Module 4

IATA Facilities for Travel

Agents
 Module Contents
4.1 Travel Agencies
4.2 Tour operators
4.3 IATA Strategic Partnership Program
4.4 IATA accreditation for Travel Agents
4.5 Billing and Settlement Plan (BSP)
4.6 Training and Development of Travel
agents
​4.7 Global Distribution System
 Travel Agencies
A travel agency is a private retailer or public service that provides travel
and tourism related services to the public on behalf of suppliers such
as airlines, car rentals, cruise lines, hotels, railways, and package tours.

Travel Agencies
provide services to

Leisure Business Sports General

travellers travellers travellers Sales Agents
 History of Travel agencies
First Steamship Agent

In the year 1822, Robert Smart a resident of Bristol, England,

was the first steamship agent of all time.

His first operation was booking passengers on steamers to

various ports in Bristol Channel and Dublin, Ireland.
 History of Travel agencies
The First Travel Agency to Organize a Train
Tour

During 1841, Thomas Cook embarked

on a special train from Leicester to
Loughborough (England). The train
trip was a 12-mile journey.

After the success of the first train tour,

on the same year on 5th January,
Thomas Cook has arranged a train
which carried 570 passengers on a round
trip. The train trip costs 1 shilling per
passenger.

This is believed to be the first public

train tour that is advertised to the public.
 History of Travel agencies
The First Travel Agency to Organize a Train Tour.

In 1843, he organized a trip from

Leicester to Derby in England;
on this tour he carries 3000
school children. During this
year, it was the largest group
tour.

Therefore, Cook came to be

known as the first representative
of a train travel agent.
Since then, Thomas Cook’s idea
has alarmed and his effort to
organized a train tour spread
across the world.
 History of Travel agencies
The First Travel Agency to Organize a Train Tour.

Cook continued to provide a

train tour and later expanded
his concept to the United States
and around the world.

Due to his past efforts, the

company continued to be one of
the world’s largest travel
providers until its collapse in 2019.

Thomas Cook is remembered as the

world’s first organized travel agent
but also the founder of the travel
and tourism business as it is today.
 History of Travel agencies
Individual Inclusive Travel

In the history of travel agency,

Thomas Bennett was the first
person to specialize in individual
inclusive travel.

To visit the British notables,

Bennett often organized an
individual tour in Norway.
Gradually, he established the
business as a “Trip Organizer” in
1850

Apart from providing the individual tour, Bennett arranges in

advance for the horses and hotel rooms for his customers.
 Types of Travel Agencies
Multiple
travel agents 

Types of
Travel
Agencies
Miniple Independent 
travel agents  travel agents 
 Types of Travel Agencies
Retail travel
agent 

Call Centre Business

travel agent travel agent
Types of
Travel
Agencies

Web Based Freelance

travel agent  travel agent 
Functions of a Travel Agency
Travel
Information
Ticketing

Planning and
Costing
Tours Functions
Preparation
of a of Itineraries
Travel
agency
Insurance
FOREX
Services

Liaison with
suppliers 
 Functions of a Travel Agency
Travel Information

A retail travel agency provides necessary

travel information to the general public.

Preparation of Itineraries

A travel agent advises the

potential tourist to choose the
most convenient course.
Functions of a Travel Agency

Liaison with suppliers

A travel agent should maintain

constant contact with the
providers of various services like
the transport companies, hotel
managers and providers of
surface transport like motor cars
from airport to hotel and for
sightseeing etc.
 Functions of a Travel Agency
Planning and Costing Tours

After the contracts and arrangements are finalized, there comes the task
of planning and costing tours, both for inclusive programmes and to
meet individual requirements.
 Functions of a Travel Agency
Ticketing

Selling tickets to tourists for different modes

of transport like air, rail and sea is a very
important function of a travel agent.

Provision of Foreign Currencies

Provision of foreign currency to an

intending foreign tourist is an important
function of a travel agent.

Insurance

Insurance for personal accident risks and risk

for loss of baggage is an important function of a
travel agent.
 Tour operators

A tour operator buys, These services are The packages are

or owns in some cases, then assembled sold via travel
a high volume of travel into packages for agents or through
services across carriers, purchase by the the phone and
accommodation and consumer. internet.
services.
 Types of Tour Operators
Inbound Tour
Operators

Ground Tour Outbound

Operators Tour
Types of Operators
Tour
Operators

Receptive Domestic
Tour Tour
Operators Operators 
 Tour operators
Types of Tour Operators

Inbound Tour Operators

Inbound tour operators bring tourists

into a country as a group or via
individual tour packages. 

They handle all arrangements in the host

country; and the types of tours they
curate are specifically for non-residents
touring the country.
 Tour operators
Types of Tour Operators

Outbound Tour Operators

Unlike inbound tour operators,

outbound tour operators work
within their countries to take
travelers to other countries. 

They are tour operators who market

their tours for international
destinations, either for business or
leisure travel.
 Tour operators
Types of Tour Operators

Domestic Tour Operators

Domestic tour operators are those

that put together inclusive tour
packages and sell them to domestic
travelers. 

In other words, they are tour

operators who provide travel
packages and tours within a tourist’s
native country.
 Tour operators
Types of Tour Operators

Receptive Tour Operators (RTOs)

Receptive Tour Operators (RTOs) provide

tourism products to tour operators in other
markets (as a business-to-business
relationship).

Specifically, RTOs sell tourism products,

whether they are sold in a tour package or
alone, to tour operators and/or travel agents.

They are essentially wholesalers and they

don’t sell directly to the public.
 Tour operators
Types of Tour Operators

Ground Tour Operators

Ground tour operators operate

domestically. 

They are however different from

domestic tour operators in that
they organize tours for incoming
tourists on behalf of an inbound tour
operator (and sometimes, outbound
tour operators).
 IATA Strategic Partnership Program

The Strategic Partnerships Program is a platform for aviation solution

providers to build as well as strengthen relationships with key industry
stakeholders.

Through their participation in various IATA work groups, Strategic

Partners gain a unique insight into airlines’ priorities and have the
opportunity to be recognized for working together with IATA in
serving the air transport industry.
 IATA Strategic Partnership Program

Position Gain

A Unique
Your company for
Benefits perspective into
success
airline priorities
of IATA
SPP
Promote Participate

Solutions that are critical In the development

to the future of the of new airline
aviation industry Interact initiatives

With global decision-makers

and other influential leaders
 IATA Strategic Partnership Program

List of current Strategic partners

https://www.iata.org/en/about/sp/partners-directo
ry/
IATA accreditation for Travel Agents

IATA accreditation, available for travel agents and cargo

agents, simplifies the business relationship between agents
and airlines, and gives airlines access to a worldwide
network of reliably certified and recognized agents.​
Two programs are available for
travel professionals seeking IATA
accreditation.

Accreditation for Accreditation for

travel agents Cargo Agents
 IATA accreditation for Travel Agents

IATA accreditation for travel agents

Full accreditation authorizes travel agents to sell international and/or

domestic tickets on behalf of IATA member airlines.

It also allows access to IATA’s Billing and Settlement Plan (BSP), an

efficient interface for invoicing and payment between the agent, airlines
and transport providers.
 IATA accreditation for Travel Agents

Cargo Accreditation
Any company involved in international ​air freight and complying with
appropriate license and legal requirements can be accredited.

As an IATA Cargo Agent, you'll have recognition of your financial and

professional competence. Airlines working with our cargo agents have
access to a worldwide distribution network of approved agents to sell their
product.​
 Billing and Settlement Plan
BSP is a system designed to facilitate and simplify the selling, reporting and
remitting procedures of IATA Accredited Passenger Sales Agents, as well as
improve financial control and cash flow for BSP Airlines.
Sales

Agent IATA BSP Supplier

Commissions

Being a truly worldwide system, there are BSP operations in some 180
countries and territories.

The system currently serves more than 370 participating airlines with an on-
time settlement rate of 99.999%. In 2017, IATA's BSP processed $236.3
billion.
Billing and Settlement Plan
 Billing and Settlement Plan
Benefits of a BSP
Simplification
•Agents issue one sales report and
remit one amount to a central point
•Airlines receive one settlement
covering all agents
•Simplifies and reduces work
through the use of electronic
ticketing on behalf of all BSP
Airlines
•Agents’ sales are reported
electronically
Savings
•Less resources required for billing
and collection
•Electronic distribution of billing
reports and generation of debit/credit
memos
Enhanced Control
•Increased financial control thanks to
centralization and grouping
•Consolidated document flow, permitting
accelerated quality controls
•Overall process monitoring by a neutral
body
 Billing and Settlement Plan
Participation in a BSP

IATA General
Accredited Sales Agents
Agents

Airlines Airport
Handling
Agents
 Training and Development of Travel
agents

Over 200 million people work in the travel and tourism

industry worldwide.

IATA travel and tourism training is designed to give them the

skills and knowledge to maximize their career opportunities
in this rapidly expanding industry.
 Training and Development of Travel
agents
From entry-level travel agent basics to senior management for
agencies or tour operations, each course leads to an IATA
qualification, recognized internationally by the travel
industry.

List of IATA Training Courses:

https://www.iata.org/en/training/su
bject-areas/travel-tourism-courses/
 Global Distribution System
A Global Distribution System, or GDS, is
a computerized network that facilitates
transactions between travel service
providers and travel agents

The first GDS, called the Semi-Automated Business

Research Environment, or Sabre, was developed in
collaboration between IBM and American Airlines
with the express purpose of automating the airline’s
internal reservation system.
 Global Distribution System
GDS allows agents, both human and technological

Review Compare Compare Make purchases

Information Schedules Prices to and from vendors

in real time to quickly and efficiently create an itinerary

for their clients.
END OF MODULE