BSC TTM Sem-3 Travel Agency Management and Tour Operations u-8pdf

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Bsc.TTM avel Agency Management and Tour perations Course Code: BTT 111 Semester: Third SLM UNITS : (write units covered in E- lesson from normal syllabus) Unit: 8

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 definition ,role and importance of definition ,role and importance of tour tour operator operator Understand the types of tour operator  Under this unit you will also understand th Analyze the role and responsibilities of Association types of tour operator of Independent Tour Operators  This Unit will also make us to understand role and responsibilities of Association of Independent Tour Operators INSTITUTE OF DISTANCE AND ONLINE LE

TOPICS TO BE COVERED > Tour Operator > Role & responsibilities of tour Operator > Types of Tour Operator Association of Independent Tour Operators

Tour Operation • Tour operation business is an important constituent of the tourism industry . • The tour operator is a partner in the distribution channel for catering to outbound, inbound & domestic tourists. • The business of tour operation is integrated with other tourism business as it is a linking point between the tourists and other service providers.

Defining the Tour Operation Business – The tour Operation business is defined as an organization, firm or company which Buys individual travel components separately from different suppliers and Assembles them into package tours by adding certain value and Selling them with their own price tag to the public directly or through middlemen (Retail travel agents/travel portals/Excursion agents etc)

Tour Operator • Tour operator links between customers (tourists) and primary service providers. • This acts as a major destination promoter and this is also called as wholesaler. I • It is a professional agent with the capacity of buying services in bulk and distributing through the channel in methodical and organized manner. • Tour operator is an organization, firm, or company who buys individual travel 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, is called a Tour Operator.

Definitions of Tour Operator • Poyther (1993) defines, “tour operator is one who has the responsibility of putting the tour ingredients together, marketing it, making reservations and handling actual operation.” • Holloway (1992) stated that tour operations undertake a distinct function in the tourism industry, they purchase separate elements of tourism products/services and combine them into a package tour which they sell directly or indirectly to the tourists.

The Organisation for Economic and Cultural Development (OECD) define a tour operator as follows; ‘Tour operators are businesses that combine two or more travel services (e.g., transport, accommodation, meals, entertainment, sightseeing) and sell them through travel agencies or directly to final consumers as a single product (called a package tour) for a global price. The components of a package tour might be pre-established or can result from an “a la carte” procedure, in which the visitor decides the combination of services he/she wishes to acquire.’

Importance of tour operators • Tour operators are an important part of the tourism industry. • Tour operators make the logistics of organising a holiday much easier for the consumer. • Tour operator links between customers (tourists) and primary service providers. • This acts as a major destination promoter and this is also called as wholesaler. • It is a professional agent with the capacity of buying services in bulk and distributing through the channel in methodical and organized manner.

Roles and responsibilities •Data analysis- which destinations will sell best, how many holidays should they sell etc •Assessing suitability of accommodation, transfer and transport options r•eLpiariessinegntawtivitehs stakeholders e.g. coach operators, airlines, hoteliers and resort •Negotiating contracts •Confirming reservations with airlines/hotels •Managing and responding to customer feedback •Undertaking market research •Production of marketing material •Providing pricing information •Handling bookings, invoicing and issuing of tickets t•oWgeotrhkeinrg with travel consultants from different travel agencies to put holiday packages

Nature of Primary Activities of Different Tour Operators ➢ Inbound – Describing places of important of the country ➢ Outbound – Highlighting holidays about other countries ➢ Domestic – Specializing on domestic holidays within country ➢ Specialist – Special interest travel to destinations ➢ Independent- Specialized in specific holiday ➢ Integrated – Business Conglomerate ➢ Mass-market- Targeting more sale

Products and services sold by tour operators Examples include:  Package holidays  Accommodation  Transfers  Excursions  Information on destinations  Representative service in resorts

Types of Tour Operator • Tour operators are classified as they do tour business and area of operation of package tours. • Each category of tour operator is unique in their own ways of providing services. • This classification is suggested to distinguish difference of meanings and functions. • Tour operators are classified on the basis of –  the nature of the tour business and  the area of operations of the package tours.

Inbound Operator Ground Tour Outbound Operator Operators Operator Domestic Tour Operator

Inbound Tour Operator • They handle inbound foreign tourists in the host country. They provide them various services on their arrival and departure such as transfer, accommodation, transportation, sightseeing, entertainment, currency, insurance services etc. • Packages are promoted and sold directly or through intermediaries. In fact, inbound tour operators attach much added appeal into tourism products. • They earn foreign exchange that increases foreign exchange reserve ratio of the host countries. Some of the major inbound tour operators in India are TCI, Indo-Asia Tours and Travels and STIC Travels.

Outbound Tour Operators • They sell package tours highlighting the destinations in foreign countries. • These operators are specialized in designing and promoting multi-national tours. • Generally, outbound tour operators appoint inbound tour operators/ground operators to make arrangement of services. • They receive the guests at airport, transfer group from airport to hotel and arrange local sightseeing for business or leisure oriented customers.

Domestic Tour Operator • Domestic tour operator is one which conducts tour within the country. • Domestic tour operators operate within the boundary of home country and cater the diverse needs of individuals and group travelers like inbound and outbound operators. • They promote tour packages both through their own outlets and other retail travel agents.

Ground Handlers/Operators • Ground tour operators operate domestically. • Ground operator is otherwise known as reception operator or destination management operator or handling agencies. • These operators are generally expected to provide arrangements and ground logistics at a particular destination. • The operator coordinates, supervises and handles accounts/payments of all services related to tour. • Thus, inbound as well as outbound operators must look into the following aspects before the selection of a ground handling operators.

Direct Sell Operators • There are few tour operators who use to sell their holiday package using the tour agent. • The tour operators have sold their package to public directly, because this can offer great value. • The consumer can buy cheaply from the tour agent.

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 agent. • They are essentially wholesalers and they don’t sell directly to the public.

Special Interest Tour Operator • This type of tour operator offers and promotes the special interest package tours. • They mostly do direct marketing for the packages or through the retail agents. • They are also called as personalized or customized tour operators as package tours are made on the choice and suggestions of tourists.

Association of Independent Tour Operators • The Association of Independent Tour Operators, abbreviated as AITO, is a travel industry trade group (like ABTA or ATOL) based in Britain. • They launched in 1976. • The AITO represents around 120 independent tour operators across 200 countries. • These tour operators provide access to a huge range of activities including city breaks, safaris, luxury holidays and much more. • The AITO is based in Twickenham, south-west London. •v

This committee aims to: • Protect the Environment – its flora, fauna and landscapes • Respect local cultures – traditions, religions and built heritage • Benefit local communities – both economically and socially • Conserve natural resources – from office to destination • Minimise pollution – through noise, waste disposal and congestion

The AITO reaches these goals by: •Establishing their own policies and involving our staff •Informing their clients about sustainable tourism and, where appropriate, •Encouraging them to participate •Working with their suppliers and partners to achieve sustainable goals and practices •Publicizing good practice to encourage and spread awareness about sustainable tourism •Associate with Independent Tour Operators

Arbitration services • The AITO actually offer arbitration services for disputes between members and holidaymakers. • This is helpful in ensuring there is a middle man there in the rare occasion that there is some sort of issue over travel or holiday arrangements.

Membership To become a member, AITO tour operators must have full consumer protection in place. It covers the following measures of quality: • - Exclusive membership criteria • - Financially secure holidays • - Accurate brochures and web sites • - Professional service and continual improvements • - Monitoring standards • - Sustainable tourism • - Fair customer relations

Why you should book with the Association of Independent Tour Operators? • AITO go beyond Google • AITO are reactive • AITO offers Great customer service • AITO checks that our members are professionals, so you don’t have to • All holidays sold by AITO members have full financial protection • AITO members promote an ethical and sustainable approach to travel • All AITO members sign up to our Quality Charter, ensuring the highest standards • AITO is the best place to find authentic and original holidays from quality companies

MULTIPLE CHOICE QUESTIONS Q1 : The tour operator is a partner in the distribution channel for catering to a) Inbound tourist b) Outbound tourist c) Domestic tourist d) All of these Q2: A prepaid and pre - arranged trip is known b) Tour Operator a) Tour package d) Tour Brochure c) Itinerary Q3 : AITO stand for _______ b) Association of Independent Tour Operators a) Association of International Tour Operators d) Association of Independent Travel Operators c) Association of Inbound Tour Operators Q4 : Ground tour operators operate b) Internationally & Domestic both a) Internationally d) None of these c) Domestically

SUMMARY • Tour operators are an important part of the tourism industry. Tour operators have a number of products and services that they sell, depending on their specific business model, business intentions and target market. • Tour operator is largely responsible for delivery of services as per the contract in tour itinerary. • Tour operator is a professionally managed company with expertise and experience in planning and operation of pre-paid and pre-planned packages for vacationers or business travelers. • Tour operators generally provide the services independently and tours are conducted at the cities where the offices are located. However, these services can be arranged though the other suppliers at various places. • The Association of Independent Tour Operators is a pretty important organisation within the travel and tourism industry.

FREQUENTLY ASKED QUESTION Define Outbound Tour operator. s: The Operators which assist the passengers of a country to visit another country are outbou erators. or instance, the outbound operators help people residing in UK to visit another country for touri dustry. This type of visitors is also known as international tourist. gin Holidays provide outbound services to its clients. Organization designs international trip for stomers and provides tour packages to European countries, South Asia, United States and Africa or Further details please refer to the SLM”

Reference • Travel Agency and Tour Operation, Concepts and Principles – J.M.S. Negi. • Travel Agency Management - Mohinder Chand. • Professional Travel Agency Management – Chunk, James, Dexter &Boberg • The Business of Travel Agency Operations and Management– D.L. Foster

For queries Email: mae.query@cuidol.