CHAPTER I

INTRODUCTION

1.1 Background

The most of people made their way using a travel agency. The reason why
they are using a travel agency is easy and practical. They do not need to arrange
their own departure for all has been available in the travel agency.

Travel agency is now more accessible because everyone can access with
their mobile phones. Simply by opening the application they have booking tickets
and only a single tap.

For know more about the travel agency. On this occasion, the writers will
give information about anything that includes the travel agency.

Based on this background, the authors are encouraged to make this paper
which discusses the definition, functions, types, structure, benefits, rights and
duties, revenue, linkages and how to establish a travel agency.

1.2 Formulation Of The Problem

1. What is definition of Travel Agency?
2. What is function of Travel Agency?
3. What are the types of Travel Agency?
4. How is the structure of Travel Agency?
5. What are rights and duties in Travel Agency?

1.3 Purpose
1. To know about definition of Travel Agency
2. To know many functions of Travel Agency
3. To know many types of Travel Agency
4. To know who was involved in the organization of Travel Agency
5. To know kind of rights and duties in Travel Agency

CHAPTER II
CONTENT

2.1 Definition

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 A travel agency is a private retailer or public service that provides travel and
tourism related services to the public on behalf of suppliers such as activities,
airlines, car rentals, cruise lines, hotels, railways, travel insurance, and package
tours. In addition to dealing with ordinary tourists most 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.

2.2 Function
1. Provision of Travel Information: This is one of the primary functions of
a retail travel agent. From the point of view of the tourist and to the
general public is to provide necessary information about to travel. This
information is provided at a convenient location where the intending
tourist may ask certain questions and seek clarification. This is the very
specialize job and the person behind the counter should be a specialize
having excellent knowledge of various travel alternative plans. It should
be in a position to give up to date and accurate information regarding
various services and general information about travel the presentation to
the potential customer must be force full. A good travel agent is
something of personal counselor who knows all the details the travelers
and also the needs and interest of the intending travel. Communication
plays a key role in providing any kind of information. The person behind
the counter should be able to communicate with the customer in his/her
language. The knowledge of foreign languages in front desk in any
organization in service industry.
2. Preparation of Itineraries : A tourist journey is characterized by an
itinerary using various means of transportation to link one destination
with another. Preparation of different types of itinerary is another
important function of travel agencies. A travel agent gives advice to
intending traveler on the various types of program which they may

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 choose for their business or holiday travel. The study and relisation
itineraries call for a perfect organization as also knowledge of the desire
of the client.
3. Liaison with provider of services : Before any form of facilities is offer
to the client by a travel agent contract have to be made with the providers
of various services. These include transport companies, hotels properties,
the providers of surface transportation like car rental, coaches, and local
transport for sightseeing and also for general services requirements. The
work carried out under these heading is mostly done by the owners or the
senior employees of agencies concerned.
4. Planning and Costing Tours : This job is very interesting and at the
same time very challenging. The job cost for a great deal of incentive and
advance knowledge.
5. Ticketing : Selling tickets to clients using different modes of
transportation like air, rail and sea is another function of travel agency. It
requires though knowledge of schedule, fare of various modes of
transportation.
6. Provision of Foreign Currency : To intending travelers is another
specialized activity of travel agents. The knowledge of converting for
currencies is an essential requirement for the staffing dealing with such
responsibilities.
7. Insurance : Both for personal and belonging is yet another important
activity of travel agencies

2.3 Types of Travel Agency

According to the international institute for the unification of private law
(UNIDROIT), travel agency can be of two categories.
1. An Intermediary Travel Agency
It undertakes as intermediary to act for another, in obtaining either a
journey or a sojourn possible in return for the price for the services.
2. An Organising Travel Agency
An organizing Travel Agency undertakes to organize for the public,
a journey or sojourn comprising a series of services.

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 These two categories also known as travel agent. Another nomenclature
for travel agency could be as:
a. Wholesalers
A wholesaler as he called specializes in putting together tour offerings,
which marketed to the public through a network of retail agents or airlines.
He does not deal directly with the consumer unless he is also operates at
retail level. A wholesaler travel agent may design tour packages marketed
under his agencys name, or he may take land packages already assembled
by a ground operator and combine them with air or a surface transportation
to form new packages.
b. Retail travel agents
The retailer travel agent or retailer sells travel services directly to
costumers. He acts as agent.

2.4 Travel Agency Structure

The system of working of a travel agency varies from unit to unit and depends
largely upon the size and type of business handled by it. The basic organizational
set up almost remains the same in all the cases. In a small travel agency there are
two to five employees who deal with sales and finance and accounting. They all
work under the general supervision of the manager/owner.
In a medium size travel agency, the number of employees may be up to 12.
The general manager reports to the president or owner. He is responsible for daily
operation of the agency. The finance and accounting specialist or a small finance
and accounting department handle all the accounting and automation tasks. In
case the agency is dealing with the outside sales more financial and accounting
executives may be needed.
Generally a large brand agency with branch operations has separate divisions
for operation and marketing, each reporting to division head/vicepresident. Each
branch has its own manager and sales agents. Finance and accounting department
performs all functions relating to bookkeeping, filing and automation. Sales

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agents are divided into two departments commercial and leisure, with an agent
supervisor and training supervisor for both departments.
The marketing division employs advertising director in addition to finance and
accounting executive who handle outside sales. Managing a travel agency
ensures number of activities and responsibilities, such as :
1) General Management
2) Financial Planning and Reporting
3) Advertising and Public Relations
4) Sales and Marketing
5) Customer Services and Ticketing
6) Book-Keeping, Invoicing and collections
7) Purchasing, Inventory Maintenance and Control

8) Personnel Recruitment, Orientation and Training

2.5 Benefits of Using a Travel Agent

1. Save Money : Strong working relationships with travel suppliers and the
latest in computer reservations technology enable travel agents to access
the most up-to-date information on how to get you the best value.
2. Traveler Advocates : Your best interests are the priority. ASTA (The
American Society of Travel Agents) has a long-standing record of fighting
for consumer rights and ASTA member travel agents are required to adhere
to a strict Code of Ethics.

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 3. Convenience : The ASTA membership includes travel agents across the
country and throughout the world, most of which offer one-stop shopping
for all travel arrangements.
4. Service : ASTA member travel agents are knowledgeable and active in the
industry. The Society provides education, training and resource materials
to its members to equip them with the tools to offer the highest quality of
service.
5. Agents Will Go the Extra Mile : Agents work for you and will do
everything they can to meet your travel needs. Some agents literally go
that extra mile to help their clients. One ASTA-member agent even went to
Ethiopia to escort two adopted orphans to the US.

2.6 Rights And Duties Of A Travel Agency

In many countries, the activities of travel agencies are authorized, controlled
and limited by the state. Such regulations have often been enacted for protecting
customers and guaranteeing professional standards. Thus a travel agency.
1. Must look after the rights and interests of its customers;
2. Must hand them a dated and stamped ticket;
3. Must see to it that the customer compiles with frontier regulations, such as
personal documents, passport, visas, custom declarations etc.
4. May terminate the contract in certain cases and in certain conditions
stipulated before hand in which case the customer may be entitled to manage
up to a certain amount.
5. Recognize the travelers right to terminate the contract provided he pays the
agency for all the expenses incurred and waive the deposits made in advance.

2.7 Travel Agency Revenue

A travel agency runs on the commission received for providing travel and
travel related services to its customers. Some of the incentives estimated as
receivable a IATA (International Air Transport Association) agent is.
1. Sale of International tickets 5%
2. Sale of Indian Airlines tickets 5 %
3. Sale of other domestic airlines tickets 5% (could vary form airline to airline)
4. Sale of Indrail pass in Indian Railways to foreigners 10% (if you are
authorized Railway booking agent)

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 5. Hotel bookings - 10% on room rates only (depending on your tie-up with hotel
groups and individual hoteliers)
6. Cruise booking (10% to 20%)
7. Car / Coach hire - approx 10%
8. Inbound tours - Quotations are normally given with hike up between 10 20%
9. Package tours - 10%
10. Foreign package tours offered by local travel agents commissionable to other
travel agents are either a fixed sum per head or a maximum of 10%.

The profitability of the agency will depend on how much the above
commissions are passed on to the client. Due to very stiff competition nowadays,
the travel agencies have to part with a significant part of the commission earned
and so the margin of profit is very small. This makes it doubly important to ensure
that the agency is run efficiently and all unnecessary expenses be curtailed.

2.8 Linkages Of A Travel Agency

1. Airlines
International Air Transport Association operates a network by which
travel agencies sell airline tickets and receives Commission thus the sale of
airline tickets is highly regulated and strictly controlled. The agency
commission range from 5 to 11 percent but most major airlines offer
additional incentives i.e. cash bonuses and over ride commission. However in
some cases when a travel agency purchases air tickets in bulk the margin of
commission will be high. This largely depends on relationship between the
two organizations. The producer of sale of domestic airline tickets is different
from country- to country and even the rate of commission also varies. Today
airline ticketing and reservation is almost entirely automated.
2. Accommodation Companies
Most hotels and other lodging companies including major Indian and
international hotel chains pay commission to the travel agencies, (the rate

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 varies from hotel to hotel) however hoteliers in dealing with travel agencies
are more information and less regulated than the airline companies
Interestingly many hotel and hotel chains participates in computer reservation
system permitting hotel reservation to be made at the same terminal, which is
used to sell airline tickets. The commission received from hotels is the
second largest component of total agency revenue. But if the purchase is
made in bulk than the profit is based on the negotiated prices and accordingly
the profit may be higher or lower.
3. Cruise Companies
The cruise companies are informally regulated by its Own governing body
i.e. cruise lines association which must approve any travel agency that.
Desires to sell booking on behalf of any member of a cruise company the
raise companies also offer a complete package including sea travel
accommodation food entertainment and sometime air travel also. The
commission varies room 10 to 20 percent. However most cruise package tour
are sold to the public through travel agencies. It was Thomas cook who
brought first group of foreign tourist in India through sea rout.
4. Insurance Companies
Today many travel companies have included travel insurance in their
package tour like Thomas cooks. The company insured the travelers to protect
them against accident, loss of baggage and missing flights. Successful travel
agency management has to make close contact with Insurance companies to
obtain insurance polices for its clients. Recently the Oriental Insurance
Company has introduced two new travel policies for domestic as well foreign
tourist i.e. Suhana Safar for domestic travelers And Videsh Yatra Mitra for
foreign travelers. Incidentally the foreign policy is an upgraded version of
overseas medical insurance.
5. Banking Companies
Travel agencies offer banking facilities to the traveler like clearance of
traveler cheques and arrangement of foreign currency. Only those travel
agencies, which are authorized by the reserve bank of India under Foreign
Exchange Regulation Act 1973, can deal with foreign currency. Banking

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 companies give commission to travel agencies on traveler cheques and
currency exchange.
6. Educational Institutions
An agencys success depends almost entirely on the competence of
management and expertise of the staff. It develops manpower planning in
such a way that will help to conduct on campus selection and match the
student to the requirements of the company. The linkage between travel
Companies and tourism education institutions will solve the problem of
human resource requirements of present and future. Therefore a travel
company needs to maintain close contact and interface with tourism
Education intuitions. Many chief executives from the industry are the
members of the advisory board of the intuitions.
7. Travel Trade Associations
These associations provide a common platform to solve many problems of
the members such as training, common code of conduct airlines commission
to any other. There are a number of travel trade associations like TAAI,
ICAO, ASTA, IATA, and PATA, WTO, that are quite active in the Promotion
of travel trade at global. Essentially every travel company should be this
association to avail financial and non - financial incentives and commissions
from the airlines, hotels, railways etc.
8. Other Organizations
The travel agencies need to maintain close ties with many other
organizations offering travel related service like cultures and entertainment
organizations foreign tour companies regional passport office, department of
tourism both at center and states sports operators transport operators food and
beverage business etc. in fact these organizations play a vital role in making
travel a complete product. Travel companies provide business to above cited
organization and in return receive commissions. However there are few other
originations that help the agency to run travel business smoothly and promote
India as a tourist Destination. Technically a Travel Company cannot work in
isolation but is interdependence with other travel related enterprises.

2.9 How to Establish a Travel Agency

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1. Work in some aspect of the travel business and take credit and non-
credit classes related to the travel industry. Learn about all aspects of
international travel --- visas, passports and customs --- as well as ticketing
and booking accommodations both domestically and abroad. A degree in
travel tourism, geography and/or business gives you an extra boost.
Speaking a foreign language is a major plus.

2. Choose the type of travel agency model that fits your aspirations:
Internet, home-based, retail, franchise or specialty travel. Website-
based travel agencies, operated from your home or a small office, are
plentiful and competition is tough. A well-designed site with excellent
navigation tools, quick-loading images and pithy copy can grab browsers'
attention and build a healthy clientele. Opt for a storefront if you excel at
in-person sales, franchise if a turnkey operation is more your style, or plan
to specialize in group tours.

3. Obtain business licenses and permits required to do business in your

community. Set up an operational center and furnish it with a computer,
desk, phone and Internet connection. You'll need a great name for your
travel start-up as well as business cards. If you have no cash to invest in
your agency to get it off the ground, you might need a line of credit to
keep a roof over your head until clients start coming your way.

4. Know the law. While no federal laws govern travel agencies, Department
of Transportation regulations govern airfare rate changes, travel
advertising and charter flight sales. Six state legislatures passed
advertising and charter-related travel laws as of 2011: California, Florida,
Hawaii, Iowa, Nevada and Washington, so know the law as it applies to
your state. If you're establishing a travel business in Delaware and
Louisiana, you must obtain an occupational license to run your agency.
New York and Massachusetts travel agencies are subject to unique

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 consumer disclosure and regulation laws and Illinois imposes an escrow
account requirement on all travel agency start-ups.

5. Establish relationships with airlines, bus companies, cruise lines, tour

agencies, travel and tourism bureaus and major hotel corporations.
Every relationship adds to your ability to offer the best, most
comprehensive travel help possible to your client base. Perhaps the most
critical relationships of all are with the Airlines Reporting Corporation and
the International Airlines Travel Agency Network. Your agency must
prove that it is financially sound and have on staff at least one experienced
travel agent to join both networks.

6. Remain in the loop. The travel business moves as fast as a 747.

Consumers working with travel professionals are usually more confident
about putting their travel plans into the hands of agents who work hard to
stay abreast of travel trends, protocols and new, novel destinations. You
can also add to your stature by taking classes through The Travel Institute
and by earning Certified Travel Counselor (CTC) and/or Certified Travel
Industry Executive (CTIE) certifications.

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 CHAPTER III

CLOSING

3.1 Conclusion

A travel agency is a private retailer or public service that provides travel

and tourism related services to the public on behalf of suppliers such as activities,
airlines, car rentals, cruise lines, hotels, railways, travel insurance, and package
tours. The function of travel agency is provision of travel information, preparation
of itineraries, liaison with provider of service ticketing, provision of foreign
currency and insurance. There are two types of travel agency. There are
intermediary travel agency and organizing travel agency.

There is any benefit of using travel agency. You can save money, traveler
advocates, convenience, service and agents will go the extra mile. Kinds of rights
and duties in travel agency:

1. Must look after the rights and interests of its customers;

2. Must hand them a dated and stamped ticket;
3. Must see to it that the customer compiles with frontier regulations, such as
personal documents, passport, visas, custom declarations etc.
4. May terminate the contract in certain cases and in certain conditions
stipulated before hand in which case the customer may be entitled to
manage up to a certain amount.
5. Recognize the travelers right to terminate the contract provided he pays
the agency for all the expenses incurred and waive the deposits made in
advance.

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 REFERENCES

https://en.wikipedia.org/wiki/Travel_agency

https://smallbusiness.chron.com/establish-travel-agency-10279.html

https://travelsense.org/tips/TipsDetail.cfm?ItemNumber=13670

https://bieap.gov.in/Pdf/TTPaperIIYR2.pdf
https://m.youtube.com/watch?v=FdNo6nogxZw

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