Transportation

1
Transportation

• The tourism industry would cease to function
  without an efficient and effective transportation
  system
• Transportaion is often intermodal with
  travelers relying on several different modes of
  transportation to reach their final destination.

2
Historical Developments

• Sailing
• Steam-powered ships. in the early 19th century
  and began regular service across the Atlantic.
• Steam engine technology was also used to developp
  passenger rail service.

3
Historical Developments

• Commercial jet aircraft were created in the mid
  1900s. Plane replaced ships
• With innovation in road construction and mass
  production of the automobile in the early 1900s,
  the automobile became affordable to a large
  segment of the population. Cars replaced train.

4
Cruise Ships Travel Today

• Cruise ships differs from other type of
  transportation the primary purpose is not only
  to provide transportation, but serve as a
  destination.

5
Rail Service Today

• In Europe, important mode of intercity
  transportation. ? cheaper than air travel
• Developments of High Speed trains
• Developments of pass holders
• Developments of speciality train

6
Speciality Trains

• Eurostar or chunnels
• Orient Express
• The Blue Train
• Copper Canyon
• The Palace Wheels
• Indian Pacific

7
Mode of Transportation for U.S. Trips
Auto 75
Airplane 16
Rental car 3
Other 6
8
Airplane Historical Developments

• Cars replaced train
• The development of the airplane reduced the
  passenger ocean liner
• Plane replaced liner
• In 1999 1,5 billion air trips were recorded
• In 2010 2,3 billion air trips are expected

9
Decoding the Language of the Airline World

• Every Airline has an Identification code
• Every city has an Airport code
• Code to identify Class of Service
• Code to identify Intermediate Stops
• Code to identify Type of Trips

10
Yield Management An Example

• A small plane with a seating capacity of 37 seats
• On a 150-mile flight between A and B Cities
• We know that we can sell 37 seats at 39.00,
  which is a low price for in advance purchase
  ticket37x 39.00 1443.00
• We also know that we can sell 15 seats at
  98.00,which is a full fare ticket for
  businessmen15x98.001470.00
• Which one would you choose? Why?

11
Yield Management An Example

• Plane has 37 seats
• 37x 39.00 1443.00
• 15x98.001470.00
• Which one would you choose? Why?

A
B
150 miles
12
Yield Management An Example

• To maximize the revenue, the company sells
• 8 seats at 39.00, which is a low price for more
  than 30 days in advance purchase ticket
• 12 seats at 59.00, which is a low price for more
  than 14 days in advance purchase ticket
• 17 seats at 98.00 full-fare ticket that can be
  sold up to the time of departure. What is the
  total?
• (8x 39.00) (12x 59.00) (17x 98.00)
  2686.00
• What is missing?

13
Yield Management An Example
A
B
150 miles

• To maximize the revenue, the company sells
• 8 seats at 39.00
• 12 seats at 59.00
• 17 seats at 98.00
• (8x 39.00) (12x 59.00) (17x 98.00)
  2686.00
• What is missing?

14
Other Key Statistics Load Factor

• A small plane with a seating capacity of 37 seats
  will go to a 150-mile destination. 30 tickets
  were sold
• Another plane with a seating capacity of 45 seats
  will go to a 100-mile destination. 37 tickets
  were sold
• Which plane has a better load factor ?
• Divide Revenue Passenger Miles (RPMs) by
• Available Seat Miles (ASMs)
• (150x30) / (150x37)
• (100x37) / (100x45)

15
Other Key Statistics Load Factor

• A small plane with a seating capacity of 37 seats
  will go to a 150-mile destination. 30 tickets
  were sold
• Another plane with a seating capacity of 45 seats
  will go to a 100-mile destination. 37 tickets
  were sold
• Which plane has a better load factor ?
• Divide Revenue Passenger Miles (RPMs) by
• Available Seat Miles (ASMs)
• (150x30) / (150x37) 4500 / 5550 0,81
• (100x37) / (100x45) 3700 / 4500 0,82

16
Yield Management Hotel

• A Hotel in Antalya has 1000 rooms applying the
  all inclusive system.
• The hotel knows they can sell to foreigners rooms
  at 120.00 with a occupency rate of 65
• The hotel also knows that we can sell to Turkish
  travelers, rooms at 80.00 with a capacity of
  100
• Which one would you choose? Discuss