Introduction

to
Travel & Tourism Industry

Where partnerships are a way of life

Travel Projects

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 The Travel & Tourism Industry - Overview
 Travel and tourism is one of the world’s largest industries
 Highest (30%) service sector exports.
 763 million international tourists arrivals worldwide growth 10.7%.
 623 billion US$ international tourism receipts, growth 18.8%
Market share –
Tourists arrivals growth 04/03 arrivals receipts
 Europe – 54.5 % 5.0% 52.4%
 Asia & pacific – 20 % 27.9% 20.1%
 Americas – 16.5 % 11.2% 21.1%
 Middle east – 4.6 % 18.0% 3.4%
 Africa – 4.4 % 8.0% 2.9%

Source : WTO tourism highlights - 2005 edition

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The Travel & Tourism Industry - Overview
 Why people travel ?

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The Travel & Tourism Industry - Overview

 Top 5 Spenders & Arrivals – International Tourism

 Top Spenders
 Germany 11.4%
 US 10.5%
 UK 9.0%
 Japan 6.1%
 France 4.6%

 Top Arrivals
 France 9.8%
 Spain 7.0%
 US 6.0%
 China 5.5%
 Italy 4.9%

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The Travel & Tourism Industry – Forecast

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The Travel & Tourism Industry

 It is also one of the most fragmented Industries

 Gives a high multiplier effect to the economy.

 The two aspects of the industry can be viewed separately,

as many of the players are involved in both

 Travel Industry

 Tourism Industry

 Let’s look at each part of the industry on its own

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Travel Industry

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Distributors

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Distributors

The people, groups or firms that deliver the products

and services of travel to consumers.These include:
 Travel agents (business and leisure)

 Travel operators selling direct to the consumer

 Travel operators selling on the Internet

 Call centres handling customer service

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Regulatory Bodies

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Regulatory Bodies

Organisations set up to oversee the industry, either :

 Trade associations such as ABTA (Association of British
Travel Agents), TAAI (Travel Agents Association of India)
Federation of Associations : TAFI (Travel Agents
Federation of India) PATA (Pacific Asia Travel
Association),
or
 Statutory bodies such as the CAA (Civil Aviation
Authority) DGCA (Director General of Civil Aviation)

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Public Sector Organisations

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Public Sector Organisations

Government departments with responsibility for the

industry:

 Department Of Tourism (DoT)

 Department for Culture, Media & Sport
 ITDC – India Tourism Development Corporation
 Department of Tourism of Various States

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Transport

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Transport

Delivery of travel products and services by:

 Road
 Air
 Sea
 Rail

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Other Industry Players

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Other Industry Players

Insurance firms and car hire companies:

 Insurers provide cover for goods, services and people

 Car hire providers meeting onward travel needs of
business and leisure customers

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Tourism Industry

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Accommodation, Tour Operators & Distributors

Providing the ‘nuts and bolts’ of the industry:

 Hotels, villas, apartments, B&B, camping parks
 Packages of travel tours to popular locations
 Selling the travel product/service to individual and
business consumers

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Tour Operators

Four dominant firms

 TUI (Thomson)
 First Choice
 Globus / Cosmos
 Thomas Cook

All vertically integrated, operating at more than one level

in market

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Tour Distributors

Usually includes business and leisure travel agents:

 Some large and well-known

 Some small and independent

 Others in niche parts of market

Can you think of examples of each?

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Tourism Agencies

Tourist boards and offices:

 World Tourism Organisation (WTO) – UN Agency; global
forum for tourism policy issues & practical know-how.
 Promoting Country to overseas customers (e,g India –
Visit India Campaign; Singapore – Uniquely Singapore,
UK – Visit Britain)
 Promoting regions of the Country to overseas and
domestic customers (Visit Ireland; visit Goa; Visit etc)
 Providing information to customers (Tourist Information
Centres)

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Conference/exhibition Organisers

 The importance of location

 Value and service at venues
 The role of sponsorship
 Customer care

E,g ITPO – Pragati Maidan Delhi

Hanover Messe – Germany
Suntec city - Singapore

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Regulatory Bodies

 Consortium of independent tour operators

 Federation of tour operators

 Regional development agencies (RDAs)

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Other Industry Players

 The Tourism Alliance represents industry views to the

government
 IATA – International Air Transport Association.
 Other firms in industry, such as insurance companies and
car hire firms

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Travel Jargons:
ATPCo – Airline Tariff Publishing Company. It is basically a single
source of distributing the airline fares into different GDS for auto-
pricing
Purposes.

GDS – Global Distribution System. GDS is a system which

receives the information from different vendors on different
products and distribute them.

CRS – Central Reservation System. It receives information from

only single vendor and is used to book/sell the product of that
particular vendor.

Origin – Point of departure in a itinerary

Destination – Point of arrival in a itinerary

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Published Fare – A fare published by IATA applicable between a
origin and destination.

Negotiated fare – A fare which is valid and distributed to specific

travel agents and which is normally cheaper than normal
published fares.

Net Fare – It’s a net amount which airline requires from a travel
agents. A travel agent can earn any mark up on top of that as
“service fee”.

Commission Fare – It’s a maximum amount which a travel agent

can charge from a travel agent and it goes directly to the airline
and then airline returns the commission amount to the agent as
agreed

Mark-Up – Its kind of service fee charged by the travel agents

added in the Net fare amount.
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PPPN – Per person per night. Rooms rates are calculated on the
basis of per night stay. Pricing Airline – It’s the airline of which the
fare is charged and document is issued for a journey.

OW journey – When the pax starts from one country and does not
return to the same country.

RT journey – When the pax starts from one point and returns to
same point is called RT journey.

PAX – Passenger

CXR – Airline

Property – In hotel industry a hotel is called as “property”

Ticketing – Once a booking and payment has been made, TA

needs to issue a ticket to travel that issuing ticket process is called
ticketing.

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ARNK – Arrival not known

BSP – Banker’s settlement plan

GSA – general sales agent

MPM – It’s the maximum permitted mileage which a pax may travel
from one origin to destination

SSR – Special service request like – wheelchair etc.

RBD – Reservation booking designator

Cabin class – Class of service (First/Business/Economy)

Direct Flight – When there is no ticketed point between origin and

destination then it is called a direct flight. A direct flight may stop at
the en route point for technical purposes or hopping purposes.

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IATA – International Air Transport Association

BSP – Billing and Settlement Panel

Inventory System – Where the availability and schedules are

managed.

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