Topic B - Owernership + Operating Aims Flashcards
What are the different types of travel+ tourism organisations?
Airlines, hotels, tour operators, travel agents
What are most organisations aiming to achieve?
Make profit unless they are non-commercial
What are the main differences between commercial/non commercial organisations?
Commercial- want to make a profit (private sector).
Non commercial - don’t aim to make a profit, exist to provide services to customers (beneficial to the community) (public and voluntary)
Key characteristics of private organisations
. Not under government control - owned by private individuals or companies
. Can be multinational businesses or small scale local businesses
. Someone can own the whole company on a share of the company (shareholding)
. Staffed by paid staff
What is a sole trader?
A business run by a self employed individual
What is an example of a sole trader?
A tour guide, private taxi driver etc.
Unlimited liability - owner responsible for all debts
What is a partnership?
A business owned by 2-20 people
Shared risks / shared profits
Unlimited liability
eg: a family owned hotel
What is limited liability?
A business owned by shareholders -invest in business for a return on profits
What is a private limited company (Ltd)
Shares can only be brought and sold privately
Limited liability-only responsible for debt proportionate to the shares you own
What is a public limited company (PLC)?
Shares can be brought and sold publicly by members of the public (on the stock exchange)
Size of a shareholders dividend (share of profits) depends on how many shares they own and now much profit the company has made that year eg:easyJet
What are some aims of private organisations?
Make/maximise profits
Sell products/services (bring in more money than they spend)
Increase market share (more customers than competitors)
Increase turnover (sell more)
To improve/maintain it’s image (attract new customers and keep old ones)
To keep the range of products and services diverse
Key characteristics of public organisations
Owned and funded by the government
Funds from DCMS, lottery funding and local councils (our tax)
Paid employees, civil servants and volunteers
Need enough money to continue operating
Any profit is reinvested into their organisation
Examples of smaller/local organisations
Tourist information centres
Larger visitor attractions (eg: museums)
Local public transport
Examples of medium/regional organisations
Regional tourist boards
Larger visitor attractions (eg: country parks)
Regional public transport
Examples of large/national organisations
National tourist boards
National museums
National banks
Examples of international organisations
Global tourism organisations
Aims of public organisation
To provide the best quality service to the public
Key characteristics of voluntary organisations
• Set up by groups of people with common interests
. mainly set up as charities
. * Funding comes from government grants, donations, legacies, entry fees, memberships and gift snaps/cafes *
• larger organisations name paid staff but mostly volunteers
Aims of voluntary organisations
Educate
Preserve
Inform
Conserve
Differences between commercial and non commercial T&T organisations
Profit motive — commercial aims to maximise their profits wheras non commercial aim to make money to reinvest back into their business and to cover their costs.
Funding sources — commercial gets funds through customers (ticket sales etc) shareholders and investors wheras non commercial are funded through the government.
What are transport principles
Provide customers with transport between destinations in a safe and efficient manner
What is a transport hub/gateway
Gateway=a place where travellers enter or leave a country or destination egg airports, railway stations
Hubs=a central transport facility, such as an airport, from which other transport facilities operate, such as buses, coaches, trains and taxis
What are the three categories of the transport sector
Air, Land, Water
Advantages of land transport (roads)
convenient, flexibility
