Who owns and runs leisure, travel and tourism organisations, and what are their aims?
Leisure, travel and tourism organisations: the private, public and voluntary sectors, who owns and funds each, their main aims, and examples of organisations in each sector.
A CCEA GCSE Leisure, Travel and Tourism guide to the organisations in the industry. Covers the private, public and voluntary sectors, who owns and funds each, their main aims (profit, service or a cause), and examples such as private hotels and tour operators, council leisure centres, and charities and trusts.
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What this dot point is asking
You need to know that leisure, travel and tourism organisations belong to one of three sectors, the private, public and voluntary sectors, and to describe who owns and funds each, their main aims, and examples of organisations in each. CCEA examiners reward correct aims (profit, service or a cause), accurate examples, and the ability to explain how an organisation's sector shapes the way it is run.
The three sectors
Every organisation in the industry is owned and run by one of three sectors.
Who funds each sector
The way an organisation is funded follows from its sector:
- Private sector - funded by the money customers pay, plus owners' investment and loans. Any surplus is profit for the owners.
- Public sector - funded mainly by taxes and government or council budgets, so prices can be kept low and some activities can run at a loss for the public good.
- Voluntary sector - funded by donations, membership fees, fundraising and grants, with any surplus reinvested in the cause.
How aims shape the way organisations are run
The aim of an organisation changes the decisions it makes.
- A private hotel chooses the services that earn most and sets prices to make a profit.
- A public leisure centre keeps prices affordable, offers concessions, and runs activities (such as swimming lessons for schools) that benefit health even if they do not make money.
- A voluntary organisation such as the National Trust protects places and welcomes visitors to support its cause, using any income to maintain and conserve.
Many places involve more than one sector working together: a public tourist information centre may promote private hotels and voluntary-sector attractions in the same area.
Worked example: placing an organisation in its sector
A common exam task gives a short description and asks for the sector and aim.
Why this matters
Knowing the sectors lets you explain how any organisation is owned, funded and run, and why two similar facilities may behave differently. In the exam you may be asked to name the sectors, give aims and examples, or evaluate how a change of ownership would affect a service. It links closely to products and services (different sectors offer different mixes) and to sustainable tourism (voluntary and public bodies often lead on protecting places). The most valuable skill is to read a description, place the organisation in the right sector, and use its aim to explain its decisions.
Try this
Q1. Name the three sectors that own leisure, travel and tourism organisations. [3 marks]
- Cue. The private sector, the public sector and the voluntary sector.
Q2. State the main aim of the private sector and give one example of a private-sector organisation. [2 marks]
- Cue. To make a profit, for example a privately owned hotel, tour operator or travel agent.
Q3. Why might a council leisure centre keep its prices low? [2 marks]
- Cue. It is in the public sector and its aim is to provide a service to the whole community, so it keeps activities affordable for everyone.
Exam-style practice questions
Practice questions written in the style of CCEA exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.
CCEA Unit 1 (style)6 marksIdentify the three sectors that own leisure, travel and tourism organisations. For each, state its main aim and give one example.Show worked answer →
A recall question testing AO1, worth two marks per sector (aim plus example).
The private sector is owned by individuals or companies and its main aim is to make a profit, for example a privately owned hotel, a tour operator or a high-street travel agent.
The public sector is owned and funded by the government or local councils and its main aim is to provide a service to the community, for example a council leisure centre, a public library or a tourist information centre.
The voluntary sector is run by charities and trusts and its main aim is to support a cause rather than make profit, for example the National Trust, a sports club run by volunteers, or a conservation charity.
The marks are for naming each sector with the correct aim and a suitable example.
CCEA Unit 1 (style)6 marksA council is deciding whether to keep running its leisure centre or sell it to a private company. Discuss how the aims of the two sectors might change how the centre is run.Show worked answer →
An application and evaluation question testing AO2 and AO3.
Explain the aims: in the public sector the council aims to provide a service to the whole community, so it may keep prices low, offer concessions for older people and children, and run loss-making activities that benefit health. In the private sector the new owner aims to make a profit, so it may raise prices, cut unprofitable activities and focus on the services that earn most.
Apply to the centre: under the council, access and affordability would be priorities; under a private firm, efficiency and profit would be, which could improve facilities but reduce affordability for some users.
A supported judgement weighs wider community benefit and affordability against the investment and efficiency a profit-driven owner might bring, and reaches a clear conclusion.
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