BSC TTM Sem-3 Travel Agency Management and Tour Operations u-3pdf

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Bsc.TTM avel Agency Management and ur Operations Course Code: BTT 111 Semester: Third SLM UNITS : (write units covered in E- Unit: lesson from normal syllabus) www.cuidol.in BTT-111 All right are reserved with CU-IDOL

TRAVEL AGENCY MANAGEMENT AND TOUR OPERATIONS OBJECTIVES INTRODUCTION Student will be able to :  In this unit we are going to learn about the Understand the Difference between Travel Agency Difference between Travel Agency and Tour and Tour Operators Operators Analyze the Roles of Travel Agency and Tour  Under this unit you will also understand th Operation Business Roles of Travel Agency and Tour Operatio Understand the Process for Approval of Travel Business Agency Business in India  This Unit will also make us to understand Process for Approval of Travel Agency Business in India . www.cuidol.in BTT-111 INASllTITriUgThEt aOrFeDreISsTeArNveCdE AwNitDh OCNUL-IIDNOE LLE

TOPICS TO BE COVERED > Difference Between Travel agency and Tour Operators > Roles of Travel Agency and Tour Operation Business > Process of Approval of Travel Agency Business In India www.cuidol.in BTT-111 All right are reserved with CU-IDOL

ference Between Travel ents And Tour Operators www.cuidol.in BTT-111 https://wallpaperaccess.com/travel-agenc 5 All right are reserved with CU-IDOL

Differentiation Between Travel Agency And Tour Operator A travel agent is a person who has full knowledge of tourist product – destinations modes of travel, climate, accommodation, and other areas of the service sector. He acts on the behalf of the product providers/principals and in return get a commission. Tour operator is an organization, firm, or company that buys individual trave components, separately from their suppliers and combines them into a package tour which is sold with their own price tag to the public directly or through middlemen. Tour operators are like wholesalers and travel agents are the retailers. A tour operator makes the package holidays up and the travel agents sell them on. Tour operator taking up the bulk of the responsibilities and his fee is obviously much greater than a travel agent. www.cuidol.in BTT-111 6 All right are reserved with CU-IDOL

Differentiation Between Travel Agency And Tour Operator A tour operator has the responsibility to look after the finer details of a vacation o tour such as hotel, accommodation, meals, conveyance, etc. fference between Wholesale Travel Agencies and Tour Operators he wholesale travel agencies may offer or operate the package tours or may specialize in eveloping tours for inbound as well as outbound travelers. They are often referred to a ur operators, but these two essentially different: Wholesale travel agency does not sell directly to the public, while tour operators do sell directly to clients. A wholesale travel agency usually combines, assembles and contacts for existing travel services to formulate a new travel product she has his own one or more components of travel product i.e. ‘ inclusive tours.’ www.cuidol.in BTT-111 7 All right are reserved with CU-IDOL

Differentiation Between Travel Agency And Tour Operator Wholesale travel agencies are less inclined than tour operators to perform ground services i.e. handling agency or ground operators. A wholesale travel agency may deal with one component of travel product while a tour operator offers a variety of tour programmes. The size of the business is large in the case of tour operators in comparison to a wholesale travel agency. www.cuidol.in BTT-111 8 All right are reserved with CU-IDOL

Travel Agency – Role and Duties • Selling holidays and insurance • Meeting profit or sales targets • Preparing promotional materials and displays. • Advises clients regarding destinations, cultures, customs, weather and activities. • Collects payments, books travel arrangements and pays applicable fees. • Handles travel issues, conflicts, complaints, cancelations and refunds. • Builds and maintains relationships with travel and tour vendors. • Attends travel seminars and conferences. • Conducts research on destinations and industry trends. • Maintains accurate records of bookings, payments, transactions, phone calls and meetings. www.cuidol.in BTT-111 9 All right are reserved with CU-IDOL

Differentiation Between Travel Agency And Tour Operator Travel agents usually sell packages, they have bought from various tour operators. Tour operators look into all the aspects of a vacation, they plan almost each and everything. While, travel agents sell packages to their clients on the basis of where do their clients actually want to go. There are specialized tour operators as well. Dealing with specially one country at a time. But there's no specialization in the case of a travel agent. Some travel agents work directly with tour operators and provide the tour operator with the information of clients. A travel agent keep his profit. While, a tour operator keeps less profit than a trave agent. Many a people now prefer a tour operator rather a travel agent. 10 www.cuidol.in BTT-111 All right are reserved with CU-IDOL

Differentiation Between Travel Agency And Tour Operator Travel agent gets permit to work from the respective tour operator either private o public while travel operator acquires license from the regional ministry of tourism. Becoming a travel agent doesn't requires so much time as compared to the trave operator that needs more to sustain and grow in the competitive travel industry. There are proper training programs in order to pursue the career as a travel agen while travel operator needs the business management practices. Due to change in lifestyle and traits the focus of travel operators is more on the diversification of package while the focus of travel agents is more on the sale o package tours, hotel bookings, and traveling documents processing. The duties of travel agent are mostly services based that requires not too much investment while travel operator is required to invest in the business. www.cuidol.in BTT-111 11 All right are reserved with CU-IDOL

Differentiation Between Travel Agency And Tour Operator Tour operator is directly responsible to the regulatory authorities while travel agent is first responsible to the clients and then to the travel operator. In term of legality and liability, travel agent comes at first position to answer the clients while travel operator has secondary liability in this regard. There is no licensing system in case of travel agent while travel operator is required to get a license from the respective ministry of travel and tourism. He is also required to renew the license from time to time. Common types of tour operators are inbound tour operators, outbound tou operators, domestic tour operators, group operators and destination managemen companies. Wholesale and retail travel agent are the types of the travel agent. www.cuidol.in BTT-111 12 All right are reserved with CU-IDOL

Differentiation Between Travel Agency And Tour Operator The source of income of travel agent is commission and benefits that he get rom the travel operator. While travel operator earned by providing services to he clients and he also earned commission from the different companies by booking their services for the clients. Travel operator is the name of a full-fledged company in comparison to the ravel agent who only sells the tour operator's tours to the willing traveler or ourists. A travel operator can be the supplier of the services as well that he present to its customers. In that's way he doesn't work as commission agent for the services providing companies. While travel agent in all cases remains the distributor of hese services. Travel operator offers diverse kind of traveling and tourism programs while ravel agent tends to focus more on a specific area. www.cuidol.in BTT-111 13 All right are reserved with CU-IDOL

Process For Approval of Travel Agency Business in India Setting up a travel agency in India requires a high degree of skill and organizational capacity. It is necessary to obtain a number of recognitions and approvals to start a travel agency. The basic conditions need to setup a travel agency- • Experience in travel industry and liking for travel. • The agency is centrally located, preferably in a business area and easily accessible to the general public. A ground floor location is preferable. www.cuidol.in University Institute of Tourism & Hospitality Management All right are reserved with CU-IDOL BTT-111

•Should have been in business for at least one year and must demonstrate its desire and ability to promote travel in professional manner. •Have competent and experienced staff to quote fares and schedules, make reservations and issue tickets. •Attractive and appealing tourism office environment. •Have adequate finances. •Maintain ethical standards of business in its dealings with passengers or the principals. www.cuidol.in University Institute of Tourism & Hospitality Management All right are reserved with CU-IDOL BTT-111

• Be able to obtain the required Government licenses where applicable. • Have the approval of International Air Transport Association to represent member airlines. Separate recognition is required for passenger and cargo sales. This recognition is granted only for at least one year. • Have the approval of Indian Airlines to sell Indian Airlines tickets. Here again, separate recognition is needed for selling passenger tickets and booking air cargo on Indian Airlines • Have the approval of the Department of Tourism to claim publicity and promotional benefits for tour operators handling inbound tourists. www.cuidol.in University Institute of Tourism & Hospitality Management All right are reserved with CU-IDOL BTT-111

Approval for Travel Agency From Ministry of Tourism, Government Of India • The aims and objectives of the scheme for recognition of Travel Agent are to encourage quality standard and service in this category so as to promote tourism in India. This is a voluntary scheme open to all bonafide travel agencies to bring them in organized sector. • Definition : A Travel Agent is one who makes arrangements of tickets for travel by air, rail, ship, passport, visa, etc. It may also arrange accommodation, tours, entertainment and other tourism related services. www.cuidol.in University Institute of Tourism & Hospitality Management All right are reserved with CU-IDOL BTT-111

Rule for the travel agency: The following are the main rules prescribed by the DOT for the approval of travel agencies: 1) Application shall be in the prescribed form and shall be addressed to the director of tourism, minis tourism, govt. of India New Delhi. 2) The company has functioned successfully for at least one year. 3) Have minimum paid of capital. 4) Have an IATA license of GSA (general service agent) of IATA member airlines. 5) Has been approved by RBI to book foreign tourist. 6) Approved by ministry of external affairs to handle document, passports, visas and such another ite 7) Income taxes assess. 8) Registered under the local; shops and establishments. 9) Good professional reputation, at least one or two staff members should be from IATA and Dot recognized tourism educational institutional. 10) Recognized by airlines. 11) Approved by railways. 12) Prescribed fees for reorganization. 13) A travel agency must attach the audited annual report. www.cuidol.in BTT-111 All right are reserved with CU-IDOL

The applications form described by DOT. ontents 1) Name and address………………………………………………….. 2) Year of establishment……………………………………………… 3) Nature of business and year of commencement…………….……... 4) Types of business form…………………………………………….. 5) Name and address of directors/partner…………………………….. 6) Staff employed……………………………………………………... i) Qualification…………………………………………………….. ii) Salary/wages structure………………………………...………… iii) Experience………………………………………………………. iv) Length of service………………………………………………... 7) Name of bankers…………………………………………………… 8) Name of auditors…………………………………………………… 9) Auditor’s financial statement………………………………………. 10) Copy of income Tax no………………………………………. 11) Auditor’s financial statement………………………………… 12) Letters of approval from IATA………………………………. 13) Membership of professional travel trade organization such as IATA/TAAI/IATO/WTO/ASTA/PATA /etc…………………… 14) Sales turnover during last five years…………………………. 15) Steps taken to promote tourist traffic in the country……….... 16) Any other steps/activities…………………………………….. www.cuidol.in BTT-111 All right are reserved with CU-IDOL

The application for recognition shall be addressed to the Additional Director General, Ministry of Tourism. • The recognition as an approved Travel Agent shall be granted by the Ministry of Tourism, Government of India, New Delhi initially, for five years, based on the Inspection Report / Recommendations of a Committee comprising of concerned Regional Director and a member of TAAI. • The application for renewal/extension shall be addressed to the Regional Director of the concerned region www.cuidol.in University Institute of Tourism & Hospitality Management All right are reserved with CU-IDOL BTT-111

• The renewal / extension, thereafter, shall be granted for five years after Inspection conducted by a Committee comprising of concerned Regional Director and a member of TAAI, on an application made by the Travel Agent along with the requisite fee / documents. • The documents received from applicants after scrutiny in all respects will be acknowledged by the Travel Trade Division in respect of first approval and by the concerned Regional Director for renewal. The inspection for first approval / renewal shall be conducted by the Inspection Team within a period of sixty working days from the receipt of complete application. www.cuidol.in University Institute of Tourism & Hospitality Management All right are reserved with CU-IDOL BTT-111

• The following conditions must be fulfilled by the Travel Agency for grant of recognition by Ministry of Tourism. (a) The application for grant of recognition / renewal shall be in the prescribed form and submitted in duplicate along with the required documents. (b) The travel Agency should have a minimum Paid up Capital or (Capital employed) of Rs.3.00 lakh duly supported by the Audited Balance Sheet/ Chartered Accountant’s Certificate. c) The Travel Agency should have been in operation for a minimum period of one year before the date of application. www.cuidol.in University Institute of Tourism & Hospitality Management All right are reserved with CU-IDOL BTT-111

(d) The minimum office space should be at least 150 sq. ft for rest of India and 100 sq. ft for hilly areas which are above 1000 meters from sea level. Besides, the office may be located in a neat and clean surrounding and equipped with telephone, fax and computer reservation system etc. There should be sufficient space for reception and easy access to toilet facilities. (e) The Travel Agency should be under the charge of the Owner or a full time member who is adequately trained, experienced in matters regarding ticketing, itineraries, transport, accommodation facilities, currency, customs regulations and tourism and travel related services. www.cuidol.in University Institute of Tourism & Hospitality Management All right are reserved with CU-IDOL BTT-111

f) The Travel Agency should be an income-tax assesses and should have filed Income Tax Return for the current assessment year. (g) Disclaimer : The Travel Agency should employ only Regional Level Guides trained and licensed by Ministry of Tourism, Government of India and State Level Guides approved by the State Governments. The implementation of this clause would be subject to the decision of Hon’ble High Court of Rajasthan in Writ Petition No. 5607 / 2004 and other Hon’ble Courts. (h) For outsourcing any of the services relating to tourists, the travel agencies shall use approved specialized agencies in the specific field of activity. www.cuidol.in University Institute of Tourism & Hospitality Management All right are reserved with CU-IDOL BTT-111

• The Travel Agency will be required to pay a non-refundable fee of Rs.3, 000/- while applying for the recognition and renewal of Head Office as well as each Branch Office. The fee will be payable to the Pay and Accounts Officer, Ministry of Tourism, in the form of a Bank Draft. • The recognition / renewal will be granted to the Head Office of the Travel Agency. Branch Offices will be approved along with the Head Office or\\ subsequently, provided the particulars of the Branch Offices are submitted to Ministry of Tourism for recognition and concerned Regional Director for renewal and accepted by it. www.cuidol.in University Institute of Tourism & Hospitality Management All right are reserved with CU-IDOL BTT-111

• The Travel Agency so granted recognition / renewal shall be entitled to such incentives and concessions as may be granted by the Government from time to time and shall abide by the terms and conditions of recognition as prescribed from time to time by the Ministry of Tourism, Government of India. • The decision of the Ministry of Tourism, Government of India in the matter of recognition / renewal shall be final. However, MOT may in their discretion refuse to recognize / renew any firm or withdraw / withhold at any time recognition / renewal already granted with the approval of the Competent Authority. www.cuidol.in University Institute of Tourism & Hospitality Management All right are reserved with CU-IDOL BTT-111

Approval for a Travel Agency From IATA • The most important recognition a travel agent should possess is the IATA recognition. This enables an agent to make reservations and issue tickets on IATA member airlines. • It also enables the agent to claim his commission of 7% from the respective airlines, for issuing such tickets. • There are about 130airlines, which are members of IATA. The agency seeking IATA recognition has to meet stringent requirements and qualifications. www.cuidol.in University Institute of Tourism & Hospitality Management All right are reserved with CU-IDOL BTT-111

• Before a travel agency applies for IATA recognition, it should be functioning as a full-fledged travel agency for a minimum period of 9-12months. • An application has to be submitted to the Area Headquarters of IATA in Mumbai with detailed information regarding the company such as.  Background of partners or directors of proprietor and their staff.  Financial standing/ Capital, investments etc. Location and area  Security measures www.cuidol.in University Institute of Tourism & Hospitality Management All right are reserved with CU-IDOL BTT-111

• Present turnover • Balance sheet, profit and loss account, names of bankers • Sales figures. • The application is screened by a panel of airlines. If the panel is satisfied with all the requirements and conditions, the agency qualifies for recognition. • The processing of the application could take anything between 1-4 months. www.cuidol.in University Institute of Tourism & Hospitality Management All right are reserved with CU-IDOL BTT-111

MULTIPLE CHOICE QUESTIONS Wholesaler in the parlance of Tourism Industry is ………….. Airline C) Travel Agency Tour operator D)Hotel he recognition as an approved travel agency in India is granted initially for 5 years by….. Ministry of Railways C) Ministry of Civil Aviation Ministry of Tourism D) Ministry of Culture. he retailer in travel trade is ----- C) Service providers Tour operators D) None of these Travel agencies SA Stands for . C)General Sales Agent General Service Agent D)Ground Specific Agent Ground Service Agent Approved by ……………… to handle document, passports, visas and such another items. Ministry of external affairs C) Ministry of Civil Aviation MOT D) Ministry of Culture. www.cuidol.in BTT-111 All right are reserved with CU-IDOL

SUMMARY mary lecture of Travel Agency and Tour Operations Management course lecture covered the topics: erence Between Travel agency and Tour Operators es of Travel Agency and Tour Operation Business cess of Approval of Travel Agency Business In India A travel agent is a person who has full knowledge of tourist product – destinations, modes of travel, climate, accommo and other areas of the service sector. He acts on the behalf of the product providers/principals and in return commission. Tour operator is an organization, firm, or company that buys individual travel components, separately from their supplie combines them into a package tour, which is sold with their own price tag to the public directly or through middlemen. www.cuidol.in BTT-111 All right are reserved with CU-IDOL

FREQUENTLY ASKED QUESTION Q:1 Differentiate between Travel agency and Tour Operators ? Ans. Tour operators are like wholesalers, and travel agents are the retailers. A tour operator makes the package holidays up and the travel agents sells them on. “For Further details please refer to the SLM” www.cuidol.in BTT-111 All right are reserved with CU-IDOL

REFRENCES References Books: 1. Travel Agency and Tour Operation, Concepts and Principles – J.M.S. Negi. 2. Travel Agency Management - Mohinder Chand. 3. Travel Agency Management – Sampad Kr. Swain Video link for Impact of Covid-19 on Travel & Tourism Industry | Changes in travel and tourism industry https://www.youtube.com/watch?v=-ahuRLpv7ng E Book: Travel Agency Management Other important link https://www.researchgate.net/profile/Geoffrey_Wall2/publication/222487388_ History_and_tourism/links/59fc4881a6fdcca1f2933cc5/History-and-tourism.pdf www.cuidol.in BTT-111 All right are reserved with CU-IDOL

For queries Email: mae.query@cuidol. www.cuidol.in BTT-111 All right are reserved with CU-IDOL