THE BUSINESS

OF
TRAVEL & TOURISM

WHAT IS TOURISM?
THE MOVEMENT OF PEOPLE
OUTSIDE THEIR NORMAL PLACE
OF RESIDENCE
FOR MORE THAN 24 HRS AND
LESS THAN 6 MONTHS
WITHOUT ANY ECONOMIC
ACTIVITY
- WTO Definition

A big business!!!!!.....

Airlines (international/domestic)
Tours-outbound, inbound, domestic
Car rentals
Forex
Business travel (MICE)
Special interest tourism
National and international tourism organisations
Cruises
Insurance companies
Railways
Event management companies
Online companies
Hotels
Travel journals
Visa services
Miscellaneous

Structure of the industry

objectives
vision, mission, product, profit,
Growth, goodwill, success.
factors
External

Internal

External factors:
1) Govt. regulations
2) Economic policy
3) Political changes
4) Legal scenario
5) Calamities
6) Consumer behavior

FACTORS AFFECTING TOURISM

Internal factors

1.geographic factors
2.socio-economic factors
3.competition
4.A S of tourism.

THE 5 As OF TOURISM
1) ACCESSIBILITY
2) ACCOMMODATION
3) AMENITIES
(Natural / Man made)
4) ATTRACTIONS
(Natural / Man made)
5) ACTIVITIES

GROWTH OF TRAVEL & TOURISM

BASED ON:
1) QUALITY
2) TYPE OF SERVICE
3) SOCIO ECONOMIC FACTORS:
Income
Mobility
Age
Education
Cost

REASONS FOR GROWTH

Increase in leisure activities
especially in
developed countries
Better transport network
Upward growth in international travel
Reasonably priced packages + Good connectivity
Relief from adverse climate of the home country
Travel as a status symbol
Increased conferences and
conventions
Increased price effective
educational
facilities
Aggressive publicity

OPERATIONAL REQUIREMENTS TO
RUN A TRAVEL COMPANY / AGENCY

Well Trained Staff

Staff Compensation
Updated Technology
Knowledge of Trends & Issues
Good Inter-Personal Skills
Customer Friendly &
Attractive
Products
Good Negotiation Skills
Updated with Changes
Creativity
Variety of Services

TRAVEL INDUSTRY SEGMENTS

PRIMARY SEGMENTS
Airlines
Travel Agents
ANCILLARY SEGMENTS
Hotels
Car Rental
Railways
Foreign Exchange Bureaus
Sightseeing Services,
Entertainment Facilities

TRAVEL INDUSTRY SEGMENT

CATEGORIES
A SUPPLIERS
Provides the services & products
Hotels, Car Rentals, Railways etc.
B WHOLESALERS
Provides the products in bulk
C RETAILERS
Sells the services &
products to the public
Is a supplier to the airlines
& wholesalers

AIRLINE REPRESENTATIVES
1) GENERAL SALES AGENTS (GSA)
Representative office of one airline in a
foreign country
Performs promotional, reservation and other
services for a fee / commission
Gets more commission (over IATA
commission)
Identified by loyalty to that airline
Appoints agents to sell tickets
2)

PASSENGER SALES AGENT (PSA)

All IATA approved agents
Represents all airlines
Operates as per Sales Agency Rules
Only ones who receive commission
IATA Airlines

from

AIRLINE REPRESENTATIVES
3) TRAVEL AGENTS
Bridge between the airline & traveller
Interdependancy with Airlines for
commission & sales
IATA Approved Agents v/s Sub Agents
Ticket Stock
IATA Logo

SERVICES OFFERED BY TRAVEL

AGENTS

Selling International Tickets

Providing Visa Services
Passport Assistance
Foreign Exchange
Domestic Tickets
International &
Packages
Settlement of Accounts
Insurance
Travel Information

Domestic Tour

HOTELS
CATEGORIES
Range from Tourist Class to 5 * Deluxe
TYPES
Airport Hotels
All-suites
Boutique Hotels
Conference Centres
Convention Centres
Extended Stay
Limited Service
Motels
Resorts
SPAs

HOTELS
DEPARTMENTS
Operations

Front Office

Housekeeping

Kitchen

Laundry
Sales & Marketing
Travel Desk

Travel Arrangements

Car Rentals

Short Sightseeing

Cultural Shows

Forex
WORKINGS
Commission to Travel Agents bookings through CRS
Tie-Ups with Airlines & Corporates
Special deals on Bulk / Advance Bookings

LAND TRANSPORTATION

CAR RENTALS
Hertz
Alamo
Wheels

FACILITIES
Pick Up & Drop Facility
Chauffeur Driven
Self Driven
WORKINGS
Some can be booked
CRS systems
Tie up with Airlines &
Agents on a

through
Travel
commission basis