What is a travel agency? how do travel agencies work and what are the roles played by different departments in the travel agency?
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Added: Jun 16, 2022
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What is Tourism Industry and Tour Package and Tour Costing
Travel agency A travel agency is a private retailer or public service that provides tourism related services to the public on behalf of suppliers such as airlines, car rentals, cruise lines, hotels, railways, and package tours. Travel agencies have a separate department devoted to making travel arrangements for business travelers and some travel agencies specialize in commercial and business travel only.
There are also travel agencies that serve as general sales agents for foreign travel companies, allowing them to have offices in countries other than where their headquarters are located A travel agent is a middleman between the service providers and the passenger.
Travel Agency Table Organization
Types of Travel Agency
Retail Travel Agency : A retail travel agency sells tourists products directly to the public on the behalf of the products suppliers and in return get commissions. Some package tour is sold in two ways i.e., on a commission basis and mark up the price.(travel agency) Wholesale Travel Agency: These agencies are specialized in organizing package tours, which are marketed to the customers/tourists through the network of a retail travel agency or directly to the prospective clients ( if wholesale travel agency has a retail division). A wholesale travel agency purchases tourists’ product components in the bulk and designs tour packages.( Tour Operators)
Function of Travel Agency
Tour Package “A total tourism product consisting of transportation from market area to the destination, accommodation at destination and recreational activities performed by the tourists”. Packages are largely developed by travel intermediaries such as tour wholesalers and operators, incentive travel planners and convention/meeting planners. Moreover, packages are also developed by primary service providers like hotels, airlines and coach and car rental companies
Combination of A Package Tour
Example of Package Tour Name of the package tour : Thailand Surprise No . of days: 05 N / 06 D Price of tour : 26,500/- Destinations to be covered : Bangkok, Pattaya Tours includes : Air-fare, accommodation, s/s , daily breakfast, buffet Indian dinners, transportation, travel insurance ,tour manager service.
Components of Tour Package
TRANSPORTATION: It includes return airfare/train fare etc. ACCOMODATION : It includes stay in hotels, motels, resorts on twin sharing basis etc. TRANSFERS : It includes pick- up from airport to hotel and vice versa. SIGHTSEEINGS : It includes local sightseeing's in car / coach. MEALS : It includes Buffet Indian Breakfast, European Plane (EP), Continental Plane (CP), Modified American Plane (MAP), American Plane (AP). TRAVEL INSURANCE / MEDICAL INSURANCE : It is an important service in these days. TOUR MANAGER SERVICE : It includes services of a tour manager or an escort (Tour Guide). In this the tour escort or tour manager travel with the tourist.
INDEPENDENT TOURS : Independent tours are prepared for those who want to travel independently . Some travel companies offer independent tours to inbound, outbound and domestic tourits. ESCORTED TOURS: It is also known as ‘ Conducted Tour ’.When a company includes the services of a well educated trained tour manager in it’s package tour, the tour is called as an escorted tour . The main duties of an escort are to receive the guest at airport, help in custom clearance, greeting etc.The escort accompany the group till start of the tour to end. HOSTED TOURS: A hosted tours means when an agency utilities the services of another agency at a particular destination. For example-A group of french tourists are coming to india.Thus at various destinations different travel agency host them.
INCENTIVE TOURS: It is a fully paid holiday which is given by the company to his employees as a reward. It is given to motivate the employees. For example- A government provides the scheme of leave travel concession to employees once in a year . FREEDOM TOURS: These tours are designed as per the choice of tourists. The tourist are choose and plan that how they want to travel and enjoy their holidays. For example- ORBIT Travel Agency promotes these tours.
GROUP INCLUSIVE TOUR : It is pre-paid tour, in which tourist travel in group. Size of group is normally considered as 15PAX. All the members of the tour are required to stay together. It is generally a discounted tour. FOREIGN INDEPENDENT TOUR : Foreign independent tour (FIT) are wealthy (rich) and affluent (rich) travelers who travel independently. They get their tours tailored by travel agency, they know everything about their tour
Classification of Package Tour Regular Tour Packages : Assembled based on the need or interest of a target market. Ad Hoc Tour Packages : Tour package that are tailor - made to the requirements and specification of a particular traveler or group of travels.
Costing Process in Tourism Itinerary Airline Seats and Railway seats Hotels and Meals Ground Arrangement
Hotels Different types of hotels Types of rooms Tariff plans Extra bed charges Taxes Meals
Differential Hotel Tariff Plans Seasonal Regular Season Off season Weekend Tariff. Special rates for Corporate Discounted Rates for groups
Hotel Availability of rooms Exact no of Peoples Chain of hotels- Oberoi , Taj , etc. Regular Contact and Good Relationship Extra Bed: INR 1800 DB + INR 300 = INR 2100 INR 2100/3 = INR 700 PP
Meals Continental Plans (CP )= Room + Breakfast Modified American Plan (MAP) =Room + Breakfast or any one Meal. American Plan (AP)= Room +All Meals. European Plan (EP )= Only room – No meals. A La Carte = According to the menu, Pay their own bills Most Travel Agents don't include Lunch because of Sight seeing.
Airline & Railway Travel Agents should have the knowledge of airfares for different sectors as required for Itinerary or it can be Supplement. TA should be familiar with train names, routes, schedules, and fares. Indian railways allow 90 days prior ticketing . Also Tatkal Seva is available
Road Transport Pick-up and Drop Facility from Airport / railway Station to Hotel, Visiting places of attractions or Sight Seeing. Travel Agent should contact local transport operator for calculating the cost of the vehicle for entire tour. Drivers charges, parking charges, toll taxes etc. Km travel/ day. Extra charge for extra km Ac/ Non Ac vehicles
Cruise Cruise Packages for Three to five days. Cost varies for different categories of rooms, cabins, on board facilities etc Local guides charges English speaking or Foreign Language speaker. Explain monuments or other sight seeing Thus costing includes total Guides charge divide per person
Miscellaneous Entrance fees – Museums, Historical forts, palaces, Churches and similar charges. Cultural Show in the evening Porter age, Desert safari Toll Taxes
Pricing Mark-up In order to earn profits the travel agents and travel tour operators add a mark up to the total cost before quoting the price to the client. Generally 7-15% commission Gross rate Supplier gives to the Travel Agent which includes the commission generally 10%.
Preparation of Cost Sheet A document that reflects the cost of the items and services required by a particular project or department for the performance of its business purposes. Cost Sheet example Travel Budget Calculator