An Analysis Of The Travel And tourism industry In The United States
Management for Organizations MGT 330
August 25, 2008
Travel and tourism is the nation’s largest services export industry, the third largest retail sales industry (following auto and food store sales), and one of the largest U.S. employers (http://www.agmrc.org/agmrc/markets/Tourism/tourism.htm).
According to the Travel Industry Association of America, travel and tourism is a $703 billion industry in the United States that has generated more than 7.5 million jobs ).
It ranks as the first-, second-, or third largest retail-sales industry in 29 states (http://www.agmrc.org/agmrc/markets/Tourism/tourism.htm).
Travel and tourism generates $104.9 billion in tax revenue for federal, state, and local governments, with the restaurant industry accounting for the majority of this economic activity ).
Recently, an important trend has shown up in recent tourism studies. Because vacations are not cheap, and usually take longer than a weekend, the best customers are most likely households with discretionary income and free time. The two population segments that best fit that description are those ages 55 to 64 and 65 to 74 ).
These two groups are not large and have grown slowly over the past decade. However, when it comes to spending on travel-related goods and services, these two age segments will be far more important to the leisure travel industry than their numbers would suggest. During the next 5 to 10 years, a prime target market for any leisure-oriented travel agency should be households ages 55 to 64. According to the Bureau of Labor Statistics (BLS) 2000 Consumer Expenditure Survey, households in that age cohort now spend about $17 billion a year on travel-related goods and services (http://www.bls.gov).
Tourism Industry Europe seems to be the most popular foreign destination for most Americans. More than seven million people cross the Atlantic each year. Many International organizations affect international travels and help to make traveling quick, simple, safe and efficient. The purpose of this work is to analyze how a trip to Switzerland can be affected by such organizations. International trip ...
About half of that pays for transportation by air, train, boat, or rental car ).
Of course, not every household in that age group spends freely on travel services, but the average expenditure is about $1,200 a year, according to the BLS (http://www.bls.gov).
The highest income segment of this age cohort, those earning $100,000 per year or more, now spends an average of more than $6,000 a year on family trips ).
A 50% increase in the size of this age group, by itself, would be very beneficial to the leisure travel industry.
There are four things that impact the travel and tourism industry’s ability to obtain inputs and disposal of its outputs. The major airlines are recovering reasonably well from the staggering losses incurred in the early years after 9/11, either through the elimination of debt and high costs via bankruptcy, or through capable management and sharp cost cutting. The encouraging trends for airlines throughout the world are very high passenger load ratios; rising demand, particularly for travel to Asia/Pacific destinations such as India and China; and better efficiency in most areas of operations, from labor costs to fuel utilization ).
Hotels throughout the world have enjoyed a major boom. This was evidenced by high occupancy levels, rising room rates, and strong levels of both business and leisure travelers (http://www.agmrc.org/agmrc/markets/Tourism/tourism.htm).
There has been a tremendous amount of construction of new properties, making up for a lack of construction in the years immediately following 9/11.
Understand the tour operators industry within the travel and tourism sector 1.1 – Analyse the effects of current and recent trends and developments on the tour operators industry. LO2. Understand stages involved in creating holidays: 2.1 Assess the stages and timescales involved in developing holidays 2.2 Evaluate the suitability of different methods of contracting for different components of the ...
The price of gasoline, fuel for cruise ships and jet fuel for aircraft remains a major hindrance to the travel industry. Fuel constitutes about 26% of operating expenses for airlines today, compared to 10% in 2003. Not long ago, for example, Americans were accustomed to paying about $1.50 for a gallon of gasoline. Today, American consumers and businesses are faced with prices up to three times as much ).
The United States recently introduced a set of forces outside of the travel and tourism industry’s boundaries that have the potential to affect the way the travel and tourism industry operates. Effective Tuesday, January 23, 2007, U.S. citizens, including children, returning to this country by air from any country in the Western Hemisphere will have to present passports. Additionally, citizens of Canada and Bermuda traveling to the United States by air will also have to show passports to enter the country, rather than the driver’s licenses and birth documents that they had been able to use previously. According to U.S. officials, the measure was mandated by a law in which Congress adopted many proposals of the September 11 commission ).
The purpose is to reduce the types of documents that travelers can use to enter the United States, simplifying the job of inspectors looking for fake or invalid ones. The U.S. passports now being issued can be read by scanners in airport customs booths and instantly verified in most cases through a federal database ).
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