MICRO PERSPECTIVE

IN TOURISM &
HOSPITALITY INDUSTRY
TRANSPORTATION SECTOR
 TRANSPORT OR TRANSPORTATION
• Transport or Transportation is the movement of
people and goods from one place to the other.
• The term is derived from the Latin words:
/trans/ - ACROSS,
/portare/ - TO CARRY.
• Transportation is further subdivided into:
Air,
Road,
Rail,
Water and Others.
AIR TRANSPORTATION
The Philippine Airlines (PAL)
 THE PHILIPPINE AIRLINES (PAL)
• The Philippine Airlines (PAL) was founded on February 28, 1941,
making it Asia’s oldest carrier still operating under its current name.
• The airline was founded by a group of businessmen led by Andres
Soriano Sr., hailed as one of the Philippines’ leading industrialists at
the time.
• The airlines’ first flight was made on March 15, 1941 with a single
Beech Model 18 NPC 54 aircraft, which started its daily services
between Manila (Nielsen Field) and Baguio.
• Notably Philippine Airlines leased Japan airlines their first aircraft, A
DC-3 named “Kinsei”
• On July 31, 1946 a chartered Philippine Airline DC-4 ferried 40
American servicemen to
• Oakland, California from Nielsen Airport in Makati city with stops
in, Guam, Wake Island,
• Johnston Atoll, and Honolulu Hawaii making PAL the first Asian
airline to cross the Pacific Ocean.
 AVIATION
• The aviation industry encompasses almost all
aspects of air travel and the activities that help
to facilitate it. This means it includes the
entire airline industry, aircraft manufacturing,
research companies, military aviation, and
much more.

• The aviation industry is the business sector

dedicated to manufacturing and operating all
types of aircraft.
 CIVIL AVIATION

Civil aviation includes three major

categories:
• Commercial air transport,
including scheduled and non-
scheduled passenger and cargo
flights.
 GENERAL AVIATION
The term “general aviation” is used
to describe a diverse range of
aviation activities and includes all
segments of the aviation industry
except commercial air carriers
(including commuter/ regional
airlines) and military.
 MILITARY AVIATION

Military aviation comprises military

aircraft and other flying machines
for the purposes of conducting or
enabling aerial warfare.
 THE AVIATION SYSTEM
Aviation is the term used to describe the industry that builds and flies aircraft.

1. Aircraft Manufacturing: 2. General Aviation 3. Military Aviation

• Civil Aviation - Private Planes
- Major Carriers - domestic and - Pleasure flying, land surveying
international
- Flying Instruction
- Regional Carriers (commuters)
- Agricultural use
- Supplemental Carriers (Charters)
- Cargo
- Cargo
- Corporate Jets
- Air Taxi Services
 AIRPORT OPERATIONS
Aviation Support Industries It is further divided into two:

1. Civil Aviation - the industry that flies the public from

place to place.
• Domestic service - a flight must start and end within the
borders of the same country.
• International service- the flight starts in one country and ends
in another.
2. Military Aviation- aircraft flown by a nation’s air
force and other branches in the military.
 AIR SERVICE AND ROUTES

• Scheduled service - is an air transportation that operates regularly at set, advertised times no
matter how many people are booked on the flight.
• Chartered service -flown by charter airlines, usually sell seats to tour operators. The occasional
nature of their flights, they are not usually advertised and sold the way scheduled flights are.
• Privately – owned jets. In some cases, business travelers usually senior executives fly on a
corporate jet that their company owns.
• Fractional ownership- the plane has multiple owners who have set an amount of flight hours they
can use.
 FLIGHT TYPES AND ROUTES
• NON – STOP FLIGHT -traveler goes from Point A to Point B on the same aircraft with
no stop in between.

• DIRECT FLIGHT -traveler goes from Point A to Point B on the same aircraft but that
aircraft stops at an airport in between. The flight will still have one flight number.

• CONNECTING FLIGHT -traveler, to get to his destination, must change plane once,
twice or even more times. Each flight will have different flight numbers.
 ANOTHER WAY TO LOOK AT FLIGHTS – FROM THE
TRAVELER’S TICKETING POINT OF VIEW:

• ONE-WAY FLIGHT ITINERARY

the traveler goes to point A to Point B.
• ROUND TRIP FLIGHT ITINERARY
the traveler flies from Point A to Point B, stays a while and then returns from B to A
• OPEN-JAW FLIGHT ITINERARY
traveler flies from Point A to Point B then travels by ground transportation from B to C,
then returns by air from C to A.
• CIRCLE FLIGHT ITINERARY
traveler has two or more extended stopovers and returns to the originating city.
 CLASSIFICATIONS OF AIRLINES
1. MAJOR/FULL – SERVICE CARRIERS
• Servicing both domestic and international (including long haul) flights
• Usually offers several classes of service

2. REGIONAL – CARRIERS
• Also known as feeder airlines because their flights feed passengers from small cities into big city-airports and help
fill the large planes of the major airlines.

3. LOW COST CARRIERS (LCCs)

• Emerged after the liberalization of Civil Aviation in North America and Europe in 1970’s Cheap, point-to-point
services without any “frills”
• They offer basic services
• Passengers have the option to pay for extras such as food on board, in-flight entertainment and checked (in) baggage
 AIRLINE HUBS AND SPOKES

• HUBS are airline’s centralized operation units, usually near major population
centers, both domestic and international to serve as convergence airports for their
route systems.

• FORTRESS HUBS are airline dominated airports where airline administrative

centers are usually located.

• SPOKES Airlines flying smaller planes feed passengers from outlying towns into
hub cities forming the spoke of the hub.
 PURPOSE/MISSION

• SHORT HAUL – 750 miles and up to 3 hours flying time

• MEDIUM HAUL – 751 – 2,500 miles and 3 – 6 hours flying time
• LONG HAUL – over 2,500 miles and 6 – 13 hours flying time
• ULTRA-LONG HAUL – 14 hours and above
CLASSES OF SERVICE
 CLASSES OF SERVICE:
1. FIRST CLASS is in the compartment at the front of the plane.
• It usually features, among other things: wider seats;
• greater pitch;
• more recline;
• more elaborate meals;
• complimentary alcoholic beverages;
• and free movies.
2. BUSINESS CLASS- usually sandwiched between the first and the coach class. business class
represents a kind of service that’s almost as good as that found in the first class.
3. ECONOMY CLASS the more standard level of service also known as the coach class It features:
• narrower seats;
• less pitch and recline;
• simple meals or snacks or even no food service at all, except perhaps a bag of pretzels and soft
drink.
FIRST CLASS
BUSINESS CLASS
ECONOMIC CLASS
 FOREIGN RAIL SERVICE
In many countries, railways are still a major form of
transportation. Most of these railways are owned and
operated by the government. Other Factors besides
government subsidies account for the survival of
passenger trains:
• Private Car Ownership – lower compared to US and
Canada
• Price of Gasoline – gasoline is much more expensive in
Europe
• Proximity of major cities in Europe – European
capitals are far apart from major population centers
• Reliability of rail service
• Price of Air Travel – rail travel is almost always less
expensive
 MOTOR COACH

• Commonly known as the

“bus” has played a major role
in the surface travel industry
throughout the world. It is the
most widespread and the least
expensive form of public
transportation.
 CAR RENTALS

• The evolution of the car rental industry is

essentially the story of the Hertz Company,
started in 1918 when the 22-year old
entrepreneur Walter Jacobs opened the first
operation in Chicago with Model T Fords.
 TAXI, LIMOUSINE AND TRANSPORT NETWORK
VEHICLE SERVICES

• Taxi, Limousine and TNVS play an

important role in public transportation.
• They are called:ON-DEMAND PUBLIC
TRANSPORTATION.
• They don’t operate on a regular schedule,
rather, passengers arrange them
individually for service.
 THE ECONOMIC IMPORTANCE OF
TRANSPORTATION

Development can be defined as improving

the welfare of a society through appropriate • Mobility and Society
social, political and economic conditions. The
• Mobility Gaps
expected outcomes are quantitative and
qualitative improvements in human capital • The Social Externalities of Transportation
(e.g. income and education levels) as well as • The Environment as a Social Transportation
physical capital such as infrastructures Challenge
(utilities, transport, telecommunications).
 MOBILITY AND SOCIETY

• Mobility is one of the most fundamental and important

characteristics of human activities as it satisfies the basic need of
going from one location to the other, a need shared by passengers
and freight for different purposes.
 MOBILITY GAPS
Since mobility is one of the fundamental components of the economic benefits of
transportation, its variations are likely to have substantial impacts on the
employment, educational and social opportunities of individuals. There are three
forms of gaps:
• Unequal mobility between social groups and their respective transport resources,
such as car ownership and access to public transit.
• Differences in travel behavior between groups, including average distance,
frequency and travel time.
• Inequalities in accessibility to services such as retail and opportunities such as
employment.
 THE SOCIAL EXTERNALITIES OF
TRANSPORTATION

• With increased mobility, it has become common for parts of transportation

networks to be used above design capacity, particularly in urban areas.
• Congestion is the outcome of such a situation with its associated costs, delays,
and waste of energy (congestion is addressed in more detail in the Urban
Transport Challenges section).
• Distribution systems that rely upon on-time deliveries are particularly
susceptible to congestion as well as commuters seeking to arrive at work on
time. In addition, to involve additional costs, congestion involves additional
time which is perceived to be increasingly valuable in advanced economies.
 THE ENVIRONMENT AS A SOCIAL TRANSPORTATION
CHALLENGE

• The mobility provided by transport activities has a wide range of environmental

consequences, which have a cost that must be assumed by the users and society.
While many environmental issues can have negative health impacts, societal
tolerance to environmental externalities has significantly evolved. As income
and levels of education increase, society becomes more aware of environmental
concerns and has less tolerance for its negative impacts.
The most salient environmental challenges having social consequences
include:

• Air quality.
• Noise.
• Water quality
• Footprint.
• Direct impacts.
• Indirect impacts.
• Cumulative impacts.
 QUESTION

If the price of a plane ticket to a destination increases significantly,

then:

o Fewer tourists will come.

o More tourists will come.
o No tourists will come.
o Nothing will change.
 ASSIGNMENT #1

• Research two transportation and

explain the economic importance
such as mobility gaps.