BTEC National Diploma in Travel and Tourism
Unit Two
The Business of Travel and Tourism
Your Name
,Your Name
BTEC National Diploma in Travel and Tourism Level 3
Contents
Page 2-3 P1- Describe the travel and tourism business environment, proving
examples of organisations
Page 4 Bibliography
Page 5-8 P2- Describe the organisational and financial characteristics of
different types of travel and tourism organisations.
Page 9-14 P3- Review the methods and opportunities used by travel and
tourism organisations to gain competitive advantage and achieve
business sims, providing examples.
M1- Compare the organisational and financial characteristics of two
organisations with different business structures, and the methods
and opportunities they have used to gain competitive advantage.
Page 15 Bibliography
Page 16 D1- Evaluate the links between an organisations characteristics and
its success in gaining competitive advantage and achieving its
aims.
Page 17-25 P4- Produce a business case for a travel and tourism enterprise
within financial constraints.
M2- Present a business case, explaining its feasibility in order to
meet objectives.
D2- Present a professional business case, responding confidently to
questions and justifying its feasibility.
1
, Your Name
BTEC National Diploma in Travel and Tourism Level 3
P1- Describe the travel and tourism business environment, proving examples of
organisations.
It is important that organisations within the travel and tourism sector know where their
organisations fit in within the travel and tourism business environment. Organisations
must understand their key characteristics and how they have a competitive advantage
over others.
Public and Private Sector
A public sector organisation is owned by the government and general public. They do not
make a profit. VisitBritain is a domestic public sector organisation. All tourist boards are
public as they do not sell a product, they only provide information. They must increase
GDP by promoting and advertising. Public sector organisations within travel and tourism
exist at different levels:
- National- work provided by the government, national tourist boards and
government-based agencies.
- Regional- undertaken by regional department agencies and regional tourist
boards. For example, Visit Kent tourist board.
- Local- through local authorities and individuals (e.g. local councils). For instance,
Medway tourist board.
Within a partnership two/more people share the threats, costs and responsibilities of the
organisation. Every partner will be freelance and will take a share of the profits that are
made. Partners share in decision making to ensure that all ideas are considered. Partners
are both personally responsible for debts made by the business. Therefore, both partners
would be fully liable. Partnerships are common among the hospitality sector. They have
partnerships within pubs, restaurants, cafes, guest houses. Business are easier to start
up as there are funds from more than one individual. For example, The Old Police
Guesthouse.
Limited Liability Partnership is similar to an ordinary partnership; however, they offer a
reduced personal responsibility for a business’ debts. Partners are not primarily
responsible for any debts that are made by the business. However, they are responsible
for personal granted loans. They are not very common in the travel and tourism industry
as they are complicated to set up/operate. However, First Choice, a tour operator, is an
example of a limited liability partnership.
Sole Proprietor is a business that is run by a sole trader. It is maintained and controlled
by a few individuals. It is simple and doesn’t involve any registration fees. However,
records and accounts need to be logged to ensure that owners can keep their profits.
There are many benefits businesses run by a sole trader, such as:
- The sole trader has full control over the business,
- The sole trader can make all decisions,
- The sole trader takes all the profit.
However, there are also disadvantage such as there is no limited liability/support from
other businesses, so the sole trader is liable for all debts. There are many sole traders
within travel and tourism such as tour guides, caterers, taxi drivers, etc. Moreover,
Baldwin’s Travel is a small family run independent travel agency. Business consultants
tend to be sole traders as they are independent and work for themselves.
A franchise in its simplest definition is a business opportunity that allows the franchisee
to start a business. Franchises need to purchase a license from the franchisor which
2
Unit Two
The Business of Travel and Tourism
Your Name
,Your Name
BTEC National Diploma in Travel and Tourism Level 3
Contents
Page 2-3 P1- Describe the travel and tourism business environment, proving
examples of organisations
Page 4 Bibliography
Page 5-8 P2- Describe the organisational and financial characteristics of
different types of travel and tourism organisations.
Page 9-14 P3- Review the methods and opportunities used by travel and
tourism organisations to gain competitive advantage and achieve
business sims, providing examples.
M1- Compare the organisational and financial characteristics of two
organisations with different business structures, and the methods
and opportunities they have used to gain competitive advantage.
Page 15 Bibliography
Page 16 D1- Evaluate the links between an organisations characteristics and
its success in gaining competitive advantage and achieving its
aims.
Page 17-25 P4- Produce a business case for a travel and tourism enterprise
within financial constraints.
M2- Present a business case, explaining its feasibility in order to
meet objectives.
D2- Present a professional business case, responding confidently to
questions and justifying its feasibility.
1
, Your Name
BTEC National Diploma in Travel and Tourism Level 3
P1- Describe the travel and tourism business environment, proving examples of
organisations.
It is important that organisations within the travel and tourism sector know where their
organisations fit in within the travel and tourism business environment. Organisations
must understand their key characteristics and how they have a competitive advantage
over others.
Public and Private Sector
A public sector organisation is owned by the government and general public. They do not
make a profit. VisitBritain is a domestic public sector organisation. All tourist boards are
public as they do not sell a product, they only provide information. They must increase
GDP by promoting and advertising. Public sector organisations within travel and tourism
exist at different levels:
- National- work provided by the government, national tourist boards and
government-based agencies.
- Regional- undertaken by regional department agencies and regional tourist
boards. For example, Visit Kent tourist board.
- Local- through local authorities and individuals (e.g. local councils). For instance,
Medway tourist board.
Within a partnership two/more people share the threats, costs and responsibilities of the
organisation. Every partner will be freelance and will take a share of the profits that are
made. Partners share in decision making to ensure that all ideas are considered. Partners
are both personally responsible for debts made by the business. Therefore, both partners
would be fully liable. Partnerships are common among the hospitality sector. They have
partnerships within pubs, restaurants, cafes, guest houses. Business are easier to start
up as there are funds from more than one individual. For example, The Old Police
Guesthouse.
Limited Liability Partnership is similar to an ordinary partnership; however, they offer a
reduced personal responsibility for a business’ debts. Partners are not primarily
responsible for any debts that are made by the business. However, they are responsible
for personal granted loans. They are not very common in the travel and tourism industry
as they are complicated to set up/operate. However, First Choice, a tour operator, is an
example of a limited liability partnership.
Sole Proprietor is a business that is run by a sole trader. It is maintained and controlled
by a few individuals. It is simple and doesn’t involve any registration fees. However,
records and accounts need to be logged to ensure that owners can keep their profits.
There are many benefits businesses run by a sole trader, such as:
- The sole trader has full control over the business,
- The sole trader can make all decisions,
- The sole trader takes all the profit.
However, there are also disadvantage such as there is no limited liability/support from
other businesses, so the sole trader is liable for all debts. There are many sole traders
within travel and tourism such as tour guides, caterers, taxi drivers, etc. Moreover,
Baldwin’s Travel is a small family run independent travel agency. Business consultants
tend to be sole traders as they are independent and work for themselves.
A franchise in its simplest definition is a business opportunity that allows the franchisee
to start a business. Franchises need to purchase a license from the franchisor which
2
