‘PROMOTIONAL STATERGIES

OF OFFLINE AND ONLINE

TRAVEL AGENCIES ’
by Princy Francis

Submission date: 08-Aug-2019 11:31AM (UTC+0530)

Submission ID: 1158541672
File name: Princy.pdf (469.51K)
Word count: 3277
Character count: 17974
 Term Paper
On
‘PROMOTIONAL STATERGIES OF OFFLINE AND ONLINE
TRAVEL AGENCIES ’

By

Princy Francis

In Partial Fulfillment of the Requirements for the Degree of

Bachelors of Arts (Tourist administration)

Under the Guidance of

Prof. (Dr.) Manohar Sajnani, Director, AITT

Dr.Pramendra Singh

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 Amity Institute of Travel and Tourism,

Amity University, Noida, UP

DECLARATION

Title of project report: The Promotional Strategies of Offline and Online Travel
Agencies

I declare,

• That the work presented for assessment in this Term Paper is my own, that
it has not previously been presented for another assessment and that
my debts (for words, data, arguments and ideas) have been appropriately
acknowledged.

• That the work conforms to the guidelines for presentation and style set out in the
relevant documentation.

Date:

Princy Francis

2
 CERTIFICATE OF COMPLETION

This is to certify that Ms Princy Francis has successfully completed the term paper on ‘The
Promotional Strategies of Offline and Online Travel Agencies’ in the academic year 2019-20,
for the partial fulfillment of Bachelors of Arts (Tourism Administration) at Amity University,
Noida, Campus.

During the project she exhibited disciplined approach and excellent determination. She did
sincere work on the above mention topic as and when asked to do so.

Date:

Dr. Pramendra Singh

Faculty Guide

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 ACKNOWLEDGEMENT

I take this opportunity to express my thoughtful gratitude and deep regards to Prof. (Dr.)
Manohar Sajnani, Director, AITT, my Faculty guide Dr. Pramendra Singh and programme
leader, Dr. Bivek Datta, for his ideal guidance, monitoring and constant encouragement
throughout the course of this project. The blessing and guidance given by him, time to time,
shall carry me a long way in the journey of life on which I am about to get on.

I am obliged to the faculty members of Amity University Noida, for the valuable information
provided by them in their respective fields. I am grateful for their cooperation during the period
of my project task.

I would also like to thank my parents and my friends for their constant encouragement without
which this report would not be possible.

And finally, to The Almighty God, who made all things possible.

Princy Francis

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 TABLE OF CONTENTS

INTRODUCTION…………………………………………………………………………………………………………………………………6
A BRIEF HISTORY of TAAI and its GROWTH ………………………………………………………………………….7
WHAT DO YOU MEAN BY TRAVEL AGENCIES ? …………………………………………………………………. 7-8
TYPES OF TRAVEL AGENCY: [ON THE BASIS OF BUSINESS MODEL] ……………….………….8-9
A. Online Travel Agency
B. Offline Travel Agency

The Advantages and Disadvantages Of Online Travel Agencies………………………………………..……………9-10

The Advantages and Disadvantages of Offline Travel Agencies ……………………………………………………..10
The Strategies To Increase Revenue For Online Travel Agencies……………………………………….………..…10-11
Make My Trip…………………………………………………………………………………………………………………………….…….11-12
Functions Of Travel Agency………………………………………………………..…………………………………...………………13
Sources Of Income For Travel Agency……………………………………………………………………………………………..13-14
What are the challenges faced by Offline Travel Agency ?……………………………………………………..………14-15
7 P’s Of Marketing Strategies………………………………………………………………………………………..………………….…15-16

CONCLUSION ………………………………………………………..………………………………………………………………………17

REFERENCES …………………………………….….………………………………………………………………………………………………18

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 INTRODUCTION

The travel and tourism industry is one of the largest and most dynamic industries in the
world. Travel agents and tour operators play an important role in the promotion and
dissemination of tourism.
For many years the tourism industry has contributed to the product and service through
intermediaries / various channels. In addition, advances in technology have brought
significant changes in the tourism industry. As technology / mobile devices improve and
there applications, a wide range of possibilities are offered for the travel industry.
A travel agency is a retailer or public service that provides travel related services to the
consumer, such as airlines, hotels, railways, travel insurance, and tour packages.
Travel agents help tourists through information about the destination and help them make
the best possible travel arrangements. They provide information on the destination and
make arrangements for tourists. Travel agents are also the primary source of booking.
Travel agents also promote the destination. For those traveling, international agents also
provide the necessary documents (passport, visa and etc.) and exchange rate information
for the customer's rules.
Travel agents, who work primarily for tour operators and other travel arrangers can help
develop, organize and sell the company's own package tours and travel services. They
can promote these services, which are using telemarketing, direct mail, and the Internet.
They make presentations for social and special interest groups, arrange ad appearances,
and recommend company-sponsored trips to business managers.
Today, travel agencies are recognized as an important component of travel and tourism
and have become an integral part of the travel and tourism industry globally. They
account for more than 90% of international and 70% of domestic tourist traffic. In
addition, more than 60% of all travel agency revenue is derived from business travel.
Most travel agencies sell both commercial and leisure trips but there are many travel
agencies that specialize in only one sector or the other.
The operation of each travel agency is based on the scope of its activities and
organizational size. In this chapter, we will discuss the functions of a large travel agency
that undertakes all types of activities such as retail TA, overall sales and tour services.

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 A BRIEF HISTORY OF TAAI AND ITS GROWTH

What is TAAI?
The "Travel Agents Association" (TAAI) of India was formed in the year 1951 by a
group of twelve leading travel agents who realized that it was time to form an association
to regulate the travel industry in India through organized lines. Has arrived and according
to sound business principles.
The primary objective was to protect the interests of those engaged in the industry,
promote its orderly growth and development, and protect the traveling public from
exploitation by unscrupulous and untrustworthy operators.

In the following years, the membership of the association has grown from the original 12
to about 2500 active, Associate, Allied, Government and Non-Resident affiliated about
2500 members.

• Apply superior technical skills on hands.

• Deliver the highest quality of service.

• Act responsibly within sound financial parameters.

• Build confidence and credibility in the market.

The symbol TAAI is the enforcement of reliable and professional service.
Aims and Objectives

• TAAI Travel is conscious of the public interest and maintains high ethical
standards within the travel business.

The purpose of TAAI is to continuously improve the standard of service and

professionalism in the industry with a view to developing the travel and tourism
industry in India to cater to the needs of travelers and tourists from India and
abroad.

• TAAI, as an inn, is engaged in promoting mutual cooperation between various

sectors of the travel and tourism industry, by contributing to the sound progress
and development of the industry.

TAAI activities
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 • TAAI serves as a powerful platform for the interaction of ideas and experiences.

Activities of TAAI
• TAAI serves as a powerful platform for the interaction of ideas and experiences.
• TAAI helps to promote, sustain and stimulate the growth of travel and tourism in
the industry.
• Educates and equips members to meet tomorrow's challenges through TAAI
conferences and seminars.
• TAAI attracts the attention of the controlling and regulatory authorities in the
country and discusses industry problems with them and works for the survival and
betterment of its members.
• TAAI maintains close contact with world bodies and represents matters affecting
the country's travel and tourism industry.
• TAAI collects useful information on travel and tourism and disseminates the same
to its members for their guidance.
• TAAI helps in developing better understanding among various sectors of the travel
industry and brings them under the fold by providing membership under different
categories.
• TAAI promotes brotherhood among its members.

WHAT DO YOU MEAN BY TRAVEL AGENCIES ?

➢ A travel agency and tour operator are major components of the travel trade
industry.
➢ Or a travel agency can be an individual, a firm, or a company that arranges and
sells potential tours in relation to travel tickets, travel documents, transportation,
accommodation, entertainment, insurance, foreign exchange and other travel
services from major companies. .

TYPES OF TRAVEL AGENCY: [ON THE BASIS OF BUSINESS

MODEL]
A. Online Travel Agency
B. Offline Travel Agency

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1. Online Travel Agency
Online travel agency serving customers through worldwide web channels. The
online travel agency is a relatively recent innovation and a major growth area in
the global delivery system. Online travel agency is a form of distribution
mechanism where a large number of sellers and buyers are connected through a
web site provided by an independent third party.
Example: lastminutes.com

2. Offline Travel Agency

The type of travel agency is the oldest form of travel agency, typically, offline
travel agencies work to cope with physical offices and customer service / product.
E.g.: Cox and Kings

The Advantages and Disadvantages Of Online Travel Agencies

Advantages of Online Travel Agencies

• It is a low cost method for inventory.
• Online travel agency will invest in marketing and advertising to
attract customer.
• The online travel agency maintains a positive online experience for
the client.
• Online travel sites are popular with customers who stay to compare
adjusted costs and services.
• Online travel sites give bookings confidence to the new customer.

Disadvantages of Online Travel Agencies

• Online travel agency charge commission (10-20%) on each sale.
• Few terms and conditions have been imposed by online travel agency.
• You may need to manage room availability at a range of online travel agency.
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• Use of online travel agency does not reduce the need for your own website with
booking engine.
• You may still need to invest in a balanced multi-channel marketing strategy.

The Advantages and Disadvantages of Offline Travel Agencies

Advantages of Offline Travel Agencies

• In offline travel agency as customers can see the agent, interaction between
them is encountered.
• The customer can openly share his needs and requirements to the agent.
• Customers can change the tour package if they wish.
• Trustworthy as an offline travel agency.
• They provide a good service and product to the customer.

Disadvantages of Offline Travel Agencies

• The growth of offline travel agency has been reduced with the emergence of
online travel agency.
• The client compares the price of the online travel agency.

The Strategies To Increase Revenue For Online Travel Agencies

• They should have a good website. It is very important to be a good and

attractive and user.
• One of the most popular selling techniques for online travel agencies is the
use of social media, having a great website is not enough. Travel agents may
also have to obtain.
• They should provide the best package to the customer. They can also
promote special seasonal packages, announce hot deals from airlines, and
they can try to give the best price to the customer.
Selling travel packages online is a new trend.
• The simplest thing to do to increase revenue from the customer is that they
offer an "added value" to their experience because they agree to pay the
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 price for the tour if you give them something more than the offer Then they
will be happy.
• People who like to travel while the whole trip makes videos and clicks and
share photos.
• You can also ask your customers to share these experiences with you and
then all experiences can be shown on your website and also on social
channels.
• The practice of checking reviews before booking is becoming common.
Customer reviews can help improve your sales.
• The most important way to increase revenue is to know your audience and
customer properly. They should first try to understand their customer's
needs. Then only you can fulfil their needs and satisfy them with your
product and services.
• Create a blog on which the customer can read about all the beautiful
destinations of your travel agency.

One Of The Most Popular Website

Make My Trip
Make My Trip Limited is an Indian online travel company founded in 2000.
Headquartered in Gurugram, Haryana, the company provides online travel
services including flight tickets, domestic and international holiday packages,
hotel reservations, and rail and bus tickets. As of 31 March 2018, they have 14
company-owned travel stores in 14 cities, over 30 franchisee-owned travel
stores in 28 cities, and counters in four major airports in India. Make My Trip
has offices in New York, Singapore, Kuala Lumpur, Phuket, Bangkok, and
Dubai.

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 Make My Trip Limited

Traded as NASDAQ: MMYT

Industry Online travel

Founded 2000

Founder Deep Kalra

Headquarters Gurugram, Haryana

India

Area served Worldwide

Products Booking flights, hotels, holidays, buses, trains and cars

Revenue US$ 675.26 Million (2017-18)

Number of employees 3051 (March 2018)

Website www.makemytrip.com

Source: Wikipedia

Products And Services

Make My Trip offers flight tickets, rail and bus tickets, cab services and hotel
booking services on its portal. In 2012, Make My Trip launched travel mobile
applications for Windows Phone, iPhone, Android, and Blackberry devices.
The Make My Trip Route Planner provides all the basic essential information
on over a million routes in India.

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 Functions Of Travel Agency

➢ They must travel provide the travel information to the customer before visiting the
place.
➢ The travel agents do the ticket booking.
➢ They make the itineraries for the tourists.
➢ They do the planning and costing of the tour which is the most crucial part.
➢ As they also provide with Foreign Exchange and Insurance.
➢ They give the information to the customers that, while travelling they much carry
all the required documentations.
➢ Side by side they also promote the destination too.

Sources Of Income For Travel Agency

• Travel agencies and tour operators derive their revenue from fees or commissions
primarily by producers of basic services or by paying a mark-up amount on top of
customers' fees or the purchase cost of original services.
• Therefore, the activities of travel agency and tour arrangements can be considered
as a type of delivery services or margin services (in selling travel services).
• Today, travel agencies and tour operators are also known as manufacturers of
tourism product i.e. tour packages. They develop their product by combining
different materials according to the client's / market requirements and offer it under
their own price tag.
• Sources of revenue depend on the size or structure of the travel agency or tour
operators.
• The commissions earned by a travel agency always depend on their relationships
with the major suppliers, and this in itself often depends on the amount of business
placed annually with that major supplier.
• In the last 20 years, travel agencies and tour operators have also attempted to
supplement their income through commissions on such things as foreign currency,
visas - passport processing fees and foreign telephone cards.
• Business travel is one of the fastest growing segments as a source of revenue
generation for travel agencies.

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• In addition, large-scale travel agencies and tour operators are focusing on all types
of tourism related activities such as travel insurance and currency arrangements for
tourists.
• Internet and its impact on the business of travel agencies / tour operators has
changed the market environment i.e. the rise of online travel agencies.
• Therefore, the revenue sources of a travel agency depend on the size, structure and
operation of that particular organization.

What are the challenges faced by Offline Travel Agency ?

➢ One of the biggest challenges of offline travel agency is how to deal with
online travel agency.
➢ Online travel agency's entry into offline space is causing problems for
them.
➢ Travel The global online travel agency is rapidly expanding its channels /
network.
➢ Resistance to move away from manual and out dated process which leads
to errors and customer dissatisfaction.
➢ Massive documentation that can cause information loss.
➢ Difficulty dealing with today's technical survey and demanding
customers, inability to provide exceptional service and maintain
relationships.

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 ➢ There is limited market access due to multichannel marketing strategy
and lack of brand awareness.
➢ Lack of transparency and dissemination in Trans par services.
➢ Product and pricing information is not available to customers /
customers.

7 P’s Of Marketing Strategies

4 P’s (Marketing Mix) + 3P’s (Service Marketing)

PRODUCT PEOPLE
PLACE PROCESS
PRICE PHYSICAL EVIDENCE
PROMOTION

1. PRODUCT- Product refers to the goods and services offered by the

organization. It can be described as a bundle of benefits that a marketer
offers to the customer for a particular price. A product can also take the
form of a service, like a travel ticket to a hotel booking. Thus, the term
product refers to the goods and services offered by the organization for sale.
2. PRICE- It is the amount charged for a product or service. Pricing is a very
important decision area as it has an impact on the demand for the product
and also on the profitability of the firm. There are many factors such as
demand, cost involved, consumer and ability to pay, prices charged by
competitors, government taxation, etc.
3. PLACE- The production of goods is sold to the consumer for which a
convenient location is to be fixed. This may include a range of distributors,
vendors and retailers such as individuals and founders who are a part of the
firm's distribution network. It is the organization that has to decide whether
to sell directly to the retailer or through distributors or wholesalers. It can
even plan to sell directly to customers.
4. PROMOTION- Promotion is an important component of the marketing
mix and refers to the process of informing, persuading and influencing the
consumer to choose the product to be purchased. Promotion is done through
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 personal selling, advertising, promotion and sales promotion. This is mainly
done for the purpose of providing information to potential consumers about
the availability, features and usage of a product.
5. PEOPLE- People refer directly or indirectly to all people who consume a
service such as employees or consumers. It is an essential component to any
service provision utilizing appropriate staff and people. It is necessary to
recruit the right employees and train them properly in the delivery of their
services if the organization wants to achieve a competitive advantage. The
attitude and behaviour of service personnel can significantly affect
consumer perception of service quality, which influences future purchasing
decisions.
6. PHYSICAL EVIDENCE- This is the element that again allows the
consumer to decide on the organization, it relates to the environment in
which the service is provided and the tangent that helps to communicate and
perform the service. This includes hotel brochures, letter heads, business
cards, appliances, furnishing, lighting, layout and decoration as well as the
presence and attitudes of its employees will affect customer perceptions of
service quality and experience.
7. PROCESS- It refers to the systems used to assist the organization in
providing service. Since services are performed or performed with or for
customers, they usually include steps and sequence of activities. Due to the
ambiguity of the services, the management of the process factor is
necessary, which means that the services cannot be stored, reused or
returned.

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 CONCLUSION

In conclusion, the marketing stimuli discussed in this research have great influence in the
consumer decision making process. Some of them may be of more value to online travel
agency clients such as price and location. Some may be more appreciated by traditional
travel agency buyers such as people, physical evidence and process. Through this study,
we perform marketing tasks differently for different travel agency types, although they
are similar to each other in the same industry. For example, price factors may be more
influential for online customers while physical evidence has a greater impact on
traditional buyers' decision making.

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 REFERENCES

➢ https://www.phocuswire.com
➢ www.diva-portal.org
➢ https://sagittarius.agency
➢ www.travolution.com
➢ https://www.quora.com
➢ https://kaptio.com
➢ https://travelshift.com
➢ https://blog.travelcarma.com
➢ https://en.m.wikipedia.org

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