Exam 1 Study Guide

Question 1

Tourism

Answer 1

Temporary movement of people to a destination outside their normal places of work and residence, the activities undertaken during their stay in those destinations, and the facilities created to cater to those needs.

Question 2

Push and Pull factors

Answer 2

Travelers are “pushed” to travel by personality traits or individual needs and wants, and “pulled” to travel by appealing attributes of travel destinations.

Question 3

Allocentric Personalities and travel

Answer 3

Venturers are seeking adventure through travel, whereas dependables are seeking the comforts of familiar surroundings in their tourism experiences.

Question 4

Needs in travel

Answer 4

Task of meeting diverse needs and wants led to the idea of market segmentation.

Question 5

Heterogeneous market

Answer 5

Composed of people having different characteristics and needs.

Question 6

Homogeneous market

Answer 6

Composed of people with similar characteristics and needs.

Question 7

SMERFs

Answer 7

Social
Military
Education
Religious
Fraternal

Question 8

Facilitating goods

Answer 8

Tangible items that support or accompany the service being provided.

Question 9

Mature travelers

Answer 9

People aged 55 and older; also called “senior citizens.”

Question 10

5 service quality dimensions

Answer 10

Tangibles, Reliability, Responsiveness, Assurance, Empathy

Question 11

Service Guarantees

Answer 11

Unconditional, Easy to understand, Meaningful, Easy to collect, Appropriate compensation.

Question 12

Travel agents

Answer 12

As consultants, spend much of their time researching travel products and conferring with clients.

Question 13

Types of tours

Answer 13

Independent-least structured
Foreign Independent (FITs)/Domestic Independent (DITs)-fills particular needs of traveler
Hosted-Services from host
Escorted-Most structured

Question 14

Mark-ups on tour packages

Answer 14

A mark up pricing strategy involves setting the prices of your tours and activities in order to ensure that you make a profit on each sale.

Question 15

Customer relation management

Answer 15

Process of cultivating long-term customer relationships.. Creating win-win situations for both customers and suppliers.

Question 16

Enterprise resource planning system (ERP)

Answer 16

A system designed to combine all information sources, subsystems, and processes from various locations into one unified system.

Question 17

Technology effects on tourism

Answer 17

Offers challenges and opportunities. Advances in computing capabilities but fear of losing human connectivity and having to learn new skills.

Question 18

Revenue management

Answer 18

Requires allocating capacity to customers at the right price and at the right time to maximize revenue or yield, enhance customer service, improve operating efficiency, and increase profitability.

Question 19

Dynamic packaging

Answer 19

The newest technology being leveraged throughout the travel industry.

Question 20

Service Recovery

Answer 20

When a tourism encounter is less than satisfactory, the tourism employee can right the situation and “turn the guest’s frown upside down.”

Question 21

Market segmentation

Answer 21

Dividing a broad market into smaller and distinct groups of buyers-each group with similar needs, characteristics, or behaviors.

Question 22

Quality

Answer 22

Both objective and subjective in nature. Much of quality is subjective-in the “eye of the beholder.”

Question 23

Distribution channels

Answer 23

One-level- direct access to tourism suppliers
Two-level- travel agents serve as intermediaries bringing suppliers and consumers together
Three-level- in addition to travel retailers, they bring in another layer of intermediaries, travel wholesalers, who assemble and market tours and other tourism products

Question 24

Travel seller

Answer 24

A seller of travel is any resident or nonresident person, firm, corporation or business entity that offers for sale, directly or indirectly, at wholesale or retail, prearranged travel or tourist-related services for individuals or groups, through vacation or tour packages, or through vacation certificates in exchange for a fee, commission or other valuable consideration.

Question 25

Why people travel

Answer 25

Visit friend or relatives 40%
Vacation or leisure 37%
Business or professional 20%
Others 3%

Question 26

Evolution of tourism

Answer 26

The Empire Era-travel became commonplace as roads were developed
Middle Ages and Renaissance-travel broke down then slowly emerged in the renaissance
Grand Tour-luxury travel for the wealthy or business
Mobility-increased travel
Modern-paid vacation