Topic B - Owernership + Operating Aims

Question 1

What are the different types of travel+ tourism organisations?

Answer 1

Airlines, hotels, tour operators, travel agents

Question 2

What are most organisations aiming to achieve?

Answer 2

Make profit unless they are non-commercial

Question 3

What are the main differences between commercial/non commercial organisations?

Answer 3

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)

Question 4

Key characteristics of private organisations

Answer 4

. 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

Question 5

What is a sole trader?

Answer 5

A business run by a self employed individual

Question 6

What is an example of a sole trader?

Answer 6

A tour guide, private taxi driver etc.

Unlimited liability - owner responsible for all debts

Question 7

What is a partnership?

Answer 7

A business owned by 2-20 people
Shared risks / shared profits
Unlimited liability

eg: a family owned hotel

Question 8

What is limited liability?

Answer 8

A business owned by shareholders -invest in business for a return on profits

Question 9

What is a private limited company (Ltd)

Answer 9

Shares can only be brought and sold privately
Limited liability-only responsible for debt proportionate to the shares you own

Question 10

What is a public limited company (PLC)?

Answer 10

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

Question 11

What are some aims of private organisations?

Answer 11

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

Question 12

Key characteristics of public organisations

Answer 12

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

Question 13

Examples of smaller/local organisations

Answer 13

Tourist information centres
Larger visitor attractions (eg: museums)
Local public transport

Question 14

Examples of medium/regional organisations

Answer 14

Regional tourist boards
Larger visitor attractions (eg: country parks)
Regional public transport

Question 15

Examples of large/national organisations

Answer 15

National tourist boards
National museums
National banks

Question 16

Examples of international organisations

Answer 16

Global tourism organisations

Question 17

Aims of public organisation

Answer 17

To provide the best quality service to the public

Question 18

Key characteristics of voluntary organisations

Answer 18

• 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

Question 19

Aims of voluntary organisations

Answer 19

Educate
Preserve
Inform
Conserve

Question 20

Differences between commercial and non commercial T&T organisations

Answer 20

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.

Question 21

What are transport principles

Answer 21

Provide customers with transport between destinations in a safe and efficient manner

Question 22

What is a transport hub/gateway

Answer 22

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

Question 23

What are the three categories of the transport sector

Answer 23

Air, Land, Water

Question 24

Advantages of land transport (roads)

Answer 24

convenient, flexibility

Question 25

Disadvantages of land transport (roads)

Answer 25

Traffic, safety, pollution

Question 26

What is a scheduled airline

Answer 26

run to a regular timetable that is only changed for the winter and summer seasons. The flights depart even if not all of the seats are booked.

Question 27

What are chartered airlines

Answer 27

own and operate aircraft rented by other organisations such as tour operators.

may be contracted for a specific holiday season and run to a timetable set by the operators. May be contracted for a specific holiday season and run to a timetable set by the operator.

They aim to fill every seat on the aircraft and each seat forms a part of a package holiday

Question 28

What are low budget/low cost airlines (no frills)

Answer 28

scheduled airlines that don’t offer different types of service on their flights aim to keep their costs as low as possible so they can offer cheap fares

Question 29

What are the three different types of flight

Answer 29

Short haul
Medium haul
Long haul

Question 30

What is a short haul flight

Answer 30

A flight under 1500km

Question 31

What is a medium haul flight

Answer 31

1500-3500km long flight

Question 32

What is a long haul flight

Answer 32

A flight over 3500km

Question 33

What are the different levels of service (on flights)

Answer 33

Economy
Premium economy
Business
First class