This is the first edition of BPP Learning Media's groundbreaking study guide for the paper Travel Agency and Tour Guide Operations of the CTH Diploma in Tourism Management. BPP's Learn to Learn Accountancy book (which can be used successfully by students studying for any vocational qualification) emphasizes the need to create (and use) a study plan.
The Exam Paper
Other titles in this series
INTRODUCTION TO TRAVEL AGENCY OPERATIONS
1 Historical development of travel agencies
2 The chain of distribution
With your class members, find out what distribution methods they used to buy tourism products.
3 Nature and role of intermediaries
Intermediary (middleman)
Suppliers pass the products or services to the travel agents, who then sell these products to consumers, in exchange for a fee for each product they sell. This is called a commission, which is usually a pre-agreed percentage 'ranging from 7 percent (%) to 40 percent' (Syratt depending on the relationship between the supplier and the travel agent and the volumes of products sold.
Disintermediation
4 Types of travel agencies
Retail Travel
Holiday hypermarkets
Home workers
SpecialistsIndependents
MultiplesMiniples
Look through the websites of at least two of the types of travel agents for the products they offer to consumers.
5 The role of travel agents
The travel agent – client purchase process
Imagine a scenario where one person has to play the role of travel agent and one or more people have to play the role of customers.
6 Integration
Tour operator
Vertical integration
Vertical integration occurs throughout the distribution chain (suppliers, wholesalers, retailers) 'where companies merge or one takes over at different levels in the distribution chain'. Dale Where it happens determines whether it is vertical backward integration or vertical forward integration. Defined by Johnson et al as follows: 'development towards activities related to the output of a firm'.
Horizontal integration
8 What information does a travel agent need when understanding and assessing a customer's holiday/travel needs? 8 Information that the travel agent needs when assessing and understanding the customer's holiday/travel needs include:.
INTERNAL PROCEDURES AND ACTIVITIES FOR A SUCCESSFUL TRAVEL AGENCY
1 Types of travel agency
Leisure travel agencies
Business travel agencies
Specialised travel agencies
2 Procedures of travel agents
Looking at the tasks in the list above, decide which you think are front office operations and which are back office operations. What activities and tasks do you think you would perform daily, weekly and monthly.
3 Costs involved in a travel agency
Fixed and variable costs
- Fixed costs
- Variable costs
- Operational costs of an independent travel agency
Since we have established businesses, including travel agencies, they have two main types of costs: fixed and variable. For each item on the list, determine which costs are fixed and which are variable.
4 Promotional activities
Above the line
Below the line
Printed sales material
- Pocket folders
- Window displays
- Point of Sale (POS) material
- Virtual sales material Websites
Affordable and attractive posters are still one of the most popular promotional materials for travel agencies. In recent years, many tourism organizations have made full use of the Internet to promote their goods and services, with many tour operators and travel agencies having online brochures or 'e-brochures' (Dale, 2005:256).
5 Valuable documents
Booking form
Booking checklist
5 'Above the line' promotion is advertising on television and in the national press that tries to increase brand awareness. 6 "Below the line" promotion is advertising and direct mail with a coupon or other answering machine, and whose primary purpose is to generate inquiries and/or direct sales.
TRAVEL AGENCY PRODUCTS AND SERVICES
1 Range of products and services
Visit your local travel agency and find out what products and services that travel agency offers. For the travel agency you chose in Activity 1: Is the travel agency located in a large city.
2 Travel agency products and services
Package holidays (Inclusive Tour – IT)
Since there is less pre-arranged catering in this type of holiday, they are cheaper and are offered by all types of travel agencies: multiple, miniple and independent. This type of package provides tourists with accommodation, typically an apartment with cooking facilities, but no food.
Other types of holidays
Very popular with leisure tourists for summer vacations, these types of packages are offered through many vertically integrated travel agencies, in the form of apartment hotels, but may also be available independently. Since they cater to a niche interest, this type of vacation is generally not available at (many) larger travel agencies, but may be available at smaller, independent travel agencies that cater to a niche market.
3 Tickets for travel
Have you ever bought any air, land or sea based travel tickets from a travel agency.
4 Ancillary services
1 List the factors that can influence the number of products and services that a travel agency can offer. 2 An 'all-inclusive package' holiday is a holiday that includes everything – food, alcoholic beverages, water sports and other entertainment at the hotel. 3 A full board package includes breakfast, lunch and dinner (dinner), while half board only includes breakfast and dinner.
SOURCES OF INFORMATION FOR SALES
1 The client purchase process (revision)
2 Sources of information about the destination
- Brochures
- Information included in a holiday brochure
- Travel Information Manual (TIM)
- Directories
- Gazetteers
- Guidebooks
- Magazines
- Tourist Authority publications
- National Tourist Boards (NTBs)
- Regional Tourist Boards (RTBs)
Expect to see only brochures from other jointly owned companies on the shelves of large multiplexes. On the other hand, smaller agencies may not have in-house employee manuals, but there are industry manuals available for travel agency professionals that provide guidelines and procedures that all travel agencies must follow. As the definition states, directories help travel agencies find names, addresses, and other information for businesses, people, and groups, much like a phone book you might find at home.
3 Virtual sales material
In the UK 'Visit Britain' is responsible for tourism in the UK and promoting Britain as a destination. Why do you think many of these sources of information for travel professionals such as: e-brochures, guidebooks, etc. are now available online. The Foreign and Commonwealth Office (FCO) provides travel information for outbound and inbound tourists and their website is a great source of information for travel professionals and tourists.
DISTRIBUTION METHODS AND INFORMATION TECHNOLOGY
1 Integration (revision)
2 Direct selling
Methods of direct selling
Many of these methods are still used by some companies in some sectors of the economy, but most of these methods are unlikely to be suitable for travel and tourism products. Which methods of 'direct selling' do you think are most widely used for the sale and distribution of tourism and travel products and services. Why do you think these methods are most suitable for the travel and tourism industry?
Advantages and disadvantages for consumers of direct selling
- Advantages of selling direct to consumers
- Disadvantages of selling direct to consumers
For vacation and tourism products, the customer has chosen to risk bypassing the intermediary to access cheap, convenient services and retain control of the transaction. This is particularly true in the travel and tourism sector 'no business is being transformed by information technology faster or more radically than the travel and tourism business'. Do you think there is any group or type of consumer who will not use the internet to buy travel and tourism products?
3 Positive and negative impacts of IT
Positive impacts of IT for tourism organisations
There may be a record of dietary requirements, such as Halal meat or a request for extra pillows. As well as an increase in customer retention (to ensure future sales), money can be saved through effective targeting and reducing waste.
Negative impacts of IT for tourism organisations
The infrastructure in some countries means that the internet may be very slow or only available for certain periods each day. Some segments of the market do not like to use the Internet; they may be afraid of technology or computer illiterate. The site may be difficult to navigate or the text may be very small and difficult to read on the screen.
4 Multimedia distribution
Examples of multimedia distribution
Security One of the major issues regarding online retailing is fraud, especially identity fraud, where data such as name, address and bank details are used for fraudulent means. What impact do you think this 'disintermediation' and 'direct selling', especially the internet, has had on the retail aspect of the travel and tourism industry, i.e. the travel agents. Have you ever used one of the multimedia methods to find out more about a destination or to help you while traveling.
INTRODUCTION TO TOUR GUIDING
1 Tour managers
Types of tour guides
2 The tour experience
3 Types of tours
Other types of tours, for example walking tours 6 Site-based tour - museum - British Museum, London. Water Based - Whale Watching Tours - Vancouver, Canada Other Types of Tours - City Walking Tours, New York, USA.
THE ROLE OF THE TOUR GUIDE
1 Key skills of a tour guide
Key skills of a tour guide
Although the job of a tour guide may seem like a vacation, visiting tourist spots with vacationers with shared enthusiasm. The tour leader's role involves three different elements, summarized in the diagram below.
Planning the tour
Delivery of the tourLeading people on
2 Planning the tour
Pre-holiday research
Logistics
Trial run
3 Leading people on the tour
Effective communication
In the above paragraph we have already discussed the different types of communication that a tour leader needs. More important are the interpersonal skills that help develop a rapport between guide and tourists. Based on the table above, which forms of verbal and non-verbal communication do you think are important for the role of tour guide.
Barriers to communication
4 Delivery/conducting a tour
1 A tour guide is a person 'who directs or shows the way, especially to a traveler in a foreign country and to point out objects of interest'. Learning about a place's history, past and present important events and its geography 4 The logistics are the practicalities that make or break a successful trip. 7 Non-verbal communication is 'any form of communication that is not expressed in words', such as body language.
STAFFING ISSUES FOR TOUR GUIDES AND TRAVEL CONSULTANTS
1 Job advertisements
Job/people specifications
2 Staffing issues for travel agents
Travel Consultant Employment Advert
As a Long Distance Booking Travel Consultant you will receive a basic salary of £xx.xxx with OTE on top. The ability to work to and exceed sales targets – The ability to build strong relationships with customers – Strong attention to detail. An excellent telephonic manner as the role involves selling to direct customers of the highest calibre. You will be working on a rotational basis throughout the call center openings which are.
3 Staffing issues for tour guides
Build relationships with customers to be able to proactively sell and gain a loyal customer base for repeat bookings. The successful candidate will be awarded a basic salary of £xx.xxx with unlimited OTE of £xx.xxx together with monthly long distance incentives, free parking and at least one long distance training per year. Can you think of any other skills or qualifications that are essential for a tour guide.
4 Types of adverts and publications
Achieve sales targets by always maximizing profits and leads while offering exceptional and personalized service. 3 The list of activities is listed under the heading 'As a Reservations Travel Consultant you will:' The job description is Long Distance Reservations Travel Consultant. The attributes for success are listed under the heading "To be successful as a Reservations Travel Consultant you will have:".
LEGAL CONSIDERATIONS AND CONFIDENTIALITY
1 Issues between tourists and travel providers
2 Memberships of Trade Associations
3 Laws on advertising and data protection
Laws on advertising
- EC Package Travel Regulations/Directive (1992)
- Trade Descriptions Act 1968 The UK law states
- Advertising Standards Authority (ASA)
- ABTA Code of Conduct (standards on brochures and websites)
All goods delivered during service must be as described, of satisfactory quality and fit for purpose. Again, if the ASA finds or sees ads as misleading or offensive, it will take it to a tribunal. In addition to the laws, ABTA members have a 'code of conduct' that they must adhere to.
4 Secure data storage and access of client records, data protection
The Data Protection Act 1998
- Why is privacy an important issue?
- The Data Protection Act 1998
In the United Kingdom, the ASA exists to "regulate the content of advertising, sales promotion and direct marketing in the United Kingdom", with the main principles of the Advertising Standards Codes being that ads "must not mislead, cause harm or offend." In particular, it was believed that a person could easily be harmed by the existence of computer data about him or her that was inaccurate or misleading and that could be transferred to unauthorized third parties with high speed and low cost. If they do not, the individual or organization can be said to have broken the law.
Unfair Terms in Consumer Contracts Regulations 1999
If they don't, the individual or organization can be said to be breaking the law. i) 'The confirmation must be sent no later than 14 days from the date of receipt of the correspondence and. ii) A detailed reply or a reply containing a detailed explanation of any delay shall be sent no later than 28 days from the date of receipt of the correspondence.' 3 The role of the ATOL scheme is to protect consumers from losing money or being stranded abroad if a tour operator goes out of business.
PRACTICE EXAMINATION
QUESTION PRACTICE
Marks: 3 to 5
25 mark questions
Marks Explanation
Level descriptors
PRACTICE EXAMINATION MARKING GUIDE
MARKING GUIDE
CTH Level 4 Diploma
Subject: TRAVEL AGENCY AND TOUR GUIDE OPERATIONS Series: January 2011
- Explain two differences between a scheduled flight and chartered flight. 4 Marks Mark
- For a tour company in a city of your choice, explain three job tasks of a tour guide. 9 Marks Mark
- List three examples of negative non-verbal communication. 3 Marks Mark
- List two tour guiding companies operating in your country. 2 Marks Mark
- Explain the term direct sell as used in the travel and tourism distribution network. 8 Marks Mark
- List five main steps involved in the meet and greet stage of a guided tour. 5 Marks Mark
For each difference, two points are provided, one to identify the factor of the difference and one to explain in each case. Two labels are provided for each request, one label provided for identification and the other for interpretation of each one. Up to 4 points are available for each reason, for a total of 12 points, awarded as follows: 1 point for identifying each reason and then a further 3 points for explaining it.
BIBLIOGRAPHY
INDEX
E -Agent, 6
