Final MGMT 1035: Week 8 Flashcards
Tourism Industry
What country’s power and empire made tourism possible (created template of tourism)?
Rome
What was the Grand Tour?
A 17th-century custom for wealthy young gentlemen, especially in England, to travel through France, Italy, Greece, and other European centers to see classic architecture and art.
Learn culture and education
How did banks support the Grand Tour?
Banks arranged letters of credit with European banks to provide financial support for wealthy English landowners sending their children on the Grand Tour.
Why did the Grand Tour fade away?
Safety concerns from the Napoleonic Wars, industrialism enabling mass travel, and railways diminished the exclusivity of the Grand Tour.
How did the purpose of travel change in the 19th century?
Instead of Grand Tours, families sent children to England to learn culture, focusing on prosperity and security.
How did Thomas Cook revolutionize travel in the 1840s?
Thomas Cook used new railways to buy and resell tickets, introduced organized travel treks, and gained followers through his temperance lectures.
introduced travel checks
What led to Thomas Cook Travel’s to eventual decline?
After changing ownership multiple times and being privatized in the 1970s, Thomas Cook declared bankruptcy in 2019 due to competition from online travel services.
orient express–> british railway company
How did technology and regulation impact post-WW2 travel?
Jet plane technology made travel easier, but air travel remained expensive until deregulation in the late 1970s and the rise of discount carriers after 1990.
What was the impact of the Cold War’s end on tourism?
opened up new destinations and attracted new groups of potential travellers.
When and where did the first scheduled passenger airline service begin?
On January 1, 1914,
between St. Petersburg and Tampa, Florida.
Who was involved in the first paying passenger flight?
The first flight was piloted by Tony Jannus in a Benoist XIV biplane, and the first passenger was Abram C. Pheil, the mayor of St. Petersburg, who bought the ticket for $400 at a charity auction.
(limited to only one passenger)
What advancements occurred in air travel during the 1930s?
Transpacific flights expanded, and planes like the Clipper 314 could comfortably fly 74 passengers and 10 crew up to 3,500 miles.
How did World War 2 impact air travel?
advanced aviation technology, leading to the testing of jet engines after the war.
Why was the Boeing 747 developed in the 1960s?
The Boeing 747 was designed to carry large numbers of passengers over long distances to meet the growing demand for air travel.
known for its wide body
Which plane enabled airlines to carry passengers more than 8,000 miles without refueling, offering better prices and efficiency?
The Boeing 747 (Australian)
Where do the origins of seaside resorts trace back to, and why did they decline?
Seaside resorts originated in Roman times in coastal Italy but faded after the fall of the Roman Empire.
railway expansions
How did the concept of all-inclusive resorts develop?
All-inclusive resorts originated in 1930s Britain with Butlin’s holiday camps and evolved with Club Med in the 1950s, creating the framework for modern party-focused resorts.
Heiligendamm
First German seaside resort, illustrating early European resort culture.
What eliminates the hold-up problem? Hold-up?
all inclusive resorts; It happens when one party worries that the other might change the deal later in a way that is unfair. This often occurs after one side invests a lot and becomes dependent on the deal, making them vulnerable to changes.
How do airports illustrate the holdup problem?
In the American model, inflated prices (e.g., $25 sandwiches) occur due to lack of alternatives, while European airports alleviate concerns by matching prices with regular retail environments.
How does the all-inclusive model eliminate the holdup problem?
Fixed pricing ensures customers pay upfront for all amenities, reducing anxiety about unexpected costs and providing assurance.
What are the benefits of the all-inclusive model for resorts?
It increases bookings due to upfront cost clarity and ensures predictable revenue by selling a set number of packages.
Why do consumers prefer the all-inclusive model?
Guests feel they are getting more for their money with an all-inclusive package, leading to higher satisfaction, eliminated budgeting
What are the key benefits of the all-inclusive model for consumers and resorts?
Assurance that they won’t face unexpected charges, and focus on relaxation and enjoyment rather than financial concerns. While resorts attract more guests, enhance loyalty, and gain predictable income.
What is the key takeaway of the all-inclusive model?
It addresses the holdup problem by eliminating financial uncertainty, benefiting both consumers (peace of mind) and resorts (reliable revenue and customer satisfaction).
Cross- Subsidization Strategy
strategy where different services (food, activities, accommodations) support one another financially
What payment model contributes to profitability?
Upfront payment model :- Customers pay a large lump sum before their stay, which provides resorts with immediate cash flow.
- This financial structure simplifies budgeting for the resort and stabilizes revenue
What is seen as a catalyst for toursim?
all-inclusive model resort
critics argued: resorts create “enclosed” environments that isolate tourists from the local culture and economy
What was the first modern airliner with better comfort, speed, and safety?
Boeing 247 (1933)
What Initiated transatlantic flights in 1939, symbolizing international expansion?
Pan American’s Boeing 747SP, Clipper Liberty Bell,
Pan AM
- first airline to fly worldwide
- ground-breaking changes to industry
- added jet aircraft to their fleets and
uses computerized reservation systems.
What was the world’s first supersonic aircraft and what would eventually become an iconic symbol of commercial flight
Concorde; first passenger aircraft to break sound barrier
expensive
What was the first two passenger flight, and when did it occur?
May 1908 when Wilbur Wright carried Charles Furnas 2000 feet across Kitty Hawk, North Carolina.
