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 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
Travel Agency Management
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.
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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.
you 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
For 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
Travel Agency Management
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.
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2. Independent Contractor Travel Agency
advanced access to industry contacts. In selecting a host agency to work with, consider how long
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 Agency
II. Ownership of the travel agency
1. One bossed-travel agency
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Travel Agency Management
Whether 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.
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What is a Sole Proprietorship or one bossed owner?
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 agency
A 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
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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 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
Travel Agency Management
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.
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What is tourism?
dollars. Tourism provides over six million jobs in the United States, making it the country's
largest employer.
Types of Tourism
Tourism can be classified into the following types:
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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
Travel Agency Management
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:
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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
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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Travel Agency Management
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.
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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).
Travel Agency Management
Medical Tourism services include medical facilitation, travel arrangements, accommodation,
transportation and tour packages.
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Travel Agency Management
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 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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Adventure Tourism
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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.
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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Travel Agency Management
Other minor forms of tourism include Slum tourism, Luxury tourism, Agritourism, Geo-tourism,
culinary tourism and many more.
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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.
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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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.
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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.
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
Travel Agency Management
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.
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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,
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
Industries
1. 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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Products
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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
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.
Travel Agency Management
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.
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Travel Agency Management
V. Tourism History
Thomas Cook led the group by train
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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.
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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:
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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
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
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.
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Travel Agency Management
Domestic market is referred to various ranges of clients who use the services of domestic travel
agency to fulfill their needs and wants.
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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.
Travel Agency Management
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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