Chapter 2. Travel Services

2.5 Conclusion

Travellers continue to seek authentic experiences. The tools they use to research and book these experiences are constantly changing due to innovations in technology. Destinations are also challenged by limited financial resources and strong competition for tourist dollars from other iconic and even lesser known locations. The personalisation of travel suggests that independent travel will have a stronger presence than group travel, however, we must always consider the type of traveller. The travel services sector is being forced to innovate at a startling rate.

In the past, face to face consultations with a travel agent was paramount for booking both leisure and business travel. Technology and global circumstances, such as pandemics, financial collapses, and terrorism, have put pressure on tourism and travel services. With the development of OTAs and emerging and disruptive technologies, the travel services landscape is constantly changing.

Now that we have an understanding of travel services we will continue to explore the other four sectors of tourism: transportation, accommodation, food and beverage, and recreation and entertainment.

Key Terms

  • Association of Canadian Travel Agencies (ACTA): a trade organization established in 1977 to ensure high standards of customer service, engage in advocacy for the trade, conduct research, and facilitate travel agent training
  • Canada’s West Marketplace: a partnership between Destination BC and Travel Alberta, showcasing BC travel products in a business-to-business sales environment
  • Canadian Association of Tour Operators (CATO): a membership-based organization that serves as the voice of the tour operator segment and engages in professional development and networking in the sector
  • Community destination marketing organization (CDMO): a DMO that represents a city or town
  • Destination management company (DMC): a company that creates and executes corporate travel and event packages designed for employee rewards or special retreats
  • Destination marketing organizations (DMOs): also known as destination management organizations; includes national tourism boards, state/provincial tourism offices, and community convention and visitor bureaus
  • Familiarization tours (FAMs): tours provided to overseas travel agents, travel agencies, RTOs, and others to provide information about a certain product at no or minimal cost to participants — the short form is pronounced like the start of the word family (not as each individual letter)
  • Fully independent traveller (FIT): a traveller who makes his or her own arrangements for accommodations, transportation, and tour components; is independent of a group
  • Inbound tour operator: an operator who packages products together to bring visitors from external markets to a destination
  • Online travel agent (OTA): a service that allows the traveller to research, plan, and purchase travel without the assistance of a person, using the internet on sites such as Expedia.ca or Hotels.com
  • Outbound tour operator: an operator who packages and sells travel products to people within a destination who want to travel abroad
  • Receptive tour operator (RTO): someone who represents the products of tourism suppliers to tour operators in other markets in a business-to-business (B2B) relationship
  • Tour operator: an operator who packages suppliers together (hotel + activity) or specializes in one type of activity or product
  • Tourism services: other services that work to support the development of tourism and the delivery of guest experiences
  • Travel agency: a business that provides a physical location for travel planning requirements
  • Travel agent: an individual who helps the potential traveller with trip planning and booking services, often specializing in specific types of travel
  • Travel services: under NAICS, businesses and functions that assist with the planning and reserving components of the visitor experience
  • Visitor centre: a building within a community usually placed at the gateway to an area, providing information regarding the region, travel planning tools, and other services including washrooms and Wi-Fi

Exercises

  1. Explain, either in words or with a diagram, the relationship between an RTO, tour operator, and travel agent.
  2. Who operates the provincial network of Visitor Centres? Where are these centres located?
  3. List two positives and two negatives of OTAs within the travel services industry.
  4. With an increase growth in mobile technology, how are travel services adapting to suit the needs and/or demands of the traveller?
  5. Choose an association that is representative of the sector you might like to work in (e.g., accommodations, food and beverage, travel services). Explore the association’s website and note three key issues it has identified and how it is responding to them.
  6. Choose a local tourism or hospitality business and find out which associations it belongs to. List the associations and their membership benefits to answer the question, Why belong to this group?

Case Studies

Case Study One: BC Government Response to COVID-19 for Community Destination Marketing Organizations that participate in the Resort Municipality Initiative (RMI)

Read the news release B.C. government announces over $10 million for resort municipalities.

  1. Will or was this response be enough for the DMO’s to sustain themselves?
  2. Will or was tourists return to these iconic BC tourism sites?
  3. What was the impact to the local economies at these RMI destinations?

 

Case Study Two: Online Travel Agents Sue Skiplagger.com

In late 2014, an online travel agent and airline combined forces to sue a 22-year-old and his company Skiplagged.com. Skiplagged helped users find less expensive flights by uncovering “hidden city” tickets. These are flights with stopovers in multiple locations, whereby the passenger gets off at one of the stopover cities rather than the final destination (Harris and Sasso, 2014). Hidden city tickets work when the cost to travel from point A to point B to point C is less expensive than a trip from point A to point B. Passengers book the entire flight but get off at the stopover. This practice is generally forbidden by airlines because of safety concerns and challenges to logistics as it renders passenger counts inaccurate, causing potential delays and fuel miscalculations. If discovered, it can result in a passenger having his or her ticket voided.

The lawsuit against Skiplagged founder Aktarer Zaman stated that the site “intentionally and maliciously … [promoted] prohibited forms of travel” (Harris and Sasso, 2014). Orbitz (an OTA) and United Airlines claimed that Zaman’s website unfairly competed with their business, while making it appear these companies were partners and endorsing the activity by linking to their websites.

Based on this case summary, answer the following questions:

  1. What are the dangers and inconveniences of having passengers deplane partway through a voyage? In addition to those listed here, come up with two more.
  2. Could this lawsuit and the ensuing publicity result in unintended negative consequences for United and Orbitz? What might these be?
  3. On the other hand, could the suit have unintended positive results for Skiplagged.com? Try to name at least three.
  4. Should Zaman be held responsible for facilitating this type of travel already in practice? Or should passengers bear the responsibility? Why or why not?
  5. Imagine your flight is delayed because a passenger count is inaccurate and fuel must be recalculated. What action would you take, if any?
  6. Look up the case to see what updates are available (United Airlines Inc. v. Zaman, 14-cv-9214, U.S. District Court, Northern District of Illinois (Chicago). Was the outcome what you predicted? Why or why not?

References

ACTA (2020a). Membership. Retrieved from http://acta.ca/membership

ACTA. (2020b). About us. Retrieved from www.acta.ca/about-us

ADME. (2014). What is a DMC?. Retrieved from https://www.admei.org/

Alba, Davey. (2015, January 23). Expedia buys Travelocity, merging two of the web’s biggest travel sites. WIRED. Retrieved from www.wired.com/2015/01/expedia-buys-travelocity-merging-two-webs-biggest-travel-sites/

Amadeus. (2014). Trending with NextGen travelers [PDF]. Retrieved from https://extranets.us.amadeus.com/whitepaper/nextgen/next_gen_travel_trends.pdf

Amadeus. (2020). Online Travel Agencies. Retrieved from https://amadeus.com/en/industries/online-travel-agencies

Associated Press. (2014, March 17). Helena judge rejects state’s lawsuit against online travel companies. The Missoulian. Retrieved from http://missoulian.com/business/local/helena-judge-rejects-state-s-lawsuit-against-online-travel-companies/article_61b115d2-adfe-11e3-9b8d-0019bb2963f4.html

British Columbia (B.C.) Government. (2014). Tourism Builds Jobs & Communities in B.C.[PDF]. Retrieved from www2.gov.bc.ca/assets/gov/tourism-and-immigration/tourism-industry-resources/tourismbuildscommunities.pdf

BTN Group. (2014). Global travel trends 2014. Business Travel News. [PDF] Retrieved from www.businesstravelnews.com/uploadedFiles/White_Papers/BTN_110113_Radius_1206_FINAL.pdf

Canadian Tourism Commission. (2020). Rendez-vous Canada 2020 – About. Retrieved from http://rendezvouscanada.ca/.about

Carey, R., Kang, K., & Zea, M. (2012). The trouble with travel distribution. Retrieved from  www.mckinsey.com/insights/travel_transportation/the_trouble_with_travel_distribution

CATO. (2020). About the travel industry. Retrieved from www.cato.ca/industry.php

Consumer Protection BC (2020). Who We Are. Retrieved from https://www.consumerprotectionbc.ca/about-us/

CWT Travel Management Institute. (2014). Who’s equipped for mobile services.  www.cwtinsights.com/demand/whos-equipped-for-mobile-services.shtml

Deloitte Development LLC. (2019). Tech Trends 2019: Beyond the Digital Frontier – Intelligent Interfacces [PDF]. Deloitte Insights. Retrieved June 2020, from https://www2.deloitte.com/content/dam/Deloitte/br/Documents/technology/DI_TechTrends2019.pdf

Destination BC. (2020), How to Work with Receptive Tour Operators. Retrieved from https://www.destinationbc.ca/learning-centre/how-to-work-with-receptive-tour-operators/

Destinations International (2020). Community. Retrieved from www.destinationsinternational.org/community

Economist, The. (2014, June 21). Sun, sea and surfing. Retrieved from www.economist.com/news/business/21604598-market-booking-travel-online-rapidly-consolidating-sun-sea-and-surfing

ETC Digital. (2014). Mobile smartphones – North America. Retrieved from http://etc-digital.org/digital-trends/mobile-devices/mobile-smartphones/regional-overview/north-america/

Expedia, Inc. (2014). The future of travel report. [PDF] Retrieved from http://expediablog.co.uk/wp-content/uploads/2013/10/Future-of-Travel-Report1.pdf

GBTA. (2020). About GBTA Canada. Retrieved from https://www.gbta.org/membership-and-communities/chapters-and-regions/canada

Goeldner, C. & Ritchie, B. (2003). Tourism: principles, practices, philosophies, 9th edition. Hoboken, New Jersey: John Wiley & Sons, Inc.

go2HR. (2020, May 16a). Career Explorer. Retrieved from go2HR – The Resource for People in Tourism: https://www.go2hr.ca/career-explorer#explorer

go2HR. (2020, May 16b). Essential Tips – Travel Services. Retrieved from go2 Tourism HR Society: https://www.go2hr.ca/essential-tips-info/travel-service

go2HR. (2020, May 28c). Find a Job. Retrieved from go2HR: https://www.go2hr.ca/jobs?act2=jbr&sec=17&sector=Travel+Services

go2HR, (2020, May 28d) What is Tourism – Travel Services. https://www.go2hr.ca/getting-know-bcs-tourism-industry/what-is-tourism/travel-services

Harris, A. & Sasso, M. (2014). United, Orbitz sue travel site over ‘hidden city’ tickets. Bloomberg Business. Retrieved from www.bloomberg.com/news/articles/2014-11-18/united-orbitz-sue-travel-site-over-hidden-city-ticketing-1-

HelloBC. (2020a). Home Page. Retrieved from www.hellobc.com/british-columbia.aspx

HelloBC. (2020b). Plan Your Trip, Accommodations. Retrieved from https://www.hellobc.com/plan-your-trip/accommodations/

HelloBC. (2020c). Visitor Information & Services. Retrieved from https://www.hellobc.com/plan-your-trip/visitor-information-services/

HelloBC. (2020d). Regions. Retrieved from www.hellobc.com/british-columbia.aspx

IBIS World. (2020). Travel Agencies in Canada – Market Research Report. Retrieved from https://www.ibisworld.com/canada/market-research-reports/travel-agencies-industry/

Jonview Canada. (2020). About Us. Retrieved from https://www.jonview.com/App/aboutus.cshtml

NSTHRC. (2021). About Us. Retrieved from https://www.tourismhrc.com

Offutt, B. (2013). PhoCusWright’s travel innovations & technology trends: 2013 and beyond. [PDF] Retrieved from www.wtmlondon.com/files/pcwi_traveltechtrends2013_worldtravel.pdf

PATA, (2019) The Future of Travel is Personalization at Scale, Retrieved from https://pata.org/store/wp-content/uploads/2019/08/PATA-VE-Bulletin-September-2019.pdf

Prince of Whales. (2020). About us. Retrieved from https://princeofwhales.com/about-us/

Smyth, M. (2014, November 20). Why is the BC government shutting down popular tourist info without consulting industry? The Vancouver Sun. Retrieved from www.theprovince.com/life/Smyth+government+shutting+down+popular+tourist+info+centres+without+consulting+industry/10396500/story.html#__federated=1

StatsCan. (2018, March 23). North American Industry Classification System (NAICS) Canada 2012. Retrieved May 16, 2020, from Statistics Canada: https://www23.statcan.gc.ca/imdb/p3VD.pl?Function=getVD&TVD=118464&CVD=118471&CPV=561510&CST=01012012&CLV=5&MLV=5

Tourism HR Canada. (2020). Tourism Facts – Labour Market Information. Retrieved from www.tourismhr.ca/labour-market-information/tourism-facts/

Tourism Nova Scotia (2020). About Us. Retrieved from https://www.tourismns.ca/about-us

Tourism Vancouver (2020). About Us. Retrieved from https://www.tourismvancouver.com/about/

Yukon Department of Tourism and Culture. (2020). Tourism sectors. Retrieved from www.tc.gov.yk.ca/isu_sectors.html

License

Icon for the Creative Commons Attribution 4.0 International License

Introduction to Tourism Copyright © 2020 by NSCC is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted.

Share This Book