service provision in areas outside London. This can cause problems for local attractions, accommodations and such like… because if a tourist cannot reach a destination then it I likely to thrive from tourism! 

This is an issue that has been demonstrated time and time again with regards to air transport. Many budget airlines have started up new routes where they fly into destinations that had previously had little business from tourism. This encourages the growth of tourism in the area and it is common for new businesses to open up and to be successful. Should the airline feel that said route, however, is no longer profitable, they will simply remove the route from their operations. This has been known to decimate the tourism industry of an area, which can have devastating impacts on the local economy and livelihoods of local people. 

This is an area where destination organisations can take a lead by ensuring transport is integrated into destination management planning. More can also be done to ensure that individual attractions and organisations that operate a number of sites develop travel plans and provide options to reach them by public transport.

Tourism helps support transport services and infrastructure across the country. Without tourism many areas of England would be likely to lose many of the public transport services that are currently provided and benefit residents as well as visitors.

Benefits particularly apply to remote communities with low population thresholds and in rural areas throughout the country. However, even in popular destinations such as seaside resorts or in the densely populated South East, the transport infrastructure that serves visitors provides benefits to local residents as well.

All in all, it is important to understand the relationship between transport and tourism and the benefits that tourism brings to the economy. One cannot be successful without the other!

Tourism Transportation

The transport industry has gained a vital place in the global network system and is one of the most important components of the tourism infrastructure. It now becomes easier for people to travel from one place to another because of the various modes of transportation available.

The earliest forms of transportation in the ancient times were animals on land and sails on the sea. Travel development from the need to survive, to expand and develop trade to far off countries, and the hunger to capture new lands and territories. This was followed by the use of steams and electricity in the nineteenth century followed by internal combustion engines.

Aircraft with the jet engines were introduced in the 1950s . With the development of technology, travel became faster and more and people could travel around the globe.

Since tourism involves the movement of people from their places of residence to the places of tourist attractions, every tourist has to travel to reach the places of interest. Transport is, thus, one of the major components of the tourism industry. To develop any place of tourist attraction there have to be proper, efficient, and safe modes of transportation.

Transportation is vital to tourism. Studies have shown that tourists spend almost 30 to 40 percent of their total holiday expenditure on transportation and the remaining on food, accommodation, and other activities. This aspect once again highlights the importance of transportation.

A tourist can travel by a variety of means. The tourism professional, as well as tourist, should be aware of the various modes of transport available to reach the destination and at the destination.

The various mode of transport can be broadly divided into the following three categories :

• Air transport
• Land transport
• Water transport

Air Transport

Due to the growth of air transport in recent years, long-distance travel has become much simpler and affordable. Distance is now measured in hours and not in kilometers. The world has indeed shrunk and becomes a small village.

The development of air transport mostly occurred after World War I and II. Commercial airlines were created for travelers. Because of increasing air traffic, the commercial sector grows rapidly. Before the World War II, Swissair already was carrying around 14-16 passenger between Zurich to London.

The first commercial service was introduced by KLM, the Dutch Airlines, in 1920 between Amsterdam and London. Commercial air travel grew mostly after World War II. More facilities were introduced and there was more comfort in travel.

Jet flights were inaugurated by Great Britain in the year 1952. In the year 1958 Pan American introduced the Boeing 707 services between Paris and New York. Due to the introduction of jet flights, the year 1959 onward saw a tremendous increase in air traffic. The concept of chartered flights was also introduced during this year.

Jumbo jets have revolutionized travel. A large number of people travel by air because of the speed, comfort, and economy in terms of time saved.

The modern era, thus, is the era of mass air travel. After road transport, air travel is the most popular mode of travel, particularly for international travel. For the business travelers, air transport is more convenient as it saves their precious time and offers a luxurious and hassle-free travel. Many airlines nowadays offer special facilities to the business tourist such as Internet on board.

There two types of airlines . These are following as:

Scheduled airlines operate as regular schedules. Chartered airlines or the non-scheduled airlines operate only when there is a demand, mainly during the tourist seasons. The chartered flights work out cheaper than the scheduled carriers as they are operated only when there is a high load factor. Chartered flights provide cheaper packages to the destination such as Portugal and Spain.

India receives more than 400 chartered flights, especially to Goa. Goa has a maximum number of chartered flights coming in during the months of December to January.

The International Air Transport Association (IATA) regulates international air travel. IATA has more than 105 major airlines of the world as its members. IATA regulates the price of tickets on different sectors of travel in the world. The concerned government decides the domestic fares.

The airfares are normally determined on the volume and the air travel demand in an area.

The International Civil Aviation Organization (ICAO) is an intergovernmental organization established in the year 1945. Only the government of the country can become a member. The government has to enter into a bilateral agreement for the frequency of flights for operating commercial airlines between them.

Airlines are classified into two broad categories namely small carrier and large carrier . The small carrier also known as commuter airlines have less than 30 seats . The larger carriers, also known as major airlines fly direct routes between the major cities and seat and seat 100 to 800 passengers .

The recent boom in the aviation technology has certainly bought some new development to airlines industry. There has been a major change in the size of the aircraft.

Every year there are a growing number of new airlines being introduced. Because of the growing number of new private airlines, there is stiff competition among them. This has resulted in a considerable reduction in air fairs and has boosted the growth of air traffic. To woo and attract customers, many airlines offer cheaper promotional fares such as excursion fares, group fares, and apex fares.

Million of tonnes of cargo and mail are also handled by the air transport industry.

Road Transport

Humans travel place to place in search of food in the primitive era. They tamed animals such as the dog, ox, horse, camel, reindeer, elephants, etc. for carrying the load and traveling. After the discovery of the wheel, humans developed the cart, the chariot, and the carriage.

Until the seventeenth century, horses were used for traveling. Later on better roads were constructed and some of these roads developed into trade routes, which linked many countries. One of them is the Silk Route which was used for transporting silk from China to Persia and the Blue Gem road from Iran to Afghanistan and India.

Today, the most popular and widely used mode of road travel is the automobile or the car. Road transport is dominated by the automobile, which provides views of the landscape and the freedom to travel. Tourist often travels with their entire family for holidays.

To promote tourism , the vehicle required are coaches and tourist cars. Tourist coaches or buses are preferred for large tourist groups traveling together on a specified tour itinerary. Many tourists prefer to travel in comfort and privacy and hire cars. Cars of various makes and standards are available on a rental basis.

Tourist also uses their own motorcar when holidaying. Cars and coaches carried long distance by train facility is also available in some countries.

The car rental segment of the tourism industry is in a very advanced stage in foreign countries. The client can book a car, himself or through agents, and make it wait at the desired place at the destination. The client can then drive the car himself /herself on reaching the destination.

Rail Transport

The railway is the most economical, convenient, and popular mode of travel especially for long distance travel all over the world. The railroad was invented in the seventeenth century in Germany with wooden tracks. The first steel rail was developed in the USA during the early 1800s . The railways revolutionized transportation and mass movement of people seen in the nineteenth and twentieth centuries.

The broad gauge lines account for more than 55 percent of the total network and carry 85 percent of total traffic. The steam engines have been replaced by diesel and electric engines which have helped in increasing the speed. Railways have promoted tourism by introducing a special tourist train.

In Europe, the railway systems of six European countries have been clubbed to make rail travel easier for the people of Europe. A rail passenger can buy a ticket in any one country of Europe and travel through six countries. For the foreign tourists, Eurail Passes offer unlimited discounts travel in express trains for periods ranging from a week to three months. In the USA, AMTRAK operates trains.

Water Transport

Humans have been traveling through water since time immemorial and carried good and people from one place to another. The boats progressed from the simple raft with some modifications and improvement and were first used around 6000 BC.

Travel by ship was the only means for traveling overseas until the middle of the twentieth century. The Cunard Steamship Company was formed in 1838 with regular steamship services operating on the North Atlantic. During the World War I, in 1914 the operations of the steamship company had to be suspended. After the World War I, the steamship luxury liners were back to business till World War II.

After the World War II, the large luxury liners again started their operations all over the world and carried passengers and holidaymakers. Some of the linear were very large accommodating up to 1000 passengers and had facilities like swimming pools, cinema halls, shops, casino, etc.

The cruise lines are the new attraction among the tourist. The cruises are booked several months in advance for trips into the tropical and sub-tropical waters of the Hawaii, Caribbean, Mediterranean, etc. Water transport today plays two main roles in travel and tourism namely ferrying and cruising .

Modern vessels such as the wave -piercing, the hydrofoil and the hovercraft are the over the water transport and used for short distance routes.

Water transportation is also used in riverboat travel. The Mississippi River has been a popular tourist river since the first settlers came to the USA. Today, tourists enjoy two or three-day luxury trips along the river. In Europe, the Rhine, winding through the grapes growing areas of Germany, offers similar leisure tourist trips.

Motorized ferries and launches are used over rivers to transport tourists and locals, to transport vehicles, and offer facilities such as car parking, restaurants, viewing decks, etc.

Advantages and Disadvantages of Various Modes of Transport

Tourist has a wide variety of transport options available today. There are several advantages and disadvantages of all the model of transport. These are following as:

Direct root, high speed, quick service, social and political significance, luxurious travel are the advantages of air transportation.

High cost, jet lag, unsuitable for heavy bulk cargo, accidents always fatal, international rule to be observed are the disadvantages of air transportation.

Flexibility, reliable, door to door service, economical, supplements other modes of transport, quick transit for short distances are the advantages of road transport.

Slow speed, carrying capacity limited, accidents, none- AC coaches not so comfortable, comfort depends upon the conditions of roads are the disadvantages of road transport.

Long distance travel cheaper, carrying capacity large, dependable service, quicker than road transportation, ability to view scenery en route is the advantage of railways.

Inflexible, unfit to hilly regions, difficulties in rural areas, dining car facilities not always available are the disadvantage of railways.

Economical, carrying capacity enormously, develops international and coastal trades are the advantages of water transport.

Transportation As An Attraction

To attract customers as well as take them around an attraction, destination developers have used many forms of transport to move people around. These novel modes of transport ensure that major exhibits are viewed in a certain sequence and ensure that the crowd moves through at a reliable pace.

Overcrowding should be avoided at all costs to prevent untoward incidents and to maintain the beauty of the place. Tourist can cover the entire park in a shorter duration with the help of these modes of transport.

Transportation is the most crucial component of the tourism infrastructure. It is required not only for reaching the destination but also visiting the site and moving about at the destination. Variety in modes of transportation adds color to the overall tourism experience.

Unusual forms of transportation are also an attraction such as the cable cars in hilly terrain, the funicular railway, or jet boating. The choice of mode of transport is vast and tourists can choose a mode to suit their budget. They can opt for scheduled or non-scheduled transport such as the hiring of vehicles, boats, coaches or trains so that they can travel with their group.

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Chapter 2. Transportation

Morgan Westcott

Learning Objectives

• Understand the role of transportation in the tourism industry
• Recognize milestones in the development of the air industry and explain how profitability is measured in this sector
• Report on the historic importance of rail travel and challenges to rail operations today
• Describe water-based transportation segments including cruise travel and passenger ferries
• Recognize the importance of transportation infrastructure in tourism destinations
• Specify elements of sightseeing transportation, and explain current issues regarding rental vehicles and taxis
• Identify and relate industry trends and issues including fuel costs, environmental impacts, and changing weather

The transportation sector is vital to the success of our industry. Put simply, if we can’t move people from place to place — whether by air, sea, or land — we don’t have an industry. This chapter takes a broad approach, covering each segment of the transportation sector globally, nationally, and at home in British Columbia.

Let’s start our review by taking a look at the airline industry.

According to the International Air Transport Association (IATA), in 2014, airlines transported 3.3 billion people across a network of almost 50,000 routes generating 58 million jobs and $2.4 trillion in business activity (International Air Transport Association, 2014a).

Spotlight On: International Air Transport Association

The International Air Transport Association (IATA) is the trade association for the world’s airlines, representing around 240 airlines or 84% of total air traffic. It supports many areas of aviation activity and helps formulate industry policy on critical aviation issues (IATA, 2014b). For more information, visit the  International Air Transport Association website : http://www.iata.org

The first commercial (paid) passenger flight took place in Florida on New Year’s Day 1914 as a single person was transported across Tampa Bay (IATA 2014a). There have been a number of international aviation milestones since that flight, as illustrated in Table 2.1.

Rules and Regulations

Aviation is a highly regulated industry as it crosses many government jurisdictions. This section explores key airline regulations in more detail.

The term open skies refers to policies that allow national airlines to fly to, and above, other countries. These policies lift restrictions where countries have good relationships, freeing up the travel of passengers and goods.

Take a Closer Look: The 1944 Chicago Convention on International Civil Aviation

This document contains the original statements from the convention that created the airline industry as we know it, providing a preamble statement as well as detailed articles pertaining to a range of issues from cabotage to pilotless aircraft. Read the 1944 Chicago Convention on International Civil Aviation [PDF] : www.icao.int/publications/Documents/7300_orig.pdf

Canada’s approach to open skies is the Blue Sky Policy , first implemented in 2006. The National Airlines Council of Canada (NACC) and Canadian Airports Council (CAC) support the Blue Sky Policy.

While opening up a ir transport agreements (ATAs) with other jurisdictions is important, the Canadian government doesn’t provide blanket arrangements, instead negotiating “when it is in Canada’s overall interest to do so” (Government of Canada, 2014a). Some su ggest the government should be more liberal with air access so more competitors can enter the market, potentially attracting more visitors to the country (Gill and Raynor, 2003).

Taxes and Fees

According to a 2012 Senate study on issues related to the Canadian airline industry, Canadian travellers are being grounded by airline fees, fuel surcharges, security taxes, airport improvement fees, and other additional costs. Airports are charged rental fees by the Canadian government ($4.8 billion from 1992 to 2004), which they pass on to the airlines, who in turn transfer the costs to travellers. Some think eliminating rental fees would make Canadian airports more competitive, and view rental and other fees as the reason 5 million Canadians went south of the border for flights in 2013, where passenger fees are 230% lower than in Canada (Hermiston and Steele, 2014).

Profitability

Running an airline is like having a baby: fun to conceive, but hell to deliver. – C. E. Woolman, principal founder of Delta Air Lines ( The Economist , 2011).

As the quote above suggests, airlines are faced with many challenges. In addition to operating in a strict regulatory environment, airlines yield extremely small profit margins. In 2013 the industry accumulated $10.6 billion worldwide in revenues, although global profit margins were just 1.5% (IATA, 2014a). To put that into perspective, while the average airline earned 1.5%, Apple’s profit margins were almost 14 times that at 20.15% (YCharts, 2014).

Passenger Load Factor

Key to airline profitability is passenger load factor , which relates how efficiently planes are being used. Load factor for a single flight can be determined by dividing the number of passengers by the number of seats.

Passenger load factors in the airline industry reached a record high in 2013, at just under 80%, which was attributed to increased volumes and strong capacity management in key sectors (IATA, 2104a). One way of increasing capacity is by using larger aircraft. For instance, the introduction of the Airbus A380 model has allowed up to 40% more capacity per flight, carrying up to  525 passengers in a three-class configuration, and up to 853 in a single-class configuration (Airbus, 2014). 

Low-Cost Carriers

Another key factor in profitability is the airline’s business model. In 1971, Southwest Airlines became the first low-cost carrier (LCC), revolutionizing the industry. The LCC model involved charging for all extras such as reserved seating, baggage, and on-board service, and cutting costs by offering less legroom and using non-unionized workforces. Typically, an LCC has to run with  90% full planes to break even (Owram, 2014). The high-volume, lower-service system is what we have become used to today, but at the time it was introduced, it was groundbreaking.

Ancillary Revenues

The LCC model, combined with tight margins, led to today’s climate where passengers are charged for value-added services such as meals, headsets, blankets, seat selection, and bag checking. These are known in the industry as ancillary revenues . Profits from these extras rose from $36 billion in 2012 to $42 billion in 2013, or more than $13 a passenger. An average net profit of only $3.39 per passenger was retained by airlines (IATA, 2014a).

As you can see, airlines must strive to maintain profitability, despite thin margins, in an environment with heavy government regulation. But at the same time, they must be responsible for the safety of their passengers.

Air Safety and Security

IATA encourages airlines to view safety from a number of points, including reducing operational risks such as plane crashes, by running safety audit programs. They also advocate for improved infrastructure such as runway upgrades and training for pilots and other crew. Finally, they strive to understand emerging safety issues, including the outsourcing of operations to third-party companies (IATA, 2014a).

In terms of security, coordination between programs such as the Interpol Stolen and Lost Travel Documents initiative and other databases is critical (IATA, 2014a). As reservations and management systems become increasingly computerized, cyber-security becomes a top concern for airlines, who must protect IT (information technology) because their databases contain information about flights and passengers’ personal information. Unruly passengers are also a cause of concern, with over 8,000 incidents reported worldwide every year (IATA, 2014a).

Now that we have a better sense of the complexities of the industry, let’s take a closer look at air travel in Canada and the regional air industry.

Canada’s Air Industry

In 1937, Trans-Canada Air Lines (later to become Air Canada) was launched with two passenger planes and one mail plane. By the 1950s,   Canadian Pacific Airlines (CP Air) entered the marketplace, and an economic boom led to more affordable tickets. Around this time CP Air (which became Canadian Airlines in 1987) launched flights to Australia, Japan, and South America (Canadian Geographic, 2000). In 2001, Canadian Airlines International was acquired by Air Canada (Aviation Safety Network, 2012).

In 1996, the marketplace changed drastically with the entry of an Alberta-based LCC called WestJet.  By 2014, WestJet had grown to become Canada’s second major airline with more than 9,700 staff flying to 88 destinations across domestic and international networks (WestJet, 2014).

As it grew, WestJet began to offer services such as premium economy class and a frequent-flyer program, launched a regional carrier, and introduced transatlantic flights with service to Dublin, Ireland, evolving away from the LCC model (Owram, 2014). With those changes, and in the absence of  a true low-cost carrier, in 2014, some other companies, such as Canada Jetlines and JetNaked, sought to raise upward of $50 million to bring their airlines to market.

However, outside of Air Canada and WestJet, airlines in Canada have found it very challenging to survive, and some examples of LCC startups like Harmony Airways and Jetsgo have fallen by the wayside.

Challenges to Canada’s Air Industry

When looking at these failed airlines in Canada, three key challenges to success can be identified (Owram, 2014):

• Canada’s large geographical size and sparse population mean relatively low demand for flights.
• Canada’s higher taxes and fees compared with other jurisdictions (such as the United States) make pricing less competitive.
• Canada’s two dominant airlines are able to price new entrants out of the market.

In addition to these factors, the European debt crisis, a slow US economic recovery, more cautious spending by Canadians, and fuel price increases led to a $900 million industry loss in 2011 (Conference Board of Canada, 2012) prior to the industry returning to profitability in 2013.

Take a Closer Look: One Size Doesn’t Fit All

In 2013, a special report to the Canadian Senate explored the concept that one size doesn’t fit all when it comes to competitiveness in the country’s airline industry. The report contains general observations about the industry as well as a number of recommendations to stakeholders, including airport managers. Read the report: “One Size Doesn’t Fit All: the Future Growth and Competitiveness of Canadian Air Travel” [PDF] : www.parl.gc.ca/Content/SEN/Committee/411/trcm/rep/rep08apr13-e.pdf

Today, the Canadian airline industry directly employs roughly 141,000 people and is worth $34.9 billion in gross domestic product. It supports 330 jobs for every 100,000 passengers and contributes over $12 billion to federal and provincial treasuries, including over $7 billion in taxes (Gill and Raynor, 2013).

Let’s now turn our attention to the regional air market, focusing on British Columbia.

Regional Airlines

Transportation in BC has always been difficult: incomplete road systems and rugged terrain historically made travel between communities almost impossible. In 1927, a number of businessmen promised to change all that when they opened British Columbia Airways in Victoria with the purchase of a commercial airliner (Canadian Museum of Flight, 2014).

As commercial flying became more popular, and the province grew, regional airports started to spring up around BC as a means of delivering surveying equipment, forestry supplies, and workers. Many of these airports were legacies of Canada’s strategic position for the military. Fort Nelson’s airport, for instance, was established so the US Air Force could fuel aircraft bound for Russia in World War II (Northern Rockies Regional Airport, 2014).

In 1994, Transport Canada transferred all 150 airports under its control to local authorities under the National Airports Policy (NAP). This policy is considered to have been a turning point in the privatization of the airline industry in Canada. A 2004 study showed that after 10 years, 48% of these airports were not able to cover annual costs of operation, leading to concerns about the viability of small local airports in particular (InterVISTAS, 2005).

In 2012, the BC government released its aviation strategy, entitled Connecting with the World , which acknowledged the economic challenges for airports large and small. These range from Vancouver International Airport (YVR), which supports more than 61,000 jobs and creates more than $11 billion in economic activity each year, through to regional and local airports. The strategy outlined a framework to remove barriers to aviation growth including potentially eliminating the two-cent-per-litre International Aviation Fuel Tax ( British Columbia Ministry of Transportation and Infrastructure , 2012).

Given a highly complex regulatory environment, razor-thin profit margins, and intense competition, the airline industry is constantly changing and evolving at global, national, and regional levels. But one thing is certain: air travel is here to stay.

On the other hand, the rail industry has been faced with significant declines since air travel became accessible to the masses. Let’s learn more about this sector.

In Chapter 1, we looked at the historic significance of railways as they laid the foundation for the modern tourism industry. That’s because in many places, including Canada and British Columbia, trains were an unprecedented way to move people across vast expanses of land. With the Canadian Pacific company opening up hotels in major cities, BC’s hospitality sector was born and a golden age of rail travel emerged.

However, starting in the 1940s and 1950s, the passenger rail industry began to decline sharply. In 1945, Canadian railways carried 55.4 million passengers, but just 10 years later passenger traffic had dropped to 27.2 million. The creation of VIA Rail in 1977 as a Canadian Crown corporation was an attempt by the government to ensure rail travel did not disappear, but in the years since its founding VIA has struggled, relying heavily on federal subsidies in order to continue operations.

Between 1989 and 1990, VIA lost over 45% of its ridership when it cut unprofitable routes, focusing on areas with better potential for revenue and passenger volumes. From there, annual ridership has stabilized at around 3.5 million to 4.0 million passengers per year, slowly increasing throughout the 1990s and 2000s (Dupuis, 2011).

Despite this slight recovery, there are a number of challenges for passenger rail in Canada, which will likely require continued government support to survive. Three key challenges to a successful passenger rail industry are:

• Passenger rail must negotiate with freight for right-of-use of tracks.
• There is limited potential of routes (with the highest volume existing in the Quebec-Windsor corridor).
• Fixed-cost equipment is aging out, requiring replacement or upgrading.

High-speed rail seems like an attractive option, but would be expensive to construct as existing tracks aren’t suitable for the reasons given above. It’s also unlikely to provide high enough returns to private investors (Dupuis, 2011). This means the Canadian government would have to invest heavily in a rapid rail project for it to proceed. As of 2014, no such investment was planned.

Spotlight On: Rocky Mountaineer Rail Tours

Founded in 1990, Rocky Mountaineer offers three train journeys through BC and Alberta to Banff, Lake Louise, Jasper, and Calgary, and one train excursion from Vancouver to Whistler. In 2013, Rocky Mountaineer introduced Coastal Passage, a new route connecting Seattle to the Canadian Rockies that can be added to any two-day or more rail journey (Rocky Mountaineer, 2014). For more information, please visit the Rocky Mountaineer website : http://www.rockymountaineer.com

While the industry overall has been in a decline, touring companies like Rocky Mountaineer have found a financially successful model by shifting the focus from transportation to the sightseeing experience. The company has weathered financial storms by refusing to discount their luxury product, instead focusing on the unique experiences. The long planning cycle for scenic rail packages has helped the company stand their ground in terms of pricing (Cubbon, 2010).

Rail Safety

In Canada, rail safety is governed by the Railway Safety Act , which ensures safe railway operation and amends other laws that relate to rail safety (Government of Canada, 2014b). The Act is overseen by the Minister of Transport. It covers grade crossings, mining and construction near railways, operating certifications, financial penalties for infractions, and safety management.

The Act was revised in late 2014 in response to the massive rail accident in July 2013 in Lac-Mégantic, Quebec. A runaway oil train exploded, killing 47 people, and subsequently MM&A Railway and three employees, including the train’s engineer, were charged with criminal negligence (CBC News, 2014).

In addition to freight management issues, a key rail safety concern is that of crossings. As recently as April 2014, Transport Canada had to issue orders for improved safety measures at crossings in suburban Ottawa after a signal malfunctioned in the area (CTV News, 2014a). According to Operation Lifesaver Canada (2014), in 2011, there were 169 crossing collisions across Canada, with 25 fatalities and 21 serious injuries. In general, however, Canada’s 73,000 kilometres of railway tracks safely transport both people and goods. And while railways in Canada, and elsewhere, are being forced to innovate, companies like Rocky Mountaineer (see Spotlight On above) give the industry glimmers of hope.

The rail industry shares some common history with the cruise sector. Let’s now turn our focus to the water and learn about the evolution of travel on the high seas.

Travel by water is as old as civilization itself. However, the industry as we know it began when Thomas Newcomen invented the steam engine in 1712. The first crossing of the Atlantic by steam engine took place in 1819 aboard the SS Savannah , landing in Liverpool, England, after 29 days at sea. Forty years later, White Star Lines began building ocean liners including the  Olympic -class ships (the Olympic, Britannic , and Titanic ), expanding on previously utilitarian models by adding luxurious amenities (Briggs, 2008).

A boom in passenger ship travel toward the end of the 1800s was aided by a growing influx of immigrants from Europe to America, while more affluent passengers travelled by steamship for pleasure or business. The industry grew over time but, like rail travel, began to decline after the arrival of airlines. Shipping companies were forced to change their business model from pure transportation to “an experience,” and the modern cruise industry was born.

The Cruise Sector

We’ve come a long way since the Olympic class of steamship. Today, the  world’s largest cruise ship, MS  Oasis of the Seas , has an outdoor park with 12,000 plants, an 82-foot zip wire, and a high-diving performance venue. It’s 20 storeys tall and can hold 5,400 passengers and a crew of up to 2,394 (Magrath, 2014).  A crew on a cruise ship will include the captain, the chief officer (in charge of training and maintenance), staff captain, chief engineer, chief medical officer, and chief radio officer (communication, radar, and weather monitoring).

Spotlight On: Cruise Lines International Association

Cruise Lines International Association (CLIA) is the world’s largest cruise industry trade association with representation in North and South America, Europe, Asia, and Australasia. CLIA represents the interests of cruise lines and travel agents in the development of policy. CLIA is also engaged in travel agent training, research, and marketing communications (CLIA, 2014). For more information on CLIA, the cruise industry, and member cruise lines and travel agencies, visit the Cruise Lines International Association website : www.cruising.org

Cruising the World

According to CLIA, 21.7 million passengers were expected to travel worldwide on 63 member lines in 2014. Given increased demand, 24 new ships were expected in 2014-15, adding a total capacity of over 37,000 passengers.

Over 55% of the world’s cruise passengers are from North America, and the leading destinations (based on ship deployments), according to CLIA, are:

• The Caribbean (37%)
• The Mediterranean (19%)
• Northern Europe (11%)
• Australia/New Zealand (6%)
• Alaska (5%)
• South America (3%)

River Cruising

While mass cruises to destinations like the Caribbean remain incredibly popular, river cruises are emerging as another strong segment of the industry. The key differences between river cruises and ocean cruises are (Hill, 2013):

• River cruise ships are smaller (400 feet long by 40 feet wide on average) and can navigate narrow passages.
• River cruises carry fewer passengers (about 10% of the average cruise, or 200 passengers total).
• Beer, wine, and high-end cuisine are generally offered in the standard package.

The price point for river cruises is around the same as ocean trips, with the typical cost ranging from $2,000 to $4,000, depending on the itinerary, accommodations, and other amenities.

From 2008 to 2013, river cruises saw a 10% annual passenger increase. Europe leads the subcategory, while emerging destinations include a cruise route along China’s Yangtze River. As the on-board experience differs greatly from a larger cruise (no play areas, water parks, or on-board stage productions), the target demographic for river cruises is 50- to 70-year-olds. According to Torstein Hagen, founder and chairman of Viking, an international river cruising company, “with river cruises, a destination is the destination,” although many river cruises are themed around cultural or historical events (Hill, 2013).

Cruising in Canada

According to a study completed for the North West & Canada Cruise Association (NWCCA) and its partners, in 2012, approximately 1,100 cruise ship calls were made at Canadian cruise ports generating slightly more than 2 million passenger arrivals throughout the six-month cruise season (BREA, 2013). The study found three key cruise itineraries in Canada:

• Canada/New England
• Quebec (between Montreal and Quebec City and US ports)
• Alaska (either departing from, or using, Vancouver or another BC city as a port of call)

These generated $1.16 billion in direct spending. Cruising also generated almost 10,000 full- and part-time jobs paying $397 million in wages and salaries. The international cruise industry also generated an estimated $269 million in indirect business and income taxes in Canada, and the majority of this spending was in British Columbia (BREA, 2013).

Cruising BC

BC’s rail history and cruise history are intertwined. As early as 1887, Canadian Pacific Railway began offering steamship passage to destinations such as Hawaii, Shanghai, Alaska, and Seattle. Ninety-nine years later, Vancouver’s Canada Place was built, with its cruise ship terminals, allowing the province to attract large ships and capture its share of the growing international cruise industry (Cruise BC, 2014).

Spotlight On: Cruise BC

Cruise BC is a partnership between BC port destinations designed to provide a vehicle for cooperative marketing and development of BC’s cruise sector. Their vision is that the West Coast and British Columbia’s coastal communities are recognized and sought out globally by cruise lines and passengers as a destination of choice. For more information, visit the Cruise BC website : http://www.cruisebc.ca

This potential continues to grow as Nanaimo, Prince Rupert, Victoria, and Vancouver accounted for 57% of the Canadian cruise passenger traffic with 1.18 million passengers in 2012 (BREA, 2013).

Cruising isn’t the only way for visitors to experience the waters of BC. In fact, the vast majority of our water travel is done by ferry. Let’s take a closer look at this vital component of BC’s transportation infrastructure.

Ferry service in British Columbia dates back to the mid-1800s when the Hudson’s Bay Company ran ships between Vancouver Island and the Mainland. Later, CP Rail and Black Ball ferries ran a private service, until 1958 when Premier W.A.C. Bennett announced the BC Ferry Authority would consolidate the ferries under a provincial mandate.

The MV Tsawwassen and the MV Sidney began regular service on June 15, 1960, and BC Ferries was officially launched with two terminals and around 200 employees. Today, there are 35 vessels, 47 destinations, and up to 4,700 employees in the summer peak season (BC Ferries, 2014).

BC isn’t the only destination where ferries make up part of the transportation experience. In 2011, Travel + Leisure Magazine profiled several notable ferry journeys in the article, “World’s Most Beautiful Ferry Rides” including:

• An 800-mile ferry voyage through Chile’s Patagonian fjords
• A three-mile trip from the Egyptian Spice Market to Istanbul, Turkey
• Urban ferry rides including Hong Kong’s Victoria Harbour, Australia’s Sydney Harbour, and New York City’s Staten Island Ferry

The article also featured the 15-hour trip from Port Hardy to Prince Rupert on British Columbia’s coast (Orcutt, 2011).

While cruising is often a pleasant and relaxing experience, there are a number of safety concerns for vessels of all types.

Cruise and Ferry Safety

One of the major concerns on cruise lines is disease outbreak, specifically the norovirus (a stomach flu), which can spread quickly on cruise ships as passengers are so close together. The US Centers for Disease Control (CDC) vessel sanitation program (http://www.cdc.gov/nceh/vsp/default.htm) is designed to help the industry prevent and control the outset, and spreading, of these types of illnesses (Briggs, 2008).

Accidents are also a concern. In 2006, the BC Ferries vessel MV Queen of the North crashed and sank in the Inside Passage, leaving two passengers missing and presumed dead. The ship’s navigating officer was charged with criminal negligence causing their deaths (Keller, 2013). More recently, a “hard landing” at Duke Point terminal on Vancouver Island caused over $4 million in damage. BC Ferries launched a suit against a German engineering firm in late 2013, alleging a piece of equipment failed, making a smooth docking impossible. The Transportation Safety Board found that staff aboard the ship didn’t follow proper docking procedures, however, which contributed to the crash (Canadian Press, 2013).

Spotlight On: The Transportation Safety Board  

The Transportation Safety Board (TSB) investigates marine, pipeline, rail, and air incidents. It is an independent agency that reviews an average of 3,200 events every year. It does not determine liability; however, coroners and medical examiners may use TSB findings in their investigations. The head office in Quebec manages 220 staff across the country. For more information, visit the Transportation Safety Board website : http://www.bst-tsb.gc.ca/eng/index.asp

We’ve covered the skies, the rails, and the seas. Now let’s round out our investigation of transportation in tourism by delving into travel on land.

While much of this text has placed significance on the emergence of the railways as critical to the development of our industry, BC’s roadways have also played an integral role. Our roads have evolved from First Nations trails, to Fur Trade and Gold Rush routes, to Wagon Roads and Trunk Roads — finally becoming the highway system we know today ( British Columbia Ministry of Transportation and Highways , n.d.).

Take a Closer Look: Frontier to Freeway: A Short Illustrated History of the Roads in British Columbia

This short book, available as a PDF, provides an overview of the integral importance of BC’s evolving roadways in our transportation sector. Read this book: Frontier to Freeway: A Short Illustrated History of the Roads in British Columbia [PDF] : http://www.th.gov.bc.ca/publications/frontiertofreeway/frontiertofreeway.pdf

Today, land-based travel is achieved through a complex web of local transit, taxis, rentals, walking, and short-term sightseeing. This section briefly explores these options.

Scenic and Sightseeing Travel

It’s common for visitors to want to explore a community and appreciate the sights. We’ve already learned a little about the rail-based sightseeing company, Rocky Mountaineer. Many destinations also offer short-term, hop-on-hop-off bus and trolley tours. Others feature trams and trolleys. Outside of impromptu excursions, sightseeing tours are often put together by inbound tour operators. You can learn more about tour operators, and the sightseeing sector, in Chapter 7.

Transit and Destination Infrastructure

Vancouver’s Tourism Master Plan acknowledges the importance of transportation infrastructure to the tourism industry. Priorities for future development by the city include (Tourism Vancouver, 2013):

• Improving accessibility for people with disabilities
• Creating a transit loop between downtown attractions
• Supporting ferries in False Creek
• Providing late-night transit
• Investigating and implementing a public bike share
• Developing more transit options along the Broadway corridor
• Working with taxi companies to explore a strategic plan for taxi operations
• Enhancing walkability by implementing recommendations from the Pedestrian Safety Study and Action Plan

These action items were developed in consultation with industry stakeholders as well as residents, and reflect the interrelated elements that make up a destination’s transportation infrastructure.

Rentals and Taxis

Today, when travellers aren’t using their own cars, automobile travel is traditionally split between rental vehicles and taxis (including limousines).

In North America, there are three main brands that represent approximately 85% of the rental car business: Enterprise (includes National and Alamo), Hertz (includes Dollar and Thrifty), and Avis. One of the reasons that brands have consolidated over time is the high fixed cost of operation as vehicles are purchased, maintained, and disposed of. Fierce competition means prices are checked and updated thousands of times a day. The business is also highly seasonal, with high traffic in summer and spring, and so fleet management is critical for profitability. Rental companies tend to use enplanements (the numbers of passengers travelling by air), as a measurement of market trends that influence rental usage (DBRS, 2010).

In BC, taxi licences are issued by the BC Passenger Transportation Board. In Vancouver, the right to operate a taxi is based on a permit system, and each permit costs the original holder $100. But because of the limited number of permits available, those who hold one are able to auction it off for over $800,000 and keep the profit. As a result, passengers in Vancouver paid an average of 73% more for the equivalent trip in Washington, D.C. Drivers from  areas outside the city depositing passengers in Vancouver are also not permitted to pick up fares on the return trip, having to drive across their boundaries (Proctor, 2014).

Ridesharing apps  like Uber, which allow people to find a ride using their mobile phone, have emerged to exert influence on car travel in key destinations. In San Francisco, these apps have rapidly undercut the taxi industry: according to the city’s transit authority, per month, trips by taxi have plummeted from 1,424 in 2012 to 504 in 2014, even though taxi operators maintain a monopoly over rides from the airport (Kuittinen, 2014). In New York City, however, the price of medallions (similar to Vancouver’s taxi permits) continues to hover above $950,000. In large markets like Manhattan, passengers continue to hail cabs on the street in the moment, with e-hails (electronic taxi hails) at 0.17% of the market (Brustein & Winter, 2014). The City of Vancouver opted to force Uber to roll back after its initial release, and in 2014 placed the app on a six-month moratorium after pressure from taxi operators who cited threats to the values of their licences as well as safety and monitoring concerns (CTV News, 2014b).

As this and other examples illustrate, the transportation sector is vulnerable to regulatory, technological, operational, and business trends. Let’s look at these in more detail.

Trends and Issues

This section explores issues directly relating to transportation today including fuel cost, labour, and environmental impacts. For more information on one of the biggest trends in tourism, online travel agencies (OTAs), and how online bookings impact the transportation sector, please see Chapter 7.

When it comes to moving people, fuel cost is critical. The cost of jet fuel is one of the single highest factors in airline profitability. In 2013, the average cost was around $125 per barrel, which was $5 less than the previous year (IATA, 2014a). Cruise ships consume a lower grade of diesel than do land vehicles, but they consume a lot of it. The QE2 , for example, consumes roughly 380 tonnes of fuel every day if travelling at 28.5 knots (Briggs, 2008).

As in all tourism-related sectors, cyclical labour shortages can significantly impact the transportation industry. In the aviation sector, a forecast found that by 2032 the world’s airlines will need 460,000 additional pilots and 650,000 new maintenance technicians to service current and future aircraft. The drive to find employees also extends to the maritime sector, where the International Maritime Organization (IMO) launched a “Go to sea!” campaign to attract more workers to the field (PWC, 2012).

Environmental Impacts

In addition to fuel and labour costs, and regulations we’ve covered already, the transportation sector has a significant impact on the natural environment.

Air Impacts

According to the David Suzuki Foundation (2014), the aviation industry is responsible for 4% to 9% of climate change impacts, and greenhouse gas emissions from flights have risen 83% since 1990. Airline travel has a greater emissions impact than driving or taking the train per passenger kilometre, which caused a bishop in the UK to famously declare that “Making selfish choices such as flying on holiday [is] a symptom of sin” (Barrow, 2006).

Rail Impacts

Rail travel is widely regarded as one of the most environmentally friendly modes of transportation due to its low carbon dioxide emissions. Railways come under fire outside of the tourism realm, however, as freight shipping can produce hazards to resident health including an increased risk of developing cancer and noise pollution (The Impact Project, 2012).

Cruise Impacts

Cruise ships can generate significant pollution from black water (containing human waste), grey water (runoff from showers, dishwashers, sinks), bilge water (from the lowest compartment of the ship), solid waste (trash), and chemical waste (cleaners, solvents, oil). One ship can create almost a million litres of grey water, over 113,000 litres of black water, and over 140,000 litres of bilge water every day. Depending on the regulations in the operating areas, ships can simply dump this waste directly into the ocean. Ballast tanks, filled to keep the ship afloat, can be contaminated with species which are then transported to other areas, disrupting sensitive ecosystems (Briggs, 2008).

Land Impacts

A recent study found that the impact of travel on land is highly dependent on the number of passengers. Whereas travelling alone in a large SUV can have high emissions per person (as high as flying), increasing the number of passengers, and using a smaller vehicle, can bring the impact down to that of train travel ( Science Daily , 2013).

For more information on the environmental impacts of the transportation sector, and how to mitigate these, read Chapter 10.

As you’ve learned, the transportation sector can have an effect on climate change, and changes in weather have a strong effect on transportation. According to Natural Resources Canada (2013), some of these include:

• More drastic freeze-thaw cycles, destroying pavement and causing ruts in asphalt
• Increased precipitation causing landslides, washing out roads, and derailing trains
• Effects and costs of additional de-icing chemicals deployed on aircraft and runways (over 50 million litres were used worldwide in 2013)
• Delayed flights and sailings due to increased storm activity
• Millions of dollars of infrastructure upgrades required as sea levels increase and flood structures (replacing or relocating bridges, tunnels, ports, docks, dykes, helipads and airports)

The threat of climate change could significantly impact sea-level airports such as YVR, and some 50 additional registered airports across Canada that sit at five metres or less above sea level (Natural Resources Canada, 2013).

For this reason, it’s important that the sector continue to press for innovations and greener transportation choices, if only to ensure future financial costs are kept at bay.

Tourism, freight, and resource industries such as forestry and mining sometimes compete for highways, waterways, and airways.  It’s important for governments to engage with various stakeholders and attempt to juggle various economic priorities — and for tourism to be at the table during these discussions.

That’s why in 2015 the BC Ministry of Transportation released its 10-year plan, BC on the Move . Groups like the Tourism Industry Association of BC actively polled their members in order to have their concerns incorporated into the plan. These included highway signage and wayfaring, the future of BC Ferries, and urban infrastructure improvements.

You can view the plan by visiting  http://engage.gov.bc.ca/transportationplan/

This chapter has taken a brief look at one of the most complex, and vital, components of our industry. Chapter 3 covers accommodations and is just as essential.

• Ancillary revenues: money earned on non-essential components of the transportation experience including headsets, blankets, and meals
• Blue Sky Policy: Canada’s approach to open skies agreements that govern which countries’ airlines are allowed to fly to, and from, Canadian destinations
• Cruise BC: a multi-stakeholder organization responsible for the development and marketing of British Columbia as a cruise destination
• Cruise Lines International Association (CLIA): the world’s largest cruise industry trade association with representation in North and South America, Europe, Asia, and Australasia
• International Air Transport Association (IATA) : the trade association for the world’s airlines
• Low-cost carrier (LCC): an airline that competes on price, cutting amenities and striving for volume to achieve a profit
• National Airports Policy (NAP): the 1994 policy that saw transfer of 150 airports from federal control to communities and other local agencies, essentially deregulating the industry
• Open skies: a set of policies that enable commercial airlines to fly in and out of other countries
• Passenger load factor: a way of measuring how efficiently a transportation company uses its vehicles on any given day, calculated for a single flight by dividing the number of passengers by the number of seats
• Railway Safety Act: a 1985 Act to ensure the safe operation of railways in Canada
• Ridesharing apps: applications for mobile devices that allow users to share rides with strangers, undercutting the taxi industry
• Transportation Safety Board (TSB): the national independent agency that investigates an average of 3,200 transportation safety incidents across the country every year
• When did the first paid air passenger take flight? What would you say have been the three biggest milestones in commercial aviation since that date?
• If a flight with 500 available seats carries 300 passengers, what is the passenger load factor?
• Why is it difficult for new airlines to take off in Canada?
• How did some of BC’s regional airports come into existence? What are some of the challenges they face today?
• How much economic activity is generated by YVR every year?
• What are the key differences between river cruises and ocean cruises? Who are the target markets for these cruises?
• Which cities attract more than 50% of the cruise traffic in Canada?
• What are the priorities for transportation infrastructure development as outlined in Vancouver’s Tourism Master Plan? What other transportation components would you include in your community’s tourism plan?
• What are some of the environmental impacts of the transportation sector? Name three. How might these be lessened?

Case Study: Air North

Founded in 1977 by Joseph Sparling and Tom Wood, Air North is a regional airline providing passenger and cargo service between Yukon and destinations including BC, Alberta, and Alaska. In 2012, Air North surpassed one million passengers carried. Employing over 200 people, the airline is owned in significant part by the Vuntut Development Corporation, the economic arm of the Vuntut Gwitchin First Nation (VGFN). In fact, one in 15 Yukoners owns a stake in the airline (Air North, 2015).

The ownership model has meant that economic returns are not always the priority for shareholders. As stated on its website, “ the maximization of profit is not the number one priority,” as air service is a “lifeline” to the VGFN community. For this reason, service and pricing of flights is extremely important, as are employment opportunities. 

Visit the corporate information portion of the Air North website and answer the following questions: http://www.flyairnorth.com/Experience/about-air-north.aspx

• What is the number one priority of Air North? How is the company structured to ensure it can meet its goals in this area?
• What does Air North consider to be its competitive advantage? How does this differ from other airlines?
• Describe the investment portfolio of the Vuntut Development Corporation. What types of companies does it own? Why might they have selected these types of initiatives?
• List at least three groups that have a stake in the airline. What are their interests? Where do their interests line up, and where do they compete?
• In your opinion, would this regional airline model work in your community? Why or why not?

Air North. (2015). Corporate information . Retrieved from www.flyairnorth.com/Experience/Corporate.aspx

Airbus. (2014). A380: Boost your profitability. Retrieved from http://www.airbus.com/aircraftfamilies/passengeraircraft/a380family/

Aviation Safety Network. (2012, March 4). Canadian Airlines International . Retrieved from http://aviation-safety.net/database/operator/airline.php?var=7022

Barrow, Becky. (2006, July 23). Flying on holiday ‘a sin’, says bishop.   Daily Mail Online . Retrieved from http://www.dailymail.co.uk/news/article-397228/Flying-holiday-sin-says-bishop.html

BC Ferries. (2014, June 17). BC Ferries proudly celebrates 50 sears of Service . Retrieved from http://www.bcferries.com/about/history/history.html

BREA. (2013, March). The economic contribution of the international cruise industry in Canada 2012 .  Prepared for:  North West & Canada Cruise Association, St. Lawrence Cruise Association, Atlantic Canada Cruise Association, Cruise BC. Exton, PA: Business Research & Economic Advisors, p. 1-5.

Briggs, Josh.  (2008, May 1). How cruise ships work . Retrieved from http://adventure.howstuffworks.com/cruise-ship.htm

British Columbia Ministry of Transportation and Highways. (n.d.). Frontier to freeway: A short illustrated history of the roads in British Columbia. [PDF] Retrieved from http://www.th.gov.bc.ca/publications/frontiertofreeway/frontiertofreeway.pdf

British Columbia Ministry of Transportation and Infrastructure. (2012). Connecting with the world: An aviation strategy for British Columbia [PDF] . Retrieved from http://www.th.gov.bc.ca/airports/documents/2012_AviationStrategy.pdf

Brustein, Joshua and Caroline Winter. (2014, February 28). If Uber is killing taxis, what explains the million-dollar medallions.   Business Week . Retrieved from http://www.businessweek.com/articles/2014-02-28/if-uber-is-killing-taxis-what-explains-new-yorks-million-dollar-medallions

Canadian Geographic . (September/October 2000). Canadian aviation history.  Retrieved from http://www.canadiangeographic.ca/magazine/so00/aviation_history.asp

Canadian Museum of Flight. (2014). The history of flight in BC . Retrieved from http://www.canadianflight.org/content/history-flight-bc-0

Canadian Press. (2013, December 12). BC Ferries crash lawsuit targets electronics firm.   Huffpost British Columbia . Retrieved from http://www.huffingtonpost.ca/2013/12/22/bc-ferries-crash-lawsuit_n_4490818.html

CBC News. (2014, May 12.) MM&A Railway faces charges in Lac-Megantic disaster – Montreal – CBC News . Retrieved from http://www.cbc.ca/news/canada/montreal/mm-a-railway-faces-charges-in-lac-mégantic-disaster-1.2640654

CLIA. (2014, January 16). The state of the cruise industry in 2014: Global growth in passenger numbers and product offerings . Retrieved from http://www.cruising.org/regulatory/news/press_releases/2014/01/state-cruise-industry-2014-global-growth-passenger-numbers-and-product-o

Conference Board of Canada. (2012, September 13). Canada’s airlines hoping to return to the black in 2013. Retrieved from http://www.conferenceboard.ca/press/newsrelease/12-09-14/canada_s_airlines_hoping_to_return_to_the_black_in_2013.aspx

Cruise BC. (2014). Cruise BC, Canada – Cruise executives . Retrieved from http://www.cruisebc.ca/index.php?page=5

CTV News. (2014a).  Feds order Via Rail to address ‘safety’ issues at 6 Ottawa railway crossings . Retrieved from http://www.ctvnews.ca/business/feds-order-via-rail-to-address-safety-issues-at-6-ottawa-railway-crossings-1.1771156

CTV News. (2014b, October 1). Vancouver delays Uber, new cabs for six months. Retrieved from http://bc.ctvnews.ca/vancouver-delays-uber-new-cabs-for-six-months-1.2034892

Cubbon, Paul. (2010, October 22). Rocky economy can’t derail train company. The Globe and Mail. Retrieved from http://www.theglobeandmail.com/report-on-business/small-business/rocky-economy-cant-derail-train-company/article1241050/

David Suzuki Foundation. (2014). Air travel and climate change. Retrieved from http://www.davidsuzuki.org/issues/climate-change/science/climate-change-basics/air-travel-and-climate-change/

DBRS. (2010, May). Rating Canadian rental car securitizations . Retrieved from http://www.dbrs.com/research/232631

Dupuis, Jean. (2011, November 16). VIA Rail Canada Inc. and the future of passenger rail in Canada . Ottawa, ON: Library of Parliament. Retrieved from http://www.parl.gc.ca/Content/LOP/ResearchPublications/2011-93-e.htm#a8

Economist, The . (2011, December 22). Business quotations: Our favourite air lines . Retrieved from http://www.economist.com/blogs/gulliver/2011/12/business-quotations

Gill, Vijay and  R. Neil Raynor. (2013, September).  Growing Canada’s economy: A new national air transportation policy . Ottawa, ON: Conference Board of Canada, p. i -4. 

Government of Canada. (2014a, June 5). The Blue Sky Policy: Made in Canada, for Canada – Transport Canada . Retrieved from http://www.tc.gc.ca/eng/policy/air-bluesky-menu-2989.htm

Government of Canada. (2014b, September 3). Railway Safety Act (1985, c. 32 (4th Supp.)) – Transport Canada . Retrieved from https://www.tc.gc.ca/eng/acts-regulations/acts-1985s4-32.htm

Hermiston, Sandra and Lynda Steele (2014, August 5). Why it costs so much more to fly in Canada. CTV Vancouver News . Retrieved from http://bc.ctvnews.ca/why-it-costs-so-much-more-to-fly-in-canada-1.1733387

Hill, Catey. (2013, February 1). W hat’s behind the river-cruise boom.   Marketwatch . Retrieved from http://www.marketwatch.com/story/whats-behind-the-river-cruise-boom-2013-02-01

IATA. (2014a, June). IATA annual review 2014. Retrieved from http://www.iata.org/2014-review/reader.html?r=29/569#

IATA. (2014b). IATA-About us. Retrieved from http://www.iata.org/about/pages/index.aspx

Impact Project. (2012, January 20). Tracking harm: Health and environmental impacts of rail yards.  The Impact Project Policy Brief Series. [PDF] Retrieved from http://hydra.usc.edu/scehsc/pdfs/Rail%20issue%20brief.%20January%202012.pdf

InterVISTAS. (2005, April). BC regional airports: A policy guide to viability . [PDF] Prepared for AIM/Council of Tourism Associations, Vancouver, BC. Retrieved from http://www.intervistas.com/downloads/BC_Regional_Airports.pdf

Keller, James. (2013, April 22). Karl Lilgert, Queen of the North officer, explains how ferry crashed.   Huffpost British Columbia . Retrieved from http://www.huffingtonpost.ca/2013/04/22/karl-lilgert-queen-of-the-north_n_3134177.html

Kuittinen, Tero. (2014, September 19). Mobile apps are absolutely murdering San Francisco’s taxi industry. BGR . Retrieved from http://bgr.com/2014/09/19/uber-vs-lyft-vs-taxis/

Magrath, A. (2014, October 15). Longer than the shard and wider than a Boeing 747 wingspan: The world’s largest cruise ship sails into the UK for the first time.   Mail Online . Retrieved from http://www.dailymail.co.uk/travel/travel_news/article-2793859/oasis-seas-world-s-largest-cruise-ship-sails-uk-time.html

Natural Resources Canada. (2013, May 15). Impacts on transportation infrastructure . Retrieved from http://www.nrcan.gc.ca/environment/resources/publications/impacts-adaptation/reports/assessments/2004/ch8/10217

Northern Rockies Regional Airport. (2014). History . Retrieved from http://www.flynorthernrockies.ca/history

Operation Lifesaver Canada. (2014). Train safety FAQ. Retrieved from http://www.operationlifesaver.ca/facts-and-stats/train-safety-faq/

Orcutt, April. (2011, November). World’s most beautiful rerry Rides.”   Travel + Leisure . Retrieved from http://www.travelandleisure.com/articles/worlds-most-beautiful-ferry-rides

Owram, Kristine. (2014, July 5). Unfriendly skies await proposed low-cost airlines Canada jetlines, jet naked.   The Financial Post . Retrieved from http://business.financialpost.com/2014/07/05/unfriendly-skies-await-proposed-low-cost-airlines-canada-jetlines-jet-naked/#__federated=1

Proctor, Benn. (2014, June 3). Opinion: Time to reform Vancouver’s antiquated taxi industry . The Vancouver Sun. Retrieved from http://www.vancouversun.com/Opinion+Time+reform+Vancouver+antiquated+taxi+industry/9900418/story.html

PWC. (2012). Transportation & Logistics 2030, volume 5: Winning the talent race. [PDF] Retrieved from http://www.pwc.com/en_GX/gx/transportation-logistics/pdf/pwc-tl-2030-volume-5.pdf

Rocky Mountaineer. (2014). Canadian train travel, trips, rail journeys, vacations, holidays. Rocky Mountaineer . Retrieved from http://www.rockymountaineer.com/en_CA_BC/

Science Daily. (2013, June 17). Planes, trains, or automobiles: Travel choices for a smaller carbon footprint. Retrieved from http://www.sciencedaily.com/releases/2013/06/130617111345.htm

Tourism Vancouver. (2013, June). Vancouver Tourism master plan. [PDF]  Retrieved from http://www.ticketstonight.ca/includes/content/images/media/docs/TMP-Final-doc1.pdf

WestJet. (2014). About WestJet . Retrieved from https://www.westjet.com/guest/en/about/

YCharts. (2014, September). Apple Profit Margin (Quarterly). Retrieved from http://ycharts.com/companies/AAPL/profit_margin

Attributions

Figure 2.1  Sky Jet   by Jez  is used under a  CC-BY-NC-ND 2.0  license.

Figure 2.2  Airbus 380-800  by Ponte112  is used under a  CC-BY-NC-SA 2.0  license.

Figure 2.3  airplane 036   by MamaMia05  is used under a  CC-BY 2.0  license.

Figure 2.4  C.P.R. Mount Stephen House, Field, BC, 1909   by Musee McCord Museum has  No known copyright restrictions .

Figure 2.5  Sunset Cruise   by Evan Leeson  is used under a  CC-BY-NC-SA 2.0  license.

Figure 2.6  Uniworld River Cruises River Beatrice in Passau Germany   by Gary Bembridge  is used under a  CC-BY 2.0  license.

Figure 2.7   BC Ferry   by David Lewis  is used under a  CC-BY-NC-ND 2.0  license.

Figure 2.8 Lincoln Town Car   by Nathan  is used under a  CC-BY-NC-ND 2.0  license.

Figure 2.9  Baltimore Airport   by Lee Ruk  is used under a  CC-BY-SA 2.0  license.

Introduction to Tourism and Hospitality in BC Copyright © 2015 by Morgan Westcott is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

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Climate activists covered private jets in orange paint in a Taylor Swift-inspired stunt, but didn't get her plane

• Two climate activists were arrested after appearing to target Taylor Swift's jet.
• The activists broke into London's Stansted Airport and sprayed two jets with orange paint.
• Swift's jet wasn't at the airport at the time.

Two climate activists from the Just Stop Oil group were arrested after covering private jets in orange paint in a Taylor Swift -inspired stunt.

A video posted on X on Thursday showed the two activists breaking into a private airfield at London's Stansted Airport — where they claimed Swift's jet was parked — before spraying two jets with paint.

🚨 JUST STOP OIL PAINT PRIVATE JETS HOURS AFTER TAYLOR SWIFT'S LANDS 🔥 Jennifer and Cole cut the fence into the private airfield at Stansted where @taylorswift13 's jet is parked, demanding an emergency treaty to end fossil fuels by 2030. 💸 Donate — https://t.co/UwALfVtRmR pic.twitter.com/aORdvUuQmU — Just Stop Oil (@JustStop_Oil) June 20, 2024

However, a representative for Stansted Airport told Business Insider that Swift's jet wasn't at the airport when the incident occurred.

It's possible that Swift's aircraft originally landed at the airport before being moved. According to flight tracking data cited by The Independent , Swift's Falcon 7x landed at Stansted at around 11 p.m. on Wednesday.

A spokesperson for Essex Police told BI that a 22-year-old from Brighton, England, and a 25-year-old from Dumbarton, Scotland, had been arrested "on suspicion of criminal damage and interference with the use or operation of national infrastructure."

They were detained shortly after 5:10 a.m. on Thursday morning, the statement added.

"We are not anti-protest but we will always take action where criminal acts take place," Chief Superintendent Simon Anslow said in a statement obtained by BI.

Related stories

The protesters belonged to Just Stop Oil, a climate campaign group that has defaced famous artwork and landmarks, which most recently included spraying Stonehenge with orange paint.

A representative for Just Stop Oil confirmed to BI that the planes doused in paint did not belong to Swift.

They said the protest was "generally targeted at private planes," though the two people involved likely believed Swift's aircraft was at the airport.

The representative said the group singled out Swift's aircraft in its social media post because it is "the most emitting" of all celebrity private jets and because they believed that Stansted is where she usually keeps her private jet while in London.

BI previously reported that the singer spent more than 166 hours traveling in private jets between March and August of 2023 for the first leg of her widely popular Eras Tour.

However, according to a study by My Climate Tracker , cited by The Tab , Travis Scott was the celebrity with the most private jet use in 2023. The rapper took 137 flights, resulting in 6,061,300 kg of CO2 emissions, according to The Tab.

Meanwhile, Swift wasn't among the top 30 celebrities with the most private jet use in 2023, the outlet said.

That's a stark contrast to 2022.

According to Yard , a UK-based sustainability marketing firm, Swift produced the most CO2 emissions of all celebrities in 2022, with 170 flights and an average flight time of 80 minutes.

A spokesperson for Swift previously told BI that her jet is "loaned out regularly to other individuals" and to attribute most of the trips to the singer alone is "blatantly incorrect."

The singer's spokesperson also previously said she had purchased carbon credits to offset her jet use.

Swift is in London for the UK leg of the Eras Tour . She is expected to perform three sold-out shows at Wembley before returning in August for additional shows.

Watch: 5 cleanings that keep the travel industry running

• Main content

Travel Agency Business Plans

International travel agency business plan.

Adventure Travel International (ATI) is a start-up travel agency that specializes in adventure tourism and travel.

Tourism Website Services Business Plan

Spanish Resources will use its marketing resources to provide website design and overall Web strategy for resort operators and other tourist destinations in Mexico.

Travel Agency - Upscale Business Plan

Panache Travel Group is a travel agency providing exclusive travel experiences to discerning wealthy, and corporate clients.

Travel Agency Business Plan

Adventure Excursions Unlimited provides upscale hard-adventure sport/travel arrangements and packages to wealthy clients.

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Sephats Tours intends to provide individual and group travel to leisure clients.

Travel and tourism is a fun and rewarding industry. Starting with a good business plan will help you succeed in this exciting field. To get started, check out a sample business plan for an upscale travel agency, international travel agency, sightseeing tours business, and other travel related business.

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Cracking the world’s biggest business-travel market

Asia is the world’s biggest market for business travel, accounting for 38 percent of about $1 trillion in annual spending. 1 1. GBTA BTI outlook– Annual global report & forecast: Prospects for global business travel, 2014–2018 , Global Business Travel Association (GBTA), July 2014, gbta.org. And in the next few years, its importance will only grow, as the market is expected to expand four times as quickly as the North American market and more than twice as fast as the European market. 2 2. GBTA BTI outlook – Annual global report & forecast: Prospects for global business travel, 2014–2018 , Global Business Travel Association (GBTA), July 2014, gbta.org.

With Asia’s position growing, the industry must work harder to understand the needs of the Asian business traveler, which we define as those based in the region. To help get a clear picture of the needs of this important segment, we surveyed more than 2,500 business travelers in China, India, Indonesia, Japan, and Singapore and interviewed 19 corporate-travel managers in various industries in the region. In addition, we analyzed the booking and spending patterns of Asia’s business travelers, using data provided by Amadeus and Visa.

The study underscored nuances that must be addressed to gain these travelers’ business. Three stand out. First, Asia’s business travelers are gaining greater autonomy in their travel decisions, making it critical to address their preferences, not just those of their employers. Second, they value convenience above all else. And finally, Asia’s business travelers can be divided into four archetypes, each with its own distinct set of needs and preferences.

Asian business travelers are gaining greater autonomy

Business travelers in Asia have an unexpected degree of autonomy when making travel plans, especially in areas such as booking flights and hotels. Our survey found that 69 percent of respondents are able to choose their airlines, either from a preapproved list or without restrictions. In fact, this included 11 percent with no constraints on either provider or price. Similarly, 74 percent of respondents said they have the same degree of freedom in picking a hotel, of which 9 percent said they have no restrictions whatsoever.

Would you like to learn more about our Travel, Logistics & Transport Infrastructure Practice ?

Yet despite this high degree of autonomy, Asia’s business travelers want even more. Our survey found that the top three booking methods are all autonomous: the strongest preference is to book travel independently through online travel agents, the next is to book directly with providers, and the third is to use their company’s online-booking tool. Companies also are recognizing the benefit of offering employees more flexibility and choice, with many reporting increased compliance and reduced administrative costs. Techniques such as gamification (where employees are rewarded for choosing lower-cost travel options) are also emerging to promote compliant, cost-conscious behaviors.

Clearly, the business-travel industry in Asia can no longer rely excessively on relationships with corporate-travel managers, but it must also gain greater insights into the wishes of the travelers themselves. Some travel companies are already doing this and targeting business travelers directly. For example, when one airline was taken off the preferred list by a major corporation, the airline contacted the most lucrative frequent fliers in that company and offered them the highest loyalty status and all the accompanying perks if they maintain certain mileage thresholds.

Travelers value convenience above all else

Across all demographics explored—including age, frequency of travel, and company size—Asia’s business travelers place the greatest importance on one preference: convenience. For air travel, this often means convenient flight times and direct flights. For hotels, it means proximity to the office and services such as Wi-Fi that allow for more efficient work. Convenience dwarfed other priorities suggested in the survey, such as value for money and award-winning service. Indeed, if respondents deviate from corporate-travel policy, their most frequently cited reason is to enhance convenience.

This means travel companies must understand they are, among other things, in the business of selling time: more specifically, time saved from business and travel demands that could be put to other uses like leisure. In focusing on delivering greater efficiencies, some obstacles such as flight times and hotel locations cannot be addressed quickly. Other measures, however, such as operational efficiencies, are more readily at hand.

For example, in 2010 Delta Air Lines made it a priority to improve its on-time arrivals; it moved from the bottom of the performance list among US airlines to near the top within five years. In addition, it offered businesses travel credits of up to $250,000 if its performance were to fall behind that of its major competitors. 3 3. Michael Sasso, “Delta to pay business fliers if it’s later than American, United,” Bloomberg , September 1, 2015, bloomberg.com.

Four Asian business-traveler archetypes

Our survey identified clear differences in needs from country to country. For example, respondents from Singapore put the greatest emphasis on comfort, while those in India were more interested in digital planning and booking tools. Yet it also pinpointed four common traveler archetypes: service seekers (34 percent of respondents), stereotypical suits (32 percent), belt tighteners (17 percent), and points maximizers (17 percent).

These four groups transcend geographic boundaries and are just as important to understand as national differences. Each group has its own focus: stereotypical suits clearly emphasize convenience; service seekers, service and brand; belt tighteners, price and value; and points maximizers, loyalty programs and comfort. As a result, differentiated offerings are required to engage, serve, and capture the business of each archetype. Stereotypical suits, for instance, require prioritized, expedited services that save them time and eliminate hassle. To win service seekers, however, travel companies must appeal to their desire for distinctive experiences with exclusive amenities and offers. Value-focused, no-frills services would be most attractive to belt tighteners, while some companies appeal to points maximizers by establishing networks and partnerships that allow travelers to gain benefits across different travel providers.

Facebook and the future of travel

Travel companies already collect a wealth of data from their customers, from the seemingly trivial, such as seat preferences, to the clearly valuable, such as dining habits. With the right capabilities, companies can analyze these data to segment customers better, generate useful insights, and drive customer offerings. For example, real-time analysis could present suggestions for the next products to buy, such as a specific wine from the duty-free cart, or generate dynamic bundling offers, such as upgrades or empty neighboring seats, with prices based on availability.

Asia has become the world’s largest business-travel market, and trends suggest its importance will only grow. Yet as travel decisions migrate from corporate-travel desks into the hands of individual travelers, companies must adjust their behavior accordingly. In particular, they need to develop a clearer understanding of the varying needs of Asian business travelers and address these directly.

This article is an edited extract from Asian business travelers: Five things you need to know (PDF–2,260KB) and is reprinted here by permission. The report was launched at the Asia Travel Leaders Summit, organized by the Singapore Tourism Board, where McKinsey was a knowledge partner; summit partners Amadeus and Visa respectively supplied quantitative booking and spending data.

Alex Dichter is a senior partner in McKinsey’s London office, and Cheryl SH Lim is a partner in the Singapore office, where Diaan-Yi Lin is a senior partner.

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PUBLISHED : 19 Jun 2024 at 18:56

WRITER: Supoj Wancharoen

Japanese investors are expected to increase their activity in Thailand, following a forecast by the Japan External Trade Organization (Jetro) of a rebound in tourism and business in the second half of this year, according to Transport Minister Suriya Jungrungreangkit.

Mr Suriya made the comment after talks with Jetro Bangkok president Kuroda Jun and executives at the Japanese Chamber of Commerce in Thailand.

Participants discusses the latest Jetro report on business sentiment of Japanese corporations in Thailand for the first half of this year, and pledges to cooperate more in the field of transport.

The report found that business sentiment had levelled off in the first half but was expected to improve in the next six months as a result of the Thai government’s planned economic stimulus measures and ramped-up tourist spending during the high season.

In trying to gauge how much Japanese firms will invest in Thailand this year, the survey found that 45% said their spending would remain unchanged, 23% aim to increase it and 18% said they would reduce their investment.

Asked about the export outlook for the second half, 48% of respondents expected no change, 33% plan to increase exports, and 20% anticipated a decline.

The major export markets of Japanese companies in Thailand include Vietnam, India and Indonesia, and their expectations were based on the assumption the Thai baht will stay at the level of around 35.50 to the US dollar. The currency is currently trading around 36.50 .

The challenges Japanese companies face while investing in Thailand are intense competition from other foreign companies (65%), rising labour costs (43%), increasing material prices (42%) and exchange-rate fluctuations (27%). Respondents were allowed to give multiple answers.

Asked what measures Japanese firms would like to see the Thai government take, they listed stimulating consumption (31%), solutions for environmental problems (21%) and improved infrastructure (20%).

Areas where Japanese companies agree the government has done well so far include basic infrastructure (25%), visa and permit issuance (19%) and adopting digital systems in state administration (12%).

Mr Suriya said the government’s Ignite Thailand policy also received positive feedback as the survey showed Japanese companies have high expectations in terms of logistics improvement (41%), future automotive manufacturing (33%), tourism (23%) and the medical and health care sectors (20%).

The minister said Japan has shown interest in various infrastructure development plans presented by the ministry.

These include the expansion of airports, such as the third-phase development of Don Mueang Airport, construction of the south terminal of Suvarnabhumi Airport, expansion of Chiang Mai and Phuket airports, and construction of Lanna airport in the North and Andaman airport in the South.

In addition, Japan has shown interest in the nationwide double-track railway project and 20-baht flat fare policy for mass-transit rail service in Bangkok.

It also suggested a feeder system should be put in place to ensure more convenience and help save costs for commuters.

• Japanese investment

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