Sectors in Tourism - Research Paper Example

Sectors in Tourism No: Table of Contents Table of Contents 2 Introduction 3 The Sectors in the Tourism Industry 3 Sub-sectors of the Transportation Sector 5 Revenue Sources for the Tourism Industry 5 About TTC Canada 6 Costs associated with Transportation Operations 7 Target Audience related to the Transportation Sector 7 Demographic Segmentation 7 Psychographic Segmentation 8 Advertisement in the Transportation Sector 8 Effectiveness of the Advertisement in TTC Canada 9 Impact of barriers to Travel in the Transportation Sector 10 Conclusion 10 References 12 Introduction The paper aims to analyze a sector of the global tourism industry. It tends to conduct an in-depth analysis of the identified sector in terms of effective sub-divisions, revenue generation mechanisms, costs parameters, market and consumer segmentations of the greater target market and also in relation to a company selected relating to the specified sector. It also aims to understand and reflect on the different types of advertising activities conducted by the organizations related to the specific sector and also pertaining to the company that is identified pertaining to the specific sector or industry. Barriers to trade and entry relating to the specific region and industry would also be evaluated in the paper to help in generation of effective inferences. The Sectors in the Tourism Industry Likewise any other industry, tourism industry is also divided into various segments. The segmentation allows the industry to specifically target certain groups and cater to their needs by offering them with their requirements. The Tourism Industry is essentially divided into eight different sectors that can be listed as follows. Accommodation: The accommodation sector in the tourism industry of Canada reflects considerable growth thereby generating greater opportunities for potential investments to be made in the development of hotels and lodges. Estimates reflect that from 2012 to the current period the sector reflects increased contribution to the GDP of Canada and also helps in generating potential employment (Yokon Government , 2013). Adventure and Recreation: The scenic beauty of the tourism spots is observed to largely attract growing number of tourists from foreign countries and other locations. Moreover, the growth of adventure minded tourists also helps in generating needed revenue for this sector. Attractions: This tourism sector is developed based on the existence of heritage sites and also places of national and religious interest that helps in attracting large number of tourists to the regions. Events and Conferences: The emergence of business or corporate tourism accounts for the growth of potentials revenues for the different regions. This accounts for the development of trade and conference centers helping in the holding of key trade events and meetings. Food and Beverage: The growth of the flow of tourists to the different region is observed to contribute in the growth of food and beverage industry in the regions. This sector is observed to generate both potential employment and revenues relating to the different tourism regions. Tourism Services: The sector related to tourism services is constituted by the tour facilitators and researchers that contribute in both generating tour related information and in attracting significant tourists to the regions. Transportation: The existence of needed transportation in the form of rail, road, air and water is observed to potentially help in the growth of tourism in the different regions. The networking of the different region is enabled through the existence of effective transportation facilities that encourages the flow of tourists. Travel Trade: Another growing sector in the tourism industry relates to the existence of trading activities related to the travel segment. It consist the activities of the different touring agents and also other event planners in the tourism sector (Yokon Government, 2013). Sub-sectors of the Transportation Sector The transportation sector in Canada can be essentially divided along different sectors based on different modes of transport. Transportation activities are conducted in Canada based on the incorporation of different transport modes relating to air, rail, water, freight and car. Air transport systems in Canada gain needed significance owing to the need for travelling along large distances. Thus a large number of airports are created long the different cities of the region to help facilitate the growth of air transport. Similarly, the use of rail transport systems in the region gain significance owing to the proper availability of trains. The train journey reflects needed comfort and convenience for the people to commute from one region to another in a safe and easy manner. The cheapest mode of travel in the Canadian region relates to the use of buses for commutation purposes. Availability of a large number of air conditioned buses in the region is observed to help in the growth of road transport activities. Other public modes of transport relate to the existence of ferries and cars that help in ease of transportation of passengers via waterways and highways (Government of Canada, 2014). Revenue Sources for the Tourism Industry The government of Canada tends to gain revenues from different sections relating to the tourism activities conducted in the region. The revenue sources can be once again divided into primary and secondary sources. The principal or the primary sources of revenue relates to the existence of different types of taxes that are levied on the varied activities conducted pertaining to the tourism industry. The following leads to secondary sources of revenue where the taxes are earned by the government from the hotels in the form of services and room tax. Further, taxes are collected from the salaries and wages of the employees while also tax is levied on the sales of the hotel rooms to the tourists. Likewise, taxes are also levied by the government to the different types of commodities and services that are availed by the tourists from time to time during their stay in the region. Another primary mode for earning revenue relates to the levying on taxes on the different types of products that are used by the different tourists visiting the region (Statistics Canada, 2009). Therefore from the above analysis it is evident that the tourism industry of Canada is driven by both primary and secondary sources of revenue and most importantly both the sources have equal importance. About TTC Canada Toronto Transit Commission (TTC) based in Canada operates as a Public Transport Agent that helps in generating transportation services to the people based on the use of rail, road and air transport systems. The company came into presence during 1921. It operates based on a large network of stations, bus routes, street car networks and a large number of bus and car routes that help in the growth of transport activities thereby contributing to the meeting of the needs of passengers during rush hours. TTC ranks as the third largest heavy public transport system in operation relating to the North American region (Toronto Transit Commission, 2014). The operations of the company are carried out through the use of buses, rapid transit system and also through the use of streetcars. Use of the above transport modes in a combined form contributes in the generation of effective transportation services to the people in Canada. The activities of the Toronto Transit Commission (TTC) are largely founded by the Federal Government. It is observed that TTC operates as one of the largest and costly transit systems in the North American region. Along with the Federal Government different provincial government bodies like the Quebec Government helps in generating funds to the company thereby helping in subsidizing its operations (Government of Canada, 2014). Costs associated with Transportation Operations The cost associated with the transportation operations relating to the Canadian region (Government of Canada, 2014) is observed to be fairly high compared to the other North American regions. Costs of fares for the road and water transport systems are observed to be potentially high. This reflects the requirement of the regulatory bodies and the state authorities to generate effective subsidies to rightly help in reducing the costs of the transport operations relating to the region (Carbaugh, 2012). Target Audience related to the Transportation Sector The target audience relating to the transportation sector in Canada would be analyzed based on the segmentation of the target market based on demographic and psychographic segmentation. The above process of market segmentation would be applied pertaining to the case of Toronto Transit Commission in that it works as the largest inter-region transportation agency in Canada. Demographic Segmentation The demographic segmentation of the target market relating to TTC’s operation in Canada can be rightly carried out based on the following segments outlined as follows. The demographic segmentation of the commuters relating to TTC is constituted by student communities falling in the age group ranging from 13 to 1 years of age. In that the company does not tend to require identification cards of students relating to the age group of 13 to 15 years. Students relating to the age group ranging from 16 to 19 years are required to furnish an ID proof. These students can easily commute with the help of TTC transport systems based on the use of metro passes and also through the buying of tickets from the different stations. Similarly, another category of students relating to the Post-Secondary level are also observed to constitute a significant target group for TTC in Canada. The company along with professionals and young people also encourages the movement of children through their transport systems. The children relating to the age group of 24 months tend to commute in a free fashion while children relating to age groups of 12 years or under are observed to avail the facility of a cash ticket for movement along different regions. The transit agency company is observed to potentially encourage the commutation of senior people rating to age group of 65 years or older to effectively commute through the use of Metro Pass and also through the use of different types of weekly and student passes (Toronto Transit Commission, 2014). Psychographic Segmentation The psychographic segmentation for the commuters relating to Toronto Transit Commission (TTC) reflects that the consumers focus on the gaining of different types of passes and offers to rightly commute from one region to another. The target customers based on Psychographic Segmentation of TTC reflects such consumers that focus on the gaining of value to the money expended for sales of tickets and passes from the company. This requires TTC to generate effective passes and discounts to help in the generation of cost effective movement for commuters from one region to another. Large number of passes like Metro pass, Weekly and Day Passes and also Downtown and Convention Passes are generated to the commuters for ease of transport (Toronto Transit Commission, 2014). Advertisement in the Transportation Sector The advertisement related to the transportation sector in Canada is observed to focus largely on the generation of large scale awareness relating to the reduction of greenhouse gas emissions. The advertising is observed to be a potential medium by the company to generate large scale awareness and propaganda for the use of green transport systems. The advertisements of the transportation sector in Canada are observed to be created and generated based on the environmental and transportation policies of the North American and the Canadian government. In the same way, the advertisements of the Canadian transportation sector are also observed to potentially focus on the parameters of innovation and technology to rightly reflect on the use of advertisements for attracting potential customers (Reguly, 2014). The advertising activities of Toronto Transit Commission (TTC) are observed to be carried out through the use of digital advertising activities in the different stations of Toronto and also based on the use of transport systems and vehicles. Use of different modes of advertising schemes like the installation of Platform Video Screens is generated along the different stations for conducting of advertising activities. The advertising activities of TTC are rightly governed by the regulatory and advertising monitoring activities relating to the monitoring regions. In cases of generation of complaints relating to the advertising activities the advertisements are encouraged to be forwarded to the Advertising Review Group for effective assessment. The company honors the decisions generated by the review committee as final. This accounts for the removal of advertising policy from its different areas (Toronto Transit Commission, 2014). In a recent advertisement campaign, TTC is observed to have removed advertisements that have created problem for the people pertaining to the Israel communities. The company focuses on the removal of advertisements that have tended to largely discriminate the rights of people relating to the Jewish and Israeli communities (Kalinowski, 2013). Effectiveness of the Advertisement in TTC Canada TTC Canada is observed to build its advertisements based on the creation of different types of advertisements for the internet and the mobile media. Development of advertisements to be generated along the internet based mediums is observed to contribute in providing large scale awareness for the company in the potential target market. Further, the use of social networking tools like Facebook and YouTube is also observed to be largely incorporated by the company to potentially penetrate its identity and awareness relating to the larger target market. Use of outdoor digital advertising activities is conducted by the company through the installation of video screens along the different stations. The development of blogs and forums are largely used by the company to help in generating greater acceptance for the company in the potential target market (Kalinowski, 2013). Impact of barriers to Travel in the Transportation Sector The trucking sector or the transportation industry in Canada is observed to face fierce competition relating to the emerging of private players in the region. The trucking sector in the region is observed to suffer from low margins and also from very low barriers to entry. High entry barriers are also observed relating to the different transport sectors pertaining to freight or rail. The existence of other factors like unavailability of effective drivers for driving the cars and trucks with also the growth of mergers and acquisitions in the transportation sector of Canada greatly reduce the entry of new companies in the Canadian transportation market. The rising cost of operations related to the transportation sector in Canada is also taken to account for the growth of high entry barriers for other companies to effectively build its presence in the Canadian transportation sector. This feature is taken to help TTC sustain its supremacy and market leadership in generating effective transportation services to the people in the region (Vaidya, 2006). Conclusion The paper reflects the activity of the transportation sector relating to the tourism industry. It further focuses on the activity of a company like the TTC or the Toronto Transit Communication relating to the different transportation modes used by the company to deliver transportation services to the Canadian people and other visitors. The paper reflects on the growth of effective transportation cost in the Canadian region with also the existence of large entry barriers pertaining to the different transportation sectors. The paper also reflects on the different types of advertising programs that are conducted by the transportation sector in Canada with also the advertising activities relating to TTC. It reflects that TTC tends to generate large scale awareness for its services through the use of digital advertising mediums and also the use of social networking sites and other mobile and internet advertising activities. The demographic and psychographic segmentation of the target market for TTC is reflected in the paper where commuters pertaining to varying age groups are observed to focus on the availing of value based services from the company. References Carbaugh, R. (2012). International Economics. United States: Cengage Learning. Government of Canada. (2014, January 21). Transportation. Retrieved from http://www.cic.gc.ca/english/newcomers/after-transportation.asp Kalinowski, T. (2013, October 21). TTC rejects controversial Middle East ad campaign. Retrieved from http://www.thestar.com/news/gta/2013/10/21/ttc_rejects_controversial_middle_east_ad_campaign.html Reguly, E. (2014, May 9). Canada’s $207,000 oil sands ad: Putting a price on deception. Retrieved from http://www.theglobeandmail.com/report-on-business/international-business/canadas-207000-oil-sands-ad-of-priceless-deception/article18594081/ Statistics Canada . (2009, January 20). Government revenues from tourism. Retrieved from http://www41.statcan.gc.ca/2008/4007/ceb4007_002-eng.htm Toronto Transit Commission. (2014). Advertising on TTC. Retrieved from https://www.ttc.ca/TTC_Business/Advertising_on_TTC/index.jsp Toronto Transit Commission. (2014). Passes. Retrieved from https://ttc.ca/Fares_and_passes/Passes/index.jsp Toronto Transit Commission. (2014). Post-Secondary Students, Seniors, Students and Children. Retrieved from https://ttc.ca/Fares_and_passes/Fare_information/Seniors_students_and_children/index.jsp Vaidya, A. K. (2006). Globalization: Encyclopedia of Trade, Labor, and Politic. United States: ABC-CLIO. Yokon Government . (2013). Tourism Sectors. Retrieved from http://www.tc.gov.yk.ca/isu_sectors.html Read More