10
ECONOMIC ENVIRONMENT
1 TOURISM IN THE ECONOMY
1.1 Economics and economy
1.2 Significance of tourism
1.2.1 Multiplier Effect
1.2.2 Employment
1.2.3 New business
1.2.4 Increased commercial and residential development
2 BUSINESS ENVIRONMENT IN HUNGARY
2.1 Financial sector
2.2 Taxation
2.3 Forms of companies
3 MARKETING IN TOURISM
3.1 Services and their Characteristics
3.2 Marketing
Questions and Topics for Discussion
- Why is the multiplier effect one of the main reasons for encouraging tourism in developing countries?
- Which are the most common forms of business companies in the tourism and catering industries?
- Why are many developers reluctant to invest in leisure and tourism enterprises?
- What are the advantages and drawbacks of foreign investors’ presence in the tourism and catering industry in Hungary?
- What is the essence of marketing?
- Which are the marketing mix elements for tourism?
- What types of promotional activities are commonly applied in the tourism industry?
- Why is market research important and how is it carried out?
- Explain market segmentation.
- List some promotional tools.
1 TOURISM IN THE ECONOMY
1.1 Economics and economy
Economics is a social science that studies how rational individuals, groups, and organizations (called economic actors, players, or agents), manage scarce resources which have alternative uses, to achieve desirable ends. The study of economics is generally divided into two main parts, one called macroeconomics and the other microeconomics.
Macroeconomicsis a branch of economics dealing with the performance, structure, behaviour, and decision-making of an economy as a whole, rather than individual markets. This includes national, regional, and global economies. Macroeconomists study aggregated indicators such as GDP, unemployment rates, and price indices to understand how the whole economy functions.
Microeconomics is a branch of economics that studies the behaviour of individual households and firms in making decisions on the allocation of limited resources. Typically, it applies to markets where goods or services are bought and sold. Microeconomics examines how these decisions and behaviours affect the supply and demand for goods and services, which determines prices, and how prices, in turn, determine the quantity supplied and quantity demanded of goods and services.
Economic sectors
The economy is divided into three sectors of activity:
- extraction of raw materials (primary),
- manufacturing (secondary), and
- services (tertiary).
The tertiary sector of the economy (also known as the service sector or the service industry) is one of the three economic sectors. The service sector consists of the "soft" parts of the economy, i.e. activities where people offer their knowledge and time to improve productivity, performance, potential, and sustainability, what is termed affective labour. The basic characteristic of this sector is the production of services instead of end products. Services (also known as "intangible goods") include attention, advice, access, experience, and discussion. For the last 100 years, there has been a substantial shift from the primary and secondary sectors to the tertiary sector in industrialised countries. This shift is called tertiarisation. The tertiary sector is now the largest sector of the economy in the Western world, and is also the fastest-growing sector.
Typical industries:
- Government
- Telecommunication
- Hospitality industry/Tourism
- Mass media
- Healthcare/hospitals
- Public health
- Information technology
- Waste disposal
- Financial services
- Banking
- Professional services
- Accountancy
- Legal services
- Management consulting
- Consulting
- Gambling
- Retail sales
- Franchising
- Real estate
- Education
1.2 Significance of tourism
Tourism is important, even vital, source of income for many countries. Its importance was recognized in the Manila Declaration on World Tourism of 1980 as "an activity essential to the life of nations because of its direct effects on the social, cultural, educational, and economic sectors of national societies and on their international relations."
Tourism brings in large amounts of income into the local economy in payment for goods and services, accounting for 30% of the world's "exports" of services, and 6% of overall exports of goods and services. It also creates opportunities for employment in the service sector of the economy associated with tourism.
The service industries which benefit from tourism include transportation services, such as airlines, cruise ships, and taxicabs; hospitality services, such as accommodations, including hotels and resorts; and entertainment venues, such as amusement parks, casinos, shopping malls, music venues, and theatres.
1.2.1 Multiplier Effect
Owing to the linkages of tourism activity, the tourist expenditure and related investment induces income generation in the host economy. The direct effects are those created in the establishments trading directly with tourists and further rounds of economic activity create indirect effects.
Tourism also encourages growth in the primary and secondary sectors of industry. This is known as the multipliereffect which in its simplest form is how many times money spent by a tourist circulates through a country's economy.
Money spent in a hotel helps to create jobs directly in the hotel, but it also creates jobs indirectly elsewhere in the economy. The hotel, for example, has to buy food from local farmers, who may spend some of this money on fertiliser or clothes. The demand for local products increases as tourists often buy souvenirs, which increases secondary employment.
The multiplier effect continues until the money eventually 'leaks' from the economy through imports - the purchase of goods from other countries. The leakage effect is a concept within the study of tourism. The term refers to the way in which revenue generated by tourism is lost to other countries' economies. Leakage may be so significant in some developing countries that it partially neutralizes the money generated by tourism.
The expectations and needs of visitors can often lead to the creation of new businesses and commercial activities. This builds a more diverse economic base and reduces reliance on one or two traditional industries, which is often the case in rural communities.
1.2.2 Employment
Tourism’s ability to generate employment in both formal and informal sectors has often been cited as one of the key economic gains of promotion of tourism. Tourism is a labour intensive industry and operates 24 hours a day, seven days a week. There are many opportunities for employment for young people and for people interested in part time or casual work. While some of the employment is skilled, there are also opportunities for people less skilled and who lack formal qualifications.
1.2.3 New business
The travel and tourism stimulates enormous investments in new infrastructure, most of which helps to improve living conditions of the local residents as well as tourists. Tourism development projects often include airports, roads, sewage systems, water treatment plants, restoration of cultural monuments, museums and nature interpretation centres. Further, the tourism industry also provides governments with hundreds of millions of dollars in tax revenues each year through accommodation and restaurant taxes, airport users’ fees, sales taxes, park entrance fees, employee income tax and many other fiscal measures.
A thriving tourism industry supports growth in other sectors, such as transport, construction, agriculture and retailing. As tourism increases, there are more opportunities for small business to develop.
1.2.4 Increased commercial and residential development
Tourism development often results in increased revenue to councils through rates and other charges. Tourism can act as a shop window for the lifestyle of the area. It is increasingly common for people who visit and are impressed with the area to return as residents, thereby increasing demand for housing and other services.
The marketing approaches for the two major divisions among tourists-recreational andbusiness travels-is somewhat different. The recreational travels respond to a greater degree tolower fares and other inducements in pricing and selecting the destination for their trips. In atechnical phrase, they make up a price elastic market. The business groups, on the other hand,make up a price inelastic market. Their trips are not scheduled according to lower fares, thedestination is determined in advance, and the expense is usually paid for by their employers.They are looking for dependable rather than inexpensive service. Business travellers alsomake more trios to large cities or industrial centres than to resort areas, although manyconventions are now held at resort hotels. It should be noted however, that some large cities,such as London, Paris, New York, Rome, and Tokyo, are themselves the most importanttourist destinations in the world. Because of this, it is difficult to separate pure recreationtravel from business travel.
2 BUSINESS ENVIRONMENT IN HUNGARY
2.1 Financial sector
Banking
The Hungarian two-tier banking system is made up of the National Bank of Hungary and the
commercial banks. National Bank of Hungary acts as bank and functions as an issuing bank. It is an independent financial institution responsible for the country’ monetary policy. Its primary target is achieving and maintaining price stability.
The most important requirements for banks are liquidity and solvency. They provide wide range of services for private individuals and corporate clients for which they charge a handling fee. Their major source of profit is the interest margin.
2.2 Taxation
Tax is a payment of money legally demanded by the government. Taxes are the most important revenue sources of the state. The main function of taxes is to cover the government’s expenditures.
Taxation on individuals or companies, which is made directly by them or through their employer is called direct taxation. Examples of direct taxes are: personal income tax, corporation tax, local business tax, capital gains tax. Indirect taxes are levied on turnover and consumption. Examples of indirect taxes are VAT, excise duty, customs duty.
2.3 Forms of companies
There are three main types of business ownership in the private sector of the economy:
- Sole proprietorship
This type of firm is run by the sole trader who is responsible for the total control and management of the business. The owner has unlimited liability for the debts.
- Partnership
- General partnership
This is a type of business entity in which partners share with each other the profit or losses of the business undertaking in which all have invested. At least one partner must accept unlimited liability.
- Limited partnership
In this type of business the internal member has unlimited liability. The external /silent partner doesn’t take part in the activity of the partnership. He/she has limited liability.
- Corporation
- Limited liability company – Private limited company (ltd)
The members have limited liability. The capital of the firm is divided into shares, but the shares are not sold on the stock exchange and they cannot be offered to the general public.
- Company limited by shares – Public limited company (plc)
This business has to be founded with a certain amount of issued capital. When an investor buys shares he/she becomes a part owner. Shareholders have limited liability to the extent of the face value of their shares.
Special forms of private business enterprises and relationships
- Franchise
This is a business selling named goods on the basis of a licence given by a company to use its established brand name and sell its goods.
3 MARKETING IN TOURISM
3.1 Services and their Characteristics
Tourism products are services rather than tangible goods. Services have several unique characteristics as follows;
Intangible nature of services. The essential difference between goods and services is that goods are produced but services are performed.
Inseparability. This means that the act of production and consumption is simultaneous and takes place in the same environment, not in the consumer’s home environment. It also means that most of the staff of the service companies have some consumer contact and are seen by the customer.
Perishability. Products can be stored for future sale; services cannot. The sale of an empty hotel room, airline seat is lost forever. Services, more importantly, the time available to experience them, cannot be stored. For example, there is only one chance to enjoy a summer vacation in 1990.
No possibility of creating and holding stocks. Linked with the inseparability and perishability that it is not possible for a service producer to create a stock of products to be used to satisfy daily fluctuations in demand.
Heterogeneity. This means that every service performance is unique to each customer.
Particular Characteristics of Travel and Tourism Services
Besides the basic characteristics common to all services, there are three further features that are particularly relevant to travel and tourism services. These are;
Seasonality and demand fluctuations. It is a characteristic of most leisure tourism markets that demand fluctuates greatly between seasons of the year. As a result, the occupancies in many tourism businesses increase to 90 to 100 per cent in the high season but drops to 30 per cent or less in the low season. In addition, seasonal closure of many leisure tourism businesses is common as well. These demand variations in tourism is more important because of perishability.
Interdependence of tourism products. The fortunes of tourism attractions in a destination are linked. Since a vacationer chooses attractions at a destination together with the products of accommodation, transport, catering etc., all organizations should function in coordination.
High fixed costs of service operations. In the travel and tourism industry, it is generally the case that the operations have high fixed costs and relatively low variable costs. This fact focuses all service operators’ attention on the need to generate extra demand. Since most large scale businesses are obliged to operate on a very narrow margin between total cost and total revenue because of intense competition, plus or minus one percentage point in average load factors makes the difference between profit or loss.
3.2 Marketing
Marketing is the process of researching, promoting, selling and distributing a product or service. Tourism marketing is the application of marketing concepts in the travel and tourism industry. Tourism marketing could be complex due to the product being an amalgam of many different industries such as accommodation and transportation. The markets also vary widely, and determining the consumers´ preferences could be difficult.
Tourism marketing involves several steps. Market research seeks to understand the consumer, while product development aims to meet his needs. Analysis and selection of target markets, also known as segmentation, means studying potential customer groups and selecting only certain groups whose needs and wants can be best met with a certain producer´s product. Marketing strategy seeks to reach the target markets using promotion, advertising, pricing and distribution.
Marketing communications occur in three ways: external, internal and word-of-mouth. External marketing uses formal communication channels to promote the tourism product to the traveller, boasting of its benefits and making promises. Internal marketing communication occurs when the tourism service provider makes contact with the tourist and delivers the promised benefits. Word-of-mouth communication occurs informally when visitors or employees discuss their experiences of the tourism product to others.
Marketing is the creation and promotion of an idea, service or product, which satisfies a customer's need, and is available at a reasonable price. Tourism is a service-based industry, offering intangible services such as history or beauty of a destination, rather than offering an intangible product such as an appliance. Follow the eight Ps in marketing tourism to create a successful tourism business.
Promotion is a fundamental part of any marketing strategy. Promote products and services to raise public awareness and allow customers the opportunity to purchase the products and services. Ideas for tourism products promotion are tourist information centres, airports, travel shows, town or city welcome centres and local tourism associations and offices.
People
Customer service is an essential part of tourism marketing. Customers are likely to share their travel experience with friends and family, whether the experience was good or bad. Word-of-mouth advertising is a large part of the tourism industry, and an unpleasant experience with a customer service employee can result in bad publicity.
Product
In the tourism business, the product is similar to a service as some aspects of the product offer experience, rather than tangible items. The success of a tourism business largely depends on the customer's satisfaction with services such as transportation, food, accommodations and cultural experiences.
Partnership
Partnering with companies which share similar business objectives, promotes cross selling of products and ultimately benefits both companies by allowing for shared marketing costs and meeting the overall needs of the customer. An example of partnering is a wedding-planning company collaborating with a travel company to promote destination weddings.
Planning
A marketing plan is essential for a tourism business. Developing a marketing plan allows a company to identify customer expectations and design a method of meeting the expectations. Marketing plans are working documents and must be maintained, revised and reviewed when necessary.
Place
Part of marketing a tourism product to a customer is ensuring that there is an easily accessible place for customers to purchase the product. Distribution of most tourism products occurs through travel agents, tour wholesalers and tour operators. As a marketing strategy, find new and beneficial places to sell the product.
Packaging
A tourism package consists of a variety of services, attractions and accommodations combined in one purchase for customer convenience. Aside from the destination location, the tourism package is what draws in the customers due to the services offered. Tourism package presentation is key, and must be flexible depending on the combination of services offered for a particular type of trip.
Price
Price is the amount a customer will pay for a service or product. Most customers of a tourism business are looking for a quality experience at a reasonable price
No matter how attractive a tourist destination is, people aren't going to go to it if they don't know about it. Therefore, promotion and marketing are critical to the success of any tourism venture. Almost by definition, tourists are from somewhere other than where the destination is, so marketing efforts need to be very broadly disseminated in order to reach the target market.
The Internet is custom-made for tourism promotion. The problem is, of course, that everyone knows this, so the competition for public attention on the Internet is fierce. Development of an easy-to-use and compelling website is essential for any tourism company, but don't expect it to bring you instant fame. Because of the competition, a website is a prerequisite, not a ticket to success. In addition to a website, exploit the possibilities of social networking sites such as Facebook and Twitter. By maintaining a consistently high profile in venues such as this, you can grow public awareness of your location and venture. It will take time for this to happen; a consistently high-profile online presence, as well as patience to help it grow, are essential.
Placing an ad in an airline magazine is a good way to reach your target demographic. People who read this magazine are by definition people who travel, so they are more likely to be interested in visiting your location than your average person. Like the Internet, airline magazines are a popular advertising medium, so go the extra mile to make your advertisement larger and more compelling than any other. Effective gimmicks could include offering discounts to readers of that magazine, two-for-one sales, or offers of special accommodation for people who book a visit within a certain time frame.
Many companies are experimenting with the possibilities of viral marketing, a nebulous field that is still developing. Essentially, viral marketing involves the presence of advertising where people aren't expecting it; for example, in casual conversation in a bar. People are hired by a company to engage socially with others and to promote a product. Other methods include written messages in unlikely places and the emulation of counter-cultural techniques, such as wheatpasted posters or graffiti. This methodology could be adapted for tourism promotion by appealing to people who are already in the target area as tourists and offering them various discounts or special deals if they return with their friends or family.
Vocabulary
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capital gains tax |
tőkenyereség adó |
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corporation tax |
társasági adó |
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customs duty |
vám |
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excise tax |
jövedéki adó |
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sole proprietorship |
egyéni vállalkozás |
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sole trader |
egyéni vállalkozó |
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partnership |
társulás |
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Limited liability company – Private limited company (ltd) |
zárt részvénytársaság |
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Company limited by shares – Public limited company (plc) |
nyílt részvénytársaság |
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issued capital |
kibocsátott tőke |
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face value |
névérték |
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two-tier |
kétszintű |
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interest margin |
kamatrés |
UNIT 10
Economic Environment
The service economy is driving growth in most countries. It represents a large part of economic activity and its importance continues to grow. Today, tourism is one of the largest and dynamically developing sectors of external economic activities. Tourism generates different types of income for a community: business income, wage earnings, share earnings, rates and levies. Direct spending by visitors has a positive impact on business profitability and employment growth. The money that is then circulated and re-spent in the economy is often referred to as indirect spending or the multiplier effect. The expectations and needs of visitors can often lead to the creation of new businesses and commercial activities. Tourism is a labour intensive industry and operates 24 hours a day, seven days a week.
There are many hidden costs to tourism, which can have unfavorable economic effects on the host community. The direct income for an area is the amount of tourist expenditure that remains locally after taxes, profits, and wages are paid outside the area and after imports are purchased; these subtracted amounts are called leakage.
Vocabulary Practice
1. Fill the gaps in the following text with suitable words in the box.
commodities consumption demand produce employment supply distribution application
There is a growing 1)......................for drinking water all over the world.
The chief export 2).........................of the country include cars and electronic equipment.
Their company is involved in the local 3)......................of food and household products .
It is important to ensure a steady 4) ............................of components for the factory.
We should reduce the 5)........................of energy in order to protect our environment.
By setting up a huge factory, they will provide 6).......................for a lot of people in the region.
2. What do the following abbreviations stand for?
GDP GNP VAT Ltd. PLC/Plc
3. Complete each sentence with the correct form of the word in capitals.
1. ECONOMY
..........................is the study of the natural laws governing production, distribution and
consumption of wealth.
2. LIABLE/ PAY
Taxpayers have to determine their tax ........................... and make advance tax
.................................
3. FOUND
The .......................of a company must be reported to the court of registration.
4. FRANCHISE
The company that sells the licence for operating a business to an individual is called a
.............................
5. TANGIBLE
The ........................................of the tourism product means that it cannot be seen or
touched by prospective tourists.
6. PERISH
The tourism product is ..............................because it cannot be stored for a later sale.
7. HETEROGENITY
The tourism product is .......................................because its quality tends to change.
8. SEPARATE
.....................................means that the production and the consumption of the tourism
product take place at the same time.
4. Match the following words on the left with their opposites on the right.
1. free, laissez-faire expenditure
2. privatisation permanent
3. deficit controlled
4. net loss
5. income inelastic
6. profit nationalisation
7. elastic gross
8. growth surplus
9. temporary decline
5. Match the following business terms in the box with their definitions.
balance of payments downsizing expenditure corporate
excise duty tax return labour-intensive leakage
1. a printed form of a taxpayer’s statement of his/her income for the past year
2. the difference between the amount of money a country gets from exported goods and services and the amount of money spent on imported goods and services
3. a tax levied on certain goods and services such as alcohol or tobacco.
4. a type of work that needs a lot of people to do it.
5. a) loss of liquid from a container
b) money going out of the economy for different reasons e.g. profits made in the tourism industry are taken out of the country by foreign investors
6. action of spending money, or an amount of money spent
7. relating to a company or group
8. to reduce the number of people who work for a company in order to save costs
6. Which is the odd one out in the following groups of words or phrases?
1. development progress investment
2. rapidly eventually fast
3. regulate provide give
4. found seek establish
5. reside live move
6. procedure regulation rule
7. Supply the missing prepositions in each sentence.
1. Market research is a systematic collection and analysis .........data about the target market.
2. Market segmentation is the process of dividing the market ..........smaller subgroups.
3. People in the same segment or group are similar ........each other in their attitudes.
4. A marketing plan outlines the actions that a company wants to carry ......... to make potential customers interested in their products or services.
5. The travel industry deals .........a reservations system.
6. In popular usage, the term ’marketing’ usually refers ...........promotion
7. There are several promotional techniques used ........tourism organisations.
Warm up
1. Work in groups of 3-4. A friend of yours would like to open a breakfast lounge somewhere in the Hungarian capital. Give him /her professional advice what preliminary steps he/she should take before applying for a bank loan. Also suggest in what order those steps should follow each other.
Step1
Step2
Step3
Step4
Step5
Language tips:
Making suggestions:
Formal: I propose that……., I would advise……..,If you follow my advice, you’ll……,
Informal: If I were in your shoes, I’d……It mightn’t be a bad idea…..Take my advice
and……,The way I see it, you should………
2. In the same group decide how that establishment would differ from cafés and fast food restaurants serving breakfast as well. Prepare the profile of the target market, put together a tentative menu, and outline the set of promotional measures that are indispensable to attract adequate attention.
3. List the advantages and disadvantages of promoting and taking bookings for a small B&B establishment by lake Balaton through the Internet.
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Good Points |
Bad Points |
Reading Comprehension
B&Bs move into the realm of the internet
Any room at the inn? Savvy B&Bs don't rely on leaflets in the tourist office to bring in business. Today, it's all about the internet. Mark Rowe reports
par 1 When Sarah Holland set up a bed and breakfast business in the Old Butcher's Shop in Orford, Suffolk, three years ago, her first call was not to the local tourist board but to her son, asking him to help set up a website. Mrs Holland, whose business is based in an area of eastern England that could be described as truly remote, calculated that the conventional approach to promoting a B&B – guidebooks and tourist centres – would not work. "You don't get anybody simply driving past the window, I'm not on the way to anywhere and Orford is a long way from anywhere," she said. "A woman who ran a B&B that I had stayed in a lot advised me not to waste money on too many guidebooks but look at using the internet. I don't see the point in printing leaflets, I just direct people to my website." A website presence has strengthened the business, she added. "I'm quite certain that without it the business would have been harder to establish. I get inquiries from people in the United States and in Australia. Once you have a website you can be found anywhere. In theory, someone in Brazil could book a room."
par 2 Sarah Holland is not alone. According to Visit Britain, around 80 per cent of England's 20,000 or so B&Bs now have a website or an online presence. It would appear to make sound business sense: in 2008, 77 per cent of travellers are predicted to conduct their travel planning online and 62 per cent of guests are predicted to book accommodation over the internet, according to this year's British Hotel Guest Survey. One of the main beneficiaries of this phenomenon is the small, out-of-the-way B&B that struggled by on repeat visits, word-of-mouth or a listing in a guidebook. "The internet has made a vast difference to B&Bs and really allowed them to punch above their weight," said Pam Foden, quality manager for Visit Britain. "Traditionally, it was enough to work with the local tourist centre, but websites can drive phenomenal traffic. There's a new generation of B&B owners who are arguably smarter than traditional set-ups. They've worked in other businesses. There used to be an attitude that B&Bs would not pay a commission to fill their rooms, but that's changing. Operating your B&B from the web takes a lot of managing. It's no good for the dippy operators who've done things one way all their lives."
par 3 One sure sign that B&Bs are seen as a market enjoying an internet-inspired renaissance is that larger operators are scrambling to sign them up to web portals. Nigel David, a former senior director of TUI and Thomas Cook, is now chief executive of Eviivo, one of the newest companies offering online bookings. In Eviivo's case, a software package called frontdesk offers customers bookings direct from the websites of B&Bs and guesthouses, as well as linking the properties to more than 40 travel and leisure websites, including lastminute.com; hotels.com; Co-op Travel; expedia.co.uk; bedandbreakfasts.co.uk; and theAA.com. In return, Eviivo takes a 6 per cent cut of any sale. It may seem curious that someone familiar with dealing with the high turnovers of major travel companies would be interested in the returns from a 6 per cent cut of a £40 room, but Mr David is convinced the internet has transformed the fortunes of the B&B. "Rural properties are the ones that are really benefiting," he said. "They've had to rely on local traffic and guidebooks in the past but I think the world is moving beyond the guide book. This is allowing small B&Bs and guesthouses to compete with the Travelodges of this world." Mr David feels that services such as frontdesk, which allow for "real-time" bookings, overcome the traditional problem for small accommodation owners who take internet bookings.
par 4 For the most part, the drawback for small operators has been the historical requirement to allocate rooms to third-party distribution channels, meaning they risked not being filled, even if the B&B got a direct call from someone looking for a room – something of limited appeal to a B&B with, say, just four rooms. After 23 years running Danehurst House, a five-room B&B outside Tunbridge Wells in Kent, Angela Godbold decided to sign up to frontdesk two years ago. "The amount of money we were spending on advertising was extortionate," she said. "I was aware that my children were doing all their bookings online, so I decided to stop being an old fuddy-duddy and sign up. It was nerve-racking to start with because we like to talk to our guests in advance, and you wondered who would turn up." The benefits of using such systems are clear, according to Mrs Godbold, who estimates up to 70 per cent of her business comes from the internet. "It has helped our business a great deal – especially during off-peak times. We are in a village, and unless you knew where we were it was difficult to get any passing trade. The way people book has changed completely. We used to get people calling on the off-chance after they had picked up a leaflet from the tourist office. But now people like to book in advance."
http://www.independent.co.uk/travel/news-and-advice/bbs-move-into-the-realm-of-the-internet-851855.html Sunday, 22 June 2008
1. Why did Mrs Holland decide to set up a website for her B&B? Choose the correct answers.
- help consumers compare facilities
- attract more guests
- better promotional way
- increase regional sales
- so as not to waste money
- so that people won’t drive past
2. What do these figures stand for?
2. 62% (par.2)....................
3. 77% (par.2)……………
4. 80% (par. 2)…………...
5. 6% (par.3)……………..
6. 70% (par.4)……………
3. What does the software package frontdesk offer to customers?
7-8. ……………………
4. What forms of advertising are mentioned for traditional B&Bs in the article?
- 9. ………………………
5. Find synonyms in the text for the following meanings.
10-11. far away from other communities, houses etc., isolated (par.1) (par.2)
12. persons or groups who receive advantages, money, etc. as a result of sg else (par.2)
13. payment to somebody for selling goods (par.2)
14. amount of business done by a company (par.3)
15. a time that is less popular or less busy (par. 4)
Monologue Questions
Sample question with suggested answer
How and where would you promote ECC Pécs (European Capital of Culture in 2010) to attract EU tourists?
Target market:
European tourists interested in cultural offers, sightseeing – NEED TO REACH THEM
Present awareness of Hungary: capital city, Balaton, wellness hotels, spas, etc NOT PÉCS
Need to raise awareness
Features to promote about Pécs:
- a World Heritage Site (old Christian cemetry)
- ECC project: rehabilitation of Zsolnay Factory into Cultural Centre
- nearby attractions: wine region, Villány, spa, Harkány
- accessibility: new M6, (new bridge at Dunaújváros), possibility of air connection
Reach target group
- in other capitals of culture (Nagyszeben, Luxembourg etc) with billboards, promotional CDs, DVDs (endorsement by sports person from Pécs?) presentations
- on the internet: website for event with links from other websites
- in their home countries with POS advertising in travel agencies
- in Hungary: promotional material, leaflets etc in tourism, accommodation facilities
- advertisements in well selected magazines read by target group (airline magazines)
- commercials in travel/cultural programmes watched by target group
- trade fairs, exhibitions
Use the notes to give a 2-3 minute talk.
Economy, marketing
1 Introduce the role that the tourism and hospitality industry plays in a country’s economy (and the ways it contributes to the GDP of a country).
2 Introduce the characteristics of the tourism product and explain how it differs from other products.
3 Explain the 8Ps of the tourism marketing mix.
4 Justify the need for conducting market research and introduce some of its tools and means.
Role Play
Market Research
Student A:
You work for a market research organisation. You want to find out more information about how people spend their holidays. You are out on the street conducting interviews using the following questionnaire. Student B is a passer-by.
Before starting the role-play study the sheet and formulate the questions you are going to ask. You can start the role-play like this:
„Excuse me, can you spare a few minutes of your time to answer some questions on holiday habits?” OR
„Excuse me, sir/madam. I’m doing a survey on how people spend their holidays. Would you mind if I asked you a few questions?”
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HOLIDAY SURVEY SHEET 1 Country: ......................... 6 Accommodation: ........................ 2 Date of holiday: ......................... 7 Purpose of visit: ........................ 3 Length of stay: ......................... 8 Cost of holiday: .......... per person 4 Organised: YES / NO 9 Reasons for choosing this place: ............. 5 Travel arrangements: by air by car 10 Any complaints? .......................... by train any other:........... |
Finally, ask for the respondent’s name and address. His/her name will be placed in a prize draw. The first prize is a week-holiday in a wellness hotel in Hungary.
YOU START.
Student B:
You are walking in the street when someone comes up to you and asks you to answer some questions about your holiday habits. Agree to answer the questions. Choose a holiday you have been on OR the holiday you’re planning to do.
Writing Task
As the research assistant of the Hungarian tour operating company. Express you have been asked to carry out a survey on the holiday habits of young people in the capital and to make recommendations for future development.
Write a formal report of about 120-150 words analysing the results of the survey.
Your writing should be clear and logical including the following headings:
- EXECUTIVE SUMMARY/ TERMS OF REFERENCE/OBJECTIVE: state why you are writing the report
- PROCEDURE: describe the method used to collect information
- FINDINGS: what you discovered (the information may be summarised under different subheadings)
- CONCLUSIONS: sum up the findings
- RECOMMENDATIONS: suggestion for the future
Useful language
To introduce: The purpose/aim of this report is…This survey was carried out at the request of…
To describe procedure: The data……..was gathered/obtained by means of……
To present facts: in percentages: ten per cent, three out of ten, or proportions: the majority, a significant number, a large proportion
To make generalizations: In general…. On the whole…. This shows /indicates /illustrates /implies…..
To conclude: In conclusion, All things considered, To sum up…
To put forward a suggestion: Our recommendation is. The results of this survey suggest/indicate…
On the basis of these findings, it would seem that..
Report writing style: helpful tips
- To convey a neutral and impersonal style, the use of the passive voice of the verb is particularly helpful:
Active : I examined company sales statistics…
Passive : Company sales statistics were examined carefully…
- The use of third person “it” constructions is also helpful :
It became evident…. It would be necessary to…. It is suggested that…..
- Choose formal professional language:
analysed …. rather than “looked into”
inspected ….. rather than “looked over”
alternative solution …. rather than “another way of solving the problem”
surveyed customers’ views …. rather than “customers’ views were checked out”
- Whenever possible let facts and figures speak for themselves
Sales turnover last month was………, an increase of … on July’s figure.
Grammar Test 10
I. Finish each of the following sentences in such a way that it means exactly the same as the sentence printed before it.
1 The last time I went on a holiday was about a year ago.
I haven’t …………………………………………………………… .
2 Let’s have lunch in a fast food restaurant today,’ Mary said.
Mary suggested ……………………………………………………. .
3 It took us ages to finalize the contract.
We spent …………………………………………………………… .
4 They are building a new hotel in the city centre.
A new hotel …………………………………………………………. .
5 I advise you to take the later train.
If I ………………………………………………………………….. .
6 ‘Was it difficult to find our office?’ I asked the job applicant.
I asked the job applicant …………………………………………… .
7 Venice is more picturesque than Rome.
Rome isn’t ………………………………………………………….. .
8 I enjoyed the trip to South America but I wouldn’t do it again.
Although ……………………………………………………………. .
II. Choose A, B, C or D to complete the sentences.
9 Can you tell me ……………………………………. ?
- A) when does the meeting start B) when the meeting starts
- C) whether the meeting start D) if the meeting does start
10 This is the colleague ……………. laptop has been stolen.
- A) that B) who C) whom D) whose
11 Our business partner would have renewed the contract if our offer …………………..
- A) had still been competitive B) was still competitive
- C) would still have been competitive D) were still competitive
12 ………. travelling broadens ……… mind.
- A) ----, the B) ----, ---- C) the, the D) the, ----
13 I ………… for about an hour now, but there is still no sign of the train.
- A) am waiting B) have been waiting C) waiting D) was waiting
14 The tour guide said she ………………….. such difficult tourists before.
- A) has never met B) would never meet C) had never met D) never met
15 During a long-haul flight you can spend your time ……………….. on business
class.
- A) as comfortable B) as comfortably C) more comfortable
- D) more comfortably
16 All the advice he gave ………….. to be useful.
- A) have proved B) has proved C) have been proved D) has been proved
III. Supply the correct preposition.
17 Many thousands have benefited ……….. the new economic policy.
18 They replaced the permanent staff ………. part-timers.
19 Farmers have appealed ………. the government for help.
20 The head office is closer ……. the city centre than the warehouse.