Page 76 - Tourism The International Business

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cover its incremental costs while contributing as much as possible to fixed costs and also ensuring that the traffic
moves. It is up to management to analyze each route and each segment of the market and set prices accordingly.

Study questions
➢ What are the major market characteristics of air travel?

➢ How does government support travel by air, rail, sea and road?
➢ How did deregulation affect charters in the United States?
➢ What factors affect the future of air travel?
➢ Why did rail travel suffer a decline after World War II?
➢ List the three factors on which cruises are sold.

➢ What are the two goals of regulation?
➢ What have been the effects of deregulation?
➢ What are the characteristics of travel demand and supply?
➢ In what ways do transportation companies compete in the marketing of their services?

Discussion questions
➢ Discuss the importance to tourism of the following: airlines; rail; cruise and other ships; private cars;
recreational vehicles; car rentals; motor coaches.
➢ What actions have been taken to protect the traveling public while promoting the best possible

system of transportation?
➢ What have the effects of deregulation been on (a) the airline industry and (b) the traveling public?
➢ In what ways do the characteristics of demand for, and supply of, transportation affect the way it is
marketed?

Tourism the International Business 76 A Global Text