Components of tourism: Structure of the tourism industry

Travel and tourism is one of the largest economic sectors in the world, contributing a record US$11.6 trillion to the global economy in 2025 (almost 10% of global GDP), according to the World Travel and Tourism Council. It is therefore no surprise that the structure of the tourism industry is complex, involving many components of tourism.

With many different types of tourism and types of businesses operating within the tourism industry, from private companies to charities and NGOs, the structure of the tourism industry is made up of many different segments and components.

This article provides an overview of the structure of the tourism industry, outlining the main components of tourism and the types of organisations and stakeholders in tourism that are involved.

Structure of the tourism industry

The importance of tourism becomes clear when you see how big and varied the industry is.

Diagram of the components of the tourism industry

The structure of the industry is made up of several components of tourism and involves many different stakeholders. These components are all interrelated in one way or another. The components of tourism make up the entire tourism system.

Components of tourism
Travel and tourism is one of the largest economic sectors in the world.

Components of tourism

There are several integral components of tourism. Without these components, the tourism industry would struggle to function.

This was demonstrated during the COVID-19 pandemic, which halted air travel around the world. Without transport services operating, the rest of the tourism industry struggled to survive.

There are six major components of tourism, each with their own sub-components. These are: tourist boards, transport services, accommodation services, conferences and events, attractions and tourism services.

Components of tourism
There are many components of tourism that make up the industry.

Each of these components is explained below, with examples.

Video: Components of tourism explained

Components Of Tourism | Learn More About The Structure of the Travel and Tourism Industry

Components of tourism: Tourist boards

A tourist board is an essential component of tourism and an integral part of the structure of the tourism industry.

A tourist board is responsible for the promotion of tourism in a particular area. This could be a city, a region, a country or a group of countries.

A tourist board is usually government funded and is usually a public travel and tourism organisation (although this is not always the case).

Tourist boards are often referred to as destination marketing organisations or destination management organisations (DMOs).

International organisations

Most tourist boards focus on promoting tourism in a particular area, city or country. There are, however, some organisations which aim to promote tourism across more than one country.

While these organisations often have many functions other than tourism, they play an important role in tourism in particular parts of the world. Examples include the European Travel Commission, the ASEAN tourism network and the World Tourism Organization (UN Tourism), the United Nations agency responsible for tourism.

National tourist boards

A national tourist board is a national organisation whose aim is to promote tourism across the country.

National tourist boards work closely with government departments, which determine many aspects of tourism in the country, such as budgets, taxation and regulations.

National tourist boards are funded by government, and sometimes also through tourist taxes, membership fees and commercial partnerships.

Examples of national tourist boards (often best known by their campaign name rather than their official title) include VisitBritain, Incredible India and Amazing Thailand.

Regional tourist boards

A regional tourist board is a tourist board that focusses on a particular region of a country. They are often a sub-division of a country’s national tourist board.

Regional tourism boards are often funded and operated in the same way as national tourist boards.

Examples of successful regional tourism boards include: Visit Cornwall in the UK, Kerala Tourism in India, Tourisme Montréal in Canada and Cape Town Tourism in South Africa.

Tourist information centres

A tourist information centre is the place where tourists can go for advice and help with regards to all matters related to tourism in the area.

In the tourist information centre (TIC) you will find staff who are knowledgeable about the local area. There is often a range of printed and digital information available, including leaflets, maps, coupons and guidebooks. Sometimes there will be virtual tourism facilities.

Tourist information centres have been an important component of tourism throughout the history of travel and tourism, however, they are coming under increasing pressure as a result of information that is available online. This has resulted in fewer people visiting TICs in person.

Many major tourist areas have a tourist information centre, usually in a central location, although many smaller centres have closed or moved online.

Tourist information centres are usually funded by local authorities, sometimes in partnership with local businesses.

Components of tourism:Transport services

The relationship between transport and tourism is strong.

According to the most commonly accepted definitions, a tourist must travel away from their usual environment and stay for at least one night (visitors who do not stay overnight are known as same-day visitors or excursionists). Some argue that this definition does not fully reflect newer forms of tourism, such as the staycation or virtual tourism.

Transport is therefore an integral component of tourism: without transport, people cannot reach their intended destination.

There are a range of different transport types. The most common methods of transport that make up the structure of the tourism industry are air, road, rail and water.

Components of tourism:

Travel by air

Travel by air has grown rapidly over the past few decades. The introduction of low-cost airlines and the deregulation of air travel have increased competition and lowered fares.

New routes have opened up destinations that tourists may never have been able to reach before, and low prices have resulted in more people taking more trips abroad by air.

The importance of air travel was demonstrated during the COVID-19 pandemic, when most air traffic was halted, which had a devastating impact on the tourism industry worldwide. Air travel has since recovered strongly, with global passenger numbers returning to record levels.

Travel by road

Travel by road is also a core component of tourism, particularly for domestic tourism.

Travel by road is more popular in some countries than others. This largely depends on accessibility options (i.e. what is accessible by road), distances required and road conditions.

In destinations where travel by road is popular, there are often many car hire or rental companies.

Travel by train

Travel by train is very popular in destinations with good rail networks and infrastructure.

In some parts of the world, such as China and Japan, there are world-class high-speed railways that can be quicker and more efficient than flying. China has the largest high-speed rail network in the world, with more than 45,000 kilometres of track.

In other parts of the world, the rail journey is part of the tourism experience. Good examples include the Trans-Siberian Railway and luxury trains such as the Venice Simplon-Orient-Express.

In Europe, travellers can buy an interrail pass, which allows them to travel across much of Europe by train.

Components of tourism: high-speed rail in China
China has the largest high-speed rail network in the world.

Travel by water

Travel by water is also an important component of tourism.

The structure of the tourism industry includes cruises, ferries and leisure boats, among other types of travel by water.

Travel by water can vary considerably in price and can include anything from a round the world cruise to a short long-tail boat ride in Thailand.

Components of tourism: Accommodation services

Accommodation services make up an important part of the structure of the tourism industry.

Whilst accommodation services were traditionally focussed mainly around the hotel industry, nowadays accommodation options for tourists are much more varied. This adds an additional layer of complexity to the structure of the tourism industry.

Hotels chains

There are many hotel chains that operate throughout the tourism industry and that are a key component of tourism.

Multinational corporations have expanded throughout the tourism industry, with key players including hotel groups such as Marriott, Hilton, IHG (which owns Holiday Inn), Accor and Radisson, as well as budget brands such as Premier Inn and Travelodge.

However, hotel chains such as these have come under increased scrutiny as a result of the economic leakage in tourism that they cause.

Hostels and budget accommodation

Hostels and budget accommodation options are popular with budget travellers and backpackers.

There are a range of hostels found throughout the world. These are particularly popular in destinations where accommodation is expensive, such as London, New York and Singapore.

The Youth Hostel Association (YHA) and Hostelling International are popular hostel providers that are found across the UK and overseas.

Holiday parks and campsites

Billy Butlin changed the face of the British holiday market when he opened his first holiday camp in Skegness in 1936.

Since then, other holiday park chains, such as Haven, Parkdean Resorts and Center Parcs, have expanded throughout the UK and the rest of the world.

Camping is also an important component of tourism. There are camp sites situated throughout the world ranging from basic campsites to safari camps and glamping (glamorous camping).

Homestays

Homestays have become an increasingly prominent component of tourism.

Whilst bed and breakfast accommodation has been around for a very long time, nowadays there are many more options that are grounded on the concept of a homestay.

The sharing economy has seen the growth and introduction of many types of accommodations into the travel and tourism sector that did not exist before.

The best known of these is Airbnb, where people rent out a room or an entire property to tourists. It now has more than 8 million active listings worldwide. You can read more about how Airbnb works here.

Accommodation innovations

In recent years, consumers have been looking for new and unusual experiences more than ever, and many accommodation innovations have emerged around the world in response.

From ice hotels in Sweden and Finland to treehouses, converted aircraft and castles, there are many unusual types of accommodation that can make a holiday more memorable. Read more about the different types of accommodation.

Components of tourism: Conferences and events

Conferences and events make up a significant part of the structure of the tourism industry.

Conferences, which form part of MICE tourism and business tourism, come in all shapes and sizes around the world.

From a small academic gathering to a large-scale summit involving national leaders from around the world, conferences are an important component of tourism.

Likewise, the event sector is also a significant part of the tourism industry.

There are millions of events that take place around the world each year that vary in size and function, and many of these form an integral part of the tourism industry. Read more about the major types of events.

Examples of major conferences and events around the world

There are many major conferences and events that take place around the world every year. Here are some examples:

World Travel Market

The World Travel Market (WTM) is held at ExCeL London each November. It is one of the travel industry’s biggest trade events.

WTM provides travel industry experts with the opportunity to showcase their work, learn more about the industry and to network.

ITB

ITB is the world’s leading international travel trade show. It is held in Berlin each year.

Similar to the WTM, this large-scale event enables industry professionals to network and undertake continuous professional development.

Football World Cup

The FIFA World Cup is the world’s most widely watched sporting event.

The men’s World Cup is held every four years in a different host country. The 2026 tournament, co-hosted by the USA, Canada and Mexico, was the first with 48 teams, and the 2030 tournament will be hosted by Spain, Portugal and Morocco.

The Football World Cup attracts millions of tourists from all over the world. Host nations often use the event as an opportunity to market themselves as tourist destinations to the billions of people watching around the world.

Sports tourism, which includes events such as the Football World Cup, contributes significantly to the overall tourism industry.

Glastonbury

Glastonbury is a popular British music festival. It takes place each summer in Somerset.

Glastonbury is a five-day festival of contemporary performing arts, attended by more than 200,000 people. It usually takes a ‘fallow year’ roughly every five years to give the land a rest, most recently in 2026. In addition to music, the festival hosts dance, comedy, theatre, circus, cabaret, and other arts to entertain visitors.

Glastonbury attracts many domestic tourists as well as international tourists.

San Fermin

San Fermin is a festival that is held in Pamplona, Spain each July.

San Fermin, famous for the ‘Running of the Bulls’, is a historic festival that runs for nine days, from 6 to 14 July. It involves music, dancing, eating and drinking, and the famous early-morning bull runs (encierros) through the streets of the old town, followed by bullfights.

San Fermin has been subject to a lot of controversy in recent years, with many people protesting that it is a cruel form of animal tourism.

San Fermin
The Running of the Bulls festival in Pamplona attracts visitors from all over the world.

Holi Festival

Holi Festival is known as the ‘festival of spring’, the ‘festival of colours’ or the ‘festival of love’.

Holi is celebrated across India and Nepal, and by Hindu communities around the world, usually in March (the date varies each year according to the Hindu calendar).

Holi Festival is famous for the way in which coloured paints are used and often thrown onto people’s faces and clothes.

This is a Hindu festival that signifies the victory of good over evil.

Day of the Dead

The Day of the Dead, known locally as ‘Día de los Muertos’, is celebrated in Mexico on 1 and 2 November each year.

This day is a celebration of the deceased, whereby it is believed that the alive and the dead are reunited. On this day many people will create offerings for the deceased.

Many people paint their faces as skulls or dress as La Catrina, an elegant skeleton figure, and celebrate with food, drink, music and parades. The festival is recognised by UNESCO as part of the world’s Intangible Cultural Heritage.

Components of tourism: Attractions

Tourist attractions are an essential component of the tourism industry.

There are a multitude of different tourist attractions around the world.

Some are built, some are natural. Some are paid, some are free. Some are famous, others are not. Some are large and some are small.

Natural attractions

Natural attractions are exactly what the name suggests: attractions that have not been made by people.

Natural attractions are found all over the world and vary in size and scope. There is even a definitive list of the seven natural wonders of the world.

Examples of popular natural attractions around the world include:

  • Drakensberg Mountains, South Africa
  • Mount Kilimanjaro, Tanzania
  • Mount Toubkal, Morocco
  • Sahara Desert, Morocco
  • The Red Sea and Blue Hole, Dahab, Egypt
  • The Dead Sea, Jordan and Israel
  • Sierra Nevada, Spain
  • Chicken Island, Thailand
  • Niagara Falls, Canada and the USA
  • The Rocky Mountains, Canada and the USA
  • Pamukkale thermal pools, Türkiye
  • Iceland (the island is filled with wonderful natural attractions!)
  • The Amazon Rainforest, South America
  • Cenotes, Mexico
  • Iguazu Falls, Argentina and Brazil
  • The Great Barrier Reef, Australia
  • Ha Long Bay, Vietnam
  • The backwaters of Kerala, India
  • Mount Hallasan, South Korea

Built attractions

Built attractions also make up an important part of the structure of the tourism industry.

There are many built attractions throughout the world. Some attractions are built for the purpose of tourism, such as theme parks or museums. Other attractions are built for other purposes but then become tourist attractions, such as the Empire State Building or the Sydney Opera House.

Examples of popular built attractions around the world include:

  • Robben Island, South Africa
  • The Pyramids of Giza, Egypt
  • La Sagrada Familia, Spain
  • The Eiffel Tower, France
  • The United States Capitol Building, USA
  • Statue of Liberty, New York
  • Petronas Towers, Malaysia
  • Marina Bay Sands, Singapore
  • Angkor Wat, Cambodia
  • Taj Mahal, India
  • Sydney Harbour Bridge, Australia
  • Houses of Parliament, UK
  • Sheikh Zayed Mosque, UAE

Components of tourism: Tourism services

Tourism services are an essential component of tourism. Without many tourism services, the tourism industry would fail to adequately function.

The three major tourism services that make up the structure of the tourism industry are explained below.

Tour operators

A tour operator is an organisation that puts together a trip or holiday.

Typically, a tour operator packages together the essential elements of a holiday, such as accommodation, transport and transfers, and sells the package to tourists, either directly or through travel agents.

The internet has changed the role of tour operators, as many consumers now research and book the individual elements of their holiday themselves, known as dynamic packaging. However, package holidays remain very popular, partly because of the financial protection that they offer, such as ATOL protection in the UK.

Travel agents

Traditionally, a travel agent sells the products that tour operators have produced, such as package holidays, as well as individual travel products such as flights, accommodation and insurance.

While travel agents have and continue to sell individual holiday components, they have historically been most commonly used by tourists who wish to book a package holiday.

The role of the travel agent has changed significantly. Many high street travel agencies have closed as more people book online, but there has been strong growth in online travel agents and in independent, home-based travel agents, who work for themselves, often with the support of a host agency. Read more about the different types of travel agents.

Many travellers still value the expert advice, personal service and financial protection that a travel agent can provide, particularly for complex trips such as cruises, tailor-made holidays and multi-centre itineraries.

The travel agent does still exist, but the way that travel agents work has changed. Find out more about the reasons to become an independent travel agent.

Ancillary services

Ancillary services are another core component of tourism.

Ancillary basically means ‘extra’ or ‘additional’. An ancillary service in tourism, therefore, is any product or service that is additional to the core elements of accommodation, transport and transfer.

Here are some examples of ancillary products:

  • Attraction tickets
  • Meal tickets
  • Insurance
  • Extra luggage
  • Car hire
  • Currency exchange
  • Airport parking
  • Tour guide
  • Sim cards

Components of tourism | Structure of the tourism industry

The tourism industry is large and complex, but the different components of tourism are relatively easy to understand.

All of the components of tourism are interconnected in one way or another and many rely on one another to be successful.

The articles on stakeholders in tourism, Leiper’s tourism system and the chain of distribution are useful next steps, and the texts listed below provide further reading.

Components of tourism: FAQs

Below are answers to some of the most common questions about components of tourism.

What are the main components of tourism?

The six main components of tourism are tourist boards, transport services, accommodation services, conferences and events, attractions and tourism services such as tour operators, travel agents and ancillary services.

Why is transport an important component of tourism?

Transport is essential because tourists need to travel away from their usual environment to reach their destination. Without air, road, rail and water transport, tourism could not take place.

What is the structure of the tourism industry?

The structure of the tourism industry is made up of many interconnected sectors and organisations, from public tourist boards and private hotel chains to transport providers, attractions, tour operators and travel agents.

What is the difference between a tour operator and a travel agent?

A tour operator puts together the different elements of a holiday into a package, while a travel agent sells holidays and other travel products to customers on behalf of tour operators and suppliers.

What are ancillary services in tourism?

Ancillary services are extra products and services that are added to the core elements of a holiday, such as travel insurance, car hire, airport parking, excursions and currency exchange.

Structure of the tourism industry | Components of tourism: Further reading

  • An Introduction to Tourism: a comprehensive and authoritative introduction to all facets of tourism including: the history of tourism; factors influencing the tourism industry; tourism in developing countries; sustainable tourism; forecasting future trends.
  • The Business of Tourism Management: an introduction to key aspects of tourism, and to the practice of managing a tourism business.
  • Tourism Management: An Introduction: gives its reader a strong understanding of the dimensions of tourism, the industries of which it is comprised, the issues that affect its success, and the management of its impact on destination economies, environments and communities.
Dr Hayley Stainton

About the author

Dr Hayley Stainton is a tourism academic, examiner and the founder of Tourism Teacher. She has a PhD in tourism and more than 20 years’ experience teaching travel and tourism at school and university level. Read more about Hayley