Tourism and Transportation

UNIT 9: TOURISM AND
TRANSPORTATION
16/04/16
E.U. de TURISMO .UCM.CEES
TOURISM AND TRANSPORTATION
The evolution and development of the

transportation industry has been one of the
most important facts to support the travel
industry evolution.
Transportation is one of the main touristic
services that can be sold individually or with
other
complementary
service
as
accommodation creating packages.
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To have an adequate communication infrastructure

is really important for any destination and will make
an advantage in the competition with other
destinations.
Lets analyze the different means of transportation

comparing some issues as the real time of travel,
price, how comfortable they are, geographical
limitations or environmental impact.
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MEANS OF TRANSPORTATION ANALYSIS

REAL TIME OF THE TRIP
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That includes, the time within the

transport during the travel and some time
you have to use even if youre not within
the transportation itself (transfers, waiting
time, etc)
REAL TIME OF THE TRIP
The WTO has established a competitive table to

measure the different means of transportation
according to the distance to cover:
Car and Bus Less than 1000 Km.
Railway Between 200 and 500 Km.
Boat Just till 300 Km.
Plane More than 1000 Km.
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PRICE
Its maybe the most important issue for the client,

together with distance and duration of the trip.
Traditionally, the plane used to be the most

expensive
mean
of
transportation
but
competitiveness in the market and the development
of the LCC has changed this fact.
The car is the only one that can present a collective

price shared between the different users.
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AUTONOMY
Understood as the capacity of the user to

organize the trip as he wants and without
depending on external factors. Of course, the
car presents the highest levels of autonomy
for tourists.
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COMFORT
That we could divide in physic comfort

(spaces, sits, etc) and level of comfort
of the service we get (catering, service
staff,
video,
complementary
commodities, etc.)
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SECURITY
Which is really important to be
competitive in the market nowadays.
There are two types of security:
objcetive, based in the figures and
subjective, that has to do more with
feelings
and
sensations
of
the
passengers.
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SECURITY
According to the figures, the plane is the

safest mean of transportation, 15 times safer
that the car, 6 times more than the boat and
4 times more than the train.
Theres a big difference in the figures

between the more industrialized and poorer
areas focusing on security.
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GEOGRAPHIC LIMITATIONS
Its an issue that limits the capacity to

chose. The best possibility for any
destination is to develop every
possibility to depart and arrive for
their inhabitants and tourists.
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11
ENVIRONMENTAL IMPACT
The direct or indirect impact on the environment is

an issue that worries clients these days and this
trend will be increased in the future.
Its not only pollution and CO2 emissions but also

visual, acoustic impacts, etc.
Surely, the train wins this race towards the more

eco-friendly mean of transportation.
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CONCLUSSIONS
It looks like geographic limitations, price and time

are the most important issues for the customers to
choose a mean of transportation.
For the short-haul, competitors are car and train.
For middle distances, the plane and the train are the
main competitors.
For long-haul travel, the plane has no competition in

the market.
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SOME MORE CONCLUSSIONS
In this moment when economic profits are an important

issue, the different means of transportation are becoming
private and everyone is competing through:
An important technological advance in their facilities and

services.
Some policies to optimize benefits reducing costs,

changing rates and adapting their operations to the
market demands.
A higher environmental awareness.
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AIR TRANSPORTATION
The evolution and development of airlines

has been one of the keys for the
development of the travel industry making
possible to transport people and goods
between long distances.
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The airlines industry evolution can be studied in

two ways:
The technical and technological inventions and

development.
The regulation of the air through the AIR

LIBERTIES (Warsaw, 1929, and Chicago, 1944,
agreements). Its the creation of the framework
between the different countries making possible to
transport people and goods from and to the
different countries giving some liberty to the
commercial airlines and establishing the rules.
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TECHNICAL EVOLUTION OF THE AVIATION
Started in the first decades of the 20 century.

1927, Charles Lindbergh, 1 overseas (Atlantic) travel
without scales.
Huge evolution in the 2 World War.
After the 2 WW, the first commercial companies are
created.
The international organizations to legislate this
industry are created (OACI and IATA)
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From 1960, the first charter flights begin to

operate.
In 1963 the Boeing 747 Jumbo appears,

first plane to have a wide cabin that allows
more passengers (nearly 500) and also
makes travel for long distances cheaper.
Constant evolution in number of flights and

capacities since then.
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THE AIR LEGISLATION
The aviation industry still nowadays in a

liberalization process that started in 1978 with
the Airline Desregularization Act, that caused an
important desregularization for the activities of
the aviation companies fostering the competition
between them and with the idea to increase the
traffic.
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INTERNATIONAL ORGANIZATION FOR CIVIL

AVIATION (OACI)
Created
in
1947,
its
Governmental
organization that belongs to the UN, and its

main objective is to develop the civil aviation
in the safest and best way.
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AVIATION (OACI)
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The OACI fixes the rules that regulate the

international air traffic and issues as:
Communication systems and support for air
navigation and ground signage.
Airports and landing areas features.
Air regulations and control transit tools.
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AVIATION (OACI)
Operative staff and mechanics license

management
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Planes registration and identification
Immigration and border policies
Security and efficiency navigation management.

Accidents investigation
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INTERNATIONAL AIR TRANSPORT ASSOCIATION

(IATA)
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International
association
of
air
companies created in La Habana in 1945.
They are coordinated with the OACI, that

establishes the fields for them to work.
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INTERNATIONAL AIR TRANSPORT

ASSOCIATION (IATA)
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Some of its functions are:

Rates and international timetables
coordination
Fostering of the cooperation and
networking between the different
airlines.
Standarization of rules, signs and
codes for the airports and tickets.
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INTERNATIONAL AIR TRANSPORT

ASSOCIATION (IATA)
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Relationship with the travel agencies.

Cooperation with the OACI and other
institutional organizations.
Regulation of the passenger and
goods traffic.
Legal services for the airlines.
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THE AIRLINES
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We can divide companies in three levels:
First level (long haul and a wide net of

routes).
Second level (mainly middle distance and

short routes).
Third level (regional character).
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THE AIRLINES
The classic division we can do with airlines is:
Regular: those that fly with previously fixed schedule.
Charters: they dont have fixed timetables and they

depend on the private clients they get, mainly travel
agencies and groups.
Low cost carriers: regular companies that have

established new management models that allow them
to reduce costs and offer lower prices.
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AIRLINES
There are some reasons for the airlines to join

integration strategies in the market right now:
Increasing trend to a globalized economy in the

markets.
Commercial aviation liberalization process.
Reduce costs and have better results in the
company.
Airlines struggling for the crisis.
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AIRLINES
The main alliances of the airlines in the market
are:
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STAR ALLIANCE: www.staralliance.com

ONE WORLD: www.oneworld.com
SKYTEAM: www.skyteam.com
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AIRLINES OPERATIVE PROCESSES
Some issues to think about related with how

these companies work in the international market
are:
The schedule of every flight is always shown in

local time.
The cost of the planes is so high that airlines

need to maximize benefits operating as many
flights as possible and maximum capacity as
possible.
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Airlines have to match their flights with the airports availability

and adapt their offer to the slots that airports can offer them
and build a strategy to obtain the best possibilities.
There are some strategies that help companies to reduce costs

cooperating with other companies as code-sharing, poolagreements, joined rates, feeders, loyalty programs, etc.
Especially important are the loyalty programs (frequent flyers),

that make usual customers to obtain points and have discounts
and free flights.
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THE SPANISH INDUSTRY
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The History of the Spanish commercial aviation

begins in 1919, when the first route is
established between Madrid and Barcelona.
In 1921 the company CETA appears and in

1927 Iberia.
32
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Both companies merge founding a third called

CLASSA (Lneas Areas Subvencionadas S.A.).
In the Spanish Civil War, the new Iberia (public
company) is created in the national side.
At the end of the war, other company is created, the
TAE (Trfico Areo Espaol), that will merge with
Iberia too.
Some years later, the INI holds the company as the
unique shareholder.
33
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AVIACO (Aviacin y Comercio), is created in

1948 for the transportation of goods and
products in the Spanish market.
The first Iberia European flight is Madrid
Lisbon in 1939 and in 1946 the routes Madrid
Londres and Roma are created.
In 1946, the route Madrid-Buenos Aires,
becomes the first route between Europe and
South-Amrica.
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In 1970, Iberia buys its first Jumbo and enters in the

modern period.
In 1974 the puente areo o shuttle Madrid-Barcelona

begins to operate.
The decades 80 and 90 register some cycles (petrol price

raises, economic crisis), with more stable periods that allow
the company development. They create the GDS Amadeus
and also some regional and charge companies.
In 1999, Iberia joins the alliance ONE WORLD.
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Nowadays, Iberia flies to more than 40 countries and

100 destinations, and 90 more through sharing codes
with other companies.
They have more than 200 planes and offer more than
900 daily flights, transporting more that 32 million
passengers.
They launched the Iberia Plus loyalty program, still

existing.
And IBERIA has some other business units still running

as their handling companies, planes maintenance and
their regional airline AIR NOSTRUM
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OtHER COMPANIES in the Spanish market are:

SPANAIR
AIR EUROPA
VUELING
CLICKAIR
AIR NOSTRUM
AIR PLUS COMET
BINTER
FUTURA
LAGUN AIR
IBERWORLD
LTE
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SOME BASIC CONCEPTS
SLOT
HUB
AENA
IATA
CDIGO IATA
AIRBUS
BOEING
BSP
E- TICKET
FREQUENT FLYER
ROUND TRIP / ONE WAY
YIELD
OACI
LCC
HANDLING
CHARTER FLIGHT
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RAILWAY
The railway began in the XIX Century in UK as a

consequence of the Industrial Revolution.
The first railway route in the world took place between
Liverpool and Manchester in 1830.
In 1841, Thomas Cook used the railway to organize the
first organized touristic trip.
The development of the railway was really fast and
finished with the animal-strength based means of
transportation in a few years. It was quicker and
allowed a great amount of passengers or goods and it
was even safer for the clients.
In 1900, the railway net it was close to 800.000 km.
worldwide.
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RAILWAY
The technology, from there, advanced constantly with

inventions as best trains, electrification process (1895, USA),
the wagon-lits, higher speed, using the diesel engines, etc.
In the current years, most of the railway companies are still

public and that makes possible that public service will still be
offered for most of the areas.
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RAILWAY
In Spain, the first attempts to build a railway route comes form

the first decade of the XIX century, and the first is built in Cuba
between the cities of la Habana y Bejucal.
In 1844, the Government fixes the wideness of the rails in 1,67

meters, different from the European, which will cause a lot of
problems to the international connections of the Spanish railway.
In the Iberian Peninsula, the first route was between Barcelona

and Matar in 1848 and was, as the first initiatives in other
countries, a private one.
After the 1 world war, the Estate became the main shareholder
and this process ended with the creation of RENFE and FEVE
(Ferrocarriles Espaoles de Va Estrecha) in 1941.
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Nowadays, the Minster of Fostering has

divided
the
railway
transportation
management in two different parts: the
building
and
management
of
the
infrastructures (tracks, stations) that is
responsibility of ADIF (administrador de
infraestructuras
ferroviarias)
and
the
operations of the trains and routes, which still
part of RENFEs work, even if in the future
some private companies could get in the
business.
RENFE is a public institution with its own legal

personality, even if its an institution that
belongs to the Estate.
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The new INTERCITY and AVE services have

contributed to the good results of the
institution, adapting the company to the new
trends and gathering the European wideness
of the tracks.
The plan of development of the high speed

net will make the Spanish railway one of the
most modern transportations in the world.
There are some projects that will make
Madrid an most of the cities join (Barcelona,
Lisboa, San Sebastin, Mlaga, Valencia, A
Corua, etc.)
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EL TALGO
Is the great contribution to the International railway

industry.
The first TALGO was built in US in 1950, a consequence of
the idea of the engineer Alejandro Goicoechea, paid by the
architect and entrepreneur Jos Mara de Oriol.
The novelty was using lighter materials to build the trains
avoiding heavier materials and achieving more speed
possibilities for the train.
It has been a great invention that many Europea countries
and US have used.
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RAILWAY COMPANIES
Most of the railway companies are public for

historical, economic and political reasons.
As
complementary
companies,
the
International Company of Wagon Lits and Big
European Express Company, that have
agreements with many companies for the
Restaurant and Bed services.
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RAILWAY INFRASTRUCTURES
In Europe there are about 135.000 km of tracks.

Spain has some problems with their railway
transportation:
Old net with a radial shape.
Not enough electrified routes.
Not enough double track routes.
Different wideness.
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TOURISTIC TRAINS
The train is not included as often as airplain

or coach in the touristic packages.
Nowadays, RENFE is also dealing with the
travel agencies negotiating about
the
comisions of the services sold in the TA.
Even though, there are some specialized
programs offered by some Touroperators, as
the European IBERRAIL or the train plus
hotel product.
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TOURISTIC TRAINS
We can also point out some touristic trains that are,

itself, touristic products, cruises on wheels. Some
examples are:
Orient Express
Transiberiano
Palace on Wheels
Eastern and Oriental Express
Transcantbrico
Al-Andalus
Tren de la Fresa
Estrella del Pirineo
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HIGH SPEED TRAIN
The first experiences of this type took place in Japan

with the called bullet train in 1964 and in France with
the TGV in 1981.
The common experiences in these type of routes are

really competing with the plane in middle distances and
Spain is an example for this.
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ROAD TRANSPORTATION
Transportation by car is a really important issue for the

tourist industry and is used frequently as a complement
with other means of transportation.
The comfort of the use of the car, prices and relatively

moderate consumptions have made this kind of
transportation the most used in the world.
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Some advantages that using the car present

are:
More autonomy and liberty of movements.
More possibilities to reach any point in an
easier way.
Individual programming of the trip without
inconveniences
from
other
collective
transportation means.
The relationship between price and service is
good.
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BUS / COACH
The bus is, without doubt a perfect way for

organized trips with conditions really
adaptable for this.
The bus is used for some different touristic
services as the packages Bus + Plane, that
gather the most positive aspects of each
mean of transportation.
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Bus / Coach
Even if this kind of transportation has improved its

service and that maybe is the cheapest, it still has
some disadvantages:
Is slower and not competitive for long distances.
Is more uncomfortable that the train and this affects
also the autonomy on board.
The weather and climate affects this transportation
more than to others.
Depends on the traffic.
Is less safe.
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COACH / BUS
This kind of transportation can be divided in:
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Regular: those that have regular fixed and

permanent schedules and also seasonal. They
require an administrative authorization.
Discretional: they depend on the demand. Services
required by particular clients, companies or travel
agencies with no pre-fixed timetables. You should
contract this companies for a transport service.
54
TOURISTIC: That are part of different

touristic service as packages offered by
travel agencies and Tour-operators together
with the accommodation or other
complementary services.
Transfers: transportation that join different
touristic services, for example the plane
(airport) and the Hotel.
Sightseeing: Guided routes in the cities that
make possible visit parts of it. They can be
public or private and you can buy the tickets
directly in the bus, offices or in the Internet.
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Short excursions: that can be contracted in

travel agencies or Hotels. They are very typical
in Madrid.
Long circuits: routes organized in some days
together with accommodation and other
services (packages). They usually have a
guide or tour leader that coordinates the visits
and the excursions.
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RENT A CAR
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Companies that rent a car for individual

clients or companies with or without
driver.
The success is based on the fact that
sometimes is easier for the travelers to
rent a car that take their own car.
Is possible to combine this service with
other transportations as plane or train in
packages as the classic (Fly&Drive).
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TOURIMS AND TRANSPORTATION
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RENT A CAR
Is possible to rent a car directly through these

companies or in travel agencies through (GDS).
The companies have placed their offices in strategic
points where these services can be demanded
(airports, stations, hotels, touristic places)
These last years, the arrival of Internet has also
made a big change in this service.
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RENT A CAR
Some aspects to think about in the operations that

rent a car companies offer to the clients are:
Clients have the possibility to get the car in one spot
and leave it in a different place (net).
The rates are really variable depending on the kind of
car you get, period of time, distance you drive and
type of insurance.
Usually, companies ask for a deposit in advance to
guarantee the service is going to take place without
problems.
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RENT A CAR
The main companies in the world are AVIS, EUROPCAR,

HERTZ and BUDGET.
In Spain, all these companies operate and we have other

local companies as ATESA (used to be public) and low
cost and Internet companies as Pepecar.com, that is
increasing its market share these last years.
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OCEANIC AND MARITIME TRANSPORTATION
There are still some services to go from one port to

another in the long haul in a regular basis, they can be
defined as transoceanic services.
They were the only possibility to make these kind of
movements for the people in the XIX and first decades of
the XX century.
The development of the commercial aviation made this
kind of transportation nearly disappear due to the
slowness and old fashioned style in the second part of the
XX Century.
Most of these companies disappeared or changed into the
cruises industry.
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SEA AND FLUVIAL CRUISES
Thats why most of the building-ships industry also

began to specialize themselves in the cruises industry.
A cruise is a all-inclusive trip (sea, river or lake) that
sails through a route that makes some different stops to
visit some nice places and make some excursions.
Usually, the price of a cruise includes everything
(transportation, accommodation, meals, excursions,
extra-activities) and you get a really good service from
the staff.
Sometimes, the cruise is just a part of the product that
combines with others as a flight or a stay in some spot.
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The routes of the cruises are usually based on sailing at night

and visiting the different spots during the day.
This product has increased its market share a lot these last
year due to the existence of some cheaper rates due to the big
competitiveness in the market. Its no more a luxury product
just for rich people.
Its important to point out that the benefits of this industry
dont go just to the cruise companies but also to the cities
(ports) that are willing to have as many ships stopping in their
ports as possible (Barcelona or Mlaga in Spain are good
examples).
Business tourism is also involved in this industry and many
companies and travel agencies are organizing meetings and
congresses in ships; also cruises are really related with
incentive trips, another business travel experience.
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The main areas in the world in the cruises industry are:

The Caribbean sea.
East and West Coast of the US.
Mediterranean Seas.
Scandinavian and Baltic countries.
Japan and East Asia.
West Coast of Australia.
The main companies in the world in this industry are Carnival,
Cunard, Costa Cruceros, Festival, Hapag Lloyd, NCL, Princess,
Royal Caribbean y Royal Viking.
Apart from the maritime cruises, there are cruises along rivers
and lakes and the most famous take place in the rivers Rhine,
Elba, Danubio, Sena, Rdano, Mississipi or Nile.
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MARITIME TRANSPORTATION
FERRIS
Boats that make possible join people and vehicles through

two points relatively near between islands or between them
and the continent.
In Europe, there are some regions that have these services in

some areas as Canal de la Mancha, Mar del Norte y Bltico,
Inglaterra / Irlanda, Estrecho de Gibraltar, Baleares y
Canarias /Espaa, Francia / Crcega, Italia / Cerdea /
Crcega / Sicilia, Italia / Grecia, Islas del Mar Egeo y Grecia
Continental.
In Spain, apart from the big company Transmediterrnea,

which was public till 2001, some others companies operate as
Balearia and Fred Olsen.
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Tourism and Transportation

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UNIT 9: TOURISM AND

E.U. de TURISMO .UCM.CEES