Activities and Attractions Of tourists for hotel Industry

Activities and Attractions Of tourists

      All destinations require features that will attract tourists to come and see and experience these activities and attractions. They can range from physical features; beauty of the mountains to the quality of a beach to activities such as jet boating down a river or shopping and entertainment.

Attractions can be categorized as either natural which includes mountains, geothermal areas, forests or constructed attractions which must be created and maintained. Examples of constructed attractions are amusement parks, museums and art galleries, wildlife parks, events, staged entertainment, cultural exhibitions, gardens and historical buildings.

Sales

      Also known as the travel sector, sales involves the distribution of tourism products to the consumer through retail travel agents, tour operators and wholesalers. As already demonstrated the tourism product is diverse and includes transport, attractions/activities, accommodation and ancillary services. The sales sector is especially important in tourism because the customer and the service are geographically separated. For example, a customer in Brisbane may purchase the bulk of their Central Otago skiing holiday at home, before they leave, including: air tickets, transfers, hire car, hotel accommodation and ski passes.

The tourism product can be sold in a variety of ways:

1.The customer purchases directly from the supplier (principal) Many companies such as Air New Zealand are encouraging their customers to do this, especially for domestic flights. The growth in internet use and the ease of gaining information and booking via the web means more and more visitors are choosing to book tourism products themselves.

Advantages for the supplier are more profit as no commission has to be paid to intermediary, save time and reduce possibility of mistakes and supplier maintains control of sale e.g. a hotel could offer an upgrade to a suite to promote future business with customer. Disadvantages would be increased cost to supplier in establishing an office to promote their product and can antagonise intermediaries

2.The customer accesses the supplier through an intermediary Intermediaries include retail travel agents, conference planners and information offices (I-Site in New Zealand). Sometimes organisations usually considered to fall within the other sectors may also act as intermediaries e.g. a hotel booking guests into an activity and taking payment, or a tour company booking clients into accommodation. Intermediaries usually gain a commission of between 10 and 20% for making bookings.

An intermediary will provide a service that adds value for the traveller. For example, a travel agent may negotiate with an airline for special rates or conditions, or they may offer value in other ways such as providing specialised knowledge or a greater range of choices for itinerary planning. Travel agents may specialise in particular destinations, modes of travel or provide services for niche market segments.

3.The customer accesses the supplier through two intermediaries. Travel agents will often use wholesalers to book products for their clients. Wholesalers negotiate with suppliers and sell products such as all-inclusive tours. Many retail travel agencies have wholesaling arms e.g. the retail travel agency chain House of Travel has the wholesale arm Travel Plan.

Wholesale tour operators put together tours combining transport, accommodation, activities and in the case of fully inclusive tours ancillary services such as food etc. These tours are usually sold via a travel agent. Some tour operators do deal directly with the public i.e. Contiki.

The travel agents role is different to other retailers because they do not purchase a product for resale to their customers.

Commission

Travel agents and tour operators can earn their income from commission paid by the service provider they are representing, and not by the purchaser. Airlines are reducing the levels of commission they currently pay to agents making it necessary to sell more to make larger amounts of commission these days.

Examples of commission rates to travel agents include 5-9% on international air tickets, 10% for a tour package, cruise or accommodation (this can be more depending on the preferred status held with the supplier), and 33% for travel insurance.

With the current changes to the commission system such as a single capped fee, direct booking over the phone or internet and e-ticketing, agents are working harder to make their commission. The focus on selling domestic fares is lower as there is very little to be made on these bookings now days and more concentration is taking place on the add-ons to the international flights.

Some travel agencies also generate income from bureau de change or traveller’s cheque operations. Traditionally, this has been a significant source of income for some major travel chains such as Thomas Cook and American Express. However, with electronic banking, direct booking and the introduction of the Euro, their income is also decreasing. It represents a saving for the consumers who are benefiting by saving on commission.

Ancillary Services

Otherwise known as support services.

Food and Beverage

One of the most important experiences while on holiday for a lot of travellers is the consumption of food and beverage, enhanced when the food and drink in question is exceptional and/or exotic which is often the case on holidays abroad.

Countries with well-established reputations for their food and drink have ensured that these attractions are promoted prominently in their tourism campaigns. Tours are now from New Zealand offering tuition in French cooking and the many food and wine festivals around the world attract both domestic and international tourists.

One of the most famous Festivals is Oktoberfest, held annually in Munich, Germany for 2 weeks. The Speights brewery tour in Dunedin is world renowned with tourists having to book in advance.

Research conducted by Tourism New Zealand has shown that ‘Interactive Travellers’ to New Zealand are especially interested in experiencing the country’s local food and wine.

The dominance in the UK and around the world of transnational corporations such as McDonalds, KFC and Burger King has changed the eating habits of travellers. The more unadventurous of tourists can now be comfortable eating food similar to the food at home. Research conducted by Tourism New Zealand has shown that ‘Interactive Travellers’ to New Zealand are especially interested in experiencing the country’s local food and wine.

Shopping

Shopping has become the number one activity of tourists in the world. Designer brand outlets are very popular destinations throughout the United States attracting millions of visitors each year from countries such as China, Brazil, and UK. Top US destinations include Orlando Premium Outlets, Woodbury Commons Premium Outlets, Las Vegas Premium Outlets and Desert Hills Premium Outlets near Palm Springs.

Shopping can be both an attraction and a basic facility which tourists will expect at a destination. This can include souvenir shopping or purchasing basic necessities such as shampoo. Products which identify with a destination are always popular. In New Zealand, anything to do with the kiwi is sold in huge numbers in Hawaii its pineapples and macadamia nuts.

Insurance

Insurance is a very important aspect of a tourist’s travel arrangements. Most policies will cover the following:

• medical care and hospitalisation

• personal accident

• cancellation/curtailment of holiday

• delayed departure

• baggage loss

• money loss

• personal liability

The traveller must ensure that medical coverage is sufficient to meet their needs particular in countries where hospital care is very expensive. In the USA, costs in excess of $1 million are not uncommon for serious illnesses.

Foreign Transactions

The cost of an international trip can be substantial and often difficult to estimate in advance. Several factors can influence this with the key one being fluctuating exchange rates. Local taxes and tipping may be add-ons to prices that were not anticipated in advance. It is also important to consider the e cost of living between countries and how that contributes to the travellers perceptions of value.

An example of cost of living in countries would be those who want to travel to Scandinavia. The cost of living is very high especially when buying food. In somewhere like Bali the cost of living is not as high – food and souvenirs are much cheaper but it must also be remembered that tourists help to boost the economy. Hence, after the bombing in Bali in 2003 the economy took a dive until tourists deemed it safe to travel there again.

International travellers have an increasing number of ways they can pay for goods and services while in a foreign country. These include:

• Taking cash from home. However, this may lead to theft or loss, and some countries have restrictions on the import or export of their currencies.

• Taking traveller’s cheques. Used widely around the world, traveller’s cheques provide security with compensation for theft and loss. Standard premium charge of 1%.

• Arrange for the advance transfer of funds to a foreign bank.

• Use travel vouchers provided by travel intermediaries. Tour, transport, accommodation or meals may be purchased in advance.

• Use a credit card to purchase goods and services or for cash advances. Fees may apply and if there is a delay between purchase transaction and debit of the holder’s account, currency exchange fluctuations may alter the amount of the purchase.

• Use an eftpos card to access money/make purchases. The card needs to have the internationally recognised symbol on the back of it and then funds are accessed direct from bank account and are available from ATM machines 24 hours a day.

Commission Charges

The standard commission charged is 1.5% which can be a relatively small amount if the traveller is not purchasing much. Therefore, there is a minimum charge which is passed on to the client of $5.00 if the 1.5% commission is less than $5.00. This discourages people from only exchanging small amounts of traveller’s cheques over the counter.

Currency Codes

Currency codes are three letter standard abbreviations which identify the currency of the country. Eg. NZD = New Zealand Dollars, GBP = Great British Pounds The introduction of the EURO has reduced the number of foreign currencies now used in Europe and makes it easier for the traveller when carrying traveler's  cheques, for instance.

Currency Exchange Rates

International transactions require buyers and sellers to deal in foreign currencies. The price of one currency in terms of another is called the exchange rate. Currency exchange rates are usually floating and values fluctuate depending on supply and demand in the global marketplace. Fluctuation, either appreciation or depreciation, depends on a number of economic and political considerations. If a country, for example, suffers a war or terrorist attack then it becomes politically unstable and people will not go there. If it is not receiving large numbers of tourists anymore then the economy suffers and the value of the currency will drop.

Changes in exchange rates are usually small in the short term, but over a period of weeks or months, trends can result in substantial differences. Changes in some currencies can have knock-on effects for others too. For example, the value of the New Zealand dollar is linked to the US dollar and the Japanese Yen.

International travellers have an increasingly wide range of ways in which they can now pay for their goods and services abroad. These can include:

• Traveller’s cheques - which are still widely used as they are readily available and recognised throughout the world and offer the security of replacement if lost or stolen.

• Both credit card and cash card usage are increasing but it is recommended that travellers also take an assortment of notes and travellers cheques in case of card theft.

Tourist publications and information

Traditionally this information has been in the form of brochures, but the Internet is now an increasingly important source of information for tourists and for tourism operators. Availability of current information for tourists is vitally important e.g. weather, local transportation, attractions etc. Travel guides such as the Lonely Planet series are immensely popular and continue to be updated and extended each year. Some guidebooks are now taking the form of travel blogs and wikis, such as Wikivoyage and Wikitravel. Podcasts prove to be very useful as the audio information can be downloaded over the Internet to a computer, then transferred automatically to a portable audio player. Virgin Atlantic was one of the first companies to offer this service when they launched a guide to New York. The key benefit is that it is free, can be instantaneously updated and quick and easy to use while on the move.

i-SITE offices in New Zealand have a vital role in providing information on local and national visitor attractions and activities, accommodation and transport. They are operated and funded by local councils e.g. Dunedin City Council.

Entertainment

This category includes cinemas, theatres, nightclubs, bars, casinos and shows. Many tourists will look for entertainment and expect these facilities to be available especially in cities. If it is not available, this is reflected highly in visitor’s surveys as a reason for dissatisfaction.

Indirect Elements

Infrastructural needs

Infrastructure is critical to the success of the tourism product. Without suitable access to a destination whether by road or air, the tourist will not be able to visit. Airports must have certain facilities to gain status as in international airport e.g. Duty Free facilities.

Communications also play a vital role especially today when people expect cell phone coverage and internet access to keep in touch with family and friends or for business.

Access to clean public toilets can be very important to the satisfaction of a tourist’s holiday. Clear signage is vital for independent travellers both within the cities to show routes to attractions, on roads to point out the way to destinations and also within and outside tourist attractions providing information.

The manufacturing and building industry are vital to providing the superstructure tourists need – hotels, restaurants, shops and attractions.