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Where have you been on holiday this year? Have you ever thought about all the different places available to visit on how they are organised and funded? Think of your holiday choice and identify which sector made this possible. The Travel & Tourism (T&T) industry is always changing and developing to meet the changing needs and perceptions of customers. The industry is dominated by the private sector and is made up of small and medium sized sector companies. It is dependent on new technologies and can be vulnerable to external pressures such as down turns in the economy. The British Tourist Authority (Visit Britain) estimated that there were at least 200,000 T&T businesses in the UK with most small to medium in size. The industry is still dominated by a small number of national and multinational companies. The differences between the sectors can be examined through the differences in ownership, aims and objectives and sources of funding. 1. Why is the T&T industry changing and developing? 2. Which sector dominates the T&T sector? 3. How many T&T business are estimated to exist in the UK? 4. How can you investigate the differences between the private, public and voluntary sectors? Private Sector These organisations are directly or indirectly in private ownership. They usually aim to make profits from the services and products they provide for their customers. The benefits go to the shareholders of the organisation. The main activities of the private sector are retail sales, catering, accommodation, entertainment, travel services and tourism. Many of the private companies are well known such as Virgin, Thomas Cook and British Airways. It is estimated that a handful of large organisations hold as much as 50% of the market. Travel and Tourism facilities provided by the private sector include hotels, theme parks, travel agencies and restaurants. The largest operators have considerable power and control the market. They can obtain substantial discounts from other travel business such as hotels and airlines. In some cases they actually buy the other parts of the supply chain. For example a tour operator could by an airline and hotel chain and use these purchases to put holiday packages together (e.g. Thomas Cook). 5. What are the main aims for the private sector? 6. How does private sector make a profit? 7. What are the main activities of the private sector? 8. Name 3 well known private sector companies? 9. What % of the market is dominated by the handful of large companies? 10. What are the advantages of being a large T&T company? 11. Why do large T&T companies try to by airlines and hotels?
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