Chapter 1“Introduction to Travel Agency”

Introduction to Travel Agency

The travel industry is the big business in the modern world and travel agencies make up an important part of the industry. As well as being able to access details about hundreds of package holidays, flights, accommodations and excursions, travel agencies have the expert knowledge to put all of this information into plain English to help their customers find and book a holiday to suit them or a travel agency is a private retailer 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.

There are many different types of travel agencies (travel agents), including holiday travel agents, such as Going Places and First Choice, which help customers, choose and book their summer family holiday, group ski break or city sightseeing tour. But other specialist travel agencies are also available, such as business travel agents, which help businesses and businesspeople plan and book their conference, flights and foreign business travel, and location specialists, who will offer expert advice, great deals and a reliable booking service for certain locations in the world, including Australia travel agents, Caribbean travel agents and India travel agents.

In addition to all this there are independent travel agencies, such as Trail finders and Co-op Travel, and many of these specialise in certain types of holidays, such as booking round the world trips for students heading off on a gap year, and travel agents who only book cruises or UK breaks.

Travel agencies are trained to give advice on destinations worldwide and make arrangements for transportation, hotel accommodation, car rental and sightseeing tours, as well as organizing travel insurance or your holiday and advising you on customs regulations, required papers, such as passports and visas, and currency exchange rates.

In recent years there has been a huge increase in the number of online travel agencies, but online travel agencies sometimes struggle to compete with airlines and hotels which have also taken a more direct approach to winning customers by using the Internet and no longer rely on the travel agency to fill their aeroplanes and hotels. However, you will still find that whether you

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use a high street travel agencies or an online travel agencies, they will have expert knowledge on booking holidays and will be able to organize the entire holiday package at once, without you having to speak to airlines, hotels, tourism companies, car rental firms, etc, personally.

I. Three basic ways of travel agency

1. Home-based travel agency

This option is most appealing to people who want to be able to run their business right out of their homes. Because most travel research and booking can be done over the internet, overhead costs can be kept relatively low from the start. Beyond a computer, internet connection and phone line, there are very few other necessities. With the Internet as prevalent as it is in today’s society, most consumers are already comfortable doing research and making purchases online. Creating a home-based agency can also be a perfect way to get one foot in the travel world part-time while still working at your current job. Then, when business picks up enough you can take on travel bookings full time.

2. Independent Contractor Travel AgencyFor all the benefits of being your own boss while still enjoying the perks of name recognition, consider being an independent contractor for an established, or “host” agency. Unlike a home based position, independent contractors frequently work out of a brick-and-mortar office operated by the overseeing agency. Working with a host agency provides instant credibility as well as advanced access to industry contacts. In selecting a host agency to work with, consider how long

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the group has been in business and what their ratings are like with the Better Business Bureau and the State Attorney General’s Office. These host agencies should also offer training and support programs to assist new agents in their business.

3. Specialty Travel AgencyWhether working from home or under the umbrella of a host agency, choosing to specialize in niche travel is a widely chosen option. If you already have a long list of contacts in a certain business or social circle, that can provide the basis for a great travel business. By tailoring your offerings to fit the needs of a specific group, you can become an expert in that field and draw clients looking for a knowledgeable source. Specialty agents can either market themselves to a certain demographic (i.e. honeymooners) or to special interest groups (i.e. wine enthusiasts, adventure travel). Designing specific trips around the desires of your targeted group allows you to appeal to a highly motivated group of travellers.

II. Ownership of the travel agency

1. One bossed-travel agency

What is a Sole Proprietorship or one bossed owner?

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A sole proprietorship is a business entity in which there is a single owner entirely responsible for business decisions and liabilities. There is no legal distinction between the business and the owner. All business profits, losses and assets are the personal profits, losses and assets of the owner.Many people decide to form a sole proprietorship due to the ease of creation and function. The owner is the sole decision maker and does not share the profits. In addition, the profits are taxed as personal income and are not subject to a corporate tax. However, owners of sole proctorships have unlimited liability with regard to the debts and obligations of the business. Personal assets of the owner are at risk if the liabilities of the sole proprietorship exceed its assets.

2. Joint venture travel agencyA business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it. However, the venture is its own entity, separate and apart from the participants' other business interests. Joint venture travel agency can be divided into various types as modern practice

Joint venture with half share as financial Joint venture with full share as financial Joint venture with full share as physical resource Joint venture with full share as human resource

III. Types of tourism/travel

What are the different types of tourism?

Tourism is one of the world’s fastest growing industries as income is generated by the spending of goods and services required by tourists. The tourism industry is therefore very important to the well-being of many countries.

What is tourism?

Tourism is a collection of activities, services and industries that delivers a travel experience, including transportation, accommodations, eating and drinking establishments, retail shops, entertainment businesses, activity facilities and other hospitality services provided for individuals or groups traveling away from home. The World Tourism Organization (WTO) claims that tourism is currently the world largest industry with annual revenues of over $3 trillion dollars. Tourism provides over six million jobs in the United States, making it the country's largest employer.

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Types of Tourism

Tourism can be classified into the following types:

Inbound International tourism: Non-residents traveling in the given country. Outbound International tourism: Residents traveling in another country.

Domestic tourism: Residents of the given country traveling only within this country.

Most popular categories of tourism

The Tourism industry has developed through the years and presently is one of the most diversified, customized and specialized industries. We would like to introduce some of the most popular types of tourism worldwide where tourists are categorized by the purpose of their visit.

Leisure Tourism

Leisure time can be defined as “free time”, not doing any work. It is that time to do things that you normally have no time for in your daily life. Leisure tourism includes a holiday with the following:

Leisure activities

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Relaxation: Sleep, relax, reading, walk on the beach, taking a scenic drive Sport activities: hiking, swimming, surfing, running

Visit places of interest and local attractions

Visiting friends and relatives

Shopping for goods that will be used by the tourist.

Business Tourism

Business tourism can be defined as “travel for the purpose of business”. Business Tourism can be divided into three sections:

Trading for goods to be resold on a wholesale basis Conduct business transactions ( Sales call)

o e.g. visiting a client, contract negotiations Attending a conference, exhibition or event associated with their business.

Wellness Tourism

Wellness tourism is one of the fastest growing forms of international and domestic tourism. This form of tourism involves people who travel to a different place to pursue activities that maintain or enhance their personal health and wellness, and who are seeking unique, authentic or location-based experiences. Wellness tourism include massages, body treatments, facial

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treatments, exercise facilities & programs, weight loss programs , nutrition programs, pre- and post-operative Spa treatments and mind/body programs.

Medical Tourism

Medical Tourism involves people who travel to a different place to receive treatment for a disease, health condition, or a surgical procedure, and who are seeking lower cost of healthcare and higher quality of care. Favorite procedures in medical tourism include Cardiology, Cardiothoracic, Cosmetic Surgery, Plastic and Reconstructive Surgery, Weight Loss, Neuron, Eye, Orthopedic Surgery, as well as Organ Transplants (kidney).

Medical Tourism services include medical facilitation, travel arrangements, accommodation, transportation and tour packages.

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Cultural Tourism

Cultural tourism or sometimes referred to as heritage tourism is the division of tourism concerned with the region’s culture, specifically the lifestyle and history of the people, their art, architecture, religion and other elements. Cultural tourism includes cultural facilities such as museums, theatres and festivals. This is one of the most popular types of tourism and attracts tourists from different parts of the world.

Adventure Tourism

Adventure tourism is an outdoor activity that generally takes place in an unusual, remote or a wilderness area. This adventurous activity can take place in the sea, in rivers, in the air, in mountains and is associated with low or high levels of physical activity. There are many types of products and services that fall within the Adventure Tourism category such as: bungee jumping, mountaineering expeditions, rafting, rock climbing, diving, wind surfing, paragliding and many more.

Eco Tourism

Ecotourism is “Responsible travel to natural (unspoilt) areas that conserves the environment and improves the well-being of local people.” The purpose of ecotourism is to educate the traveler about natural destinations, to provide ecological conservation and awareness, to

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benefit economic development, the political empowerment of local communities and respect for the local culture. Here the traveler can experience the natural way of life surrounded by natural circumstances.

Sports Tourism

Sports tourism refers to international travel either for viewing or participating in a sporting event. Examples include international sporting events such as the Olympics, world cup (soccer, rugby, and cricket), tennis, golf and Formula 1 Grand Prix.

Religious Tourism

Religious Tourism or faith tourism are people of faith who travel on their own or in groups to holy cities or holy sites for pilgrimages, crusades, conventions, retreats, religious tourist attractions or missionary work

Wildlife Tourism

Wildlife tourism is the observation of wild (non-domestic) animals in their natural environment or in captivity. It includes activities such as photography, viewing and feeding of animals. This form of tourism offer tourists customized tour packages and safaris and is closely associated with eco-tourism and sustainable-tourism.

Other minor forms of tourism include Slum tourism, Luxury tourism, Agritourism, Geo-tourism, culinary tourism and many more.

IV. Tourism Terminology

Tourism is a social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes. These people are called visitors (which may be either tourists or excursionists; residents or non-residents) and tourism has to do with their activities, some of which imply tourism expenditure.

As such, tourism has implications on the economy, on the natural and built environment, on the local population at the destination and on the tourists themselves. Due to these multiple

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impacts, the wide range and variety of production factors required producing those goods and services acquired by visitors, and the wide spectrum of stakeholders involved or affected by tourism, there is a need for a holistic approach to tourism development, management and monitoring. This approach is strongly recommended in order to formulate and implement national and local tourism policies as well as the necessary international agreements or other processes in respect of tourism.

Useful terminology in tourism

Business visitor: A business visitor is a visitor whose main purpose for a tourism trip corresponds to the business and professional category

Country of residence: The country of residence of a household is determined according to the center of predominant economic interest of its members. If a person resides (or intends to reside) for more than one year in a given country and has there his/her center of economic interest (for example, where the predominant amount of time is spent), he/she is considered as a resident of this country.

Destination (main destination) of a trip: The main destination of a tourism trip is defined as the place visited that is central to the decision to take the trip. See also purpose of a tourism trip.

Domestic tourism: Comprises the activities of a resident visitor within the country of reference, either as part of a domestic tourism trip or part of an outbound tourism trip

Economic analysis: Tourism generates directly and indirectly an increase in economic activity in the places visited (and beyond), mainly due to demand for goods and services that need to be produced and provided.

In the economic analysis of tourism, one may distinguish between tourism’s ‘economic contribution’ which refers to the direct effect of tourism and is measurable by means of the TSA, and tourism’s ‘economic impact’ which is a much broader concept encapsulating the direct, indirect and induced effects of tourism and which must be estimated by applying models.

Economic impact studies aim to quantify economic benefits, that is, the net increase in the wealth of residents resulting from tourism, measured in monetary terms, over and above the levels that would prevail in its absence.

Employment in tourism industries: Employment in tourism industries may be measured as a count of the persons employed in tourism industries in any of their jobs, as a count of the persons employed in tourism industries in their main job, as a count of the jobs in tourism industries, or as full-time equivalent figures.

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Excursionist (or same-day visitor): A visitor (domestic, inbound or outbound) is classified as a same-day visitor (or excursionist) if his/her trip does not include an overnight stay.

Forms of tourism: There are three basic forms of tourism: domestic tourism, inbound tourism, and outbound tourism. These can be combined in various ways to derive the following additional forms of tourism: internal tourism, national tourism and international tourism.

Inbound tourism: Comprises the activities of a non-resident visitor within the country of reference on an inbound tourism trip.

Internal tourism: Internal tourism comprises domestic tourism plus inbound tourism, that is to say, the activities of resident and non-resident visitors within the country of reference as part of domestic or international tourism trips.

International tourism: International tourism comprises inbound tourism plus outbound tourism, that is to say, the activities of resident visitors outside the country of reference, either as part of domestic or outbound tourism trips and the activities of non-resident visitors within the country of reference on inbound tourism trips.

Meetings industry: To highlight purposes relevant to the meetings industry, if a trip’s main purpose is business/professional, it can be further subdivided into “attending meetings, conferences or congresses, trade fairs and exhibitions” and “other business and professional purposes”.

The term meetings industry is preferred by the International Congress and Convention Association (ICCA), Meeting Professionals International (MPI) and Reed Travel over the acronym MICE (Meetings, Incentives, Conferences and Exhibitions) which does not recognize the industrial nature of such activities.

National tourism: National tourism comprises domestic tourism plus outbound tourism, that is to say, the activities of resident visitors within and outside the country of reference, either as part of domestic or outbound tourism trips.

Outbound tourism: Comprises the activities of a resident visitor outside the country of reference, either as part of an outbound tourism trip or as part of a domestic tourism trip.

Place of usual residence: The place of usual residence is the geographical place where the enumerated person usually resides, and is defined by the location of his/her principal dwelling (Principles and recommendations for population and housing censuses of the United Nations,

Purpose of a tourism trip (main): The main purpose of a tourism trip is defined as the purpose in the absence of which the trip would not have taken place. Classification of tourism trips

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according to the main purpose refers to nine categories: this typology allows the identification of different subsets of visitors (business visitors, transit visitors, etc).

See also destination of a tourism trip

Tourism expenditure: Tourism expenditure refers to the amount paid for the acquisition of consumption goods and services, as well as valuables, for own use or to give away, for and during tourism trips.

Tourism industries: Tourism industries (also referred to as tourism activities) are the activities that typically produce tourism characteristic products.

Tourism characteristic products are those that satisfy one or both of the following criteria:

(a) Tourism expenditure on the product (either good or service) should represent a significant share of total tourism expenditure (share-of-expenditure/demand condition);

(b) Tourism expenditure on the product should represent a significant share of the supply of the product in the economy (share-of-supply condition). This criterion implies that the supply of a tourism characteristic product would cease to exist in meaningful quantity in the absence of visitors.

List of categories of tourism characteristic products and tourism industries

Products Industries1. Accommodation services for visitors 1. Accommodation for visitors

2. Food and beverage serving services 2. Food and beverage serving activities

3. Railway passenger transport services 3. Railway passenger transport

4. Road passenger transport services 4. Road passenger transport

5. Water passenger transport servcies 5. Water passenger transport

6. Air passenger transport services 6. Air passenger transport

7. Transport equipment rental services 7. Transport equipment rental

8. Travel agencies and other reservation services

8. Travel agencies and other reservation services activities

9. Cultural services 9. Cultural activities

10. Sports and recreational services 10. Sports and recreational activities

11. Country-specific tourism characteristic goods

11. Retail trade of country-specific tourism characteristic goods

12. Country-specific tourism characteristic services

12. Other country-specific tourism characteristic activities

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Tourism sector: The tourism sector, as contemplated in the TSA, is the cluster of production units in different industries that provide consumption goods and services demanded by visitors. Such industries are called tourism industries because visitor acquisition represents such a significant share of their supply that, in the absence of visitors, their production of these would cease to exist in meaningful quantity.

Tourist (or overnight visitor): A visitor (domestic, inbound or outbound) is classified as a tourist (or overnight visitor), if his/her trip includes an overnight stay.

Travel / tourism: Travel refers to the activity of travellers. A traveller is someone who moves between different geographic locations, for any purpose and any duration. The visitor is a particular type of traveller and consequently tourism is a subset of travel.

Travel party: A travel party is defined as visitors travelling together on a trip and whose expenditures are pooled.

Trip: A trip refers to the travel by a person from the time of departure from his/her usual residence until he/she returns: it thus refers to a round trip. Trips taken by visitors are tourism trips.

Usual environment: The usual environment of an individual, a key concept in tourism, is defined as the geographical area (though not necessarily a contiguous one) within which an individual conducts his/her regular life routines.

Vacation home: A vacation home (sometimes also designated as a holiday home) is a secondary dwelling that is visited by the members of the household mostly for purposes of recreation, vacation or any other form of leisure.

Visit: A trip is made up of visits to different places. The term tourism visit refers to a stay in a place visited during a tourism trip

Visitor: A visitor is a traveller taking a trip to a main destination outside his/her usual environment, for less than a year, for any main purpose (business, leisure or other personal purpose) other than to be employed by a resident entity in the country or place visited. A visitor (domestic, inbound or outbound) is classified as a tourist (or overnight visitor), if his/her trip includes an overnight stay, or as a same-day visitor (or excursionist) otherwise.

The World Tourism Organization (UNWTO): The United Nations agency responsible for the promotion of responsible, sustainable and universally accessible tourism. UNWTO’s membership includes 156 countries, 6 Associate Members and over 400 Affiliate Members representing the private sector, educational institutions, tourism associations and local tourism authorities.

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V. Tourism History

Tourism can be recognized as long as people have travelled; the narrative of Marco Polo in the 13th century; the "grand tour" of the British aristocracy to Europe in the 18th century; and the journeys of David Livingstone through Africa in the 19th century are all examples of early tourism. Thomas Cook is popularly regarded as the founder of inclusive tours with his use of a chartered train in 1841 to transport tourists from Loughborough to Leicester. Before the 1950s, tourism in Europe was mainly a domestic activity with some international travel between countries, mainly within continental Europe. In the period of recovery following World War II, a combination of circumstances provided an impetus to international travel. Among the important contributing factors were the growing number of people in employment, the increase in real disposable incomes and available leisure time, and changing social attitudes towards leisure and work. These factors combined to stimulate the latent demand for foreign travel and holidays. The emergence of specialist tour operators, who organized inclusive holidays by purchasing transport, accommodation, and related services and selling these at a single price, brought foreign holidays within the price-range of a new and growing group of consumers.

Thomas Cook led the group by train

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Chapter 2“Domestic Travel Agency”

Tourism is a dynamic and competitive industry that requires the ability to constantly adapt to customers' changing needs and desires, as the customer’s satisfaction, safety and enjoyment are particularly the focus of tourism businesses. Domestic Travel Agency is one part of tourism industry which is focused on tourism markets and attractions within a country.

The tourism industry is divided into five different sectors:

Accommodation Food and Beverage Services

Recreation and Entertainment

Transportation

Travel Services

The diversity of these five sectors shows that the career options in the tourism industry are unlimited. Depending on your interests and skills, you can work indoors or out, nine to five or midnight to noon. You can work in an office, an airport or out of your home. You can have one career in the winter and another in the summer. There are a thousand of people travels every year throughout the country for different purposes such as leisure, medical, religion, and visiting their family etc.

I. Domestic clients

Domestic market is referred to various ranges of clients who use the services of domestic travel agency to fulfill their needs and wants.

Business-to-business (B2B) describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer. Contrasting terms are business-to-consumer (B2C) and business-to-government (B2G). B2B branding is a term used in marketing. The overall volume of B2B (Business-to-Business) transactions is much higher than the volume of B2C transactions. Meaning is that travel agency does business to travel agency for their raw product or finished product, and ideally they have some connection both trust worth and supporting. Some medium or big companies they always arrange the incentive trip or company trip to thank the employees for working hard for company and at the end of the year or some days of the year. Companies reimburse them by arranging the trip to

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overseas or to one region of the country for three to five days. The quote of this trip will be on bid for special price and it is the time for travel agency participates in this bidding.

Who are a B2B in your company?

Business to customer (B2C) is retail of the sale of goods and services from individuals or businesses to the end-user. Retailers are part of an integrated system called the supply chain. A retailer purchases goods or products in large quantities from manufacturers directly or through a wholesale, and then sells smaller quantities to the consumer for a profit. Retailing can be done in either fixed locations like stores or markets, door-to-door or by delivery. Retailing includes subordinated services, such as delivery. The term "retailer" is also applied where a service provider services the needs of a large number of individuals, such as for the public.

Business-to-government (B2G) is a derivative of B2B marketing and often referred to as a market definition of "public sector marketing" which encompasses marketing products and services to various government levels - including federal, state and local - through integrated marketing communications techniques such as strategic public relations, branding, advertising, and web-based communications.

B2G networks provide a platform for businesses to bid on government opportunities which are presented as solicitations in the form of RFPs in a reverse auction fashion.

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