CHAPTER 5

PASSENGER TRANSPORTATION

Learning Objectives

  • Comprehend the importance of transportation in tourism.
  • Understand the airline industry and its role in travel.
  • Examine the domination of the automobile in travel.
  • Learn about the role of rail and motor coach travel.
  • Study the cruise industry.

Chapter Outline

Outline SummaryPoints of Emphasis
  1. Introduction
/ For many millenniums people have been traveling – from on foot to riding in a supersonic aircraft. Air travel dominates long distance and middle distance travel and autos short trips and most domestic journeys. Rail is limited in the U.S. but is still growing in Europe and other parts of the world. Motor coaches reach the most communities in many countries. Cruises are the fastest growing mode but still attract just a small percentage of the population. The expected growth of world tourism will increase demands on transportation giving rise to such present and future problems as: congestion, safety and security, environment, and seasonality.
  1. The airline industry
/ Has grown from infant to giant in 50 years. World airlines now carry over 2.2 billion passengers per year. The U.S. airline industry employs about 550,000 people and is a $150 billion enterprise, but it is not healthy. Low fare airlines are having a major impact. U.S. airlines experienced heavy financial losses in recent years. New planes, the Airbus A380 and the Boeing 787 Dreamliner are the latest technology. More consolidation is predicted for the airline industry. Their trade association is the Air Transport Association of America.
  1. The rail industry
/ In the U.S. Amtrak is the organization carrying passengers. In Canada future passenger rail travel depends on VIA Rail. In Europe and in Asia particularly, rail is much more popular with high speed trains providing excellent service, and in the future will probably be even more competitive with air travel.
  1. The motor coach industry
/ Well suited to trips of 250 KM or less each way. Bus companies have upgraded their equipment with comfortable seats, picture windows, and restrooms. This mode provides more ridership to and from rural and small towns than air or rail. Motor coaches now have a passenger reservation system so that individual seats can be reserved. Most of the small companies are charter and tour bus companies.
  1. The automobile
/ Accounts for most of the world’s travel mode. In the U.S., autos including small trucks and RV’s provide 80 percent of all person-trips compared to 17 percent by air, 1 percent by bus and 1 percent by rail. Auto travel will likely increase due to its convenience, flexibility, and affordability. Rental cars provide essential ground transportation, especially for air travelers. Car hire has grown even faster than air travel. There are over 25 million recreation vehicles (RV’s) in the U.S. Taxi and limousine services are critical to tourism as are oil companies worldwide. Auto clubs are vital to tourism. The American Automobile Association (AAA) is the largest tourism group in the world with over 44 million members in the U.S. and Canada. There are similar groups in most other countries having large auto ownership.
  1. The cruise industry
/ Currently the fastest-growing segment. Both passenger numbers and ship numbers are growing. Cruises are really floating resorts rather than providing point-to-point transportation. The industry enjoys a very high level of passenger satisfaction and repeat business. In 2007, over 12.6 million passengers took a cruise for a 4.1 percent increase over 2006. Another 40 new ships are contracted for or planned to be added to the North American fleet through 2012.

Chapter Overview and Suggestions

Chapter 5 provides an overview of transportation and points out how it is an essential ingredient in tourism. It is the lifeblood of tourism. While trip planning and destination development are important in tourism, the “real action” starts when someone leaves home.

There is a constant effort on the part of all passenger transportation companies to provide ever-increasing comfort, convenience, efficiency, and affordability in their travel services. Thus, the entire industry is confidently preparing for a growth of business into the next century.

Key Concept Definitions

AIRLINE INDUSTRY: Dominates the long-distance and mid-distance market. Has established aglobal network of routes serving most large cities and many smaller ones, but does not have the accessibility of motor coaches. World-wide carries over 1 billion passengers yearly.

ALLIANCES: Prominent in the airline industry, these are associations to further the interests of the members.

AMERICAN AUTOMOBILE ASSOCIATION: “Everything in life is somewhere else and you get there in a car” sums up the popularity of autos. The AAA has over 49 million members with a network of over 139 independent auto clubs in the United States and Canada. The club provides emergency road service, distributes tour-book guides, sells travelers checks, arranges car rentals, has their own credit card, arranges auto loans, and operates retail travel agencies.

AUTOMOBILE: The most predominant mode of personal transportation in all developed countries. With population growth and prospects for tourism increases worldwide, this transportation mode is expected to continue its popularity.

CRUISE LINES: Fastest growing segment of tourism. The cruise lines are expanding their fleets with more and larger ships, adding new amenities and new ports of call.

MOTOR COACHES: Particularly well suited for trips of 250 KM or less. Coaches are the most available public transportation serving rural areas and small cities and towns. Motor coach travel has now become a minor part of the U.S. passenger market and caters mainly to lower income non-business travelers.

OIL COMPANIES: Have a big stake in world tourism. Most companies publish road maps and travel guides such as the Mobile Travel Guide. They also operate travel clubs which provide motorists with various services and forms of assistance.

RAIL TRAVEL: In the U.S. rail passenger travel depends on Amtrak. (See above for details on Amtrak.) In Canada, a similar dependency rests with VIA Rail.

RECREATIONAL VEHICLES: There are currently 8.2 million RVs on the road in the U.S. They average 4,500 miles a year. Thus, owners of such equipment have become an important segment of tourism.

RENTAL CARS: This is a $XX billion industry with many car rental companies, operating at more thousands of cities, usually at airports or urban centers. About 32 million people rent cars in the U.S. each year. Such rental cars are also available in most developed countries.

SAFETY ANDSECURITY: Insuring safety and security in transportation is a basic requirement for tourism. Acts of terror and hijackings are most devastating and their widespread publicity is a travel deterrent.

TAXES: There seems to be an increasing trend to impose new and higher taxes on personal travel. Such taxes dampen demand as they typically result in higher prices for all services received. Air transportation has been particularly hard hit. Examples are ticket taxes, international departure taxes, customs fees, airport fees, passenger facility charges, and security charges.

TAXI AND LIMOUSINE SERVICE: Essential for tourism, particularly in conjunction with air transportation.

TRANSPORTATION (IMPORTANCE OF): Adequate, reliable, convenient, affordable, and comfortable transportation is vital to tourism’s growth. Any problems in transportation have the potential of creating an unfavorable image of any destination.

 INTERNET EXERCISEs

Activity 1

Site Name: Cruise Lines International Association (CLIA)

URL:

Background Information: CLIA’s primary objective is to help the some 16,000 CLIAaffiliated agencies become more successful at capitalizing on the booming and profitable cruise market. CLIA has 23 member lines that represent 97% of the cruise industry capacity.

Exercises:

1.You are working for a travel agency and have a family in your office. You realize early in the conversation that the wife is very interested in a cruise but the husband has some definite reservations. After probing for several minutes, the husband identifies the following concerns and questions he has about cruises: (1) I will get bored and feel confined, (2) I am afraid I will get sea sick, (3) cruises are only for rich people, (4) what can you do with kids on a ship, and (5) what is there to do at night? How would you address these concerns/questions in order to sell this family a cruise?

Answers:

1.Answers to questions can be found at the following URL:

and examining First Time Cruiser FAQs.