In this direction, this book is an introduction to understand the functions and operational mechanism of travel agency and tour operations. This innovative approach has made Thomas Cook known as the father of the travel agency business.
A happy day came in the history of the traveling trade when in 1841 Thomas Cook, as secretary of the South Midland Temperance Association, organized a journey by train for 570 members of his association to a distance of 22 miles. Thomas Cook's company is still under the name Thomas Cook and Sons while Henry Well's company is known as American Express.
The travel agency is one of the most important organizations in the tourism private sector WKDWSOD\VDVLJQL¿FDQWDQGFUXFLDOUROHLQWKHHQWLUHSURFHVVRIGHYHORSLQJDQGSURPRWLQJ tourism in the country or destination. A future travel agency is one that sells tickets (air, rail, road and sea); travel documents (passport, visa and other travel documents), accommodation, entertainment and other travel services from major suppliers.
A wholesaler that sells tourist products separately without assembling them into packages is called a consolidator.
Difference between Travel Agencies and Tour Operators
A trip DJHQF\ DFWV OLNH DQ LQGHSHQGHQW UHVHOOHU ,WV SUR¿W LV WKH FRPPLVVLRQ IRU WKH VDOH from the operator's tours to customers. Regardless of the number of subsidiaries, a tour operator usually enters into agency agreements with independent travel agencies who then sell the operator's tours to their customers.
Market Trends & Travel Agency Business Scenario
A travel agent is just a distributor and usually travel agents rarely own their own travel assets (such as rental cars or hotels). Traditional travel agencies will continue to compete for sales with airline seats and online agencies.
Business Integration
Horizontal integration is what occurs at each level of the chain, while vertical integration describes the process of linking together organizations at different levels of the chain. Vertical integration is said to occur when an organization at one level in the supply chain merges with one at another level.
OPERATIONS OF TRAVEL AGENCY
Unit Overview & Description
Resource Material
Introduction
UNIT–2
- Agent
- Origins of Travel Agency
- Operations of Travel Agency
- Organization of Travel Agencies
- Commissions
A travel agency is a private trader or public service that provides tourism-related services to the public on behalf of suppliers such as airlines, car rentals, cruise lines, hotels, railways and package tours. Various areas of a travel agency's focus pay commissions to the agency which become its main income.
Types of Agencies
Travel Agencies in the 21st Century
In 2009, the market size for travel agencies experienced a sharp decline, GURSSLQJ IURP ELOOLRQ WKH SUHYLRXV \HDU WR ELOOLRQ. Major online travel agencies include: Expedia, Voyages, Travelocity, Orbitz, CheapTickets, Priceline, CheapOair, Webjet and Hotwire.
Guidelines for Practical
UNIT-3
TRANSPORT NETWORK
Unit Overview and Description
- Transportation
- Tourism and Transport
- Air Transport
- Rail Transportation
- Road Transport
- Shipping
- Mass Transportation
The potential of the Eurasian land bridge is partially compromised by these track gauge differences. The state highways have a total length of 71,772 km and serve as the country's arterial road network. This industry is characterized by a high degree of market concentration with a few companies such as Carnival Corporation and Royal Caribbean Cruises accounting for approximately 70% of the market.
Unit-4
ITINERARY PLANNING
Itinerary Planning
The itinerary is prepared to identify the duration of the service, the tangible and intangible nature of the service, solves the problem of immovability of tourism products. Another interesting fact of tourism is that there are points of sale (POS) and points of service delivery (POSD) in different places. An itinerary is the combination of various components of tourism to form a product ready for sale.
Importance of Travel Itinerary
Types of Tour Itinerary
Itineraries are also Differentiated According to the Person for it is Prepared for, Which are
Prerequisites of Itinerary Preparation
Required Resources / Material
Things to be Considered While Preparing an Itinerary
Step By Step Procedure
Do’s and Don’ts of Itinerary Preparation
GIT : Group Inclusive Tour
FITs
Packages or Inclusive Tours
Guidelines for Practical
TOUR PACKAGING &
PROGRAMMING
Unit-5
Meaning and Classiʩcations of Tour Packages
The package tour business was planned and organized after the organization of an organized package tour to Paris in 1855 by Thomas Cook. A package holiday consists of a combination of two or more components of services with the aim of helping the clients or customers save time & costs and avoid uncertainties. In addition, travel trends and motivation are taken into account when designing package tours.
Classiʩcation of Package Tours
The cost of the package tour is relatively high as it includes most of the customized services. Incentive Tour: Incentive tour are usually all-inclusive package tours that include all essential components of a standard package tour. It is organized package tour that LV FRQGXFWHG IRU HPSOR\HHV ZLWK WKH VSRQVRUVKLS IURP WKH EXVLQHVV ¿UPV RU FRUSRUDWH.
Freedom Tour
Components of Package
It is an integral part of a package tour as it offers guided tours to the places of tourist interest in the cities. Car rental service: Luxury car service is an important element of package tour as it is mainly required during arrival, departure and sightseeing. Insurance: Tour packages are insured for compensation to the tour operators or guests in the event of cancellation.
Customized or Tailor-Made Package and Group Inclusive Tours
Event Services: Tour operators use the services of MICE operators for the purpose of booking venues, food, conference packages and pre- and post-conference tour programs. For example, Bajaj Allianz and TATA AIG have customized travel insurance for overseas travel for Indian travelers. Ground handling services: In addition to the arrangement of luxury cars and buses, the package tour also includes the services of guides and language interpreters, entrance fees and transport and drop-off.
Group Inclusive Travel (GIT)
Tour Formulation & Designing Process
It is a multi-step process that helps the tour manager to develop and design a new tourism trip. First, the design concept of the new package tour is firmly established RU IRUP ZKHQ FROOHFWLYH LGHDV DQG H[SHULHQFHV DUH FRQVROLGDWHG +RZHYHU ¿HOG VXUYH\. It is therefore a combination of innovative ideas, feedback from tour guides and recommendations from guests for the development of package travel.
Tour Brochure Designing
Tour Programming and its Importance
WRXU RSHUDWRUV SURJUDPPLQJ LQFUHDVHV WKH TXDOLW\ RI SDFNDJH WRXU WKDW OHDGV WR FUHDWLQJ repeat buyers for the package. Below are the advantages of programming from both the tour operator's and the customer's perspective. LVW RXW WKH PDLQ FRQWHQW RI SDFNDJHV WRXU 3UHSDUH D PRGHO SDFNDJH WRXU RI \RXU RZQ.
PACKAGE TOUR COSTING
UNIT–6
Meaning and Types of Cost
The costs are otherwise explained as the sum of all expenses for the purchase of main and associated services. Costs are the amount of expenses that may be actual or notional incurred when purchasing services. The concept of cost is measured in money, the amount of resources used for the purpose FRVW LV UHSUHVHQWHG DV WR UHDOL]H WKHREMHFWLYHRIDEXVLQHVV¿UPV,QWKHWRXURSHUDWLRQEXVLQHVVWRXUZKROHVDOHUXVHVDOO knowledge and skills to control costs and maximize output.
Concept of Tour Costing
Tour operators incur the cost of booking hotel rooms, airline seats, cruise lines, train seats and bus seats, and other primary services. Tour PDQDJHUV HDVLO\ ¿QG WKH YDULDEOH DQG ¿[HG FRVWV DQG WDNH DSSURSULDWH GHFLVLRQV 7KH Cost calculation method largely differs from one tour operator company to another depending on their core competency and the company's business strategy. It is total revenue JHQHUDWHG IURP WKH VDOH RI SDFNDJH WRXU DQG LW PXVW EH HTXDO WR WKH WRWDO FRVW LQFXUUHG IRU DFTXLULQJ WKH VHUYLFHV 7KLV WHFKQLTXH LV XVHG WR HYDOXDWH DOWHUQDWLYH SULFLQJ O HYHOV 7KXV EUHDNHYHQ VDOHV FDQ EH REWDLQHG E\ GLYLGLQJ WKH VXP RI WKH WRWDO ¿ [HG FRVWV DQG the total variable costs by the package prices.
Types of Cost
Activity: Collect travel brochures from three leading outbound tour operators and assess the variable cost component of package holidays.
Preparation of Cost Sheet
- Components of Tour Cost
- Pricing Package Tour
- Pricing Strategies
- Guidelines for Practical
The sum of the cost components of a package tour is known as the price of the package sold. Travel and Transfer: International and domestic airfares, train travel, transfer and departure charges are also included in the cost component of the package tour. There is a marginal difference in the price of outbound package travel to SOTC and Cox & Kings.
GOVERNMENT AND
PROFESSIONAL BODIES
Unit Overview & Description
UNIT–7
Integration between Government and Professional Bodies
It has become clear to governments and professional bodies that no single individual organization can be effectively responsible for the development of tourism. JRRG LQWHJUDWLRQ LQYROYHV D FOHDU GH¿QLWLRQ RI UROHV FRPSHWHQFLHV UHVSRQVLELOLWLHV DQG benefits both in government and professional bodies. Effective integration between government and professional bodies can GHOLYHU VLJQL¿FDQW EHQH¿WV LQ WKH IRUP RI.
Rules for Setting up Travel Agency & Tour Operators
IRUPXODWHG DQG SUHSDUHG JXLGHOLQHV DQG UXOHV IRU WKH EHQH¿W RI WUDYHO WUDGH HQWHUSULVHV and for the overall growth and development of the tourism industry. These rules and guidelines are drawn from the wider parameters of travel trade and ethics in the industry. These rules/standards have been prepared for effective and comprehensive control over the activities of WUDYHO HQWHUSULVHV VR WKDW ¿QDQFLDO DQG QRQ¿QDQFLDO LQFHQWLYHV FDQ EH SURYLGHG WR WKHP from time to time.
Department of Tourism (DoT) Different Schemes and Policies
The Travel Agency must have been in operation for a minimum period of one year prior to the date of application. The travel agency has a minimum paid up capital (or capital employed) of Rs.3.00 lakhs duly supported by the audited balance sheet / chartered accountant. The Travel Agency must be approved by the International Air Transport Association (IATA) or must be General Sales Agent (GSA)/ Passenger Sales Agent (PSA) of an IATA member Airlines.
IATA Approval for Travel Agency/ Tour Operator
- Professional Bodies and their Activities 1. UFTAA
- PATA
- ASTA
- TAAI
For outsourcing services related to tourists, the travel agencies XVH DSSURYHG VSHFLDOL]HG DJHQFLHV LQ WKH VSHFL¿F ¿HOG RI DFWLYLW\. Once approved, the travel/tour companies will be granted IATA applicant status for six months. TAAI represents all that is professional, ethical and dynamic in our country's travel related activities and is recognized as the voice of India's travel and tourism industry.
TAAI Endeavors to Build in its Constituents, and others it deals with, a commitment to
TAAI’s objectives are to work towards
- IATO
- ATOAI
- ADTOI
- TAFI
- FIYTO
To complement the development of the travel industry in India by inculcating consistent improvement in the standard of service and professionalism. To promote mutual cooperation between members of TAFI and thereby ensure healthy growth of the travel industry. Maintain close contact with global bodies and represent matters affecting the travel industry of the country.
Unit–8
GLOBAL DISTRIBUTION SYSTEM
- Global Distribution System
- The Evolution of Global Distribution Systems
- Amadeus and GDS
- Display Airlines Schedules & Availability
- Guidelines for Practical
Travel Agency and Tourist Operations Business 85 . regulation of the GDS industry, requiring that GDS owners: .. amp;DQQRWIDYRUGLVIDYRUDQ\DLUOLQHLQVHWWLQJWKHGLVSOD\RUGHURIÀLJKWVRUERRNLQJ; .. 0XVW SURYLGH GDWD WR DOO FDUULHUV RQ D QRQGLVFULPLQDWRU\ EDVLV .. 0XVW RIIHU WUDYHO DJHQWV FRQWUDFWV RI WKUHH \HDUV RU OHVV. It offers a wide range of innovative products that enable e-commerce and travel services, and improve airline, supplier and travel agency operations and their ability to serve the traveler. Activity: Visit the travel agency and identify the different GDS software used in UHVSHFWLYH RI¿FHV.
