Ownership of the Travel & Tourism Industry

There are three main sectors in the travel and tourism industry they are as bellow: Private Sector Public Sector Voluntary sector Private Sector This is the biggest of the three sectors. In this sector all of the businesses are funded by individual private finances, for example the owner’s savings and investments. All profit made then goes straight back to the owner, who would then keep the profit or re invest it to expand the business.

There are four different types in the private sector, they are: 1.

Sole trader 2. Partnerships 3. Private Limited Company’s 4. Public Limited Company’s Sole Trader – Is one person, who sets up a business on their own, they have their own supplies, finance, savings, and borrowings. They will also keep all of the profits. However the disadvantage to being a sole trader is that if your business fails you could loose everything including your home, car etc. An example could be like a hairdressers or the local shop.

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Partnership – This is similar to Sole trader but it is 2 or more people. Like above they have unlimited liability and could loose everything. The owners here should draw up a plan and make sure that they have an understanding of where the profit goes. An example could be a travel agency.

Private Limited Company – This is probably the most common form of ownership in the Travel & Tourism industry. It consists of more than two people who start up the business and are then share holders. This is a popular method as it means the owners are entitled to limited liability so they can only loose what they invest.

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The profit is then split between the shareholders, the holders with the highest number of shares taking the biggest chunk of the profit. They cannot advertise their shares for sale as it is a private limited company; however they can invite people and other businesses to invest in them. For example a more successful travel agency like Thomas Cook.

Public Limited Company – This is similar to the Private Limited Company except from the fact that Public Limited Company’s tend to be very large firms, like TUI and Thomas Cook. They can also advertise to find others who want to invest in their business and the profit is also a dividend. Like above all shareholders will only loose what they invest rather than loosing their house and car etc. The role of the private sector is to provide the products and services for the company, which will then be available for the public. Public Sector The public sector is the sector that is owned by us, there are two main types: 1. National Government 2. Local Government

National Government – the main body the in the Travel & Tourism sector in control of promoting the UK is VisitBritain. There Job is to go to trade fairs all over the world and to advise and sell Britain internationally, as the country relies a lot on the finances it receives through the Travel & Tourism sector that then can go back into making the country better economically. There are also various different regionally tourist boards, there job is to promote the different parts of the UK, the different regional tourist boards include the Southern Tourist Board, Western Tourist Board, Northern Irish Tourist Board etc.

Above VisitBritain is the Department of Culture, Media & Sport, they are a department part of the government that are responsible for supporting the countries tourism. They are responsible for putting money into all of the countries museums, cathedrals, art galleries, zoo’s etc. They also support VisitBritain the countries main promoter in the travel & tourism industry, and all of the regional tourist boards like the Northern Irish Tourist Board.

Local Government – The Local Government’s role is to provide money to their sector and to also make sure that all facilities, attractions are maintained and kept in as good condition as possible. Their role is basically to make their region as attractive as possible in order to promote tourism in the region; this would then create more jobs and a wealthier region in the long run. They provide their money to facilities like car parks, coaches, public toilets, museums, beaches, leisure centre’s, library’s, new infrastructure etc.

Voluntary Sector This is the smallest of the sectors in the travel and tourism industry, it is where people / organisations carry out certain roles not for profit. The biggest organisations in this sector are probably charities, which raise money for a specific cause. There are also community centres which tend to be the voluntary sector and religious groups can be led by voluntary organisations. Trade Organisations ABTA – This stands for the Association of British Travel Agents, it is a company that was set up in 1950. It is now the biggest trade organisation in the UK and has around 1500 members. It is beneficial to its members as it provides financial support by protecting the holidays, should anything go wrong.

IATA – Abbreviated is the International Air Traffic Association, it was formed around 60 years ago by a group of airlines, it now currently has around 240 members and holds 94% of scheduled air traffic. The benefits for its members are; that it simplifies the travel process, keeps costs down, passengers can reserve tickets by making one phone call, it allows airline to operate safely, securely and efficiently under laid out rules.

CAA – Stands for the Civil Aviation Authority, it was established in 1972, and acts as an independent specialist regulator / provider of air traffic services. It is also the UK’s largest of its type, and covers areas like economic regulation, airspace policy, safety regulation and consumer protection. AITO – Stand for the Association of International Tour Operators, it is an organisation that holds all of the UK’s specialist tour operators, and it currently 150 members. It is similar to abta in the fact that it provides financial protection for all the holidays.

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Ownership of the Travel & Tourism Industry. (2020, Jun 02). Retrieved from https://studymoose.com/ownership-travel-tourism-industry-4289-new-essay

Ownership of the Travel & Tourism Industry

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