Introduction to the Travel Industry

History of tourism Interest in exploration, tracing back the history of the human race through famous travelers such as Zheng He and Marco Polo Travel took many forms :- travel on land by foot, horseback, or camel, to travel on water by ancient sailing ship

History of Tourism Modern modes of accommodation :- Railroad, cruise ship, airplane, automobile and motorcoach First travel agent was probably Thomas Cook, who arranged the first organized tour by rail in 1841 in England

History of Tourism “Cook’s Tours” of the continent in Europe, personally escorted by Mr Cook himself, soon became fashionable for the wealthy Modest beginning was the foundation of Thomas Cook and Son, today one of the largest travel organizations in the world

History of Tourism Mid-nineteenth century travel agency focused on rail transportation and on steamships for intercontinental travel

The Tourism Industry Operations of a travel agency encompass the sale of wide variety of travel products and services, and the travel agency plays a major role in the tourism industry

The Tourism Industry Definitions :- Tourism :- Industry that includes transportation, feeding, lodging and entertainment of tourists Tourist :- Temporary visitor who travels to a location other than where he or she resides for a variety of reasons, including leisure and recreation, study, business, VFR, or to a convention

What is a Travel Agency? Sales office that sells to customers many of the various components of travel (transportation, accommodation, sightseeing, car rentals, etc.) Offered to the agent by travel suppliers in return for a commission.

What is a travel agency? Service business and relies on the following factors for its success :- Travel agency reputation: word of mouth advertising Conventional advertising: radio, television, direct mail, newspaper ads Convenience of location/hours

What is a travel agency? Convenience of location/hours: the agency may be selected because it is located close to the client’s home or business, or its hours of operation may be very convenient for the client. Travel decisions are often made in the evening or on weekends, therefore location of the travel agency is very important

Why use a Travel Agent? Some reasons customer preferred to use Helps to get the most value of money Assures the highest quality accommodation and other services Provides objective opinions Helps to ensure a trouble free trip

Why use a Travel Agent? Provides someone to call for when things go wrong

Types of Travel Agencies Small : Owner/manager operated with one or two staff; caters to the independent traveler; operates base on word-of-mouth with little or not advertising

Types of Travel Agencies 2) Medium : Staff of eight to ten; a blend of commercial and vacation travelers, small scale of advertising

Types of Travel Agencies 3) Large : Either a single office with dozens of staff, or various branch offices; may employ specialists; has more extensive advertising; often fully equipped with in house computerized accounting system, and fully computerized reservation and ticketing systems

Types of Travel Agencies 4) Franchise : Manager operated, using the name, reputation, advertising, and promoting of the franchisor in exchange for a royalty payment based on sales volume, Franchisor also assists in designing a marketing plan and in negotiating rates with suppliers

Types of Travel Agencies 5) Cooperative or Consortium :- Group of fully independent agencies to obtain benefits of large scale advertising and increased sales volume. Agreements with suppliers for a special rates or higher levels of commission, may assist in making arrangements with computer companies, or air-tickets printing

Types of Travel Agencies 6) Chains and associated offices :- company with a large number of agencies in several countries, using standardized systems and sales methods, and advertising extensively on a national basis, relying on reputation and buying

Categories of Agency Business 1) Commercial or Corporate Travel :- Tend to lead to repeat business and to vacation travel for business staff, profit depends on high volume, requires frequent changes to travel plan, requires more favorable credit terms and additional services such as free ticket delivery of after-sales services

Categories of Agency Business 2) Pleasure or leisure travel :- Arrangements for holiday travel, requires more knowledge of the destination product, competition for leisure travel is fiercely

Categories of Agency Business 3) Ethnic travel :- movement of specific ethnic groups from and to their country of origin; often dependent on an individual consultant’s reputation within that ethnic community

Categories of Agency Business 4) Group travel :- Travel by a number of people together is using the same transportation, accommodation, and other facilities; in order to obtain bulk- buying power.

Categories of Agency Business a) Special interest : travel for a particular interest or cultural events Religious pilgrimages :- tours by a religious group c) Convention travel :- travel to a destination for a common purpose e.g. AGM of a professional

Categories of Agency Business d) Sales incentives: travel used to increase sales as an incentive to the staff of a business or to attract new customers