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Tourism Business


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Tourism Business

  1. 1. Tourism Business©Ramakrishna Kongalla
  2. 2. IntroductionRtist@Tourism, Pondicherry University• The Indian Travel Agencies like Jeena & Co., Lee & MuirheadIndia Pvt. Ltd, and Jamnadas & Co. Ltd at Bombay alsooperated inbound and outbound tours for Indian andForeigners. In 1920, the first travel agency was founded in the• Jeena and Company was founded as the first travel agent in1920 in Mumbai to cater to the domestic travel needs. Thecompany made use of the vast opportunities of the growingbusiness and ventured into the cargo and courier business.• Subsequently after, it entered into different components oftravel related services like ticket booking, hotelreservation, package tour, transport arrangements, etc. Thecompany along with other travel agents made much progressin the post independence period.2
  3. 3. Travel Agency• Travel agency is a firm or corporationqualified to providetours, cruises, transportation, hotelaccommodation, meals, transfer, sightseeing and other elements of travel to thegeneral public as form of services andfinally acts as a retailer. This is abusiness organization that is collectivelyset up to accomplish missions, goals andpurposes within a formal structure. Allmanagement theories are applicable tomanage the complex business networks.It requires much coordinated activitieslike division of labour, hierarchicalauthority and responsibility.• In addition to dealing withordinary tourists most travel agencieshave a separate department devoted tomaking travel arrangements for businesstravelers and some travel agenciesspecialize in commercial and businesstravel only.• There are also travel agencies that serveas general sales agents for foreign travelcompanies, allowing them tohave offices in countries other thanwhere their headquarters are located.Tour Operator• An organization, firm or company whobuys individual travel components,separately from different suppliers andassembles them into package tour byadding certain value which is sold withtheir own price tag to the public directlyor through the middlemen (TravelAgent) is called a tour operator. Touroperator is a professionally managedcompany which has much expertise andexperience in the planning andoperation of prepaid and preplannedvacation packages for the general publicdirectly or through retail travel agents.• The terms tour operator and tourwholesaler are often usedinterchangeably, and are treated hereas having identical meaningsRtist@Tourism, Pondicherry University 3
  4. 4. Difference between TO & TATour Operator• It is a wholesaler• It is principal agent or foreigntravel agent• amend the tour itinerary andprogram• delightful and value added touritinerary• located in the mega cities• international transfer from hotelto airport and vice versa• Adequate excursion tours• It accepts foreign currency• generating new ideas andattractions in the package• member of international bodieslike PATA and ASTATravel Agent• It works as a retailer and sellspackage tours on behalf of thewholesaler• It is an intermediary betweentour operators and tourists• It follows tour itinerary• sightseeing tours and excursiontours, airport arrival anddeparture transfer, check in andcheck out time in the hotel• It acts as a local agent to confirmand reconfirm the services• Problem related to the tours issolved by the travel agents• member of national bodies likeTAAI and IATO• terms and conditions forcommission with principalsuppliersRtist@Tourism, Pondicherry University 4
  5. 5. Origin• Cox & Kings is oldest travel agency in the world• modern travel agency first appeared in the second half ofthe 19th century• Thomas Cook, in addition to developing the packagetour, established with the Midland Railway• British pioneer travel agencies were Dean &Dawson, the Polytechnic Touring Association and the Co-operative Wholesale Society.• Originally, travel agencies largely catered to middle andupper class customers, but the post-war boom in mass-market package holidays resulted in travel agencies onthe main streets of most British towns, catering to aworking-class clientele, looking for a convenient way tobook overseas beach holidays.Rtist@Tourism, Pondicherry University 5
  6. 6. Operations• travel agencys main functionis to act as an agent• selling travel products andservices on behalf of asupplier• unlike other retail businesses,they do not keep a stock inhand• Sell the inventory got ondiscount and acquire profit• include the sale of in-house insurance, travel guidebooks, timetables, car rentals,and dealing in the mostpopular holiday currenciesCommissions• operate on a commission-basis• compensation fromthe airlines, carrentals, cruiselines, hotels, railways, sightseeing tours, touroperators, etc• commission consists of a setpercentage of the sale.• most airlines pay nocommission at all to travelagencies• In some parts of asia its zero% commissionRtist@Tourism, Pondicherry University 6
  7. 7. • HOTELS 10 -20 % someaccommodation providers pay morethan 20 per cent. Some pay room andfood free for group leader. Some do notpay at all. Some pay overridesalso. National and international chainhotels and resort companiespay commission regularly. They usuallynegotiate the two commission rates forpeak and off peak period.• FOOD 10-20 % Some pay free mealsand breakfast to the groupleaders, escorts or guides. Sometime,commission is not paid if it is not asubstantial business.• ENTERTAINMENT 10 % Somenegotiate with the tour operators freeticket and some times do not pay also ifit is not booked in advance.• CAR RENTALS 5 – 10 % It is verystandard. The average commission is 5%. Companies also offer cash and freetransport for familiarization trip of theprincipal agents.• TOURS 10- 20 % The commonpractice of commission amount is 10 %.Some rewards the retail agent over thetotal business or target business. Some alsoprovide free package tour to the agentsand its staff and family members.• CRUISE LINES 10- 15 % The averagecommission is 10 % but in certain cases,bonuses and overrides are possible basedon business performances.• AIRLINES DOMESTIC 5 % It is very standardin case of accredited Passenger Sales Agent(PSA). Now-a- days, airlines provide themcash return on each ticket unlike thefortnightly commission procedure. Moreonline bookings are convenient to thetravel agents. Tour operators get specialcommission as per the contracts andadequate free tickets for companyshareholders, staff and familymembers.• INTERNATIONAL 6- 9 % Internationalflights offer heavy discount to the touroperators other than the usual discounts.Airlines prefer to deal with tour operatorsfor bulk sale of seats. This practice iscertainly well accepted across the airlines.Rtist@Tourism, Pondicherry University 7
  8. 8. • CHARTERS 10- 15 % There areprincipal tour operators which leaseout the air craft or work oncommission basis. The averagecommission is 10 %. Other negotiableoffers are also attached with the charterbusiness.• BUS TOURS 10 % It is mostlyuniform. Some also pay more than theusual commission in the off season andfree trips for familiarizationtours.• RAIL10 % Indian rails do havemuch provision to offer commission incash to the tour operators. In most ofAMTRAK Foreign Rail & Eurail Passthe cases, tour operators bookthe circular tickets in order to getthe tickets booked in a reasonableamount as per the Indian rail rules. Onthe contrary, Railways in North Americaand Europe provide varied schemes foravailing commission by booking thetickets other than the standardcommission amount.• Airlines domestic5 %• International6- 9 %• Bus tours10 %• Rail10 %• Selling cruise lines tickets10- 15 %• Hotels bookings10 -20 %• Car rentals5 – 10 %• Outbound Tours10- 20 %Rtist@Tourism, Pondicherry University 8
  9. 9. Types of agenciesUK– multiples,– Miniples– independent agencies.• The former comprises a number ofnational chains, often owned byinternational conglomerates, likeThomson Holidays, now a subsidiaryof TUI AG, the Germanmultinational.• It is now quite common for thelarge mass-market tour companiesto purchase a controlling interest ina chain of travel agencies, in orderto control the distribution of theirproduct.• (This is an example of verticalintegration.)• The smaller chains are often basedin particular regions or districtsIn the United States– mega,– regional,– consortium– independent agencies.• Independent agencies usually cater toa special or niche market, such as theneeds of residents in an upmarketcommuter town or suburb or aparticular group interested in a similaractivity, such as sporting events, likefootball, golf or tennis.two approaches of travel agencies• One is the traditional, multi-destination, out-bound travelagency, based in the originatinglocation of the traveler, is usually alarger operator like Thomas Cook• other is the destination focused, in-bound travel agency, that is based inthe destination and delivers anexpertise on that location, is often asmaller, independent operator.Rtist@Tourism, Pondicherry University 9
  10. 10. The internet threat to travel agency• general public access to the Internet• travel companies began to selldirectly to passengers• airlines no longer needed to pay thecommissions to travel agents oneach ticket sold• Since 1997, travel agencies havegradually been disintermediated• by the reduction in costs caused byremoving layers• travel agencies have developed aninternet presence of their own bycreating travel websites• major online travel agenciesinclude: Expedia,, Travelocity, Orbitz, CheapTickets, Priceline, CheapOair, and• Travel agencies also use the servicesof the major computer reservationssystems companies, also known asGlobal Distribution Systems(GDS), including: SABRE, AmadeusCRS, Galileo CRS and Worldspan• Travel agents have applied dynamicpackaging tools to provide fullybonded (full financial protection)• All travel sites that sell hotels onlinework together with GDS, suppliersand hotels directly to search forroom inventory• online travel websites that sell hotelroomsare Expedia, Orbitz and WorldHotel-Link.• comparison sites, suchas, TripAdvisor and SideStep search the resellers site all atonce to save time searchingRtist@Tourism, Pondicherry University 10
  11. 11. • Nature of Activity• Inbound – feature holidays to thiscountry• Outbound – feature holidays toother countries• Domestic – specializing in thecountry where they are based in• Specialist – feature a specific typeof holiday or destination• Independent-owner-managed,usually specialized in specificholiday or destination promotion.• Integrated – large operators whohave taken over others• Mass-market – large, well known,key operatorsFunctionscarry out market research• contract suppliers (purchase components)• cost the package• market and sell the package• take reservations• administer the holiday pre-departure• operate the holiday from the UK and in resort• employ overseas staff to ensure the smoothrunning of the holiday offer post-holiday customercare• relationship with principals (transport,accommodation and ancillary services) and retailsector (travel agents)• numbers of tour operators; dominance of thesector by a few operators and their market shares• impact of horizontal and vertical integration thestructure of the key integrated players, theirbranded products, principals and retail outletsdirect sell operators• Mass market vs. specialized operator tradeorganizations (Indian Association of Tour Operatorsand Travel Agent associations of India.Rtist@Tourism, Pondicherry University 11
  12. 12. Rtist@Tourism, Pondicherry UniversityFunction of Travel AgencyTravel InsurancePersonalBaggageTourForeign CurrencyMICE activitiesentertainment,CulturalHandling agency forthe tour wholesalersBooking,confirmation andreconfirmation ofhotels rooms,Airline ticket,train, bus, cruiseline reservationandreconfirmationTour Itinerary,packaging &costingLiaison withprovidersMarket ResearchCosting & pricingPromotion ofpackage tourExecutive toursTravelinformationCounselingImmigrationPassportVisaCustomClearanceHealthcertificateLanding permitscertificate12
  13. 13. Rtist@Tourism, Pondicherry UniversityForeignTour OperationCompaniesIndia asdestinationsSITA asgroundoperatorGoa,Shimla,Agra,Mumbai,Kolkatta,Jaipur,SikkimFigure- 1FLOW OF PACKAGE TOUR BUSINESS THROUGH VARIOUS STAGES13
  14. 14. Rtist@Tourism, Pondicherry UniversityAccommodationServicesCarriersTouroperatorsTravel AgentCustomersSales of goods/ servicesArranging a sale for commissionDOMINANT ROLES OF TOUR OPERATORSFigure - 114
  15. 15. Travel Trade IntermediariesTravel Agency Tour OperatorsRetail WholesaleInboundTourOperatorsOutboundTourOperatorsDomesticOperatorsGroundOperatorsFigure-2 Types organization in Modern Travel Trade business15Rtist@Tourism, Pondicherry University
  16. 16. Rtist@Tourism, Pondicherry UniversityShareholdersBoard of directorsMD PresidentGeneral ManagerFinance ControllerChief ExecutivesHeads of various DepartmentsTour Research& Planning DivisionTravel & TourDivisionMarketing &Sales DivisionDestinationsServiceDivisionHuman resourceDevelopmentFinance &AccountsTransportDepartmentConferences &Convention Dept.Deputy Mgr orAssist MgrDeputy TourMgrDeputy MarketingManagerDeputyManagerDeputyManagerDeputyManagerDeputyManagerDeputyManagerExecutivesTour Executives(Inbound &Outbound00SalesManager Assistants Assistants Assistants Assistants AssistantsAssistantsTour AssistantsAdvertisingManagerTour & TravelBooking AssistsPROAssistantTour & Travel BookingAssistsA Typical Large scale Travel Agency& Tour Company16
  17. 17. Rtist@Tourism, Pondicherry UniversityLinkage of profit sharing between tour operators andprincipal service providersBookings, Cancellation, Revenues, PerformancesFlight Times, tariffs, Availability, Commissions, ConfirmationsLocation, Room Availability, Rack Rates, Commission levelsAirlinesTourOperatorsTravelAgentsHotelsInformationRevenues&InformationRevenues&InformationInformationInformationRevenueInformation & Commission17
  18. 18. Ground Operator• it is necessary for thecompany to assess variouspertaining factors beforethe selection of a groundhandling operators.• Convenient of Location• Size of business• Professional staff• Length of business• Reputation andmembership withInternational and nationaltravel and tourismassociations.• Credit facilities.Reasons for Selecting GroundOperator• tour companies rely on theground operators orhandling agents at thedestinations for the mainreasons as follows;• Introduction of newproduct or plan to promotethese exotic destinations.• Lack of control over thegovernment regulations.• Lack of personal contract• Language of barrier.• Unfeasible to maintain ownbranches at eachdestination.Rtist@Tourism, Pondicherry University 18
  19. 19. Services Offered by TO• Airport and hotel transfer• Arrangements for traditional reception at the arrival points.• Experienced and professional tour guides, escorts, interpreter and tour managers.• Excellent and 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. Business/trade delegations.• Arrangements of luggage transfer in the airport and railway stations.• Arrangements of guided sightseeing tours.• Options and selection for worldwide destination• Exhaustive 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 intothe restricted areas.• Foreign Exchange & Travel Insurance. Trade Fair/Exhibition visits.• Implant Operations - your in-house travel consultant equipped with CRS system and satellite ticket printer.• Incentive travel in India and Worldwide.Rtist@Tourism, Pondicherry University 19
  20. 20. Special interest services• Ayurveda and Health• Archaeology and historical sites• Adventure and ecotourism sites• Buddhism and Jainism ancient religious sites.• Special cuisines at each place.• Desert and jungle safari tour.• Arrangement of comfortable entry and visit of fairs and festivals venues.• Arrangement of short trips for shopping and exhibitions grounds.• Making the provision of equipments for sports and games (Golf, wintersports and water sports.)• Provision for scholarly interpretation of objects with the help of expertsat the museums• Arrangements for host community interaction.• Organizing special cultural programmes in the palaces ( Rajasthan andGwalior)• Adequate provisions for maintaining the first aid facility in the tour.• Special amenities for the tourists in the train journey. ( Palace onWheels, Royal Orient, Fairy Queen and Deccan Odyssey)Rtist@Tourism, Pondicherry University 20
  21. 21. Distribution networks of tour operation businessRtist@Tourism, Pondicherry UniversityActual Tourist Potential TouristTour OperatorApproachesPrincipal supplierTransportoperatorsAirlines andCharter flightcompaniesCruiseLineCompaniesRailways &Car RentalCompaniesHotelsEventManagersProcessing of package toursTravel agentsEnd users (Cents)Direct SellingInternet21
  22. 22. Linkage of profit sharing between tour operators andprincipal service providersRtist@Tourism, Pondicherry UniversityBookings, Cancellation, Revenues, PerformancesFlight Times, tariffs, Availability, Commissions, ConfirmationsLocation, Room Availability, Rack Rates, Commission levelsAirlinesTourOperatorsTravelAgentsHotelsInformationRevenues&InformationRevenues&InformationInformationInformationRevenueInformation & Commission22
  23. 23. Rtist@Tourism, Pondicherry UniversitySTRATEGIC ALLIANCE WITH THE SERVICE PROVIDERSSupport serviceprivate serviceProducers/Principal SuppliersSupport ServicesPubic SectorGuidingServicesTravel InsuranceTravel FinanceTravel pressMarketingSupportGuides andTine stablesPublications,training, etc.Carriers Accommodation AttractionsManmadeAir TransportSea TransportRail TransportRoad TransportHotels, MotelsGuest HousesVillasApartmentsHoliday HomesHoliday villagesHoliday campsAncientmonumentsAncientcentreThemeParksCateringNationalTourismOfficeRegionalTourismOfficeEducation &TrainingVisa &PassportserviceTour Operators and BrokersTravel AgentTouristFigure-223
  24. 24. Rtist@Tourism, Pondicherry UniversityProfessionalNetworks ofTravel AgencySurfaceTransportCruise LineHotelsmotelsResortsOthersAirlineIndustryTourismAssociationsCultural andEntertainmentorganizationsDept ofExternalAffairsNational &StateTourism Depts.EducationalInstitutionsForeignPrincipalAgentsBankingInstitutionsInsuranceCompaniesTourWholesalers24
  25. 25. Tourism companies• IRCTC• Thomas Cook• Cox & Kings• SOTC• Orbitz• SITARtist@Tourism, Pondicherry University 25
  26. 26. Indian Railway Catering and Tourism Corporation• IRCTC is a subsidiary of the Indian Railways thathandles the catering, tourism and online ticketingoperations of the railways in 2002Services• Catering– Catering Policy 2010 (by Mamata Mukharjee)Catering services provided by IRCTC were handover to INDIAN Railways. Now IRCTC is in chargeof catering services on Few trains such as AllDuranto Exp, Frakkha Exp, Maitree Express( Trainbetween INDIA and BANGLADESH),Kandhari Expand some Rajdhani Exp rest all of train operatedby Zonal Railways railway stations across India.– However IRCTC still operate Janaahar at railwaystation.– IRCTC also started NRC project(NON RAILWAYCATERING) under which cafeteria were operatedin many Indian Ministries and Institutes.• Online ticketing– known for changing the face of railway ticketing– pioneered Internet-based rail ticket bookingthrough its website, as well as from the mobilephones via GPRS or SMS– cancellations or modifications can also be doneonline– In addition to E-tickets, IRCTC also offers I-ticketsthat are basically like regular tickets except thatthey are booked online and delivered by post.– The Tickets PNR Status is also made availablehere recently.– Mumbais suburban railway can also book seasontickets through the IRCTC website.– IRCTC has also recently launched a loyaltyprogram called "Shubh Yatra" for frequenttravellers, discounts on all tickets booked roundthe year by paying an upfront annual fee.– launched flights and hotels booking facilitieswhich added to their line of online reservationservices• Tourism– organizes budget and deluxe package tours fordomestic and foreign tourists, Bharat Darshan– Luxury tourism packages are also available, thatinvolve special luxury trains such as:• Palace on Wheels• Royal Orient Express• Golden Chariot• Deccan Odyssey• Royal Rajasthan on Wheels• Buddhist Circuit Train• and IRCTC is a partner in the Maharajas’Express operation.• log on to and book RailTour Package, Holiday Package, Hotels, Cabs,Tourist Trains online.• adventure tourism packages that include watersports, adventure and wildlife treks, etc. Aprovision for customising tours as per specificrequirements is also an added attraction.Rtist@Tourism, Pondicherry University 26
  27. 27. Awards and achievements• IRCTC website had become the largest and the fastest growing e-commerce website in the Asia-Pacific region, with about six lakhregistered users in 2003– Awarded the National Tourism Award of Excellence by Ministry ofTourism, Govt. of India.– Awarded the National Award for E-Governance, 2007-08 jointly byDepartment of IT, Govt. of India and Govt. of Haryana.– Awarded the Genius of the Web Award 2007 for being the "Best E-Governance PSU Site" by CNBC.– IRCTC Tourism Unit of West Zone declared winner for the category Best ValueLeisure Product in Travel and Tourism Fair of India (TTF & OTM 2008) heldin Mumbai from 9 to 11 February 2008.– Won National award for E-Governance for being "Best Citizen CentricApplication" for the year 2007-08.– IRCTC Tourism Unit declared winner for the category Most InnovativeProduct in Travel and Tourism Fair of India (TTF & OTM 2007) held in Mumbaifrom 10 to 12 February 2007.– Won CSI-Nihilent E-Governance award for "Best E-Governance Project" in2007.– Won the ICICI Bank Retail Excellence Award in 2005.– Won Path Breaker Award from Dataquest in 2003 and 2004.– Awarded the Mini Ratna Category-1 by Ministry of Railways, Govt. of IndiaRtist@Tourism, Pondicherry University 27
  28. 28. Travel and Tourism Fair(TTFOTM)TTF• is India’s leading exhibition for thetravel & tourism industry. Since1989, it provides an annualopportunity for organisations fromIndia and abroad to showcase theirproducts and services to a largecross-section of the travel tradeindustry and consumers acrossmajor markets in India.• With more than 1500 Exhibitorsfrom 61 countries and 35 IndianStates / UTs, an ever increasingnumber of foreign countryrepresentations, and a committedvisitorship of more than 186,000visitors, TTF together with OTM isthe largest network of Travel Showsin India.• OTM is India’s leading travel showfocused on Outbound travel. Itprovides an annual opportunity fororganizations from around theworld to showcase their products toa large cross-section of travel tradeand consumers in all major targetmarkets in India, just before thepeak outbound season.2012– MumbaiFebruary 17, 18, 19Bombay Exhibition Centre, Goregaon(East)– New DelhiFebruary 24, 25, 26Pragati Maidan.• Concurrent with TTF• Endorsed by PATA• Organised by FAIR FEST MEDIA ltdRtist@Tourism, Pondicherry University 28
  29. 29. ThomasCook• Thomas Cook (22 November 1808 – 18 July1892) of Melbourne, Derbyshire, England• with Midland Counties Railway, hearranged to take a group of540 temperance campaignersfrom Leicester Campbell Street station to arally in Loughborough• During the following three summers heplanned and conducted outings fortemperance societies and Sunday-schoolchildren.• In 1844 the Midland Counties RailwayCompany agreed to make a permanentarrangement with him provided he foundthe passengers.• On 4 August 1845 he arrangedaccommodation for a party to travel fromLeicester to Liverpool• In 1846, he took 350 people from Leicesteron a tour of Scotland, however his lack ofcommercial ability led him to bankruptcy• He persisted and had success when heclaimed that he arranged for over 165,000people to attend the GreatExhibition in London• Cook established inclusive independenttravel, whereby the traveller wentindependently but his agency chargedfor travel, food and accommodation fora fixed period over any chosen route.• Such was his success that the Scottishrailway companies withdrew theirsupport between 1862 and 1863 to trythe excursion business for themselves.• In 1865, the agency organised tours ofthe United States, picking uppassengers from several departurepoints.• A round the world tour started in 1872• In 1874, Thomas Cook introducedcircular notes, a product that laterbecame better known by AmericanExpresss brand, travellers cheques• By 1888, the company had establishedoffices around the worldRtist@Tourism, Pondicherry University 29
  30. 30. Cox & Kings• longest established travel company in the world, itshistory stretching back to 1758 when Richard Cox wasappointed as regimental agent to the Foot Guards.• Cox & Kings is now an independent tour company withoffices in the United Kingdom, India, the UnitedStates and Japan. Its global headquarters are in London• Cox was born in Yorkshire in 1718• 1740s, went on to become the Colonel of the First FootGuards• The company set up five branches in India between1905 and 1911Rtist@Tourism, Pondicherry University 30
  31. 31. Airline ticketingRtist@Tourism, Pondicherry University 31
  32. 32. Flying time– The difference betweenthe take off time and thelanding timeMPM & TPM– MPM Establish themaximum permittedmileage between the fareconstruction points of thefare component followingthe same global directionas that used in the NUCabove.– TPM Add up the ticketedpoint mileage of eachsector and compare thetotal TPM to the MPMRounding up– LCF Round the resultinglocal currency fare andtake note of requirednumber of decimal unitsfor the currency.I TINERARY PREPARATION– Available flights– Flight timings– Passenger timings– To and fro– Booking a ticketaccordinglyRtist@Tourism, Pondicherry University 32
  33. 33. Travel Information Manual (TIM)• TIM (Travel Information Manual) is the worlds leading source for informationon air travel requirements. Millions of passengers find their way to finaldestinations time after time with the TIM. The never-ending movement ofpeople and commodities continues to run smoothly when players areinformed of TIMs up-to-date country entry requirements worldwide.• Key Benefits• The TIM is a must for all who are involved in the travel industry. This uniquemanual lists rules and regulations for more than 216 countries on subjectssuch as:• Passports• Visas• Health information• Airport tax• Customs and currencies• Latest news• Designed for• The information found in TIM is consulted by thousands of users around theworld every day, including airline offices, travel agents, corporateaccounts, tour operators, GDS and government agencies.Rtist@Tourism, Pondicherry University 33
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  35. 35. Types of Fare• Fare– The amount charged by acarrier for the carriage of apassenger and his allowablefree baggage as beingapplicable to the class ofservice to be furnished• Normal fare– Unrestricted normal fare– Restricted normal fare• Unrestricted normal fare– Or Primary normal fares– Normal fares without anyrestrictions– Permit unlimited stopoversand transfers– F or C or Y class fares• Restricted normal fare– Or Secondary normal fares– Have stopover and transferconditions– Lower than primary fares– F2,P2 etc (for first classrestricted fare)– J2, C3 etc (for business classrestricted fare)– Y2, S2, Y11 etc (for economyclass restricted fare)Rtist@Tourism, Pondicherry University 35
  36. 36. Special fares– Special fares are low promotional fares thathave more restrictions than the normalfares– Aim partially promotional and partiallysocial– Restrictions in respect of• Length of stay• Advance purchase requirements• Reservations, payment and ticketing limits• Day/time of travel• Eligibility restrictions• Refundability and changeability• Types of special fares– Public Special Fares– Inclusive Tour Fares– Public Group Fares– Reduced fares for specific categories ofpersons– Miscellaneous Fares• Public Special Fares– Late Booking Fare• These are fares that can only be purchased atthe last moment or with in 24 hrs or so ofdeparture• Stand by, late purchase, or instant purchasefares• Can only travel if seats are empty at the timeof departure• These tend to be the cheapest fare– APEX Fare• Advance Purchase Excursion fare• Restrictions on timing of purchase• Require advance reservation with advance payment ,a minimum no. of days before departure• Does not allow open dated segments, all flight couponmust have confirmed reservation• Penalties for changes in booking and ticketcancellation also apply– PEX Fare• Purchase Excursion Fare• Does not have a requirement to purchase theticket a minimum no. of days beforedeparture• Payment of ticket up on obtaining confirmedseats• Does not allow open dated segments• Penalties for changes in booking and ticketcancellation also apply– Excursion Fare• Have duration limits as expressed byminimum and maximum stay dates• Attracts mostly vacation travelers and tourists• Usually allow open dated segments• Rebooking or cancellation penalty fees do notapplyRtist@Tourism, Pondicherry University 36
  37. 37. • Inclusive Tour Fare– Prearranged combination of airtransportation and surface arrangementsother than just public transportation– Arranged by Travel Agents or TourOperators– GIT Fares– IIT Fares• Public Group Fares– Designed for group travel without landarrangements– Available when passengers travel togetherand have compiles with minimum groupsize– Common Interest Group fare– Incentive Group fare– Affinity Group fare– Non- Affinity Group Fare• Common Interest Group fare– Passengers who have a bonafide commoninterest by traveling together by the samerouting to the same destination– Common interest must be other thanqualifying for the discount• Incentive Group fare– For employees and/or dealers and/oragents of the same commercialorganizations traveling under anestablished Incentive Travel Program• Affinity Group fare– This fare is available to members of thesame organization /company/associationhaving some affinity• Non- Affinity Group Fare– Members of a travel group who does notshare a common affinity.– The pax are just assembled in order toavail the group discount• Reduced fares for specific categories– Diplomat / Govt. fare– Family fare– Military fare– Pilgrim fare– Senior Citizen fare– Students fare– Youth fare• Miscellaneous Fares– Other fares that does not fall under theabove categories– Special event tour fares, triangular faresetc.Rtist@Tourism, Pondicherry University 37
  38. 38. Rtist@Tourism, Pondicherry University 38Fare calculation
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  40. 40. Rtist@Tourism, Pondicherry University 40
  41. 41. NOTES/EXCEPTIONS:• 1. For tickets issued for travel commencing in Algeria/Tunisia, check identity papers ofthe passenger to see whether or not, s/he is a resident. Residents of these countriesare quoted a lower fare level than non-residents. (See latest PAT GeneralRules book.)• 2. Additional HIP checks apply for journeys originating from India, Malawi, WesternAfrica, Yemen and for journeys whollybetween Kilimanjaro and Nairobi.• 3. BHC is not applicable for:– a) Journeys wholly within TC1– b) Journeys wholly between Argentina, Brazil, Chile, Paraguay, Uruguay and TC2– c) Pricing units wholly within Europe• 4. OSC is not applicable to/from/via USA/US Territories and for journeysoriginating/terminating in Canada• 5. DMC is only applicable to One Ways to/from/via Japan when the traffic document isnot issued in the country from which the journey commences (Scandinavia isconsidered one country) For electronic tickets, the traffic document is deemed to beissued in the country in which the electronic record is established.• 6. DMC is not applicable for traffic documents issued in:– a) TC1 for journeys commencing in TC1– b) Canada, USA/US Territories for journeys to Canada, USA/US Territories– c) Benin, Burkina Faso, Cameroon, Central African Republic, Chad, Congo (Brazzaville), Coted’Ivoire, Equatorial Guinea, Gabon, Guinea-Bassau, Mali, Niger, Senegal or Togo and the journeyoriginates in these countries.Rtist@Tourism, Pondicherry University 41
  42. 42. • Payment modes– Direct cash– Card swipe– Online payment– cheques• Issuance of ticket– Manual ticket– Automated ticket– E- ticket– Single coupon ticket– Double Coupon ticket– Four coupon ticket– Airline ticket– Neutral ticketRtist@Tourism, Pondicherry University 42
  43. 43. Cargo Handling• Baggage allowance– On the commercialtransportation, mostlywith airlines,the baggage allowance isthe amount of checked or carry-on luggage the airline will allow perpassenger. that is allowed free ofcharge– In 2007 with most airlines nowcharging for both the first and secondbag. However, within Europe, andoften on flights between the UnitedStates and Europe, the limit is as lowas 40 pounds (18 kg) total perpassenger, and many airlines do notallow passengers to exceed thisamount, even with payment of a fee.– Many passengers complain about thislimit, because after the typical 15-20pounds (7–8 kg) ofthe suitcase itself, little room remains• Piece Concept– passengers are permitted to check two bagswith a per-bag weight of up to 50 pounds (23kilograms) for Economy Class, and up to 70pounds (32 kilograms) for Business or FirstClass.– Certain airlines operating under the PieceConcept may add additional checked baggageallowance for their Elite Level fliers.– Weight restrictions are per bag, unlike theWeight Concept.• Weight Concept– each passenger is permitted to check a totalbag weight in however many bags they have.Typically, Economy Class is permitted to checkin up to 44 pounds (20 kilograms), BusinessClass is permitted to check in 66 pounds (30kilograms), and First Class is permitted 88pounds (40 kilograms), Unlike the PieceConcept– allows passengers to combine their bagweight into fewer bags which wouldotherwise be too heavy to travel under thePiece Concept• Most airlines have changed the policy andallow as of November 2009 only one bagto be checked in for free. The second bagwill cost between $50-55Rtist@Tourism, Pondicherry University 43
  44. 44. Accountability of baggage loss– 250,000 Francs or 16,600Special Drawing Rights(SDR) for personal injury;– 17 SDR per kilogram forchecked luggage andcargo,– 5,000 Francs or 332 SDRfor the hand luggage of atraveller.• International financinginstrument created in1970 by the InternationalMonetary Fund (IMF) tocoincide with thedisfavour of the US dollaras the principal currencyof the world trade.• At present, one SDR is thesum of 0.6320 US Dollars,0.4100 euro, 18.4Japanese yen and 0.0903pound sterlingRtist@Tourism, Pondicherry University 44
  45. 45. • Dangerous Goods– Class 1: Explosives– Class 2: Gases– Class 3: Flammable Liquids– Class 4: Flammable Solids– Class 5: Oxidizing Substances& Organic Peroxides– Class 6: Poisonous (toxic) &infectious substances– Class 7 : RadioactiveMaterials– Class 8: Corrosives– Class 9: Miscellaneousdangerous substances &articles• Cargo rates and valuationchargesRtist@Tourism, Pondicherry University 45
  46. 46. • Automation– Information concerning– Schedules– Fares– Ticket reservation– Invoicing– Electronic check• Airport procedures– Check in– Check out– Airport services– In flight servicesRtist@Tourism, Pondicherry University 46
  47. 47. Requirements in setting up Travel Agency• SEC Registration:- Incorporation Papers/By-Laws- Capitalization, Subscribed shares, Paid-Up Shares(minimum of P .5M)- List of Stockholders & Citizenship, ther addressesmrespective Community Tax Certificates and TIN- Latest General Information Sheet- Board Resolution of Authorized Signatories- Corporate Address- Appointed Corporate Treasurer-in-Trust- Bank Certificate for Corporates paid up capitalDTI Certificate of Business Registration- Certified photocopy of the Articles of Incorporation- Application FormLocal Government License and Mayors Permit- Articles of Incorporation- DTI Certificate- Barangau Clearance- Corporate Community Tax Certificate- Other Local Govt Clearances ( employees healthcertificate, ID, Barangay, Police, NBI clearances, 4 1x1photos of all company employees, etc.)- General Liability InsuranceBIR- Corpopate Registration- articles of inc- DTI certificate- Mayors Permit & Business Licenses- Corporate Logo- Contract of Lease- Incorporators/Employess Registration and TIN- 1 pc passport size colored picture in white background- Civil registry documents; i.e. birth, marriage certificates• SSS/Pag-Ibig/Philhealth- Articles of Inc- DTI Cert- Mayors Permit and BUsiness Licenses- BIR Registration- Employees Alpha List, SSS number, Pag-Ibig Number, Philhealth NumberDOT AccreditationLegal1. Mayors Permit/Municipal License2. Business Name Certificate for Single Proprietorship3. Articles of Incorporation/ Partnership & By-Laws forCorporation/Partnership and Business Name Certificate, if applicable.Financial1. Latest Income Tax Return and Audited Financial StatementsPhysical1. Contract of Lease of office space/Certificate of TitleOther DOT Documentary Requirements1. Application Form2. List of Officials and Employees3. Valid visa and labor permit for foreign nationals4. Board Resolution/letter form owner/partners authorizing its bonafideemployee to sign/file/transact business with DOTDOT Requires:- a P .5M cash revolving fund for operation- Travel and Tours Seminar of Manager/Owner- at least 1 Tourism Graduate employeeOthers:*You will need at least P70,000.00 to process and file theserequirements, aside from the required P .5M paid up capital.**IATA/DITS Registration/SeminarRtist@Tourism, Pondicherry University 47
  48. 48. • Incentives to TravelAgents– Profit sales leads toincentives– Incentive trips– Incentive family trips– Incentive lunch coupons– Reference at importantdestinations– VIP passes• Constraints & limitationsof Travel Agents– High competition level– Element of Uncertainty– Stringent regulatory laws– Language constraint– Effect of currency exchangerate fluctuations– Relations betweencountries– Different interests oftravelers– Fluctuations in demandRtist@Tourism, Pondicherry University 48
  49. 49. Thank You©Ramakrishna KongallaRtist@Tourism, Pondicherry University 49