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Travel and Tourism

As the travel and tourism industry emerges from the shock of the pandemic, companies have a clear opportunity to reset their business model and ways of working. Our tourism consulting experts help companies craft the right strategy for success.

COVID-19 challenged travel and tourism companies to think more boldly than ever. As these companies navigate continued changes to the industry, those that remain flexible and adaptive stand to gain significant market share and security. And fundamentals—like managing pricing and customer relationships—coupled with innovation will be key to a strong post-crisis performance.

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How BCG Helps Travel and Tourism Companies

We currently work with the top travel and tourism companies across the globe.

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Over the past five years, we have collaborated on more than 1,100 travel and tourism initiatives, working closely with airlines, railways, the hotel industry, the cruise industry, theme parks, gaming and casinos, government tourism organizations, and more.

We treat travel and tourism as its own unique entity, not an offshoot of adjacent industry topics. Airlines and railroads look very different when seen through a travel and tourism lens versus a logistics and transportation lens. The difference is stark—and now more than ever, travel and tourism needs a highly customized approach. That’s what we offer at BCG.

Our Client Work in Travel and Tourism

Our travel and tourism consulting teams work with clients on a wide variety of topics, including strategy , people and organization , sales and distribution, post-merger integration , travel operations, digital operations, business transformation , digital transformation , pricing and revenue management, and social impact and sustainability . Here are just a few examples of our impact in travel and tourism and the hospitality industry.

45 percent improvement

A low-cost carrier with 75% to 80% load factor had a 45% improvement in their forecasting accuracy, using BCG’s state-of-the-art Machine Learning demand forecasting approach.

750 million US dollars in expense reduction

While working with BCG to identify and eliminate hidden costs, a US airline reduced expenses by $750 million , with no layoffs or involuntary moves.

25 times the return on investment

A multibillion-dollar global hotel chain needed to enhance its loyalty program. After working with BCG to redesign the loyalty program and build up marketing capabilities, the organization achieved a 20 to 25 times return on investment over five years.

25 percent profit improvement

Our travel and tourism consulting team worked with an underperforming online travel agency to define a profitable growth strategy focused on specific consumer segments, creating a plan to improve profits by 20% to 25% .

SPOTLIGHT ON ORBITZ AND JOURNERA

In 2000, during a period of slow growth for airlines, five major US carriers—American, Continental, Delta, Northwest, and United —joined forces to create the travel portal Orbitz. BCG was involved in designing, building, and launching the startup from the beginning. Five managers from BCG oversaw operations, finance, IT, corporate development, and HR, and helped build a company that sold in 2004 for $1.25 billion. More recently, in partnership with Jeff Katz, the founding CEO of Orbitz Worldwide, BCG cofounded Journera, an industry-wide platform that provides secure, real-time data exchange to help companies create more seamless travel journeys. When it comes to big ideas, we don’t simply consult. We co-create.

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BCG on Consumer

Follow us on LinkedIn for the latest insights and news on consumer products, retail, fashion, and travel.

Meet Our Travel and Tourism Consultants

Learn more about travel and tourism.

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Can Rising Borrowing Costs Create Unexpected Opportunity for Hotels?

Uncertainty, inflationary fears, and elevated interest rates have a chilling effect on investment. But strong demand for rooms makes hotels one of the few sectors that enjoy pricing flexibility in a broader economic downturn.

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To Uncertainty and Beyond in the Travel Industry

In this episode of The So What from BCG, Jason Guggenheim, BCG’s global leader of travel and tourism, explains how companies can sharpen their ability to sense shifts in demand.

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Professionals in this field facilitate people’s exploration of the world by arranging trips, managing accommodation, and creating memorable travel experiences.

In this programme, you will develop an understanding of the South African and African travel and tourism industry, covering domestic and international travel. You’ll develop expertise in travel industry operations, including selling skills and financial practices according to industry and operational requirements. This distinctive programme offers you the chance to acquire work-ready skills through three months experiential training, enabling you to develop the necessary capabilities for the workforce.

This Short Learning Programme can serve as a foundation for pursuing admission to a Boston Higher Certificate or Occupational qualification, should you wish to continue your studies.

Travel and Tourism Operations Programme

Entry Requirements

National Senior Certificate; or National Certificate (Vocational) Level 4; or equivalent qualification OR Learners can apply for RPL entry into the programme from the Academic Committee at Boston Head Office.

This programme is offered by Boston City Campus in the distance mode of education with support provided at Learner Support Centres. Apply to register at any Boston City Campus Learner Support Centre nationwide.

All modules are compulsory and must be passed.

Ito RPL, on successful completion the Learner may apply for admission to a Boston Higher Certificate Programme or an Occupational Qualification. Each submission is individually evaluated, hence neither admission nor advanced placement is assured.

*Formative Assessments are undertaken and the highest grade achieved in Formative Assessment is retained. The final grade is based on the Summative Assessment only. A maximum of one (1) additional supplementary assessment opportunity is provided for the Summative Assessment, which will be charged for.

**Learners are free to select an alternative system, for example Galileo but this is not taught at Boston. In this case the Learner must not register for the module Global Distribution System but must furnish proof of certification.

***Please note that Learners must obtain experiential training (workplace experience) for a minimum of three months. The obligation to find a suitable experiential training workplace does not rest with Boston City Campus.

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  • An understanding of the travel and tourism industry
  • Ability to demonstrate an understanding of customer service
  • Ability to demonstrate computer literacy in the travel and tourism environment
  • Ability to operate in the travel and tourism environment
  • Destination knowledge and fully conversant in travel geography
  • A working knowledge and competency with fares and ticketing, and travel documentation
  • Ability to handle financial practices, calculations, procedures and transactions according to industry and operational requirements

BOSTON SHORT LEARNING PROGRAMME

On successful completion the Learner will be issued a Boston Short Learning Programme Travel & Tourism Operations

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Towards resilience and sustainability: Travel and tourism development recovery

Window view of plane wing during sunset. The travel and tourism sector is slowly beginning to recover.

The travel and tourism sector is slowly beginning to recover. Image:  Unsplash/Eva Darron

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travel and tourism operations

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  • The World Economic Forum has published its inaugural Travel and Tourism Development Index .
  • It focuses on the growing role of sustainability and resilience in travel and tourism growth.
  • Recovery for the sector is uneven and tourist arrivals in January 2022 were still 67% below 2019 levels, according to the World Tourism Organization.
  • Here are some key findings from the index on how the sector can build back better.

In 2018, international tourism grew for the ninth consecutive year. Tourist arrivals reached 1.4 billion and generated $1.7 trillion in export earnings, according to the World Tourism Organization (UNWTO).

Travel and tourism: post-pandemic

The picture looked very different two years later, as COVID-19 lockdowns hit the travel and tourism (T&T) sector hard. In 2020 alone, it faced losses of $4.5 trillion and 62 million jobs , impacting the living standards and well-being of communities across the globe.

While the roll-out of COVID-19 vaccines and easing of restrictions means a recovery has now started, it’s proving gradual and uneven largely due to variations in vaccine distribution, and because of Omicron and its BA.2 subvariant. And customers are not only being more cautious when it comes to health, but also around the impact of travel on the environment and local communities.

International tourist arrivals rose by 18 million in January 2022 compared with a year earlier. This equals the increase for the whole of 2021 from 2020, but January’s numbers were still 67% below the same month in 2019, according to the UNWTO.

The war in Ukraine has added to instability and economic disruption for the sector. Against this backdrop, the World Economic Forum’s inaugural Travel and Tourism Development Index reflects the growing role of sustainability and resilience in T&T growth, as well as the sector’s role in economic and social development more broadly.

The TTDI benchmarks and measures “the set of factors and policies that enable the sustainable and resilient development of the T&T sector, which in turn contributes to the development of a country”. The TTDI is a direct evolution of the long-running Travel and Tourism Competitiveness Index (TTCI), with the change reflecting the index’s increased coverage of T&T development concepts, including sustainability and resilience impact on T&T growth and is designed to highlight the sector’s role in broader economic and social development as well as the need for T&T stakeholder collaboration to mitigate the impact of the pandemic, bolster the recovery and deal with future challenges and risks. Some of the most notable framework and methodology differences between the TTCI and TTDI include the additions of new pillars, including Non-Leisure Resources, Socioeconomic Resilience and Conditions, and T&T Demand Pressure and Impact. Please see the Technical notes and methodology. section to learn more about the index and the differences between the TTCI and TTDI.

The Travel and Tourism Development Index 2021

The index covers 117 economies, which accounted for around 96% of the world’s direct T&T GDP in 2020. It measures the factors and policies that will enable sustainable and resilient development of the sector.

These include everything from business, safety and health conditions, to infrastructure and natural resources, environmental, socioeconomic and demand pressures.

“As the sector slowly recovers, it will be crucial that lessons are learned from recent and current crises and that steps are taken to embed long-term inclusivity, sustainability and resilience into the travel and tourism sector as it faces evolving challenges and risks,” says the publication, a collaboration between many of the sector’s stakeholders.

The index consists of five subindexes, 17 pillars and 112 individual indicators, distributed among the different pillars, as shown below.

The Travel and Tourism Development index is based on 17 pillars.

On average, scores increased by just 0.1% between 2019 and 2021, reflecting the difficult situation facing the sector. Only 39 out of 117 economies covered by the index improved by more than 1.0%, while 27 declined by over 1.0%.

Nine of the top 10 scoring countries are high-income economies in Europe or Asia-Pacific. Japan tops the ranking, with the United States in second, followed by Spain, France, Germany, Switzerland, Australia, the United Kingdom and Singapore. Italy completes the top 10, moving up from 12th in 2019.

Viet Nam experienced the greatest improvement in score, with a rise of 4.7% lifting it from 60th to 52nd on the overall index. Indonesia achieved the greatest improvement in rank, increasing its score by 3.4% to climb from 44th to 32nd, while Saudi Arabia achieved the second greatest improvement in rank, moving up to 33rd from 43rd as its score rose by 2.3%.

Rebuilding travel and tourism for a sustainable and resilient future

Here are some of the key findings from the publication:

1. The need for travel and tourism development has never been greater

The sector is a major driver of economic development, global connectivity and the livelihood of some of the populations and businesses most vulnerable to, and hard hit by, the pandemic. In 2019, T&T’s direct, indirect and induced GDP accounted for about 10% of global GDP . For many emerging economies, T&T is a major source of export revenue, foreign exchange earnings and investment. Research has shown that T&T growth can support social progress and create opportunities and well-being for communities, so supporting travel and tourism development and recovery will be critical.

2. Shifting demand dynamics have created opportunities and a need for adaptation

In the shorter term, challenges such as reduced capacity, geopolitical tensions and labour shortages are slowing recovery. However, opportunities have been created in markets such as domestic and nature-based tourism, the rise of digital nomads and “bleisure” travel – the addition of leisure activities to business travel. Many countries have provided incentives to boost domestic tourism. For example, Singapore, South Korea, Japan and Hong Kong SAR, China, have rolled out programmes that provide discounts, coupons and subsidies for domestic travel. The trends towards more rural and nature-based tourism offer an opportunity for less-developed economies to harness the benefits of travel and tourism given that the distribution and quality of natural assets are less tied to performance in economic development, with natural resources being one of the few pillars where non-high income economies typically outperform high-income countries. The travel and tourism sector stakeholders’ ability to adapt under these conditions highlights its capacity for adaptation and flexibility.

3. Development strategies can be employed to help the sector build back better

Amid the current challenges, shifting demand dynamics and future opportunities and risks, a more inclusive, sustainable and resilient travel and tourism sector can be – and needs to be – built, says the publication. But this calls for thoughtful and effective consideration. It also requires leveraging development drivers and strategies. This can be done by: restoring and accelerating international openness and consumer confidence through, for example, improved health and security; building favourable and inclusive labour, business and socioeconomic conditions; focusing more on environmental sustainability; strengthening the management of tourism demand and impact; and investing in digital technology.

A note on the methodology

Most of the dataset for the Travel & Tourism Development Index (TTDI) is statistical data from international organizations, with the remainder based on survey data from the World Economic Forum’s annual Executive Opinion Survey, which is used to measure concepts that are qualitative in nature or for which internationally comparable statistics are not available for enough countries. The index is an update of the Travel & Tourism Competitiveness Index (TTCI), but due to the altered methodology, framework and other differences, the 2021 TTDI should not be compared to the 2019 TTCI. To help address this, the 2019 results were recalculated using the new framework, methodology and indicators of the TTDI. Therefore, all comparisons in score and rank throughout this report are between the 2019 results and the 2021 results of the TTDI. Data for the TTDI 2021 was collected before the war in Ukraine.

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Hospitality, Travel and Tourism Management (BS)

Program description.

The BS in Hospitality, Travel and Tourism Management prepares students for management positions in one of the largest economic sectors worldwide. Combining a thorough liberal arts program of study with industry- specific business classes, students gain in-depth knowledge in the areas of hospitality finance, sales and marketing, revenue management, special event planning, destination development, and food and beverage operations. Students learn how to develop new hotel and resort concepts, market tourism destinations, and manage tourism and convention bureaus. Frequent site visits, industry events, and guest speakers ensure that students make use of all the opportunities New York City has to offer, both in and out of the classroom. In addition, they gain hands-on experience through internships, which develop them into successful—and highly employable—industry professionals.

New York University's Office of Undergraduate Admissions supports the application process for all undergraduate programs at NYU.  For additional information about undergraduate admissions, including application requirements, see How to Apply . 

Program Requirements

Concentrations.

The program requires the completion of 128 credits, and students may choose one of six concentrations listed below.

The BS in Hospitality, Travel and Tourism Management prepares students for a wide range of careers in hotels, restaurants, catering companies, real estate and management services companies, online travel agencies, marketing and PR firms, destination marketing organizations, event companies and consulting firms. The degree has six concentrations:

Event Management

This concentration explores career opportunities in festivals, weddings and social events, trade shows, and experiential marketing.

The event sector is growing fast, and offers a wealth of career opportunities. Whether you are interested in festivals, weddings, business conventions or sporting events, this concentration will equip you with the skills and knowledge you need to succeed in this exciting field.

Event planning, design and production are a central focus of this concentration. Event planners/producers coordinate every detail of the event: from the venue and speakers to arranging for printed materials and audio-visual equipment. They develop the concept for the event, and liaise with suppliers and staff. Event planners/producers may work for non-profit organizations, associations, hotels, corporations, and government. Many are independent business owners and coordinate events for a range of clients.

Events can also play an important role in a company’s marketing strategy. Experiential or event marketing is a promotional strategy that involves face-to-face contact between companies and their customers at special events like concerts, fairs, and sporting events. Brands use event marketing entertainment (like shows, contests, or parties) to reach consumers through direct hand-to-hand sampling or interactive displays.

Marketing and Analytics

In this concentration, students study hospitality and travel sales and marketing, as well as strategies and processes that optimize a business’s revenues.

The marketing and analytics concentration provides students with in-depth knowledge of the marketing functions of hospitality businesses.  Professionals in marketing and branding roles need strong analytical skills as they conduct market research, oversee multimedia advertising campaigns, and consult with outside agencies, promotional representatives and corporate executives.

Marketers and revenue managers currently evolve in an increasingly digital and data-driven environment. They are tasked to develop and implement strategies to maximize the business's revenues and profitability. On the basis of daily reports, they make predictions of demand and make distribution channels and pricing decisions. They also leverage the power of loyalty programs and optimize the entire guest acquisition phase; in partnership with travel agencies - on and offline - and other travel intermediaries.

Leadership and Management

This concentration focuses on the operational aspects of hospitality businesses – a great concentration for budding general managers!

The leadership and management concentration provides students with in-depth knowledge of the operational aspects of hospitality businesses. This is an attractive concentration for budding general managers, as the concentration includes aspects of sales and marketing, food and beverage management, but also leadership and law. Hotel operations roles are available in a wide range of departments: front desk, catering, events, housekeeping and human resources. Professionals in operations oversee the daily activities of their teams, and aim to ensure guest satisfaction.

Hotel Real Estate Finance and Development

This concentration provides students with in-depth knowledge of financial management and the hotel development process.

The hotel real estate finance and development concentration provides students with in-depth knowledge of financial management and the hotel development process. Hotel finance careers may include responsibilities such as overseeing the financial processes of the hotel, maintaining audits and reports, producing monthly income statements, and coordinating budgets and forecasts. The hospitality sector is mostly associated with the hotel industry, however, many other asset classes fall into this sector, including large scale resorts, spas, timeshares, restaurants and casinos.

Another aspect of this concentration is hotel development and asset management. Many well-known hotel brand names do not own the building in which the hotel operates, but rather contract their management and brand name to the owner for a fee. Owners and real estate investment trusts employ analysts to maximize the returns earned by the property. Hotel investment professionals produce valuations, and make recommendations about the development of new assets or the remodeling of existing assets.

Travel and Tourism Development

This concentration prepares students for careers in destination marketing organizations, (online) travel agents, tour operators, airlines, cruise lines, PR firms, and visitor attractions.

The travel and tourism industry has shown remarkable resilience in the face of economic challenges, geopolitical conditions and natural disasters. It remains one of the largest and fastest growing industry sectors in the world. Graduate tourism degrees prepare students for a wealth of careers in the public, private and voluntary sectors. WTTC estimates that the travel and tourism sectors support 292 million jobs worldwide, or 1 in every 10 jobs.

The travel and tourism development concentration prepares students for careers in destination marketing organizations, (online) travel agents, tour operators, airlines, cruise lines, event companies, development agencies, marketing and PR firms and visitor attractions. Students will explore various aspects of this large and multi-faceted sector, including casinos, special interest tourism products, sports tourism and mega-events, entrepreneurship and destination marketing.

Entrepreneurship

In this concentration, students will learn the different aspects of the typical entrepreneurship journey: from ideation, to prototyping,  to business launch, and management as applied to hospitality.

Entrepreneurship plays a crucial role in innovation, economic development and competitiveness. The entrepreneurship concentration provides students with in-depth knowledge of the crucial role that entrepreneurship plays in the travel and hospitality business. It also provides them with the entrepreneurial and innovative mindset sought after by many employers. The courses offer an overview of the different aspects of the typical entrepreneurship cycle, from ideation to business launch and management. Courses in this concentration are experiential,  applying theory to real world problems and opportunities.

Sample Plan of Study

Learning outcomes.

Upon successful completion of the program, graduates will:

  • Comprehend the historical development of the industry, including its key global stakeholders, terminology and data/information sources.
  • Develop analytical and critical thinking skills, by understanding the selection of appropriate research methods and data, and the principles of analyzing data effectively to address industry challenges.
  • Develop the business skills and attributes required of contemporary, global hospitality and tourism professionals, to include the areas of management, service, leadership, communication, ethical responsibility, finance and technology.
  • Develop strong business writing skills, as well as engaging and effective presentation skills.
  • Develop a specialized focus on a specific area of study within hospitality and tourism.
  • Prepare for successful careers by integrating work experiences with academics.

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School of professional studies policies.

University-wide policies can be found on the New York University Policy pages .

Additional academic policies can be found on the School of Professional Studies academic policy pag e. 

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  • BS in Hospitality, Travel and Tourism Management

BS in Hotel and Tourism Management Student at Roman Colosseum

Bachelor of Science (BS) in Hospitality, Travel and Tourism Management

If you are considering a hospitality major as your undergraduate program of study, the BS in Hospitality, Travel and Tourism Management, offered by the Jonathan M. Tisch Center of Hospitality prepares students for careers in hospitality, travel and tourism, tourism experience management, hotel and resort management, and hotel real estate development. The curriculum provides you with flexibility to explore career options way beyond what a typical hospitality and tourism degree might offer. As a student enrolled in this program, you’ll benefit immensely from earning your degree at NYU , home to more than 50,000 students from around the globe, while launching your career in New York City—a location defined by its world-class hotels and tourist attractions.

Degree Advantage

  • Curriculum  prepares students for hospitality and tourism jobs around the world
  • Provides an NYU liberal arts education
  • Concentrations  in Event Management , Hotel Real Estate Finance and Development , Marketing and Analytics , Leadership and Management , Travel and Tourism Development , and Entrepreneurship
  • Internships at leading NYC hotels, restaurants, tourism bureaus, online travel agencies, and promotional companies
  • Study abroad opportunities  and industry site visits
  • New Hospitality Innovation Hub for students, start ups, and industry partners

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Who should earn the bs in hospitality, travel and tourism management.

If you have a passion for travel, love to interact with people, and have an innate curiosity to learn about different cultures, this degree provides the knowledge and skills needed for a hospitality career. The diversity of the Tisch Center student body and faculty members promotes a worldview that will be critical for your success in a field that is more globally interconnected than ever before.

Degree Overview

Learn from a faculty of world-renowned experts.

Faculty members are respected experts in the hospitality, hotel management, and travel and tourism sectors who share their knowledge, insights, experiences, and connections. They work directly with you to ensure that you identify and pursue the professional path that best fits your career goals and objectives. Their support and deep dedication is what makes earning a degree from the Tisch Center an experience unlike all others.

Gain Invaluable Experience Through Study Abroad

Study abroad opportunities abound for BS in Hospitality, Travel and Tourism Management students through Global Field Intensives (GFIs). These travel experiences provide international business experience while attuning students to the cultural, socio-economic, and political forces that influence the international hospitality, and travel and tourism industries. Recent GFIs include trips to: Abu Dhabi, Dubai, Prague, and Berlin.

Benefit from Unsurpassed Networking Opportunities

The BS in Hospitality, Travel and Tourism Management provides unsurpassed networking opportunities through the annual  NYU International Hospitality Industry Investment Conference , chaired by  Jonathan M. Tisch , chairman and CEO of Loews Hotels and Co. (left); the Grossinger-Bergman Distinguished Lecturer Series, which features hospitality leaders such as  David Marriott ; and fireside chats with the likes of famed chefs and restaurateurs  Daniel Boulud  and  Danny Meyer .

Internships and Job Opportunities

Through the Tisch Center of Hospitality and the NYU Wasserman Center for Career Development at NYU SPS, hospitality, travel and tourism management majors have the opportunity to complete a wide range of hospitality, and travel and tourism internships that provide the hands-on experience needed to accelerate their careers. Many of these internships evolve into permanent hospitality and tourism jobs. Our graduates go on to careers at top hotel chains, boutique hotels, travel organizations, tourism bureaus, media companies, restaurants, and food and beverage companies including:

  • Estee Lauder Companies
  • Four Seasons Hotels and Resorts
  • Loews Hotels
  • Marriott International
  • The Standard Hotels
  • Walt Disney World

FREQUENTLY ASKED QUESTIONS

How does this degree differ from a hospitality management degree.

The BS in Hospitality, Travel and Tourism Management differs from a hospitality management degree in its holistic approach to the hospitality, travel, and tourism sectors. While traditional undergraduate hospitality management degrees focus on hotels and restaurants, you will have the opportunity in this degree to also explore subjects like destination marketing, tourism development, and event management.

Will this degree prepare me for hotel management jobs?

The BS in Hospitality, Travel and Tourism Management will prepare you for a range of hotel industry jobs and career paths. You will have the opportunity to specialize in your field of interest, including hotel or tourism operations, sales and marketing, revenue management or hotel development. Our students secure internships and work at large multinational hotel chains as well as independent boutique hotels.

Is tourism management a growing field?

Tourism management offers a broad range of career options for those who are interested in pursuing tourism jobs. The tourism sector has experienced incredible growth in the past decades. with 1.8 billion tourists—just over one in five persons in the world—traveling around the globe by 2030 (UNWTO). The BS in Hospitality, Travel and Tourism Management provides students with the opportunity to secure internships at a broad range of tourism destinations including Walt Disney World.

Can an undergraduate hotel management degree help my career?

An undergraduate hotel management degree can help your career, because it will provide you with a wealth of business skills and the networking opportunities that can lead to a wide variety of hotel management jobs. The hospitality sector is vast and offers a wealth of career choices, but even if you decide to switch career paths, the business foundation you acquire will allow you to pursue a career in a variety of other professional sectors. In addition, earning an undergraduate degree at NYU will open the doors to job opportunities in New York City and around the world.

What are the advantages of earning a hospitality management degree in New York City?

The advantage of earning your hospitality management degree in New York City is that you will be studying in the hospitality capital of the world. New York City is home to top hotels, the finest restaurants, major tourist attractions and thousands of world-famous events. The City will become your professional base for exploring your interests in hospitality, travel and tourism management and for gaining the experience you need to secure a job in this growing field.

Travel agency and tour operation

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travel and tourism operations

  • Zongqing Zhou 3  

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Travel agencies and tour operators are two related but can be independent business models that operate as intermediaries between suppliers and tourists. In many cases, travel agencies are also tour operators and vice versa, particularly in countries other than the United States . This is understandable considering the history of their evolution in different countries.

Structure and history

Travel agencies can be defined as a sector that books, sells, and arranges travel , tour , and accommodation services provided by suppliers of the industry (Bhatia 2013 ). Some are primarily engaged in making travel arrangements and reservation services. These agencies include online-only booking systems such as Expedia.com. Others offer their own packages and thus act as tour operators.

Tour operators are businesses that plan, package, market, and sell multiple vacation elements, including air or surface transportation and accommodations (USTOA 2014 ). Package tours are generally sold through travel...

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Bhatia, A. 2013 The Business of Travel Agency and Tour Operations Management. New Delhi: Sterling Publishers.

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Meyer, J., and C. Oster 1987 Deregulation and the Future of Intercity Passenger Travel. Boston: MIT Press.

Stevens, L. 1990 Guide to Starting and Operating a Successful Travel Agency. Clifton Park: Cengage Learning.

USTOA 2014 United States Tour Operators Association www.ustoa.com (20 April).

Zhou, Z. 2004 E-commerce and Information Technology in Hospitality and Tourism. New York: Delmar.

Zhou, Z., and L. Lin 2000 The Impact of the Internet on the Use of the Print Brochure. Proceedings of the CHRIE’s Annual Conference, 19-22 July, New Orleans, Louisiana.

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Zongqing Zhou

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Jafar Jafari

School of Hotel and Tourism Management, The Hong Kong Polytechnic University, Hong Kong, Hong Kong SAR

Honggen Xiao

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Zhou, Z. (2014). Travel agency and tour operation. In: Jafari, J., Xiao, H. (eds) Encyclopedia of Tourism. Springer, Cham. https://doi.org/10.1007/978-3-319-01669-6_206-1

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DOI : https://doi.org/10.1007/978-3-319-01669-6_206-1

Received : 08 December 2014

Accepted : 08 December 2014

Published : 25 September 2015

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Online ISBN : 978-3-319-01669-6

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Management Of Travel & Tourism Operations

ICM Professional Diploma Unit

  • Inhabited places
  • What makes a place?
  • Population growth
  • Natural characteristics
  • The built environment
  • The people and the patterns of life
  • The economic situation
  • Political standards and systems
  • Historic and artistic characteristics
  • Media, entertainment and recreation
  • International links
  • Pace of change
  • Urbanisation
  • Places are unfinished

Tourist Destinations

  • A destination
  • Domestic market foundations
  • Types of destination
  • Purposes of travel
  • General interest tourism
  • Special interest tourism
  • Special interest focus and purpose
  • Business and professional travel
  • VFR, health, religious and other travel
  • The destination and its three stages
  • The destination as a marketing mix
  • An initial framework
  • Travel motivations
  • What competes?
  • Ego benefits
  • Popular culture and mass tourism
  • The tourism product includes other tourists
  • Tourism communities
  • Visitors’ interpretation
  • Not meeting, meeting or exceeding expectations
  • Visitor surveys
  • From destination to tourism product
  • The total product
  • Product components
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  • The intangibles

Accommodation

  • Predominant features
  • Completeness
  • The marketing mix
  • Types of accommodation
  • Size and characteristics of units
  • The accommodation product
  • Project feasibility
  • Factors influencing a destination’s accommodation
  • Shaping a destination’s accommodation mix
  • The role of tour operators
  • A commodity
  • The hotel room as a commodity
  • The health of the hotel and accommodation sector
  • The travel marketing mix
  • Road transport
  • Air transport
  • Marine transport and inland waterways
  • Visas and facilitating entry
  • Key transportation points
  • Cycles in general
  • Product life cycles
  • Tourist destinations can fall away
  • Changeability
  • Proximity to major markets
  • Obsolescence
  • Staying alive

Market Research

  • The objectives of market research
  • The business climate
  • Structure and complexity
  • Desk research
  • Intelligence
  • The performance of the tour operators
  • Information systems
  • Disseminating information
  • Evaluating results
  • The image of a destination
  • The core image
  • The brand image
  • The contemporary viewpoint
  • Setting the tone
  • Romance, familiarity and intimacy
  • Sign systems
  • Fiction and reality
  • Other ideas of reality
  • The unfinished image
  • Prices and tourism receipts
  • Tourism’s economic impact
  • Reducing leakage
  • Elasticity of demand
  • Price related to the image
  • Currency exchange rates
  • Anti trust and monopoly controls
  • Two-tier pricing
  • Yield management
  • Key pricing criteria

Positioning

  • The importance of positioning
  • The positioning of ‘classics’
  • Formulating the marketing mix range
  • The positioning matrix
  • Where does promotion fit in?
  • What does promotion consist of?
  • Public and private sector roles
  • Public and private sector disharmony
  • The different levels of promotion
  • Joint public and private sector approaches
  • Indirect promotion
  • The promotional budget
  • Looking at governance
  • Managing the tourism sector
  • Approaching tourism sector management
  • The role of the Government Tourism Administration (GTA)
  • Words and concepts
  • Tourism development planning
  • Consensus building
  • Involvement, participation and change
  • Forecasting
  • Selling tourism
  • Facilitation
  • The product on the travel agent’s shelf
  • The tour operator’s catalogue or brochure
  • Consumer protection
  • Reservations systems
  • The retail travel agency
  • Checking the retail network
  • Selling business and convention tourism
  • The speed of sales decisions

Management Tools

  • The relationship between the public and private sectors
  • Different ways of seeing – types of approach
  • Using the tools
  • Public awareness
  • A sector-wide training programme
  • Developing the destination

Regeneration and Re-engineering

  • Cycles and positioning
  • Future development
  • Improvement opportunities
  • Modifying markets and repositioning
  • Tourism policy
  • The degree of development
  • Listing the projects
  • Planning as part of management
  • Tourism planning
  • Carrying capacity
  • Investment promotion
  • Investment workshops
  • Facilitating new investment
  • Repositioning through expansion
  • Expansion decisions

Quality and Standards

  • Quality and quality management
  • The control cycle
  • The International Standards Organisation
  • Management style
  • A question of values
  • Quality circles
  • Tangible and intangible items
  • Empowerment
  • Quality control and improvement
  • Quality management workshops and other training incentives

Legislation

  • A legislative framework
  • All sectors of society
  • Registration, licensing, classification and grading
  • Minimum standards
  • Checklist for the development of tourism regulations
  • The right of appeal
  • An ombudsperson

Physical Planning

  • The planning system
  • Different planning levels
  • Environmental impact
  • Planning regulations
  • Listed buildings
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  • Building regulations

Classification and Grading

  • The purposes of classification and grading systems
  • The failure of government-driven systems
  • Helping the user choose
  • Who can operate a classification and/or grading system?
  • The difference between classification and grading
  • Advisory services and training
  • The Scottish tourist board
  • Private sector guides

Human Resources

  • The place of human resources development
  • A human resources development strategy
  • Working conditions
  • Future workforce and training needs
  • Training institutions and programmes
  • A national council for tourism education and training

The Tourism Sector Checklist – Part II

  • The tourism development strategy
  • Human resources
  • The management tools
  • Organisation and management

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Recommended Reading

Main text: ‍.

The Management of the Tourism Sector – Roger Doswell (ICM/Columbus Publishing)

Indicative Text:

Alternative text and further reading:.

Tourism: How Effective Management Makes the Difference – Roger Doswell (Butterworth Heinemann)

The Journal of Tourism Management – (Butterworth Heinemann)

The Management of Tourism – Burkart & Medlik (Heinemann)

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Are you interested in the business aspects of travel, tourism and hospitality? If so, then a career in tourism operations management could be a great fit. Imagine working in places all over the world or creating great experiences for tourists who visit Minnesota or the U.S.  

The hospitality and tourism management certificate is a great accompaniment to the associate’s degree in Hospitality Management. After earning that degree, you can continue as a junior to earn a bachelor’s degree in hospitality management at a Minnesota State university.  

What are Typical Careers in Hospitality and Tourism Management?

Tourism operations management courses can prepare you for some very interesting roles that ensure fun, memorable experiences for thousands of people, such as  

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The hospitality and tourism operations management certificate will help you gain the skills needed to promote an attraction or destination. You’ll learn how to create a successful experience for travelers, too. Your courses include

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For over 30 years, WTTC has conducted research on the economic impact of Travel & Tourism in 185 countries and issues such as overcrowding, taxation, policy-making, and many others to raise awareness of the importance of the Travel & Tourism sector as one of the world’s largest economic sectors. As a non-profit membership-based organisation, our members and partners are the core of our organisation and include over 200 CEOs, Chairpersons, and Presidents of the world’s leading Travel & Tourism companies from all geographies and industries.  

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This program is offered in Seneca's hybrid delivery format with some courses available in Seneca's flexible delivery format. Some coursework is online and some must be completed in person. Students will need to come on campus to complete in-person learning requirements. For courses offered in the flexible delivery format, professors use innovative learning spaces and technology to teach students in a classroom or lab and broadcast in real time to students attending remotely. In flexible courses, students have the choice of coming on campus or learning online.

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This eight-month certificate program is designed to develop your skills and knowledge appropriate for an entry-level position in the tourism and travel industry. In this program, you will learn to proactively promote tourism and travel products and services, improve the quality of customer experience, and discover major global tourism attractions and destinations.

Throughout this program you will develop the following skills:

  • Globally savvy

Your Career

When you graduate from this program, these are the types of career options you can explore:

Ground transportation

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Travel retailers and tour operators 

Ticket and counter agent

Marketing representative

Reservationist

Front desk clerk

Home-based travel counsellor

Convention/conference/meeting planner assistant 

Internet travel retailer

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Association of Corporate Travel Executives (ACTE)

Association of Canadian Travel Agencies (ACTA)

Cruise Line International Association (CLIA) 

International Society of Tourism and Travel Educators (ISTTE)

Meeting Professionals International (MPI)

Travel Industry Council of Ontario (TICO)

Tourism Industry Association of Canada (TIAC) 

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Russia is open for international travelers regardless their citizenship/country of residence. Tourist visas are being issued in the USA, Australia, New Zealand, Canada, the UK, EU, Japan, and worldwide. Electronic visas (up to 16 days of stay, single entry) are available for the following nationals: Austria, Andorra, Bahrain, Belgium, Bulgaria, Cambodia, Croatia, Cyprus, China, Czech Republic, Democratic People's Republic of Korea, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, India, Indonesia, Iran, Ireland, Iceland, Italy, Japan, Kuwait, Latvia, Lithuania, Liechtenstein, Luxembourg, Malaysia, Malta, Mexico, Monaco, Myanmar, Netherlands, North Macedonia, Norway, Oman, Poland, Portugal, Philippines, Romania, San Marino, Saudi Arabia, Serbia, Singapore, Slovakia, Slovenia, Spain, Switzerland, Sweden, Taiwan, Turkey, Vatican, Vietnam.

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International flights to Moscow and St Petersburg are available via Tbilisi (Georgia), Yerevan (Armenia), Baku (Azerbaijan), Istanbul (Turkey), Belgrade (Serbia), Dubai & Abu-Dhabi (UEA), Doha (Qatar), Algiers (Algeria),Tehran (Iran), Muscat (Oman), Cairo (Egypt), Astana & Almaty (Kazakhstan), Beijing, Shanghai, Guangzhou, Chengdu, Chongqing, Shenzhen, Qingdao & Xian (China), Delhi (India), Colombo (Sri-Lanka), Male (Maldives). Information changes frequently, please inquire.

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Explore the best travel destinations in Russia with our wide range of sightseeing tours to Moscow, St Petersburg, Golden Ring, Kazan; Northern Lights viewing tours; wildlife & nature tours to Lake Baikal tours, Altai, Kamchatka tours, Trans-Siberian train tours, and more. Find the best guided trips and expert planned Russian holidays 2023-2024.

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Back to the future? Airline sector poised for change post-COVID-19

It’s difficult to overstate just how much the COVID-19 pandemic has devastated airlines. In 2020, industry revenues totaled $328 billion, around 40 percent of the previous year’s. In nominal terms, that’s the same as in 2000. The sector is expected to be smaller for years to come; we project traffic won’t return to 2019 levels before 2024.

Financial woes aside, the pandemic’s longer-term effects on aviation are emerging. Some of these are obvious: hygiene and safety standards will be more stringent, and digitalization will continue to transform the travel experience. Mobile apps will be used to store travelers’ vaccine certificates and COVID-19 test results.

Other effects, though, are more profound. Unlike the 2008 global financial crisis, which was purely economic and weakened spending power, COVID-19 has changed consumer behavior—and the airline sector—irrevocably.

This article will explore five fundamental shifts in the aviation industry that have arisen from the pandemic. For each of these shifts, we also issue a call to action. By responding to these shifts decisively now, carriers should be able to look beyond the pandemic and adapt to the long-term realities of COVID-19.

1. Leisure trips will fuel the recovery

Business travel will take longer to recover, and even then, we estimate it will only likely recover to around 80 percent of prepandemic levels by 2024. Remote work  and other flexible working arrangements are likely to remain in some form postpandemic and people will take fewer corporate trips.

In previous crises, leisure trips or visits to friends and relatives tended to rebound first, as was the case in the United Kingdom following 9/11 and the global financial crisis (Exhibit 1). Not only did business trips take four years to return to precrisis levels after the attacks on the World Trade Center but they also had not yet recovered to pre-financial-crisis levels when COVID-19 broke out in 2020. Therefore, we expect that as the pandemic subsides, the rise in leisure trips will outpace the recovery of business travel.

Some carriers are highly dependent on business travelers—both those traveling in business class and those who book economy-class seats right before they need to travel. While leisure passengers fill up most of the seats on flights and help cover a portion of fixed costs, their overall financial contributions in net marginal terms are negligible, if not negative. Most of the profits earned on a long-haul flight are generated by a small group of high-yielding passengers, often traveling for business. But this pool of profit-generating passengers has shrunk because of the pandemic.

Corporate travel

A McKinsey Live event on 'Returning to corporate travel: How do we get it right?'

The call: Revisit flight economics

Airlines should reevaluate the economics of their operations, especially long-haul flights. First, a smaller contribution from business traffic could necessitate a different pricing logic. For example, today most carriers price point-to-point nonstop flights at a premium. Travelers who value time over price—mostly business travelers—book these nonstop flights. Leisure travelers, even those traveling in premium classes, are more price sensitive and may choose an indirect routing. This large gap between nonstop pricing and connect pricing may need to narrow.

Second, lower business traffic may require network changes. Airlines added many flights over the past few years between hubs and smaller cities, using small-size widebodies such as the Boeing 787. These flights work because of the high-yielding business demand. With business demand subdued, economics favor larger aircraft flying less frequently. Airlines may find that larger aircraft such as Airbus A350s or Boeing 777s—which have lower unit costs—become the base of the long-haul network.

Third, airlines may also look at reconfiguring the layout of their cabins to address the increased share of leisure traffic. At the simplest level, lower business-class demand may warrant smaller business-class cabins. Taking this further, products may shift to better cater to premium-leisure passengers, such as growth of premium-economy cabins or development of business-class seats more suitable for traveling as couples or groups.

2. Staggering debt levels will lead to ticket price increases and a larger role for government in the sector

Many airlines have had to borrow huge sums of money to stay afloat and cope with high daily cash burn rates. Tapping into state-provided aid, credit lines, and bond issuances, the industry collectively amassed more than $180 billion worth of debt in 2020, 1 “COVID-19 lowers airline credit ratings and raises the cost of debt,” International Air Transport Association, August 21, 2020, iata.org. a figure equivalent to more than half of total annual revenues that year. And debt levels are still rising (Exhibit 2). Repaying these loans is made even harder by worsening credit ratings and higher financing costs.

These costs will need to be recouped. Therefore, we’ll likely see ticket prices rise. By our estimates, this could amount to a rise in ticket prices of about 3 percent, assuming a ten-year repayment window for only the additional debt taken on.

Furthermore, when demand for air travel returns, it will likely outpace supply initially. We see a glut of latent demand of people eager to travel. It will take time for airlines to restore capacity, and bottlenecks such as delays in bringing aircraft back to service and crew retraining could lead to a supply–demand gap, resulting in higher short-term prices.

In many cases, airline rescue efforts come in the form of government bailouts—with strings attached. We’re seeing a reemergence of, or increase in, the level of state ownership and influence. In Europe alone, TAP Air Portugal, Lufthansa Group, and Air Baltic all received state aid combined with an increase or reintroduction of government shareholdings.

The call: Be a constructive collaborator

As the state becomes a more active player—whether as a creditor, a direct shareholder, or as part of the board—airlines will find themselves having to deal more closely with the authorities. Instead of seeing this as a necessary restriction to access much-needed funds, airlines can treat it as an opportunity to shape how the sector evolves with a key stakeholder.

Airlines can work with regulators to set standards across a gamut of issues. These could include committing to reductions in greenhouse-gas emissions in return for more labor flexibility; increasing the cash-on-hand requirements to make airlines more resilient against future shocks; more balanced value sharing between airlines and other sectors such as airports; or changes in the ownership caps to allow greater inflows of foreign capital, reducing the reliance on state capital further down the road.

3. We will see a greater disparity of performance among airlines in the future

Some airlines have responded to the pandemic by restructuring for greater efficiency; others are merely muddling through. Occasionally, this is linked to state-aid programs, which may reduce the incentive for much-needed measures such as cost, organizational, and operational restructuring. Airlines that are not proactively transforming risk failing to set the business up for longer-term structural value creation.

As such, we’re seeing some airlines pull ahead. Before COVID-19, an airline boasted an ROIC well ahead of the overall industry’s rate of 5.8 percent. Not only did its stronger position pre-COVID-19 enable it to navigate the crisis thus far without taking on government loans of the scale relative to other airlines, it also made it possible for it to restructure to emerge with an even more competitive cost base.

Another group of carriers that have an opportunity to transform their business are airlines that have access to a restructuring process, such as Chapter 11 in the United States. These carriers can renegotiate midlife leases, shed excess debt, and emerge leaner. They will be fierce competitors going forward.

The call: Aim higher when it comes to IT and digital investment

Becoming better can necessitate investment. Even though many airlines find themselves in financial straits, we recommend investing more in IT and digitalization, not less. Before the pandemic, airlines spent roughly 5 percent of their revenue on IT. This is relatively low compared with other sectors. By means of comparison, the retail industry spends around 6 percent on average, and financial services 10 percent.

Airlines could consider stepping up IT and automation investment now. For example, airlines can respond to the quicker recovery of domestic and short-haul flights by investing in direct sales and owning the customer relationship. Relationships with IT and distribution providers could be reexplored. Carriers can also invest in the customer experience—such as making check-in and boarding processes more seamless—and support services—from revenue accounting to invoicing—to drive the next level of efficiency. Beyond this, the next horizon is analytics, which involves, among other efforts, using data  in smarter ways to enhance decision making, requiring some investment but yielding significant payoffs .

4. Aircraft markets may be oversupplied for some time to come

In the years before COVID-19, aircraft OEMs ramped up production in the anticipation of continued growth. This has led to a glut in aircraft availability. Furthermore, some carriers have returned relatively new aircraft to lessors, such as Norwegian Air Shuttle when it exited the long-haul market. Prices for used-aircraft leases have plummeted and are likely to remain lower. For instance, the monthly lease rate of a 2016 vintage Boeing 777-300ER aircraft was around $1.2 million in 2019. In 2020, the rate fell to less than $800,000. New aircraft are rumored to be available at even deeper discounts.

The call: Act countercyclically now, if you can

If finances permit, carriers can consider acting countercyclically: locking in orders for new aircraft or confirming operating leases now when demand is low. Aircraft are a significant expense for an airline, making up 10 to 15 percent of a carrier’s cost base. As lease rates and OEM pricing fluctuate with supply and demand levels, inking deals during a crisis could allow carriers to enjoy a cost advantage for years to come.

5. Air freight will see undersupply for some time

Over the past ten years, low cargo rates and the unprofitability of the cargo business have led many airlines to relinquish or scale back their dedicated cargo freighter fleets. However, cargo has been a lifeline for the aviation industry during COVID-19. Before the pandemic, cargo typically made up around 12 percent of the sector’s total revenue; that percentage tripled last year. Based on data from the Airline Analyst, only 21 (down from 77 in 2019) of the airlines around the world that disclosed their operating performance achieved positive operating profits for the third quarter of 2020, traditionally the industry’s most profitable quarter. Among these 21 airlines, cargo revenue accounted for 49 percent of total revenues on average.

During the pandemic, e-commerce sales soared while many passenger flights—which are responsible for delivering around half of total air cargo—were grounded. As a result, cargo yields increased by about 30 percent last year. As commercial flights gradually return, belly supply will increase, although not to pre-COVID-19 levels for at least a few years, as the industry is expected stay smaller than before the pandemic for several years.

The call: Bring back freighters, carefully

In response to the high demand and low supply of air freight right now, carriers could investigate short- to medium-term opportunities to boost their cargo services. Airlines can enhance their flexibility through measures such as increasing the deployment of so-called preighters, or passenger airplanes that are used to transport cargo. Airlines may look at freighter conversions, especially as their passenger fleets reduce in number.

Airlines need to be agile. Rushing headlong into developing and maintaining a large freighter fleet again comes with risk. Airlines need to grow cargo in an agile way that allows for quick adjustments; pursuing such a play should be seen as part of a wider theme of establishing a more flexible production setup. High fixed costs combined with unpredictable demand levels outside an airline’s control increase the need for airlines to be able to scale down supply nimbly.

The impact of the COVID-19 pandemic is far from over. There is some relief to be found in various parts of the world now that vaccinations have begun, but the road to recovery for air traffic will take several years. The shape of the post-COVID-19 airline sector is becoming clearer and holds lessons for airlines today. Multiple longer-running trends have been accelerated, such as digitization and the phasing out of less efficient aircraft. Burdened by debt, many carriers have depleted their cash reserves. But the forecast is not without bright spots. Travel will become greener and more efficient, and people are itching to travel again for holidays. Taking steps now will help airlines thrive in this transformed sector.

Jaap Bouwer is a senior expert in McKinsey’s Amsterdam office, Steve Saxon is a partner in the Shenzhen office, and Nina Wittkamp is a partner in the Munich office.

The authors wish to thank Alex Dichter and Vik Krishnan for their contributions to this article.

This article was edited by Jason Li, a senior editor in the Shanghai office.

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‘Prepare for the marathon and be ready for the course to change’: An interview with the Boston Logan Airport CEO

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travel and tourism operations

120+ SMMEs shine at Africa's Travel Indaba 2024

As Africa's Travel Indaba (ATI) 2024 kicks off today, more than 120 enthusiastic small, medium, and

micro enterprises (SMMEs) will eagerly showcase their service highlights, marking it as the pinnacle of their marketing endeavours.

Themed, "Unlocking Opportunities", the renowned Africa Travel Indaba, which takes place at the Inkosi Albert Luthuli International Convention Centre in Durban, KwaZulu-Natal, from Monday, 13 May to Friday, 16 May 2024, is expected to connect the tourism industry with unlimited opportunities.

The event is expected to be attended by 9,000 delegates from more than 25 countries.

Acting chief executive officer for Tourism KwaZulu-Natal (TKZN), Sibusiso Gumbi, said of the 120 SMMEs, 15 are KwaZulu-Natal-based SMMEs, which are part of TKZN's Tourism Enterprise Development Programme.

Gumbi said the SMMEs will be using every opportunity to showcase and sell their products and services to the thousands of domestic and

international travel buyers attending the indaba.

“These fledgling businesses exhibiting on the TKZN stand have an integral part to play in the growth and development of the tourism sector.

SMMEs not only contribute to job creation but are important for bringing new products to market and creating jobs,” Gumbi said.

While most outbound travel is dominated by corporates, Gumbi noted that 80% of those serving the inbound market are small owner-managed

operations.

“In fact, small businesses account for more than 80% of the tourism industry as a whole.

SMME growth initiatives implemented

“We want SMMEs to grow into substantial players in this critical sector of our economy. However, we know transformation will not occur

spontaneously but requires deliberate and sustained effort from all stakeholders.

“For this reason, we have implemented various programmes to ensure that our SMMEs get the much deserved and needed support.

Enabling SMMEs to attend ATI is one of the ways in which we assist emerging tourism businesses,” Gumbi said.

EThekwini Municipality’s Economic Development and Planning Committee chairperson, Thembo Ntuli said the city’s economy will benefit immensely from hosting this four-day event.

“Hotel occupancy is expected to be between 85% and 95%. The total expected spending is estimated at R177m, contributing R439m to eThekwini’s GDP with 796 jobs to be created,” Ntuli said.

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