Definition and Classification of Travel Agency.pptx

Definition and Classification of Travel Agency.pptx

• 1.
  TRAVEL AGENCY & tours MD. ABUSAYEED KHAN Presented By
• 2.
  Tour “A tour inwhich one returns to the starting point, a circle trip usually made for business, leisure or education during which many destinations are visited and for which a tour programis actually planned.” .
• 3.
  DEFINITIO N ● According toWTO (1993) “Tourism encompasses the activities of persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure , business and other purposes. ● According to tourism society of britain” tourism is the temporary short period movement of people to destinations outside the places where they normally live, work; and activities during their stay at these destinations.” This definition includes movement of people for all purposes.
• 4.
  Tourism as an Industry ●Today, tourism has been widely recognised as a global industry. However, recognising tourism as an industry is a debatable issue, because a few scholars are against it, whereas others consider tourism as an industry. ● Chadwich (1981) argues that tourism industry does not exist because it does not produce a distinct product. ● Kaiser and Helber (1978) opined that it is not properly an industry. opposing this view, a number of scholars
• 5.
  Tourism as an Industry ●Robinson (1976) believed that tourism is a dynamic industry; Smith (1988) and medlik (1988) , also accepted tourism as an industry; Wahab (1995) says that, “any product, whether tangible, or intangible, that serves to gratify certain human need should be considered as an industrial product and that if a bond of product unity exists between various companies and organisations in a way that charactersed their overall function and organisations in a way that charactersed their overall function and determines their place in in economic life
• 6.
  Tourism as an Industry Thus,the application of the term ‘ industry’ to tourism has also been justified because of the “ modern approach to the definition of industry as a group of companies/firms/organizations producing identical goods, i.e. which the consumer regards as being perfect substitutes for one another, although, they may be physically differed.
• 7.
  Structure of Tourism Industry BudgetOptions Regional and local Tourism Organisations Tourism Industry National Tourism Organisations Travel Trade Component/Sectors Lodging Cost Hotels Motels Resorts Other types of Accomodation Transportation Cost Air Rail Road Sea/Water Travel Trade Organisations Travel Agency Tour Operation Recreation and Entertainment organisations Ancillary enterprises Public/Private Service oraganisations Health Insurance Banking Finance Training and Development
• 8.
  Travel Trade Intermediaries Travel AgencyTour Operators Retails Wholesale Inbound Tour Operators Outbound Tour Operator Ground Operators Domestic Operators
• 9.
  Travel Agency Travel agency isone of the most important organization in the tourism private sector which plays a significant and crucial role in the entire process of developing and promoting tourism in the country or at the destination. It is a travel agency which packages and processes all the attraction, accesses, amenities and ancillary services of a country and presents them to the tourists. It may also secure travel insurance, foreign currency for the traveling people.
• 10.
  Travel Agent A travel agentis a professional that specializes in assisting customers with planning, booking, and organizing travel arrangements. This includes offering services such as booking flights, hotels, car rentals, tours, and other travel-related activities. Travel agents often provide advice on travel destinations, offer packages, and help navigate travel requirements, such as visas and insurance.
• 11.
  Historical Perspective 1855 Mr. Cookstarted operating package tours. He conducted the world’s first international tour from England to the Paris. This was an ‘inclusive tour’ . In this way he developed the concept of ‘inclusive tour’. In the next year he developed the concept of the ‘Grand Tour’ by organizing a grand tour to the European continent. 1878 In order to eliminate payment in cash, Mr. Cook introduced two systems: ● Traveller Cheque ● Hotel Vouchers While American express introduced ● Credit Cards ● Traveller Cheques 1880 Thomas Cook and Sons, established offices in Mumbai and Calcutta and formed the ‘Eastern Princes Department.’ in 1887, this department arranged the visit of Indian Princess to Queen Victoria’s Jublee Celebration. Till 1920, Thomas Cook and Sons and the American Express Company were the only big names in travel trade business.
• 12.
  Types of TravelAgencies Retail Travel Agencies A retail travel agency sells tourist products directly to the public on behalf of the product suppliers and in return gets commission. Some package tours are sold in two ways i.e. , on a commission basis and up price. When a travel agency sells a tour on marked up price it means that first it mark up the cost of a tour and then sell it at a higher rate. The mark up price is the difference between retail price and whole sale cost. The main source of revenue for a retail travel agency is the commission. Wholesale Travel Agencies These agencies are specialized in organizing package tours, which are marketed to the customers/ tourists through the network of a retail travel agency or directly to the prospective clients. A wholesale travel agency purchase tourist product components in bulk and designs package tours.
• 13.
  Types of Tour Operators  InboundTour Operators  Outbound Tour Operators  Domestic Tour Operators  Ground Operators
• 14.
  Inbound Tour Operators Theseare also known as incoming tour operators. Technically, the operators who receive guests, clients/ tourists and handle arrangements in the host country are called inbound tour operators. For example a group of American tourists is coming through TCI ltd. to India and the company makes arrangements and handles the group in India then TCI is called an inbound tour operator.
• 15.
  Outbound Tour Operators Tour operatorswho promote tours to foreign destinations, my be business tours or leisure tours are called outbound tour operators. Bangladesh’s outbound tourist traffic is growing at a rate of 10 per cent annually. However, Bangladesh’s outbound tourism is mainly holiday oriented.
• 16.
  Domestic Tour Operators Domestic touroperators are those who assemble, combine tourist components into inclusive tours and sell it to the domestic travelers. In general, these tour operators provide travel services within the tourist’s native or home country. The domestic tour operators operate within the boundary of home country and offer package tours to the travelers viz. Domestic inclusive tours or independent tours.
• 17.
  Ground Operators These arecommonly known as handling agencies and their main function is to organize tour arrangements for incoming tourists on behalf of overseas operators. When a tour operator himself promotes beach holidays, wildlife holidays, adventure tours, heritage tours, cultural tours at different places, the difficulty arises.
• 18.
  Travel Agency Intermediaries Travel Agency Transport road rail Educational Institutions Insurance Cost Govt. DOT Cultural & Entertai nment Airlines Domestic- international Tourism Association Hotels Motels Resorts Cruise CostTour Wholesalers Banking Companies Foreign Travel Cost Ministry of Ex. Affairs
• 19.
  Any Quires!
• 20.
  you! THANK Thank you foryour attention.