Tour Operation Management

THM-221
1 What do you mean by tour operation management? What are the basic differences
between Management and tour operation management?

2 Discuss the importance of tour operation management. How can you consider tour
operation as a business?

3 Why travel agency is called as a retailing point for travel products? Explain. List the
important roles and responsibilities of a large travel agent.
4 Who is a tour operator? And explain the service provided by the tour operators in the
package tours.
5 Discuss the contemporary factors influencing the travel trade business. How has the
changing lifestyle influenced the travel behavior in the modern society?
6 How can you set up a travel business? Discuss with an example. “The travel agency
and tour operation business have become a key contributor to the tourism revenue”
Discuss with an example
7 Which are the conventional sources of revenue for travel agents and tour operators?
Discuss the threats in travel agency business. How can these threats be managed
tactfully?
8 What do you mean by travel insurance? Discuss the importance of travel insurance.
What are the alternative models of payment that make your journey comfortable?
Discuss with example
9 What do you mean by various types of travel documents? Mention the name of
different travel documents? What is the meaning of passport? Explain the meaning
of different types of passport.
10 Explain the various procedures and enclosure documents for obtaining the machine
readable passport.
11 What do mean visa? Why is it important if anyone would like to travel from one
country to another country?
12 Describe the meaning and types of itinerary that you need for travelling from
Bangladesh to India/USA.
13 How can you prepare a travel itinerary if you would like travel two nearby countries
like Singapore and Malaysia? Explain with example.

14 How can you help if anyone would like to get help from you to get visa?
15 What are the factors that you need consider in case of pricing the tourism product?
Discussed with example. Do you think that price of the tourism product is high in our
country? Why or why not? Discuss with example.
16 Discuss the different benefits of the package tour? How can you suggest a package
tour operator to improve his/her package tour operation for the students
 1. What do you mean by tour operation management? What are the basic differences
between Management and tour operation management?

Tour Operation Management

A Tour Operator operate the tour by providing package all or most of the component of an offered
trip and then sell them to the travelers. These package can also be sold through retail outlet or
travel agency. The whole process or activities is called tour operation management.
Tourism Operations Management are kind of activities and services such as package tours,
inclusive holiday bulk, booking tickets for air, rail, sea or road travel and arrange hotel reservations
or guest houses, hire taxis etc. managing the tour beginning to the end undertaken by a tour
operators or agency.

Basic differences between Management and tour operation management

Basic for Management Tour Operation Management

difference
Definition Management is a process of A Tour Operator operate the tour by
planning, decision making,providing package all or most of the
organizing, leading, motivation and component of an offered trip and then
controlling the human resources, sell them to the travelers. These
financial, physical, and information package can also be sold through retail
resources of an organization to reach outlet or travel agency. The whole
its goals efficiently and effectively.process or activities is called tour
operation management.
Concept Management is broader concept Tour operation management is
narrower concept
Related to It is related with all kind of It is related with tourism organization
organization.
Goal Providing employees skills to Providing package tour & better
achieve goal tourism services
Function In general, management function is On other hand, tour operation
planning, organizing, leading and management function is Planning a
controlling. Tour, Making Tour Package,
Arranging a Tour,
 2. Discuss the importance of tour operation management. How can you consider tour
operation as a business?

Tour operation management is a key factor in the success of the tourism industry. It is important
to create tourist products, promote them a finally sold them to tourists. Tour operators provide the
best and competitive price to the tourist. Tour operators negotiate with suppliers of tourism
products such as hotels, airlines and provide the best possible price to the tourist.

Importance of tour operation management

 Creating package tour

 Prepare Travel Arrangements

 Budgeting the Tour Operations

 Providing a safe and enjoyable tour

 Save tourists time and money.

 It is a wholesaler as it assembles packages as per the trend of market and capacity of

distribution channel.

 It deals with customers directly as a principal agent or foreign travel agent without off-

loading tours to ground handling agents.

 Tour operator has liberty to amend the tour itinerary and program if it warrants.

 It invests much of time and resources to chart out delightful and value added tour itinerary

for meeting the demand and expectation of tourists.

 It gives much stress on selling the tour than the conducting the tour.

 Tour operators are mostly located in the mega cities or in the cities with the international

airlines services for the strategic advantage of controlling the package tours.
  It mostly provides international transfer from hotel to airport and vice-versa, if offices of

tour operators are located.

 It deals with both the tourists and primary service providers as direct intermediary.

 Tour operators design the tours in such a way that handling agents may not get extra

excursion tours directly from tourists.

 It accepts foreign currency for the tour package and gets accreditation from the Central

Bank for money exchange dealer.

 It gives ample importance to become the professional member of national and international

tourism, travel, and hospitality and aviation associations.

 It is committed to work as a responsible partner in the tourism industry to popularize

destinations and explore new potential destinations through their package tours.

I consider tour operation as a business these are the following;

Travel business is operated through wholesalers and retailers. The primary service providers like
hotels, resorts, ferry, cruise line train, airlines, coach, car rental, even companies, etc. rely largely
on the wholesalers and retailers to sell the products.

The business of travel agencies is broadly divided into wholesale and retail travel agency for the
distribution of sale of tourism services as a business

Wholesale Travel Agency

The business of wholesaling in tourism industry is no way different from the wholesaling in the
commodity market. A wholesale travel agency assembles different components of services to
design tour packages for catering FIT and GIT customers.

A wholesaler is one who initiates the process of forming organized tours or sells the individual
components directly or indirectly through franchise or retail agents. For example, a wholesaler of
Singapore airline or Taj Hotel or Sterling Time Share Group is authorized to sell the airline tickets
or hotel rooms on behalf of the principal service providers. A wholesaler may be a consolidator or
a manufacturer of tours or General Sales Agent (GSA). It buys service components in bulk from
different suppliers and it designs package and sells or resells these components together.
Retail Travel Agency
A retail travel agency is one that sells directly to customers at several small locations in cities or
towns. Retailer gets commission from the gross sale of hotel rooms, airline, train, bus and cruise
tickets, insurance, foreign exchange, etc.

The role of retail travel agencies is crucial when majority of principal service providers have no
choice to increase the sale without the help of retail travel agents. Thus, there is a mushrooming
growth of retail travel agents dealing with the booking of hotel rooms, airlines seats, cruise line
seats, etc. They consider in reaching the customers through retail agents or getting the hotel or
airline promoted through retailers easy, reasonable and sustainable.

Full Service Agency

It is a type of travel agent that deals with all kinds of services. It may be called as complete travel
agents. Apart from being an accredited agent of IATA or any other principal service providers,
this full-service travel agent owns the transport fleets and charter flights and cruises.

Commercial Agency
It is a category of unconventional travel agency that deals with business travel. It books convention
centers and stalls in exhibition center. It also arranges venue for conducting small and large
meetings.

Implant Agency
It is a type of travel agent that is located in the premises of corporate offices to make travel
arrangements of employees. It is a registered travel agent appointed as per the agreements.

Group / Incentive agency

It is an emerging form of travel agency business that a specialized category of agent acts as
intermediary to deal with bulk bookings for employees and clients of corporate houses.

Online Travel Agency

It operates on the internet through a website connected to a global distribution system. The OTAs
apply the operational mechanisms of e-commerce and transact online with their customers. The
OTAs offer information, bookings of hotels, cars, reservation of seats in airlines, railways, ships
and buses. They sell package tours; customize tours and take enquiries. Transaction of payment is
also done online using online payment modes such as credit/debit cards, internet banking, pay-pal
etc.

3. Why travel agency is called as a retailing point for travel products? Explain. List the
important roles and responsibilities of a large travel agent.

Travel Agency- A Retailing Point of Tourism Services

Travel agency is a firm qualified to sell services pertaining to tours, cruises, transportation, hotel
accommodation, meals, transfer, sightseeing and other elements to the general public. This
business firm is set up for providing services and earning profits. The business of travel agency
uses some of the important management practices like division of labor, hierarchical authority and
responsibility. Travel agency plans, organizes, directs, controls, coordinates and sets all resources
together in such a manner that it can achieve objectives. When the functional areas of management
are linked with organizational objectives, travel agency makes profits after satisfying customers.

A travel agency is a business entity or firm that retails package tours or any other individual travel
solutions to customers as a representative of airlines, hotels, tour companies, and cruise lines.

List the important roles and responsibilities of a large travel agent.

 It works as a retailer and sells package tours on behalf of wholesaler. The sale of package
tours involves the rate of commission fixed on the agreement.
 It ensures horizontal integration for the purpose of achieving bumper sale.
  It is an intermediary between tour operators and tourists in terms of selling package tours
in case of outbound tours and conducting sightseeing tours in case of inbound tours.
 It follows tour itinerary and it does not have anything to do with itinerary.
 Travel agents also provide destinations transfer services to the clients as per the tour
itinerary.
 It acts as a local agent to confirm and reconfirm the services reserved by the tour
wholesalers.
 It sorts out problems as per the directions of tour wholesalers.
 It prefers to become the member of national bodies like TAAI and IATO.
 It negotiates the terms and conditions for commission with principal suppliers.
 It recruits trained manpower from time to time.
 It procures advanced technology for operation of business.
 It subscribes publications like TIM for travel documentations.
 It distributes the work in the office for optimization.
 It arranges the vehicle in a systematic manner.
 It collects feedback from suppliers and consumers
 It shares information and knowledge

4. Who is a tour operator? And explain the service provided by the tour operators in the
package tours.

Tour Operator

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.
They create a package holiday by combining all elements such as hotel, airport transfers, activities,
restaurants, tours and such like. Tour operator links between customers (tourists) and primary
service providers.

For example: A tour operator purchase bulk airline ticket, hotel room restaurant meal plan and
sightseeing activities for a particular destination such as Rome.

The following services are provided by the tour operates in the package tours

 Airport and hotel transfer

 Arrangements for traditional reception at the arrival points
 Arrangements of luggage transfer in the airport and railway stations
 Arrangements of guided sightseeing tours
 Options and selection for worldwide destination
 Comprehensive itinerary planning
 Appropriate hotel selection & reservation
 Meeting, conference and meeting arrangements
 Exhibition and factory visits
 Theme parties, events & sightseeing
 Air tickets & travel documents like passport, VISA, health certificate and currency,
insurance and permits for entry into the restricted areas
 Foreign Exchange & Travel Insurance
 Experienced and professional tour guides, escorts, interpreter and tour managers
 Personalized services at destination
 Coordination with local tourist organizations at destination
 Domestic and international air travel
 Rail bookings in India, Europe, America & Japan
 Hotel reservation
 Car rental
 Travel documentation
  Airport facilitation
 Foreign exchange
 Overseas travel insurance
 Conference and seminar management
 Trade Fair/Exhibition visits
 Implant Operations- in-house travel consultant equipped with CRS system and satellite
ticket printer
 Business/trade delegations
 Incentive travel in India and Worldwide

5. Discuss the contemporary factors influencing the travel trade business. How has the
changing lifestyle influenced the travel behavior in the modern society?

A Travel agent or tour operator is an intermediary in the travel trade. Linking customers with
service providers is the primary job of a professional travel agent or tour operator. Tour operator
or travel agent is a linking point or connecting place that provides travel information and confirms
hotel rooms, airlines, train, ferry and bus tickets and other ground services.
A tour operator wishes to establish business link with hotels, airlines, railways, transport operators,
etc. for optimizing resources.
There is a direct positive relationship between the growth of tourist arrivals and increase in the
volume of sale of organized package tours. It is noticed that tour operators and travel agents are
the promoters of tourism destinations and arrivals of tourists to any destinations depend on how
appealingly a tour operator presents the package to the customers.
The contemporary factors influencing the travel trade business
Travel started from the search for food, shelter and clothing. In the later stage, development of
transport communication provided better roadways and waterways for 49 the merchants to travel
distance places for trade and commerce.
 Searching food:
 Development of civilization
  Religious circulation
 Innovation of new things
 Industrial revolution
 Economic growth of the western Europe
 Demand for Air Travel
 Loyalty program of airline
 Technology
 Passenger Amenities
 Visual upon arrival
 Scenic Highways

Changing lifestyle influenced the travel behavior in the modern society

It is certainly expected that changes in lifestyle have made much impact on travel
trade today. The pattern of lifestyle has undergone drastic changes as compared to
1960s and 70s. People spend for the moment due to the demonstration effects.
Young population is travelling for the purpose of education and knowledge. Shoddy
products, sub-par services and unpleasant purchase experiences are no longer
tolerated or forgiven. Travelling with family in a weekend has become fashion for
the urban dwellers. People look for best brands, best quality and best services from
airlines, hotels and travel agents.

 Aligning travel with fashionable clothes, homes and investments

 Late marriage and small family
 Living relationship or single
 Spending on individual travel
 Considering travel as social status
 Considering travel as a part of quality of life
 Travelling as a source of seeking knowledge
 Introduction of paid holidays or incentivized travel
 Travelling with children to combine to visit to famous places of interest.
 6. How can you set up a travel business? Discuss with an example. “The travel
agency and tour operation business have become a key contributor to the
tourism revenue” Discuss with an example

Travel agency or tour operation business is managed and operated by someone who
must be professionally qualified, skilled and experienced. Hundreds of travel
agencies have ventured into the business with much expectation and many of them
just perish in the due course of time due to several reasons. Thus, starting a travel
agency counter does not take much time rather it takes longer time to sustain and
grow the business in the competitive travel market.

Selection of Ideal Location

Selection of suitable location gives added advantage to a travel agent or tour operator
to grow in the competitive business environment. It solves maximum problems in
opening travel agency or tour operation office. It takes longer time to find an ideal
location. Location is finalized after taking the potential area of business into
consideration. A travel agency or tour operator operates and manages its business
activities more efficiently and productively when it is located in an easily accessible
place.

Selection of Office Premises

Selection of appropriate site increases the responsibility of finding proper building
or office premises. Building should be preferably ground floor and there must be
enough parking areas. It is always preferred to find ground floor for the convenience
of customers for an easy access to the office. For example, elderly customers or
disabled customers can have easy access if there is a ground floor premises.

Selection of Furniture
Selecting proper and latest furniture enhances the beauty of office premises. There
must be enough market survey to select proper furniture. It is better to select chairs,
tables, sofa, center table, visitor chair, etc as per the availability of space.
Comfortable cushioned sofas, movable rotating chairs and cupboards must be
selected to place in the office.

Technological Gadgets
Technology can bring in efficiency in work culture. Working environment can be
changed with the adoption and use of latest gadgets. With the help of gadgets, travel
information & dissemination, booking, controlling the operation, fund transfer, etc
is done with the help of mobile phones. Modern gadgets have made the job easy and
have made the delivery of services more accurate.

Paid-Up Capital
Investment for opening a new travel agency office can be arranged from the
commercial banks in subsidized rate of interest. Paid-up capital in the initial stage
of running the business can be arranged from its own source or commercial banks.
A feasibility report with sufficient evidences of repaying the installment of loans
along with areas of travel agency business and expansion place must be prepared to
satisfy the conditions stipulated by banks.

Opening Current Account

For the day-to-day operation of transactions, current account should be opened with
the commercial banks preferably located near the office. Current account should be
transacted with the bank that lends money to open travel agency office. The
advantage of maintaining current account is that there can be unlimited withdrawals
in multiple times in a single day.

Hiring and Retaining Qualified & Trained Staff

Travel agency is a service oriented business and its primary job is to retail the
services of primary producers of tourism business. Retailing is nothing but selling
the products to customers directly. It certainly requires experienced staff with proper
training and qualifications to increase the sale of elements of individual or inclusive
services before the target time. For example, sale of a group tour to Thailand has to
complete within the first month of the opening of bookings.

Customized Transport
Travel agents and tour operators own customized car, mini and large coach to
manage the operation of individual and group tours. In case of the requirement of
additional transport, recognized transport operators provide the services as per the
booking from tour operators. As such, a tour operator can become a ground transport
operator when it handles the tours at the main cities and travel agent when it retails
the products of principal suppliers in tourism.

Recognition from Airlines

Airlines do authorize travel agents to retail the tickets directly to customers. Travel
agents submit the necessary documents for obtaining accreditation and airlines
appoint the agents for booking the tickets. Apart from securing authorization from
individual airlines, travel agents also get accreditation from IATA with the
fulfillment of certain mandatory procedures to deal with the issue of international
airline tickets.

Obtaining Franchise from Cruise Line and Multinational Travel Agency

Many travel agents take franchise from cruise liners or large travel agencies to retail
the package tours directly to customers at smaller cities. Travel agents shall have to
go for agreements with the principal agents or cruise liners to sell the various
elements of services.

Membership of Local, National and International Associations

Travel agents and tour operators handle complex businesses that involve customers
and suppliers at two different ends. Many government policy decisions generally
affect the interests and operation of business for which travel intermediaries face
unwanted problems.

Managing Capital and Cost

A travel agent assesses the strengths and weaknesses of the business in the
competitive environment as it involves costs for producing and delivering services.
Opening a small travel agency office does not need much paid-up capital. It may
need for more investment as the business gets diversified. In the formative period, a
travel agency faces much hardship to run the business while the bearing of
operational costs.
Parking Area
Parking space must be available near the office for vehicles. While selecting the
location of travel agency or tour operation, it essential to have the parking area as it
is a precondition for obtaining recognition from the Ministry of Tourism as transport
operator or tour operator.

Cost on Obtaining IATA Recognition

The volume of investment increases with diversification of business and travel
agents have no option, but to manage the business with the help of floating
transactions. It is a dream of every travel agency to be an IATA recognized agent to
sell the international airline tickets. In the current time, the business of airline tickets
is no longer alluring for travel agents whereby many of them do not even give their
minds and energy towards the sale of airline tickets due to the paltry commission.

Travel Agency Organization

Structure A large travel agency or tour operation unit functions through the
hierarchal organization structure for better co-ordination across the departments. In
case of the formal structure, responsibility is delegated along with authority to each
department to take decisions at their own level and share it with each member.

Delegation of Authority through

Hierarchical The organization structure usually consists of the CEO and MD as the
top administrative and operating head of the company followed by the Chief
Operating Officers (COOs the Chief Financial Officer (CFO), the Chief Human
Resource and Chief Information Officer (CIO).
“The travel agency and tour operation business have become a key contributor
to the tourism revenue”

Investing on travel business may be risk if it is not taken into considerations of the
nature of function of business. The travel agency and tour operation business have
become a key contributor to the tourism revenue. Thus, a travel agent or tour
operator must possess knowledge, experience, commitment, patience, finance, etc to
run and expand the business with a mindset to face challenges. Travel business now
faces competition.
Making profit in the travel business is not so easy today. A travel agent or tour
operator is required to be smart in dealing with clients; providing them quality
services; and taking the business very seriously. All those points starting from
selection of location to the establishment of organizational hierarchy must be looked
into before investing in travel business.

7. Which are the conventional sources of revenue for travel agents and tour
operators? Discuss the threats in travel agency business. How can these
threats be managed tactfully?

Earning profit from investment in a business firm is generally expected after the sale
of the products or delivery of services. Aiming at profit along with the focus on
customer satisfaction is the ultimate objective of each travel agency firm. Small or
big investment has to have maximum returns. Each business firm attempts to make
more profit from minimum investment in a short period of time. Travel agency or
tour operation business is a type of business that deals with service for those who
come under the high income bracket.

Sources of Revenue
Any business firm aims to maximize profits by increasing the sale products or
services. The primary aim is to reach at Break-Even Point in a short period of time
from the investment. It is a stage in every business that the total cost of producing
the products or services must be equal to the total revenue.

Commission from the Sale of Package Tour

Selling package tour has become an appealing business option for travel agents.
There is a growing demand for organized domestic, inbound and outbound package
tours from branded travel companies. Travel agents sell package tours directly to
customers on the price printed on tour brochures. Tour operators or wholesalers
appoint retail travel agents to sell package tours on the basis of various terms and
conditions.

Commission from Hotel Room Reservation

Travel agents generally find the sale of hotel rooms for certain duration very
lucrative and attractive as compared to other sources of income. Even though online
bookings are also considering the sale of rooms through retail travel agents very
convenient and feasible. Hotels offer 10 % to 20 % commission for the sale of room
along with special offers to tour operators for the bulk sale of rooms and free rooms
to group leaders or executives of travel agents.

Commission for Booking of Transport

Earning commission for reservation of ground transport is a traditional source that
each travel agent heavily depends while booking different types of transports for
their own clients. There are transport operators having hundreds of vehicles for
running on hiring purpose. Tour operators hire from them for city sightseeing and
excursion purposes. Transport operators offer 10 % commission on the total
transaction of booking of transport service.

Profits from Organizing MICE Activities

Travel agents also organize MICE activities for business houses and companies.
Specialized event management companies deal with trade fair, exhibitions,
conference, conventions, congress, political rally, yoga camp and meetings of
different scale and size. The wholesalers of these activities promote directly and
through retail travel agents.

Commission from Transaction of Foreign Exchange

Many travel agents and tour operators obtain authorization from Reserve Bank of
India (RBI) for selling and buying of foreign currency. At the same time, inbound
tour operators get authorization for receiving the payments in foreign currency for
sale of package tours foreign nationals whereas outbound tour operators make the
payments in foreign currency to hotels and ground transport operators.

Commission from Insurance

Insuring package tours is a part of general insurance. Tour operators take the
insurance services from insurance companies for package tour and suggest the
clients to go for insurance policy covering medical aid on emergency. There are
merits of taking insurance policy while travelling on tour. Insurance companies offer
commission on the insurance policy.

Financial Benefits of Travel Agency and Tour Operator

Given the nature of growth of travel agency sector, MakemyTrip.com has brought
out a very big sensational development in India with the launch of online travel
portal from the USA market to Indian market. It is a noticeable development in travel
industry with the rising numbers of users of internet for booking, cancellation,
confirmation and information for hotel rooms, airline seats, bus tickets, package
tours, train tickets, ferry tickets, theater tickets, etc. It is user friendly, economical
and accessible for all. This has resulted in increased access to websites of online
travel intermediaries and service providers for information, reservation and
cancellation.

There are many threats in travel agency business. I can manage these
threats tactfully in such a way that;
The distribution cost of airlines moves around 15 per cent to 19 per cent. Traditional
airlines have adopted the reduction of distribution costs. Airlines have negotiated
with the GDS providers to reduce booking fees and decide the travel agency
commissions from IATA.

Airlines have almost closed the city booking offices or have moved to cheaper
locations. Airlines are increasing the FFP (frequent flyers’ programmes) and share
the web site commonly with e-ticketing to reach customers directly. The airlines
resorted to zero per cent commission in order to cope with rising fuel prices,
competition, and other costs.
IATA accredited agents have faced a major setback of loss of revenue due to the
practice of zero commission IATA agents have resorted to the business process
outsourcing (BPO) and other consultancy business. Another challenge is the huge
initial investment for running an IATA accredited agency. It should be to the tune of
20 lakh, and the agency has to retain qualified and trained personnel to deal with the
fare construction and issue of tickets. A large number of employees are shifting from
more than 2000 IATA-accredited agencies to BPOs. The sector will risk
losing50,000 crore.

The following risks need to be looked into in the travel agency business.
 Expensive car rentals
 Online booking
 Breakdown of rental duration
 Commission cuts for travel agents
 Service tax on foreign exchange payments
 Staff poaching

The travel agency has certain other risks while running the business. Besides the
internal risk factors like airlines commissions cut and online air ticketing, there are
other risk factors like seasonality concern, political instability, health and security,
vehicle parking concern, lack of sophisticated ground transportation, condition of
roads, cancellation and delay of flight operations, lack of facilities and amenities at
the airports, railway stations, and destinations, environmental pollution, rising
inflation, strike and demonstration, rising fuel price, lack of community support,
natural calamity, and compensation are the major socio-political risk factors.

8. What do you mean by travel insurance? Discuss the importance of travel

insurance. What are the alternative models of payment that make your
journey comfortable? Discuss with example.

Travel Insurance
Travel insurance covers against unexpected events during the tour. It may occur as
many things do not have in the control of human beings. Problems during the tour
can be as small as a biting an insect to as big as facing fatal accidents. Travel
insurance can help in overcoming all these problems. It may catch an infection or a
delay in flight, a hijack or an emergency medical assistance required. These hassles
disrupt travel plan and put an individual in a critical condition.

It covers the different risks such as expenses, lost luggage, flight cancellations, and
other losses that a traveler can incur while travelling.

Importance of travel insurance

The following are facilities covered under the travel insurance schemes:
 No medical tests are required
  Settlement of claim within seven days after completion of the claims
procedure
 Issuance of policy within minutes
 Covers persons in the age group of six months to 70 years
 Covers trip duration from 1 to 90 days
 Medical emergency assistance
 Direct settlement of in-hospital medical expenses abroad
 Arrangement of hospital admissions
 Arrangement for emergency medical evacuation and repatriation
 Emergency travel services
 Embassy referral services
 Claims procedures information services

There are alternative models the of payment that make your journey comfortable are
stated below;

Foreign Exchange
Forex is the biggest financial market in the world. It is a source of income to many
traders and banks of the world. It is not tied to any stock exchanges in the world. In
fact, it is over-the-counter (OTC) market. It helps international trade and investment.
Market participants have also been provided with greater flexibility to undertake
foreign exchange operations and manage their risks. This has been facilitated
through simplification of procedures and availability of several new instruments.

Courier Service
The EDS (Express Delivery Sector) industry provides services that include
integrated door-to-door transport and quick delivery of time-definite shipments of
documents, samples, parcels, etc.

SMS Marketing
SMS marketing is an effective strategy for service businesses to connect with their
clients with the aim of improving sales. Service based businesses require a high level
of personal connection.

Coffee Shops
Some agencies begin to offer other services where the growing public trend towards
using coffee shops has been matched with the opportunity to offer a higher level of
customer service (including a free cup of coffee) to differentiate this particular travel
agency’s product offer from that of the major multiples.

SMS Marketing
SMS marketing is an effective strategy for service businesses to connect with their
clients with the aim of improving sales. Service based businesses require a high level
of personal connection.

Text to win
The text to win campaign is also very exciting. The clients are encouraged to text a
keyword or phrase to the SMS short code of the campaign in order to win something.
The prize should be alluring enough to encourage enough participation from the
clients

Mobile Coupons
Utilize the mobile coupons with the aim of retaining the clients. One major
advantage of the mobile coupons is that they are very simple to set up and quick to
send out. They work instantly and are very effective when sales are slow. By simply
sending out the mobile coupons, clients will begin lining up for your service.
Miscellaneous Services
A travel agent is a one stop solution to add efficiency to professional destination
management services and a host of leisure activities ( It caters to all aspects of
conferences, business meetings, event management meets, seminars, exhibitions,
and launch of new products and incentives. Every event is customized to suit the
specific requirements of the customers.

9. What do you mean by various types of travel documents? Mention the

name of different travel documents? What is the meaning of passport?
Explain the meaning of different types of passport.

Each tourist must carry the valid travel documents while travelling into foreign
countries or restricted areas in their own countries. The processing of travel
documents involves some technical formalities that generally take time for travel
agents to get them issued on behalf of clients or customers. Travel agents are
authorized to deal with travel documents with authorized money exchangers, foreign
consulate offices, passport offices, income tax offices, insurance office etc. Travel
documentations are processed for clients and customers before their confirmation
for purchasing package tour. There was not a separate department to arrange the
necessary travel documents in the travel agency.

Now, travel documents include passport, visa, currency certificate or

endorsement of currency in the passport, travel insurance, income tax
statements, health certificates, etc.
Different travel documents

1. Passport
A passport is a document, issued by a national government for the purpose of the
identity and nationality of its citizens. It is used for obtaining visa for international
travel.
Regular Passport
It is issued for normal travel purposes such as business or vacation. The colour of
the passport cover is Navy Blue.
Diplomatic Passport
It is issued especially for Indian diplomats and top ranking government officers for
visiting overseas for official tours. The colour of this passport cover is Maroon.
Official Passport
It is issued to those Indian who represent the government for official or business
purposes. The colour of this passport cover is White.
2. Visa
A visa is a certificate prepared by the immigration officials of the foreign country
with stamp marked on a passport after verifying the person’s credentials. It gives the
person the right to enter a country and stay for a temporary period.

I. Gratis Visa
II. Diplomatic/Official/UN Official Visa
III. Transit Visa
IV. Tourist Visa
V. Entry Visa
VI. Project Visa
VII. Project Visa
VIII. Employment Visa etc.

The meaning of passport

Passport is an official governmental document that contains a given person's
identity. It helps its holder travel under its protection to and from foreign countries.
The document certifies the personal identity and nationality of its holder.

Different types of passport.

Regular Passport
It is issued for normal travel purposes such as business or vacation. The color of the
passport cover is Navy Blue.
Diplomatic Passport
It is issued especially for Indian diplomats and top ranking government officers for
visiting overseas for official tours. The color of this passport cover is Maroon.
Official Passport
It is issued to those Indian who represent the government for official or business
purposes. The color of this passport cover is White.
Special passport (maroon cover)
It also known as India-Bangladesh Special passport, was issued to Bangladeshi
citizens and Indian nationals resident in West Bengal and the North-Eastern States
only. It was valid for travelling between India and Bangladesh only. The issuance of
this passport ended in 2013 due to changes in ICAO regulations.
 10.Explain the various procedures and enclosure documents for obtaining the
machine readable passport.

Procedures to Apply for Passport

The passport can be applied in the Passport office or the District Passport Centers.
The applicant can also apply online for issuance of passport. The application must
be filled online and registered. This application form must be filled by hand. The
application form along with the fee, passport size photographs and other documents
must be submitted at the passport office. The date and time to reach the passport
office for applying must be furnished while registering the same online.
Any Bangladesh citizen who has valid hand written passport/ Machine Readable
Passport (MRP) can apply Bangladesh Embassy for new MRP (Machine Readable
Passport). The following things are required:

Enclosure of Documents obtaining the machine readable passport.

1. Filled-in MRP Online Application Form (with bar code) printed copy
2. Online Appointment for MRP to give biometric data (finger print) printed copy
3. 01 (one) copy recent passport size photograph
4. 01 (one) set photocopy of existing valid Bangladesh Passport (1-5 page for hand
written and 1-2 page for MRP) and original valid Bangladesh Passport
5. Photocopy of applicant’s National ID Card or Digital Birth Certificate (with 17-
digit number)
 6. Copy of valid Student ID card (If anyone wants student discount; only for
students with valid student ID card) and original student ID card
7. Proof of payment for MRP to Embassy Bank Account [Copy of Bank transfer
slip/Überweisung Euro 110,- normal; Euro 35,- for student discount only for
college and university student] (Embassy Bank Account details: Embassy of
Bangladesh: Deutsche Bank, BLZ:100700 00, Account No:060 7788, IBAN:
DE 21 1007 0000 0060 7788 00, BIC (Swift code): DEUTDEBBXXX)]

11.What do mean visa? Why is it important if anyone would like to travel

from one country to another country?

Visa
A visa is a certificate prepared by the immigration officials of the foreign country
with stamp marked on a passport after verifying the person’s credentials. It gives the
person the right to enter a country and stay for a temporary period.

It is a conditional authorization granted by a territory to a foreigner, allowing them

to enter, remain within, or to leave that territory.

There are lots of important of Visa if anyone would like to travel from one
country to another country stated below;
Security
In an era of globalization and increasing movement of people, States are confronted
with the challenge of balancing national security and immigration concerns on one
hand, while promoting economic activity and fostering political relations on the
other. Visas play an important regulatory role that both physically and economically
protects a nation’s citizens and its visitors

Immigration Control
Visa policy also allows States to protect the national labour force by preventing
illegal immigrants or grant access to high value foreign labour which in turn
promotes the economic welfare of the State. There is also a further security concern
among policy makers in that illegal immigration has been often associated with illicit
activities and social tensions. Among the major concerns are visitors overstaying or
otherwise violating the terms of their visa (e.g. working in the host country while on
a student visa)

Limitation of duration of stay and activities

In addition to the validity period of a visa, the visa can restrict the allowable number
of entries during the validity period of the visa. Visas may also stipulate how long
the holder may stay in the issuing country which may range from days to the entire
validity period of the visa. Visas can also restrict the allowable activities of the
holder of the visa, for example the holder of a tourist or student visa is typically
restricted from working in the issuing country.

Revenue generation
The issuing of visas also provides a means of raising revenue for the State. While
the costs of administering the visa program can be considerable, they can be
outweighed by the revenue stream from visa fees.
Reciprocity
Visa policy can also be defined by a country’s law or national prerogatives. In some
cases, a country will impose a visa on another because the other country requires a
visa of the issuing country’s citizens – a policy known as ‘reciprocity’. In addition,
visas can be used as an incentive to encourage support of a country’s foreign policy
or retaliation in the case of disagreement.

12.Describe the meaning and types of itinerary that you need for travelling
from Bangladesh to India/USA.

Itinerary
An itinerary is a schedule or an arrangement of programmes or events. It is prepared
for designing package tour. The origin, destination and en-route halting points and
duration of halts along with elements of services like hotel rooms, transports,
activities and miscellaneous services are clearly described in tour itinerary. An
itinerary gives detailed information about nature, type, length and quality of package
tour. Importantly, it determines sales of package tour and it is aptly a selling point
for alluring customers to buy package tour.

Types of Itinerary
A tour itinerary is usually divided into five different types taking the duties and
responsibilities of tour managers, vendors, coach drivers and escorts, interpreters
and guides into considerations. So that, there are itinerary for tourist, tour manager,
escort or guide, vendor and coach driver. Itinerary may also be classified as GIT,
FIT, tailor-made and special interest itinerary as per the convenience of tourists and
tour operators.

1.Itinerary for Tourists

Itinerary is designed to give elaborate descriptions to help customers or members of
GIT select package tour. It is used as the reference for conducting package tour. A
tourist itinerary is basically a reference for tourists to follow during journey
comprising place of transit, sojourn, arrival and departure time, meal plans, check-
in check-out time, mode of transport, activities etc.

2.Itinerary for Tour Manager

The role of tour manager is crucial to any package tour as he has to perform different
duties from planning to actual operation of the tour. Professional expertise,
knowledge of different travel issues, crisis management and personal experiences
helps in organizing a tour. Tour manager’s itinerary includes the complete details of
tour from first day to last day. Apart from the general details as listed in a tourist’s
itinerary, a tour managers’ itinerary also carries information about alternative
arrangements, contact details, quick references, differential rates and tariff details,
details of coach drivers and escorts and guides. This helps the tour manager manage
the smooth conduct of the tour as well as execute contingency plans if required at
times.

3.Itinerary for Tourist Guide

Itinerary is designed for escort or interpreter or guide and it provides common
information along with specific information to them. A ground operator or handling
agency prepares itinerary containing the information about the name and nationality
of guests, mode of arrivals, name of hotel, programmes, activities, time management
etc. Other instructional details include voucher to be countersigned from guests,
arrangement of loading and unloading of baggage and valuable belongings,
photography, helping physically challenged guests and women. A guide or escort
should essentially have experience of handling FIT and GIT tour, managerial
abilities to handle ground difficulties, crisis management, presence of mind, etc. For
example, a guide can make the tour interesting or boring and it all depends on the
ability of showing places of interest within the specified time. This type of itinerary
contains summary of tours.

4.Itinerary for Accommodation and Transport Operator

Itinerary is prepared for hotels, transporters and other vendors for smooth conduct
of tours. Hotels or transporters shall have to provide services as per guest’s itinerary.
Hotel or transport is a vendor that works for tour operators. This is also called as
vendor’s itinerary. There must not be any deviations from tour voucher. However,
tour operator sends short instructional itinerary or programmes to hotels and
transporting agencies to be ready before the commencement of tours.

5.Itinerary for Drivers

Itinerary is prepared for cab or coach driver to make proper coordination with guides,
hotels and guests. Information for a typical driver’s itinerary includes place and time
of arrivals, parking areas, name of hotel, route to hotel and other sightseeing places,
cleanliness of vehicle, checking air condition, break, public address system, etc. The
summary of guests’ itinerary is generally handed over to drivers to follow in tour.
Driver’s itinerary contains certain instructional information like attending duty with
uniform, starting air condition 15 minutes before the guests boarding coach,
greetings guests, etc. For example, drivers are instructed to reduce the speed inside
the city and other important monuments, buildings and market areas for viewing and
photography.
 13.How can you prepare a travel itinerary if you would like travel two nearby
countries like Singapore and Malaysia? Explain with example.

Itinerary is a systematic method of arranging places of interest. It enhances value

and appeal of package tour and provides maximum satisfaction to customers. The
salability and marketability of any package tour is determined by tour itinerary.
Customers always check nature and type of tour itinerary that provides ample
information about the operation of tour. Places of tourist importance are logically
arranged while taking the interest, convenience, cost, availability of services,
climate, terrain, sunrise, etc into considerations.
Tour operator has the sole responsibility of designing tour itinerary and it involves
several stages of finalizing itinerary. It requires several rounds of survey of tourist
destinations, priority of visits and connectivity. This lesson will present the meaning,
types, nature and importance of tour itinerary.

Background Information for Preparing Itinerary

 Duration of the tour.
 Minimum time for visiting each city
 Purpose of travel and special interest.
 Selecting cities to be included in the itinerary
 Mode of intercity travel. (by road, rail, air)
 Selection of any special air fare or rail fare
 Selecting the hotels to be used.
 First arrival and last departure from international airport.
 Inclusion of places requiring restricted area permits.
 Best time for visiting
Do’s and Do Not’s of Itinerary
Do’s
 Do add all places of halt with date and time.
 Do provide a brief summary of the city(s)/country and the sights.
 Do provide name of the hotel, type of vehicle, time of arrival and departure.
 Do include meal plans.
 Do provide links for additional information about the city, country, sights,
restaurants, hotels.
 Do provide as many relevant maps as possible.
 Do provide names and places written in the local language.
 Do provide unique information about the destination (Ex: scams and customs)

Don’ts
 Don’t add too many details which might cause confusion.
 Don’t leave directions ambiguous. There are lots of distractions when coming
into a new city, be as specific as possible.
 Don’t forget about the nature of group, age group, physical disabilities, eating
habits and language barriers.
 Don’t go overboard on the hotel recommendations. Most hotels are pretty
similar in a given price range.
 Don’t include shops which are not registered, restricted areas without availing
permits etc.
 Don’t forget about restaurant recommendations.

I prepare a travel itinerary two nearby countries like Singapore and Malaysia
for 2 days. One day for Singapore and 2nd day for Malaysia. Here the Itinerary
graph;
 Prepare a travel itinerary for Singapore Country

Day Time Location Activities

8.00 a.m. Start from Hotel Staring the
sightseeing
8.30 a.m. Marina Bay Sands Seeing and
Photography
9.15 a.m. The Singapore Flyer Seeing and
Photography
10.00 a.m. Gardens of the Bay Seeing and
Photography
10.45 a.m. Singapore skyline Seeing and
Day 1 Photography
11.30 a.m. Singapore’s Chinatown Seeing and
Photography
12.30 p.m. Back to the Hotel and take Taste Local
launch cuisines
2.30 p.m. The Sri Mariamman Temple See intricate and
colorful entrance!
4.30 p.m. The Singapore City Gallery See model of the
Singapore city
5.00 pm Back to the hotel

Prepare a travel itinerary for Malaysia Country

Day Time Location Activities

8.00 a.m. Start breakfast and start from Staring the
Hotel sightseeing
 8.30 a.m. Visit Batu Caves Seeing and
Photography
10.15 a.m. Spend your afternoon in Little Seeing and
India and/or Chinatown Photography
12.00 a.m. Back to the hotel and grab a Taste Local
tasty lunch cuisines
2.30 a.m. Visit Petronas Twin Towers Seeing and
Day 2 Photography
3.30 a.m. Experience KL shopping Seeing and
Photography
4.30 p.m. Spend some time at Bangar Seeing and
Village Photography
6.00 p.m. Enjoy a great dinner

7.30 p.m. Explore nightlife in Kuala Seeing and

Lumpur Photography
9.00 pm Back to the hotel

14. How can you help if anyone would like to get help from you to get visa?

1. Figure out which Schengen visa type he/she need

There are many Visa categories, depending on the purpose under which he/she
need to apply for one of the following visa types:
 Transit visa
 Tourism visa
 Visa for Visiting Family or Friends
 Business visa
 Visa for Culture and Sport activities
 Visa for Official Visits
 Study visa
 Visa for Medical Reasons

2. Find out where you need to apply

Depending on how your destination country in Schengen has regulated visa
submission in your country of residence, you will have to file your Schengen visa
application at one of the following:
 Their embassy
 One of their consulates
 A visa center to which the embassy of your destination country has outsourced
visa submission
 The embassy/consulate of another Schengen state to which the embassy of
your destination country has outsourced visa submission

3. Find the most suitable time to apply

Due to the time that the Schengen embassies/consulates worldwide need to process
a Schengen visa, you have an appointed period within which you can file your visa
application.
The allowed period to apply for a Schengen visa is as follows:
  The earliest you can file a visa application: six months before you start your
planned trip.
 The latest you can file a visa application: at most 15 working days before you
intend to travel.
 The recommended time to file a visa application: at least three weeks before
your trip.

4.Filled-in visa application Form

Additional visa application form to be filled up by Foreign Passport Holders
I. Visa application form must be filled correctly. Incomplete applications and
applications with wrong information shall not be processed.
II. Name and other relevant particulars must be filled in as per the details in the
passport.
5. Supporting documents: The visa application should be accompanied with
supporting documents on type of visa applied for.

6. Visa Fee: There is different fee schedule for the amount of fee, for the different
type of visa. Visa fee is accepted only in cash.

15.What are the factors that you need consider in case of pricing the tourism
product? Discussed with example. Do you think that price of the tourism
product is high in our country? Why or why not? Discuss with example.
After ascertaining the cost of a tour package, tour operator analyses exchange rates,
estimates future selling price and finalizes the price of a particular package. The tour
price is not solely determined in terms of the cost but on the basis of expected rate
of return, market share and competitors’ price. There are different approaches to fix
the price of package tour such as total cost and marginal cost method, breakeven
pricing, rate of return pricing, skimming, penetration, going rate, differential etc.
The average price to sell the product for can vary, some of the factors that influence
pricing are: -
 Seasonality: It may vary your price depending on high or low season.
 Operating Costs: The higher the operating costs, the more expensive the prices
will need to be so that it covers all expenses.
 Competition: There is no point pricing the product out of the marketplace and
the company need to stay competitive or be able to justify the high price.
 Demand: People pay more if there is a high demand in a region. Similarly,
they pay less if there is an abundance of choice.
 Tour or Accommodation Details: Different tour types of rooms are reflected
in the package tours for the guests to know.
 Daily Costs (Fixed): To determine the fixed costs associated with operating
business, such as fuel, labor etc.
 Daily costs (Variable): To determine the costs associated with taking
passengers on tour or letting out rooms, such as meals, third party activities,
linen and room cleaning
 Annual Business Costs (Fixed): To calculate the total costs associated with
operating the business, these costs occur whether the tours operating or not, it
remains to be fixed. For example: costs that are fixed include insurance,
marketing, lease payments, bank fees, accounting fees and salaries.
 Average Capacity: The package tour business is based on factors such as
visitation to the region, competitor analysis and customer feedback.
 Accurate Forecasting: is also necessary for another reason. Yet another risk
can arise from the unexpected loss of popularity of a country where the tour
operator has contracted heavily.
 Political or Security Concerns or Natural Disasters: Typhoons or volcanoes,
or currency movements or new aviation or tourist taxes influence the cost of
 package tours. There is a high level of price elasticity between holiday
markets.

Holiday Pricing
Tour operators set prices to ensure that as many aircraft seats and hotel beds are used
as possible. The main components are:
Season Pricing
Package holidays are normally organized into two seasons: Summer and Winter. In
the summer, more people wish to go to their holidays in August than in May.
However, tour operators need to keep their planes as full as possible throughout the
year. This is achieved by varying the prices to reflect the varying demand for
holidays.

These are the reason I think that price of the tourism product is high in our country

Seasonality
 Fluctuations in business between high and low seasons
 Operating costs includes general overheads
 Promotion and labor costs which can vary, depending on business peaks and
 troughs.
 Competition

Regional Departures: The prices for flights from regional airports are set to keep
aircraft as full as possible. Tour operators are keen to provide regional departures
for people like to travel from their local airport.
Single Room and Other Accommodation Supplements: Most tour operators
contracts with hoteliers and apartment owners are based on a price per room, whilst
their brochure holidays are sold per person. As a result, per person price for a single
traveler includes the whole room cost. This applies to both single rooms in hotels
and self-catering units.

Tour Operators and Exchange Rates

A high proportion of the costs are incurred from the foreign currencies, for hotels,
transfers, airport charges etc. in the destination country. Also aviation fuel is priced
in US dollars.

16.Discuss the different benefits of the package tour? How can you suggest a
package tour operator to improve his/her package tour operation for the
students?
Package tour is a generic tour operation business. The business of FIT and GIT
package tour has been diversified to cater emerging markets. It is not only a
profitable business venture but also it is dependable and sustainable given the trends
of travel in the recent years.
When a tourist plans and books a trip to a destination for leisure and recreation
purpose, they buy an experience comprising a wide range of products and services.
A package, from a tourism perspective, is the linking of a number of individual
products/services into a single experience, typically for a single price. A package is
a saleable item, with a set price for a set period of time. There is a broad range of
products and services that can be linked in a package.

Different benefits of the package tour

There are different benefits of the package tour of packaging from the visitors and
company’s perspectives vary with the type of design and deliver of package tour
operator.
 A package provides one-stop shopping, often at one, all-inclusive price.
 A package costs fewer prices than when the customer assembles the same
product into an experience themselves.
 Tourists first look for a destination or areas to visit. They are typically based
on a region or area with a variety of attractions and services. When a
destination is identified, more detailed planning is carried out to streamline
the design and operation of package tour. Some perceive many things about
the entire trip ahead of time and some after the tour. With a detailed and fully
planned itinerary, one can maximize the experience. Others use packages as
only part of a larger experience.
 Growing FIT Market: There is increased demand for packages as part of an
independent travel experience with this growth.
 Creating Competitive Advantage through Packaging: By creating a new
experience through packaging, tour operator companies can create a
 competitive advantage by offering a combination that is not offered by others.
Packages are successful at maintaining the revenue streams without capital
investment.
o Tour packaging encourages repeat business.

o It makes the experience ‘new ‘by simply adding a new feature or

theme, a tour package is seen as ‘new’ and provides new experience

to visitors.

o In many packages, tour operator joins forces with other tourism

suppliers in different businesses to serve a different clientele like

hotels, airlines and food and beverage. Any marketing and

advertising company, partnership with other suppliers within the

package may leverage its marketing resources for stronger market

reach.

o Package creates partnership opportunities with tourism suppliers.

There are many questions about how a package really works – between the partners
of the package, for company’s own operation (internal operations plan) and between
the visitors and the tourism suppliers. By completing an operation plan, one can be
better prepared for the ‘unexpected’ because time is taken to anticipate all
contingencies.
It is

important for tour operator to make sure that all the frontline staff members who
interact with visitors when they inquire, book and arrive understand the complete
package. Staff members can contribute significantly to the design and delivery of a
package. These are the following points that must be taken into consideration while
operating packages.
 Sell the package yourself
 Sell in co-operation with package partners
 Sell through third party (e.g. DMOs/DMCs)
 Travel trade partnership: -
 Tour Operator
 Tour Wholesaler
 Local Travel Agents
  Outbound Operators
 Member-based organizations

Tourism Marketing and Promotion Strategies for Package Tour

Promotion a key method to spread the word about tour packages to customers,
stakeholders and the general public. Once a tour operator identifies their target
market, they gain good idea of the best way to reach them. It uses a mix of
advertising, personal selling, sales promotion and public relations to promote tour
packages.

Advertising
Advertising is a form of communication designed to persuade potential customers
to choose tour packages over competitors. Success of advertising depends upon how
tour operators making their package know to visitors. It should be a planned,
consistently with the activities that can keep the name of package in the mind of the
consumer. These are the following key strategies adopted for package advertising.

 Make a tour package most familiar to visitors

 Create goodwill and build a favorable image of company.
 Attract customers to find out more about tour package.

Sales Promotion
Sales promotion includes short-term incentives or activities that encourage the
purchase or sale of a package. It should target toward final buyers (consumer
promotions), business customers (business promotions), retailers and wholesalers
(trade promotions) and members of the sales force (sales force promotions). Some
sales promotion activities for tour package are as follows:
 Point of purchase display material like poster, banners, broachers etc.
 Competitions, coupons and games
 Loyalty reward programs
  Seminars and workshops about the packages
 Conference presentations
 Trade show displays like SATTE, KTM, WTM and ITB etc
 Telemarketing and direct mail campaigns
 Newsletters
 Event sponsorship
 Capability endorsement
 Reward incentives linked to purchases or sales
 Reseller staff incentives
 Commissions

Public Relations
The Public Relations Institute of Australia (PRIA) defines Public Relations (PR) as
‘the deliberate, planned and sustained effort to establish and maintain mutual
understanding between an organization (or individual) and its (or their) publics.
Typical PR tools include:
 Media releases: news creation and distribution
 Special events: such as news conferences, grand openings and product
launches
 Speeches and presentations
 Educational programs
 Annual reports, brochures, newsletters, magazines and Audio-Video(AV)
presentations
 Community activities and sponsorships

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