Tourism Business

Ramakrishna Kongalla

 The Indian Travel Agencies like Jeena !o", #ee $uirhead India Pvt" #td, and Jamnadas !o" #td at %om&ay also o'erated in&ound and out&ound tours (or Indian and )oreigners" In *+,-, the (irst travel agency .as (ounded in the Jeena and !om'any .as (ounded as the (irst travel agent in *+,- in $um&ai to cater to the domestic travel needs" The com'any made use o( the vast o''ortunities o( the gro.ing &usiness and ventured into the cargo and courier &usiness" /u&se0uently a(ter, it entered into di((erent com'onents o( travel related services like ticket &ooking, hotel reservation, 'ackage tour, trans'ort arrangements, etc" The com'any along .ith other travel agents made much 'rogress in

Introduction

Travel Agency Travel agency is a (irm or cor'oration 0uali(ied to 'rovide tours, cruises, trans'ortation, hotel accommodation, meals, trans(er, sightseeing and other elements o( travel to the general 'u&lic as (orm o( services and (inally acts as a retailer" This is a &usiness organi1ation that is collectively set u' to accom'lish missions, goals and 'ur'oses .ithin a (ormal structure" All management theories are a''lica&le to manage the com'le2 &usiness net.orks" It re0uires much coordinated activities like division o( la&our, hierarchical authority and res'onsi&ility" In addition to dealing .ith ordinary3tourists3most travel agencies have a se'arate de'artment devoted to making travel arrangements (or &usiness travelers and some travel agencies s'eciali1e in commercial and &usiness travel only" There are also travel agencies that serve as3general sales agents (or (oreign travel com'anies, allo.ing them to have3o((ices3in3countries other than .here their3head0uarters3are located"

Tour Operator An organi1ation, (irm or com'any .ho &uys individual travel com'onents, se'arately (rom di((erent su''liers and assem&les them into 'ackage tour &y adding certain value .hich is sold .ith their o.n 'rice tag to the 'u&lic directly or through the middlemen 4Travel Agent5 is called a tour o'erator" Tour o'erator is a 'ro(essionally managed com'any .hich has much e2'ertise and e2'erience in the 'lanning and o'eration o( 're'aid and 're'lanned vacation 'ackages (or the general 'u&lic directly or through retail travel agents" The terms tour o'erator and3tour .holesaler3are o(ten used interchangea&ly, and are treated here as having identical meanings

7i((erence &et.een T8
Tour Operator It is a .holesaler It is 'rinci'al agent or (oreign travel agent amend the tour itinerary and 'rogram delight(ul and value added tour itinerary located in the mega cities international trans(er (rom hotel to air'ort and vice versa Ade0uate e2cursion tours It acce'ts (oreign currency generating ne. ideas and attractions in the 'ackage mem&er o( international &odies like PATA and A/TA
Travel Agent

TA

It .orks as a retailer and sells 'ackage tours on &ehal( o( the .holesaler It is an intermediary &et.een tour o'erators and tourists It (ollo.s tour itinerary sightseeing tours and e2cursion tours, air'ort arrival and de'arture trans(er, check in and check out time in the hotel It acts as a local agent to con(irm and recon(irm the services Pro&lem related to the tours is solved &y the travel agents mem&er o( national &odies like TAAI and IAT8 terms and conditions (or commission .ith 'rinci'al su''liers

8rigin

!o2

Kings3is oldest travel agency in the .orld

modern travel agency (irst a''eared in the second hal( o( the *+th century Thomas !ook, in addition to develo'ing the3'ackage tour, esta&lished .ith the3$idland Rail.ay %ritish 'ioneer travel agencies .ere 7ean 7a.son, the3Polytechnic Touring Association3and the3!o:o'erative ;holesale /ociety" 8riginally, travel agencies largely catered to middle and u''er class customers, &ut the 'ost:.ar &oom in mass:market 'ackage holidays resulted in travel agencies on the main streets o( most %ritish to.ns, catering to a .orking:class clientele, looking (or a convenient .ay to &ook overseas &each holidays"

Operations travel agency's main (unction is to act as an3agent selling travel 'roducts and services on &ehal( o( a su''lier unlike other retail &usinesses, they do not kee' a3stock3in hand /ell the inventory got on discount and ac0uire 'ro(it 3include the sale o( in: house3insurance,3travel guide &ooks,3timeta&les,3car rentals, and dealing in the most 'o'ular holiday currencies

Commissions o'erate on a commission:&asis com'ensation (rom the3airlines,3car rentals,3cruise lines,3hotels,3rail.ays,3sightseein g tours,3tour o'erators, etc commission consists o( a set 'ercentage o( the sale" most airlines 'ay no commission at all to travel agencies In some 'arts o( asia its 1ero = commission

 HOTELS *- :,- = some accommodation 'roviders 'ay more than ,'er cent" /ome 'ay room and (ood (ree (or grou' leader" /ome do not 'ay at all" /ome 'ay overrides also" ?ational and international chain hotels and resort com'anies 'ay commission regularly" They usually negotiate the t.o commission rates (or 'eak and o(( 'eak 'eriod" FOOD *-:,- = /ome 'ay (ree meals and &reak(ast to the grou' leaders, escorts or guides" /ometime, commission is not 'aid i( it is not a su&stantial &usiness" ENTERTAIN ENT *- = /ome negotiate .ith the tour o'erators (ree ticket and some times do not 'ay also i( it is not &ooked in advance" CAR RENTALS < @ *- = It is very standard" The average commission is < =" !om'anies also o((er cash and (ree trans'ort (or (amiliari1ation tri' o( the 'rinci'al agents"

TO!RS *-: ,- = The common 'ractice o( commission amount is *- =" /ome re.ards the retail agent over the total &usiness or target &usiness" /ome also 'rovide (ree 'ackage tour to the agents and its sta(( and (amily mem&ers" CR!ISE LINES *-: *< = The average commission is *- = &ut in certain cases, &onuses and overrides are 'ossi&le &ased on &usiness 'er(ormances" AIRLINES DO ESTIC < = It is very standard in case o( accredited Passenger /ales Agent 4P/A5" ?o.:a: days, airlines 'rovide them cash return on each ticket unlike the (ortnightly commission 'rocedure" $ore online &ookings are convenient to the travel agents" Tour o'erators get s'ecial commission as 'er the contracts and ade0uate (ree tickets (or com'any shareholders, sta(( and (amily mem&ers" INTERNATIONAL >: + = International (lights o((er heavy discount to the tour o'erators other than the usual discounts" Airlines 're(er to deal .ith tour o'erators (or &ulk sale o( seats" This 'ractice is certainly .ell acce'ted across the airlines"

 CHARTERS *-: *< = There are 'rinci'al tour o'erators .hich lease out the air cra(t or .ork on commission &asis" The average commission is *- =" 8ther negotia&le o((ers are also attached .ith the charter &usiness" B!S TO!RS *- = It is mostly uni(orm" /ome also 'ay more than the usual commission in the o(( season and (ree tri's (or (amiliari1ation tours" RAIL*- = Indian rails do have much 'rovision to o((er commission in cash to the tour o'erators" In most o( A TRA" Foreign Rail # Eurail $ass the cases, tour o'erators &ook the circular tickets in order to get the tickets &ooked in a reasona&le amount as 'er the Indian rail rules" 8n the contrary, Rail.ays in ?orth America and Buro'e 'rovide varied schemes (or availing commission &y &ooking the tickets other than the standard commission amount"

Airlines domestic < = International %us tours *- = Rail *- = /elling cruise lines tickets *-: *< = Cotels &ookings 8ut&ound Tours *- :,- = *-: ,- = !ar rentals < @ *- = >: + =

Ty'es o( agencies
!"
multi'les, $ini'les inde'endent agencies"

In t%e !nite& States

mega, regional, consortium inde'endent agencies"3

The (ormer com'rises a num&er o( national chains, o(ten o.ned &y international conglomerates, like Thomson Colidays, no. a su&sidiary o(3TUI AE, the Eerman multinational" 3It is no. 0uite common (or the large mass:market tour com'anies to 'urchase a controlling interest in a chain o( travel agencies, in order to control the distri&ution o( their 'roduct" 4This is an e2am'le o(3vertical integration"5 The smaller chains are o(ten &ased in 'articular regions or districts

Inde'endent agencies usually cater to a s'ecial or3niche market, such as the needs o( residents in an u'market commuter to.n or su&ur& or a 'articular grou' interested in a similar activity, such as s'orting events, like (oot&all, gol( or tennis" t'o approac%es o( travel agencies 8ne is the traditional, multi:destination, out:&ound travel agency, &ased in the originating location o( the traveler, is usually a larger o'erator like3Thomas !ook other is the destination (ocused, in:&ound travel agency, that is &ased in the destination and delivers an e2'ertise on that location, 3is o(ten a smaller, inde'endent o'erator"

The internet threat to travel agency

3general 'u&lic access to the3Internet travel com'anies &egan to sell directly to 'assengers 3airlines no longer needed to 'ay the commissions to travel agents on each ticket sold /ince *++A, travel agencies have gradually &een3disintermediated &y the reduction in costs caused &y removing layers 3travel agencies have develo'ed an internet 'resence o( their o.n &y creating3travel .e&sites maFor online travel agencies includeG3B2'edia,3Hoyages: snc("com,3Travelocity,38r&it1,3!hea'Tic kets,3Priceline,3!hea'8air, and3Cot.ire"com

Travel agencies also use the services o( the maFor3com'uter reservations systems com'anies, also kno.n as Elo&al 7istri&ution /ystems 4E7/5, includingG3/A%RB,3Amadeus !R/,3Ealileo !R/3and3;orlds'an Travel agents have a''lied3dynamic 'ackaging3tools to 'rovide (ully &onded 4(ull (inancial 'rotection5 All travel sites that sell hotels online .ork together .ith E7/, su''liers and hotels directly to search (or room inventory online travel .e&sites that sell hotel rooms are3B2'edia,38r&it13and3;orldCotel:#ink" com'arison sites, such as3Kayak"com,3Tri'Advisor3and3/ide/te'3search the resellers site all at once to save time searching

 Nature of Activity In&ound @ (eature holidays to this country 8ut&ound @ (eature holidays to other countries 7omestic @ s'eciali1ing in the

Functions carry out market research contract su''liers 4'urchase com'onents5 cost the 'ackage market and sell the 'ackage take reservations administer the holiday 're:de'arture o'erate the holiday (rom the UK and in resort em'loy overseas sta(( to ensure the smooth running o( the holiday o((er 'ost:holiday customer care relationshi' .ith 'rinci'als 4trans'ort, accommodation and ancillary services5 and retail sector 4travel agents5 num&ers o( tour o'eratorsI dominance o( the sector &y a (e. o'erators and their market shares im'act o( hori1ontal and vertical integration the structure o( the key integrated 'layers, their &randed 'roducts, 'rinci'als and retail outlets direct sell o'erators $ass market vs" s'eciali1ed o'erator trade organi1ations 4Indian Association o( Tour 8'erators and Travel Agent associations o( India"

country .here they are &ased in /'ecialist @ (eature a s'eci(ic ty'e o( holiday or destination Inde'endent:o.ner:managed, usually s'eciali1ed in s'eci(ic

holiday or destination 'romotion" Integrated @ large o'erators .ho have taken over others $ass:market @ large, .ell kno.n, key o'erators

Function of Travel Agency

Travel information Counseling %mmigration Passport &isa Custom Clearance 'ealth certificate Landing permits certificate Tour Itinerary, packaging costing Liaison with providers arket !esearch Costing " pricing Promotion of package tour #$ecutive tours Booking, confirmation and reconfirmation of hotels rooms, Airline ticket, train, bus, cruise line reservation and reconfirmation Travel Insurance Personal Baggage Tour Foreign Currency MICE activities entertainment, Cultural Handling agency for the tour wholesalers

F!"# "F $%C&%'E T"() B(*I+E** TH)"('H ,%)I"(* *T%'E*

*oa, )himla,

Foreign Tour (peration Companies

%ndia as destinations

)%TA as ground operator

Agra, umbai, +olkatta, ,aipur,

Figure- .

)ikkim

-"MI+%+T )"!E* "F T"() "$E)%T")*

Carriers Accommodation Services Tour operators Customers

Figure - 1

Travel Agent
)ales of goods/ services Arranging a sale for commission

Travel Trade %ntermediaries

Travel Agency

Tour (perators

!etail

0holesale

%nbound Tour (perators

(utbound Tour (perators

1omestic (perators

*round (perators

Figure-2 Types organi3ation in

odern Travel Trade business

)hareholders Board of directors 1 President *eneral anager Finance Controller Chief #$ecutives 'eads of various 1epartments

Tour !esearch " Planning 1ivision 1eputy gr or Assist gr

Travel " Tour 1ivision

arketing " )ales 1ivision

1estinations )ervice 1ivision 1eputy anager

'uman resource Finance " Accounts 1evelopment 1eputy anager

Transport Conferences " 1epartment Convention 1ept4

1eputy Tour 1eputy arketing anager gr Tour #$ecutives 5%nbound " (utbound66 )ales anager Advertising anager P!(

1eputy anager

1eputy anager

1eputy anager

#$ecutives

Assistants

Assistants

Assistants

Assistants

Assistants

Tour Assistants Assistants

Tour " Travel Booking Assists

A Typical Large scale Travel Agency " Tour Company

Assistant Tour " Travel Booking Assists

#inkage o( 'ro(it sharing &et.een tour o'erators and 'rinci'al service 'roviders
Bookings, Cancellation, !evenues, Performances Flight Times, tariffs, Availability, Commissions, Confirmations %nformation

Airlines

!evenues" %nformation %nformation !evenue

%nformation

Tour (perators

Hotels

!evenues" %nformation

Travel %gents

Location, !oom Availability, !ack !ates, Commission levels %nformation " Commission

Eround 8'erator it is necessary (or the com'any to assess various 'ertaining (actors &e(ore the selection o( a ground handling o'erators" !onvenient o( #ocation /i1e o( &usiness Pro(essional sta(( #ength o( &usiness Re'utation and mem&ershi' .ith International and national travel and tourism associations" !redit (acilities"

Reasons (or /electing Eround 8'erator tour com'anies rely on the ground o'erators or handling agents at the destinations (or the main reasons as (ollo.sI Introduction o( ne. 'roduct or 'lan to 'romote these e2otic destinations" #ack o( control over the government regulations" #ack o( 'ersonal contract #anguage o( &arrier" Un(easi&le to maintain o.n &ranches at each destination"

/ervices 8((ered &y T8

Air'ort and hotel trans(er Arrangements (or traditional rece'tion at the arrival 'oints" B2'erienced and 'ro(essional tour guides, escorts, inter'reter and tour managers" B2cellent and 'ersonali1ed services at destination" !oordination .ith local tourist organi1ations at destination" 7omestic and international air travel" Rail &ookings in India, Buro'e, America Cotel reservation !ar rental" Travel documentation" Air'ort (acilitation" )oreign e2change" 8verseas travel insurance" !on(erence and seminar management" %usinessJtrade delegations" Arrangements o( luggage trans(er in the air'ort and rail.ay stations" Arrangements o( guided sightseeing tours" 8'tions and selection (or .orld.ide destination B2haustive itinerary 'lanning" A''ro'riate hotel selection B2hi&ition and (actory Hisits" Theme 'arties, events sightseeing" Air tickets travel documents like 'ass'ort, HI/A, health certi(icate and currency, insurance and 'ermits (or entry into the restricted areas" )oreign B2change Travel Insurance" Trade )airJB2hi&ition visits" Im'lant 8'erations : your in:house travel consultant e0ui''ed .ith !R/ system and satellite ticket 'rinter" Incentive travel in India and ;orld.ide" reservation" $eeting, con(erence and meeting arrangements" Ja'an"

/'ecial interest services

Ayurveda and Cealth Archaeology and historical sites Adventure and ecotourism sites %uddhism and Jainism ancient religious sites" /'ecial cuisines at each 'lace" 7esert and Fungle sa(ari tour" Arrangement o( com(orta&le entry and visit o( (airs and (estivals venues" Arrangement o( short tri's (or sho''ing and e2hi&itions grounds" $aking the 'rovision o( e0ui'ments (or s'orts and games 4Eol(, .inter s'orts and .ater s'orts"5 Provision (or scholarly inter'retation o( o&Fects .ith the hel' o( e2'erts at the museums Arrangements (or host community interaction" 8rgani1ing s'ecial cultural 'rogrammes in the 'alaces 4 RaFasthan and E.alior5 Ade0uate 'rovisions (or maintaining the (irst aid (acility in the tour" /'ecial amenities (or the tourists in the train Fourney" 4 Palace on ;heels, Royal 8rient, )airy Kueen and 7eccan 8dyssey5

Distri)ution net'or*s o( tour operation )usiness

Actual Tourist

Tour (perator Approaches Principal supplier

Potential Tourist

Airlines and Transport Charter flight operators companies

Cruise Line Companies

!ailways " Car !ental Companies

'otels

#vent anagers

ng i l el ) ct e ir 1

Processing of package tours

et n er t %n

#nd users 5Cents7

Travel agents

#inkage o( 'ro(it sharing &et.een tour o'erators and 'rinci'al service 'roviders

Bookings, Cancellation, !evenues, Performances Flight Times, tariffs, Availability, Commissions, Confirmations %nformation

Airlines

!evenues" %nformation %nformation !evenue

%nformation

Tour (perators

Hotels

!evenues" %nformation

Travel %gents

Location, !oom Availability, !ack !ates, Commission levels %nformation " Commission

*T)%TE'IC %!!I%+CE #ITH THE *E),ICE $)",I-E)* )upport service private service Producers/ Principal )uppliers )upport )ervices Pubic )ector

Carriers *uiding )ervices Travel %nsurance Travel Finance Travel press arketing )upport *uides and Tine stables Publications, training, etc4

Accommodation 'otels, otels *uest 'ouses &illas Apartments 'oliday 'omes 'oliday villages 'oliday camps

Attractions anmade Ancient monuments Ancient centre Theme Parks Catering

Air Transport )ea Transport !ail Transport !oad Transport

8ational Tourism (ffice !egional Tourism (ffice #ducation " Training &isa " Passport service

Tour (perators and Brokers Figure-2 Travel Agent Tourist

Airline %ndustry

'otels motels !esorts (thers

Cruise Line

)urface Transport

Foreign Principal Agents

Tourism Associations Cultural and #ntertainment organi3ations 1ept of #$ternal Affairs

Professional 8etworks of Travel Agency

%nsurance Companies

#ducational %nstitutions

Banking %nstitutions

Tour 0holesalers

8ational " )tate Tourism 1epts4

Tourism com'anies
IR!T! Thomas !ook !o2 /8T! 8r&it1 /ITA Kings

Indian Rail.ay !atering and Tourism !or'oration

IR!T! is a su&sidiary o( the3Indian Rail.ays3that handles the catering, tourism and online ticketing o'erations o( the rail.ays in ,--,

In addition to3B:tickets, IR!T! also o((ers I:tickets that are &asically like regular tickets e2ce't that they are &ooked online and delivered &y 'ost" The Tickets P?R /tatus is also made availa&le here recently" $um&ai's su&ur&an rail.ay3can also &ook season tickets through the IR!T! .e&site" IR!T! has also recently launched a loyalty 'rogram called N/hu&h MatraN (or (re0uent travellers, discounts on all tickets &ooked round the year &y 'aying an u'(ront annual (ee" launched (lights and hotels &ooking (acilities .hich added to their line o( online reservation services

/ervices Catering 3!atering Policy ,-*- 4&y $amata $ukharFee5 !atering services 'rovided &y IR!T! .ere hand over to I?7IA? Rail.ays" ?o. IR!T! is in charge o( catering services on )e. trains such as All 7uranto B2', )rakkha B2',3$aitree B2'ress4 Train &et.een I?7IA and %A?E#A7B/C5,Kandhari B2' and some RaFdhani B2' rest all o( train o'erated &y Lonal Rail.ays rail.ay stations across India" Co.ever IR!T! still o'erate Janaahar at rail.ay station" IR!T! also started ?R! 'roFect4?8? RAI#;AM !ATBRI?E5 under .hich ca(eteria .ere o'erated in many Indian $inistries and Institutes"

Tourism
organi1es &udget and delu2e 'ackage tours (or domestic and (oreign tourists, 3%harat 7arshan #u2ury tourism 'ackages are also availa&le, that involve s'ecial lu2ury trains such asG
Palace on ;heels Royal 8rient B2'ress Eolden !hariot 7eccan 8dyssey Royal RaFasthan on ;heels %uddhist !ircuit Train

Online tic*eting kno.n (or changing the (ace o( rail.ay ticketing 'ioneered3Internet:&ased rail ticket &ooking through its .e&site, as .ell as (rom the mo&ile 'hones via3EPR/3or3/$/ cancellations or modi(ications can also &e done online

and IR!T! is a 'artner in the3$aharaFasO B2'ress3o'eration" log on to3railtourismindia"com and &ook Rail Tour Package, Coliday Package, Cotels, !a&s, Tourist Trains online" adventure tourism 'ackages that include .ater s'orts, adventure and .ildli(e treks, etc" A 'rovision (or customising tours as 'er s'eci(ic re0uirements is also an added attraction"

A.ards and achievements

3IR!T! .e&site had &ecome the largest and the (astest gro.ing3e: commerce3.e&site in the3Asia:Paci(ic3region, .ith a&out si2 lakh registered users in ,--6
A.arded the3National Tourism A'ar& o( E+cellence3&y3$inistry o( Tourism,3Eovt" o( India" A.arded the3National A'ar& (or E,-overnance, ,--A:-D Fointly &y 7e'artment o( IT, Eovt" o( India and Eovt" o( Caryana" A.arded the3-enius o( t%e .e) A'ar& /0013(or &eing the N%est B:Eovernance P/U /iteN &y3!?%!" IR!T! Tourism Unit o( ;est Lone declared .inner (or the category3 Best 2alue Leisure $ro&uct3in3Travel and Tourism )air o( India34TT) 8T$ ,--D5 held in3$um&ai3(rom + to ** )e&ruary ,--D" ;on3National a'ar& (or E,-overnance3(or &eing N%est !iti1en !entric A''licationN (or the year ,--A:-D" IR!T! Tourism Unit declared .inner (or the category3 ost Innovative $ro&uct3in Travel and Tourism )air o( India 4TT) 8T$ ,--A5 held in $um&ai (rom *- to *, )e&ruary ,--A" ;on3CSI,Ni%ilent E,-overnance a'ar&3(or N%est B:Eovernance ProFectN in ,--A" ;on the3ICICI Ban*3Retail E+cellence A'ar& 3in3,--<" ;on3$at% Brea*er A'ar&3(rom37ata0uest3in3,--63and3,--9" A.arded the3 ini Ratna Category,43&y3$inistry o( Rail.ays,3Eovt" o( India

Travel and Tourism )air4TT)8T$5

TTF 3is IndiaOs leading e2hi&ition (or the travel tourism industry" /ince *+D+, it 'rovides an annual o''ortunity (or organisations (rom India and a&road to sho.case their 'roducts and services to a large cross:section o( the travel trade industry and consumers across maFor markets in India" ;ith more than *<-- B2hi&itors (rom >* countries and 6< Indian /tates J UTs, an ever increasing num&er o( (oreign country re'resentations, and a committed visitorshi' o( more than *D>,--- visitors,3TTF3together .ith3OT is the largest net.ork o( Travel /ho.s in India"

OT 3is IndiaOs leading travel sho. (ocused on 8ut&ound travel" It 'rovides an annual o''ortunity (or organi1ations (rom around the .orld to sho.case their 'roducts to a large cross:section o( travel trade and consumers in all maFor target markets in India, Fust &e(ore the 'eak out&ound season" ,-*,
um)ai Fe)ruary 415 465 47 %om&ay B2hi&ition !entre, Eoregaon 4Bast5

Ne' Del%i Fe)ruary /85 /95 /: Pragati $aidan"

!oncurrent .ith TT) Bndorsed &y PATA 8rganised &y )AIR )B/T $B7IA ltd

Thomas!ook
T%omas Coo*34,, ?ovem&er *D-D @ *D July *D+,5 o(3$el&ourne, 7er&yshire,3Bngland .ith3$idland !ounties Rail.ay, he arranged to take a grou' o( <9-3tem'erance3cam'aigners (rom3#eicester3!am'&ell /treet station3to a rally in3#ough&orough 7uring the (ollo.ing three summers he 'lanned and conducted outings (or tem'erance societies and /unday:school children" In *D99 the $idland !ounties Rail.ay !om'any agreed to make a 'ermanent arrangement .ith him 'rovided he (ound the 'assengers" 8n 9 August *D9< he arranged accommodation (or a 'arty to travel (rom #eicester to3#iver'ool In *D9>, he took 6<- 'eo'le (rom #eicester on a tour o(3/cotland, ho.ever his lack o( commercial a&ility led him to3&ankru'tcy Ce 'ersisted and had success .hen he claimed that he arranged (or over *><,--- 'eo'le to attend the3Ereat B2hi&ition3in3#ondon

!ook esta&lished 'inclusive inde'endent travel', .here&y the traveller .ent inde'endently &ut his agency charged (or travel, (ood and accommodation (or a (i2ed 'eriod over any chosen route" /uch .as his success that the /cottish rail.ay com'anies .ithdre. their su''ort &et.een *D>, and *D>6 to try the e2cursion &usiness (or themselves" In *D><, the agency organised tours o( the United /tates, 'icking u' 'assengers (rom several de'arture 'oints" A round the .orld tour started in *DA, In *DA9, Thomas !ook introduced 'circular notes', a 'roduct that later &ecame &etter kno.n &y American B2'ress's &rand, 'traveller's che0ues %y *DDD, the com'any had esta&lished o((ices around the .orld

!o2

Kings

longest esta&lished travel com'any in the .orld, its history stretching &ack to3*A<D3.hen Richard !o2 .as a''ointed as regimental agent to the3)oot Euards" !o2 Kings is no. an inde'endent tour com'any .ith o((ices in the3United Kingdom,3India, the3United /tates3and3Ja'an" Its glo&al head0uarters are in3#ondon !o2 .as &orn in3Morkshire3in *A*D *A9-s, .ent on to &ecome the !olonel o( the3)irst )oot Euards The com'any set u' (ive &ranches in India &et.een *+-< and *+**

Airline ticketing

)lying time
The di((erence &et.een the take o(( time and the landing time

Rounding u'
#!) Round the resulting local currency (are and take note o( re0uired num&er o( decimal units (or the currency"

$P$

TP$

$P$ Bsta&lish the ma2imum 'ermitted mileage &et.een the (are construction 'oints o( the (are com'onent (ollo.ing the same glo&al direction as that used in the ?U! a&ove" TP$ Add u' the ticketed 'oint mileage o( each sector and com'are the total TP$ to the $P$

I TI?BRARM PRBPARATI8?
Availa&le (lights )light timings Passenger timings To and (ro %ooking a ticket accordingly

Travel In(ormation

anual ;TI <

TI$ 4Travel In(ormation $anual5 is the .orld's leading source (or in(ormation on air travel re0uirements" $illions o( 'assengers (ind their .ay to (inal destinations time a(ter time .ith the TI$" The never:ending movement o( 'eo'le and commodities continues to run smoothly .hen 'layers are in(ormed o( TI$'s u':to:date country entry re0uirements .orld.ide" "ey Bene(its The TI$ is a must (or all .ho are involved in the travel industry" This uni0ue manual lists rules and regulations (or more than ,*> countries on su&Fects such asG Pass'orts Hisas Cealth in(ormation Air'ort ta2 !ustoms and currencies #atest ne.s Designe& (or The in(ormation (ound in TI$ is consulted &y thousands o( users around the .orld every day, including airline o((ices, travel agents, cor'orate accounts, tour o'erators, E7/ and government agencies"

Ty'es o( )are

Unrestricted normal (are

8r Primary normal (ares ?ormal (ares .ithout any restrictions Permit unlimited sto'overs and trans(ers ) or ! or M class (ares

)are
The amount charged &y a carrier (or the carriage o( a 'assenger and his allo.a&le (ree &aggage as &eing a''lica&le to the class o( service to &e (urnished

Restricted normal (are

8r /econdary normal (ares Cave sto'over and trans(er conditions #o.er than 'rimary (ares ),,P, etc 4(or (irst class restricted (are5 J,, !6 etc 4(or &usiness class restricted (are5 M,, /,, M** etc 4(or economy class restricted (are5

?ormal (are
Unrestricted normal (are Restricted normal (are

/'ecial (ares
/'ecial (ares are lo. 'romotional (ares that have more restrictions than the normal (ares Aim 'artially 'romotional and 'artially social Restrictions in res'ect o(
#ength o( stay Advance 'urchase re0uirements Reservations, 'ayment and ticketing limits 7ayJtime o( travel Bligi&ility restrictions Re(unda&ility and changea&ility

Pu&lic /'ecial )ares

#ate %ooking )are
These are (ares that can only &e 'urchased at the last moment or .ith in ,9 hrs or so o( de'arture /tand &y, late 'urchase, or instant 'urchase (ares !an only travel i( seats are em'ty at the time o( de'arture These tend to &e the chea'est (are

APBP )are
Advance Purchase B2cursion (are Restrictions on timing o( 'urchase Re0uire advance reservation .ith advance 'ayment , a minimum no" o( days &e(ore de'arture 7oes not allo. o'en dated segments, all (light cou'on must have con(irmed reservation Penalties (or changes in &ooking and ticket cancellation also a''ly

PBP )are
Purchase B2cursion )are 7oes not have a re0uirement to 'urchase the ticket a minimum no" o( days &e(ore de'arture Payment o( ticket u' on o&taining con(irmed seats 7oes not allo. o'en dated segments Penalties (or changes in &ooking and ticket cancellation also a''ly

Ty'es o( s'ecial (ares

Pu&lic /'ecial )ares Inclusive Tour )ares Pu&lic Erou' )ares Reduced (ares (or s'eci(ic categories o( 'ersons $iscellaneous )ares

B2cursion )are
Cave duration limits as e2'ressed &y minimum and ma2imum stay dates Attracts mostly vacation travelers and tourists Usually allo. o'en dated segments Re&ooking or cancellation 'enalty (ees do not a''ly

 Inclusive Tour )are

Prearranged com&ination o( air trans'ortation and sur(ace arrangements other than Fust 'u&lic trans'ortation Arranged &y Travel Agents or Tour 8'erators EIT )ares IIT )ares

Incentive Erou' (are

)or em'loyees andJor dealers andJor agents o( the same commercial organi1ations traveling under an esta&lished Incentive Travel Program

A((inity Erou' (are

This (are is availa&le to mem&ers o( the same organi1ation Jcom'anyJassociation having some a((inity

Pu&lic Erou' )ares

7esigned (or grou' travel .ithout land arrangements Availa&le .hen 'assengers travel together and have com'iles .ith minimum grou' si1e !ommon Interest Erou' (are Incentive Erou' (are A((inity Erou' (are ?on: A((inity Erou' )are

?on: A((inity Erou' )are

$em&ers o( a travel grou' .ho does not share a common a((inity" The 'a2 are Fust assem&led in order to avail the grou' discount

Reduced (ares (or s'eci(ic categories

7i'lomat J Eovt" (are )amily (are $ilitary (are Pilgrim (are /enior !iti1en (are /tudents (are Mouth (are

!ommon Interest Erou' (are

Passengers .ho have a &ona(ide common interest &y traveling together &y the same routing to the same destination !ommon interest must &e other than 0uali(ying (or the discount

$iscellaneous )ares
8ther (ares that does not (all under the a&ove categories /'ecial event tour (ares, triangular (ares etc"

)are calculation

?8TB/JBP!BPTI8?/G
*" )or tickets issued (or travel commencing in AlgeriaJTunisia, check identity 'a'ers o( the 'assenger to see .hether or not, sJhe is a resident" Residents o( these countries are 0uoted a lo.er (are level than non:residents" 4/ee latest PAT EeneralRules &ook"5 ," Additional CIP checks a''ly (or Fourneys originating (rom India, $ala.i, ;estern A(rica, Memen and (or Fourneys .holly&et.een KilimanFaro and ?airo&i" 6" %C! is not a''lica&le (orG
a5 Journeys .holly .ithin T!* &5 Journeys .holly &et.een Argentina, %ra1il, !hile, Paraguay, Uruguay and T!, c5 Pricing units .holly .ithin Buro'e

9" 8/! is not a''lica&le toJ(romJvia U/AJU/ Territories and (or Fourneys originatingJterminating in !anada <" 7$! is only a''lica&le to 8ne ;ays toJ(romJvia Ja'an .hen the tra((ic document is not issued in the country (rom .hich the Fourney commences 4/candinavia is considered one country5 )or electronic tickets, the tra((ic document is deemed to &e issued in the country in .hich the electronic record is esta&lished" >" 7$! is not a''lica&le (or tra((ic documents issued inG
a5 T!* (or Fourneys commencing in T!* &5 !anada, U/AJU/ Territories (or Fourneys to !anada, U/AJU/ Territories c5 %enin, %urkina )aso, !ameroon, !entral A(rican Re'u&lic, !had, !ongo 4%ra11aville5, !ote dOIvoire, B0uatorial Euinea, Ea&on, Euinea:%assau, $ali, ?iger, /enegal or Togo and the Fourney originates in these countries"

 Payment modes
7irect cash !ard s.i'e 8nline 'ayment che0ues

Issuance o( ticket
$anual ticket Automated ticket B: ticket /ingle cou'on ticket 7ou&le !ou'on ticket )our cou'on ticket Airline ticket ?eutral ticket

!argo Candling
%aggage allo.ance 8n the commercial trans'ortation, mostly .ith3airlines,the3)aggage allo'ance3is the amount o( checked or carry:on3luggage3the airline .ill allo. 'er 'assenger" that is allo.ed (ree o( charge In ,--A .ith most airlines no. charging (or &oth the (irst and second &ag" Co.ever, .ithin3Buro'e, and o(ten on (lights &et.een the United /tates and Buro'e, the limit is as lo. as340 pounds (18 kg) total per passenger, and many airlines do not allo. 'assengers to e2ceed this amount, even .ith 'ayment o( a (ee" $any 'assengers com'lain a&out this limit, &ecause a(ter the ty'ical *<:,- 'ounds 4A@ D3kg5 o( the3suitcase3itsel(, little room remains (or any other items

Piece !once't
'assengers are 'ermitted to check t.o &ags .ith a 'er:&ag .eight o( u' to <- 'ounds 4,6 kilograms5 (or Bconomy !lass, and u' to A- 'ounds 46, kilograms5 (or %usiness or )irst !lass" !ertain airlines o'erating under the Piece !once't may add additional checked &aggage allo.ance (or their Blite #evel (liers" ;eight restrictions are 'er &ag, unlike the ;eight !once't"

;eight !once't
each 'assenger is 'ermitted to check a total &ag .eight in ho.ever many &ags they have" Ty'ically, Bconomy !lass is 'ermitted to check in u' to 99 'ounds 4,- kilograms5, %usiness !lass is 'ermitted to check in >> 'ounds 46- kilograms5, and )irst !lass is 'ermitted DD 'ounds 49- kilograms5, Unlike the Piece !once't allo.s 'assengers to com&ine their &ag .eight into (e.er &ags .hich .ould other.ise &e too heavy to travel under the Piece !once't

3$ost airlines have changed the 'olicy and allo. as o( ?ovem&er ,--+ only one &ag to &e checked in (or (ree" The second &ag .ill cost &et.een Q<-:<<

Accounta&ility o( &aggage loss

,<-,--- )rancs or International (inancing *>,>-- /'ecial instrument created in 7ra.ing Rights 4/7R5 *+A- &y the International (or 'ersonal inFuryI $onetary )und 4I$)5 to coincide .ith the *A /7R 'er kilogram dis(avour o( the U/ dollar (or checked luggage as the 'rinci'al currency and cargo, o( the .orld trade" <,--- )rancs or 66, At 'resent, one /7R is the sum o( -">6,- U/ 7ollars, /7R (or the hand -"9*-- euro, *D"9 luggage o( a Ja'anese yen and -"-+-6 traveller" 'ound sterling

 7angerous Eoods
!lass *G B2'losives !lass ,G Eases !lass 6G )lamma&le #i0uids !lass 9G )lamma&le /olids !lass <G 82idi1ing /u&stances 8rganic Pero2ides !lass >G Poisonous 4to2ic5 in(ectious su&stances !lass A G Radioactive $aterials !lass DG !orrosives !lass +G $iscellaneous dangerous su&stances

!argo rates and valuation charges

articles

 Automation
In(ormation concerning /chedules )ares Ticket reservation Invoicing Blectronic check

Air'ort 'rocedures
!heck in !heck out Air'ort services In (light services

Re0uirements in setting u' Travel Agency

/B! RegistrationG : Incor'oration Pa'ersJ%y:#a.s : !a'itali1ation, /u&scri&ed shares, Paid:U' /hares 4minimum o( P "<$5 : #ist o( /tockholders !iti1enshi', ther addressesm res'ective !ommunity Ta2 !erti(icates and TI? : #atest Eeneral In(ormation /heet : %oard Resolution o( Authori1ed /ignatories : !or'orate Address : A''ointed !or'orate Treasurer:in:Trust : %ank !erti(icate (or !or'orate's 'aid u' ca'ital ///JPag:I&igJPhilhealth : Articles o( Inc : 7TI !ert : $ayor's Permit and %Usiness #icenses : %IR Registration : Bm'loyees' Al'ha #ist, /// num&er, Pag:I&ig ?um&er, Philhealth ?um&er 78T Accreditation #egal *" $ayor's PermitJ$unici'al #icense ," %usiness ?ame !erti(icate (or /ingle Pro'rietorshi' 6" Articles o( Incor'orationJ Partnershi' %y:#a.s (or !or'orationJPartnershi' and %usiness ?ame !erti(icate, i( a''lica&le" )inancial *" #atest Income Ta2 Return and Audited )inancial /tatements3 Physical *" !ontract o( #ease o( o((ice s'aceJ!erti(icate o( Title3 8ther 78T 7ocumentary Re0uirements *" A''lication )orm ," #ist o( 8((icials and Bm'loyees 6" Halid visa and la&or 'ermit (or (oreign nationals 9" %oard ResolutionJletter (orm o.nerJ'artners authori1ing its &ona(ide em'loyee to signJ(ileJtransact &usiness .ith 78T 78T Re0uiresG : a P "<$ cash revolving (und (or o'eration : Travel and Tours /eminar o( $anagerJ8.ner : at least * Tourism Eraduate em'loyee 8thersG RMou .ill need at least PA-,---"-- to 'rocess and (ile these re0uirements, aside (rom the re0uired P "<$ 'aid u' ca'ital" RRIATAJ7IT/ RegistrationJ/eminar

7TI !erti(icate o( %usiness Registration : !erti(ied 'hotoco'y o( the Articles o( Incor'oration : A''lication )orm #ocal Eovernment #icense and $ayor's Permit : Articles o( Incor'oration : 7TI !erti(icate : %arangau !learance : !or'orate !ommunity Ta2 !erti(icate : 8ther #ocal Eov't !learances 4 em'loyees' health certi(icate, I7, %arangay, Police, ?%I clearances, 9 *2* 'hotos o( all com'any em'loyees, etc"5 : Eeneral #ia&ility Insurance %IR : !or'o'ate Registration : articles o( inc : 7TI certi(icate : $ayor's Permit %usiness #icenses : !or'orate #ogo : !ontract o( #ease : Incor'oratorsJBm'loyess Registration and TI? : * 'c 'ass'ort si1e colored 'icture in .hite &ackground : !ivil registry documentsI i"e" &irth, marriage certi(icates

 Incentives to Travel Agents

Pro(it sales leads to incentives Incentive tri's Incentive (amily tri's Incentive lunch cou'ons Re(erence at im'ortant destinations HIP 'asses
!onstraints limitations o( Travel Agents
Cigh com'etition level Blement o( Uncertainty /tringent regulatory la.s #anguage constraint B((ect o( currency e2change rate (luctuations Relations &et.een countries 7i((erent interests o( travelers )luctuations in demand

Thank Mou
Ramakrishna Kongalla