Transportation Sector
Transportation Sector
Transportation Sector
Objective
At the end of this chapter, the students will be able to:
Transportation and travel have undergone many changes. A review of the history of
transportation and travel shows that their evolution took seven eras. These are the:
This was the period before the widespread industrialization in Europe and North
America.
It was before the development of railways in the two continents.
There were few common carriers.
There were almost no regularly scheduled transportation services.
There was little travel.
Travelers made their own arrangement with several suppliers.
It was the era of stage coach and the wayside inn.
Only few people had the money and the reason to travel.
Road improvements such as railways, canals, and steamship services were brought
about due to rapid industrialization and advances in transportaion technology.
Common carriers came into existence and began to offer regularly scheduled
transportation services.
Travel Increased because more people who had money traveled.
This era was characterized by railways which expanded their operations by running
hotels and providing other travel-related services.
The railways began to market their services more aggressively.
Travel agency and tour companes were formed.
Thomas Cook, an innovator in this field during this era, began his company’s activities in
the United Kingdom in 1840.
More people traveled in this era than in the previous one.
This influence of the privately owned automobile was enhanced in North America and
Europe from the 1920s onward.
Car ownership boomed in North America.
Motorways, interstate highways, and other trunk highways were developed in the latter
half of this era which was from 1920 to 1974.
The automobile was predominant over other travel modes from 1920 to 1945.
The period from 1945 to 1974 is known as the modern-tourism travel system era. Car
ownership continued to grow at a fast rate, mainly at the expense of long-distance rail
travel.
Mass air travel was another post-World War II occurrence.
The introduction of wide-bodied jets in 1970 greatly increased air travel.
Travel ‘’mass tourism’’ philosophy and marketing approaches were prevalent during the
1950s and 1960s.
1600 BC Chariot 20
There are many reasons why people select one transportation mode over another for
their business and pleasure trips. The most common reason are cost, travelling time, safety,
convenience, comfort, availability, frequency of trips, ground services, terminal facilities and
locations, status and prestige, and departure and arrival times. People belonging to different
travel segments have different value perception. For example, the time spent in traveling as well
as departure and arrival times are very important to the business traveler while the cost of the
trip is the traveler’s primary consideration.
Travel by Train
A surver of Amtrak passengers showed that travelers favored the train for the following
reasons:
1. Safety;
2. Ability to look out of the train and see the interesting en route;
3. Ability to get up and walk around;
4. Arriving at the destination rested and relaxed; and
5. Personal Comfort.
Travel by Ship/ Cruise Ship
Photo source: Pinterest.com
A cruise ship is both a floating hotel and resort because the guests are housed, fed, and
entertained. Food is offered throughout the day from seven-course meals to themed-event
dinners. Cruise ships also provided almost continuos entertainment which include charm
classes, language lessons, dance classes, bridge, table tennis, aerobics, jogging, and
shuffleboard. Many ships now have fully-equipped gyms, health, spas, and an athletic
counselor.
Cruises are promoted and sold on the basis of health, recreation, and pleasure. Theme
cruises are popular such as culinary cruises, historic voyages to less-known places, stock
market seminars, movie festivals, music festivals, as well as cruises deveoted to art, golf,
astrology, tennis, photography, and beauty counselling.
Younger people prefer the three-to seven-day cruises. Older people take cruises of
seven days or less. The elderly usually join the round-the-world cruise. Cruise passengers tend
to be repeat customers. Once they experience a cruise, they begin planning for the next. Like
destination resorts, cruise lines have successfully developed their own loyal repeat clienteles
with an average of 30 to 40% of the total passenger.
Travel by Automobile
The introduction of the automobile brought about the decline of the train’s popularity in
most developed countries. The advent of the automible spread the benefits of tourism more
widely and enabled people to travel individually or in private smaller groups. The automobile
brought about a more random pattern of travel movements, opened up new destinations, and
hastened the development of elaborate networks of automobile-oriented facilities and services
along highways and roads.
Travel by Air
As the airline industry grew, the travel industry depended on it more. Cruise lines, rental
car companies, airport hotels, and ground transportation operators depended on the airline
industry to generate the bulk of the business. Executive business travel and international
tourism are dependent on it. The impetus of air travel to people traveling on business is its time-
saving advantage; for the pleasure travel, it is the affordable price that has the greatest impact.
Airline Regulations
1. First Freedom: The right of an airline to overfly one country to get to another;
2. Second Freedom: The right of an airline to land in another country for technical stopover
(fuel, maintenance, etc.) but does not pick up or drop off traffic;
3. Third Freedom: The right of an airline, registered in country X, to drop off traffic from country
X to country Y;
4. Fourth Freedom: The right of an airline, registered in country X, to carry traffic back to country
X from country Y;
5. Fifth Freedom: The right of an airline, registered in country X, to collect traffic in country Y
and fly on to country Z, so long as the flight either originates or terminate in country X;
6. Sixth Freedom: The right of an airline registered in country X, to carry traffic to a gateway – a
point in country X – and then abroad. The traffic has neither its origin nor ultimate destination in
country X;
7. Seventh Freedom: The right of an airline, registered in country X, to operate entirely outside
of country X in carrying traffic between two other countries; and
8. Eight Freedom: The right of an airline, registered in country X, to carry between any two
points in the same foreign country; also known cabotage.
II. SUMMARY
The evolution of transportation and travel took place in seven groups, namely; the pre-
industrial travel system era, the early-industrial travel system era, the mature-railway system
era, the express-travel system era, the automobile-based trave; system era, the modern-tourism
travel system, and the post-mobilty adjustment period.
The mode of transportation chosen depends on several factors, namely: cost time spent
in traveling, safety, convenience, comfort, availability, frequency of trips, ground services,
terminal facilities and location, status and prestige, and departure and arrival times. According
to Sheth’s theory, travelers choose a travel mode based on their psychological weighing of five
factors. These are the functional, aesthetic/emotional, social/organization, situational, and
curiosity.
In terms of transportation, trains encouraged travel with United States, Canada, and
Europe in the 19th and the early 20th centuries. However, travel by ship became prominent in the
middle of the 19th century. Eventually, the introduction of automobile resulted in the decline of
the popularity of the train in several developed countries.
Bus or motor coach travel is the most economical form of transportation in terms of fuel
costs; but for long distances, it still has the disadvantages of being time-consuming compared to
air transportation. The bus provides intercity passenger transportation services as well as
charger and tour services.
The airplane has taken over as the major international and intercontinental
transportation mode in the post-World War II era. It also predominated among the common
carriers in domestic transportation in the United States and Canada. It is a very important mode
for the business traveler because of its time-saving aspects. Charter flights, since their
introduction, have become increasingly significant as vacation travel modes, particularly in
Europe.